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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

Milkhi Ram v. Himachal Pradesh State Electricity Board

Civil Appeal · 2021 INSC 638Decided 8 Oct 2021
Civil Appeal No. 1346 of 2010
Justice R. Subhash Reddy · Justice Hrishikesh Roy

Background

Milkhi Ram, a daily-wage employee of the Himachal Pradesh State Electricity Board, had his services terminated in 1985 and sued in a civil court, winning reinstatement and back wages on the ground he had completed over 240 days of continuous service. The Board's appeals were repeatedly rejected, but when the decree reached the execution stage, the Board argued for the first time that the civil court never had jurisdiction because the claim was really founded on the Industrial Disputes Act, 1947, which required the dispute to go to a labour/industrial court instead. The High Court agreed and set aside the decree as a nullity, even at the execution stage, prompting the employee's appeal to the Supreme Court.

Decision Breakdown

The Supreme Court upheld the High Court's view that since the employee's claim was expressly founded on provisions of the Industrial Disputes Act, the ordinary civil court had no jurisdiction to entertain the suit, and a decree passed without jurisdiction is a nullity that can be challenged even at the execution stage. The Court traced this principle through its own precedents on Rajasthan SRTC employees and held the civil court's decree in Milkhi Ram's favour could not stand. However, taking a humane view of the hardship to the long-terminated worker, the Court directed that the back wages already paid to him need not be recovered. The appeal was dismissed on the jurisdiction point, but the recovery of money already paid was waived.

Lesson Learnt

If your claim for reinstatement or back wages is based on protections under the Industrial Disputes Act, you generally must approach the labour/industrial court, not a civil court, and an objection to jurisdiction can be raised even years later at the stage of executing a decree.

Milkhi Ram v. Himachal Pradesh State Electricity Board – Legal Case Shots | LegalAware