DIPAK RAY Vs. MAFATLAL ENGINEERING EMPLOYEES UNION

JUDGEMENT

(1.) THIS writ petition under Articles 226 and 227 of the Constitution of India is directed against an order dated 8th December, 1987, made by the Industrial Court, Thane, in Revision Application (ULP) No. 83 of 1987, under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (hereinafter referred to as the Act; ).

(2.) THE crucial issue in the present writ petition is whether a Director or Officer of a Company incorporated under the Companies, Act, 1956 can be liable for contravention of an order passed under the provisions of the Act even though such Director or Officer was not party to the proceedings in which the order was passed, despite there being no provisions in the Act imposing such vicarious penal liability on a Director or Officer of a limited Company for the default of a limited Company.

(3.) THE first petitioner is the Executive Director, the second petitioner the General Manager (Operations) and the third petitioner the Deputy Personnel Manager of a limited Company known as Mafatlal Engineering Industries Limited (hereinafter referred to as the Company ). The company was party to an Arbitration award under section 10-A of the Industrial Disputes Act, 1947 made on 17th May, 1965. Under the terms of the said award made by the arbitrator, Salim M. Merchant, the company was required to discontinue the employment of contract labour which was prohibited except in the employments specified in the said award.