MUMBAI: In a setback to Kingfisher
Airlines, the high court on Tuesday held that the labour
court has exclusive jurisdiction to decide matters related to payment of
salaries and dues payable to its employees.
Justice R P Sondur Baldota was hearing a petition by the airline challenging the labour court's rejection of its objection that the company's chief executive officer only can decide industrial disputes.
Pilots Karl Wykes and Prithvi Malhotra had filed an application in the Central Government Industrial Tribunal and labour court in July 2012 regarding their unpaid wages since December 2011. But the airline's defence was that in their appointment letter it is stated that the CEO is the sole arbitrator to decide any dispute between employer and employee. It added that the labour court has no jurisdiction and should refer the dispute to the arbitrator. In its October 2012 order, the labour court rejected this objection, holding that it has exclusive jurisdiction to decide industrial disputes.
Justice R P Sondur Baldota was hearing a petition by the airline challenging the labour court's rejection of its objection that the company's chief executive officer only can decide industrial disputes.
Pilots Karl Wykes and Prithvi Malhotra had filed an application in the Central Government Industrial Tribunal and labour court in July 2012 regarding their unpaid wages since December 2011. But the airline's defence was that in their appointment letter it is stated that the CEO is the sole arbitrator to decide any dispute between employer and employee. It added that the labour court has no jurisdiction and should refer the dispute to the arbitrator. In its October 2012 order, the labour court rejected this objection, holding that it has exclusive jurisdiction to decide industrial disputes.
Kingfisher's counsel Navroze Seervaai argued
before the HC that under Section 8 of the Arbitration and Conciliation Act, if
there is an arbitral agreement between parties, then any judicial authority,
including the labour court, should refer parties to arbitration.
The pilots' advocate, S C Naidu, countered that the labour court is a special court and the Industrial Disputes Act is a special enactment having a special procedure for arbitration. He said in comparison the Arbitration and Conciliation Act, which is a general act, has to yield to the special act. Therefore, the labour court alone can try the dispute between the airline and its employees, added Naidu.
The pilots' advocate, S C Naidu, countered that the labour court is a special court and the Industrial Disputes Act is a special enactment having a special procedure for arbitration. He said in comparison the Arbitration and Conciliation Act, which is a general act, has to yield to the special act. Therefore, the labour court alone can try the dispute between the airline and its employees, added Naidu.
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