Shareholders cannot be Impleaded Independently under Industrial Disputes Act: HC

Rubber Wood India Pvt. Ltd. Vs Manojkumar P.S. (Kerala High Court)

Conclusion: In present facts of the case, certain question of law was raised before Hon’ble High Court vide Writ Petitions. But the main question to be decided was that whether a shareholder could be made party to the proceedings under the Industrial Dispute Act to which the answer was in negative and it was held that the Government is not denuded from running a company holding majority of the shareholder. But the shareholder independently cannot be made a party for adjudication of the lis.

Facts: In this case two Writ petitions have been filed having common questions of fact and law. The main questions which were to be considered are as under:

(i) declare that the Petitioner, who is a mere shareholder, cannot be made a party to proceedings under the ID Act. (First Petition)

(ii) declare that the State Government is the appropriate Government under the scheme of the Industrial Disputes Act as far as the 1^st petitioner is concerned. (Second Petition).

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