SUPREME COURT OF INDIA
M.R. SHAH, V. NAGARATHNA, JJ.
V.G. Jagdishan – Appellant
Versus
M/s. Indofos Industries Limited – Respondent
Civil Appeal No. 2976 of 2022, Special Leave Petition (C) No. 12511 of 2016
Decided On : 19-04-2022
Territorial Jurisdiction - Labour Court - [JURISDICTION] - [Industrial Dispute Act, 1947, Section 33C(2)] - The court discussed the territorial jurisdiction of the Labour Court in deciding a case related to the termination of a workman's services. It held that the Labour Court in the area where the workman was employed and where the cause of action arose would have territorial jurisdiction. The court referred to the decision in Eastern Coalfields Ltd. and Others vs. Kalyan Banerjee, (2008) 3 SCC 456 to support its finding.
Fact of the Case:
The workman's services were terminated at Ghaziabad, and he shifted to Delhi where he sent a demand notice challenging his termination. The dispute arose as to whether the Labour Court at Delhi or Ghaziabad had territorial jurisdiction to try the case.
Finding of the Court:
The court found that the Labour Court at Ghaziabad had territorial jurisdiction to decide the case, as the workman was employed, working, and terminated at Ghaziabad. Sending a demand notice from Delhi did not confer territorial jurisdiction to the Labour Court at Delhi.
Issues: The main issue was whether the Labour Court at Delhi or Ghaziabad had territorial jurisdiction to decide the case.
Ratio Decidendi: The court held that the Labour Court in the area where the workman was employed and where the cause of action arose would have territorial jurisdiction, as established in the decision of Eastern Coalfields Ltd. and Others vs. Kalyan Banerjee, (2008) 3 SCC 456.
Final Decision: The appeal was dismissed, and the court held that the Labour Court at Ghaziabad had territorial jurisdiction to decide the case.
JUDGMENT :
M.R. SHAH, J.
1. Leave granted.
2. Feeling aggrieved and dissatisfied with impugned judgment and order dated 06.07.2015 passed by the High Court of Delhi at New Delhi in Letters Patent Appeal No. 412/2015, by which the High Court has dismissed the said appeal preferred by the appellant herein- workman and it is held that the Labour Court at Delhi would have no jurisdiction to try the case and that the Labour Court at Ghaziabad would have jurisdiction to try the complaint/ case, the workman has preferred the present appeal.
3. The dispute in the present appeal is in a very narrow compass. The appellant herein- workman was working as a driver at Ghaziabad. He was employed at Ghaziabad and was also working at Ghaziabad. His services were terminated at Ghaziabad. Subsequent to his termination, the workman shifted to Delhi. He sent a demand notice challenging his termination to the head office at Delhi. Thereafter, he filed a claim before the Conciliation Officer at Delhi. Before the Labour Court, Delhi, the Management-respondent herein raised the objection about maintainability of proceedings at Delhi. It was also pointed out that the workman had already raised the same dispute before the Deputy Labour Commissioner, Ghaziabad. The Labour Commissioner, Delhi proceeded further with the complaint/conciliation proceedings. The dispute was referred to the Labour Court, Delhi. Before the Labour Court, respondent-management raised a preliminary objection that the Labour Court, Delhi had no territorial jurisdiction since the workman was appointed at Ghaziabad; he was working in the factory of management-respondent herein at Ghaziabad and his services were also retrenched at Ghaziabad. It was the case on behalf of the workman that as the demand notice was served at Head Office at Delhi, it can be said that the dispute has arisen giving rise to substantial cause of action at Delhi. Therefore, it was the case on behalf of the workman that the Labour Court at Delhi has territorial jurisdiction to try the case.
3.1 The Labour Court vide award dated 18.04.2006 held the preliminary issue in favour of the management and held that the Labour Court at Delhi has no territorial jurisdiction to decide the case/complaint/reference. The Labour Court held that merely because the Corporate Office of the management was at Delhi the same will not vest the Labour Court, Delhi with territorial jurisdiction. The Labour Court held that as the cause of action has arisen at Ghaziabad, the Court at Ghaziabad alone had the jurisdiction to try the case.
3.2 Feeling aggrieved and dissatisfied with the award/order passed by the Labour Court holding that the Labour Court, Delhi has no territorial jurisdiction to try the case, the workman preferred the writ petition before the learned Single Judge of the High Court. The learned Single Judge dismissed the said writ petition vide order dated 09.04.2015. The Letters Patent Appeal (LPA) against the order passed by the learned Single Judge has been dismissed by the Division Bench of the High Court by the impugned judgment and order. Hence, the workman has preferred the present appeal.
4. Ms. V. Mohana, learned Senior Advocate appearing on behalf of the appellant herein- workman has vehemently submitted that in the present case it cannot be said that there is a total lack of jurisdiction in the Labour Court, Delhi. It is submitted that as the Head Office, where the demand notice was sent was at Delhi and the demand notice was served from Delhi where the workman was staying after the termination, it can be said that a part cause of action has arisen in Delhi. It is submitted that when a part of the cause of action has arisen in Delhi, the Court at Delhi would have territorial jurisdiction. Reliance is placed on the decisions of this Court in the cases of Nandram vs. Garware Polyster Limited, (2016) 6 SCC 290, Bikash Bhushan Ghosh and Others vs. Novartis India Ltd. and Another, (2007) 5 SCC 591 and Singareni Collieries Co.
The main legal point established in the judgment is that the Labour Court in the area where the workman was employed and where the cause of action arose would have territorial jurisdiction, as suppor....
Whenever any proceedings are filed before any Authority or Court and if one of party were to raise an objection as regards pecuniary jurisdiction or territorial jurisdiction, said Court could decide ....
The Labour Court at Chandigarh has jurisdiction to adjudicate the termination claim as the decision to terminate was made at the head office in Chandigarh, establishing part of the cause of action th....
The situs of employment is an important factor which determines the jurisdiction. The cause of action is to be determined by applying the principle as enumerated in Code of Civil Procedure, 1908. The....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.