As per case facts, the petitioner-Union filed a Writ Petition challenging the Industrial Court's order rejecting its recovery application. The Union claimed that as per a settlement, the respondent-employer deducted ...
Sowp13788-2023-J.doc
AGK
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 13788 OF 2023
Vidyut Metallics Employees Union,
A Trade Union registered under
the Trade Unions Act, 1923,
Having office at: Room No. 301,
Hema Apt. ‘D’ Wing, Davale Nagar,
Near T.M.T. Depo, Lokmanya Nagar,
Pada No. 2, Thane – 400 606.… Petitioner
Vs.
Vidyut Metallics Private Limited,
Having office at :
Earlier having factory at:
LBS Road, Wagle Road, Thane.… Respondent
Mr. Avinash Jalisatgi with Mr. T.R. Yadav, Ms. Divya
Wadekar and Mr. Mulanshu Vora for the petitioner.
Mr. Madhav Paranjape with Mr. Amey Humane for the
respondent.
CORAM :AMIT BORKAR, J.
RESERVED ON :APRIL 2, 2026.
PRONOUNCED ON:APRIL 9, 2026
JUDGMENT:
1.By the present writ petition filed under Articles 226 and 227
of the Constitution of India, the petitioner–Union calls in question
the legality and correctness of the Judgment and Order dated 21
1
ATUL
GANESH
KULKARNI
Digitally signed
by ATUL GANESH
KULKARNI
Date: 2026.04.09
11:40:42 +0530
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April 2023 passed by the Industrial Court in Miscellaneous
Application Recovery (ULP) No. 3 of 2013.
2.The facts giving rise to the present petition, briefly stated,
are as follows. The respondent was employing approximately 1500
employees, a substantial number of whom were members of the
petitioner–Union. A settlement dated 2 February 2006 came to be
executed between the petitioner and the respondent during
conciliation proceedings, governing the service conditions of the
employees, including wages, allowances, and bonus. Under Clause
11 of the said settlement, the eligible employees were entitled to
payment of bonus at least ten days prior to Diwali. Clause 12 dealt
with payment of ex gratia, whereby it was agreed that such
amount would be paid ten days prior to Diwali, and a sum of Rs.
320/- per employee would be deducted by the respondent and
remitted to the petitioner–Union. It is the case of the petitioner
that the respondent failed to pay bonus to the employees as
stipulated. Repeated representations made by the petitioner and
the workmen did not yield any response. Such conduct, according
to the petitioner, constituted an unfair labour practice within the
meaning of Item 9 of Schedule IV of the Maharashtra Recognition
of Trade Unions and Prevention of Unfair Labour Practices Act,
1971. Consequently, the petitioner instituted Complaint (ULP) No.
425 of 2008 before the Industrial Court at Thane.
3.The Industrial Court, by an interim order dated 23 October
2008, directed the respondent to pay 50% of the bonus amount to
the employees as interim relief. In compliance with the said order,
the respondent disbursed 50% of the bonus to the employees.
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During the pendency of the proceedings, the respondent paid the
remaining amount of bonus to the employees and also effected
deduction of Rs. 320 from the amounts so paid. However, the
respondent failed to remit the deducted amount to the petitioner–
Union. According to the petitioner, such omission amounted to
continuation of the unfair labour practice on the part of the
respondent. Upon consideration of the evidence adduced and after
hearing the parties, the Industrial Court, by its order dated 30
December 2013, held that the respondent had engaged in unfair
labour practice within the meaning of Item 9 of Schedule IV of the
said Act, and directed the respondent to pay to the petitioner the
amount of Rs. 320 per employee so deducted.
4.Despite the aforesaid order, the respondent did not comply
with the direction to remit the deducted amount to the petitioner–
Union. The petitioner, therefore, invoked the provisions of Section
50 of the MRTU & PULP Act, 1971 and filed recovery proceedings
before the Industrial Court for enforcement of the said order. The
said proceedings came to be registered as Miscellaneous
Application Recovery (ULP) No. 3 of 2014. By the impugned order
dated 21 April 2023, the Industrial Court rejected the said
recovery application filed by the petitioner. Being aggrieved
thereby, the petitioner–Union has preferred the present writ
petition.
5.Mr. Jalisatgi, learned Advocate for the petitioner inviting my
attention to paragraphs 26 and 27 of the judgment of the Supreme
Court in the case of
Balmer Lawrie Workers’ Union, Bombay &
Another vs. Balmer Lawrie & Co. Limited & Others
, 1984 (supp)
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SCC 663, submitted that where members who form a union pay
the membership fee and receive the benefits or advantages of
being members of the union yet, persons who are not members of
the union without their consent was held to be impermissible. He
submitted that despite order passed by the Competent Court
having jurisdiction directing respondent to pay an amount of
Rs.320/- towards each workman and pay to the Union within
three months from 30 December 2013. If the view of the Industrial
Court is upheld, petitioner will render remediless as even Civil
Court’s jurisdiction in relation to enforcement of Award is barred.
He submitted that considering the purpose and object of the Act,
the expression ‘employee’ need to be interpreted in wide manner
to include ‘Union’, so as to give effect to valid Award passed by the
Industrial Court in Complaint (ULP) No.425 of 2008.
6.Per contra, Mr. Paranjape, learned Advocate for the
respondent submitted that money due is not dues of employee, but
is a money due to the petitioner-Union. The application under
Section 50 was filed by the Union in its own right. There is no
authorization issued by the employees to the Union to file such
application. What is permissible under Section 50 are the dues of
employee and Union cannot recover its own dues under Section 50
of the MRTU & PULP Act, 1971. He, therefore, prayed that the writ
petition is liable to be dismissed.
REASONS AND ANALYSIS:
7.I have considered the rival submissions with care and I have
also gone through the scheme of the Act and the authorities cited
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before me. On the whole, I am unable to accept the contention of
the petitioner that Section 50 can be stretched so far as to permit
the Union, in its own right, to seek recovery of the amount which
was directed to be paid to it under the earlier order.
8.For the purpose of deciding the issue involved in the present
matter, it becomes necessary to first refer to the relevant statutory
provisions. The controversy turns upon the meaning and scope of
the expressions used in the Act, and therefore, the Court must look
closely at the language employed by the legislature. In that view, it
is proper to set out Section 3, including clauses (5), (17) and (18),
as well as Section 50 of the MRTU and PULP Act.
“3: Definitions.
In this Act, unless the context requires otherwise,-
(5) "employee", in relation to an industry to which the
Bombay Act for the time being applies, means an employee
as defined in clause (13) of section 3 of the Bombay Act, and
in any other case means a workman as defined in clause (s)
of section 2 of the Central Act, and a sales promotion
employee as defined in clause (d) of section 2 of the Sales
Promotion Employees (Conditions of Service) Act, 1976 (11
of 1976) ;]
(17) "union" means a trade union of employees, which is
registered under the Trade Unions Act, 1926;
(18) words and expressions used in this Act and not defined
therein, but defined in the Bombay Act or, as the case may
be, the Sales Promotion Employees (Conditions of Service)
Act, 1976 (11 of 1976), shall in relation to an industry to
which the provisions of the Bombay Act apply, have the
meanings assigned to them by the Bombay Act or, as the case
may be, the Sales Promotion Employees (Conditions of
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Service) Act, 1976 (11 of 1976) ; and in any other case, shall
have the meanings assigned to them by the Central Act or, as
the case may be, the Sales Promotion Employees (Conditions
of Service) Act, 1976 (11 of 1976).
50. Recovery of money due from employer. Where any
money is due to an employee from an employer under an
order passed by the Court under Chapter VI, the employee
himself or any other person authorised by him in writing in
this behalf, or in the case of death of the employee, his
assignee or heirs may, without prejudice to any other mode
of recovery, make an application to the Court for the
recovery of money due to him, and if the Court is satisfied
that any money is so due, it shall issue a certificate for that
amount to the Collector, who shall, proceed to recover the
same in the manner as an arrear of land revenue : Provided
that, every such application shall be made within one year
from the date on which the money became due to the
employee from the employer : Provided further that, any
such application may be entertained after the expiry of the
said period of one year, if the court is satisfied that the
applicant had sufficient cause for not making the application
within the said period.”
9.Section 50 is only a provision for recovery and not a
provision which gives a new right to claim money. The right must
already exist. That right must come from an order passed by the
Court under Chapter VI. So first there has to be a finding that
some money is due. Only after that Section 50 comes into picture.
It acts like a method to get that money recovered. It does not
decide whether money is due or not. This section only helps in
enforcement. If the language of the section is read carefully it
becomes clear that the legislature has used clear words. It says the
employee himself can apply. That means the person to whom the
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money is due should come forward. It also allows some flexibility.
If the employee cannot come, then some other person can apply,
but only if there is written authority. This requirement of written
authority shows that the law wants to make sure that the person
filing the application is acting on behalf of the employee and not
on his own. The section also takes care of a situation where the
employee is no more. In that case his assignee or heirs can apply.
So the provision is complete in itself. It covers the employee, his
authorised person, and even his legal successors. But even in all
these situations the thrust remains on the employee and the money
due to him. It does not say that a Union can file such an
application in its own name. There is no mention of Union as an
independent claimant under this section. If at all a Union wants to
apply, it must show that it is authorised by the employee in
writing. Without such authority the Union stands outside the
provision. It appears to be a conscious choice made by the
legislature. The Court cannot ignore this scheme. When the
legislature has clearly identified who can apply and under what
conditions, the Court cannot add another category. If the word
“employee” is expanded to include Union then the whole structure
will change. That would mean creating a new right of application
which the section itself has not provided. Therefore, the way
Section 50 is framed shows a clear intention. The right to recover
under this provision is linked with the employee. Others can step
in only in a limited way and only with proper authority. The
provision does not go beyond this. The Court must also stop there
and not travel further than what the section permits.
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10.The petitioner has placed strong reliance on the opening
words of Section 3, which say, “unless the context requires
otherwise”. It is true that in law, definitions are not always to be
applied in a fixed and rigid manner. Courts have repeatedly said
that words must be understood in the setting in which they are
used. Language cannot be read like a machine. It must be read
with some sense of purpose. So the petitioner is correct to that
extent that context has a role. In the present case the petitioner’s
attempt is to substitute the word “employee” with “Union”.
Section 50 clearly uses the word “employee” and then provides
who else can act that too with written authority. If the Court
accepts the petitioner’s argument then one important requirement
in the section will disappear. The requirement of written
authorisation will lose its meaning. Context can help when there
is ambiguity in the language. It can help to clear confusion. But
here the language of Section 50 is plain. If despite that clarity, the
Court changes the meaning, then it will disturb the entire
provision. That is not the function of interpretation. Therefore,
while the principle relied upon by the petitioner is correct in law,
its application in the present case is not justified. Context cannot
be used to go against the plain scheme of the section. It cannot be
used to remove conditions which the legislature has deliberately
imposed.
11.The petitioner has also relied on the decision in Balmer
Lawrie Workers' Union
. I have gone through that judgment. It is no
doubt an important decision. But when it is carefully seen, it does
not support the case of the petitioner in the manner it is being
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argued. In that case, the Supreme Court was dealing with a
situation where there was a settlement between the employer and
the union. As part of that settlement, certain monetary benefits
were given to the workmen. Along with that, there was also a term
that some portion of those benefits would be deducted and given
to the union. This was part of the agreed terms between the
parties. The Court took note of this aspect. It said that when there
is a settlement and when benefits are given to all workmen, both
members and non-members, then a deduction agreed as part of
that settlement can be valid. The main reason behind this was
consent and overall arrangement. The Court recognised that
unions work for the benefit of employees. They incur expenses.
They support workmen during disputes and strikes. So when a
settlement brings monetary gain, it is not unfair if a small part is
given to the union, provided it is agreed upon. It is attached
closely to the facts of settlement and consent.
12.The argument is that since the union is entitled to receive
some amount under the earlier order, it should also be allowed to
recover that amount under Section 50. But this is where the
difficulty arises. The situation in
Balmer Lawrie was about validity
of deduction under a settlement. The present case is about the
method of recovery under a specific statutory provision. These two
things are not the same. The
Balmer Lawrie judgment only shows
that a union can receive money if there is a valid settlement and if
such deduction is part of that settlement. It does not say that the
union can step into the place of an employee for all purposes. It
does not say that the union can file recovery proceedings in its
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own name without any authorisation. That question was not even
before the Court in that case. There is a clear difference between
entitlement and enforcement. A union may be entitled to receive
some amount under a settlement or an order. But how that amount
is to be recovered is governed by the statute. Section 50 lays down
a specific procedure. That procedure requires either the employee
or someone authorised by him. This requirement cannot be
ignored by referring to a judgment which deals with a different
issue. If the argument of the petitioner is accepted then the
principle of consensual deduction will be turned into a rule of
recovery. That would be going beyond the ratio of the judgment.
Courts must be careful not to extend a decision beyond the point it
actually decides. Every judgment must be read in its own context.
Therefore, the reliance on
Balmer Lawrie though understandable
does not carry the petitioner’s case further. It helps only to show
that the union can receive money in certain situations. It does not
help in showing that the union can invoke Section 50
independently without following the conditions laid down in that
section.
13.In Pushpa Devi v. Milkhi Ram (1990) 2 SCC 134, the
Supreme Court held as under:
“ 17. … But the law in the court's keeping is just not a
system of logical abstraction. Nor it is a bucket of readymade
answers determined by any general formula or principle in
advance. In a famous passage Mr Justice Holmes said: “All
rights tend to declare themselves absolute to their logical
extreme. Yet all in fact are limited by the neighbourhood of
principles of policy which are other than those on which the
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particular right is founded, and which becomes strong
enough to hold their own when a certain point is reached...
The boundary at which the conflicting interests balance
cannot be determined by any general formula in advance,
but points in the line, or helping to establish it, are fixed by
decisions that this or that concrete case falls on the nearer or
farther side.” [Hudson County Water Co. v. McCarter, 209 US
349, 355-56: 52 Led 828, 832]
18. It is true when a word has been defined in the
interpretation clause, prima facie that definition governs
wherever that word is used in the body of the statute unless
the context requires otherwise. “The context” as pointed out
in the book Cross-Statutory Interpretation (2nd edn. p. 48)
“is both internal and external”. The internal context requires
the interpreter to situate the disputed words within the
section of which they are part and in relation to the rest of
the Act. The external context involves determining the
meaning from ordinary linguistic usage (including any
special technical meanings), from the purpose for which the
provision was passed, and from the place of the provisions
within the general scheme of statutory and common law
rules and principles.
19. The opening sentence in the definition of the section
states “unless there is anything repugnant in the subject or
context”. In view of this qualification, the court has not only
to look at the words but also to examine the context and
collocation in the light of the object of the Act and the
purpose for which a particular provision was made by the
legislature. Reference may be made to the observations of
Wanchoo, J. in Vanguard Fire and General Insurance Co. Ltd.
v. M/s Fraser and Ross [(1960) 3 SCR 857] where the
learned Judge said that even where the definition is
exhaustive inasmuch as the word defined is said to mean a
certain thing, it is possible for the word to have a somewhat
different meaning in different sections of the Act depending
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upon the subject or context. In that case, the learned Judge
examined the construction of the word ‘insurer’ as used in
Sections 33(1) and 2-D of the Insurance Act, 1938, in the
light of the definition of that word under Section 2(9)
thereof. The Insurance Act by Section 2(9) defines an
‘insurer’ as a person carrying on the business of ‘insurance’.
The question arose whether Sections 33(1) and 2-D did not
apply to insurer who had closed his business completely as
the definition of the word insurer in Section 2(9) postulates
actual carrying on of the business. It was pointed out that in
the context of Sections 33(1) and 2-D and taking into
account the policy of the Act and the purposes for which the
control was imposed on insurers, the word ‘insurer’ in the
said sections also refers to insurers who were carrying on the
business of insurance but have closed it.
20. Great artistry on the bench as elsewhere is, therefore,
needed before we accept, reject or modify any theory or
principle. Law as creative response should be so interpreted
to meet the different fact situations coming before the court.
For, Acts of Parliament were not drafted with divine
prescience and perfect clarity. It is not possible for the
legislators to foresee the manifold sets of facts and
controversies which may arise while giving effect to a
particular provision. Indeed, the legislators do not deal with
the specific controversies. When conflicting interests arise or
defect appears from the language of the statute, the court by
consideration of the legislative intent must supplement the
written word with ‘force and life’. See, the observation of
Lord Denning in Seaford Court Estate Ltd. v. Asher, (1949) 2
KB 481, 498.”
14.The decision in Pushpa Devi supports the view which is
being taken here. That judgment does say that sometimes meaning
of a word can change depending on context. But at the same time
it clearly shows that this flexibility is not unlimited. The basic rule
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still remains that the definition given in the Act will normally
apply. Only when there is real need the Court may read it
differently. It is also important to understand what that judgment
does not permit the Court to change the main purpose of a section.
It does not say that if one party finds difficulty then the Court can
give a new meaning to clear words. The idea of context is to help
understanding the provision better. It is not meant to replace the
provision itself. The Court can adjust meaning a little but cannot
turn it into something else.
15.Now coming to Section 50 when it is read carefully
everything becomes quite clear. The whole section is about
recovery of money due to an employee. It speaks of money due to
employee. It allows employee to apply. It allows another person
only if that person is authorised by the employee. So the focus is
on employee and his dues. The petitioner is trying to say that in
this context, the word “employee” should be read as including
“Union”. But when the section itself repeatedly refers to employee
and even adds a condition of written authority then such reading
does not fit. In fact the context clearly shows the opposite. It shows
that the legislature wanted to keep this remedy limited to
employee and those directly authorised by him. It must also be
noted that Section 50 is not a general recovery or execution
provision for all types of claims. It is a special provision, made for
a specific purpose. It gives a remedy in a defined situation. If it is
treated as a general provision then its careful wording will lose
meaning. So the object of Section 50 is to help an employee
recover money already found due to him. The remedy is not open
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ended. Because of this the Court also has to act within these limits.
The Court cannot expand the section just because it may appear
useful in a given case. Therefore, when the principle from
Pushpa
Devi
is properly applied it becomes clear that context in this case
does not help the petitioner. Instead, it supports the plain reading
of the section. The definition cannot be stretched to include Union.
The limits fixed by the law must be respected.
16.The petitioner has argued that if the Union is not allowed to
use Section 50 then it will be left without any remedy. It is also
said that since civil court jurisdiction is barred in such matters,
there is no other way to recover the amount. This argument does
create some concern at first glance. It appears that the Union may
face difficulty in getting the amount. But such difficulty by itself
cannot decide the issue. A court has to see what the law provides.
It cannot change the law because a party feels that the available
remedy is not sufficient. If the legislature has made a provision in a
particular way then that method must be followed. The court
cannot open a new path just because the existing path is difficult.
Law sometimes may not cover every situation. But that does not
mean the court can add new provisions.
17.If the legislature wanted the Union also to apply under
Section 50 in its own capacity it could have clearly said so. The
absence of such a provision cannot be treated as a mistake which
the court must correct. The court’s role is to interpret what is
written, not to fill what is not written. Therefore, even if the Union
finds itself in a difficult position, that alone cannot justify
expanding the scope of Section 50.
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18.The learned Advocate for the petitioner–Union has placed
some papers on record. These include a list like J-Forms showing
how much money workers paid in those years. The argument is
that since workers paid these amounts it means they allowed the
Union to act for them. Along with this one letter is also filed. That
letter has list of members and amounts cut from them. It also
mentions one cheque given by the employer for Union fund as per
Clause 12(b) of the agreement dated 2 February 2006. From all
this, the petitioner is trying to show that workers had agreed and
Union has authority. When these papers are seen at first it does
appear that some deductions were actually made. It also shows
that some money was given to the Union fund. So it cannot be
denied that the settlement was followed at least partly. It gives
some support to the case that contributions were planned and even
carried out. But the issue before this Court is not only about
deduction or payment. The real question is whether the Union can
file recovery under Section 50 in its own name without proper
written authority. In my view, these documents are not enough for
that purpose. A list showing money deducted is one thing. But
written authorisation is something else. Law requires clear
permission from each employee. Just because workers are
members of Union or money was deducted earlier it cannot be
assumed that they have allowed the Union to file legal recovery for
them. There must be authorisation for this purpose. The letter and
cheque also do not change this position. They only show that at
some time employer paid money to Union fund under settlement.
This proves that arrangement existed. But it does not prove that
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workers gave authority to Union to go to Court under Section 50.
That requirement is specific in law. It cannot be guessed from past
conduct or general dealings.
19.It is also important to understand that action under Section
50 leads to recovery like land revenue. Because of this law requires
strict compliance. Written authority is kept as safeguard. It makes
sure that only proper person files case on behalf of employee. So
looking at all this these documents do support that deductions
were made and Union has some claim under settlement. But still
one important condition is not satisfied. That is written
authorisation. Without that the Union cannot be treated as
properly authorised to file recovery. Therefore, this defect remains
and cannot be ignored.
20.The Union cannot assume that it automatically represents
every employee for the purpose of recovery under Section 50.
Representation in industrial matters and authority under a specific
statutory provision are not always the same thing. The statute
makes a clear distinction. For Section 50 written authority is
necessary. Without it the Union cannot step into the position of the
employee and seek recovery.
21.If the interpretation suggested by the petitioner is accepted,
it will also disturb the structure of the Act. The Act separately
defines “employee” and “Union”. This shows that the legislature
treats them as different entities. Each has its own role. If the Union
is allowed to act as an employee under Section 50, then this
distinction will become meaningless. Such an interpretation will
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make one part of the law overlap with another in an unclear way.
It will create confusion about who can apply and under what
conditions. Courts must avoid such interpretations. Every provision
in the statute must be given its proper place and meaning. No
provision should be made redundant. Therefore, on a careful
reading, the argument of hardship cannot be accepted. The
absence of written authorisation is a serious defect. And the
interpretation suggested by the petitioner would unsettle the clear
scheme of the Act. All these factors together make it difficult to
accept the case of the petitioner.
22.For these reasons, I hold that the word “employee” in Section
50 cannot be read as including the Union in the present facts. The
petitioner has not shown any written permission from the
employees. Because of this, the Union cannot file recovery in its
own name. It has no legal capacity under this section to do so. The
order dated 21 April 2023 passed by the Industrial Court does not
show any mistake in law. It is not perverse. It is within its
jurisdiction. There is no reason for this Court to interfere.
23.Accordingly, the writ petition is dismissed. There shall be no
order as to costs.
(AMIT BORKAR, J.)
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