As per case facts, the Petitioner challenged his dismissal from service and filed a complaint with the Labour Court. Initially, the Labour Court directed that the issue of the Petitioner's ...
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.873 OF 2024
Shri. Aniruddh Kumar Dhaniram Upadhyay ....Petitioner
V/S
M/s. Emeresons Process Management (India) Pvt. Ltd. ....Respondent
_________
Mr. Mahesh Shukla with Mr. Niraj Prajapati and Mr. Siddhikesh Shinde
for the Petitioner.
Mr. Anand Pai with Mr. Pratik Kothari and Ms. Lavanya Panicker for
Respondent.
__________
CORAM : SANDEEP V. MARNE, J.
RESERVED ON : 13 AUGUST 2026.
PRONOUNCED ON : 27 AUGUST 2026.
J U D G M E N T :
1.The issue that arises for consideration in the present Petition is
whether the issue as to status of the Petitioner as workman under
Section 2(s) of the Industrial Disputes Act, 1947 can be decided as
preliminary issue or not.
2.Rule. Rule is made returnable forthwith. Since pleadings in the
Petition are complete, the same is taken up for final hearing with the
consent of the learned counsel appearing for parties.
katkam Page No. 1 of 21
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3.By this Petition, Petitioner has challenged order dated 3 May 2023
passed by the learned Member, Industrial Court, Thane, in Revision
(ULP) No.18 of 2021. The Industrial Court has allowed the Revision
preferred by the Respondent-employer and has set aside order dated 29
February 2020 passed by Labour Court, Thane in Complaint (ULP)
No.128 of 2013 under Application at Exhibit U-18. The Industrial Court
has directed the Labour Court to decide the issue of status of the
Petitioner as workman as a preliminary issue. The Industrial Court has
further directed that in the event the Petitioner is held to be a workman
and the complaint is found to be maintainable, the Respondent-
employer would be at liberty to challenge even Part-I order dated 22
February 2021. It has further directed that if the Petitioner is found to be
not a workman and the Complaint is found to be not maintainable, the
Part-I order dated 22 February 2021 shall automatically cease to exist.
4.The Petitioner was initially appointed as Technician with the
Respondent-establishment. According to the Respondent, he was
promoted as Senior Technician and later as an Engineer. Respondent was
served with charge-sheet dated 17 October 2012 and disciplinary
enquiry was initiated against him. At the end of the enquiry, Petitioner
came to be dismissed from service on 12 September 2013. Petitioner has
filed Complaint (ULP) No. 128 of 2013 in the Labour Court, Thane,
challenging the termination order dated 12 September 2013. The
Complaint is resisted by the Respondent-employer by filing Written
Statement. The Labour Court framed issues on 20 April 2016 and
directed that the first three issues relating to status of Petitioner as
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workman, fairness in the enquiry and perversity in the findings of the
Enquiry Officer shall be treated as preliminary issues. The Petitioner
however filed application at Exhibit-U-18 for deciding only the issue of
fairness in the enquiry as preliminary issue and for decision on the issue
of status alongwith other issues. The Application at Exhibit U-18 was
allowed by the order dated 29 February 2020 and the Labour Court
directed that only the issue of fairness in the enquiry shall be decided as
preliminary issue and that issue relating to status of the Petitioner as
workman shall be decided with other issues. Aggrieved by order dated 29
February 2020, Respondent filed Revision (ULP) No.18 of 2021. During
pendency of the Revision, the Trial Court proceeded to decide the
preliminary issue relating to fairness in the enquiry and by order dated
22 February 2021 it has held that the enquiry is not conducted fairly and
properly and that the findings recorded by the Enquiry Officer are
perverse. Thereafter, the Industrial Court has decided Revision (ULP)
No.18 of 2021 by order dated 3 May 2023 in which following operative
directions are issued:
i. Revision Application (ULP) No. 18 of 2021, is hereby Partly Allowed.
ii. The Impugned Order dated 29-02-2020 passed by the Ld. First
Labour Court, Thane in the Complaint (ULP) No. -128 of 2013, Below
Application Exh. U-18 is hereby quashed and Set Aside and the Matter
is remanded to the Ld. First Labour Court, Thane.
iii. Ld. Labour Court to decide the issue of 'Workman' Firstly as
Preliminary Issues, and if the parties so desire, to allow the parties to
adduce evidence in support of their respective contentions, limited to
the Issue Of Workman.
iv. Parties to appear before the Ld. First Labour Court, Thane on 28-06-
2023.
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v. In case, the Ld. Labour Court holds Complainant Employee to be the
'Workman' and the Complaint is found to be Maintainable, then the
Revision Petitioner i.e. Respondent Employer shall be at liberty to
Challenge the Order on issue of 'Workman' and also the Order on Part-I
Judgment, dated 22-02-2021.
vi. In case, the Complainant Employee is Not Found to be the
'Workman' and Complaint is Not Found to be Maintainable, then the
Order dated 22-02-2021, Judgment on Part-1 will automatically cease
to exist.
vii. No Orders as to Costs.
viii. R & P of Complaint (ULP) No.- 128 of 2013 be sent back to the First
Labour Court, Thane along with Copy of this Order.
5.Petitioner is aggrieved by the Order dated 3 May 2023 which
envisages decision on the issue of status of the Petitioner as a
preliminary issue.
6.I have heard Mr. Shukla, the learned counsel appearing for the
Petitioner, who submits that the Industrial Court has grossly erred in
reversing well considered decision dated 29 February 2020 passed by the
Labour Court. He submits that the Labour Court had rightly directed trial
of all the issues together except the issue relating to fairness in the
enquiry and perversity in the findings of the Enquiry Officer in
accordance with ratio of the judgment of the Apex Court in D. P.
Maheshwari vs. Delhi Administration and others
1
. He submits that by
now the law is well settled that issue as to status of an employee as
workman under Section 2(s) of the Industrial Disputes Act,1947 (ID Act)
cannot be decided as a preliminary issue and that all issues must be tried
and decided together to avoid delay. He relies on judgments of this Court
1 (1983) 4 SCC 293
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in Hind Kamgar Sanghatana vs. L.G. Electronics (I) Pvt. Ltd. and
Another
2
and Sadguru Daskishan Sai Baba Mandal vs. Vaishali More
3
.
He therefore prays for setting aside the impugned order.
7.Mr. Pai, the learned counsel appearing for the Respondent opposes
the Petition. He submits that the Labour Court itself had directed on 20
April 2016 that the issue of status of Petitioner as ‘workman’ under
Section 2(s) of the ID Act shall be decided as a preliminary issue. That
the Labour Court erroneously changed its decision on 29 February 2020.
That the Industrial Court has rightly set aside order dated 29 February
2020 which runs contrary to the earlier order dated 20 April 2016.
8.Mr. Pai further submits that there is no inflexible principle that
the issue of status of person can never be decided as a preliminary issue.
He relies on the judgments of the Apex Court in V.G. Jagdishan vs.
Indofos Industries Limited
4
contending that the judgment of the Apex
Court in D.P. Maheshwari (supra) is distinguished in the said judgment.
He also relies on judgment of this Court in H.S. Rawat vs. Voltas Ltd.
5
and Sarika Hemchand Pradhan vs. Deccan Gymkhana
6
. He also relies on
judgment of the Apex Court in Sonepat Co-operative Sugar Mills Ltd. vs.
Ajit Singh
7
, in support of his contention that jurisdiction of
Labour/Industrial Court to make an award in the dispute would depend
upon a finding as to whether the employee concerned is a workman or
not. He submits that when such an issue is raised, the same being
2 Writ Petition No.1614 of 2020 decided on 11 January 2024
3 Writ Petition (L) No.35633 of 2025, decided on 26 November 2025
4 (2022) 6 SCC 167
5 2005 (1) Mh.L.J. 904
6 2026 SCC OnLine Bom 5978
7 (2005) 3 SCC 232
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jurisdictional one, the same needs to be decided as a preliminary issue.
He submits that in pursuance of the impugned order dated 3 May 2023,
Petitioner has already filed his evidence on the issue of his status as
workman. He therefore prays for dismissal of the Petition.
9.Rival contentions urged on behalf of the learned counsel
appearing for the parties now fall for my consideration.
10.Petitioner has filed Complaint (ULP) No. 128 of 2013 in the Labour
Court, Thane challenging the termination order dated 12 September
2013. At the time of framing of issues, the Labour Court had directed
that even the issue relating to status of the Petitioner as ‘workman’ shall
be decided as a preliminary issue. It would be apposite to reproduce
order dated 20 April 2016 which reads thus:
1. Whether the complainant proves that he is a workman as per
Sec.2(s) of the Industrial Disputes Act, and as per Sec. 3(5) of
the MRTU & PULP Act?
2. Whether the complainant prove that the enquiry conducted by
the respondent was held in utter disregard of principles of
natural justices?
3. Whether the findings drawn by the Enquiry Officer are perverse?
4. Whether the respondent justify its action before the court?
5. Whether the punishment is shockingly disproportionate to the
proved misconduct?
6. Whether the complainant is entitled for relief claimed?
7. What order?
First three issues are treated as preliminary issues.
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11.The Petitioner got aggrieved by the direction for decision of issue
relating to status as preliminary issue and filed Application at Exhibit U-
18 seeking a direction that the issue of status be decided together with
the other issues. The Labour Court referred to the judgment of the Apex
Court in D.P. Maheshwari (supra) and held, by its order dated 29
February 2020, that only Issue Nos.2 and 3 shall be tried as preliminary
issue and that the issue as to status of the Petitioner shall be decided
while answering remaining issues.
12.Respondent-employer challenged order dated 29 February 2020
before Industrial Court by filing Revision (ULP) No.18 of 2021. It appears
that on account of Covid-19 pandemic, there was some delay on the part
of Respondent in filing the Revision and the same was filed on 8 April
2021 challenging order dated 29 February 2020. Be that as it may. The
Revision remained pending for over two years before the Industrial
Court. In the meantime, the Labour Court continued with the
proceedings. The Labour Court took up Issue Nos.2 and 3 for decision.
The Respondent-employer participated in decision of Issue Nos.2 and 3.
During pendency of Revision filed by the Respondent, the Trial Court
answered Issue Nos.2 and 3 vide order dated 22 February 2021 holding
that the enquiry is not fair and proper and that findings of the Enquiry
Officer are perverse. After Issue Nos.2 and 3 were decided on 22 February
2021, Revision preferred by the Respondent has been allowed by the
Industrial Court by order dated 3 May 2023 directing that issue of status
of the Petitioner be decided as a preliminary issue.
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13.One of the factors considered relevant by the Industrial Court in
setting aside the order passed on the application at Exhibit U-18 dated
29 February 2020 is the decision of the Labour Court to decide Issue Nos.
1 to 3 as preliminary issues, vide order dated 20 April 2016. In my view,
merely because the Labour Court had issued directions for decision of
Issue No.1 relating to status of the Petitioner as preliminary issue, the
same does not preclude it from subsequently directing that the issue
relating to status can be tried alongwith the other issues. Therefore,
directions in the order dated 20 April 2016 cannot be treated as an
estoppel for the Labour Court.
14.Perusal of the order passed by the Industrial Court indicates that,
after taking into consideration the ratio laid down by the Apex Court in
D.P. Maheshwari (supra), it has held that where the enquiry involves the
issue of status along with the issue of the validity of the enquiry, it is
necessary to decide the issue of jurisdiction (status) as a preliminary
issue. This finding is recorded twice by the Industrial Court in
paragraphs 10 and 12 of the judgment as under:
10. I find that the Hon'ble Supreme Court have laid down the principal
that all issues should be Decided Together. However, I find that in the
case of D. P. Maheshwari, there was No Situation of Deciding the issue
of Inquiry as a Preliminary Issue. In view the law laid down by the
Hon'ble Bombay High Court, the issue of Inquiry has to be decided as a
Preliminary Issue. However, I am of the view that in the matters,
wherein the issue of Inquiry is involved along with the issue of
Jurisdiction, i.e. the issue like that of 'Workman' (Section 2 (s) of
the Industrial Disputes Act, 1947) or the issue of 'Industry'
(Section 2 (j) of the I. D. Act) is involved, in such matter, it is
necessary to first decide the issue of Jurisdiction i.e. the issue of
'Workman', issue of 'Industry', Etc. Because while dealing the matter
on Merit, the Ld. Labour Court should have ascertained itself, whether
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the Complainant Employee is a 'Workman' Or Not and after deciding
the issue of 'Workman', the Ld. Labour Court could have proceeded to
decide the issue of Fairness of Inquiry and Findings of Inquiry Officer,
in case the Complainant is found to be a 'Workman' and Complaint is
found to be Maintainable.
12. With due respect to the ratio laid down by the with Hon'ble Bombay
High Court and Hon'ble Supreme Court, in the Authorities cited Supra,
I am of the view that even if the Hon'ble Supreme Court have directed
to decide all issues together (D. P. Maheshwari's case), yet, in the
matters wherein the issue of Inquiry and issue of Jurisdiction is
involved, the Ld. Labour Court should have First Decided the issue
of Jurisdiction i.e. the issue of 'Workman' as a Preliminary Issue.
Thereafter, the issue of Inquiry should have been decided, in case the
Complaint is found to be maintainable or at the most, the Ld. Labour
Court could have decided all the three issues together.
(emphasis added)
15.In my view, the above findings recorded by the Industrial Court are
in the teeth of law settled by the judgment of the Apex Court in D. P.
Maheshwari, in which the Apex Court has held that there cannot be
piecemeal adjudication of different issues involved in a reference. The
Apex Court took into consideration the effect of delay caused by the
piecemeal adjudication of different issues and has held that, when such
delay is likely to jeopardize industrial peace, all the issues arising in the
dispute must be decided at the same time. The Apex Court has held in
D.P. Maheshwari (supra) in paragraph 1 as under:
1. It was just the other day [See (1983) 4 SCC 214] that we were
bemoaning the unbecoming devices adopted by certain employers to
avoid decision of industrial disputes on merits. We noticed how they
would raise various preliminary objections, invite decision on those
objections in the first instance, carry the matter to the High Court
under Article 226 of the Constitution and to this Court under Article
136 of the Constitution and delay a decision of the real dispute for
years, sometimes for over a decade. Industrial peace, one presumes,
hangs in the balance in the meanwhile. We have now before us a case
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where a dispute originating in 1969 and referred for adjudication by the
Government to the Labour Court in 1970 is still at the stage of decision
on a preliminary objection. There was a time when it was thought
prudent and wise policy to decide preliminary issues first. But the time
appears to have arrived for a reversal of that policy. We think it is better
that tribunals, particularly those entrusted with the task of
adjudicating labour disputes where delay may lead to misery and
jeopardise industrial peace, should decide all issues in dispute at the
same time without trying some of them as preliminary issues. Nor
should High Courts in the exercise of their jurisdiction under Article
226 of the Constitution stop proceedings before a tribunal so that a
preliminary issue may be decided by them. Neither the jurisdiction of
the High Court under Article 226 of the Constitution nor the
jurisdiction of this Court under Article 136 may be allowed to be
exploited by those who can well afford to wait to the detriment of those
who can ill afford to wait by dragging the latter from court to court for
adjudication of peripheral issues, avoiding decision on issues more
vital to them. Article 226 and Article 136 are not meant to be used to
break the resistance of workmen in this fashion. Tribunals and courts
who are requested to decide preliminary questions must therefore ask
themselves whether such threshold part-adjudication is really
necessary and whether it will not lead to other woeful consequences.
After all tribunals like industrial tribunals are constituted to decide
expeditiously special kinds of disputes and their jurisdiction to so
decide is not to be stifled by all manner of preliminary objections and
journeyings up and down. It is also worthwhile remembering that the
nature of the jurisdiction under Article 226 is supervisory and not
appellate while that under Article 136 is preliminary supervisory but
the court may exercise all necessary appellate powers to do substantial
justice. In the exercise of such jurisdiction neither the High Court nor
this Court is required to be too astute to interfere with the exercise of
jurisdiction by special tribunals at interlocutory stages and on
preliminary issues.
16.In Ramesh Chandra Sankla & Ors. vs. Vikram Cement & Ors.
8
the Apex Court has highlighted the need to decide all issues
simultaneously by referring to the provisions of the Code of Civil
Procedure 1908. Holding that though the provisions of the Code do not
strictly apply to industrial adjudication, yet the normal rule is to decide
all the issues together. The Apex Court has held thus:
8 (2008) 14 SCC 58
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75. In our considered opinion, in the present case, it cannot be
said that the courts below have committed any error of jurisdic-
tion in not deciding the issue as to the maintainability of claim
petitions as preliminary issue. It is well settled that generally, all
issues arising in a suit or proceeding should be tried together and
a judgment should be pronounced on those issues. Before more
than hundred years, the Privy Council in Tarakant Bannerjee v. Pud-
domoney Dossee [(1866) 10 Moo IA 476] favoured this approach. Speak-
ing for the Judicial Committee, Lord Turner stated: (Moo IA p. 488)
“… The courts below, in appealable cases, by forbearing from decid-
ing on all the issues joined, not infrequently oblige this Committee
to recommend that a cause be remanded which might otherwise be
finally decided on appeal. This is certainly a serious evil to the par-
ties litigant, as it may involve the expense of a second appeal as
well as that of another hearing below. It is much to be desired,
therefore, that in appealable cases the courts below should, as far as
may be practicable, pronounce their opinions on all the important
points.”
The above principle has been consistently followed.
76. This Court dealing with the provisions of Order 14 Rule 2 (prior to the
Amendment Act of 1976) in Major S.S. Khanna v. Brig. F.J. Dillon [AIR 1964
SC 497 : (1964) 4 SCR 409] stated: (AIR pp. 502-03, para 18)
“18. … Under Order 14 Rule 2, Code of Civil Procedure, where issues
both of law and of fact arise in the same suit, and the court is of the
opinion that the case or any part thereof may be disposed of on the
issues of law only, it shall try those issues first, and for that purpose
may, if it thinks fit, postpone the settlement of the issues of fact
until after the issues of law have been determined. The jurisdiction
to try issues of law apart from the issues of fact may be exercised
only where in the opinion of the court the whole suit may be dis-
posed of on the issues of law alone, but the Code confers no juris-
diction upon the court to try a suit on mixed issues of law and fact
as preliminary issues. Normally all the issues in a suit should be
tried by the court; not to do so, especially when the decision on is-
sues even of law depend upon the decision of issues of fact, would
result in a lopsided trial of the suit.”
77. The Law Commission also considered the question and did not favour
the tendency of deciding some issues as preliminary issues. Dealing with
Rule 2 of Order 14 (before the amendment), the Commission stated:
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“This Rule has led to one difficulty. Where a case can be disposed of
on a preliminary point (issue) of law, often the courts do not inquire
into the merits, with the result that when, on an appeal against the
finding on the preliminary issue, the decision of the court on that
issue is reversed, the case has to be remanded to the court of first
instance for trial on the other issues. This causes delay. It is consid-
ered that this delay should be eliminated, by providing that a court
must give judgment on all issues, excepting, of course, where the
court finds that it has no jurisdiction or where the suit is barred by
any law for the time being in force.”
78. Apart from the fact that the provisions of the Code do not stricto
sensu apply to “industrial adjudication”, even under the Code, after
the Amendment Act, 1976, the normal rule is to decide all the issues
together in a civil suit.
(emphasis added)
17.In Hind Kamagar Sanghatana (supra) a coordinate Bench of this
Court has referred to the judgments of the Apex Court in D. P.
Maheshwari and Ramesh Chandra Sankla and has held that the issue
of status of employee as workman needs to be decided alongwith all
other issues. This Court held in paragraphs 4, 8, 9 and 10 of the judgment
as under:
4. The question, therefore, arises for consideration is whether the
issue of status of employees as workmen needs to be decided as a
preliminary issue or such issue needs to be decided along with all
other issues.
8. In so far as the judgment relied upon by the respondent in Hussan
Mithu Mhasvadkar (supra), the Apex Court was not considering an
issue as to whether a particular issue needs to be decided as a
preliminary issue or all the issues need to be decided along with all
other issues. In the facts of said case, considering nature of dispute
involved in the said case, the Apex Court observed that instead of
embarking upon an adjudication in the first instance as to whether the
respondent is an industry or not so as to attract the provisions of the
Industrial Disputes Act, it ought to have refrained from doing so and
taken up the question about the status of the appellant for adjudication
at the threshold and if only the finding recorded was against the
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appellant, refrained from adjudicating on the larger issue affecting the
various kinds of other employees, as to the character of the Board, as
and industry or not. On careful perusal of paragraph 5, it is evident that
the observations made were restricted in the facts of the said case and
no legal proposition of law is laid down by the Apex Court. Moreover,
the judgment in Ramesh Chandra Sankla (supra) and D.P. Maheshwari
(supra), the Apex Court was concerned with framing of preliminary
issue. It is also important to note that the judgment in D.P.
Maheshwari (supra) has been delivered by three Judges of the Apex
Court and the judgment in the case of Hussan Mithu Mhasvadkar
(supra) has been delivered by two Judges of the Apex Court. Hence, the
view taken by three Judges of the Apex Court bind this court.
9. In so far as the judgment of learned Single Judge of this Court in
Siemens Ltd. (supra) is concerned, this Court has not taken into
consideration the judgment in D.P. Maheshwari (supra) or Ramesh
Chandra Sankla (supra) and, therefore, the judgment will not support
the respondent.
10. In my view, therefore, the issue framed by the Industrial Court
by the impugned order needs to be decided along with all other
issues.
(emphasis added)
18.The law thus appears to be fairly well settled that ordinarily all
issues must be tried together by an industrial adjudicator. Mr. Pai has
however relied on judgment of the Apex Court in V.G. Jagdishan (supra),
in which, according to him, the Apex Court has distinguished and, in any
case, clarified the principles in D. P. Maheshwari by holding that no
absolute proposition of law was laid down therein that even the issue
touching the jurisdiction of the Court cannot be decided by the Court as
a preliminary issue. The Apex Court has held in paragraph 15 as under:
15. In the case of D.P. Maheshwari (supra) is pressed into service by
learned Senior Advocate appearing on behalf of the Appellant in
support of the submission that the Labour Court ought not to have
given the decision only on preliminary issue and ought to have
disposed of all the issues, whether preliminary or otherwise at the
same time. On facts the said decision is not applicable to the facts of
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the case on hand. In the aforesaid decision no absolute proposition
of law was laid down by this Court that even the issue touching
the jurisdiction of the court cannot be decided by the court as a
preliminary issue and the court has to dispose of all the issues,
whether preliminary or otherwise, at the same time. When the
issue touches the question of territorial jurisdiction, as far as
possible the same shall have to be decided first as preliminary
issue. Therefore, in the present case, the Labour Court did not commit
any error in deciding the issue with respect to the territorial
jurisdiction as a preliminary issue in the first instance.
(emphasis added)
19.In V.G. Jagdishan (supra) the issue before the Apex Court was
about territorial jurisdiction and not about status of a person as a
workman. The ratio of that judgment therefore would have no
application in the present case.
20.Both the sides have relied on judgments delivered by me in
support of their respective contentions about permissibility to decide
the issue of status as preliminary issue. Mr. Shukla has relied on
judgment in Sadguru Daskishan Sai Baba Mandal (supra). In that case,
the employer had terminated the services without notice by presuming
that the status was not of ‘workman’. After taking into consideration
ratio of judgments of the Apex Court in D.P. Maheshwari (supra),
Ramesh Chandra Sankla (supra) and of this Court in Hind Kamgar
Sanghatana (supra), this Court distinguished the judgment of the Apex
Court in V.G. Jagdishan (supra) by holding in paragraphs 8 and 9 of the
judgment as under:
[
8) Reliance by Mr. Shukla on judgment of V.G. Jagdishan (supra)
does not cut any ice. In that case, the issue was with regard to
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territorial jurisdiction. The workman therein was working as driver at
Ghaziabad, whose services were also terminated at Ghaziabad. The
workman thereafter shifted to Delhi and filed a claim before
Conciliation Officer at Delhi. The dispute was referred to Labour Court
at Delhi and the management raised preliminary objection of territorial
jurisdiction of Labour Court at Delhi. In the light of above peculiar fact
situation, the Supreme Court has made following observations in
paragraph 15 of the judgment:-
xxx
9) Thus, in V.G. Jagdishan the Apex Court has held that the issue
of territorial jurisdiction can be decided as a preliminary issue
notwithstanding the ratio of the judgment in D.P. Maheshwari. In
the present case, what Petitioner desired is determination of issue
of status of the Respondent as ‘workman’ as preliminary issue. As
held in D.P. Maheshwari and Ramesh Chandra Sankla the said
issue cannot be decided in a piecemeal manner with a view to
avoid delay in decision of the reference. In the present case, the
Petitioner has taken a risk of terminating the services of the
Respondent on the ground that she is not a ‘workman’. If the issue of
her status is decided as preliminary issue, the aggrieved party will
challenge the decision on the issue of status before higher fora.
This would delay decision on main issue relating to validity of
termination. Therefore, it would be appropriate to avoid
multiplicity of litigation and decide all the issues together.
(emphasis added)
21.On the other hand, Mr. Pai has relied upon my judgment in Sarika
Hemchand Pradhan (supra) in support of his contention that there
cannot be any inflexible principle that issue as to status of a person as
workman can never be decided as a preliminary issue. After referring to
the judgment of the Apex Court in V.G. Jagdishan (supra) this Court held
that there is some window open for the industrial adjudicator to decide
the issue relating to territorial jurisdiction as preliminary issue. This
Court further held in paragraphs 9 and 10 of the judgment as under:
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9) Also, considering the peculiar facts and circumstances of the present
case, I am not inclined to interfere in the impugned Award only on the
ground that it decided the issue of status as a preliminary issue. In the
present case, the Labour Court decided to try Issue No.1 as preliminary
issue by order dated 3 January 2025. The order was passed on
application preferred by the Respondent. There is nothing on record to
suggest that the Petitioner opposed the said application relying on
judgments of the Apex Court in D. P. Maheshwari or Ramesh Chandra
Sankla. She permitted the Labour Court to pass order dated 3 January
2025. The Petitioner also did not challenge the order dated 3 January
2025 nor protested against the same and acquiesced in the same. After
passing of order dated 3 January 2025, Petitioner participated in the
further proceedings. She allowed the Labour Court to decide the issue
of status as a preliminary issue. By that time, the evidence of the
Petitioner was already on record. There was ample material available
before the Labour Court to make adjudication of issue of status.
Accordingly, the Labour Court proceeded with the enquiry into the
issue of status. Petitioner’s advocate advanced arguments on the issue
of status. She took a calculated chance of inviting decision on the
preliminary issue of status. It is only after the preliminary issue got
decided against her that she has turned around and has assailed the
Award dated 28 October 2025 contending that the issue of status could
not have been tried as a preliminary issue. Considering this peculiar
conduct of the Petitioner, I am not inclined to set aside the impugned
award only on the ground that the same decides the issue of status as a
preliminary issue.
10) It is also seen that in peculiar facts and circumstances of the
present case, once Petitioner is held to be not a workman, nothing
really survives to be adjudicated in the Reference. In that view,
participation by the Petitioner in the enquiry into the status has
resulted in final outcome of the Reference. Petitioner was aware of this
position, and this appears to be the reason why she participated in the
enquiry into the status without any demur. Now that the outcome of
enquiry is not favourable to her, she has turned around and has
questioned the propriety in deciding the issue of status as a
preliminary issue. This is yet another reason why this Court is not
inclined to interfere in the impugned Award only because a preliminary
issue was taken up for decision by the Labour Court.
22.Thus, in Sarika Hemchand Pradhan (supra) this Court did not
disturb the award of the Labour Court which had determined the issue as
status of the Petitioner therein as a preliminary issue. Considering the
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peculiar facts and circumstances of that case in Sarika Hemchand
Pradhan (supra) the Labour Court therein had decided to try Issue No.1
as preliminary issue on the basis of application preferred by the
employer. Petitioner therein did not oppose the said application and
permitted the Labour Court to issue direction for decision on the issue of
status as a preliminary issue. She further participated in determination
of the issue and invited an adverse order of the Labour Court. It is only
after the outcome of the enquiry was not favourable to her, she turned
around and questioned the propriety of the Labour Court in deciding the
issue of status as a preliminary issue. Thus, judgment of this Court in
Sarika Hemchand Pradhan (supra) cannot be read to mean as an
abstract principle that an industrial adjudicator can always decide the
issue as to status as workman under Section 2(s) of the ID Act as a
preliminary issue.
23.Mr. Pai has relied upon judgment of the Apex Court in Sonepat
Cooperative Sugar Mills Ltd. (supra) in which it is held in paragraphs 21
and 22 of the judgment as under:
21. It is now trite that the issue as to whether an employee answers the
description of a workman or not has to be determined on the basis of a
conclusive evidence. The said question, thus, would require full
consideration of all aspects of the matter.
22. The jurisdiction of the Industrial Court to make an award in the
dispute would depend upon a finding as to whether the concerned
employee is a workman or not. When such an issue is raised, the same
being a jurisdictional one, the findings of the Labour Court in that
behalf would be subject to judicial review.
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24.The judgment nowhere lays down a law that issue as to status can
be decided as a preliminary issue. All that is held by the Apex Court is
that when issue about status of the employee is raised the same being
jurisdictional one, the findings of the Labour Court in that behalf would
only be subject to judicial review. Reliance on the judgment in Sonepat
Cooperative Sugar Mills Ltd. (supra) on behalf of the Respondent is
therefore misplaced.
25.Lastly, Mr. Pai has relied upon judgment of this Court in H.S.
Rawat (supra) in which this Court has held that the Labour or Industrial
Court is not totally prohibited from deciding a preliminary issue by
referring to judgment of the Apex Court in Express Newspapers Ltd. vs.
Their Workers and Staff
9
. The judgment is rendered in the peculiar facts
of that case which are noted in paragraph 11 of the judgment as under:
11. In the present case, it is abundantly clear that there has been no
effort on the part of the management in either delaying or protracting
the proceedings in the courts below. On the other hand, the finding
which has been recorded by the Labour Court is that it was the
petitioner who had protracted the conduct of the proceedings. The
facts show that several adjournments were sought on behalf of the
petitioner, in fact, 30 of them as recorded by the employer in the
application dated 18th June, 1996. When the employer moved for the
dismissal of the application under section 33-C(2) on the ground that
the petitioner was not diligent in conducting the proceedings, it was
the petitioner who submitted that the employer must lead evidence
first since the issue as to whether he is a workman must be decided as a
preliminary issue. The order of the Labour Court dated 19th November,
1998 framing a preliminary issue was not challenged and was acted
upon. The witnesses of the employer were cross-examined by the
petitioner. It is only after the petitioner's turn came to lead his
evidence, that an application was filed to the effect that all issues
should be decided together. In the circumstances, I am of the view that
9 1962 (II) LLJ 227
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the interference of this Court is not called for under Article 226 of the
Constitution having regard to the conduct of the petitioner and the
circumstances which have been adverted to above.
26.Thus, in H.S. Rawat (supra), the order passed by the Labour Court
framing preliminary issue was not challenged and was acted upon. It was
further held that the employee therein had protracted the conduct of
proceedings. Therefore, even judgment in H.S. Rawat, rendered in
peculiar facts that case, cannot be read in support of the principle that
Labour/Industrial Courts can decide the issue as to the status of the
employee as a preliminary issue.
27.In the facts of the present case, deciding the issue as to status of
Petitioner as workman under Section 2(s) of the ID Act as a preliminary
issue would undoubtedly protract the proceedings. The complaint is
pending since the year 2013 and by now period of 13 long years has
elapsed and the only progress which is made in the complaint is about
decision of two preliminary issues relating to fairness in the inquiry and
perversity in the findings of inquiry report vide part I order dated 22
February 2021. If Industrial Court was not to pass the impugned order,
the Complaint would have been long since decided as the Respondent
would have led evidence to justify its action before the Labour Court.
However, on account of passing of the impugned order dated 3 May 2023
by the Industrial Court decision of the Complaint is withheld. The
Industrial Court ought to have been alive to the fact that its order would
result in further delay in decision of the Complaint, which is pending for
the last 13 long years. The reason why the Apex Court has directed
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decision of issue as to status alongwith other issues has actually
occurred in the present case. The Industrial Court has not applied its
mind to this position and has mechanically directed that wherever issue
of status is raised together with the issue of fairness in the inquiry, even
the issue as to status must be tried as a preliminary issue. There is no
such law laid down by any Court. The Industrial Court has thus recorded
findings in the teeth of settled position of law. The order of the
Industrial Court is thus clearly unsustainable and liable to be set aside.
28.The Labour Court has already decided issues relating to fairness in
the inquiry and perversity in the findings of inquiry report by Part-I
order dated 22 February 2021. The Respondent has so far not challenged
the order dated 22 February 2021. In the peculiar facts of the present
case, if Respondent-employer is intending to challenge Part-I Order
dated 22 February 2021, such challenge needs to be postponed till final
decision of the Complaint. This course of action is necessary to ensure
that the Complaint is decided in an expeditious manner. Such course of
action is also necessary since the issue of status of Petitioner also needs
to be decided and decision thereon is directed to be taken while finally
deciding the Complaint. Accordingly, liberty needs to be kept open to the
Respondent to challenge the order dated 22 February 2021 together with
final judgment and order of the Labour Court in case the same goes
against it. Thus, the Respondent-employer can now justify its action by
leading evidence before the Labour Court. While conducting the inquiry
into remaining issues, the Labour Court shall also decide the issue as to
whether Petitioner is a workman or not.
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29.The Petition accordingly succeeds and I proceed to pass the
following order:
i.Judgment and order dated 3 May 2023 passed by the learned
Member, Industrial Court, Thane in Revision (ULP) No.18 of
2021 is set aside.
ii.The Labour Court shall proceed to decide the Issue No.1 about
status of Petitioner as ‘workman’ under Section 2(s) of the ID
Act while deciding issue Nos.4 to 7.
iii.Respondent shall be at liberty to challenge part-I Order dated
22 February 2021 in the event the final judgment and order in
Complaint (ULP) No.128 of 2013 is decided against it.
iv.All contentions of parties on merits are expressly kept open.
30.With the above directions, the Writ Petition is allowed and
disposed of. Rule is made absolute. There shall be no order as to costs.
(SANDEEP V. MARNE, J.)
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