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Labor Disputes involving Trans-Provincial Establishments fall under the Exclusive Jurisdiction of the National Industrial Relations Commission (NIRC), as mandated by the Industrial Relations Act, 2012 (IRA) --- Supreme Court of Pakistan

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Labor Disputes involving Trans-Provincial Establishments fall under the Exclusive Jurisdiction of the National Industrial Relations Commission (NIRC), as mandated by the Industrial Relations Act, 2012 (IRA) --- Supreme Court of Pakistan

Islamabad 03-12-2024: In a significant ruling, the Supreme Court of Pakistan has clarified the jurisdictional framework for labor disputes involving trans-provincial establishments under the Industrial Relations Act, 2012 (IRA). The Court emphasized the supremacy of federal laws over provincial labor laws, affirming that disputes concerning trans-provincial organizations fall exclusively within the jurisdiction of the National Industrial Relations Commission (NIRC).

The judgment, delivered by a bench comprising Mr. Justice Amin-ud-Din Khan, Mr. Justice Muhammad Ali Mazhar, and Mr. Justice Irfan Saadat Khan, arose from a petition filed by Muslim Commercial Bank Limited (MCB). The bank challenged decisions by the Punjab Labour Appellate Tribunal and the Lahore High Court that dismissed its appeals over procedural and jurisdictional grounds.

The Supreme Court of Pakistan reiterated that the IRA, as a federal law, ousts the jurisdiction of provincial labor Courts and tribunals for trans-provincial establishments. The Court invoked Article 143 of the Constitution, emphasizing the supremacy of federal laws over provincial enactments.

The Court highlighted that procedural laws, such as jurisdictional changes under the IRA, are retrospective unless explicitly stated otherwise. It held that the transition of jurisdiction from provincial labor forums to the NIRC applies to ongoing cases.

The decision underscored that any judgment or order passed without proper jurisdiction is void ab initio (Coram Non Judice). The Punjab Labour Appellate Tribunal’s 2013 decision and the Lahore High Court’s 2023 judgment were declared nullities due to jurisdictional defects.

The Court reminded judicial forums of their duty to proactively address jurisdictional issues and apply the correct laws based on the facts of each case, even if parties fail to invoke them.

The Supreme Court of Pakistan directed the Punjab Labour Appellate Tribunal to return the case file to MCB for immediate submission to the NIRC. The NIRC was instructed to adjudicate the matter on its merits.

The case stemmed from the dismissal of Chaudhry Mushtaq Ahmad Khan, a cashier at MCB, in 1981 for alleged misconduct. Following a favorable ruling for the employee in the Punjab Labour Court in 1985, the bank contested the jurisdiction of the Court, leading to appeals in the Appellate Tribunal and the Lahore High Court. The IRA, enacted during these proceedings, shifted jurisdiction over such disputes to the NIRC, a fact overlooked by the provincial forums.