Gujarat High Court Dismisses Employee's Challenge to Preliminary Inquiry Validity Order in Industrial Dispute — Interim Order Not Final, Can Be Challenged After Final Award. The court held that a preliminary order on the legality of a departmental inquiry under the Industrial Disputes Act, 1947 is interlocutory and a writ petition against it is not maintainable; the employee can raise all grounds after the final award.

High Court: Gujarat High Court
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Case Note & Summary

The petitioner, an employee, filed a writ petition under Articles 226 and 227 of the Constitution of India read with the Industrial Disputes Act, 1947, challenging an order dated 06.07.2023 passed by the Labour Court, Vadodara, in Reference (LCV) No. 167 of 2014. The Labour Court had held that the departmental inquiry initiated by the respondent employer was legal, proper, and in compliance with principles of natural justice. The petitioner argued that the inquiry was illegal because he was not paid subsistence allowance, which was set off against a loan, and that the Labour Court failed to appreciate documentary evidence. The respondent contended that the writ petition was not maintainable as the preliminary issue could be challenged after the final award, relying on Cooper Engineering Limited vs. P.P. Mundhe, AIR 1975 SC 1900 and a coordinate bench decision. The High Court, after hearing both sides, held that the impugned order was interlocutory and not final, and thus the writ petition was not maintainable. The court dismissed the petition but directed the Labour Court to decide the reference expeditiously, preferably within six months, as the reference was from 2014. The court also clarified that the petitioner could raise all grounds, including the subsistence allowance issue, after the final award.

Headnote

A) Industrial Disputes Act, 1947 - Preliminary Issue - Maintainability of Writ Petition - The Labour Court's order on the legality of a departmental inquiry is an interlocutory order; a writ petition challenging it before the final award is not maintainable. The employee can raise all grounds, including non-payment of subsistence allowance, after the final award. (Paras 2, 6-7)

B) Industrial Disputes Act, 1947 - Departmental Inquiry - Subsistence Allowance - The contention that the inquiry was illegal due to non-payment of subsistence allowance being set off against a loan is a matter to be considered at the final stage, not in a preliminary writ petition. (Para 3)

C) Industrial Disputes Act, 1947 - Expeditious Disposal - The Labour Court is directed to decide the reference (LCV No. 167 of 2014) as expeditiously as possible, preferably within six months, given the reference is from 2014. (Para 7)

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Issue of Consideration

Whether a writ petition challenging a preliminary order of the Labour Court declaring the departmental inquiry as legal and valid is maintainable before the final award is passed.

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Final Decision

The High Court dismissed the writ petition as not maintainable, holding that the impugned order is interlocutory and can be challenged after the final award. The court directed the Labour Court to decide Reference (LCV) No. 167 of 2014 as expeditiously as possible, preferably within six months.

Law Points

  • Preliminary order on validity of departmental inquiry is interlocutory
  • not final
  • writ petition against such order is not maintainable
  • employee can challenge it after final award
  • Cooper Engineering Limited vs. P.P. Mundhe
  • AIR 1975 SC 1900 applied
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Case Details

2026 LawText (GUJ) (03) 883

R/Special Civil Application No. 15873 of 2024

2026-03-03

Hemant M. Prachchhak

2026:GUJHC:16166

Aakash D Modi for the petitioner, Varun K Patel for the respondents

Rahul Yogeshchandra Dalal

M/S Styrolution(ABS) India Ltd & Anr.

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India challenging a preliminary order of the Labour Court declaring the departmental inquiry as legal and valid.

Remedy Sought

The petitioner sought to quash the Labour Court's order dated 06.07.2023 and to direct the Labour Court to decide the reference expeditiously.

Filing Reason

The petitioner challenged the Labour Court's order holding the departmental inquiry as legal and proper, arguing that the inquiry was illegal due to non-payment of subsistence allowance and lack of appreciation of evidence.

Previous Decisions

The Labour Court, Vadodara, passed an order on 06.07.2023 in Reference (LCV) No. 167 of 2014 below Exh.-17, declaring the departmental inquiry as legal and proper.

Issues

Whether a writ petition challenging a preliminary order of the Labour Court on the validity of a departmental inquiry is maintainable before the final award.

Submissions/Arguments

Petitioner: The Labour Court's order is illegal as the petitioner was not paid subsistence allowance, which was set off against a loan, and the inquiry was not conducted properly without appreciating documentary evidence. Respondent: The writ petition is not maintainable as the preliminary issue can be challenged after the final award, relying on Cooper Engineering Limited vs. P.P. Mundhe, AIR 1975 SC 1900 and a coordinate bench decision.

Ratio Decidendi

A preliminary order of the Labour Court on the legality of a departmental inquiry is an interlocutory order and not a final award; a writ petition challenging such an order is not maintainable. The employee can raise all grounds, including the validity of the inquiry, after the final award is passed.

Judgment Excerpts

We are, therefore, clearly of opinion that when a case of dismissal or discharge of an employee is referred for industrial adjudication the labour court should first decide as a preliminary issue whether the domestic inquiry has violated the principles of natural justice. The writ petition is not maintainable as the preliminary issue which is decided by the Labour Court with regard to determining the legality and validity of the departmental proceedings can always be challenged after final award is passed.

Procedural History

The petitioner filed a reference before the Labour Court, Vadodara, being Reference (LCV) No. 167 of 2014. The Labour Court passed a preliminary order on 06.07.2023 below Exh.-17 declaring the departmental inquiry as legal and proper. The petitioner then filed the present writ petition challenging that order.

Acts & Sections

  • Constitution of India: Articles 226, 227
  • Industrial Disputes Act, 1947:
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