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State laws can apply to Central Govt. Undertaking in labour dispute

When there is a labour dispute in a central government undertaking, the state government where it is situated can refer the issues to a labour court there according to its law. It is not essential that the central government should refer it according to the Industrial Disputes Act, the central law, the Supreme Court stated when a dispute arose between the workers of Hindustan Aeronautics Ltd (HAL) in Nashik, Maharashtra, and the central undertaking.

 Article referred: http://www.business-standard.com/article/opinion/labour-rows-in-central-govt-undertakings-116031300688_1.html

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