Delhi High Court

Situs of Employment and Place of Termination Determine Territorial Jurisdiction and Appropriate Government for Industrial Disputes.

Rajeshwar Dayal Aggarwal vs M/S Enicar Machine (India)

Delhi High CourtJUDGMENT: May 11, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner claimed to have worked for the Respondent management from 1978 until November 2009

Source reference: para 2

He alleged that while working at the Faridabad (Haryana) establishment, he was orally terminated on 27.11.2009

Source reference: para 3

Following a demand notice and failed conciliation, the Govt. of NCT of Delhi referred the dispute to the Labour Court

Source reference: para 4

The Respondent raised a preliminary objection regarding territorial jurisdiction, arguing that the cause of action arose in Haryana

Source reference: para 6

The Labour Court, via Award dated 03.07.2015, ruled that the Delhi Government was not the "appropriate Government" as the situs of employment was Faridabad

Source reference: para 7

The Petitioner challenged this Award via the present writ petition

Source reference: para 8
02

Issues

1. Whether the Government of NCT of Delhi was the "appropriate Government" competent to refer the industrial dispute under the Industrial Disputes Act, 1947

Source reference: para 21

2. Whether the territorial jurisdiction of a Labour Court is determined by the situs of employment and the place where the cause of action substantially arises

Source reference: para 31
03

Law Applied

Section 2(a) of the Industrial Disputes Act, 1947, defining "appropriate Government"

Source reference: p. 11, para 31

The principle that territorial jurisdiction is determined by the "situs of employment" and where the dispute substantially arises, as established in V.G. Jagdishan v. Indofos Industries Ltd.

Source reference: p. 12, para 33

The mere existence of a head office in a state does not confer jurisdiction if the cause of action (termination) occurred elsewhere as per Eastern Coalfields Ltd. v. Kalyan Banerjee

Source reference: p. 13, para 34

The limitations of judicial review under Article 226 as per Syed Yakoob v. K.S. Radhakrishnan, prohibiting re-appreciation of evidence unless there is perversity

Source reference: p. 19, para 51
04

Reasoning

The Court observed that the Petitioner’s own statement of claim explicitly admitted he was working in Faridabad, Haryana, at the time of the alleged termination

Source reference: para 37-38

This judicial admission regarding the situs of employment was deemed binding

Source reference: para 40-41

The Petitioner’s reliance on old delivery challans (1980) and bills (1996) with Delhi addresses was rejected because they were not contemporaneous to the 2009 dispute and did not override the admitted situs of employment

Source reference: para 43

Since the employment and the termination both occurred in Haryana, the Government of NCT of Delhi lacked the nexus required to be the "appropriate Government"

Source reference: para 39

The Labour Court correctly declined to rule on merits after finding it lacked jurisdiction, as any such adjudication would be a nullity

Source reference: para 46
05

Holding

The High Court upheld the Labour Court’s Award, holding that the Government of NCT of Delhi was not the "appropriate Government" for the reference

The Court dismissed the writ petition, affirming that territorial jurisdiction in industrial disputes correlates to the place where the worker was last employed and where the termination took effect

Source reference: para 55

The Petitioner was granted liberty to approach the appropriate forum/Government in Haryana

Source reference: para 57

No order as to costs was made

Source reference: para 58
Delhi High Court

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Rajeshwar Dayal AggarwalvsM/S Enicar Machine (India)

Delhi High Court · May 11, 2026

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