Manjeet Global Private Limited Vs State of Madhya Pradesh And Others (Madhya Pradesh High Court)
The Madhya Pradesh High Court addressed the issue of whether the Labour Court can issue a notice to an establishment that is not a direct party to the reference in a labor dispute. The case was brought before the court by Manjeet Global Private Limited, challenging a decision by the Labour Commissioner, M.P., which referred a matter involving the transfer of assets and the payment of compensation under Section 25-FF of the Industrial Disputes Act (ID Act) to the Labour Court. The issue at hand was whether the transfer made by Century Yarn and Century Denum Unit to Manjeet Global Pvt. Ltd. and Manjeet Cotton Pvt. Ltd. was valid, and if not, what relief the affected laborers were entitled to.
The appellants, in their writ petitions, argued that while they did not contest the reference between the union and the respondent, they should not be included in the reference as they were not parties to the original proceedings. They contended that since they had acquired the respondent’s unit only in July 2021, and the laborers of the respondent were never employees of the appellants, they could not be held responsible for compensation. However, the learned Single Judge found no merit in the appellants’ argument, affirming that the Labour Court has the authority to issue notices to any relevant party, including those not originally involved in the reference.
