Supreme Court Decides On Jurisdiction For Termination Of Employee

The Supreme Court in Nandram vs M/s Garware Polyster Ltd, decided upon an important point of jurisdiction of the Labour Court when deciding the termination of an employee. The Appellant/Complainant was an employee in Aurangabad and was later transferred to Pondicherry. Due to the closing down of the Pondicherry establishment, the management decided to terminate his services.

The Labour Courts of both, the place where the decision to terminate and the place where the termination took place, have territorial jurisdiction over the matter.

The Appellant approached the Labour Court in Aurangabad, where the matter was decided in his favour. The Industrial Court set aside the order and held that the Labour Court of Aurangabad did not have the territorial jurisdiction since the termination took place in Pondicherry, which was also upheld by the High Court.

The Appellant then moved to the Supreme Court where it was held than since the decision of the management to terminate the employee was taken at Aurangabad, the Labour Court will also have the jurisdiction to decide, along with the court in Pondicherry.


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