The function of the Industrial Court (the Court) in reference under s. 20 of the Act has been stated by the Federal Court in the of case of Goon Kwee Phoy v. J & P Coats (M) Sdn. Bhd. 1981 MarsdenLR 117 , where at p. 136, Raja Azlan CJ elaborated as follows:

... where representations are made and are referred to the Industrial Court for enquiry, it is the duty of the Court to determine whether the termination or dismissal is with or without just cause or excuse. If the employer chooses to give a reason for the action taken by him, the duty of the Industrial Court will be to enquire whether that reason has or has not been made out. If it finds as a fact that it has not been proven then the inevitable conclusion must be that the termination or dismissal was with or without just cause or excuse.

The proper enquiry of the Court is the reason advanced by the employer and that Court or the High Court cannot go into another reason not relied upon by the employer or find one for him.

It is a basic principle of industrial relations jurisprudence that in a dismissal case the employer must produce convincing and cogent evidence that the employee had been incapable of performing his duties