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Legal Case Shots

Court judgements broken down into the case type, how the decision played out, and the lesson worth remembering, with the full judgement available as a PDF.

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Legal Case Shots is a searchable database of Supreme Court of India judgments, each broken down into the case type, the court's key holding, and a practical lesson learnt, with the full judgment available as a PDF for citation or deeper reading.

Labour & Industrial LawSupreme Court of India

Cement Workers' Mandal v. Global Cements Ltd. (HMP Cements Ltd.) & Ors.

Civil Appeal · 2019 INSC 197Decided 14 Feb 2019
Civil Appeal No. 5360 of 2010
Justice Abhay Manohar Sapre · Justice Dinesh Maheshwari

Background

A cement factory in Porbandar, Gujarat, run by the respondent-company, closed in 1998 without paying roughly 500 workers' outstanding wages. The workers' union obtained a wage-recovery order from the Labour Court at Junagadh (Gujarat), but it went unexecuted after a bank separately had the company's assets ordered to be sold through the Debt Recovery Tribunal at Calcutta. The union then filed a writ petition in the Gujarat High Court, which a Single Judge entertained, but a Division Bench of the same High Court later held in a Letters Patent Appeal that the Gujarat High Court lacked territorial jurisdiction to hear it at all, prompting this appeal to the Supreme Court.

Decision Breakdown

The Supreme Court held that under Article 226(2) of the Constitution, a High Court has jurisdiction wherever any part of the "cause of action" arises, even if the authority being challenged is based elsewhere. Since the respondent-company's factory was in Gujarat, the Labour Court that passed the original wage-recovery order was in Gujarat, and the dispute concerned non-payment of wages to workers employed at that Gujarat factory, the Court found that part of the cause of action clearly arose within Gujarat. It therefore allowed the appeal, set aside the Division Bench's ruling, and restored the Single Judge's finding that the writ petition was maintainable in the Gujarat High Court, sending the case back to the Single Judge to decide the petition on its merits (uninfluenced by either court's earlier observations), with a request to decide it within six months given its age.

Lesson Learnt

A High Court can hear a case even against a company or authority based in another state, as long as some part of the events giving rise to the dispute, such as the workplace, the original order, or the obligation itself, occurred within that High Court's territory.

Cement Workers' Mandal v. Global Cements Ltd. (HMP Cements Ltd.) & Ors. – Legal Case Shots | LegalAware