Case Note & Summary
The petitioner, Indorama Synthetics (I) Ltd., filed a writ petition challenging the judgment and order dated 5 December 2006 passed by the Labour Court, Nagpur, in B.I.R. Case No.22 of 1998. The Labour Court had allowed the application filed by ten employees of the petitioner-company, holding that their transfer from the Polyester Department to the Spurn Yarn Department amounted to an illegal change under Section 3(15) of the Bombay Industrial Relations Act, 1946 (BIR Act). The employees had invoked Section 42 read with Items 1, 2, 4, and 5 of Schedule II of the BIR Act, alleging that the transfer was effected without following the prescribed procedure of giving a notice of change. The Labour Court, after considering the evidence and submissions, concluded that the transfer was indeed an illegal change and directed the employer to restore the employees to their original positions or provide equivalent benefits. The employer, aggrieved by this order, approached the High Court. The High Court, after hearing the parties, upheld the Labour Court's order, finding no merit in the petition. The court held that the transfer of employees without a notice of change under Section 42 of the BIR Act constitutes an illegal change, and the Labour Court had correctly exercised its jurisdiction. The writ petition was dismissed, and the Labour Court's order was confirmed.
Headnote
A) Industrial Law - Illegal Change - Transfer of Employees - Section 42 read with Items 1,2,4,5 of Schedule II of the Bombay Industrial Relations Act, 1946 - The Labour Court allowed the application of ten employees alleging that their transfer from Polyester Department to Spurn Yarn Department constituted an illegal change under Section 3(15) of the Act. The employer challenged the order in writ petition. Held that the transfer without notice of change under Section 42 is illegal and the Labour Court's order is upheld. (Paras 1-4)
Issue of Consideration
Whether the transfer of employees from the Polyester Department to the Spurn Yarn Department without issuing a notice of change under Section 42 of the Bombay Industrial Relations Act, 1946 amounts to an illegal change under Section 3(15) of the Act.
Final Decision
The High Court dismissed the writ petition and upheld the Labour Court's order dated 5 December 2006 in B.I.R. Case No.22 of 1998.
Law Points
- Transfer of employees from one department to another without following the procedure under Section 42 of the Bombay Industrial Relations Act
- 1946 constitutes an illegal change under Section 3(15) of the Act
- The Labour Court has jurisdiction to adjudicate such disputes under Items 1
- 2
- 4
- 5 of Schedule II of the BIR Act
- The employer must give notice of change before effecting a transfer that alters conditions of service
