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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Naresh Kumar - Appellant
Versus
Scholastic India Pvt. Ltd. - Respondent
W.P.(C) 2886 of 2019
Decided On : 16-12-2021




The management has the discretion to transfer employees without consent unless expressly prohibited in the employment contract, and non-compliance with transfer orders implies voluntary resignation.

Headnote:(A) Industrial Disputes Act, 1947 - Section 2(s) - Transfer and termination of employment - Challenge to termination due to transfer from Delhi to Gurgaon dismissed - Lack of evidence showing prohibition on transfer in appointment letter - Employee's non-compliance with transfer order interpreted as voluntary resignation. (Paras 5, 10, 26 and 34)

(B) Employment at will - The management retains the discretion to transfer employees unless malafide motives are demonstrated. (Paras 26 and 34)

(C) Notice of transfer issued after withdrawal of suspension does not indicate malafide intent. (Paras 25 and 34)

Facts of the case:
The petitioner, a workman appointed as Book Fair Assistant in 2004, challenged his transfer following a suspension over alleged financial misconduct. After withdrawal of the suspension, the management transferred him from Delhi to Gurgaon. The Labour Court dismissed his claim regarding the transfer's legality, citing lack of evidence against the management's authority to transfer.

Findings of Court:
The Labour Court found that the transfer was justified and hinted at the absence of malafide intent on the management's part, dismissing the workman's claim.

Issues: The key issues included whether the transfer was illegal or unjustified as there was no explicit prohibition of transfer in the appointment letter.

Ratio Decidendi: The court held that the transfer was within the employer's discretion and that there were no grounds to intervene since the transfer did not alter the employment conditions or show malafide intent.

Result: Petition dismissed.

Table of Content
1. background of the termination and transfer issue. (Para 2 , 3 , 4 , 5)
2. arguments on the legality of transfer. (Para 7 , 9 , 10)
3. management's discretion to transfer employees. (Para 12 , 13 , 14)
4. judicial review of suspension allowance payment. (Para 19 , 20 , 21)
5. court's recognition of the right to transfer. (Para 26 , 28 , 30)
6. final dismissal of the petition. (Para 34)

JUDGMENT

Prathiba M. Singh, J. (Oral)--This hearing has been done in physical Court. Hybrid mode is permitted in cases where permission is being sought from the Court.

2. The present petition has been filed challenging the impugned Award dated 23rd October, 2017, passed by the Presiding Officer, Labour Court XIX, Karkardooma Courts, Delhi in LIR No. 6050/2016, by which the claim of the Workman challenging the termination, in respect of his transfer from Delhi to Gurgaon, was dismissed by the Labour Court.

3. The brief background is that the Petitioner-Workman was appointed on the post of -Book Fair Assistant with the Respondent, which is a book publisher. He was appointed vide appointment letter dated 16th July 2004. On 18th September 2013, the Petitioner was suspended from duties, and on 19th September 2013, a show cause notice was issued against him, upon the allegation of misuse of company's funds. The Petitioner replied to the said show cause notice on 20th September 2013, categorically denying the charges against him. Thereafter, the Petitioner also filed a complaint before the Labour Department on 14th November 2013, post which the Labour Inspector is stated to have visited the premises of the Respondent. The Petitioner has averred in his writ petition that for this period of suspension, no suspension allowance was paid to him. On 19th November 2013, the Respondent withdrew the suspension of the Petitioner, as also the show cause notice. Vide letter dated 3rd December, 2013, however, the Petitioner was transferred from the Delhi office, located in Kapashera, to the Gurgaon office of the Respondent. Upon receiving the notice of transfer, the Petitioner sent a request letter to the Respondent for reconsideration of the said transfer, however the same was not considered. The Petitioner, then filed his statement of claim before the Conciliation Officer on 12th December 2013, which was then referred to the Labour Court vide the reference order dated 13th May, 2014. The following question was framed in the terms of reference:

    "Whether the transfer of Sh. Naresh Kumar S/o Late Sh. Salook Chand from Delhi to Gurgaon, by the management is illegal and/or unjustified, if so to what relief is he entitled and what directions are necessary in this respect?"

4. Before the Labour Court, the Petitioner filed his statement of claim on 28th July 2014 and a written statement was filed by the Respondent on 3rd November 2014. After completion of pleadings, vide order dated 2nd January 2015, the following issues were framed by the Labour Court:

    "(i) Whether the claimant is a workman within its definition under Section 2(s) of the ID Act? OPW

    (ii) As per terms of reference (Whether the transfer of Sh. Naresh Kumar S/o Late Sh. Salook Chand from Delhi to Gurgaon by the management, is illegal and/or unjustified, if so to what relief is he entitled and what directions are necessary in this respect?)

    (iii) Relief"

5. Evidence was thereafter led in the matter and the matter was fixed for final hearing on 28th July 2017. Arguments were heard before the Labour Court on 6th October 2017. Vide the impugned order dated 23rd October 2017, the claim of the Workman was rejected by the Labour Court in the following terms:

    "9. ....The workman did not put on file any agreement between him and the management showing that after his promotion he could not have been transferred out of Delhi. In case titled as Pearlite Liners Pvt. Ltd. v. Manorma Sirsl, 2004 AIR (SC) 1373, it was held by the apex court that in absence of term prohibiting transfer of the employee,

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