JUDGMENT
N.J. Pandya, J.
1. The Petitioners are the accused in the Criminal Complaint (ULP) No. 25 of 1993 filed under Section 48(1) of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (hereinafter referred to as “the MRTU and PULP Act”).
2. This was preceded by a Complaint (ULP) No. 470 of 1993 under Section 28 of the said MRTU and PULP Act against Petitioner No. 15 i.e. Original Accused No. 15 of the impugned complaint. It may be noted here that in the said earlier complaint (PULP) No. 470 of 1993, only the said Petitioner No. 15 is joined as solitary accused. However, he has been so joined as Bharati Sahakari Bank Ltd., and not in the manner joined in the subsequent complaint by its General Manager Shri Babanrao Laxmari Pokale. This distinction is to be borne in mind in relation to the rival submissions which are now being considered.
3. In view of these two complaints filed one after another, for the sake of convenience, with reference to the earlier complaint, Petitioner No. 15 will have to be referred to in a manner separate than the reference to accused of the original complaint i.e. first complaint. Accordingly, wherever there is an action in relation to the present Petition, Petitioner No. 15 would be referred to as Petitioner No. 15 while with reference to the original complaint, it would be referred to as the Bank or as the Accused Bank.
4. Unfair Labour Practices related to the appointment of different posts, i.e. eight were appointed as Clerks and one as Peon. The grievance was that it is in contravention of the various provisions and agreements of Bank employees and, therefore, there is unfair labour practice as alleged in the first complaint.
5. Interim order was obtained in the complaint, and the order passed on 25th August, 1993 was served on the General Manager of the Bank on 26th August, 1993.
6. On and after 1st September, 1993, it so happened that all other persons so appointed, joined the Bank and, therefore, the second complaint in contravention of the said interim order. The interim order was issued under Section 30 of the MRTU and PULP Act, and it is in contravention of the provisions of Section 48 of the said Act. Now, so far as the power of the Industrial Labour Court, under Section 30 of the MRTU and PULP Act is concerned, there is no dispute. It is also an admitted position that the order issued by way of interim relief was in accordance with law under the provisions of Section 30 sub-clause 2 of the MRTU and PULP Act which reads as under :
30(2). In any proceeding before it under this Act, the Court may pass such interim order (including any temporary relief or restraining order ) as it deems just and proper (including directions to the person to withdraw temporarily the practice complained of, which is an issue in such proceeding), pending final decision :
Provided that, the Court may, on an application in that behalf, review any interim order passed by it.
7. In the first complaint, the prayer by way, of an interim relief was that the Respondent may be directed not to recruit new employees without following provisions of B.I.R. Act. The order passed by the Trial Court reads as under :
Heard the Learned Advocate for the Complainant. Respondents are directed not to recruit any employees till next date. I am satisfied that urgent process be allowed.
This has been taken from page 26. So far as the prayer is concerned, it is taken from page 23 of the Petition.
8. It. may be mentioned here that, as per page 27, there was a separate application for interim relief and prayer Clause (b) in paragraph 3 thereof, on the aforesaid terms, was specifically made. Though there are other reliefs in clauses (c) and (d) by the said separate application, only interim order came to be passed as quoted above.
9. Alleging that it is this interim order which has been violated the second complaint came to be filed under Section 48(1) of the MRTU and PULP Act. Section 48(1) of the MRTU and PULP Act reads as follows :
48(1) Any persons who fails to comply with any order of the Court under Clause (b) of Sub-section (1) or Sub-section (2) of Section 30 of this Act shall, on conviction, be punished with imprisonment which may extent to three months or with fine which may extend to five thousand rupees.
When Section 48(1) is read in conjunction with Section 30(2), the previous position to understand mean that the persons who are under orders of this Court if they violate the same or commit any breach of it, they shall be answerable under Sub-section (1) of the Act.
10. The controversy, in the instant case, is with regard to Petitioners Nos. 1 to 14, who are Directors of the Company. Factually, they are not party accused to the original complaint, but in the second complaint, all of them have been joined in the capacity as Directors. A copy of this complaint is to be found at Exhibit “D”, from pages 42 to 50. The basis of holding them responsible, as alleged in the complaint, can be found in paragraph 2 at page 45. In the said paragraph, it has been stated that Accused Nos. 1 to 14 being the Directors (emphasis supplied) of the Accused No. 15 had knowledge of the said order immediately after it was served on Accused No. 15.
11. In paragraph 3 also again there is a reference that although the order of the Industrial Court prohibited Accused Nos. 1 to 15 from recruiting new employees and directed them to maintain status quo, the accused in collusion with each other have recruited 9 employees from 1st September, 1993. Their names are given in the said paragraph No. 3.
12. In Paragraph 4 at page 46 of the Petition, again it is to be found that Accused Nos. 1 to 15 knowing that they were acting in contravention of the order of the Industrial Court, have recruited these employees in direct violation of the Industrial Court’s Order.
13. The liability of Accused Nos. 1 to 14 in the second complaint, who are the Petitioners in this Petition, was solely on the basis that they, being the Directors of the Company – Petitioner No. 15 probably, were knowing well that they were acting in contravention of the order of the Industrial Court.
14. The question is therefore, whether Petitioners Nos. 1 to 14 could be attributed with knowledge of the said order when they are not parties to the first complaint. It is not the case of Respondent No. 1/ Complainant that within 14 days the petitioners were served with the copy of the said order. On the contrary, the case of Respondent No. 1 is clearly that the order was served on Accused No. 15 of the second complaint through the General Manager who has also been named. It has been established that so far as Accused No. 15 of the second complaint is concerned, there is no question of claiming lack of knowledge or lack of service on them. It is an accepted position that it was served on the original Accused of the first complaint i.e. Bharati Sahakari Bank, and now it is said that the order was served upon Accused No. 15 of the second complaint. The Petition, therefore, cannot be entertained.
15. The Petition is, therefore, considered only in connection with Accused Nos. 1 to 14 of the second complaint.
16. Looking to the relevant Section 48(1) of the said Act, as quoted above, it clearly indicates that a person can be convicted if a person is shown to have failed to comply with any order of the Court. This would presuppose that there was an order against that person. As per the record, there was an order against the Bank and Bank only. It cannot be said that there is an order against Petitioners Nos. 1 to 14.
17. Unless, therefore, it can be established that Accused Nos. 1 to 14 are to be held liable because they are the Directors of the Company or that the orders were against them, in my opinion, there cannot be any question of they being held responsible criminally.
18. In the said MRTU and PULP Act, there is no provision which makes the Directors of a Company liable for the act of the Company in relation to a provision under Section MRTU and PULP Act. There is no statutory provision of deeming fictions which will operate against them.
19. Such deeming fictions are not unknown to law. In view of the myriad activities of earning and business establishment and over all complex structure of the methods of earning and producing wealth, time and again, the legislature has to resort to the said deeming fictions to fasten either criminality or civil liability when the liability has given recognition to an artificial person like the Company or body corporate which always acts through living beings. Such deeming fictions can be found under Section 32 of the Industrial Act, 1947, see Section 141 of the Negotiable Instruments Act, 1881.
20. As stated above, there is no deeming fiction in MRTU and PULP Act. In this background, an attempt was made by the Learned Advocate appearing for the original Complainant/Respondent No. 1 that to oppose the petition by referring to the judgment of Justice Chapalgaonkar, the learned Judge of this High Court in the case of Satish J. Mehta and Ors. v. The State of Maharashtra and Anr. 1991 63 F.L.R. 908 : 1991 II Lab. L. N. 794 : 1991 II C.L.R. 547 the learned Judge has come to the conclusion that the Section 48 can cover the case wherein not the Company but an individual may be guilty of non-compliance of an order of the Court and, therefore, a blanket proposition that in each and every case involving Company its Directors must be in the array of the Accused need be accepted. About this broad proposition of law, there may not be for the present much of a quarrel. However, when a person is held to be liable under the criminal law, it presupposes that he has committed breach of an order or a statutory provision to his knowledge but for that there cannot be any willful disobedience.
21. In the instant case, inter alia, it is stated that if Accused Nos. 1 to 14, on the strength of they being the Directors, are to be held responsible, a notice served on the Bank, should be considered enough service so as to attribute the knowledge of Accused/Petitioners Nos. 1 to 14 to the extent of they being liable under Section 48 of the Act.
22. In my opinion, such deeming fiction in the absence of the statutory provision, in that regard, cannot be read into statute. What is held by my learned brother Chapalgaonkar, J. with reference to Subsections 1 and 2 of Section 30 of the Act is that there can be orders against a person who is not party to the complaint, and in that event, there can be a complaint of breach of order against that person. Apart this fact situation, if it is so made out from the complaint, there cannot be any dispute. This observation of my learned brother J. finds place in paragraph 11 page 912 of the said Report. The case before the learned Judge, as noted in paragraph 12, is that in the complaint it was alleged that the Respondents (accused/petitioner) are responsible to implement the orders of the Court. Based on this, the learned Judge has made aforesaid observations and arrived at the aforesaid conclusion.
23. In this background, when the impugned complaint is taken note of except, for the fact that the Petitioners are Directors, nothing else is alleged against them.
24. Factually also, so far as the Petitioners are concerned, it may be stated here that the orders were passed on 25th August, 1993 while the appointment orders were issued on 2nd July, 1993 as per page 51. No doubt, they have to take effect from 1st September, 1993. Though the orders were issued prior to the issuance of interim relief but they were to take effect after the interim relief was granted.
25. In this background, so far as the Petitioners are concerned, except for the fact that they happened to be the Directors of the Company, there is no question of they having the knowledge of the order passed by way of interim relief in the first complaint and, therefore, the act on their part cannot be related to the so called knowledge when it was sought to be imputed only on the strength of they being Directors. Certainly this cannot be accepted.
26. There are three decisions relied by the Petitioners. They are (i) Municipal Corporation of Delhi v. Ram Kishan Rohtagi under the provisions of Prevention of Food Adulteration Act, (ii) Sham Sunder v. State of Haryana under the provisions of Essential Commodities Act, and (iii) Judgment Today 1998 (3) SC 584 under the provisions of Drugs and Cosmetics Act. In all 3 cases, it is to be noticed that the original accused/petitioners were said to be held liable and proceeded against criminal law only on the strength of they being Directors. The words used are “they are Directors as such”. In the instant case, it is alleged that they being the Directors, (emphasis supplied)* they are liable. No doubt, there was possibility of the Respondents making out a case conflicting the decision, different judgments of this Court. In this regard, the decision given in the case of Dipak Ray & Ors. v. Mafatlal Engineering Employees Union 1995 I. CLR 200 : 1995 (70) F.L.R. 593 (Bom.) by my learned brother Justice B.N. Srikrishna, and the judgment of learned brother Justice Chapalgaonkar in the case of satish J. Metha and Ors., may be read together. These two judgments may be dealt with in the light of the Judgment given by Justice Sirpurkar (Nagpur Bench) in the case of M.R. Paul, Vice-Chairman and Managing Director of Maharashtra State Road Transport Corporation and Anr. v. Member, Industrial Court, Amravati and Anr. Both these judgments were before the Learned Judge.
27. Needless to say that Justice Srikrishna in Dipak’s case, clearly held that unless a person against whom there is an order, is a party to the complaint, he cannot be held responsible. Justice Chapalgaonkar has said in his report that a person, who is not a party to the complaint, can still be answerable. It means if there is an order against a person, he has to be held responsible atleast for answering the complaint.
28. I do not see any conflict between the two. In any case, Justice Sirpurkar was not very much concerned with this because in paras 23 and 24 of the Report, he has come to the conclusion that as the judgment of Justice Chapalgaonkar, which was earlier in point of time, was not brought to the notice of Justice Srikrishna, the said judgment becomes per incuriam and, therefore, the learned Judge did not refer the matter to the larger Bench.
29. Here also in the alternative if at all, I do not agree with the view taken by Justice Chapalgaonkar, I may refer the matter to the larger Bench. I would have certainly done so provided I disagreed with him. In my mind, even Justice Sirpurkar’s judgment, as recorded in Paiil’s case, should not come in the way of conclusion which 1 am arriving because there he has observed that it cannot, therefore, be held that the two persons before him were not having proper notice and were not parties to the present complaint. This is the last portion of paragraph 14 of the Report.
30. Further, this matter was carried before the Supreme Court and judgment came to be set aside. It is reported in M.R. Patil Vice-Chairman and Managing Director of Maharashtra State Road Transport Corporation and Anr. v. Member, Industrial Court, Amravaii and Anr. The learned Advocate appearing for Respondent No. 1 is right pointing out that our judgment is quashed and set aside on the ground that the trade union which filed the complaint, is not registered union, and it would certainly be fatal to the complaint. However, in para 18 at page 434 of the Report, it is clearly indicated that as the discussion carried by them is sufficient to quash the impugned prosecution and further indicated that they need not discuss the other patent infirmities relating to the procedure adopted by the Labour Court in dealing with the complaint and to the rejection of the indefensible contention raised on behalf of Appellant No. 1 about the maintainability of the prosecution in view of Section 197 of Criminal Procedure Code.
31. The Appellant before the Supreme Court, Shri M.R. Patil was admittedly a public servant holding the post of the Vice-Chairman-cum-Managing Director of Maharashtra State Road Transport Corporation. So far as the requirement of the complaint is concerned, he was party joined before the Trial Court in the aforesaid capacity. However, it being the matter relating to the public servant, the provisions of Section 197 of the Criminal Procedure Code would clearly be applicable. The question is whether he was party to the original proceeding where the orders came to be passed.
32. The net result is, therefore, that the complaint of breach can be filed against the person to whom the order is served. Unless it is shown that the persons, who were allegedly committed breach of an order, were served with the order and whether they are made aware of the order and, therefore, are said to be made answerable for the willful disobedience thereof, there cannot be a complaint on the basis of deeming fictions which is sought to be raised on the basis of they being Directors.
33. In my opinion, the Petition deserves to be allowed only against Petitioners Nos. 1 to 14 and, accordingly, it is allowed. Rule is made absolute accordingly. So far as Petitioner No. 15 is concerned, the Petition is rejected. Rule discharged. Interim relief is vacated only against Petitioner No. 15, and for the rest, it is confirmed.