HIGH COURT OF ALLAHABAD
K.N. Singh and M.B. Farooqi, JJ.
AIR GASES MAZDOOR SANGH
Versus
INDIAN AIR GASES LTD
Decided On : 20 December 1976
INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946 - SECTION 3(2), 4, 5, 10 - STANDING ORDERS - CERTIFICATION - JURISDICTION OF CERTIFYING OFFICER - TRANSFER OF WORKMEN - VALIDITY.
Fact of the Case:
Petitioners, employees of Indian Air Gases Limited, challenged the validity of the transfer orders issued by the company transferring them from its factory in Moghalsarai to its head office in Kanpur. The transfer was made pursuant to Clause 8(b) of the standing orders certified by the certifying officer under the Industrial Employment (Standing Orders) Act, 1946.
Finding of the Court:
The Court held that the certifying officer had no jurisdiction to certify the standing orders relating to the transfer of workmen as the matter of transfer was not included in the Schedule to the Act and the State Government had not added any such item to the Schedule. The Court further held that the impugned transfers were made mala fide by way of victimization.
Issues: 1. Whether the certifying officer had jurisdiction to certify the standing orders relating to the transfer of workmen? 2. Whether the impugned transfers were made mala fide by way of victimization?
Ratio Decidendi: 1. The Court held that the certifying officer had no jurisdiction to certify the standing orders relating to the transfer of workmen as the matter of transfer was not included in the Schedule to the Act and the State Government had not added any such item to the Schedule. The Court relied on the provisions of Sections 2(g), 3(2), and 4 of the Act, which require the standing orders to be framed in respect of matters set out in the Schedule and to be certified by the certifying officer only if they are in conformity with the Act. The Court also referred to the decision of the Supreme Court in Rohtak and Hissar Electric Supply Co. v. State of Uttar Pradesh, where it was held that the employer cannot insist upon adding a condition to the standing orders which related to a matter not included in the Schedule. 2. The Court held that the impugned transfers were made mala fide by way of victimization based on the following factors: (i) the petitioners were transferred from Moghalsarai to Kanpur, where the company had no factory but only a registered office with only 5 employees; (ii) some workmen were previously transferred from Moghalsarai to Kanpur and their services were later terminated on the ground of no work; and (iii) the company failed to provide any reasonable explanation for the transfer.
Final Decision: The Court allowed the petition, quashed the order of the certifying officer, the order of the Appellate Authority, and the impugned orders of transfer of the petitioners. The petitioners were also awarded costs.
( 1 ) INDIAN Air Gases Limited manufacturers of oxygen and dissolve actyiene gases at its factory at Moghalsarai in Varanasi district. It has its registered office at Kanpur. Air Gases Mazdeor Sangh is the union of the employees working in the factory at Moghalsarai. Petitioners Nos. 2 to 11 are the employees of the respondent-company who have been working in the factory at Moghalsarai ever since their employment. In September, 1975, the management of the respondent-company transferred petitioners Nos. 2 to II from its factory at Moghalsarai to its head office at Kanpur under Clause 8 (b) of the standing orders. The standing orders proposed by the respondent-company were certified by the certifying officer on 23rd July, 1975, under the Industrial Employment (Standing Orders) Act, 1946. The union, namely, petitioner No. 1, as well as the affected employees, petitioners Nos. 2 to 11, preferred appeal before the Industrial Tribunal (1), Allahabad, under Section 6 of the Industrial Employment (Standing Orders) Act, 1946, against the orders of the certifying officer. The Industrial Tribunal by its order dated 24th October, 1975, rejected the appeal on the ground of delay in filing the appeal. Aggrieved, the petitioners filed this petition under Article 226 of the Constitution challenging the validity of the order of the certifying officer, the Industrial Tribunal as well as the transfer of the petitioners Nos. 2 to 11 to Kanpur.
( 2 ) THE Industrial Employment (Standing Orders) Act, 1946, makes it obligatory for framing of standing orders by all industrial establishments employing 100 or more workers. The employers are required to define the conditions of service in the establishment with certainty and to reduce them to writing and to get them compulsorily certified with a view to avoid unnecessary industrial disputes. Section 3 of the Act requires the employees of industrial establishments to submit to the certifying officer copies of the draft standing orders proposed by them for adoption in their industrial establishment. Subjection (2) requires that in the draft standing orders provision should be made for the matters set out in the Schedule to the Act. Where model standing orders are prescribed, the draft standing orders are required to be in conformity with those model standing orders. Section 2 (g) defines standing orders, which means rules relating to matters set oat in Schedule. Section 3 (2) read with Section 2 (g) requires framing of standing orders with respect to matters provided in the Schedule to the Act. The Schedule contains 10 different matters, i. e. , classification of workmen, hours of working, shift working, attendance, procedure for grant of leave and holidays, admission to factory gates and search, closure and reopening of sections and temporary stoppage of work, termination of employment, suspension and dismissal, means of redress for wrongful exactions by the employer or his agent. In addition to the items mentioned in the Schedule the appropriate Government, namely, the Central Government and the State Government, as the case may be, is empowered to add any other item to the Schedule.
( 3 ) SECTION 4 lays down that the certifying officer shall certify the standing orders framed by the employers provided the standing orders are in respect of items mentioned in the Schedule and the same are otherwise in conformity with the provisions of the Act. The said provision further requires the certifying officer and the Appellate Authority to adjudge the fairness or reasonableness of the provisions of standing orders. Prior to 1956, the certifying officer or the Appellate Authority had no jurisdiction to adjudicate upon the fairness or reasonableness of the standing orders proposed by the employers but after the Act was amended in 1966, it laid down mandatory duty on the certifying officer to adjudicate upon the fairness or reasonableness of the provisions of the standing orders. Section 5 prescribes
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