Labour Court Cannot Adjudicate Disputed Service Entitlements Like TA/DA Under Section 33C(2) ID Act: Delhi High Court

The Delhi High Court has held that Labour Courts exercising jurisdiction under Section 33C(2) of the Industrial Disputes Act, 1947 cannot adjudicate disputed service entitlements and are confined only to computation or recovery of pre-existing rights.Justice Shail Jain made the observation while allowing a writ petition filed by Allahabad Bank challenging a 2007 order of the Industrial Tribunal-cum-Labour Court-II directing the bank to pay ₹16,500 as travelling allowance (TA) to a retired employee who had acted as a Defence Assistant in departmental enquiries.The respondent employee had superannuated on November 30, 2001, but continued to represent two charge-sheeted bank employees as a Defence Assistant in pending disciplinary proceedings. He later approached the Labour Court under Section 33C(2) seeking payment of TA/DA and conveyance expenses incurred after retirement for attending enquiry proceedings.The bank opposed the claim, contending that after retirement no employer-employee relationship survived and that the respondent's entitlement itself was disputed. It also relied on a bipartite settlement providing that Defence Representatives from the same State as the place of enquiry would not be entitled to TA/DA.The High Court examined the scope of Section 33C(2) and reiterated that proceedings under the provision are “execution-like” in nature and cannot be used to first determine disputed rights.“Jurisprudence governing Section 33C(2) draws a clear distinction between a. The computation of a benefit flowing from an existing right, and b. The adjudication of the right itself…Where the very foundation of the claim is in dispute, the workman must first have his entitlement recognised by the appropriate forum, and only thereafter may he invoke Section 33C(2) for the purpose of computing and recovering the benefit so recognised,” it said.Reliance was placed on In Central Inland Water Transport Corporation Ltd. v. The Workmen & Anr., (1975) where the Supreme Court underscored the fundamental distinction between adjudication and execution, observing that where a claimant's right to relief requires investigation, such determination must be undertaken in appropriate adjudicatory proceedings; it is only after the liability stands adjudicated that the quantification or enforcement thereof can be carried out in execution. The Court noted that in the present case the bank had specifically disputed:whether a retired employee could claim TA/DA for acting as Defence Assistant;whether any such entitlement survived superannuation; andwhether the applicable bipartite settlement prohibited such claims.As such, holding that no prior adjudication, settlement or statutory recognition of the respondent's claimed right existed, the Court concluded that the Labour Court lacked jurisdiction to entertain the application and quashed the award.Appearance: Mr. Rajat Arora, Mr. Niraj Kumar and Mr. Sourabh, Advocates for Petitioner; Mr. Ankit Bhadaria, Mr Umesh Singh and Ms. Karishma, Adv. with respondent in person.Case title: Allahabad Bank v. RS SainiCitation: 2026 LiveLaw (Del) 482Case no.: W.P.(C) 7096/2007Click here to read order

Labour Court Cannot Adjudicate Disputed Service Entitlements Like TA/DA Under Section 33C(2) ID Act: Delhi High Court

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Labour Court Cannot Adjudicate Disputed Service Entitlements Like TA/DA Under Section 33C(2) ID Act: Delhi High Court

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