Lawstreet Journal

'Labour Courts Cannot Overturn Management's Decision on Mere Hypothesis': Supreme Court

Lawstreet Journal 1 Oct 2021 6:31pm

Image courtesy: Lawstreet Journal Judiciary 'Labour Courts Cannot Overturn Management's Decision on Mere Hypothesis': Supreme Court

Case: Standard Chartered Bank Vs RC Srivastava (Civil Appeal 6092 of 2021)

Citation: LL 2021 SC 525

The Supreme Court recently stated that the Labour Court cannot overturn management's decision on "ipse dixit" and that the decision was not based solely on hypothesis. 

Observing that the Labour Court had transformed itself into a "Court of Appeal," the Supreme Court overturned the Labour Court's decision, which had overturned management's decision to terminate an employee's services.

A Division Bench comprised of Justice Ajay Rastogi and Justice Abhay S Oka observed that the jurisdiction of a Labour Court under Section 11A of the Industrial Disputes Act, 1947 must be exercised judiciously and cannot be exercised arbitrarily or capriciously. While the Tribunal may examine or analyse the evidence, what matters is how it is done (Case: Standard Chartered Bank Vs RC Srivastava).

Section 11 A of the Industrial Disputes Act of 1947 addresses the powers of Labour Courts, Tribunals, and National Tribunals to grant appropriate relief in cases of workmen discharge or dismissal.

The observations were made in the context of a Tribunal's order reinstating a Bank employee while overturning the order terminating him following a disciplinary investigation.

The Bench found that the Tribunal completely ignored and exceeded its jurisdiction by interfering with the finding made during the course of the disciplinary investigation, as a result of which the respondent employee was dismissed from service.

Furthermore, the High Court made a clear error in issuing the contested judgement and upholding the Tribunal's order of reinstatement.

The… Continue Reading...

Tagged: Supreme Court of India  
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