Case Note & Summary
The case involved an industrial dispute between Kundan Sugar Mills and its employees regarding the legality of their transfer to a new mill. The General Manager of Kundan Sugar Mills ordered the transfer of four workmen to a newly acquired mill, which led to their dismissal when they refused to comply. The Labour Appellate Tribunal ruled that the management had no right to transfer the employees to the new mill, leading to the appeal by the employer to the Supreme Court. The Supreme Court examined whether the right to transfer employees was implicit in their contracts of service. It concluded that without an express agreement, such a right could not be assumed, especially since the new mill was a separate entity with different working conditions. The court also addressed the jurisdiction of the Labour Appellate Tribunal, affirming that it had the authority to review the Industrial Tribunal's decision as it raised a substantial question of law. Ultimately, the Supreme Court dismissed the appeal, upholding the Labour Appellate Tribunal's decision and ordering the reinstatement of the dismissed workmen.
Headnote
A) Industrial Law - Transfer of Employees - Implicit Right to Transfer - Industrial Disputes Act, 1950, Section 7(1) - The court held that the right to transfer employees is not implicit in every contract of service unless expressly stated, and in this case, the transfer to a new concern was not justified. (Paras 1-2). B) Jurisdiction - Labour Appellate Tribunal - Substantial Question of Law - Industrial Disputes Act, 1950, Section 7(1) - The court found that the Labour Appellate Tribunal had jurisdiction to set aside the Industrial Tribunal's finding as it involved a substantial question of law regarding the employer's right to transfer employees. (Paras 3-4).
Issue of Consideration
Whether an employer has the right to transfer employees to a new concern started after their employment without an express agreement.
Final Decision
The Supreme Court dismissed the appeal, affirming the Labour Appellate Tribunal's decision that the employer lacked the right to transfer the employees to a new concern without an express agreement.
Law Points
- Employer's right to transfer
- contract of service
- implicit terms
- jurisdiction of Labour Appellate Tribunal
