Labour Court's Failure to Ensure Proper Service of Notice Violates Principles of Natural Justice, Orders Fresh Hearing
In a significant judgment, the Chhattisgarh High Court has set aside an ex parte award passed by the Labour Court against Jindal Steel and Power Limited, citing a violation of the principles of natural justice. The case, brought by Umesh Kumar Chauhan, revolved around the abrupt termination of his employment, which was initially deemed illegal by the Labour Court.
The High Court, presided over by Justice Bibhu Datta Guru, scrutinized the procedural lapses in the Labour Court's handling of the case. The key issue was the Labour Court's decision to proceed ex parte, without confirming that proper notice had been served to Jindal Steel and Power Limited. This decision was based on an unverified postal track consignment report, which the High Court found insufficient for establishing due service.
Justice Guru emphasized the importance of adhering to the principles of natural justice, particularly the necessity of ensuring proper service and providing reasonable opportunities for all parties to be heard. The Court highlighted that any adjudication under the Industrial Disputes Act, 1947, which affects valuable rights, must strictly comply with these principles.
The High Court's decision also referenced the Supreme Court's judgment in Grindlays Bank Ltd. v. Central Government Industrial Tribunal, reiterating that if sufficient cause prevents a party from appearing, an ex parte award lacks jurisdiction and must be set aside.
Consequently, the High Court remitted the case back to the Labour Court for a fresh hearing, directing it to ensure proper service and provide both parties a fair opportunity to present their cases. The Labour Court has been instructed to expedite the proceedings, with a new hearing scheduled for April 29, 2026.
This judgment underscores the judiciary's commitment to upholding procedural fairness, particularly in cases impacting employment rights, and serves as a reminder to lower courts to meticulously follow due process.
Bottom Line:
Industrial Disputes - Ex parte award passed without proper service of notice violates principles of natural justice. Labour Court must ensure proper service and provide reasonable opportunity of hearing to all parties before proceeding with adjudication.
Statutory provision(s):
- Industrial Disputes Act, 1947, Section 25F
- General Clauses Act, 1897, Clause 27
- Code of Civil Procedure, 1908, Order 43, Rule 1(d), Order IX Rule 13, Section 151
- Industrial Disputes (Central) Rules, 1957, Rule 10B(9), Rule 24
Jindal Steel And Power Limited v. Umesh Kumar Chauhan, (Chhattisgarh) : Law Finder Doc id # 2859909
