New Delhi, Mar 17 (PTI) The Supreme Court has ruled that a labour court constituted under the Industrial Dispute Act can entertain disputes related to employees of the Life Insurance Corporation (LIC).
A bench of Justices S B Sinha and V S Sirpurkar upheld the reinstatement order passed by a labour court in favour of R Suresh, a development officer, who was dismissed from service for alleged professional misconduct.

Suresh working as a development officer was dismissed from service after an inquiry revealed that he had issued an insurance policy in the name of a dead man.

However, the Labour Court quashed the dismissal order on the ground that it was disproportionate to the alleged action "as there was no monetary loss to the management and no monetary gain to the workman (Suresh) by the issuance of a policy in the name of a dead man." It was held that Suresh's action was negligent in nature and there was no earlier complaint of misconduct against him. The LIC challenged the reinstatement order before the Kerala High Court which dismissed the plea following which the corporation filed an appeal in the apex court.

In the apex court, the LIC took the argument that the labour court had no jurisdiction to entertain an industrial dispute. PTI

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