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. 2However, he was posted at the Nasik Plant in Maharashtra, where he performed all duties
Source reference: p. 2On 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. 2Upon recovery in September 2004, the Petitioner alleged he was orally denied permission to resume duties, which he termed as illegal termination
Source reference: p. 2While he successfully claimed compensation under the Workmen’s Compensation Act at Delhi
Source reference: p. 3the 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. 4The Petitioner challenged this Award via the present writ petition
Source reference: p. 4Issues
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. 31Law 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. 12It applied the "bundle of facts" test for cause of action from *Om Prakash Srivastava v. Union of India*
Source reference: p. 13The 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. 14Furthermore, 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. 19-20Reasoning
The Court reasoned that the "situs of employment" is the paramount factor in determining jurisdiction
Source reference: p. 16Although 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. 11The 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, 17It 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. 20Consequently, the "bundle of material facts" constituting the grievance occurred in Nasik, not Delhi
Source reference: para. 48Holding
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. 22The 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. 22Original Court PDF
Tek Chand v. JPFL Films Private Limited [2026:DHC:628]
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