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Labour and industrial dispute lawyer: the labour Court cannot travel beyond the terms of reference made by the government; SC.

Supreme Court of India

Justice R Subhash Reddy

In the case titled as "Globe Group India Employees Union Versus Lufthansa German Airlines and another",  the question falling for consideration before the Supreme Court of India was whether the holding company can be impleaded as a party before the labour Court, when the reference is only made against the subsidiary company.

The Supreme Court of India has held that the parent company cannot be made party to the labour proceedings merely because the company is holding company of the Other Company against which labour dispute has been referred; and the same is not a ground for impleading of the parent company. It was further held that the corporate veil cannot be pierced until and unless it is shown that corporate form is misused to accomplish certain wrongful purposes.

It was also held that the labour Court only has to decide the reference made by the government and the issues incidental thereto only; as per section 10 (4) of the industrial dispute act. It cannot travel beyond the terms of reference.


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