Labour Law – Can an Industrial Court inquire into whether the management could have avoided the lay-off?

The Bombay High Court has answered this question in affirmative in Maharashtra Cylinders (Pvt.) Ltd.Vs Ramesh & others and held ;

“ 8. The ruling cited by the learned Counsel for the petitioner in the case of Tatanagar Foundry Co. Ltd (cited supra) mentions that it is open for the Tribunal to inquire whether the employer could have avoided lay-off if he had been more diligent, more careful and far-sighted.  That is the matter relating to the management of the undertaking and unless mala fides are alleged or proved, the Industrial Tribunal cannot exceed its jurisdiction in dealing with the dispute whether lay-off was justified. Thus, the Industrial Court can interfere only when mala fides are alleged and are sufficiently proved.…”