Sun Pharma Labour Disputes Case : High Court Sets Aside Industrial Court Order – Jurisdiction Key in Employee Termination Dispute
Sun Pharma Labour Disputes Case
📝 High Court Sets Aside Industrial Court Order | Jurisdiction Key in Employee Termination Dispute
Sun Pharma Labour Dispute
📍 Source: Madhya Pradesh High Court, Indore Bench
👨⚖️ Judges: Hon’ble Justice Vivek Rusia & Hon’ble Justice Binod Kumar Dwivedi
📄 Neutral Citation: 2025:MPHC-IND:14477
⚖️ Case Summary:
The Madhya Pradesh High Court, Indore Bench, in a significant ruling dated 18 June 2025, allowed the petitions filed by Sun Pharmaceutical Industries Ltd. in relation to the transfer and termination of employees, including Gyan Singh Thakur. The Court held that the Labour Court, Dewas, lacked territorial jurisdiction to entertain the challenge against termination initiated by the Dadra Nagar Haveli unit of Sun Pharma.
📚 Legal Background:
- Employee Transfer (2018): Gyan Singh Thakur, along with 13 others, was transferred from Dewas (M.P.) to Dadra Nagar Haveli.
- Initial Challenge: Employees challenged the transfer under the MP Industrial Relations Act, 1960, and MP Industrial Disputes Act, 1947.
- Outcome (2019): Labour Court upheld the transfer. Industrial Court partially allowed appeals. High Court reversed the Industrial Court’s order. Supreme Court declined interference.
⚠️ Termination Action:
- Gyan Singh Thakur did not join the new place of posting.
- He was issued a chargesheet for willful insubordination and unauthorized absence.
- A disciplinary inquiry was initiated, and he was terminated on 09.04.2021.
🔁 Fresh Litigation:
Gyan Singh again approached Labour Court, Dewas seeking:
- Cancellation of transfer and termination.
- Reinstatement and back wages.
- Compensation for legal expenses.
🧑⚖️ Labour & Industrial Court Decisions:
- Labour Court: Dismissed on res judicata.
- Industrial Court (2023): Held that challenge to termination is maintainable.
🏛️ High Court Findings:
- Transfer challenge is barred by res judicata.
- Dadra Nagar Haveli unit is outside the purview of MPIR Act.
- Termination issued by Dadra unit means Dewas Court lacks jurisdiction.
- No employer-employee relationship existed with Dewas after transfer compliance.
📌 Final Order:
- The Industrial Court’s order dated 18.01.2023 is set aside.
- Gyan Singh Thakur must approach the appropriate court at Dadra Nagar Haveli.
- All related petitions were allowed in favour of Sun Pharma.
📣 Conclusion:
This judgment underscores the importance of territorial jurisdiction in labour disputes and confirms that once an employee is transferred and relieved, the disciplinary authority shifts to the new unit. A valuable precedent in industrial jurisprudence for multistate employers and HR compliance.
Keyword -
Sun Pharma Labour Dispute, Gyan Singh Thakur Termination, Transfer Order Legal Challenge, MP High Court Labour Case, Jurisdiction in Labour Law, MPIR Act vs Industrial Disputes Act, Sun Pharmaceutical Court Case, Employment Termination Legal, Territorial Jurisdiction Labour Court, Labour Court Dewas
Comments