LegalAware
LegalAware.ai
EMPOWERING LEGAL AWARENESS

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.

Official source (sci.gov.in)View Judgment (PDF)

More rulings in Labour & Industrial Law

Labour & Industrial LawDelhi High Court

DTC vs. Shri Braham Prakash

The Court held that a writ court exercising supervisory jurisdiction cannot re-appreciate evidence like an appellate court, and can interfere only if the Tribunal's view was not a plausible one. It found the Tribunal's reasoning sound: the surrendered "unpunched tickets" bore signatures that didn't match the conductor's admitted signature, casting doubt on the management's case, and the sole checking-staff witness was uncorroborated. However, since more than three decades had passed, the workman had already reached superannuation, and he had been paid wages under Section 17-B of the Industrial Disputes Act throughout, the Court held reinstatement itself was no longer appropriate. It modified the award to a lumpsum compensation of Rs. 4,00,000 in lieu of reinstatement.

Decided 17 Sept 2026Read case
Labour & Industrial LawDelhi High Court

Indian Oil Corporation Ltd vs. Raj Kumar

The Court held that Section 11A of the Industrial Disputes Act expressly empowers a Labour Court to modify a disproportionate punishment even where the misconduct itself is proved. Since the Tribunal had not disturbed the finding of guilt and had only exercised its discretion on quantum, considering the workman's long service and disability, the Court found this to be a plausible and reasoned view. A writ court exercising supervisory jurisdiction does not substitute its own view merely because another view on punishment is also possible.

Decided 17 Sept 2026Read case
Labour & Industrial LawDelhi High Court

Varun Juneja vs. Soniya

The High Court revised the compensation upward, since the employer had itself admitted paying the deceased Rs. 18,000 per month (not the lower Rs. 15,000 minimum-wage figure the Commissioner had used), raising the total compensation to Rs. 15,57,680. On the separate question of penalty, the employer argued the maximum 50% penalty was too harsh, but the Court upheld it, noting the employer only deposited money after the family was forced to start recovery proceedings, more than three and a half years after the death, with no voluntary payment at any point.

Decided 17 Sept 2026Read case
Labour & Industrial LawDelhi High Court

Sri Bhagwan vs. Delhi Transport Corporation

The Court found the Tribunal had rightly relied on the workman's own clear admission in his enquiry reply, and that he never produced any medical evidence to back his claim of having been unwell. It rejected the argument that a small monetary amount automatically makes dismissal disproportionate, citing Supreme Court rulings that in cases of dishonesty or fraud (as opposed to mere carelessness), even a petty misappropriated sum can justify dismissal, because it is the breach of trust, not the rupee amount, that matters. Given the workman's admission and prior disciplinary history, the removal was upheld and the petition dismissed.

Decided 16 Sept 2026Read case
Labour & Industrial LawDelhi High Court

Delhi Transport Corporation vs. Balwan Singh

The Court held that non-examination of the ticketless passengers does not by itself invalidate the enquiry: credible hearsay evidence from checking staff, corroborated by signed passenger statements, was enough to prove the misconduct on a preponderance of probabilities. It agreed the Labour Court should not have shown leniency on punishment purely on sympathetic grounds once guilt was affirmed, citing Supreme Court rulings that even small-value ticket fraud can justify removal since it is a breach of trust, not merely a monetary loss. However, since the Labour Court's actual interference was limited to preserving pension/retiral benefits (not full reinstatement), the Court chose not to strip that narrow relief away after more than a decade, but capped the total payout at ₹5,00,000, to be released from the sum already deposited with the Court.

Decided 16 Sept 2026Read case
Labour & Industrial LawDelhi High Court

Sunil Kumar vs. M/S Delhi Metro Rail Corporation Ltd.

The High Court held that its power to review the tribunal's factual findings is very limited, and it would not re-weigh evidence just because another view was possible. It upheld the tribunal's findings that all three charges of misconduct were proved through credible witness testimony, rejecting the driver's technical objections (such as an attendance register not showing his name, which if anything supported the charge of unauthorized absence). However, the Court excluded from consideration one aspect of the evidence: testimony about a 2010 incident that occurred after his removal, which the tribunal itself had earlier ruled irrelevant but then still referenced. Despite upholding the misconduct findings, the Court found the punishment of outright removal "shockingly disproportionate" given the relatively minor nature of the proven acts and his 8-9 years of otherwise satisfactory service.

Decided 16 Sept 2026Read case