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Section 97: Jurisdiction of courts

The Industrial Relations Code, 2020 (Act No. 35 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter XIII: Offences and Penalties
Competent Labour Forum
Act No. 35 of 2020
Section 96 All 104 Sections of Industrial Relations Code, 2020 Section 98

Legal Commentary & Landmark Judgments: Section 97

Section 97 of the Industrial Relations Code, 2020 establishes an express statutory bar ousting the jurisdiction of ordinary civil courts under Section 9 of the Code of Civil Procedure, 1908 in respect of any matter which the conciliation officer, arbitrator, or Industrial Tribunal is empowered by or under the Code to determine, codifying the Premier Automobiles doctrine.

  • Total Ouster of Civil Court Jurisdiction: No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which a conciliation officer, an arbitrator, or an Industrial Tribunal is empowered by or under this Code to determine, creating an exclusive specialized forum for industrial dispute resolution.
  • Statutory Bar on Injunctions: No injunction shall be granted by any civil court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Code, precluding civil courts from staying industrial tribunal proceedings, conciliation failure reports, or strike notices.
  • Codification of Specialized Industrial Jurisprudence: Eliminates parallel common law civil actions for wrongful termination, declaration of service status, or enforcement of standing orders, preventing dilatory civil litigation and channeling all industrial conflicts into expeditious labor adjudication fora.
Key Landmark Precedents:
  • The Premier Automobiles Ltd. v. Kamlekar Shantaram Wadke (1976) 1 SCC 496: The 3-Judge Bench laid down the four landmark principles governing civil court jurisdiction in labor matters: where a right is created by labor statute and a remedy is provided therein, the civil court jurisdiction is completely ousted by necessary implication.
  • Rajasthan State Road Transport Corp. v. Krishna Kant (1995) 5 SCC 75: The 3-Judge Bench affirmed Premier Automobiles, holding that industrial disputes relating to standing orders, retrenchment, dismissal, or collective bargaining rights lie exclusively within the domain of labor tribunals, and civil suits are barred.
  • Chandrakant Tukaram Nikam v. Municipal Corporation of Ahmedabad (2002) 2 SCC 542: The Supreme Court reaffirmed that civil court suits challenging wrongful dismissal, disciplinary action, or wage reduction governed by labor statutes are barred under Section 9 CPC, and must be dismissed at the threshold.
Courtroom Practice & Strategic Litigation Guidance:

When a worker or trade union files a civil suit seeking a declaration of wrongful dismissal, injunction against disciplinary enquiry, or enforcement of standing orders, immediately file an application under Order VII Rule 11(d) CPC read with Section 97 of the Industrial Relations Code. Plead that the suit is barred by law and seek summary rejection of the plaint at the threshold without entering a defense on merits.

Section 96 All 104 Sections of Industrial Relations Code, 2020 Section 98