Case Note & Summary
The petitioner, Dharmarajya Kamgar Karmachari Mahasangh, a trade union, challenged an interlocutory order passed by the Industrial Court refusing to stay the transfer of some of its members/office bearers by the respondent, M/s S.P. Fabrications Pvt Ltd (a Shapoorji Pallanji Group company). The transfer order was for a period of six months. During the hearing, the petitioner restricted the challenge to the transfer of one employee, Sandesh Damodar Sutar. The Industrial Court had rejected the application for interim stay after considering the allegations of malafide action by the management. The High Court noted that there was no serious dispute regarding the management's right to transfer employees subject to work exigency or administrative reasons. The court observed that the case of malafide revolved around the formation of a new union, but the employees were also members of an earlier union. The management had transferred not only the petitioner but also four to five other employees who were office bearers/members of the newly formed union. The court held that merely because employees formed a new union and were transferred, it did not automatically establish malafide. The management is entitled to transfer employees for efficient working, and employees cannot object unless they establish malafide or illegality. The court found no reason to interfere with the Industrial Court's order and dismissed the writ petition, directing the Industrial Court to decide the main complaint expeditiously.
Headnote
A) Industrial Law - Transfer of Employees - Management's Right - The management has the right to transfer employees from one place to another subject to exigency of work and/or administrative reasons, and employees must obey such orders unless they establish malafide or illegality. (Paras 5-8) B) Industrial Law - Mala Fide Transfer - Burden of Proof - Mere formation of a new union and transfer of its office bearers does not automatically establish malafide; the employee must prove that the transfer was actuated by malice or victimization. (Paras 7-9) C) Industrial Law - Interim Relief - Transfer Order - The Industrial Court, after considering the merits and allegations of malafide, refused to stay a transfer order for a limited period of six months; the High Court declined to interfere as no case for interim relief was made out. (Paras 2-4, 10)
Issue of Consideration
Whether the Industrial Court was justified in refusing to stay the transfer of a union office bearer pending the main complaint, and whether the transfer order was mala fide.
Final Decision
The High Court dismissed the writ petition, upholding the Industrial Court's order refusing to stay the transfer. The court directed the Industrial Court to decide the main complaint expeditiously.
Law Points
- Transfer order
- mala fide
- burden of proof
- interim relief
- industrial dispute
