NANDRAM v. MIS. GARWARE POLYSTER LTD.

Case Details & Bench

Court: High Court
Hon'ble Judges: Kurian, J.
Rohinton Fali Nariman, J.
Judgment Date: 2016-02-16
Court Decision / Holding: Appeal allowed. Labour Court, Aurangabad, is within jurisdiction and shall consider the complaint on merits; the High Court and Industrial Court orders are set aside. The Labour Court is directed to decide the matter on merits within six months, with both parties appearing as required.
Final Disposition: Appeal allowed. Labour Court Aurangabad to decide on merits within six months; no costs.

Parties to the Case

Appellants / Petitioners

NANDRAM

Respondents

MIS. GARWARE POLYSTER LTD.

Legal Representation & Advocates

Counsels for Petitioners

• Manoj Swarup
• Ajay Kumar
• Ms. Prerna Mann

Counsels for Respondents

• T. K. Prabhakaran
• Deepak Prabhakaran
• Gopal Jain

Case Synopsis & Summary

The appellant NANDRAM, initially employed in Aurangabad as Boiler Attendant, was promoted through 1980s and 1990s, and ultimately transferred to Pondicherry after successive postings. In 2000–2005, he was transferred first to Silvasa and then to Pondicherry, where the establishment was later closed. On 12.04.2005 he was terminated with effect from 15.04.2005 due to the closure of the Pondicherry unit; the registered office of the Company is in Aurangabad, and the decision to close the Pondicherry unit was taken there. Aggrieved, the appellant filed a complaint under ULP in the Labour Court, Aurangabad, which initially ruled in his favor. The Industrial Court at Aurangabad set aside that order, holding lack of territorial jurisdiction since termination occurred in Pondicherry, a view later upheld by the Bombay High Court (Aurangabad Bench). The Supreme Court, while noting that the decision to close the Pondicherry unit was taken in Aurangabad and the termination flowed from that decision, held that both the Labour Court in Pondicherry and Aurangabad had jurisdiction. It set aside the High Court and Industrial Court orders and restored the Labour Court’s order, directing merits to be considered within six months. The judgment underscores concurrent territorial jurisdiction in cases involving closures across multiple jurisdictions and preserves the Labour Court’s role in Aurangabad as well as Pondicherry.

Provisions of Law Cited

Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant was employed in Aurangabad and, though transferred to Pondicherry, the decision to close the Pondicherry unit was taken at Aurangabad. Therefore, the termination arose from a decision made in Aurangabad, creating a cause of action there. While Pondicherry Labour Court has jurisdiction since termination occurred there, the Aurangabad Labour Court also has jurisdiction because the Management’s situs and the decision to close originated there. The High Court and Industrial Court erred in restricting jurisdiction and the Labour Court at Aurangabad should adjudicate the complaint on merits. Both Labour Courts can entertain the matter, and the forum is not exclusively Pondicherry. The Labour Court at Aurangabad should decide on merits within six months.

Contentions of Respondents

The termination occurred in Pondicherry, even though the decision to close was taken at Aurangabad. Thus Pondicherry was the situs of employment, giving Pondicherry Labour Court territorial jurisdiction. The Industrial Court at Aurangabad reversed the Labour Court’s decision, and the High Court affirmed that the situs of employment lies in Pondicherry. Therefore, the Aurangabad Labour Court lacks territorial jurisdiction and should not adjudicate the complaint; Pondicherry is the proper forum for the proceedings.

Extracted Judgment Text

Exact text extracted from official judgment records.

[2016) 2 S.C.R. 672 A ## NAN DRAM v. ## _MIS._ GARWARE POLYSTER LTD. (Civil Appeal No. 1409 of2016) ## B FEBRUARY 16, 2016 ## [KURIAN JOSEPH AND ROHINTON FALi NARIMAN, JJ.f _Jurisdiction: Service law_ - _Appointment of appellant by_ - _respondent as boiler attendant in the Company at Aurangabad By proceedings, transferred to Pondicherry_ - _Termi11atio11 from_ c _service 011 accou11t of closure of u11it at Po11dicherry_ - _Registered office of the company at Aurangabad and the decisio11 to close the establishme11t at Po11dicherry take11 at Aura11gabad_ - _Complai11t before Labour Court at A urangabad, dismissed for lack of_ - _jurisdiction Held: Labour Court at Aura11gabad is well within its_ D _jurisdiction to co11sider the complaint filed by the appel/a/1/._ ## Allowing the appeal, the Court HELD: 1. The appellant was employed by the Company in Aurangabad, he was only transferred to Pondicberry, the decision to close down the unit at Pondicberry was taken by the Company E at Aurangabad and consequent upon that decision only the appellant was terminated. Therefore, it cannot be said that there is no cause of action at all in Aurangabad. The decision to terminate the appellant having been taken at Aurangabad necessarily part of the cause of action has arisen at Aurangabad. F Labour Court, Pondicherry is within its jurisdiction to consider the case of the appellant, since he has been terminated while be was working at Pondicherry. But that does not mean that Labour Court in Aurangabad within whose jurisdiction the Management is situated and where the Management has taken the decision to close down the unit at Pondicherry and pursuant G to which the appellant was terminated from service also does not have the jurisdiction. In the facts of this case both the Labour Courts have the jurisdiction to deal witl1 the matter. (Para SJ [674-B-Ej E H 672 673 NANDRAM v. MIS. GARWARE POLYSTER LTD. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1409 of A 2016 From the Judgment and Order dated 07.06.2011 of the High Court of Judicature at Bombay, Appellate Side Bench at Aurangabad in Writ Petition No. 4968 of2009. Manoj Swarup, Ajay Kumar, Ms. Prerna Mann for the Appellant. B T. K. Prabhakaran, Deepak Prabhakaran, Gopal Jain for the Respondent. The Judgment of the Court was delivered by KURIAN, J. I . Leave granted. 2. The appellant was employed by the respondent initially as Boiler Attendant in the year 1983 in the Company in Aurangabad. Thereafter he was promoted as Junior Supervisor in the year 1987 and worked in the Aurangabad plant only. In the year 1995, he was again promoted as Senior Supervisor and continued in Aurangabad. However, by proceedings dated 21.10.2000, the appellant was transferred to Silvasa in Gujarat. By another order dated 20.12.200 I he was transferred from Silvasa to Pondicherry. While so, by proceeding dated 12.04.2005, appellant was terminated from service w.e.f. 15.04.2005 on account ofclosure of the establishment at Pondicherry. It is not in dispute that the registered office of the Company is in Aurangabad and the decision to close the establishment at Pondicherry was taken by the Company at Aurangabad. 3. Aggrieved by the termination, appellant moved the Labour Court atAurangabad in complaint ULPNo.56 of2005. Despite the objection taken by the respondent that the Labour Court lacked jurisdiction, the Court held in favour of the complainant. 4. Aggrieved, the respondent-Company took up the matter before the Industrial Court at Aurangabad in revision. The Industrial Court at Aurangabad vide order dated 04.07.2009 set aside the order passed by the Labour Court and dismissed the complaint of the appellant holding that the Labour Court at Aurangabad did not have territorial jurisdiction to entertain the complaint of the appellant, since the termination took place at Pondicherry. The appellant moved the High Court of Judicature of Bombay atAurangabad in Writ Petition No. 4968 of2009. The High Court by judgment dated 07.06.2011 affirmed the view taken by the Industrial Court and held that the situs of employment of the appellant c D E F G H 674 SUPREME COURT REPORTS [2016] 2 S.C.R. - A being Pondicherry, the Labour Court at Aurangabad did not have territorial jurisdiction to go into the complaint filed by the appellant. Thus aggrieved, the appellant is before this Court. 5. Though, the learned counsel on both sides had addressed in detail on several issues, we do not think it necessarY to go into all those aspects B mainly because in our view they are only academic. In the background of the factual matrix, the undisputed position is that the appellant was employed by the Company in Aurangabad, he was only transferred to PondicherrY, the decision to close down the unit at PondicherrY was taken by the Company at Aurangabad and consequent upon that decision only the appellant was terminated. Therefore, it cannot be said that there c is no cause of action at all in Aurangabad. The decision to terminate the appellant having been taken atA.urangabad necessarily part of the cause of action has arisen at Aurangabad. We have no quarrel that Labour Court, PondicherrY is within its jurisdiction to consider the case of the appellant, since he has been terminated while he was working at D Pondicherry. But that does not mean that Labour Court in Aurangabad within whose jurisdiction the Management is situated and where the Management has taken the decision to close down the unit at Pondicherry and pursuant to which the appellant was terminated from service also does not have the jurisdiction. In the facts of this case both the Labour Courts have the jurisdiction to deal with the matter. Hence, the Labour E Court at Aurangabad is well within its jurisdiction to consider the complaint filed by the appellant. Therefore, we set aside the order passed by the High Court and the Industrial Court atAurangabad and restore the order passed by the Labour Court, Aurangabad though for different reasons. F 6. The Labour Court shall consider the complaint on merits and pass final orders within six months from today. The parties are directed to appear before the Labour Court on 08.03.2016. 7. It is made clear that all other contentions regarding the jurisdiction on other aspects in terms of the Maharashtra Recognition ofTrade Union and Prevention of Unfair Labour Practices Act, 1971 are left open since G such questions do not arise in the factual matrix of the present case. 8. The appeal is allowed to the above extent with no order as to costs. Devika Gujral Appeal allowed. H