Holding company cannot be prosecuted over dispute with subsidiary

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In the case of Globe Group India Employees Union v Lufthansa German Airlines and Anr, the Supreme Court considered whether the holding company can be impleaded as a party before the labour court, when the reference is only made against a subsidiary company.

The case came up after the Central Government Industrial Tribunal (CGIT) passed an order impleading Lufthansa as a party in an industrial dispute case pertaining to the closing down of its subsidiary Globe Globe Ground India on 15 December 2019, and retrenchment of 106 employees. The employees’ union had filed an application to implead Lufthansa in ongoing proceedings relating to the dispute. The order was set aside by a single bench of Delhi High Court, which was confirmed by a division bench of Delhi High Court. The employee’s union then filed an appeal before the Supreme Court.

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