Labour Court lacks jurisdiction to adjudicate a reference when the underlying cause of action becomes non-existent.

The Bihar State Road Transport Corporation (Petitioner) challenged an award dated 30.11.2011 passed by the Labour Court, Patna in Reference Case No. 17 of 2003.

The reference was initiated following the termination of a workman, Shyamnandan Singh, on 12.05.2001.

During the pendency of the proceedings, the Petitioner-management set aside the termination order on 11.04.2008, treated the workman’s service as continuous until his superannuation on 31.07.2004, and paid his retiral benefits.

Despite the management's non-appearance leading to an ex parte order, the Labour Court proceeded to adjudicate the validity of the now-extinguished termination and passed an award in favor of the workman's legal heir.

1. Whether the Labour Court was competent to pass an award on a reference when the core question framed in the reference had become non-existent due to the reinstatement and subsequent superannuation of the workman.

The Court applied the fundamental principles of adjudication under the Industrial Disputes Act, 1947, which requires a subsisting "industrial dispute" for valid adjudication.

It further invoked Section 11 of the Industrial Disputes Act, 1947, which mandates that authorities follow procedures and principles analogous to the Code of Civil Procedure, 1908 (CPC).

Central to this is the doctrine of "cause of action," which dictates that for a court to exercise jurisdiction and grant relief, there must be a surviving legal grievance or a live dispute to resolve.

The Court observed that the reference was specifically framed to determine if the termination dated 12.05.2001 was justified.

However, by 11.04.2008, the Petitioner had voluntarily revoked the termination, restored the workman’s service continuity, and settled retiral dues.

The workman accepted the reinstatement and did not challenge the denial of back wages before any authority, rendering that decision final.

The High Court reasoned that since the termination order ceased to exist years before the final award, the "cause of action" was extinguished.

Applying principles analogous to the CPC, the Court held that the Labour Court acted without jurisdiction by adjudicating a non-existent issue, especially since no amendments were sought to claim alternative reliefs.

The High Court ruled that the Labour Court's award was bad in law and lacked jurisdiction as it was based on a non-existent reference.

Consequently, the award dated 30.11.2011 passed in Reference Case No. 17 of 2003 was set aside.