Dispute Referral By State Government To Central Labour Tribunal Valid Only When Authorized By Central Government: Allahabad HC
Live LawAllahabad High Court: A single bench of Justice Subhash Vidyarthi declared that the canteen workers of Hindustan Aeronautics Ltd. were direct employees of the company, despite the existence of a contract with a third-party canteen operator. Additionally, the court held that the Central Government was the “appropriate government” for HAL, but in this case, the State Government had the power to refer the dispute to an Industrial Tribunal under the Central Act. HAKS also argued that the 'appropriate government' is the State Government, and under Section 4-B of the U. P. Industrial Disputes Act, it could refer the dispute to the Tribunal. It noted that more than 51% of HAL's shares are held by the Central Government, and Section 2 of the Central Act mandates that in such cases, the “appropriate Government” would be the Central Government. Thus, the court concluded that exercising its delegated powers, the State Government too could refer a dispute to the Industrial Tribunal under the Central Act.
History of this topic
Industrial Disputes Act | Gujarat HC Quashes Order Referring Alleged Dispute Between Company & Foreign Personal Assistant To Labour Court
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