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2020 Supreme(Cal) 136

IN THE HIGH COURT OF CALCUTTA
I.P. Mukerji, Md Nizamuddin, JJ.
Basumati Corporation Ltd. And Others - Appellants
Versus
Kaberi Maitra And Others - Respondents
First Miscellaneous Appeal No. 994 of 2018
Decided On : 06-03-2020

Advocates Appeared:
L.K. Gupta, Advocate, Jaytosh Majumder, Advocate, Shayak Chakraborty, Advocate, Avishek Prasad, Advocate, Abhratosh Majumder, Advocate, Jaharlal De, Advocate, Shamim Ul Bari, Advocate, Srijib Chakraborty, Advocate, Subhasis Chakraborty, Advocate, Suryaneel Das, Advocate, Sushmita Singh, Advocate

The main legal point established in the judgment is that in the absence of explicit prohibition in the standing orders, an employee could be deputed to a government department in accordance with law, and the deputation order was validly done in exercise of powers under the 1974 Act read with the scheme.

Headnote:

deputation - employment - Industrial Employment (Standing Orders) Act, 1946, Basumati Private Limited (Acquisition of Undertaking) Act, 1974 - The court discussed the deputation order of an employee from a private company to a government department. The court interpreted the standing orders, the 1974 Act, and a scheme for deployment of employees in government offices. It held that the employee could be deputed to a government department in accordance with law, and the deputation order was validly done in exercise of powers under the 1974 Act read with the scheme.

Fact of the Case:

The respondent, an employee of Basumati Corporation Ltd., resisted a deputation order to work in a government department, citing the absence of provision for deputation in the standing orders governing her employment.

Finding of the Court:

The court found that the deputation order was valid as the standing orders were silent on deputation, and the 1974 Act empowered the government to issue directions for the management of Basumati, including deputation of employees.

Issues: The issues involved were whether the standing orders permitted the deputation of the employee and if the deputation order was valid without the employee's consent.

Ratio Decidendi: The court held that in the absence of any provision in the standing orders prohibiting deputation, the employee could be deputed to a government department in accordance with law. The deputation order was validly done in exercise of powers under the 1974 Act read with the scheme.

Final Decision: The court allowed the appeal, set aside the impugned judgment and order, and made no order as to costs.

JUDGMENT

I. P. Mukerji, J. - In this case the respondent/writ petitioner ("the respondent"), an employee of Basumati Corporation Ltd., hereinafter referred to as 'Basumati' was asked to work in the government department in Nabanna, Howrah. The expression used while sending her to Nabanna was that she was 'deployed' in the establishment there.

2. It is agreed by learned counsel for the parties that 'deployment' is synonymous with the word 'deputation'.

3. Now, this case is about the said deputation order. She has resisted this order on the ground that she could not be 'deployed' or sent on deputation from Basumati to a state government establishment.

4. Now, I come to the facts of this case.

5. On 30th June, 1994 Basumati appointed the respondent as a junior clerk in Siliguri. Within three weeks, she was transferred to the organization's head office in Kolkata.

6. Standing orders were made on 10th May, 1965 under Section 7 of the Industrial Employment (Standing Orders) Act, 1946 to govern the terms and conditions of employment of all workmen of M/s. Basumati Sahitya Mandir. Clause 7 of the said standing orders is as follows:-

    "7. Transfer:- Service of any workman is liable to be transferred from one post to another or from one department to another or from one shift to another."

    7. In 1974 the Basumati Private Limited (Acquisition of Undertaking) Act, 1974 (the 1974 Act) was enacted by the state legislature. Sections 3, 4(2), 5, 6 and 7 of the said Act are very material for the purposes of this appeal. They are set out below:-

      "3. On and from the appointed day, the undertaking of the company shall, by virtue of this Act, stand transferred to, and vest in, the State Government free from all trusts, liabilities and encumbrances.

        4. (2) Any contract, whether express or implied, or other arrangement, whether under any statute or otherwise, in so far as it relates to the management of the business and affairs of the company in relation to its undertaking and in force immediately before the appointed day, or any order made by any court in so far as it relates to the management of the business and affairs of the company in relation to its undertaking and in force immediately before the appointed day, shall be deemed to have terminated on the appointed day.

          5. The undertaking which has vested in the State Government under section 3 shall be managed by such person or body of persons as may be nominated by the State Government in this behalf and such person or body of persons shall carry on the management in accordance with such rules as may be made by the State Government.

            6. (1) Notwithstanding anything contained in sections 3, 4 and 5, the State Government may by order in writing direct that the undertaking of the company together with all its properties and assets, specified in sub-section (1) of section 4, shall, instead of continuing to vest in the State Government, vest in such corporation owned or controlled by the State Government (hereinafter referred to as the corporation) and on such date, as may be specified in the direction.

              (2) Where an order vesting the undertaking of the company in a corporation is made under sub-section (1), all the rights, liabilities and obligations of the State Government in relation to the undertaking of the company shall, on and from the date of such vesting, be deemed to have become the rights, liabilities and obligations, respectively, of such corporation.

                (3) The corporation shall, for the purpose of management and administration of the undertaking of the company, act in accordance with such direction, if any, as may be issued by the State Government in this behalf.

                  (4) The corporation may also apply to the State Government at any time for instructions as to the manner in which the management of the undertaking of the company or in relation to any matter arising in the course of such management shall be conducted.

                    7. (1) Every person who is a workman within the meaning of the Industrial Disputes

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