Case Note & Summary
The Bombay High Court dealt with a petition challenging an interim order of the Industrial Court, Thane, which temporarily restrained the petitioners (a newspaper publishing company and its manager) from giving effect to a promotion/transfer order dated 10 April 2024 in respect of the respondent, an employee. The respondent had joined the company in 2002 and was promoted over the years to Senior Printer. In April 2024, he was promoted to Supervisor and transferred to Aurangabad. The respondent challenged this in Complaint (ULP) No.73 of 2024, alleging malafide and victimization due to his union activities. The Industrial Court granted interim stay, leading to the present petition. The High Court examined the terms of employment, which included transfer liability throughout India. It noted that the Industrial Court had not recorded any prima facie finding of malafide but merely assumed strained relationship from previous litigation. The Court held that transfer is a condition of service and interference is impermissible without malafide being established. It also held that promotion is an employer's discretion. The Court set aside the interim order, allowing the promotion/transfer to proceed, but directed the Industrial Court to decide the main complaint expeditiously.
Headnote
A) Industrial Law - Transfer - Condition of Service - Interference by Industrial Court - Transfer being an express term of employment contract, the Industrial Court cannot interfere with a transfer order unless malafide is pleaded and prima facie established. The burden of proving malafide is heavy and mere previous litigation does not establish malafide. (Paras 13-18) B) Industrial Law - Promotion - Employer's Discretion - Promotion is a matter of employer's discretion and cannot be questioned while deciding the issue of transfer. The employer may promote an employee despite availability of seniors if valid reasons exist. (Para 9) C) Industrial Law - Interim Relief - Prima Facie Case - An interim order restraining transfer must be based on a prima facie finding of malafide or victimization. The Industrial Court's assumption of strained relationship without evidence is insufficient to grant stay. (Paras 14-18)
Issue of Consideration
Whether the Industrial Court was justified in granting interim stay on a promotion/transfer order issued by the employer in the absence of a prima facie finding of malafide, and whether transfer being a condition of service can be interfered with by the Industrial Court.
Final Decision
The Bombay High Court allowed the petition, set aside the interim order dated 9 May 2024 passed by the Industrial Court, Thane, and directed that the promotion/transfer order dated 10 April 2024 shall not be stayed. The Industrial Court was directed to decide the main complaint expeditiously.
Law Points
- Transfer is a condition of service
- Interference with transfer order requires malafide
- Promotion is employer's discretion
- Burden of proving malafide is heavy
- Interim order must be based on prima facie findings
