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Civil · Reportable judgment

M/s. Divgi Metal Wares Ltd. vs M/s. Divgi Metal Wares Employees Association & Anr.

Court
Supreme Court of India
Date
21 March 2024
Case No.
Civil Appeal No(s). 2032/2011
Result
Disposed
Bench
Bhushan Ramkrishna Gavai, Sandeep Mehta
Citation
[2024] 3 S.C.R. 959 : 2024 INSC 237
Acts & Sections
Industrial Employment (Standing Orders)…
Supreme Court Reports [2024] 3 S.C.R. 959 : 2024 INSC 237
Issue for consideration
Whether the Standing Orders read in conjunction with the terms of the appointment order restrain the transferability of employees.
Headnote

Industrial Employment (Standing Orders) Act, 1946 – Validity of transfers of employees – Terms contained in standing orders as opposed to terms of appointment – Reconcilable – Transfer of employees were valid under the Standing Orders and the terms of appointment. [Para 12-15]

Industrial Employment (Standing Orders) Act, 1946 – Interpretation of terms of appointment and standing orders – Both read in conjunction permitted transfers to any department or establishment of the company – Nothing contained in the standing orders can operate in derogation or to the prejudice of the provisions as provided in the contract of service – No conflict between the terms of appointment and standing orders – Principles established in Cipla Ltd. v. Jayakumar R. and Another, (1999) 1 SCC 300 examined – Squarely applicable to the instant case. [Paras 11, 14]

Industrial Employment (Standing Orders) Act, 1946 – Larger issue regarding the power of modification of the standing order not considered in the instant appeal – To be adjudicated in an appropriate proceeding – High Court erred by deciding the petitions without discussing the reasoning adopted by the Tribunal – Impugned order not sustainable – quashed and set aside. [Paras 16, 24]

Held: The Supreme Court reiterated the principle that standing orders should be read in conjunction with the employment contracts/appointment orders to determine the scope of transferability of employees – The Supreme Court also observed that the law laid down in Cipla Ltd. vs Jayakumar R. and Another (1999) 1 SCC

300 was squarely applicable to the present case – Transfers of employees were held to be lawful – The appeals were accordingly disposed of. [Paras 12-25]

Keywords: Transfer of employees/workmen · Standing orders · Conflict with the standing orders · Appointment order read with the Standing Order · Amendment to the standing order

As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Judgment B.R. Gavai, J. 1. These appeals challenge the judgment and order passed by the Division Bench of the High Court of Karnataka, Circuit Bench at Dharwad dated 02.02.2009, vide which the appeal filed by the M/s. Divgi Metal Wares Employees Association, which is respondent No.1 herein, came to be allowed. Similarly, by the said order, the Writ Petition No.31808/2003 filed by Respondent No.1 was also allowed and the Writ Petition No.7993/2006 filed by M/s Divgi Metal Wares Ltd., the appellant herein, came to be dismissed. 2. The facts leading to the filing of the present appeals are as
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