Bombay High Court Overrules Mathadi Board's Review Orders; Upholds Statutory Limitations

The court invalidates board's actions due to absence of statutory review powers under the Mathadi Act, emphasizing adherence to procedural laws.
In a significant judgment delivered by the Bombay High Court's Nagpur Bench, the court has invalidated a series of review orders passed by the Nagpur and Wardha District Mathadi and Unprotected Labour Board. The judgment highlights the limitations of statutory authority under the Maharashtra Mathadi, Hamal and Other Manual Workers (Regulation of Employment and Welfare) Act, 1969, particularly regarding the board's power to review its own decisions.
The case, titled Valsad District Co-operative Milk Producers Union Limited v. Nagpur and Wardha District Mathadi And Unprotected Labour Board, revolved around the board's decision to review orders concerning the employment of Mathadi workers, despite the Act not conferring such powers. The court reiterated that review powers must be explicitly granted by statute and cannot be assumed or exercised without legal basis.
The conflict originated from the employment dispute where certain Mathadi workers ceased work, leading to their termination. Subsequent applications and petitions sought to challenge the termination and claim wages, leading to a protracted legal battle that underscored procedural lapses.
The judgment, authored by Justice Rajnish R. Vyas, emphasized that the power of review is not inherent and must be conferred by law. It was noted that previous orders had already settled the workers' claims, and the board's attempt to conduct de novo inquiries and impose financial liabilities on the employer was beyond its statutory mandate.
The court's decision underscores the importance of adhering to legal frameworks and the limitations of administrative bodies in exercising powers not granted by statute. It directed the Mathadi Board to explore alternative employment opportunities for the affected workers within four weeks, aligning with previous court directives.
This ruling serves as a reminder to administrative bodies and stakeholders in employment law about the importance of statutory compliance and the judiciary's role in ensuring justice within legal boundaries.
Bottom Line:
Maharashtra Mathadi, Hamal and Other Manual Workers (Regulation of Employment and Welfare) Act, 1969, Section 13 - Power of review by the Board or its officers - Power of review is not inherent and must be conferred by statute - Board's action to review its own order without statutory authority deemed invalid.
Statutory provision(s): Maharashtra Mathadi, Hamal and Other Manual Workers (Regulation of Employment and Welfare) Act, 1969 - Section 13