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Madhya Pradesh High Court · body

2010 DIGILAW 1201 (MP)

National Fertilizers Limited v. Rajvendra Singh Chauhan

2010-12-01

A.M.NAIK, S.N.AGGARWAL

body2010
ORDER A.M. Naik, J. 1. This petition under Article 227 of the Constitution of India has been preferred against the order dated 30th October 2006 passed by the M.P. Industrial Court Bench at Gwalior in C.A. No. 52/2004. 2. Respondent No.1, who was working on the post of Technician Grade I in the services of the petitioners, submitted an application under section 31,61 and 62 of the Madhya Pradesh Industrial Relations Act, 1960 (for brevity "MPIR Act) mainly with allegations that respondent No.2 and 3 despite being junior to him were promoted as Senior Technician. He prayed that the action on the part of the petitioners in promoting respondents No.2 and 3 on the post of Senior Technician and further inaction on their part in not promoting respondent No. 1 on the said post may be declared illegal. Consequential prayer has also been made for promotion as well as higher pay grade from the date when respondents No.2 and 3 were promoted. 3. Aforesaid was opposed mainly on ground that the application under section 31 of the MPIR Act, 1960 is not maintainable; secondly, respondent No. 1 was not found suitable for promotion by the Departmental Promotion Committee. 4. Lahour Court No.3, Gwalior vide its order dt. 20th October, 2000, allowed the application and directed the petitioner to promote respondent No. 1 from the date of prior to the promotion of respondents No.2 and 3 and further to pay the difference of pay. 5. Petitioner preferred appeal No. 28/MPIR/2001, which was partly allowed vide order dt. 16th May, 2002. Matter was remitted back to the Labour Court with the direction to raise additional issue and to decide it thereafter in accordance withJaw. Thereafter, the Labour Court No.3, Gwalior vide order dt. 23.2.2004 again allowed the application of respondent No.1 and directed for his promotion prior to the promotion of respondent No.2 and 3. Additionally, it was directed that respondent No. 1 may be paid the difference of salary from the date of promotion. 6. Aggrieved by the aforesaid, petitioner submitted CA No.52/2004, which having been dismissed, the present Writ Petition is preferred under Article 227 of Constitution of India. 7. Shri Prashant Sharma, learned counsel for the petitioners submitted that the application under section 31 (3) of the MPIR Act submitted by respondent No.1 is not maintainable and the same ought to have been dismissed. 8. 7. Shri Prashant Sharma, learned counsel for the petitioners submitted that the application under section 31 (3) of the MPIR Act submitted by respondent No.1 is not maintainable and the same ought to have been dismissed. 8. Section 31 of the MPIR Act reads as under: "31. Notice of change -- (1) An employer intending to effect any change in respect of an industrial matter specified in Scheduled I shall give notice of such intention in the prescribed form and manner to there representative of employees and to such other persons as may be prescribed. (2) A representative of employees desiring a change in respect of an industrial matter, which is neither covered by standing orders nor is specified in Scheduled II, shall give notice thereof in the prescribed manner to the employers concerned and to such other persons as may be prescribed. (3) A representative of employees or an employee desiring a change in respect of an industrial matter specified in Scheduled II or any other matter arising out of such change may make an application to LahourCoul1 in such manner as may he prescribed." A perusal of the aforesaid goes to show that sub-section (1) and (2) obliges an employer and representative of employees respectively to give notice in case if they intend or desire to effect any change in respect of an industrial matter in a situation enumerated therein, whereas sub-section (3) enables an employee also desiring a change in respect of an industrial matter specified in Schedule II or any other matter arising out of such change to make an application to Labour Court in such manner as may he prescribed. For the purpose of sub section (3), Schedule IT becomes significant, which is reproduced below : SCHEDULE II (Section 31) 1. The propriety or legality of an order passed or action taken by an employer acting or purporting to act under the standing orders or any rules or regulations governing the conditions of service of the employees. 2. Adequacy and equality of materials and equipment supplied to the employees. 3. Health, Safety and welfare of employees (including water, dining sheds rest sheds, latrines, urinals, creches, restaurants and such other amenities). 4. Matters relting to trade union organisation, membership and levies. 5. Construction and interpretation of awards, agreements and settlements. 6. 2. Adequacy and equality of materials and equipment supplied to the employees. 3. Health, Safety and welfare of employees (including water, dining sheds rest sheds, latrines, urinals, creches, restaurants and such other amenities). 4. Matters relting to trade union organisation, membership and levies. 5. Construction and interpretation of awards, agreements and settlements. 6. Employment including-- (i) reinstatement and recruitment; (ii) unemployment of persons previously employed in the industry concerned. 7. Payment of compensation for closure, lay-off and retrenchment. 8. Assignment of work and transfer of employees within the undertaking. 9. Shri Prashant Sharma, learned counsel appearing for the petitioner contended that respondent No. 1 in his application submitted before the Labour Court did not seek the relief of quashment of the order of promotion of respondents No.2 and 3. In the absence of such prayer, it has been submitted that the application under section 31 of MPIR Act, was and is liable to he rejected. It has been further contended by the learned counsel that the question of promotion is not covered by any of the items contained in Schedule II, therefore also the application was and is liable to be rejected. 10. After considering the submissions in the light of section 31 (3) of MPIR Act and Scheduled II as well, we are of the opinion that the contentions raised on behalf of the petitioner are not liable to he accepted. Sub Section 3 of section 31 (supra) clearly enables an employee desiring a change in respect of an industrial matter specified in Scheduled II or any other matter arising out of such change to make an application to Labour Court in such manner as may be prescribed. Item No. 1 of schedule (supra) read with sub section (3) of section 31 of MPIR Act, enables an employee to make application not only to challenge the propriety or legality of an order but also enables him to dispute the proprietary or legality of an action taken by his employer acting or purporting to act under the standing orders or any rules or regulations governing the conditions of service of the employees. Case of respondent No. 1 is that he was entitled to the next higher pay scale after completion of live years of service. It was completed in the month of February 1993, however, the higher pay scale was not given to has. Case of respondent No. 1 is that he was entitled to the next higher pay scale after completion of live years of service. It was completed in the month of February 1993, however, the higher pay scale was not given to has. According to him, he was victimized due to his participation in the Union activities. Though the allegations levelled against the employer (i.e. the petitioner) were denied respondents No.2 and 3 despite being juniors to respondent No. 1 were given higher pay scale. Labour Court after recording the evidence found respondent No.1 to be entitled to higher pay scale from the date prior to promotion of respondent No.2 and 3. This order was set aside in an appeal on 10.5.2002 and the case was remanded to the Labour Court for deciding it afresh after framing fresh issues. The Labour Court again vide its order dt. 23.2.2004 held that respondent No. I was entitled to promotion prior to respondent No.2 and 3. It is the action of the petitioner of promoting respondent No.2 and 3 prior to respondent No. 1, which was challenged before the Labour Court. Similarly, inaction on its part in not promoting respondent No. 1 is also under challenge. Both the challenges are permissible at the instance of an employee under item No. 1 of Scheduled II. This being so, contentions of the petitioner in this respect are hereby repelled and the application submitted by respondent No. 1 before the Labour Court is found maintainable. 11. Further contention of petitioner's learned counsel is that there ought not to have been a direction for promotion. Instead, a direction for consideration for promotion ought to have been issued. Countering the aforesaid, Shri Ravi Jain, learned counsel for respondent No. 1 placing reliance on 1982 SCC (L & S) 42 (Workmen v. M/s. Williamson Manger & Co. Ltd. & another) submitted that direction for promotion is justified in the peculiar facts and circumstances of the present case. 12. In the aforesaid decision, Hon'ble apex Court has observed:- 15. Countering the aforesaid, Shri Ravi Jain, learned counsel for respondent No. 1 placing reliance on 1982 SCC (L & S) 42 (Workmen v. M/s. Williamson Manger & Co. Ltd. & another) submitted that direction for promotion is justified in the peculiar facts and circumstances of the present case. 12. In the aforesaid decision, Hon'ble apex Court has observed:- 15. Even if promotion may not be a condition of service in a private company and promotion may be the function of the management, it may be recognised that there may be occasions where the Tribunal may have to of the promotions made by the management where it is felt that persons superseded have been so superseded on account of legal male fide or Victimisation. Although in spite of the allegations of mala fide, the Union has not been able to prove factual mala fide in this case malice in law and effectual victimisation are obvious due to the fact that unjustified promotions of some junior persons were made superseding, without any reason or necessity, the cases of a large number of senior persons." It has also been observed in para 12 : '"12. Mr. Pai, learned counsel appearing for the management, made two submissions before us. Firstly he submitted that unlike in public sector undertakings, promotion is not a condition of service in a private company. We arc unable to accept the submission of Mr. Pai in toto. If there is no scope of any promotion or up-gradation or increase in salary in a private undertaking. the submission of the learned counsel may be justified but if there are grades and scopes of up-gradation/promotion and there are different scales of pay for different grades in a private undertaking, and, in fact, promotion is given or up-gradation is made, there should be no arbitrary or unjust and un-reasonable up-gradation of promotion of persons superseding the claims of persons who may be equally or even more suitable. The second submission of Mr Pai is that although there were no norms, the promotions of the persons in question were not arbitrary and that the findings of the Tribunal in this regard were incorrect. He led us through the material evidence of the witnesses examined. The second submission of Mr Pai is that although there were no norms, the promotions of the persons in question were not arbitrary and that the findings of the Tribunal in this regard were incorrect. He led us through the material evidence of the witnesses examined. We are unable to agree with learned counsel and do not find any reason to differ from the findings of the learned Tribunal that the promotions of the 15 persons were arbitrary and unjustified. Mr. Pai also submitted that unless victimisation was proved by the Union, the management's action should not be disturbed. The word 'victmisation' has not been defined in the statute. The term was considered by this Court in the case of Bharat Bank Ltd. v. Employees. This Court observed, "it (victmisation) is an ordinary English word which means that a certain person has become a victim, in other words, that he has been unjustly dealt with". A submission was made on behalf of the management in that case that 'victimisation' had acquired a special meaning in industrial disputes and connoted a person who became the victim of the employer's wrath by reason of his trade union activities and that the word could not relate to a person who was merely unjustly dismissed. This submission, however, was not considered by the Court. When, however the word 'victimisation' can be interpreted in two different ways, the interpretation which is in favour of the labour should be accepted as they are the poorer section of the people compared to the management." 13. Hon'ble apex Court in the case of The Distt. Registrar, Palghat and others v. M.B. Koyakutty and others (1979 SCC (L & S) 126 has observed: "30. The last point for consideration is, whether it was proper for the High Court to issue a positive direction requiring the appellant to promote the respondent to the Upper Division and thereafter to determine his rank in the cadre of Upper Division Clerks. Ordinarily the Court does not issue a direction in such positive terms; but the peculiar feature of this case is that it has been disputed that Koyakutty respondent satisfied the two-fold criterion for promotion laid down in the statutory Rule 28 (b) (ii). Indeed the District Registrar, Palghat, who was impleaded as respondent 3 in the writ petition. Ordinarily the Court does not issue a direction in such positive terms; but the peculiar feature of this case is that it has been disputed that Koyakutty respondent satisfied the two-fold criterion for promotion laid down in the statutory Rule 28 (b) (ii). Indeed the District Registrar, Palghat, who was impleaded as respondent 3 in the writ petition. expressly admitted in paragraph 8 of his counter-affidavit filed before the High Court, "that the seniority of service is the basis of promotion from the ranks of Lower Division Clerks to the ranks of Upper Division Clerks provided they are fully qualified by passing the departmental test for the purpose". It was never the case of the Registrar that Koyakutty was not otherwise fit for promotion. Indeed, even in the grounds of appeal to this Court, incorporated in the Special Leave Petition, it is not alleged that Koyakutti did not satisfy the criterion of seniority-cum-fitness prescribed by Rule 28 (b) (ii). The position taken by the appellant, throughout was that this rule should be deemed to have been "supplemented" by the impugned government notification. It is not correct that the impugned notification merely "supplements" or fills up a gap in the statutory rules. It tends to supersede or superimpose by an Executive flat on the statutory rules something inconsistent with the same. Since the existence of both the criteria viz., seniority and fitness for promotion to the Upper Division prescribed, by the statutory Rule 28 (b) (ii), in the case of Koyakutty was not disputed, the High Court was justified in issuing the direction it did." 14. On perusal, it is found that the learned Industrial Court in para 8 has clearly observed that the petitioners have not examined any witness to prove unsuitability of the applicant for promotion. Despite remand, no evidence was produced by them to justify super session of respondent No.1. It is further found on perusal that the lower Court framed additional issue on 28.10.2002 and granted opportunity to the petitioners to adduce evidence. Despite this, it was expressed on behalf of the petitioners on 14.1.2003 that they did not wish to lead evidence. Thus, in the present case, the petitioner have failed to adduce relevant evidence to establish unsuitability of respondent No.1 despite a plea to this effect having been raised. Despite this, it was expressed on behalf of the petitioners on 14.1.2003 that they did not wish to lead evidence. Thus, in the present case, the petitioner have failed to adduce relevant evidence to establish unsuitability of respondent No.1 despite a plea to this effect having been raised. Thus, we do not find any material on record to find any infirmity in the impugned order. 15. On perusal of the entire material on record in the light of law governing the situation. we hold that the victimization of respondent No.1 was made by promoting respondents No.2 and 3 prior to respondent No.1 and in order to impart justice, direction for promotion could have been legally given, which alone would sub serve the purpose of law. 16. Resultantly, there being no force in the writ petition, the same is hereby dismissed summarily, however, with no order as to costs.