Premium
This is an archive article published on August 8, 1997

HC curtails industrial court’s powers

August 7: The Bombay High Court has ruled that disputes involving companies administered by the Central Government cannot be tried by the I...

.

August 7: The Bombay High Court has ruled that disputes involving companies administered by the Central Government cannot be tried by the Industrial Court.

The ruling came in the wake of a petition filed by National Building Construction Corporation Ltd (NBCCL) challenging an Industrial Court order. An employee of the company had moved the IC alleging unfair labour practise. He had complained about a reduction in his rank. However, the company raised an objection regarding the maintanability of the complaint and jurisdiction of the IC to try, entertain and dispose off the plea. The company maintained that Industrial Disputes Act empowers the National Tribunal to try disputes pertaining to companies faling under the Central Government. This company was formed under the Union Ministry of Urban Development, Works, Housing and Supply.

However, the IC held that it can entertain the complaint under the Monopolies and Restrictive Trade Practices Act. Also that the employer industry cannot be held to be under the Central Government since there is no notification to that effect.

Story continues below this ad

According to Justice R M Lodha of the Bombay High Court, an industry governed under the Central Government need not be further specified to be under its authority, as per the Industrial Disputes Act. “The Industrial Court was not justified and rather seriously erred in holding that no notification that industry is `controlled’ is issued by the Central Government.”

Justice Lodha referred to an apex court judgement which explains the term `government-controlled company’. The Supreme Court judgement states that “In a liberalised economy, public corporations are thrown open to private and multinational investments. Therefore… the word control requires to be interpreted in the changing commercial scenario broadly in keeping with the constitutional goals and perspectives.” Therefore, Justice Lodha ruled that “the NBCCL, a company floated from the public exchequer, is certainly under the central government

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement