Himachal Pradesh High Court Quashes Government's Unauthorized Amendment to Labour Court Reference

Court rules that the Appropriate Government lacks jurisdiction to amend or refer new issues without formal industrial dispute initiation.

In a significant ruling, the Himachal Pradesh High Court has set aside a corrigendum issued by the Appropriate Government, which had unauthorizedly amended an existing reference to the Labour Court concerning Auckland House School. The judgment, delivered by Justice Ajay Mohan Goel, underscores the importance of adhering to statutory procedures under the Industrial Disputes Act, 1947.

The case, filed by Auckland House School, challenged the Government's decision to amend a previous reference to include the termination of employees during ongoing conciliation proceedings. The corrigendum dated June 26, 2019, was issued without a formal industrial dispute or demand notice from the aggrieved employees regarding their termination.

Justice Goel emphasized that the Appropriate Government does not possess the authority to amend or refer new issues to the Labour Court suo motu without a demand or dispute raised by the affected parties. The judgment highlighted that the termination issue was independent of the original demand notice, which was primarily concerned with other grievances of the employees.

During the proceedings, the petitioners argued that the Government's action was unsustainable, as it was based on developments during conciliation proceedings that were not formally contested or raised by the employees. The Court agreed, noting that the Government's corrigendum lacked legal foundation, as it was issued without jurisdiction.

The ruling clarifies that under Sections 10(1) and 2A of the Industrial Disputes Act, the Appropriate Government can refer disputes to the Labour Court only when an industrial dispute is acknowledged or apprehended. The judgment further explains that aggrieved employees have the option to independently raise a fresh demand or file a claim under Section 2A for adjudication of their termination.

Consequently, the Court quashed the corrigendum and set aside the Labour Court's order that had upheld the corrigendum. The High Court directed the Labour Court to address only the original reference made by the Appropriate Government, ensuring that the jurisdictional boundaries are respected.

The decision provides clarity on the procedural aspects of referring disputes to labour courts, reinforcing that statutory provisions must be followed to avoid multiplicity of litigation and ensure fair adjudication of industrial disputes.

Bottom Line:

Industrial Disputes - Appropriate Government does not have the authority to amend or refer a fresh issue to the Labour Court suo motu without demand or industrial dispute being raised by aggrieved parties.

Statutory provision(s): Industrial Disputes Act, 1947 Sections 10(1), 2A

Auckland House School v. State of Himachal Pradesh, (Himachal Pradesh) : Law Finder Doc Id # 2803054