Andhra Pradesh High Court
Judges : M.S.LIBERHAN, V.V.S.RAO
CEMENT CORPORATION OF INDIA LTD., NEW DELHI - Appellant
Versus
B.B.V.KRISHNAM RAJU - Respondent
Decided On : 11-02-99
Constitution of India – Article 23 , 14 ,16 , 311 and 226 - Sick Industrial Companies Act, 1985 - Sections 17 , 16 , 15 , 18 and 3 - Industrial Disputes Act, 1947 - Section 25ff – Transfer of manager of Factory - Facts necessary for disposal of all appeals as follows Cement Corporation of India is fully owned Government of India Company - It is engaged in manufacture and sale of cement - It has Cement Factories in various parts of country - One such cement factory/unit is situated, which is managed by third respondent - Petitioner was appointed as a Sales Supervisor in corporation by orders bearing issued by Manager on behalf of Corporation - Order of appointment inter alia provides that petitioner is liable to be transferred anywhere in India in service of Corporation including subsidiaries of Corporation at discretion of Management - Petitioner is also liable to be transferred for work in any Section/department/plant/unit of Corporation or its subsidiaries with any designation at any time or from one shift to another shift at discretion of Management - He was placed on probation for a period of one year - After completion of his probation in Corporation, petitioner was transferred Cement Factory under Management of third respondent vide orders of Corporation office - Consequent upon his transfer, unit by its reference relieved petitioner with effect afternoon advising him to report to third respondent – Held , Impugned notice inter alia informs ail employees of Unit that employment and services of each employee with CCI stands transferred and be taken over by ICL, that services will not be interrupted by such take over and they will be given continuity of service and that condition of service of employees on such take over shall not in any way be less favourable than those presently applicable to employees of CCI - Relying on this condition, learned Counsel for appellants submits that in event of conditions and transfer not being accepted by writ petitioners, it would result in detriment to themselves - Court are afraid, we cannot agree with this. It is not case of CCI that petitioners are junior employees in all India seniority and, therefore, when Unit is being transferred to ICL they will have to be retrenched or ousted from service treating their posts in CCI abolished - As mentioned earlier but for transfer orders, petitioners would not have been got posted Unit which alone is sold to ICL - Admittedly, there are number of cement factories/units run under CCI and services of petitioners being liable to be transferred anywhere in India to any of Units under control and Management of CCI, contention of learned Counsel for appellants is liable to be rejected and accordingly it is rejected - Writ petitions allowed
( 1 ) THIS judgment will dispose of all the writ appeals. The appeals are filed by the Cement Corporation of India and two others against the common judgment of the learned single Judge dated 6-7-1999 made in W. P. Nos. 10228, 19901, 22122, 23256, 23257, 24811, 26039 and 32845 of 1998.
( 2 ) FOR the purpose of convenience we take up the Writ Appealno. 1351/99 arising against the order in W. P. No. 32845/98. The parties are referred to as per their status in the writ petition. We shall state the facts necessary for the disposal of all the appeals as follows: the Cement Corporation of India (hereinafter referred to as the corporation) is fully owned Government of India Company. It is engaged in the manufacture and sale of cement. It has Cement Factories (Units) in various parts of the country. One such cement factory/unit is situated at yerraguntla village in Cuddapah District, which is managed by the third respondent. The petitioner was appointed as a Sales Supervisor in the corporation by orders bearing No. PDR/3/2/94/6472 dated 8-7-94 issued by the Manager (Personnel) on behalf of the Corporation. The order of appointment inter alia provides that the petitioner is liable to be transferred anywhere in India in the service of the Corporation including the subsidiaries of the Corporation at the discretion of the Management. The petitioner is also liable to be transferred for work in any Section/department/plant/unit of the Corporation or its subsidiaries with any designation at any time or from one shift to another shift at the discretion of the Management. He was placed on probation for a period of one year. After completion of his probation in the Corporation, the petitioner was transferred from Mandhar Cement Factory in Mddhya Pradesh to Yerraguntla Cement Factory under the Management of the third respondent vide orders of the Corporation office No. PDR/co/ mktg/97/2240, dated 5-5-1997. Consequent upon his transfer, the Mandhar unit by its reference dated 19-9-1997 relieved the petitioner with effect from 19-9-1997 afternoon advising him to report to the third respondent. The petitioner, thereafter, joined the third respondent and since then he is working in the Corporation at Yerraguntla.
( 3 ) IN the year 1997, the Corporation asked for option of the employees to work outside the Corporation under any private employer. The petitioner did not give option. Those employees, according to the petitioner, who did not opt to work under any private employer were transferred during December 1997 and January 1998 to, some other units of the Corporation. While so, the second respondent, the Director (Operations) of the Corporation issued a circular No. D (O)/yro/7/98, dt. 20-1-1998 stating that consequent on the sale of Yerraguntla Cement factory/unit of the Corporation, the petitioner s services stand transferred to India Cements Limited (hereinafter called ICL ). Immediately, on 21-9-1998 (sic. 21-1-1998) the petitioner filed objections by way of representations inter alia stating that as he is recruited only by the corporation, his services are not liable for transfer to a new employer without his consent. Again on 12-2-1998, the petitioner made another representation to the same effect. The petitioner also states that one J. N. Talwar who is also working in the Corporation, on coming to know of the Circular dated 20-1-1998 issued by the second respondent, approached the High Court of delhi and obtained stay of operation of the Circular dated 20-1-1998 by order dated 5-2-1998. Having not received any reply to his two representations dated 21-1-1998 and 12-2-1998, the petitioner filed W. P. No. 1028/98. In the writ petition the petitioner prayed for a writ in the nature of Mandamus declaring the action of the second respondent in issuing the Circular No. D (O) / yro/7/98, dated 20-1-1998 (the impugned Circular) seeking to transfer the services of the petitioner to a new employer as illegal and arbitrary being contra
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