Bombay High Court Dismisses Employer's Petition Challenging Industrial Court's Order Setting Aside Transfer as Unfair Labour Practice. Transfer of Employee After 28 Years of Service to Chennai Held Malafide and Without Justification Under Items 3 and 9 of Schedule IV of MRTU & PULP Act, 1971.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioner, Sulzer Pumps India Private Limited, challenged the judgment of the Industrial Court, Thane, which declared that the employer had engaged in unfair labour practices under Items 3 and 9 of Schedule IV of the Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act, 1971, by transferring respondent No.1, Jayendra Arun Jog, from Mumbai to Chennai. The respondent had been employed with the petitioner since 1992 and was promoted to Supervisor in 2011. On 30th October 2020, he was transferred to Chennai, which he challenged as malafide and victimization due to his union activities. The Industrial Court set aside the transfer order. The High Court, in its writ jurisdiction under Article 227, examined whether the Industrial Court's findings were perverse or without evidence. The court noted that the employee had served for 28 years in Mumbai and had a clean record. The transfer was sudden and without prior consultation. The employer claimed it was due to reorganization, but failed to produce any evidence of such reorganization or that the employee's role was redundant. The timing of the transfer, shortly after the employee became active in the union, indicated victimization. The High Court held that the Industrial Court's conclusion that the transfer was an unfair labour practice was based on proper appreciation of evidence and did not warrant interference. The petition was dismissed, and the transfer order remained set aside.

Headnote

A) Industrial Law - Unfair Labour Practice - Transfer - Items 3 and 9 of Schedule IV, Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act, 1971 - The employer transferred the employee from Mumbai to Chennai after 28 years of service. The Industrial Court held the transfer was malafide and an unfair labour practice. The High Court upheld the finding, noting that the employer failed to justify the transfer and the timing suggested victimization due to the employee's union activities. (Paras 2, 3, 10-15)

B) Industrial Law - Transfer - Malafides - Burden of Proof - Items 3 and 9 of Schedule IV, MRTU & PULP Act, 1971 - Once the employee establishes circumstances indicating malafides, the burden shifts to the employer to prove the transfer was for legitimate reasons. The employer's failure to produce evidence of administrative exigency or consultation with the employee led to the inference of unfair labour practice. (Paras 12-15)

C) Industrial Law - Jurisdiction - Industrial Court - Transfer Orders - Section 28, MRTU & PULP Act, 1971 - The Industrial Court has jurisdiction to examine transfer orders if they are alleged to be an unfair labour practice. The court can set aside a transfer if it is found to be malafide or in violation of the Act. (Paras 2, 10)

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Issue of Consideration

Whether the transfer of the employee from Mumbai to Chennai was an unfair labour practice under Items 3 and 9 of Schedule IV of the MRTU & PULP Act, 1971, and whether the Industrial Court's order setting aside the transfer was legally sustainable.

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Final Decision

The High Court dismissed the writ petition, upholding the Industrial Court's judgment and order dated 7th December 2022, which declared the transfer as an unfair labour practice and set aside the transfer order.

Law Points

  • Transfer order must be based on legitimate administrative reasons
  • not malafide or victimization
  • burden on employer to justify transfer when challenged as unfair labour practice
  • Industrial Court has jurisdiction to examine transfer orders under MRTU & PULP Act.
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Case Details

2023 LawText (BOM) (10) 139

WRIT PETITION NO. 5613 OF 2023

2023-10-03

N. J. Jamadar

Mr. J. P. Cama, Senior Counsel, a/w Shweta Rathod, i/b Elixir Legal Services, for the Petitioner; Ms. Jane Cox, i/b Ghanashyam Thombare, for Respondent No.1/Workman

Sulzer Pumps India Private Limited

Jayendra Arun Jog

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Nature of Litigation

Writ petition under Article 227 challenging Industrial Court's order setting aside transfer order as unfair labour practice.

Remedy Sought

Petitioner employer sought to quash the Industrial Court's judgment dated 7th December 2022 which declared the transfer as unfair labour practice and set aside the transfer order.

Filing Reason

The employer challenged the Industrial Court's finding that the transfer of the employee from Mumbai to Chennai was an unfair labour practice under Items 3 and 9 of Schedule IV of the MRTU & PULP Act, 1971.

Previous Decisions

The Industrial Court, Thane, in Complaint (ULP) No.138 of 2020, declared the transfer order dated 30th October 2020 as unfair labour practice and set it aside.

Issues

Whether the transfer of the employee from Mumbai to Chennai constituted an unfair labour practice under Items 3 and 9 of Schedule IV of the MRTU & PULP Act, 1971. Whether the Industrial Court's order setting aside the transfer was legally sustainable and not perverse.

Submissions/Arguments

Petitioner argued that the transfer was a legitimate administrative decision due to reorganization and that the Industrial Court exceeded its jurisdiction. Respondent argued that the transfer was malafide, without justification, and an act of victimization due to union activities, and that the Industrial Court correctly set it aside.

Ratio Decidendi

A transfer order that is malafide, without administrative justification, and timed to victimize an employee for union activities constitutes an unfair labour practice under Items 3 and 9 of Schedule IV of the MRTU & PULP Act, 1971. The Industrial Court has jurisdiction to examine such transfers and set them aside if found to be unfair labour practices.

Judgment Excerpts

This petition under Article 227 of the Constitution of India assails the legality, propriety and correctness of the judgment and order dated 7th December, 2022 passed by the learned Member, Industrial Court, Thane, in Complaint (ULP) No.138 of 2020 declaring that the petitioner – employer had engaged in unfair labour practices under Items 3 and 9 of Schedule IV of the Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act,1971. The Industrial Court's conclusion that the transfer was an unfair labour practice was based on proper appreciation of evidence and did not warrant interference.

Procedural History

The employee filed Complaint (ULP) No.138 of 2020 before the Industrial Court, Thane, challenging the transfer order dated 30th October 2020. The Industrial Court allowed the complaint on 7th December 2022, setting aside the transfer. The employer then filed the present writ petition under Article 227 before the Bombay High Court, which was dismissed on 3rd October 2023.

Acts & Sections

  • Maharashtra Recognition of Trade Union and Prevention of Unfair Labour Practices Act, 1971: Items 3 and 9 of Schedule IV
  • Constitution of India: Article 227
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