1990 Supreme(Kar) 110
Karnataka High Court
Karur Vysya Bank Ltd., Karur - Appellant
Versus
Karur Vysya Bank Employees Union, Bangalore - Respondent
Decided On : 03-09-90
W.A. : 85 of 1989
B.C.PRABHAKAR, SHYLENDRA KUMAR, V.GOPALA GOWDA
The cause of action, wholly or in part, arising within the territories over which the jurisdiction of the court extends, is relevant in determining the jurisdiction of the High Court under Article 226(2) of the Constitution.
Headnote:
Industrial Disputes Act - Jurisdiction of High Court - Article 226(2) of the Constitution - [PAYMENT OF BONUS] - [Industrial Disputes Act, 1965, Section 10] - The court discussed the jurisdiction of the High Court under Article 226(2) of the Constitution in relation to the cause of action arising within its territorial jurisdiction. It held that the cause of action, wholly or in part, arising within the territories over which the jurisdiction of the court extends, is relevant. The court rejected the contention that the substantial part of the cause of action determines the jurisdiction of a High Court, emphasizing the importance of Article 226(2) in determining jurisdiction. The court dismissed the writ appeal based on the above interpretation.
Fact of the Case:
The appeal was filed against an order quashing an endorsement related to the payment of higher percentage of bonus for the accounting year 1981. The appellant, a bank, sought to challenge the jurisdiction of the court to entertain the petition and grant the relief sought for.
Finding of the Court:
The court held that the cause of action, wholly or in part, arising within the territories over which the jurisdiction of the court extends, is relevant in determining the jurisdiction of the High Court under Article 226(2) of the Constitution. It rejected the contention that the substantial part of the cause of action determines the jurisdiction of a High Court.
Issues: Jurisdiction of the High Court under Article 226(2) of the Constitution in relation to the cause of action arising within its territorial jurisdiction.
Ratio Decidendi: The cause of action, wholly or in part, arising within the territories over which the jurisdiction of the court extends, is relevant in determining the jurisdiction of the High Court under Article 226(2) of the Constitution.
Final Decision: The court dismissed the writ appeal and upheld the jurisdiction of the High Court under Article 226(2) of the Constitution.
( 1 ) AT the stage of admission the respondents are notified. Accordingly, they have put in appearance through their respective counsels.
( 2 ) AS the appeal involves only one question, it is admitted and heard for final disposal.
( 3 ) THIS appeal is preferred against the order dated 3rd October, 1988 passed inwrit Petition No. 16789/1987.
( 4 ) THE appellant was the second respondent in the writ petition. The first respondent was the petitioner. First respondent is a Karur Vysya Bank Employees union by its General Secretary. In the writ petition the union sought for quashing the order/endorsement dated 30th June, 1987 bearing No. L-12011/17/1986-D:iv (A) issued by the Government of India produced as Annexure-C. 4. 1. In respect of the claim made by the employees of Karur Vysya Bank employees Union for payment of higher percentage of bonus for the accounting year 1981 the Bank requested the Central Government to make a reference under Section 10 of the Industrial Disputes Act to the Central Government Industrial Tribunal cum labour Court, Bangalore. The Central Government by the aforesaid endorsement stated that the subject-matter of the Industrial Dispute was covered under the provisions of the Payment of Bonus Act, 1965, therefore, the Central Government was not inclined to refer the dispute for adjudication to a Tribunal. 4. 2. The learned Single Judge has quashed the endorsement holding that as long as the demand involves a claim for payment of higher percentage of bonus for the accounting year 1981, there will be a dispute falling under the Industrial Disputes act, therefore, there is no justification for refusing to make a reference. The learned single Judge has also negatived the contention raised by the appellant that the court has no jurisdiction to entertain the petition since the substantial portion of the dispute has arisen outside the territorial jurisdiction of this court, and within the territorial jurisdiction of the High Court of Madras, therefore, it is the High Court of Madras which alone has the jurisdiction to entertain the petition under Article 226 of the constitution; that in addition to this the Head Office of the Bank is situated in Tamil nadu and majority of the employees of the appellant are from Tamil Nadu. Accordingly, the writ petition has been allowed and the impugned endorsement has been quashed and the Central Government has been directed to make a reference.
( 5 ) PURSUANT to the aforesaid direction, it is stated that the Central Government has already made a reference to the Labour Court and thereafter it has been transferred to madras Labour Court. Therefore, it is contended on behalf of first respondent that as the reference has already been made, the appellant is not entitled to any relief in this appeal without challenging the order of reference. 5. 1. It is not possible to accept this contention. The reference is made pursuant to the order under appeal. The fact that the reference has been made, the right of appeal is not affected and if the order under appeal is not sustained the reference automatically falls. Hence, the contention of the first appellant in this regard is rejected. 5. 2. However, having regard to the contentions urged on behalf of the appellant the point that arises for consideration is as to whether this court has jurisdiction to entertain the petition and grant the relief sought for. 5. 3. The contention of the learned counsel for the appellant is that as the substantial portion of the dispute has arisen outside the territorial jurisdiction of this court inasmuch as it has arisen in the State of Tamil Nadu, it is the High Court of madras which has the justification. Whether or not the High Court of Madras has jurisdiction to entertain a petition under Article 226 of the Constitution in respect of the subject- matter in question, is not a matter for consideration by this court, and as such it need not be gone into. 5. 4. The question for consideration i