SC
says that the complaint for termination of an employee is also arguable
in the place wherein the management establishes the termination
An employee
was working in a company situated in Aurangabad. Later, he was transferred to
Pondicherry i.e. company’s branch and in Pondicherry the employee was given the
order of termination. The employee approached the Labour Court which stated
that his complaint is maintainable. However, the Industrial Tribunal and the
High Court noted that the Aurangabad Labour Court have no jurisdiction over the
instant matter. Aggrieved, the employee came before the Supreme Court. Supreme
Court observed that a complaint against the termination of an employee is also
maintainable in the place where the management decides termination. The Court
said “the undisputed position is that the appellant was employed by the Company
in Aurangabad, he was only transferred to Pondicherry, the decision to close
down the unit at Pondicherry was taken by the Company at Aurangabad and
consequent upon that decision only the appellant was terminated. Therefore, it
cannot be said that there is no cause of action at all in Aurangabad. The
decision to terminate the appellant having been taken at Aurangabad necessarily
part of the cause of action has arisen at Aurangabad. We have no quarrel that
Labour Court, Pondicherry is within its jurisdiction to consider the case of
the appellant, since he has been terminated while he was working at
Pondicherry. But that does not mean that Labour Court in Aurangabad within
whose jurisdiction the Management is situated and where the Management has
taken the decision to close down the unit at Pondicherry and pursuant to which
the appellant was terminated from service also does not have the jurisdiction.
In the facts of this case both the Labour Courts have the jurisdiction to deal
with the matter.”
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