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2023 Supreme(Kar) 1279

IN THE HIGH COURT OF KARNATAKA
ALOK ARADHE, ANANT RAMANATH HEGDE, JJ.
Mrs Winnifred Lewis - Appellant
Versus
M/s S G S India Private Limited - Respondent
Writ Appeal No. 1652 of 2018 (L-TER).
Decided on : 25-05-2023.

Advocates Appeared:
For the Appellant :Sri T Rajaram, Advocate.
For the Respondent:Sri B.S.Shivakumar, Advocate For Sri. Dinesh S K, Advocate.

Headnote:(A) Industrial Disputes Act, 1947 - Section 2(s) - Jurisdiction of Labour Court - The appellant was appointed by the respondent and subsequently terminated as per the contractual clause allowing termination with notice or salary in lieu thereof. The labour court ruled that the termination was not illegal and upheld the respondent's jurisdiction per the contract clause. (Paras 3, 9)

(B) Principles of Natural Justice - The termination was not considered stigmatic requiring inquiry, as it was in accordance with the contract, hence did not violate principles of natural justice. (Paras 5, 10)

Facts of the case:
The appellant's employment was terminated on 04.03.2011 after payment of two months' salary, leading to a dispute adjudicated by the labour court.

Findings of Court:
The labour court found no illegality in the termination and upheld the employment contract's jurisdiction clause.

Issues: The main issues pertained to jurisdiction concerning the termination of service and adherence to principles of natural justice regarding the termination process.

Ratio Decidendi: The court ruled that the contract's jurisdiction clause was binding and the termination was valid as per the agreed terms, without requiring prior inquiry.

Result: Appeal dismissed.

Table of Content
1. employment and termination details (Para 1 , 2 , 3 , 4)
2. arguments on jurisdiction and termination process (Para 5 , 6)
3. analysis of jurisdiction and validity of termination (Para 7 , 8 , 9 , 10)
4. conclusion: appeal dismissed based on findings (Para 11)

JUDGMENT

Mr Alok Aradhe, J. - This is an intra court appeal arising out of order dated 07.03.2018 passed by the learned Single Judge by which the writ petition preferred by the appellant has been dismissed and the award dated 14.02.2014 passed by the labour court has been affirmed.

2. The facts giving rise to filing of this appeal in nut shell are that respondent was appointed on 02.05.2005 on a consolidated pay of Rs.8,000/- per month for a period of one year. Thereafter, she was appointed as Junior Executive as well with effect from 01.05.2006.

The parties had entered into a contract dated 18.05.2006. Clause 4 of the aforesaid contract provides that services of the appellant could be terminated by the respondent either by giving two months notice or by paying two months salary in lieu thereof. In accordance with Clause 4 of the aforesaid contract, by an order dated 04.03.2011 the services of the appellant were terminated by giving her two months salary.

3. The appellant thereupon raised an industrial dispute which was referred for adjudication to the labour court. The labour court by an order dated 14.02.2014 interalia held that the appellant is a workman as defined under Section 2 (s) of the Industrial Disputes Act, 1947. The Labour Court further held that the appellant was unable to prove that her services had been terminated in an illegal manner or the order of termination of her services dated 04.03.2011 is illegal or is ab initio void. It was further held that under the terms of the contract, the appellant had agreed in case of dispute between the parties, the Court at Mumbai shall have jurisdiction, accordingly, the labour court held that it had no jurisdiction to entertain the reference. The reference was answered in the negative.

4. The appellant challenged the award dated 14.02.2014 passed by the labour court in a writ petition. Learned Single Judge by an order dated 07.03.2018 upheld the award dated 14.02.2014 passed by the labour court and dismissed the writ petition. In the aforesaid factual background, this appeal arises for our consideration.

5. Learned counsel for the appellant submitted that the labour court ought to have appreciated that it had jurisdiction to deal with the reference as the appellant was posted at Bengaluru and was rendering her services in Bengaluru. It is further submitted that order of termination dated 04.03.2011 was not preceded by an inquiry and therefore, the order of termination of service of the appellant was passed in violation of principles of natural justice. In support of the aforesaid submission, reliance has been placed on the judgment of Hon'ble the Supreme Court in M/s Patel Roadways limited , Bombay v. M/s. Prasad Trading Company reported in AIR 1992 SC 1514.

6. On the other hand, learned counsel for the respondent has supported the order passed by the learned Single Judge.

7. We have considered the submissions made on both sides.

8. It is trite law that when two Courts have jurisdiction in respect of the subject matter of the dispute, it is open for the parties to choose a forum and to confer jurisdiction on a particular court by consent. (See; Hakam Singh v. M/s Gammon (India) Ltd. , (1971) 3 SCR 314 ).

9. In the instant case, the principle place of business of respondent is Mumbai and the appellant was employed at Bengaluru. Thus, the Courts at Mumbai as well as Bengaluru had jurisdiction to deal with the dispute, however, under clause 18 of the contract of appointment dated 18.05.2006, the parties agreed to confer the jurisdiction on the Court at Mumbai. Therefore, the labour court at Bengaluru had no jurisdiction to deal with the reference.

10. It is pertinent to note that the labour court had framed an issu

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