As per case facts, petitioners challenged a Labour Court judgment that restored an application filed by Respondent No. 1. Petitioners had earlier sought wages under the Industrial Disputes Act against ...
wp-14798-2023.doc
Shabnoor
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.14798 OF 2023
1.Sunanda S. Mandhare, (Mrs. Sunanda
Sunil Badrike), Age 48 years,
RH-05, Loha Bhavan Coop. Housing
Society Limited, Plot No.6, Sector-3,
New Panvel, Raigad,
Maharashtra 410 206
2.Savitri H. Patil (mRS. Savitri Pradip
Patil) Age 45 years,
Nanda Deep, Plot No.23, Road No.7,
Sector, New Panvel 410 206
3.Aarti L. Sawant (Mrs. Rajashri Sanjay
Rane), Age 45 years,
403, Rajpath Eastern Heights,
Navghar Road, Near Tata Colony,
Mulund (East), Mumbai 400 081
4.Sushma Balkrishna Mhatre
(Mrs. Sushma Vlhas Kadu), Age 46,
Plot No.688, Shree Swami Samarth
Bunglow, Kadu Sir, Mhada Colony,
Pen, Raigad, Maharashtra 402 107
5.Nutan S. Pingulkar (Mrs. Nutan
Sanjay Chikhalikar), Age 50 years,
B-201, Suraj Apartment,
Plot No.160/161, Sector-4,
Near Prakash Super Market,
New Panvel, Raigad 410 206
6.Kalpana P. Mankame (Mrs. Sakshi
Sanjay Powale), Age 48 years,
Aditya Plaza, Plot No.91, B Wing,
1
SHABNOOR
AYUB
PATHAN
Digitally signed
by SHABNOOR
AYUB PATHAN
Date: 2026.04.10
12:31:52 +0530
wp-14798-2023.doc
First Floor, Near Purohit Hospital,
MCCH Society, Panvel, Raigad, Navi
Mumbai, Maharashtra, India 410 206
7.Sandhya S. Chavan (Mrs. Meenal
Murlidhar Ghag), Age 50 years,
Greenfield Apartments, NL-6/8/10,
Sector-8, Nerul, Navi Mumbai 400 706… Petitioners
Vs.
1.Procter & Gamble Health Limited,
Godrej One, 8th Floor, Pirojshah Nagar,
Eastern Express Highway, Vikhroli (E),
Mumbai 400 079
2.Sadhana R. Pote
3.Rohini S. Kurghode
4.Veena V. Pimpalvadkar
5.Smitha S. Khambekar
6.Pushpa C. Thange
7.Sandhya N. Singhasane
8.Arundhati M. Marathe
9.Vanshree Y. Bagade
10.Nalini S. Mokal
11.Lata S. Gaikwad
12.Jyotsna D. Mayekar
13.Neelam P. Sarmalkar
14.Asha D. Patil
15.Kalpana G. Waghmare All C/o.
Rekha-Villa CHS, 24/4, ‘B’ Wing,
Sathe Wadi, Sane Guruji Marg,
‘B’ Cabin, Naupada,
Thane (W) 400 602… Respondents
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Mr. Yogendra Pendse with Ms. Tejashree Joshi for the
petitioners.
Mr. S.K. Talsania, Senior Advocate with Mr. R.N. Shah
i/by Mr. Piyush Shah for respondent No.1.
Mr. Avinash Jalisatgi with Ms. Divya Wadekar and Mr.
Mulanshu Vora for respondent Nos.2, 3, 4, 6, 7, 9, 10 &
12.
CORAM :AMIT BORKAR, J.
RESERVED ON :APRIL 9, 2026
PRONOUNCED ON:APRIL 10, 2026
JUDGMENT:
1.By the present Petition instituted under Articles 226 and 227
of the Constitution of India, the Petitioners have assailed the
legality and correctness of the Judgment and Award dated 9
February 2023 rendered by the 4th Labour Court at Thane in
Miscellaneous Restoration Application (IDA) No. 1 of 2022.
2.The factual matrix giving rise to the present Petition, in brief,
is that the Petitioners, along with certain other workmen,
excluding Respondent No. 1, had instituted proceedings under
Section 33C(2) of the Industrial Disputes Act, 1947. In the said
proceedings, it was, inter alia, contended that the workmen were
entitled to wages in accordance with the principle of equal pay for
equal work and that they had been paid wages lower than those
legally due by E-Mark India Ltd. It is further the case of the
Petitioners that E-Mark India Ltd. subsequently came to be taken
over by Respondent No. 1 Company pursuant to a Share Purchase
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Agreement concerning the healthcare business of the erstwhile
Company. The erstwhile Company entered appearance in the
aforesaid proceedings and tendered a detailed Written Statement
contesting the claims raised therein. During the pendency of the
said proceedings, the erstwhile Company, having regard to the
pendency of certain other litigations, preferred an Application
seeking stay of the proceedings, which Application came to be
allowed by the Labour Court, thereby directing that the
proceedings be kept in abeyance. Writ Petition No. 1103 of 2000
came to be disposed of on 26 October 2016.
3.The Petitioners further assert that they had challenged the
said order by way of a Special Leave Petition. It is their case that
notwithstanding the disposal of the Writ Petition, the Labour Court
continued to keep the proceedings in abeyance until approximately
the year 2019, although the matter was periodically listed on the
board. Upon disposal of the aforesaid Writ Petition, the Labour
Court resumed hearing of the Application. According to the
Petitioners, the erstwhile Company had full knowledge of such
disposal; however, it failed to remain present before the Labour
Court during the subsequent proceedings.
4.Thereafter, the Labour Court, by its Judgment and Order
dated 27 January 2020, allowed the Application, inter alia placing
reliance upon the law laid down by the Supreme Court in State of
Punjab vs. Jagjit Singh. It is further stated that immediately after
the pronouncement of the said Judgment, the outbreak of the
COVID-19 pandemic intervened, on account of which further
proceedings could not be effectively pursued and remained stalled
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for a considerable period.
5.Upon easing of the pandemic-related restrictions, the
Petitioners approached the Executing Authority, namely the Deputy
Commissioner of Labour. The said Authority, after affording an
opportunity of hearing to the parties, issued a Recovery Certificate.
It is specifically averred that Respondent No. 1 was also heard at
the stage of issuance of the Recovery Certificate and was fully
aware of the Judgment and Order dated 27 January 2020, as the
erstwhile Company had duly communicated the same along with
particulars of the execution proceedings.
6.Respondent No.1 thereafter instituted Miscellaneous
Restoration Application (IDA) No. 1 of 2022 seeking restoration of
the original Application on diverse grounds, including the alleged
takeover of the erstwhile Company. The Petitioners entered
appearance and opposed the said Application. Respondent No. 1
also sought interim relief by way of stay to the execution of the
Recovery Certificate and prayed for modification of the condition
of deposit from a monetary deposit to furnishing of a bank
guarantee. By an order passed in Writ Petition No. 13247 of 2022,
this Court permitted Respondent No. 1 to furnish a bank guarantee
and enhanced the quantum from 30% to 40% of the Recovery
Certificate amount. The Restoration Application was thereafter
heard on merits, wherein Respondent No. 1 adduced evidence
through its witness, whereas the Petitioners chose not to lead any
evidence. The Petitioners contend that, by the impugned Judgment
and Order dated 9 February 2023, the Labour Court allowed the
said Restoration Application and restored the original Application
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to its file. Being aggrieved by and dissatisfied with the said
Judgment and Order, the Petitioners have invoked the writ
jurisdiction of this Court by filing the present Petition.
7.Mr. Pendse, learned Advocate appearing on behalf of the
Petitioners, submits that the Labour Court has committed a
manifest error in appreciating the material facts on record. It is
contended that Respondent No. 1 Company must be presumed to
have knowledge of the pending proceedings, particularly in view
of the categorical admission of its witness that both entities are, in
substance, one and the same. According to him, although the
Labour Court has recorded findings to that effect, it has failed to
draw the necessary and correct legal inference arising therefrom. It
is further submitted that the Labour Court has failed to appreciate
that Respondent No. 1 had knowledge of the Judgment and Order
dated 27 January 2020 at least from 25 February 2022, and
despite such knowledge, did not take any steps within a reasonable
period as required in law.
8.The Petitioners further contend that Respondent No. 1 did
not apply for a certified copy of the said Judgment and Order until
April 2022 and, more importantly, did not file any application for
condonation of delay while seeking restoration of the proceedings.
In the absence of such an application, it is submitted that the
restoration proceedings were clearly barred by limitation. It is
submitted that the Labour Court has failed to consider the
aforesaid aspects in their proper perspective and has, therefore,
erroneously allowed the restoration application. It is further
contended that the reasons put forth by Respondent No. 1 are
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wholly untenable and appear to be an afterthought. The plea
regarding the demise of the Advocate is stated to be factually
incorrect, inasmuch as the said Advocate was never representing
Respondent No. 1. This, according to the Petitioners, clearly
indicates that Respondent No. 1 has acted in an opportunistic
manner with a view to reopen proceedings which had already
attained finality. Mr. Pendse further submits that apart from the
Advocate whose demise has been relied upon by Respondent No.
1, one Advocate Puranik was also representing the Company in the
said proceedings. It is, therefore, contended that the Company was
represented by more than one Advocate, and the plea sought to be
raised on the basis of the demise of a single Advocate cannot be
accepted as a valid or sufficient ground.
9.Learned Advocate for the Petitioners further submits that the
Labour Court has failed to appreciate that the erstwhile Company
had actively participated in the proceedings and that the matter
was kept in abeyance by consent of parties only till the decision of
the proceedings pending before this Court. It is submitted that
upon disposal of the said proceedings, the Labour Court rightly
resumed the matter and proceeded to pass the Judgment and
Order dated 27 January 2020 in accordance with law. The
Petitioners contend that, in such circumstances, Respondent No. 1
cannot be permitted to reopen the proceedings under the guise of
restoration, particularly in the absence of sufficient cause and
without furnishing any satisfactory explanation for the delay.
10.It is further submitted that the impugned Judgment and
Order dated 9 February 2023 is contrary to settled principles of
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law, suffers from non-application of mind, and has been passed
without proper consideration of the issue of limitation as well as
the conduct of Respondent No. 1.
11.Per contra, Mr. Talsania, learned Senior Advocate appearing
on behalf of Respondent No. 1, submits that the employees were
fully aware that Application (IDA) No. 174 of 1997 had been kept
in abeyance till the decision in Writ Petition No. 1103 of 2000. It is
submitted that after dismissal of the said Writ Petition by this
Court on 26 October 2016, the employees neither placed a copy of
the Judgment before the Labour Court nor informed the Labour
Court about such disposal on any of the subsequent dates. It is
further submitted that by suppressing this material fact, as well as
the Judgment of this Court, the employees proceeded to obtain an
ex-parte order, particularly at a time when the Advocate appearing
for the Respondent Company had expired after a prolonged illness.
It is contended that it was the bounden duty of the employees to
bring the said fact to the notice of the Labour Court, especially in
view of the Order dated 11 September 2013 passed by the Labour
Court, wherein it was specifically observed that the proceedings
shall remain in abeyance till the decision of the High Court.
12.It is further submitted that by a subsequent Order dated 27
June 2016, the Labour Court had reiterated that the main
application had been kept in abeyance until the decision of the
High Court in Writ Petition No. 1103 of 2000. It is pointed out that
the Labour Court, in the said Order, had observed that since the
issue regarding completion of 240 days of service in a year was
common to both proceedings, it would not be appropriate to
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record independent findings, and accordingly rejected the
application seeking review. In view of the aforesaid orders, it is
submitted that it was incumbent upon the employees to bring to
the notice of the Labour Court the dismissal of the Writ Petition
and to place on record a copy of the Judgment and Order dated 26
October 2016 passed by this Court.
13.It is further submitted that suppression of these material
facts is evident from the ex-parte Judgment and Order dated 27
January 2020, inasmuch as the employees, while advancing
arguments through their Advocate, failed to disclose to the Labour
Court the factum of dismissal of the Writ Petition. It is contended
that even in the present Petition, the Petitioners have suppressed
the material facts relating to the Judgment and Orders passed in
Writ Petition No. 1103 of 2000 and have merely stated that the
said Writ Petition was disposed of in the year 2016, without
disclosing the true effect thereof. It is further submitted that on 5
December 2023, being the first date of hearing, the Petitioners,
without serving notice upon the Respondents despite a Caveat
having been filed, failed to inform this Court that the Writ Petition
filed by them had already been dismissed in the year 2016. It is
contended that had the Respondents been served and heard, the
true facts would have been placed before this Court and the Order
dated 5 December 2023 would not have been passed. In support of
the aforesaid contentions, reliance is placed upon the judgment of
the Supreme Court in
Ramjas Foundation vs. Union of India and
Others, reported in (2010) 14 SCC 38
, wherein it has been held
that a party who does not approach the Court with clean hands is
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not entitled to be heard on merits and is disentitled to any relief.
14.It is further submitted, placing reliance on the observations
in the said judgment, that it is an established principle that when a
party seeks relief on an ex-parte basis, it is under an obligation to
make full and fair disclosure of all material facts, failing which any
order obtained is liable to be set aside. It is further contended that
the said principles have been consistently applied by the Supreme
Court in a catena of decisions, wherein relief has been declined to
parties who have suppressed material facts or have not approached
the Court with clean hands. On the aforesaid ground alone, it is
submitted that the present Petition deserves to be dismissed.
15.Learned Senior Advocate further submits that on 1 December
2018, the erstwhile E-Merck came to be acquired by Procter &
Gamble pursuant to acquisition of shares. It is submitted that on
13 April 2019, Advocate K.T. Rai, who was appearing for the
erstwhile Company, expired after a prolonged illness. It is further
submitted that on 11 October 2019, the Labour Court was on leave
as per the Roznama; however, the stage of the matter was altered
to that of hearing without any formal order, and the notation “kept
in abeyance” was removed. This aspect has been recorded by the
Labour Court in its Order dated 9 February 2023 while restoring
the proceedings. It is contended that Respondent No. 1 was never
made aware of such change in status, as neither notice was issued
by the employees nor by the Labour Court, and in the absence of
representation due to demise of the Advocate, the Respondents
remained unaware of the proceedings. It is, therefore, submitted
that the Petitioners have failed to make out any case warranting
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interference and no ground exists to grant any relief in their
favour. According to Respondent No. 1, the Order dated 9 February
2023 passed by the Labour Court is legal, proper, and justified, and
the present Petition being devoid of merit, deserves to be
dismissed.
REASONS AND ANALYSIS:
16.I have gone through the rival submissions with care. The real
question is not only whether Respondent No. 1 had knowledge of
the earlier proceedings, but whether the Labour Court committed
such an error in allowing the restoration application that this
Court must interfere in writ jurisdiction. The answer has to be
found in the surrounding conduct of the parties, the earlier orders
of the Labour Court, the stage at which the matter stood, and the
explanation offered for non-appearance and delay.
17.The Petitioners contend that Respondent No. 1 was fully
aware of the proceedings and that such knowledge must be
presumed, since its witness admitted that the erstwhile Company
and Respondent No. 1 were in substance one and the same. It is
also said that the Labour Court itself recorded findings showing
continuity between the two entities, yet it failed to draw the
proper legal inference. This submission cannot be brushed aside
lightly. If the successor company had stepped into the shoes of the
erstwhile Company, it would ordinarily be expected to take charge
of pending litigation and follow the matter with due diligence. A
party cannot remain silent for long and later claim complete
ignorance as a matter of course. At the same time, presumed
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knowledge is not the same as proved effective knowledge on a
particular date. The Court has to see whether there was notice in
fact, whether the matter was listed, and whether the party had a
fair chance to appear.
18.The record shows that the proceedings under Section 33C(2)
had remained in abeyance for a long time because of pending
proceedings before this Court. The orders dated 11 September
2013 and 27 June 2016 clearly show that the Labour Court itself
had kept the matter in suspension till the decision of Writ Petition
No. 1103 of 2000. Those orders also make it plain that both sides
were conscious that the fate of the Labour Court matter was linked
with the result of the writ petition. Once the writ petition was
disposed of on 26 October 2016, it was certainly expected that the
parties would place the fact before the Labour Court and seek
appropriate directions. The mere expectation of such conduct does
not by itself answer the further question whether Respondent No.
1 was given due opportunity after the case was revived or whether
it was proceeded against without effective notice.
19.The Petitioners say that Respondent No. 1 had knowledge of
the Judgment and Order dated 27 January 2020 at least by 25
February 2022, and even then did not act with reasonable
quickness. They also point out that the certified copy was not
applied for till April 2022 and no separate application for
condonation of delay was filed. In a case where a party wants
restoration after the passage of time, the explanation for delay
cannot be vague or casual. The law expects a reasonable and
honest explanation. But the issue here is not to be decided in
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isolation only on the basis of dates. The Labour Court was required
to see the entire sequence. The proceedings had remained dormant
for years. The status of the matter on the board had changed. The
company says no notice was issued. Its earlier Advocate had died
after illness. There was also another Advocate, Puranik, said to
have been on record. These facts together created a situation in
which the Labour Court could reasonably hold that the absence
was not deliberate in the strict sense urged by the Petitioners.
20.The Petitioners have further argued that the plea based on
the death of the Advocate was false, because the said Advocate
was not even representing Respondent No. 1, and in any case
another Advocate Puranik was also representing the company. This
submission does raise doubt on the exact manner in which the
company was represented. Yet it does not by itself demolish the
finding of the Labour Court. The death of one Advocate may not
be the only reason, but it can still be one of the reasons showing
why the company did not follow the matter with the expected
speed. The presence of another name on record is not enough to
conclude that there was representation on every relevant date.
Representation in law is a matter of actual appearance, notice and
conduct.
21.The Petitioners also say that the erstwhile Company had
participated in the proceedings and that the matter was kept in
abeyance only by consent till the decision of the pending writ
petition. On that aspect there can be little dispute. The earlier
orders show that the matter was indeed kept in abeyance because
there was a pending proceeding before this Court. Therefore when
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that proceeding ended the parties were expected to take steps. But
this point, instead of helping the Petitioners fully, also cuts both
ways. If the matter had been kept in abeyance for a specific reason,
then the later change in the board position and the resumption of
hearing ought to have been clearly brought to the notice of all
concerned. The record suggests that the stage changed and the
caption “kept in abeyance” was removed without a clear order
being communicated to the company. The Labour Court has noted
this aspect. That finding cannot be ignored unless it is shown to be
impossible.
22.The charge of suppression is pressed strongly by both sides.
The respondent says the employees suppressed the dismissal of
Writ Petition No. 1103 of 2000 and thereby obtained an ex parte
order. The Petitioners, on the other hand, maintain that
Respondent No. 1 was aware of the dismissal, that its witness
admitted the identity between the two companies, and that the
restoration application was itself a device to reopen concluded
proceedings. Suppression is a serious allegation. It affects the
fairness of the process. But it must be tested against the actual
procedural history. The earlier Labour Court orders do show that
the existence of the writ petition was known. The question is
whether after disposal of that writ petition the matter was properly
brought back before the Labour Court with notice to all concerned.
On the present record, the Labour Court appears to have accepted
the explanation that Respondent No. 1 was not effectively
informed about the resumed hearing and that, because of the
changed status of the case, it did not have a fair opportunity to
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appear. That conclusion may not be the only possible one, but it is
certainly a possible one.
23.The argument based on limitation also does not carry the
matter any further. The Labour Court was not dealing with a
technical defect alone. It was dealing with a restoration request
arising out of a long history, where the matter had remained in
abeyance for years, where the successor company claimed no
effective notice, and where the explanation was supported by
evidence. The rule of limitation is meant to bring certainty, but it
cannot be applied in a vacuum so as to defeat the ends of justice
where the court below has taken a bona fide view on facts. In the
present case, the Labour Court was entitled to weigh the conduct
of the parties and decide whether sufficient cause had been shown.
That is a matter of discretion. Unless such discretion is shown to
be arbitrary or perverse, interference is not called for.
24.Much stress has been laid by the Petitioners on the fact that
Respondent No. 1 did not immediately apply for a certified copy
and did not file a formal condonation application. These are valid
points, but they are not decisive by themselves. Courts are
concerned with substance, not with procedural lapses. Where the
party explains that it came to know later, that it had no proper
representation, and that the record itself reflected confusion about
the status of the matter, the Labour Court may still choose to
restore the proceedings so that the dispute is heard on merits.
Such a course does not amount to illegality merely because the
application was not perfectly drafted.
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25.The Labour Court examined the earlier orders, the change in
the status of the case, the version of Respondent No. 1 regarding
knowledge and representation, and the evidence led before it. It
then allowed restoration. The reasons may not satisfy the
Petitioners, but they cannot be said to be unsupported by record.
The petitioners have not shown that the Labour Court ignored any
decisive material, applied a wrong principle of law, or exercised
jurisdiction in a manner so unreasonable that it calls for
interference. The impugned order therefore does not suffer from
such patent illegality as would justify writ correction.
26.For these reasons, the challenge to the Judgment and Order
dated 9 February 2023 cannot succeed. The restoration was
granted by the Labour Court after considering the rival cases and
the surrounding facts. In the absence of any clear perversity, this
Court would not be justified in upsetting that decision. The
Petition, therefore, deserves to fail.
27.In view of the foregoing discussion and reasons recorded
hereinabove, the following order is passed:
(i) The Writ Petition stands dismissed;
(ii) The Judgment and Order dated 9 February 2023
passed by the 4th Labour Court, Thane in Miscellaneous
Restoration Application (IDA) No. 1 of 2022 is upheld;
(iii) The proceedings in Application (IDA) No. 174 of 1997,
as restored by the Labour Court, shall now proceed in
accordance with law and be decided on their own merits,
without being influenced by any observations made in the
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present judgment;
(iv) All contentions of the parties on merits are kept
expressly open;
(v) In the facts and circumstances of the case, there shall
be no order as to costs;
(vi) Pending applications, if any, stand disposed of.
(AMIT BORKAR, J.)
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