Delhi High Court

Situs of employment and place where the dispute arises determine territorial jurisdiction in industrial disputes.

Tek Chand v. JPFL Films Private Limited [2026:DHC:628]

Delhi High CourtJUDGMENT: no citation2 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner was appointed as a Plant Operator by the Respondent via an appointment letter dated 20.11.2003 issued from the Respondent’s Delhi office

Source reference: p. 2

However, he was posted at the Nasik Plant in Maharashtra, where he performed all duties

Source reference: p. 2

On 18.05.2004, the Petitioner suffered a grievous injury resulting in the amputation of his right arm while operating machinery at the Nasik Plant

Source reference: p. 2

Upon recovery in September 2004, the Petitioner alleged he was orally denied permission to resume duties, which he termed as illegal termination

Source reference: p. 2

While he successfully claimed compensation under the Workmen’s Compensation Act at Delhi

Source reference: p. 3

the Labor Court-XVI, Delhi, vide Award dated 27.11.2006, dismissed his industrial dispute claim on the preliminary ground that it lacked territorial jurisdiction

Source reference: p. 4

The Petitioner challenged this Award via the present writ petition

Source reference: p. 4
02

Issues

Whether the Labour Court at Delhi possessed territorial jurisdiction to adjudicate an industrial dispute where the workman was posted and allegedly terminated outside Delhi, despite the appointment letter being issued from Delhi

Source reference: p. 10 / para. 31
03

Law Applied

The Court relied on the principle that territorial jurisdiction under the Industrial Disputes Act, 1947 is determined by the "situs of employment" and where the "cause of action" substantially arises

Source reference: p. 12

It applied the "bundle of facts" test for cause of action from *Om Prakash Srivastava v. Union of India*

Source reference: p. 13

The Court followed *V.G. Jagdishan v. Indofos Industries Ltd.*, establishing that the location of a Head Office or the service of a demand notice from a specific city does not confer jurisdiction if the employment and termination occurred elsewhere

Source reference: p. 14

Furthermore, it distinguished Section 21 of the Employee’s Compensation Act, 1923, which allows for filings at the employer's registered office, noting that the Industrial Disputes Act contains no such enabling provision

Source reference: p. 19-20
04

Reasoning

The Court reasoned that the "situs of employment" is the paramount factor in determining jurisdiction

Source reference: p. 16

Although the appointment letter originated in Delhi, the Petitioner’s entire service, the accident, and the subsequent denial of entry (the alleged oral termination) occurred exclusively at the Nasik Plant

Source reference: p. 11

The Court found that administrative factors, such as the location of the corporate office or the place of interview, are incidental and do not create a "substantial nexus" with the forum

Source reference: p. 12, 17

It specifically noted that the successful compensation claim in Delhi did not create jurisdiction for the industrial dispute because the Employee’s Compensation Act has specific statutory language regarding "registered offices" that the Industrial Disputes Act lacks

Source reference: p. 20

Consequently, the "bundle of material facts" constituting the grievance occurred in Nasik, not Delhi

Source reference: para. 48
05

Holding

The High Court upheld the Impugned Award, holding that the Delhi Labour Court correctly declined jurisdiction

The Court concluded that jurisdiction lies with the competent court in Nasik

Source reference: p. 22

The writ petition was dismissed, but the Petitioner was granted liberty to approach the appropriate Labour Court in Nasik, with the benefit of Section 14 of the Limitation Act for the time spent pursuing the wrong forum

Source reference: p. 22
Delhi High Court

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Tek Chand v. JPFL Films Private Limited [2026:DHC:628]

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