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Home Jammu Kashmir

Disputes between J&K Bank, its workers can be adjudicated by Tribunal: HC

News Desk by News Desk
January 12, 2025
in Jammu Kashmir
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The High Court has held that the disputes between the Jammu and Kashmir Bank and its workmen can only be adjudicated upon by the Administrative Tribunal established by the Central Government and it may refer the dispute to Labour Court.

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The controversy of jurisdiction arose after an aggrieved person moved an application under Industrial Disputes Act, before the Industrial Tribunal Cum Labour Court J&K at Srinagar, praying thereby that his voluntary vacation and cessation order of his services passed by the bank be declared as null and void and the Bank be directed to reinState him in services with immediate effect with all the consequential service benefits

The Bank raised a preliminary objection with regard to the jurisdiction of the Industrial Tribunal cum Labour Court of J&K at Srinagar on the ground that the appropriate Government in respect of Banking is a Central Government, therefore, the Industrial Tribunal Cum Labour Court J&K at Srinagar being the State Industrial Tribunal/Labour Court has no jurisdiction to try the matter.

But after hearing the parties, the Industrial Tribunal Cum Labour Court J&K at Srinagar vide its order dated 13.03.2019 rejected the preliminary objection raised by the bank by arriving at a conclusion that the State Government is the ‘appropriate Government’ for the bank and the Industrial Tribunal Labour Court established by the State Government shall have the jurisdiction to adjudicate the application filed by the aggrieved person.

Justice Rajnesh Oswal while clarifying the question of jurisdiction has held that only the labour court or Industrial tribunal, established by the Central Government, shall have power to adjudicate an industrial dispute between the Jammu & Kashmir Bank and its workman and the Central Government has discretion and may refer the dispute to the labour court or Industrial Tribunal established by the State Government and in that eventuality only, the labour court or Industrial Tribunal established by the State Government shall have jurisdiction to adjudicate the same.

 

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“…this court is of the considered view that in case of industrial dispute between the Jammu and Kashmir Bank Ltd. and its workman, the appropriate Government would be ‘the Central Government,” the court has held and decided the question as to whether in case of industrial dispute between Jammu & Kashmir Bank Ltd. and its workman, the Central Government or the Government of UT of J&K is the forum to settle such issues between the bank and the workmen in terms of the Industrial Disputes Act.

Justice Oswal has elabsorated that the proviso to section 10 of the Industrial Disputes Act revealed that the dispute, where the Central Government is the appropriate Government, it shall be within the competence of that Government to refer the dispute to a labour court or the Industrial Tribunal, as the case may be, constituted by the State Government.

“Thus, the Central Government can refer the dispute to a labour court or Industrial Tribunal, constituted by the State Government, but otherwise the Industrial Tribunal/Labour Court, established by the Central Government ordinarily shall have the jurisdiction to adjudicate the industrial dispute between the (J&K) bank and its workman,” the court said.

Justice Oswal said that the Jammu and Kashmir Bank Ltd. was incorporated as a public limited company under the Jammu and Kashmir Companies Regulations of 1977 on 01.10.1938 i.e. much before the commencement of the Central Laws (Extension to Jammu & Kashmir) Act, 1968 (25 of 1968). Thus, the Jammu and Kashmir Bank Ltd is an ‘existing company’ within the meaning of the Companies Act and is a ‘company’ in terms of the Companies Act, 1956. Further, section 2 (20) of the Companies Act 2013, provides that the company means company incorporated under this law or any previous law.

“Accordingly, it is held that in case of an industrial dispute between the J&K Bank Ltd. and its workman, only the labour court or Industrial tribunal, established by the Central Government, shall have power to adjudicate the same but the Central Government may refer the dispute to labour court or Industrial Tribunal established by the State Government and in that eventuality only, the labour court or Industrial Tribunal established by the State Government shall have jurisdiction to adjudicate the same.” (Daily Excelsior)

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