Bombay High Court
Mah.State Mining Coporation ... vs State Of Maharashtra & Ano on 15 December, 2017
Bench: B.P. Dharmadhikari
wp.2004.02+
1
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT NAGPUR, NAGPUR.
...
WRIT PETITION NO. 2004/2002
&
WRIT PETITION NO. 5223/2004
WRIT PETITION NO. 2004/2002
1) Maharashtra State Mining Corporation
Employees' Union (Affiliated to
Rashtriya Shramik Congress)
Regd. No. NGP -1010 Through its
General Secretary
Shri Moreshwar s/o Narayanrao Kshirsagar
R/o Plot No. 56, Santaji Colony,
Dandekar Layout, Narendranagar, Nagpur.
2) Ashok s/o Vithobaji Vilayatkar
Aged about 47 years, occu: Service
Garoba Maidan, Old Bagadganj, Dhuniwale Chowk
Nagpur.
3) Ramesh s/o Harbaji Datir
Aged about 52 years, occu: service
R/o Plot No.24, Jamdarwadi
Near Bohare Colony, Nagpur.
4) Namdeo s/o Tulshiramji Gole
Aged about 55 years, occu: service
Plot No.130, Gandhi Nagar Nagpur.
5) Mahadeo s/o Domaji Lonare
(Deleted as per court's order
dated 29.04.2004) .. ..PETITIONERS
versus
1) State of Maharashtra
Trade Commerce & Mining Department
Mantralaya, Mumbai 400 032.
Through its Secretary
::: Uploaded on - 19/12/2017 ::: Downloaded on - 20/12/2017 01:25:31 :::
wp.2004.02+
2
2) Maharashtra State Mining Corporation Ltd
5, Abhyankar Nagar, Nagpur 440 010.
Through its Managing Director. .. ..RESPONDENTS
...............................................................................................................................................
Mr.Vikram Marpakwar, Advocate for petitioners
Mr.Nitin Rode, AGP for respondent no.1
Mr.Akshaya Sudame, Adv.for respondent no.2
................................................................................................................................................
WRIT PETITION NO. 5223/2004
* Pranabesh Chandra Chakraborty
Aged about 55 years, occu: service
R/o Wanjari Nagar, Nagpur. .. ..PETITIONER
versus
1) Maharashtra State Mining Corporation Ltd
5, Abhyankar Nagar, Nagpur 440 010.
Through its Managing Director.
2) State of Maharashtra
Through its Secretary
Industry, Energy and Labour Department
Mantralaya, Bombay-32. .. ..RESPONDENTS
...............................................................................................................................................
Nobody for petitioner
Mr.Akshaya Sudame, Adv. for respondent no.1
Mr.Nitin Rode, AGP for respondent no.2
................................................................................................................................................
CORAM: B.P. DHARMADHIKARI &
MRS. SWAPNA JOSHI, JJ.
DATED: 15th December, 2017
ORAL JUDGMENT: (PER B.P.DHARMADHIKARI, J.)
1. These Writ Petitions under Article 226 of the Constitution question
action of State Government in bringing down age of superannuation from 60 to 58
years for employees of Maharashtra State Mining Corporation.
wp.2004.02+
2. The Maharashtra State Mining Corporation is a Government company
registered under the Indian Companies Act having its office at Nagpur. Provisions of
Bombay Shops and Establishments Act, 1948, Industrial Disputes Act, 1947 and
Industrial Employment Standing Orders Act,1946, with Model Standing Orders framed
therein apply to it.
3. It is not in dispute that the service conditions of the staff/employees
working with Mining Corporation are regulated by Conduct, Discipline and Appeal
Rules of said Corporation. These rules are published by Government of Maharashtra
in October 1982, after approval of General Administration Department on 16th August,
1982. The petitioners, therefore, claim that rules have come into force on 16th
August, 1982. As per Rule (ix) in Part B (v) age of retirement or superannuation is 60-
years. This clause (ix) reads as under :
"ix. Age of retirement or superannuation of the employee shall be 60
years or any other as may be agreed upon between the management
and employees by any agreement, settlement or award which will be
binding on the management and the employee for the time being in force."
4. The petitioners claim that accordingly their age of superannuation was
and even today is 60-years as there is no agreement, settlement or award to the
contrary. They submit that in this backdrop when the State Government issued
Government Resolution dated 24.10.2001 and brought down age of superannuation
wp.2004.02+
from 60 to 58 years, the controversy cropped up.
5. Adv.Marpakwar submits that petitioner no.1- Trade Union in Writ Petition
No.2004/2002 approached the Industrial Court in ULP-Complaint No. 787/2001 and
claimed violation of Section 9-A of Industrial Disputes Act read with other relevant
entries of Maharashtra Recognition of Trade Union and Prevention of Unfair Labour
Practices Act (hereinafter referred to as Act No.1 of 1972). There, an application
under section 30(2) for grant of interim relief was also moved and Industrial Court
on 3rd May 2002 passed an order observing that in jurisdiction available to it under
Act No. 1 of 1972, it could not have examined the legality of Government
Resolution (GR) dated 24.10.2001. This order forms subject-matter of Writ Petition No.
2004/2002. In view of additional prayers made therein, the challenge has been placed
before the Division Bench. The petitioners in Writ Petition Nos.2004/2002 are
members of the petitioner no.1-Trade Union and, therefore, are covered under Section
2(s) of Industrial Disputes Act.
6. Nobody has appeared for petitioner in Writ Petition No. 5223/2004.
However at the relevant time, he was working as Assistant Manager, Marketing and
Devlepment and, therefore, does not qualify as workman. He has also questioned
very same GR urging that he cannot be retired before reaching age of 60 years.
7. It is not in dispute that all petitioners in both these matters have already
wp.2004.02+
crossed age of 60 years. This Court has while admitting the matters, not granted any
interim relief but then on 24th June 2003, has observed that if petitioners succeed in
petition they would be entitled to get benefits as are permissible in law.
8. Adv. Marpakwar submits the Discipline and Appeal Rules mentioned
supra, do not permit State Government to amend any clause /rule therein. He has
also invited our attention to Articles of Association particularly Article 75 to show that
it is duty of company to frame services bye-laws and rules, State Government has
been given powers to approve or disapprove it. Hence, amendment necessitating
reduction in age of superannuation must also emanate from Company. The State
Government of its own cannot suggest such amendment. To substantiate his
contentions, he has invited our attention to the powers given to Board of Directors vide
Chapter XII Rules, 5,16,17 etc. of Articles of Association. He submits that even after
action of Government dated 24.10.2001 bringing down the age of superannuation,
Board of Directors of Company has not passed any resolution and has not brought
down the age. Therefore, provision of clause (ix) of Discipline and Appeal Rules supra,
is still not altered and 60 continues to be the age of superannuation. He, therefore,
seeks relief of back wages for all petitioners till they reached the age of 60 years
with consequential hike in their gratuity, provident fund and other terminal benefits. He
adds that pension is not the condition of service. He points out that in Writ Petition No.
2004/2002 petitioner no.1 is a registered Trade Union and all its members who have
retired after filing of this petition are therefore entitled to the benefit of adjudication.
wp.2004.02+
9. Adv. Sudame appearing for company, submits that Discipline & Appeal
bye-laws do not come into force of its own but are required to be reserved for
consideration of State Government. In terms of Article 75, State Government has
power to suggest the alterations, modification and here, that power has been
exercised on 24.10.2001. As the employees working in State Government were /are
retired after reaching age of 58, to avoid any dichotomy State Government found it
proper to prescribe the same age of superannuation and accordingly on 24.10.2001
necessary directions have been issued. The directions are in public interest and,
therefore, this Court should not intervene.
10. He submits that petitioner in W.P.No. 5223/2004 is not a workman and
hence protection available via section 9-A of Industrial Disputes Act is not attracted
in his case. Lastly, he adds that as the action has been taken in the public interest
bona fide though this court may find fault with decision of State Government dated
24.10.2001, the age of superannuation may be hiked prospectively and those who
have already superannuated, may not be given any benefit - financial or otherwise.
The doctrine of "no work no pay" should be used and unnecessary burden on
revenue of company should be avoided. He adds that otherwise survival of
respondent-company will be jeopardized.
11. Learned AGP adopts arguments of Adv. Sudame. He stated that State
Government has given cogent reasons for providing uniformity and those reasons are
wp.2004.02+
not in dispute. Members of petitioner-Union in Writ Petition No.2004/2002 or petitioner
in Writ Petition No.5223/2004 have not worked after reaching age of 58 years and
hence are not entitled to any wages or other benefits. As there are no allegation of
any malice, the petitioners should not be given any relief and petitions should be
dismissed.
12. With the assistance of respective counsel, we have perused the papers.
The Articles of Association of company i.e. Maharashtra State Mining Corporation
Limited are not in dispute. Article 75 on which parties have placed reliance is as
under :
"75. Without prejudice to the generality of the above provisions, the Board
shall reserve for decision of the State Government -
(1) rules of the company governing the conditions of service of the
employees, Provident Fund and other rules, creation of Reserve and Special
Fund;
(2) sale, lease or disposal otherwise of the whole or substantially the
whole of the undertaking of the company;
(3) formation of a subsidiary Company."
13. The provisions relied upon by Adv. Marpakwar which cloathe Board of
Directors of company with power to frame service conditions are contained in chapter
XII. In chapter XII in clause (5) power has been given to Board of Directors to appoint
and remove, suspend Managers, Secretaries, Officers, Clerks, Agents and servants, for
wp.2004.02+
permanent temporary or special services and to fix and determine their duties, salaries,
emoluments. It is stipulated that no appointment to a post of which maximum pay is
more than 2000 per month can be made without prior approval of State Government.
Clause (16) permits Board of Directors to make, vary and repeal from time to time bye-
laws for regulation of business of company, its officers and servants. Clause (17)
empowers Board to give or allow any bonus, pension, gratuity, compensation to any
employee of the company. These clauses therefore show that bye-laws to regulate
the business of officers or servants including their service conditions need to be
framed only by Board of Directors. It is not in dispute that accordingly the Conduct,
Discipline and Appeal Rules have been framed by Board of Directors. Article 75
reproduced supra required Board to reserve for decision of State Government Rules of
company governing conditions of service of employees, provident fund and other
rules. These bye-laws or rules were accordingly sent to State Government and in
exercise of these powers, State Government has granted necessary approval through
its General Administration Department on 16th August,1982. Approval has been
published by Ministry of Industries, Energy and Labour Department of State
Government in October, 1982. These Service Rules or Bye-laws titled Conduct,
Discipline and Appeal Rules of Maharashtra State Mining Corporation Limited are in
force since then. The provision relating to superannuation is contained in these
Rules and it is already reproduced by us supra.
wp.2004.02+
14. Thus, the power to frame Service Rules and to decide service
conditions with Board of Directors of respondent-company and in exercise of that
power, age of superannuation has been determined at 60. The Rules could not have
been brought into force without getting it approved from State Government but State
Government approved it in August, 1982. Thus, 60 is the stipulated age of
superannuation in these Service bye-laws or service rules. Service Rule reproduced
supra itself mentions that age of superannuation has to be 60 years or then such
other age as may be agreed upon between management and employees by any
agreement, settlement or award. Such agreement, settlement or award has to be
binding on the Management and the employees for the time being force. Neither
petitioners nor management has pointed out any agreement, settlement or award. 60
is the age stipulated in Service Rules approved by State Government and that age
therefore is the age of superannuation in terms of various provisions mentioned supra,
and remained to be so till 24.10.2001.
15. On 24.10.2001 State Government has come up with a Government
Resolution and reduced that age from 60 to 58 years. The reason therefor is the age
of superannuation of State Government employees. One fails to understand why
employees of State Government needed to be compared with employees of Mining
Corporation (company) for this purpose. There is no explanation tendered either by
company or then by State Government in this respect.
wp.2004.02+
16. The State Government also has not quoted any power or sanction
used by it for issuing this resolution dated 24.10.2001. When the Articles of Association
do not empower the State Government to issue any directions and service conditions
are to be framed by the Board of Directors of Mining Corporation, the State
Government itself for any reason could not have brought down the age of
superannuation. This exercise of power by State Government is not supported by
any legal provision.
17. The petitioner-Trade Union in Writ Petition No.2004/2002 has gone to
Industrial Court and filed ULP (Complaint) under Unfair Labour Practice under item
9 Schedule IV of MRTU & PULP Act, because of violation of Section 9A of Industrial
Disputes Act. It appears that if their contention that provisions of Industrial Employment
Standing Orders Act and Model Standing Orders framed therein which prescribe
age of superannuation to be 60 years, has to prevail over GR dated 24.10.2001 is
accepted, the age of superannuation even, in that case, would have been 60 only for
all those who qualify as workmen under Section 2(s) of Industrial Disputes Act. Mr.
Marpakwar has relied upon the judgment of Hon'ble Apex Court in the case of The
U.P. State Electricity Board and another vs. Hari Shankar Jain and others,
reported at (1978) 4 SCC 16.
18. Here, as we find that the power to determine age of superannuation is
exclusively with the Board of Directors of Mining Corporation and Board of Directors
wp.2004.02+
has not resolved either before or after 24.10.2001 to bring it down to 58 years, the
age of superannuation stipulated in clause (ix) supra, must operate and prevail.
19. We, therefore, find the direction issued by State Government on
24.10.2001 at Annexure "A" in Writ Petition No.5223/2004 or at Annexure I of Writ
Petition No.2004/2002 unsustainable. It is accordingly quashed and set aside.
20. The petitioners have reached age of superannuation during pendency
of petitons and challenge raised by them pointing out correct age or their legal right
to continue till then, is very much pending. Petitioners, however, have not worked after
reaching the age of 58 years and, in this situation, normally when there are no mala
fides pleaded, the principle of "no work no pay" should apply. However it is to be
noted that pension is not the condition of service and hence by denying them wages
for period beyond 58 years till their reaching age of 60 years, a substantial loss will
be caused to them. Their service conditions has been violated and they were/are
legitimately expecting to work till 60 years of age. We also find that it is State
Government which has taken impugned decision and forced it upon the Mining
Corporation.
21. We, therefore, grant 50% of wages to petitioners from the date on
which they have been sent out after reaching age of 58 years till they attained the age
of 60 years. Half of this, i.e. 25% shall be paid to petitioners by their employer namely,
wp.2004.02+
Maharashtra State Mining Corporation while remaining half shall be paid by State
Government.
22. The amount due and payable to each petitioner and member of
petitioner no.1-Trade Union shall be computed within a period of six months from
today and shall be made over to them within next three months. If it is not so made
over, the amount due and payable shall then carry interest at the rate of 8 per cent
per annum, from today till its realization by such workman/employee.
23. Writ Petitions are, thus, partly allowed and disposed of. No costs.
JUDGE JUDGE
sahare
