The Court Receiver High Court, Bombay vs Mumbai Labour Union and Ors.

Headnote AI-drafted · Reviewed and approved

The Court Receiver of the Bombay High Court, appointed in a suit for dissolution of a partnership firm M/s. Ahmed Oomarbhoy, challenged the judgment and order dated 27 February 2007 passed by the Member, Industrial Court, Mumbai in Complaint (ULP) No.434/2004. The Industrial Court had allowed the complaint of unfair labour practice filed by the Mumbai Labour Union, directing payment of full wages to concerned employees from January 2002 with interest at 6% per annum, and further directing reopening of the factory and permitting workers to report for duties.

The partnership firm M/s. Ahmed Oomarbhoy was engaged in manufacturing and marketing cooking oil and edible oils under the brand 'Postman', employing over 500 workers including approximately 230 permanent workmen represented by the Union. Following a dispute among partners and filing of a dissolution suit, the Court Receiver was appointed in December 2000 and took physical possession of the factory on 3 September 2001, whereupon workers were prevented from entering the premises and wages ceased to be paid from January 2002.

The matter involved interplay between the jurisdiction of the Civil Court (through the Court Receiver) and the Industrial Court, touching upon the rights of workmen to wages and employment during pendency of dissolution proceedings and the obligations of the Court Receiver as a quasi-officer of the court towards the employees of a firm under receivership.

Catchwords: Court Receiver · partnership firm dissolution · unfair labour practice · industrial court jurisdiction · wages arrears · lockout · workmen rights · receivership · going concern sale · voluntary retirement scheme