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Supreme Court of India

ASSOCIATION OF CHEMICAL WORKERSversusS.D. RANE AND ORS.

Citation
1996 INSC 299
Decided
22 February 1996
Disposal
Dismissed

Holding

The appeal is dismissed; the investigating officer’s procedure was not found unlawful and the embargo under Section 14 has expired, allowing the appellant to file a fresh application.

Summary

The Association of Chemical Workers, a rival union at Chemicals & Fibers of India Ltd., challenged the recognition of the respondent union by the Industrial Court, alleging that the investigating officer had illegally used spot verification and alternate numbers to count members. The High Court examined whether the officer’s procedure complied with the Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practice Act, 1971, and found that the officer acted under the direction of the Industrial Court and no legal error was evident. The Court also considered Section 14 of the Act, which bars a fresh application for recognition for two years and any application within one year of the court’s order. Since the Industrial Court’s order was rendered in 1983, the statutory embargo had long expired. Consequently, the appeal was dismissed, and the appellant was informed that it may now seek recognition following the statutory procedure.

Issues considered

  • Whether the investigating officer’s method of spot verification and use of alternate numbers complied with the procedure prescribed under the Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practice Act, 1971.
  • Whether the order of the Industrial Court recognizing the respondent union can be set aside on the ground of procedural irregularity.
  • Whether Section 14 of the Act continues to prohibit a fresh application for trade union recognition by the appellant.

Subjects

trade union recognitioninvestigating officerspot verificationSection 14embargoMaharashtra Trade Union Actindustrial courtprocedural fairnessfresh application

Judgment

                    ASSOCIATION OF CHEMICAL WORKERS                                  A
                                          v.
;
                               S.D. RANE AND ORS.

                                FEBRUARY 22, 1996

                  [K. RAMASWAMY AND G.B. PATTANAIK, JJ.)                             B

         Maharashtra Recognition of Trade Union and Prevention of Unfair
    Labour Practice Act, 1971:

           Section 14--Recognition of trade union-Procedure adopted by the           C
    Investigating Officer-Cliallenged by a group of workers-Report of Investigat-
    ing Officer accepted by Industrial Court and High Court did not interfere with
    the same-On appeal held, under S.14 fresh application is prohibited for two
    years-Making application within one year from the date of order passed by
    the Indust1ial Tribunal also prohibited-Since the order of the Tribunal was
    passed in 1983 and sufficient time has elapsed, the embargo under S. 14 no       D
    longer available-Appellant Union if still seeks recognition it would be open
    to it to adopt such procedure as is available under the law.

          Automobile Products of India Employees' Union v. Association of
    Engineering Workers Bombay, [1990] 2 SCC 444 and Association of En-              E
    gineering Workers v. Dockyard Labour Union & Ors., [1995] Supp. 4 SCC
    544, relied ~n.

             CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1226 of
    '1996.
                                                                                     F
          From the Judgment and Order dated 7.9.83 of the Bombay High
     Court in W.P. No. 3038 of 1983.

          Narain Shethey, Manoj Wad, Ms. J.S. Wad and Ms. Usha Reddy for
     the Appellants.
                                                                                     G
             R.K. Habbu, P.B. Agrawala, Satish Agrawala for the Respondent No.
     3.

             The following Order of the Court was delivered :

             This appeal by special leavl! arises from the order of the Division     H
                                          979
    980                   SUPREME COURT REPORTS                  [1996] 2 S.C.R.

A   Bench of the Bombay High Court made on September 7, 1983 in W.P. No.
    3038 of 1983. The appellant is a rival trade union under M/s. Chemicals &
    Fibers of India Ltd. [formerly ICI India Ltd.]. The Industrial Court in the
    order had pointed out that the total employees as on June 15, 1981 were
    811 and the respondent-union had a strength of 448 as against the appel-
    lant-rival union having strength of 241. Thus it was held to be a recognised
B   union. The appellant had challenged the procedure adopted by the inves-
    tigating officer under Maharashtra Recognition of Trade Union and
    Prevention of Unfair Labour Practice Act, 1971 (1 of 1971) (for short,
    'MRTUPULP Act').

C          Shri Kailash Vasdev, learned counsel for the appellant, contended
    that the Investigating Officer was not justified in law in conducting spot
    verification and calling employees.either by alternate number and verifying
    the same and that the procedure, therefore, was clearly illegal. It is not in
    dispute that the investigation requires to be done by the investigating
D   officer in accordance with the procedure prescribed under the Act. This
    Court in Automobile Products of India Employees' Union v. Association of
    Enginee1ing Wo1kers Bombay, [1990] 2 SCC 444 had held that the scheme
    relating to the recognition was to be done in accordance with the Act. Even
    if the parties consented to identify the number of employees in the Com-
    pany by secret ballot, that method was not warranted by law and consent
E   did not cure the illegality of substitution of .a procedure not prescribed
    under the Act. The same view was reiterated by this Court in Association
    of Engineeling W01kers v. Dockyard Labour Union & Ors., [1995] Supp. 4
    SCC 544. Consequently, the investigating office is required to conduct
    investigation in accordance with the procedure prescribed under the Act.
F
          In this case, the Industrial Court had directed the investigating
    officer by his order dated November 17, 1980 to give opportunity to .the
    parties and then to conduct the enquiry in terms of its previous order dated
    October 5, 1979. In furtherance thereof, the investigating officer called
    upon the appellant as well as the respondent-Union to submit the list of
G   members of the respective associations, he initially had verified the lists
    and thereafter made spot verification that the basis. He submitted a report
    stating that "as per the direction given by the Hon'ble Member, Industrial
    Court, the undersigned conducted the enquiry on the spot in the presence
    of the ~o representatives of each union and members of the non-applica-
H   tion employees." This report of the total number of respective unions was
              ASSN. OF CHEMICAL WORKERS v. S.D. RANE                    981

accepted by the Industrial Court and upheld no doubt not by a very A
reasoned order, by the summary order. The Division Bench did not inter-
fere after perusal of records, since no error of law would be noticed. Hence
this appeal.

       Under Section 14 of the Act, the prohibition to make a fresh applica-
tion was imposed for a period of two years; further making of an applica-      B
tion within one year from the date of order passed by the Industrial Court
was prohibited. In other words, after the expiry of two years, if any rival
union seeks any recognition, the Industrial Court is required to follow the
procedure prescribed under Section 14 of the act and then to take a
decision according to law. Since the order was passed by the Industrial        C
Court in the year 1983 and sufficient time has already elapsed, the embargo
under Section 14 of the Act no longer is available. Therefore, if the
appellant still seeks any recognitiqn of the appellant-Union in accordance
with the provisions of the Act, it would be open to adopt such procedure
as is available under law.
                                                                               D
       The appeal is accordingly dismissed. No costs.

G.N.                                                      Appeal dismissed


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