PLC 1978

1978 PLP 576 (PLC)

EMPLOYEES' UNION Versus MESSRS GRINDLAYS BANK LTD. AND ANOTHER

Jurisdiction / Court
Labour Appellate Tribunal Sind
Decided Date
Appeals Nos. KAR‑457 and KAR‑458 of 1977, decided on 14th December 1977.
Honorable Judges
H. T. Raymond, Chairman`
Case Reference Summary (AEO Optimized)
Citation 1978 PLP 576 (PLC)
Forum / Court Labour Appellate Tribunal Sind
Bench Members H. T. Raymond, Chairman`
Parties EMPLOYEES' UNION Versus MESSRS GRINDLAYS BANK LTD. AND ANOTHER
Primary Law Industrial Relations Ordinance (XXIII of 1969)
💡 Quick Legal QA & Summary / سوال و جواب خلاصہ
Q1: What are the key laws and sections cited in 1978 PLP 576 (PLC)?

This judgment primarily cites: Industrial Relations Ordinance (XXIII of 1969) as referenced in Pakistani case law index.

Q2: Which judicial bench decided the case 1978 PLP 576 (PLC)?

The case was heard and decided by the Labour Appellate Tribunal Sind bench comprising: H. T. Raymond, Chairman`.

Q3: What is the official citation format for this judgment on Pakistan Law Portal?

Cite this legal precedent as: 1978 PLP 576 (PLC) (EMPLOYEES' UNION Versus MESSRS GRINDLAYS BANK LTD. AND ANOTHER). Read the full summary and cross-referenced laws free on Pakistan Law Portal.

Laws Cited

Industrial Relations Ordinance (XXIII of 1969)

Representation

  • Date of hearing: 14th December 1977.
  • 4. In Appeal No. 457/77, Mr. Hameed Siddiqi, has mentioned in the preamble to in addition section 37(3) of the Industrial Relations Ordinance, 1969, section 38(3‑A) of the same Industrial Relations Ordinance, and has submitted that if this Appeal does not lie then, this matter may be treated as Revision Application. His main grievance against the impugned order of the Lower Court is that this Court in deciding his interim application under section 45 of the industrial Relations Ordinance, 1969, has as it were, disposed of his main petition under section 34, thereby deciding the whole case. I find myself unable to accept this contention of the learned Advocate appearing on behalf of the Employees' Union. It seems to me that the Lower Court in rejecting the Union's application under section 45 of the Industrial Relations Ordinance, 1969, has proceeded on the correct lines and has given good and sound reasons for reaching its conclusion, that application under section 45 is premature and is not maintainable. Besides, it has been pointed out by Mr. M. .A,,. Khan appearing on behalf of the Bank that in the first place, no appeal lies from an order under section 45 of Industrial Relations Ordinance, 1969, and secondly if this Appeal be treated as a Revision application, the relief sought by the applicant Union in this matter is not maintainable. Mr. Khan has pointed out that before a propitiatory order can be passed under section 45(2) of the Industrial Relations Ordinance, 1969, there must be an Industrial Dispute in existence, an Award and then an appeal against it. He emphasised that section 34 proceedings are not an Industrial dispute. Section 2(1‑b) of the Industrial Relations Ordinance, 1969, defines the `Lock‑out' and although it contains the words "the suspension wholly or partly of work by an employer", such suspension must necessarily occur in connection with an Industrial Dispute. Mr. Khan submitted that even the subsequent words defining lock‑out appearing after the words "or" are to be read in relation to an industrial dispute. Hence, the judgment of the Court below holding the application under section 45 to be premature is unassailable for upto now, not a single worker or employee of the Bank has been reduced or retrenched or had his terms and conditions of employment altered in any manner whatsoever. It is further pointed out by Mr. Khan that the act of the Management in setting up the C. P. U. and in revising their rules, relating to Savings and Current Accounts is the prerogative of the Bank and, as it relates to policy, a matter exclusively within the discretion of the Bank. He also submitted that the C. P. U. was set up on 2‑7‑1975, so that the Union waited for more than 2 years before taking the Bank to Court on this point. On this first Appeal No. KAR‑457/77, then, I am of the view that no grounds have been made out for interfering with the order of the Court below and that, therefore, Appeal No. 457/77 must stand rejected.

Headnotes / Summary

‑‑ S. 45‑Scope‑Prayer for restraining employer to resort to alleged illegal lock‑out‑Rejected‑Court arriving at conclusion that alleged lock‑out did not exist‑Further observations by Court directing employer not to embark upon a particular business scheme, in circumstances, held, beyond scope and jurisdiction of Court. The petitioner‑Union alleged that due to introduction of a revised scheme deposits with the respondent‑Bank the clients closed their accounts resulting in suspension of wholly or partly of work in the Bank thus amounting to a lock‑out. The Union prayed for an interlocutory order restraining the Bank to resort to such alleged lock‑out under section 45 of the Industrial Relations Ordinance, 1969. The Labour Court came to the conclusion that the revised scheme of the Bank did not amount to lock‑out and as such there being in fact no lock‑out rejected the prayer but further observed that "the respondent‑Bank would not suspend the work in a manner as to enable them to terminate or to do away with the employment of the employees after reducing the number of accounts holders during pendency of this case ...under S. 34 of the Industrial Relations Ordinance, 1969." It was held by Labour Appellate Tribunal in appeal that such observations by the Labour Court, in the circumstances, regarding future actions by the Bank, were not proper hence were deleted, Hameed Siddiqi for the Union. M. A. Khan for the Management.'

Judgment & Decree

Hameed Siddiqi for the Union. M. A. Khan for the Management.' Date of hearing: 14th December 1977. This judgment will dispose of two Appeals bearing Nos. 'KAR‑457/77 and KAR‑458, both directed against an order passed by the learned Presiding Officer, Sind Labour Court No. V, Karachi, dated 31‑10‑1977, while disposing of an interlocutory application under section 45 of the Indus trial Relations Ordinance, 1969, filed by the appellants Grindlays Bank Ltd. Employees Union against Messrs Grindlays Bank Ltd., Karachi. In Appeal No. KAR‑457, the appellant are Messrs Grindlays Bank Ltd. Employees' Union whereas in Appeal No. KAR‑458/77, it is the Bank itself that has appealed against this interlocutory order of Sind Labour Court No: V, Karachi.

2. The brief facts giving rise to this mattes are that Messrs Grindlays Bank Ltd., in July 1975, set up a Corporate Processing Unit for accounts containing Rs. 5,00,000 and more and transferred all such accounts to its Head Office in Karachi where this C. P. U. is operated. Again, in early October 1977, the Bank issued its Notice as per Annexure 'B' in Appeal No. KAR 457J77 whereby Current Accounts should in future maintain a minimum balance of Rs. 2,000 and could only be opened with an initial deposit of not less than Rs. 5,

000. In case of Savings Bank Account. it was directed that a Savings Bank Account can be opened with an initial deposit of not less than Rs. 3,000 for checking account and for Rs. 2,500 for non‑checking account but a minimum average balance of Rs. 2,000 or more must be maintained in either category of accounts. It is alleged by the appellants namely the Grindlaya Bank Ltd. Employees' Union that as a result of these changes and amendments to their rules as introduced by the Management of the Bank, several Clients closed their accounts with this Bank and the Union claimed that this resulted in suspension wholly or partly of work in the Bank; thus amounting to a 'Lock‑out'. Hence, the Union filed an application under section 34 of the Industrial Relations Ordinance, 1969, in the Sind Labour Court No. V, Karachi, praying for the enforcement of their right to the Bank continuing with its full working capacity and strength of workers and should be restrained from suspending or closing the work, partially or wholly in derogation of the provisions of the Industrial Relations Ordinance, 1969. Along with this application under section 34, the Union also presented an application under section 45 of the Industrial Relations Ordinance, 1969, wherein the prayer was to restrain the respondents Bank from commencing or continuing the acts of illegal lock‑out. The Sind Labour Court by its Order dated 31‑10‑1977, passed on this interlocutory application reached the conclusion that the respondent Bank's introduction of C. P. U. or the revision of their rules for Savings and Current Accounts did not amount to a lock‑out and hence rejected the Union's prayer under section 45 of the Industrial Relations Ordinance, 1969. However, in its concluding sentence of this impugned Order, the Lower Court stated that "the respondents would not suspend the work in a manner as to enable them to terminate or to do away with the employment of the employees or to act detrimental to the employees after reducing the number of accounts holders in C. P. U. Savings and Current Accounts during the pendency of this case." Hence, these 2 Appeals No. 457/77 by the Bank Employees' Union against the order rejecting their application under section 45 of the Industrial Relations Ordinance, 1969, and Appeal No. KAR‑458/77 by the Bank itself, praying for the deletion of this last sentence in the impugned order.

3. I have heard Mr. Hameed Siddiqi on behalf of the Grindlays Bank Ltd., Employees' Union and Mr. M. A. Khan on behalf of the Bank, in both these matters and at great length. I have also perused the Lower Court record and have carefully considered the points urged in these two Appeals.

4. In Appeal No. 457/77, Mr. Hameed Siddiqi, has mentioned in the preamble to in addition section 37(3) of the Industrial Relations Ordinance, 1969, section 38(3‑A) of the same Industrial Relations Ordinance, and has submitted that if this Appeal does not lie then, this matter may be treated as Revision Application. His main grievance against the impugned order of the Lower Court is that this Court in deciding his interim application under section 45 of the industrial Relations Ordinance, 1969, has as it were, disposed of his main petition under section 34, thereby deciding the whole case. I find myself unable to accept this contention of the learned Advocate appearing on behalf of the Employees' Union. It seems to me that the Lower Court in rejecting the Union's application under section 45 of the Industrial Relations Ordinance, 1969, has proceeded on the correct lines and has given good and sound reasons for reaching its conclusion, that application under section 45 is premature and is not maintainable. Besides, it has been pointed out by Mr. M. .A,,. Khan appearing on behalf of the Bank that in the first place, no appeal lies from an order under section 45 of Industrial Relations Ordinance, 1969, and secondly if this Appeal be treated as a Revision application, the relief sought by the applicant Union in this matter is not maintainable. Mr. Khan has pointed out that before a propitiatory order can be passed under section 45(2) of the Industrial Relations Ordinance, 1969, there must be an Industrial Dispute in existence, an Award and then an appeal against it. He emphasised that section 34 proceedings are not an Industrial dispute. Section 2(1‑b) of the Industrial Relations Ordinance, 1969, defines the `Lock‑out' and although it contains the words "the suspension wholly or partly of work by an employer", such suspension must necessarily occur in connection with an Industrial Dispute. Mr. Khan submitted that even the subsequent words defining lock‑out appearing after the words "or" are to be read in relation to an industrial dispute. Hence, the judgment of the Court below holding the application under section 45 to be premature is unassailable for upto now, not a single worker or employee of the Bank has been reduced or retrenched or had his terms and conditions of employment altered in any manner whatsoever. It is further pointed out by Mr. Khan that the act of the Management in setting up the C. P. U. and in revising their rules, relating to Savings and Current Accounts is the prerogative of the Bank and, as it relates to policy, a matter exclusively within the discretion of the Bank. He also submitted that the C. P. U. was set up on 2‑7‑1975, so that the Union waited for more than 2 years before taking the Bank to Court on this point. On this first Appeal No. KAR‑457/77, then, I am of the view that no grounds have been made out for interfering with the order of the Court below and that, therefore, Appeal No. 457/77 must stand rejected.

5. There remains the Second Appeal No. 458/77 for decision. As mentioned above, in this Appeal the Bank have asked for the deletion from the impugned order of the last sentence in this Order. In this connection, terminate or to do away with the employment of the employees or to act detrimental to the employees after reducing the number of account holders in C. P. U., Saving and Current accounts during the pendency of this case", be deleted from this Order. Petition dismissed.