2009 Supreme(Mad) 117
High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE D. MURUGESAN & THE HONOURABLE MR. JUSTICE M. SATHYANARAYANAN
Indian Oxygen Employees Union rep. by its General Secretary & Another
Versus
Union of India rep. by the Secretary, Ministry of Labour & Others
Writ Appeal No.286 of 2003
Decided on: 12-01-2009
For the Appellants :N.G.R. Prasad for M/s. Row & Reddy, Advocates.
For the Respondents: R1, K. Mohanamurali (SCGSC), R2, A.L. Somayaji, S.C. for M/s. Gupta and Ravi, R3, V. Karthik for M/s T.S. Gopalan VOC.
Headnote:
The transfer of an undertaking or sale of an undertaking is recognized in law and Section 25-FF came to be incorporated in the Industrial Disputes Act, taking into consideration the interest of the workmen.
Fact of the Case:
The second appellants herein joined the services of Indian Oxygen Limited (in short IOL) as Typist on 01/1965. IOL was a Public Limited Company with its head office at Calcutta and it was manufacturing Industrial Compressed Oxygen, Medical Oxygen, Dissolved Acetylene, Anaesthesia gas, Liquid Oxygen, Argon Gas, Hydrogen Gas and various other high speciality gases. IOL besides manufacturing various kinds of Industrial and medical gases, was also manufacturing Electrodes, Welding Equipments, Medical apparatus like Boyles and other medical accessories.
Finding of the Court:
The writ petition against the second respondent herein to continue the second appellants in its service in the same manner as before 10. 1998 is not maintainable.
Issues: Whether the transfer of the second appellants from the service of the second respondent to third respondent was on the same terms and conditions as he will not get pension in the new employer namely third respondent and that he will lose the benefit of profit sharing scheme, which the second appellants was getting while he was in service of the second respondent as the third appellants is not a manufacturing concern.
Ratio Decidendi: Section 25FF of the Industrial Disputes Act and proviso to said section cannot be held to be unconstitutional as it sufficiently protects the interest of the workmen.
Final Decision: Writ appeal is dismissed, confirming the orders passed in the writ petition.
M. Sathyanarayanan, J.
The appellants are the writ petitioners and aggrieved by the dismissal of the writ petition, had preferred this appeal.
2. The facts which are necessary for the disposal of this writ appeal are as follows:-
The second appellants herein joined the services of Indian Oxygen Limited (in short IOL) as Typist on 011. 1965. IOL was a Public Limited Company with its head office at Calcutta and it was manufacturing Industrial Compressed Oxygen, Medical Oxygen, Dissolved Acetylene, Anaesthesia gas, Liquid Oxygen, Argon Gas, Hydrogen Gas and various other high speciality gases. IOL besides manufacturing various kinds of Industrial and medical gases, was also manufacturing Electrodes, Welding Equipments, Medical apparatus like Boyles and other medical accessories.
3. In the year 1995, the name of IOL was changed to B.O.C India Limited (Second Respondent). The second appellants was posted to work at Trichy as Clerk-cum-Typist in the Sales Office of the second respondent. On 11. 1978, the second appellants was promoted as Stenographer Grade II and posted to Accounts Department at Chennai. On 07.01.1988, he was promoted as Stenographer Grade I and posted to Health Care Products Division. The Welding Division of the second appellants was sold to ESAB India Limited on 21.05.1991 and some employees were transferred on account of the said sale.
4. The first appellants Union objected to the transfer of some employees as they did not want to serve under the new employer on the ground that they were not working in any separate undertaking, but in the Office/Establishment situated at Chennai which was not a separate undertaking. The first appellants Union also filed a suit in C.S.No.741 of 1991 on the file of this Court and obtained an order of ad-interim injunction in O.A.No.483 of 1991 against transfer of employees. The said interim order was also made absolute on 210. 1991. Consequently, the second respondent continued to engage their services. Even though, the manufacturing of Medical Equipments existed in the form of a separate factory at Calcutta, it ceased to exist after 1991 and the second respondent company called the business of handling medical equipments etc., as "MEDISHIELD". According to the appellants herein, there was no separate undertaking called medical division run by the second respondent company.
5. It is further contended by the appellants/writ petitioners that the employees are transferred from one post to other anywhere in the establishment and there is a common seniority list maintained for all the sections and hence, OHMEDA is not an independent division in the nature of an undertaking and the employees posted at a particular time in that division do not belong to that division.
.6. The order of appointment pertaining to the second appellants does not contain the name of a particular department and thereby his service could be utilized in all the departments of the second respondent. The second appellants is also an active member of IOL Employees Union and is holding the post of Joint Secretary and therefore, he is the protected workmen under the ID Act.
7. The appellants/ writ petitioners further averred in their affidavit that All of a sudden, the second appellants has published a letter dated 30.9.1998 in the Companys Notice Board on 10. 1998 stating that OHMEDA Division has been sold to one DATEX OHMEDA INDIA PVT LTD., - third respondent and that simultaneously, the staff who are working in the said division are transferred to the third respondent. The second appellants neither sought the consent of the affected employees nor hold any discussion with the first appellants Union before transferring their services to the third respondent and the decision of the second appellants was an unilateral one and it has been exercised in an arbitrary manner affecting the rights and privileges enjoyed by the employees. The appellants/writ petitioners further contended that the second appe