NDLI: Globe Ground India Employees Union Vs. Lufthansa German Airlines & Anr.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Reference Industrial Disputes Act 1947 closing down the establishment retrenchment Doctrine of Piercing Veil Necessary party proper party
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Code of Civil Procedure, 1908 (5 of 1908) Industrial Disputes Act, 1947 (14 of 1947)
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Dismissed
Headnote	Industrial Disputes Act, 1947– ss.10(4) and 25-F, 25-G, 25- O, 25-N – Information furnished by the first respondent (holding company of the second respondent-employer of the appellant workers’ union) that they would stop ground handling services from the International Airlines at Delhi – Workers of the appellant-union were issued termination notices– Dispute referred by the Central Government to the Industrial Tribunal – Before the Tribunal, the appellant inter alia alleged that second respondent is a joint venture formed by Globe Ground Deutschland GmbH and one Bird Group, which floated a new company that has undertaken ground handling/ ancillary services to international airlines and was utilising the same equipment belonging to the second respondent and in the said company most of the employees were retained except the trade union activists – Though, no relief was claimed against the first respondent, the appellant sought its impleadment in the industrial dispute proceedings on the ground that it is the holding company of the second respondent and hence a proper and necessary party– Allowed by the Tribunal – Single Judge set aside the order – Appellant filed intra court appeal – Dismissed – Review – Dismissed – Held: Reference to be answered by the Tribunal was that, whether the action of the management of second respondent in closing down their establishment on 15.12.2009 and retrenching the services of 106 workmen was justified and legal – Whenever, the appropriate Government refers the points of dispute for adjudication, the Labour Court/the Tribunal/the National Tribunal, as the case may be, shall confine its adjudication to those points only and matters incidential thereto – Necessary party, is one without whom no order can be made effectively – Proper party is one in whose absence an effective order can be made but whose presence is necessary for complete and final decision on the question involved in the proceedings – Even in a subsidiary company which is an independent corporate entity, if any other company is holding shares, by itself is no ground to order impleadment of parent company per se – In the present case, the second respondent itself is a company in which the subsidiary of the first respondent, Globe Ground Deutschland GmbH, was holding 51% shares and 49% shares were held by the Bird Group – Further, having regard to the limited scope of adjudication to answer the reference, circumscribed by s.10(4) of the 1947 Act, the first respondent is neither necessary nor proper party, to answer the reference by the Industrial Court – No error in the order passed by the Single Judge or the Division Bench – Code of Civil Procedure, 1908 – Or.1, r.10 – Doctrine of Piercing Veil. Code of Civil Procedure, 1908 – Or.1, r.10 – Impleadment of third party, not a party to the reference under the 1947 Act – Held: For deciding such application for impleadment what is required to be considered is whether such party is necessary or proper party to decide the lis – It all depends on the facts of each case; the allegations made and the nature of adjudication proceedings etc. – Industrial Disputes Act, 1947. Words & Phrases – “Necessary Party” and “Proper Party” – Meaning of – Explained.
Judge	Hon'ble Mr. Justice R.Subhash Reddy
Neutral Citation	2019 INSC 559
Petitioner	Globe Ground India Employees Union
Respondent	Lufthansa German Airlines & Anr.
SCR	[2019] 6 S.C.R. 641
Judgement Date	2019-04-23
Case Number	4076

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Globe Ground India Employees Union Vs. Lufthansa German Airlines & Anr.

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