Civil Court Has Jurisdiction To Pass Injunctive Relief In Industrial Disputes: Madras HC

Background

M. Nagappan, in his capacity as Secretary of the Workers Union, had filed an industrial dispute (I.D.No.3 of 2023) on behalf of workers from TAW Footwear Division (“TAW”). However, he later alleged that TAW was attempting to sell its machinery and other assets before the conclusion of this pending industrial dispute. Nagappan argued that if the sale went through, the workers would not have anything left to recover from TAW even if they later won their case. Thus, he filed another civil suit in the District Munsif Court, seeking a prohibitory injunction to restrain TAW from selling its assets until the industrial dispute was concluded.

However, the District Munsif rejected the plaint, stating that the matter was an industrial dispute and fell exclusively within the Labour Court's jurisdiction under the Industrial Disputes Act. Aggrieved, Nagappan challenged this order by filing a civil revision petition before the High Court.

Arguments

Nagappan argued that the District Munsif was wrong in holding that civil courts lacked jurisdiction over the matter. Citing Premier Automobiles Ltd. v. Kamalakar Shantharam Wadke [1975 (2) LLJ 445 SC], he emphasized that the jurisdiction of civil courts would be ousted only if the Labour Court was explicitly empowered to grant the relief sought. Since the Industrial Disputes Act does not allow Labour Courts to pass any interim injunctions, Nagappan contended that civil courts are the only option.

TAW did not argue before the High Court.

Court's Reasoning

The court reiterated that the jurisdiction of civil courts can only be excluded when explicitly barred by statute. Referring to Premier Automobiles Limited v. Kamalakar Shantharam Wadke [1975 (2) LLJ-0445-SC], the court ruled that civil courts have jurisdiction over matters that are not specifically mentioned under the Industrial Disputes Act. In this case, Nagappan sought an interim injunction—a remedy not available under the Act. Thus, the court held that it has the jurisdiction to pass the relief. It clarified, that if a dispute is not an industrial dispute and it does not relate to the enforcement of any right under the Act, the remedy lies only before the Civil Court.

Thus, the High Court allowed the civil revision petition. It set aside the District Munsif's order and directed the labour court to accept Nagappan's plaint.

Date: 21 December 2024

Case No. C.R.P. No. 5230 of 2024 |

Case Title: M. Nagappan v. The Management

Citation: 2024 LiveLaw (Mad) 5 

Counsel For the Petitioner: Mr. S.T. Varadarajulu