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2026 Supreme(Del) 558

IN THE HIGH COURT OF DELHI AT NEW DELHI
MANOJ KUMAR OHRI, J.
Seema - Petitioner
Versus 
Orient Craft Limited  - Respondent
W.P.(C) 13060 OF 2018, W.P.(C) 13067 OF 2018
Decided On : 30-05-2026

Advocates Appeared:
For the Petitioner:Ms. Vagisha Kochar and Mr. Sharath Sampath, Advocates.
For the Respondent:Mr. Gulshan Chawla, Ms. Kanupriya Chawla and Mr. Manish Kumar, Advocates.

Termination of employment disguised as a transfer without conducting a domestic inquiry or proving willful abandonment is illegal. The burden of proof lies with the employer to demonstrate the necessity of transfer and to follow due process, failing which, reinstatement with back wages is appropriate.

Headnote:(A) Industrial Disputes Act, 1947 - Sections 11-A, 25-F - Illegal termination masquerading as transfer - Principles of natural justice in disciplinary proceedings - Certified Standing Orders as mandatory service conditions overriding private contract - Burden of proof in abandonment of service - Reinstatement and back wages. (Paras 14, 16, 17, 21)

(B) Evidentiary Standards - Employer must establish bona fide nature of transfer - Mere non-reporting to a new location does not constitute abandonment of service - Requirement to hold domestic inquiry before terminating for misconduct - Discrepancies in statutory records and lack of independent evidence regarding service of transfer orders undermines management's defense. (Paras 9, 11, 15, 17)

(C) Relief - Wrongful termination attracts reinstatement with back wages as a default rule - Employer bears the burden to prove gainful employment of the worker to avoid back wage liability. (Para 21)

Facts of the case:
Petitioners, as permanent skilled workers, alleged illegal termination of their services under the guise of transfer. The management contended that the workers failed to report to their new assigned locations and thereby abandoned their employment. The workers asserted that they were never served with transfer letters, that the transfer was an act of victimization, and that the management failed to provide statutory facilities. The labor court dismissed their claims, leading to the current writ petitions.

Findings of Court:
The court held that the management failed to prove the transfer was bona fide or that the workers willfully abandoned their posts. The removal of the workers from the muster rolls without conducting any domestic inquiry or issuing a charge-sheet was a flagrant violation of natural justice. Management failed to substantiate the service of transfer communications and the alleged abandonment by the employees.

Issues: Whether the termination of services disguised as a transfer was legally justified, whether the management followed mandatory procedures for disciplinary action, and whether the workers were entitled to reinstatement and back wages.

Ratio Decidendi: Termination of service without a domestic inquiry constitutes a breach of natural justice and statutory labor standards. Abandonment of service cannot be inferred from mere absenteeism; the burden rests upon the employer to establish the worker's intent to relinquish employment. Since the employer failed to prove illegal abandonment or follow mandated procedural protocols, the purported transfer acts were deemed a pretext for illegal termination, necessitating reinstatement with partial back wages.

Result: Petitions allowed; impugned award set aside.

Table of Content
1. outline of employment disputes and procedural context of references. (Para 1 , 2 , 6 , 7 , 8)
2. parties' conflicting contentions regarding termination vs. transfer of service. (Para 3 , 4 , 5)
3. evidentiary analysis of employment documentation and transfer validity. (Para 9 , 10 , 11 , 12 , 13)
4. requirement of natural justice and adherence to standing orders in termination. (Para 14 , 15 , 16 , 17 , 18)
5. exercise of writ jurisdiction when administrative findings lack evidentiary support. (Para 19 , 20)
6. determinants for awarding reinstatement and back wages upon illegal termination. (Para 21 , 22 , 23 , 24 , 25)

JUDGMENT :

MANOJ KUMAR OHRI, J.

1. By way of the present petitions, the petitioners/workwomen have assailed the award dated 23.07.2018, whereby the Labour Court dismissed their claims/references and denied them the reliefs sought against the common respondent/management.

2. Briefly stated, as per their respective claim applications, the workwomen, namely Seema and Pushpa Pal, had been working with the management as permanent skilled workers in ‘Hand Embroidery’ for several years. The petitioner/Seema had joined service in July 2003 whereas the petitioner/Pushpa Pal had joined service on 01.01.1997. The last drawn wages of both the workwomen were stated to be Rs.5,278/- per month. Both the workwomen averred that during the tenure of their service, they had performed their duties diligently and no complaint was ever made against either of them by the management. It was further averred that the management had failed to extend statutory and legal facilities to them, such as appointment letters, identity cards, pay slips, minimum wages, leave benefits, overtime wages, attendance cards, and other service benefits. According to the workwomen, upon repeatedly demanding such legal facilities, the management illegally terminated their services without paying their earned wages and other dues, and without complying with the mandatory provisions of the law. Aggrieved thereby, the workwomen raised industrial disputes seeking reinstatement with continuity of service, back wages and consequential benefits; however, upon failure of conciliation proceedings, the disputes were referred to the Labour Court for adjudication and, as noted above, the same came to be dismissed by the Labour Court.

3. Ms. Kochar, learned counsel appearing for the petitioners/workwomen, while assailing the impugned award, contends that the workwomen had been working with the management for several years as skilled workers without any complaints, but when they demanded legal facilities and statutory benefits, the management, in the garb of transfer, illegally terminated their services without issuing any notice, chargesheet or conducting any inquiry. She argues that the transfer of services shown by the management is only a cover to justify the illegal termination of the petitioners. It is contended that no proof regarding the service of the concerned transfer letters upon the workwomen has been placed on record and even the management witness admitted the same during cross-examination. It is further contended that the documents relied upon by the management, including the appointment letters, were fraudulently prepared using blank papers previously signed by the workwomen.

4. Per contra, Mr. Chawla, learned counsel appearing for the management in both petitions, defends the impugned award and submits that the petitioner workwomen were never terminated from service and their services were only transferred from the Okhla Unit of the management to the Gurgaon Unit, duly in compliance of the terms stipulated in the appointment letters and the Certified Standing Orders of the management. It is further submitted that the management repeatedly called upon the petitioner workwomen to report for duty at the new workplace through various letters and communications; however, the workwomen deliberately did not join their duties. He also submits that the ap

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