Mumbai Fire Brigade industrial body, rules Bombay High Court in plea of fireman sacked by BMC

The high court analysed various factors before concluding that the fire brigade department cannot be treated as a separate establishment but must be regarded as part of the municipal corporation, which itself qualifies as an industrial establishment for labour law purposes.

Case: ‘Termination, status of fire brigade’

• The firmen service union initially challenged the order of termination of one Devidas Lokhande, who was then assistant general secretary, in November 2017.
• The said employee was serving as a fireman in the fire brigade department when, in May 2015, a major fire occurred in Gokul Niwas buidling resulting in the death of four senior officers of the Mumbai Fire Brigade. 
• The union said that the incident occurred due to the absence of a standard operating procedure. Following media coverage of the incident, the employee, Lokhande, in his capacity as a union office bearer, gave an interview to the Mi Marathi television channel.

• Following this interview, a show-cause notice was issued against Lokhande, pointing to the allegations that he had levelled accusations of corruption against senior officers inclusing municipal commissioner.
• He was subsequently placed under suspension with effect from June 2015.
• Subsequently, a departmental inquiry was conducted, which found that Lokhande had violated the service conduct rules, and the committee concerned recommended initiation of a full-fledged departmental inquiry.
• The fire service union instituted a complaint alleging commission of unfair labour practices under the relevant rules and contended that the inquiry was neither fair nor proper.
• During the pendency of the complaint, Lokhande was dismissed from service by a November 2017 order. Following this, the complaint was amended to challenge the order of dismissal in the labour court. 

‘Matter in labour, industrial court’

• The labour court, in its January 2020 order, held that the fire brigade department is an industrial establishment within the meaning of the Industrial Employment (Standing Orders) Act.
• The court further pointed out that the inquiry conducted against the employee was not fair and proper.
• Aggrieved by this order, the municipal corporation approached the industrial court, which held that though the corporation is an industrial establishment, its fire brigade department cannot be treated as an industrial establishment. 
• The union, aggrieved by this order of the industrial court, filed the present plea.

Observation: ‘No separate personality of fire brigade’

• Even if the fire brigade is constituted before the municipal corporation, once the department is absorbed into a statutory corporation and functions under its control, its past existence loses decisive value. 
• The only thing that matters is who controls the department today, and the answer on record is the municipal corporation.
• A separate budget line does not automatically translate into financial autonomy. 
• The functioning of the fire brigade cannot be viewed in isolation, and its duties are closely connected with several other departments of the corporation.
• The fire brigade operates as part of a larger municipal system rather than as a standalone industrial unit.
• The contention that fire brigade officers are not transferable to other departments does not establish independence, as specialised departments often maintain dedicated personnel due to technical skills and safety requirements.
• When the various factors are placed side by side, it is found that there is no separate legal personality of the fire brigade department. 

• The activities of the department are directed towards fulfilling municipal obligations rather than running an independent enterprise.
• The industrial court’s order of September 2021 is set aside to the extent it holds that the fire brigade department of the municipal corporation is not an industrial establishment.

‘Independence of department’

• Where the management claims that units are genuinely independent, the burden lies on it to produce the best evidence because the relevant facts are within its knowledge.
• It is important to examine the broader statutory framework, administrative control, financial structure, functional relationship with other municipal departments, and the manner in which the municipal corporation itself treats the department. 
• The focus must remain on substance and not on the labels of the departments. 
• If a department truly operates under an independent management regime, there would ordinarily be evidence placed on record that demonstrates separate control, separate disciplinary authority and independent policy formulation.
• A department may remain fully integrated within an organisation even when its employees perform specialised roles. 

‘Corporation, fire brigade interdependent’

• Appearing for the fire service union, advocate Neeta Karnik argued that the industrial court was in error in finding that the fire brigade department of the municipal corporation does not constitute an industrial establishment within the meaning of the Industrial Employment (Standing Orders) Act, 1946. 
• Karnik pointed out that the fire brigade department should be falling under the definition of an industrial establishment, considering the factual background and the statutory framework governing the parties.
• It was contended that the industrial court failed to properly appreciate the scheme of the Mumbai Municipal Corporation Act, 1888, which demonstrates that the fire brigade department is an integral component of the said corporation and has no independent legal existence.
• She further added that conversely, the municipal corporation cannot effectively discharge its statutory obligations under the Mumbai Municipal Corporation Act, 1888, in the absence of the fire brigade department.
• She emphasised that where there exists unity of employment, control, administration and ownership, coupled with functional integrality, the establishment must be treated as a single industrial establishment and all departments under the same constitute parts of the same unit. 
• She also pointed out that the nature of the work of the fire brigade department and said that drivers employed in this department perform not merely driving duties but are also engaged in pumping operations connected with water supply. 

‘Separate establishment’

• Representing the municipal corporation, advocate B D Birajdar submitted that the Mumbai Fire Brigade, which existed even before the establishment of the municipal corporation, constitutes a separate establishment under his control. 
• It was contended that officers of the fire brigade are not transferable to other departments. 
• He further submitted that the department does not operate any workshop where articles are produced, adapted or manufactured and hence cannot be treated as an industrial establishment.