1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.8058 OF 2008 Kolhapur, Municipal Corporation. ...Petitioner. Vs. Mahanagar Palika Karmachari Sangh. ...Respondent. .... Mr. S.S. Patwardhan for the Petitioner. Mr. M.S. Topkar for the Respondent. ..... CORAM : DR. D.Y.CHANDRACHUD, J. December 16, 2008. P.C. Rule, by consent of Counsel returnable forthwith. Counsel appearing on behalf of the Respondents waive service. With the consent of the Learned Counsel and at their request taken up for hearing and final disposal. 2. In a complaint of unfair labour practices instituted by the Respondent under Items 2, 6, 9 and 10 of Schedule IV to the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, the Industrial Court at Kolhapur has, by 2 an interim direction, injuncted the Municipal Corporation from giving effect to an e-Governance Agreement dated 14th May 2008 and has directed the Municipal Corporation “to continue concerned workers who are going to be affected in employment”. 3. On 14th May 2008, the Petitioner entered into an agreement with HCL Info Systems Ltd. to convert the processes of the Municipal Corporation from the manual to the electronic form. The agreement envisages the provision of an I.T. Infrastructure Services Centre for installing, commencing, operating and to provide for ERP based solutions for essential municipal backend functions on public-private partnership. The agreement is on a build, operate and transfer basis. 4. In the Written Statement that has been filed by the Petitioner, it has been specifically stated that the implementation of the project would not adversely affect any of the employees on the establishment of the Municipal Corporation. The Industrial Court noted that there are 4779 sanctioned posts, out of which 3585 posts 3 have been filled up and 1594 posts are vacant. The vacancies existed on account of an embargo imposed by the State Government. The Industrial Court injuncted the Municipal Corporation from terminating the services of the employees concerned and from giving effect to the e-Governance agreement. 5. On behalf of the Petitioner, it has been submitted that the injunction that has been granted by the Industrial Court is manifestly contrary to law. The Municipal Corporation proposes to implement e- governance with a view to convert the age old technique of manual preservation of records into the electronic form. Learned Counsel submitted that the implementation of the e-Governance Agreement would result in an open, transparent and better provision of services to the community. The Municipal Corporation has categorically stated in paragraph 18 of its Written Statement that implementation of the project will not affect any of the employees. Moreover, Learned Counsel submitted that even if the Municipal Corporation wants to propose a reduction of the number of posts, as a statutory body, it would be bound to follow due process of law before any such 4 proposal can be implemented. Hence, it is submitted that the existing employees have no apprehension of termination and so far as a reduction of posts is concerned, the Municipal Corporation is duty bound to fulfill all legal requirements which hold the field. 6. On the other hand, it is urged on behalf of the Respondent Union that the agreement that has now been entered into by the Municipal Corporation with HCL Info Systems Ltd., would lead to a reduction of posts; a termination of the services of existing employees and many of the existing employees would be in a position to render services to improve e-governance on the basis of their qualifications. 7. In so far as the apprehension of an adverse effect on the existing body of employees is concerned, the assurance that has been meted out in paragraph 18 of the Written Statement filed before the Industrial Court has been reiterated in the course of the proceedings by Learned Counsel for Municipal Corporation, on instructions. The Court has been categorically informed on 5 instructions that no existing employees would be affected as a result of the implementation of the e-Governance Agreement. Moreover, it is also stated that a reduction of posts cannot be brought about unilaterally by the Municipal Corporation without the sanction of the State Government in accordance with the provisions of the Bombay Provincial Municipal Corporation Act, 1949 or, for that matter, without fulfilling the requirements of law. In view of the aforesaid statement, it is apparent that there was no warrant for the grant of an injunctive order by the Industrial Court. The Industrial Court, particularly at the interlocutory stage ought to have been careful while passing an order, the effect of which would be to obstruct the conversion of the age old process of record keeping and transactions into the modern electronic form. The need for e-governance cannot be disputed. E- Governance is liable to promote a sense of transparency and, hopefully, will reduce levels of corruption in public bodies. The Court ought not in such matters of policy to interfere unless a clear case is made out. In the present case there is no warrant for interference at the interlocutory stage. In the circumstances, the impugned order of the Industrial Court dated 28th July 2008 is manifestly unsustainable 6 and would have to be set aside. The petition shall accordingly stand disposed of by setting aside the impugned order of the Industrial Court dated 28th July 2008. While doing so, the assurance which has been placed on record and in the submissions of the Learned Counsel for the Municipal Corporation is accepted. There shall be no order as to costs. .....