Madras High Court Dismisses Appeals by Both Management and Union in Transfer Dispute. Transfer Order Held Not Mala Fide and Back Wages Denied Due to Efflux of Time in Industrial Dispute Under Industrial Disputes Act, 1947.

High Court: Madras High Court
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Case Note & Summary

The present Intra Court Appeals under Clause 15 of the Letters Patent were filed by both the Writ Petitioner/Union and the respondent/Management, challenging the common Writ Order dated 17.10.2025 passed in W.P.Nos.28283 and 25963 of 2023. The background of the case is an industrial dispute concerning the transfer of workmen from the Vaiyampalayam branch of L.G.Balakrishnan and Brothers Limited to other units. The Union, Uzhaipor Urimai Iyakkam, representing the workmen, challenged the transfer order as mala fide, while the Management sought to uphold the transfer and also challenged the Labour Court's award. The Principal Labour Court (FAC), Coimbatore, had passed an award on 10.05.2023 in I.D.No.66 of 2019, which was challenged by both parties in separate writ petitions. The Writ Court considered the issues and disposed of the writ petitions by a common order, holding that the transfer order was not mala fide. However, due to the efflux of time and long pendency of the case, the Writ Court declined to interfere with the transfer order and also denied back wages. Both parties being dissatisfied, filed the present appeals. The Division Bench, after hearing the submissions, found no grounds to interfere with the Writ Court's order. The Bench noted that the finding of the Writ Court that the transfer was not mala fide was based on evidence and was not perverse. Regarding back wages, the Bench held that since the workmen had not worked for a long period and the dispute had been pending for years, the denial of back wages was justified. Consequently, the appeals were dismissed, and the common order of the Writ Court was upheld.

Headnote

A) Industrial Law - Transfer of Workmen - Mala Fide - The transfer order challenged by the Union was held not to be mala fide by the Writ Court, and the Division Bench affirmed this finding, noting that the Management had valid reasons for transfer. (Paras 3-4)

B) Industrial Law - Back Wages - Efflux of Time - Due to the long pendency of the case, the Writ Court declined to grant back wages, and the Division Bench upheld this decision, emphasizing that the dispute had been pending for years and the workmen had not worked during that period. (Paras 3-4)

C) Industrial Law - Industrial Disputes Act, 1947 - Section 2A - The dispute pertained to transfer of workmen, which was raised as an industrial dispute under the Act. The Labour Court had passed an award, which was challenged by both parties. (Paras 2-3)

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Issue of Consideration

Whether the transfer order of workmen was mala fide and whether back wages should be granted after long pendency of the dispute.

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Final Decision

The Division Bench dismissed all three Writ Appeals, upholding the common order of the Writ Court dated 17.10.2025. The transfer order was held not mala fide, and no back wages were granted due to efflux of time.

Law Points

  • Transfer order not mala fide
  • Back wages denied due to efflux of time
  • Industrial dispute under Industrial Disputes Act
  • 1947
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Case Details

2026:MHC:815

W.A.Nos.3398, 3399 and 3544 of 2025 and C.M.P.No.27714 of 2025

2026-02-19

S.M.SUBRAMANIAM, C.KUMARAPPAN

2026:MHC:815

Mr.S.Ravindran, Senior Counsel for Mr.S.Sellapillai Kumar (for appellant in W.A.Nos.3398, 3399 and respondent in W.A.No.3544), Mr.S.Kumaraswamy (for respondent in W.A.Nos.3398, 3399 and appellant in W.A.No.3544)

The Management, L.G.Balakrishnan and Brothers Limited (in W.A.Nos.3398, 3399 of 2025) and Coimbatore District Secretary, Uzhaipor Urimai Iyakkam (in W.A.No.3544 of 2025)

Coimbatore District Secretary, (Ulaipor Urimai Iyakkam) (in W.A.Nos.3398, 3399 of 2025) and The Management, L.G.Balakrishnan and Brothers Limited (in W.A.No.3544 of 2025)

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Nature of Litigation

Intra Court Appeals under Clause 15 of Letters Patent against common order in Writ Petitions challenging Labour Court award in industrial dispute regarding transfer of workmen.

Remedy Sought

Both Management and Union sought to set aside the common Writ Order dated 17.10.2025 and the Labour Court award.

Filing Reason

Dissatisfaction with the common order of the Writ Court which held transfer not mala fide but denied back wages.

Previous Decisions

Principal Labour Court (FAC), Coimbatore passed award dated 10.05.2023 in I.D.No.66 of 2019. Writ Court passed common order dated 17.10.2025 in W.P.Nos.28283 and 25963 of 2023.

Issues

Whether the transfer order was mala fide? Whether back wages should be granted after long pendency of the dispute?

Submissions/Arguments

Appellant/Management argued that the transfer order was valid and not mala fide, and sought to uphold the transfer. Appellant/Union argued that the transfer was mala fide and sought back wages for the workmen.

Ratio Decidendi

The transfer order was not mala fide as there was no evidence of malice. Back wages are not automatically granted; long pendency and non-working of workmen justify denial of back wages.

Judgment Excerpts

Writ Court considered the issues, relating to transfer raised in the industrial dispute and disposed of Writ Petitions by way of passing a common order, holding that the transfer order, which is under challenge in the industrial dispute is not a mala fide one. However, due to efflux of time and long pendency of the case, the Writ Court declined to interfere with the order of transfer and to grant back wages.

Procedural History

Industrial dispute raised by Union leading to Labour Court award dated 10.05.2023 in I.D.No.66 of 2019. Both parties filed Writ Petitions (W.P.Nos.28283 and 25963 of 2023) challenging the award. Writ Court passed common order on 17.10.2025. Both parties filed Intra Court Appeals (W.A.Nos.3398, 3399, 3544 of 2025) which were dismissed by the Division Bench on 19.02.2026.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 2A
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High Court Madras High Court Dismisses Appeals by Both Management and Union in Transfer Dispute. Transfer Order Held Not Mala Fide and Back Wages Denied Due to Efflux of Time in Industrial Dispute Under Industrial Disputes Act, 1947.
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