In Brief
Rahman Industries challenged a Labour Court award under the Timely Payment of Wages Act, 1978, arguing the court lacked jurisdiction. The High Court quashed the order but mandatorily directed the Government to refer any such dispute to the Labour Court. The Supreme Court held that while the Government cannot meritoriously decline reference, it has discretion to first examine whether a dispute exists before referring it. The High Court erred in issuing a peremptory direction without allowing the Government to examine the matter. The Court allowed the appeal, requiring the Government to examine disputes within three months and refer them only if satisfied one exists.
The lawyer headnote and full judgment text are available to registered users.