The High Court today scrapped the Labour Appellate Tribunal's verdict that justified the demand of 106 former workers of Grameen Kalyan, a charitable organisation established by Nobel Laureate Prof Muhammad Yunus, seeking a part of its net profits from 2006 to 2013.

The HC bench of Justice Zafar Ahmed and Justice Khondkar Diliruzzaman said the Labour Appellate Tribunal has no jurisdiction to give interpretation on whether or not the workers of Grameen Kalyan are entitled to get part of its profit under the Labour Act.

Only the Labour Court can do it as per the law, the HC bench said.

The bench delivered the verdict after holding hearing of a writ petition filed by Grameen Kalyan challenging the Labour Appellate Tribunal's verdict.

Writ petitioner's lawyer Abdullah Al Mamun told The Daily Star that Grameen Kalyan need not pay any profit money to its workers following the HC judgement.

He said the Labour Appellate Tribunal had declared the workers' demand valid beyond its jurisdiction, as it is only empowered to give interpretation if there is any dispute over the contract between the company and workers, under Section 231 of the Labour Act-2006.

No contract was signed between Grameen Kalyan and the workers, and therefore, the judgement delivered by the Labour Appellate Tribunal this year is beyond law, he added.

The demand of 106 retired workers is illegal as Grameen Kalyan is merely a healthcare charitable organisation, not involved with any industrial activities, Barrister Mamun said.

Meanwhile, the workers' lawyer Khurshid Alam Khan told this correspondent that his clients will move an appeal before the Appellate Division of the Supreme Court challenging the HC verdict.