IMPORTANT POINT
If the suit is based on the violation of principles of common law or constitutional provisions or on other grounds, like violation of principles of natural justice, civil court shall have jurisdiction.

Headnote:(a) Code of Civil Procedure, 1908 – Section 9 – Jurisdiction of Civil Court u/s 9 is a plenary one – Therefore any bar to entertain a suit under any statute must be laid down by it either expressly or by necessary implication. (Para 9)
        (b) Service Law – Disciplinary proceedings – Any employee charged with misconduct is entitled to a fair hearing – Principles of natural justice must be complied with – Rules laid down in the statutory rules should be followed. (Para 9)
        (2006) 4 SCC 713; 2009 (1) SCALE 284 – Relied upon.
        (c) Code of Civil Procedure, 1908 – Section 9 – Civil court being a court of plenary jurisdiction, has the jurisdiction to determine its jurisdiction upon considering the averments made in the plaint. (Para 10)
        (1968) 3 S.C.R. 662; (2005) 10 SCC 760; 2008 (8) SCALE 509 – Relied upon.
        (d) Judicial Review – Principles determining the jurisdiction of civil courts vis-à-vis industrial disputes restated. (Para 15)
        (1976) 1 SCC 496; (1859) 6 CB (NS) 336: 28 LJ CP 242: 141 ER 486 – Relied upon.
        (e) Code of Civil Procedure, 1908 – Section 9 – If a statute does not constitute a forum for enforcing the provisions, civil courts will have jurisdiction. (Para 16)
        (f) Code of Civil Procedure, 1908 – Section 9 – If the court has no jurisdiction, it cannot be conferred by an order of the court – However, maintainability of a suit where violation is alleged as regards compliance of principles of natural justice not considered so far. (Paras 17 and 20)
        (1859) 6 CB (NS) 336: 28 LJ CP 242: 141 ER 486; (2005) 7 SCC 447; (1988) 2 SCC 602; (2006) 1 SCC 61; (1995)5 SCC 75 – Relied upon.
        (g) Code of Civil Procedure, 1908 – Section 9 – A dispute arising in between an employer and employee may or may not be an industrial dispute – The dispute may be in relation to or arising out of a fundamental right of the employee, or his right under a Parliamentary Act and the Regulations framed thereunder, and/or a right arising under the provisions of the Industrial Disputes Act or the sister laws and may relate to same or similar rights or different rights, or even may be based on common law right or contractual right – The question in regard to the jurisdiction of the civil court must, therefore, be addressed having regard to the fact as to which rights or obligations are sought to be enforced. (Para 21)
        (h) Constitution of India – Article 14 – Any order passed in violation of the principles of natural justice save and except certain contingencies of cases, would be a nullity. (Para 22)
        (1985) 4 SCC 252; 1991 Supp (1) SCC 600; (1985) 3 SCC 398; (1986) 3 SCC 156 – Relied upon.
        (i) Code of Civil Procedure, 1908 – Section 9 – Only because an employee is also a workman within the meaning of ID Act, 1947, or his services are governed by Standing Order certified under 1946 Act, that does not mean that the civil court will ipso facto not have jurisdiction. (Para 23)
        (2008) 5 SCC 542 – Relied upon.
        (j) Code of Civil Procedure, 1908 – Section 9 – If the suit is based on the violation of principles of common law or constitutional provisions or on other grounds, but not violation of any statutory right, the civil court may have jurisdiction. (Para 23)
        (1969) 1 SCC 585 – Relied upon.
        (k) Service Law – Conditions of service – Where the conditions of service are governed by two statutes, the effect thereof on an order passed against an employee/ workman in violation of a rule which would attract both the statutes, an attempt shall be made to apply the principles of ‘Harmonious Construction’. (Para 24)
        (2005) 1 SCC 639; (2006)2 SCC 702 – Relied upon.
        (l) Code of Civil Procedure, 1908 – Section 9 – When there is a doubt as to whether civil court has jurisdiction to try a suit or not, it shall be presumed that it has such jurisdiction. (Para 24)
        (m) Constitution of India – Article 254 – In case of rights and obligations of the employer arising under two Parliamentary Acts, Article 254(1) is not attracted – Provisions of both the statutes must be given effect to. (Para 25)
        (2004) 9 SCC 755 – Relied upon.
        (n) Constitution of India – Article 14 – Natural Justice – Purpose of principles of natural justice is prevention of miscarriage of justice – Hence observance thereof is the pragmatic requirement of fair play in action. (Para 27)
        (o) Prospective Overruling – Well settled that the court cannot confer jurisdiction where there is none – Neither can the parties confer jurisdiction upon a court by consent – If a court decides a matter without jurisdiction the same would be nullity – The doctrine of prospective overruling shall not apply in such cases – The doctrine ordinarily applies where a statute is declared ultra vires and not in a case where the decree or order is passed by a court/tribunal in respect whereof it had no jurisdiction. (Para 30)
       Facts of the case :
        1. Reference to this Bench has been made by a Division Bench by an order dated 22.11.2007 for resolution of a purported conflict in two three-Judge’ Bench judgments in the cases of Rajasthan State Road Transport corporation & Anr. vs. Krishna Kant & Ors. [1995 (5) SCC 75] and Rajasthan SRTC & Ors. vs. Khadarmal [2006 (1) SCC 59].
        2. The purported conflict in the aforementioned two decisions centres round the jurisdiction of the civil court to entertain suits questioning orders of termination passed by the appellant - Corporation against the respondents herein. The suits were filed by the respondents, inter alia, on the premise that termination of their services was in violation of the principles of natural justice.
       Finding of the Court :
        If a statute does not constitute a forum for enforcing the provisions, civil courts will have jurisdiction.
        Only because an employee is also a workman, that does not mean that the civil court will ipso facto not have jurisdiction.
        In case of doubt about jurisdiction, it shall be presumed that civil court has such jurisdiction.
       Result : If the suit is based on the violation of principles of common law or constitutional provisions or on other grounds, like violation of principles of natural justice, civil court shall have jurisdiction.

Judgement Key Points

Key Points: - Civil Court has plenary jurisdiction and may determine its jurisdiction by examining plaint averments; bar to entertainment must be expressly or implicitly provided by statute. (!) (!) - If a dispute concerns enforcement of rights/obligations created by the Industrial Disputes Act or sister enactments like Standing Orders, the forums under the ID Act are the proper remedy; otherwise civil court may have jurisdiction. (!) (!) (!) - Violation of principles of natural justice can give civil courts jurisdiction, whereas when rights arise under statutory provisions with a barred forum, civil courts may be barred. (!) (!) (!) (!) - When two statutes govern conditions of service, harmonious construction may be needed to determine jurisdiction; if no forum is provided under one statute, civil court may adjudicate, unless the other statute provides a dedicated forum for industrial disputes. (!) (!) - In cases involving enforcement of certified Standing Orders under sister statutes, the civil court’s jurisdiction is determined by whether the dispute constitutes an industrial dispute under Section 2(k)/(2-A) and whether the statute provides a forum. (!) (!) (!) - The principle that civil courts should presume jurisdiction in doubt, and that doctrine of prospective overruling may not apply where there is no jurisdiction. (!) (!) - Where rights arise under two statutes, both must be given effect; Article 254 considerations may apply only if there is direct conflict. (!) (!)

How to determine the jurisdiction of civil courts under Section 9 CPC in relation to industrial disputes and rights created by the Industrial Disputes Act and sister enactments?

What is the role of natural justice and violation of Standing Orders in deciding whether civil courts have jurisdiction or whether remedy lies in forums created by the Industrial Disputes Act?

What are the circumstances under which civil courts retain or lose jurisdiction when rights and obligations arise under two parallel statutory regimes (two Parliamentary Acts) affecting employer-employee relations?

JUDGMENT

S.B. Sinha, J.—

1. Leave granted in Special Leave Petition (Civil) No. 22300 of 2007.

2. Reference to this Bench has been made by a Division Bench of this Court by an order dated 22.11.2007 for resolution of a purported conflict in two three-Judge’ Bench judgments of this Court in the cases of Rajasthan State Road Transport corporation & Anr. vs. Krishna Kant & Ors.1 [1995 (5) SCC 75] and Rajasthan SRTC & Ors. vs. Khadarmal2 [2006 (1) SCC 59].

3. The purported conflict in the aforementioned two decisions centres round the jurisdiction of the civil court to entertain suits questioning orders of termination passed by the appellant - Corporation against the respondents herein. The suits were filed by the respondents, inter alia, on the premise that termination of their services was in violation of the principles of natural justice.

4. As this Court in this case at this juncture is only required to lay down a principle of law, it is not necessary to state the facts of the matter in detail.

5. Appellant - Corporation, indisputably, was constituted in terms of the provisions of Road Transport Corporations Act, 1950 (for short, “the 1950 Act”). By reason of the provision of Section 4 thereof, each Corporation is a body corporate having perpetual succession and a common seal and can in its own name sue and be sued. Section 45 of the 1950 Act provides for the Regulation making power, stating:

“45. Power to make regulations.- (1) A Corporation may, with the previous sanction of the State Government, make regulations, not inconsistent with this Act and the rules made thereunder, for the administration of the affairs of the Corporation.

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-

(a) the manner in which, and the purposes for which, persons may be associated with the Board under Section 10;

(b) the time and place of meetings of the Board and the procedure to be followed in regard to transaction of business at such meetings;

(c) the conditions of appointment and service and the scales of pay of officers and other employees of the Corporation other than the Managing Director, the Chief Accounts Officer and the Financial Adviser or, as the case may be, the Chief Accounts Officer-cum-Financial Adviser;

(d) the issue of passes to the employees of the Corporation and other persons under section 19;

(e) the grant of refund in respect of unused tickets and concessional passes under section 19.”

6. Pursuant to or in furtherance of the said power, the Corporation made Regulations known as “Rajasthan State Road Transport Corporation Employees Service Regulations, 1965". Chapter V of the said Regulations provides for suspension, termination, dismissal, removal and/or compulsory retirement, etc. Indisputably, the Corporation is also an “industry” within the meaning of Section 2(j) of the Industrial Disputes Act, 1947.

7. The Parliament enacted Industrial Employment (Standing Orders) Act, 1946 (for short, “the 1946 Act”). In the year 1965, the Corporation framed its Standing Orders known as Rajasthan State Road Transport Workers and Workshop Employees Standing Orders, 1965, which were certified under the 1946 Act. The said Certified Standing Orders deal with suspension, termination, dismissal, removal and/or compulsory retirement, etc.

8. Indisputably, appellant- Corporation is a State within the meaning of Article 12 of the Constitution of India that is for the purpose of Part III and Part IV thereof.

9. The jurisdiction of a civil court is governed by Section 9 of the Code of Civil Procedure, which reads as under:

“9 - Courts to try all civil suits unless barred:-The Courts shall (subject to the provisions herein contained) have jurisdiction to try all suits of a civil nature excepting suits of which their cognizance is either expressly or impliedly barred.”

The jurisdiction of the Civil Court in terms of the aforementioned

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2009 Supreme(SC) 265

IMPORTANT POINT If the suit is based on the violation of principles of common law or constitutional provisions or on other grounds, like violation of principles of natural justice, civil court shall have jurisdiction.

How to determine the jurisdiction of civil courts under Section 9 CPC in relation to industrial disputes and rights created by the Industrial Disputes Act and sister enactments?

What is the role of natural justice and violation of Standing Orders in deciding whether civil courts have jurisdiction or whether remedy lies in forums created by the Industrial Disputes Act?

What are the circumstances under which civil courts retain or lose jurisdiction when rights and obligations arise under two parallel statutory regimes (two Parliamentary Acts) affecting employer-employee relations?

Cases Referred (22)

IMPORTANT POINT
If the suit is based on the violation of principles of common law or constitutional provisions or on other grounds, like violation of principles of natural justice, civil court shall have jurisdiction.