The Allahabad High Court found the definition of a 'workman' in the Uttar Pradesh Industrial Disputes Act so anomalous that it requested the government to amend it. But the Supreme Court observed that the high court had exceeded its jurisdiction by asking the legislature to change the law. In the judgment delivered last week in Pepsico India Holding Ltd vs K K Pandey, the apex court stated that the high court should not have asked the government to amend the definition of 'workman'. According to the Act, anyone who draws a salary above Rs 500 per month could not be considered a workman and he is beyond the purview of the law. Pepsico terminated a fleet executive and he challenged the management's action. The company invoked the rule and said that since he was drawing a salary of about Rs 8,000, he could not move the labour court. His plea was dismissed by the labour court. But on appeal, the high court said that the rule was an archaic hangover of the 1947 Act when the money value was high. The high court considered the executive as a workman and asked the labour court to consider his petition. The firm appealed to the Supreme Court. It set aside the high court order.
In a landmark judgment, Hon'ble Supreme Court went to some length to define the cause of action and jurisdiction of cases under Section 138 of the Negotiable Instruments Act. While deciding in 2014 STPL(Web) 499 SC 1, Dashrath Rupsingh Rathod Vs. State of Maharashtra & Anr., the Hon'ble court said, one of the main issues faced by the court (a) from which stage do we consider a offence under Section 138 to have been caused (b) Where would the jurisdiction of the court lie if the cheque was drawn in city A and presented dishonored in City B ? After discussion on various past decisions, the Hon'ble court finally affirmed, " To sum up: (i) An offence under Section 138 of the Negotiable Instruments Act, 1881 is committed no sooner a cheque drawn by the accused on an account being maintained by him in a bank for discharge of debt/liability is returned unpaid for insufficiency of funds or for the reason that the amount exceeds the arrangement made with the bank. (...
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