Case Note & Summary
The petitioners, three trade unions representing employees of Air India and its subsidiaries, filed writ petitions challenging the disinvestment of Air India and the transfer of employees to the new owners, Tata Sons. They contended that the transfer required the consent of the workmen under the Industrial Disputes Act, 1947, and that the employees were entitled to continuity of service and protection of their terms and conditions. The respondents, including the Union of India and Air India Ltd., argued that the transfer was a lawful disinvestment and that Section 25FF of the Industrial Disputes Act, 1947, does not require consent of workmen but only ensures continuity of service. The court held that Section 25FF applies to transfers of undertakings and does not require consent of workmen; it only mandates that the transferee offers terms and conditions not less favourable than those applicable before the transfer. The court also noted that the petitioners had an alternative remedy before the Industrial Tribunal or Labour Court and declined to exercise writ jurisdiction. The petitions were dismissed.
Headnote
A) Industrial Disputes Act - Transfer of Undertaking - Section 25FF - Consent of Workmen - Transfer of a public sector undertaking to a private entity does not require consent of workmen under Section 25FF of the Industrial Disputes Act, 1947, as the provision only requires continuity of service and protection of terms and conditions of employment. (Paras 10-15) B) Industrial Disputes Act - Transfer of Undertaking - Section 25FF - Continuity of Service - On transfer of an undertaking, the workmen are entitled to continuity of service and the transferee is liable to pay retrenchment compensation if the terms and conditions are not less favourable. (Paras 10-15) C) Constitutional Law - Writ Jurisdiction - Alternative Remedy - The High Court declined to entertain the petitions as the petitioners had an alternative remedy before the Industrial Tribunal or Labour Court under the Industrial Disputes Act, 1947. (Paras 16-18)
Issue of Consideration
Whether the transfer of Air India to Tata Sons pursuant to the Share Purchase Agreement requires consent of the workmen under the Industrial Disputes Act, 1947, and whether the employees are entitled to continuity of service and protection of their terms and conditions.
Final Decision
The High Court dismissed the writ petitions, holding that Section 25FF of the Industrial Disputes Act, 1947 does not require consent of workmen for transfer of an undertaking, and that the employees have an alternative remedy before the Industrial Tribunal or Labour Court.
Law Points
- Transfer of undertaking
- Section 25FF Industrial Disputes Act
- 1947
- Consent of workmen not required
- Continuity of service
- Disinvestment of public sector undertaking
