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2026 Supreme(Cal) 117

IN THE HIGH COURT AT CALCUTTA
SHAMPA DUTT (PAUL), J.
M/s. Century Extrusions Limited. - Petitioner
Versus 
The State of West Bengal And Ors. - Respondents
WPA 20114 of 2025
Decided On : 06-05-2026

Advocates Appeared:
For the Petitioner: Mr. Jayanta Dasgupta, Mr. Balaram Patra.
For the Respondent: Mr. N. Rakshit, Mr. Niloy Rakshit, Mr. Vivekananda Bose, Ms. Deboleena Ghosh.

A labor tribunal possesses the inherent authority to determine preliminary facts establishing its own jurisdiction, including the existence of a valid industrial dispute. Declining to adjudicate the maintainability of a reference on the ground of lack of jurisdiction constitutes a legal error.

Headnote:(A) Industrial Disputes Act, 1947 - Section 10(4) - Adjudicatory power - Jurisdiction to determine preliminary issues - Challenge to maintainability of Order of Reference - Propriety of lower judicial forum declining to examine preliminary matters - Held, a tribunal is empowered to decide preliminary facts regarding its own jurisdiction, such as the existence of an industrial dispute or the employer-employee relationship - A tribunal cannot abdicate its responsibility to determine if the matter referred constitutes a valid dispute under the statute - Refusal to exercise this jurisdiction constitutes a manifest error in law. (Paras 12, 30, 34, 35)

Facts of the case:
The petitioner challenged an order passed by a labor tribunal, which had refused to adjudicate the maintainability of an Order of Reference. The tribunal, relying on its interpretation of law, held that it lacked the jurisdiction to question a reference made by the government. The employer argued that the dispute was not a valid industrial dispute due to the lack of a proper prior demand and other issues, necessitating a preliminary hearing.

Findings of Court:
The Court held that a tribunal created by statute possesses the inherent authority to adjudicate preliminary facts upon which its jurisdiction depends. While the process of making a reference is an administrative act, the tribunal remains the final authority to decide if the subject matter constitutes a valid industrial dispute under the relevant legal framework, and it cannot erroneously decline jurisdiction.

Issues: Whether the labor tribunal has the authority to decide the maintainability of an Order of Reference as a preliminary issue and whether it was justified in declining to do so.

Ratio Decidendi: An adjudicating authority has the incidental power under the governing statute to determine jurisdictional facts. The denial of the power to examine the existence of a valid industrial dispute is contrary to established legal principles, as the tribunal must reach a definite conclusion regarding the existence of a dispute within the meaning of the Act.

Result: Impugned order set aside; matter remanded to the tribunal for fresh consideration and disposal in accordance with law.

Table of Content
1. procedural history of the dismissal and referral to labour court. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. petitioner challenges the labour court's refusal to adjudicate preliminary jurisdictional issues. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)
3. written demand is not a mandatory prerequisite for an industrial dispute. (Para 16 , 17 , 18 , 28)
4. scope of labour court jurisdiction over validity of government reference orders. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27)
5. tribunals have authority to determine their own jurisdiction regarding the existence of an industrial dispute. (Para 29 , 30 , 31 , 32 , 33 , 34)
6. impugned order set aside with direction for expeditious adjudication. (Para 35 , 36 , 37 , 38)

JUDGMENT :

SHAMPA DUTT (PAUL), J.

1. The writ application has been preferred challenging an order 17.02.2025 passed by the First Labour Court in Case No. 18 of 2023.

2. Vide the impugned order, the First Labour Court on deciding the challenge as to maintainability of the Order of Reference, relying upon several judgments, was of the view that the Labour Court has “no jurisdiction for adjudicating, the maintainability of the Order of Reference” before it made by appropriate government and the petition filed by O.P./Company dt. 27.08.2024 stood rejected. The case was fixed for further evidence.

3. The petitioner herein, being the opposite party before the Labour Court challenged the maintainability of the Order of Reference in the present case.

4. It is the order of the Labour Court that has been challenged herein and not the Order of Reference. The petitioner has stated regarding the employment of the respondent no. 3 and his misconduct, leading to the financial loss of the petitioner and as he did not mend himself, a charge sheet was issued and domestic enquiry was conducted.

5. Finally, the respondent no. 3 was dismissed from service on 08.09.2021 and by a letter dated 30.11.2021 the respondent no. 3 was directed to collect all his dues.

6. It is stated that the respondent no. 3 did not challenge the order of dismissal but approached the Deputy Labour Commissioner, Kharagpur and a conciliation proceeding was initiated, which failed. An industrial dispute on the issue of the termination of respondent no. 3 was referred to the respondent no. 2 by the respondent no. 1.

7. The petitioner has challenged the order of the Labour Court which categorically states that the Labour Court does not have the jurisdiction to adjudicate or decide as to the maintainability of the Order of Reference before it made by the appropriate Government.

8. The petitioner states that the Labour Court had the authority to consider the maintainability of the Order of Reference and as such the impugned order not being in accordance with law is liable to be set aside and the Labour Court should decide the maintainability of the Reference on merit being empowered to do so.

9. One of the grounds on which, the petitioner has challenged the impugned order is that the Labour court has erroneously opined and observed that the Labour Court has no jurisdiction for adjudicating the maintainability of the order of reference made before it by the appropriate government, while at the same time the Court rejected the petition filed by OP/ Company dated 27.08.24. Thus, it is argued that the impugned order suffers from self-contradiction and is liable to be set aside.

10. It is further stated that the impugned order is not in accordance with law as the Labour Court upon hearing the parties, decided to hear on the point of maintainability of the order of reference, first, separately as preliminary issue and fixed dates for hearing for which an application was filed by petitioner but ignoring the earlier orders in a most whimsical manner rejected the application which goes in conflict of the Court’s earlier orders and thus cannot be sustained.

11. It is further stated by the petitioner that that the legal point as to whether prior demand before the management i

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