Divgi Metal Wares Ltd. Vs Divgi Metal Wares Employees Association & Anr. (Supreme Court of India)
Transfer is valid when nothing in standing orders operate in derogation of contract of service.
The appellant is into manufacturing of automobile gears at two of its factories located in Pune, Maharashtra and other in Sirsi, Karnataka. The respondent is a registered trade union. Clause 20 of the certified standing orders provide for transfer of the employees within the establishment across its branches or departments. Any refusal to accept the transfer amounts to misconduct. Clause 31 provides for overriding effect of the contract of service, custom or usage or an agreement or award over the standing orders if the provisions in standing orders are prejudice to the provisions in the said instruments. Clause 5 of the letter of appointment and clause 1 of the letter of confirmation provides for transfer of employee. The appeal challenging the certified standing orders filed before the Industrial Tribunal was rejected, as the appeal is time barred.
Due to drop in work orders, 66 workmen of the Sirsi factory in Karnataka are transferred to Pune, Maharashtra. All workmen were paid salary advance and travel expenses. Workmen collected the said amount, however, they had not reported at the Pune factory. The transferred workmen raised an industrial dispute which was referred to the Industrial Tribunal.
