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The High Court of Delhi through its Judgment dated 11.05.2026 in Rajeshwar Dayal Aggarwal v. M/s. Enicar Machine (India)1 upheld the Award passed by the Labour Court (“Award”) holding that the Government of NCT of Delhi was not the “Appropriate Government” competent to make the reference for adjudication of the industrial dispute, since Mr. Rajeshwar was employed and allegedly terminated at Faridabad, Haryana.
In the present case, Mr. Rajeshwar alleged that his termination by Enicar Machine (India) (“Enicar”) was illegal. The issue of territorial jurisdiction went to the very root of the adjudicatory competence of the learned Labour Court. Although conciliation proceedings were initiated in Delhi and the dispute was referred to the Labour Court in Delhi, Enicar raised a preliminary objection contending that the dispute substantially arose in Haryana, as both the employment and the alleged termination were not in Delhi.
The Court observed that although the Industrial Disputes Act, 1947 does not contain any express provision prescribing territorial jurisdiction of Labour Courts, but Courts have consistently held that the jurisdiction of a Labour Court must have a direct and substantial nexus with the territory of the Government making the reference. The Court reiterated that the determinative factor for territorial jurisdiction is the situs of employment and the place where termination takes effect. The Court inter alia held that old documents showing Delhi addresses of the management could not confer jurisdiction upon Delhi when Mr. Rajeshwar himself admitted that he was employed and terminated at Faridabad. Accordingly, the High Court upheld the Award and dismissed the writ petition.
Footnotes
1 W.P. (C) 9849 of 2016.
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