Delhi High Court High Court

S.C. Dubey vs Union Of India on 12 July, 1999

Delhi High Court
S.C. Dubey vs Union Of India on 12 July, 1999
Equivalent citations: 86 (2000) DLT 523
Author: K Ramamoorthy
Bench: K Ramamoorthy


ORDER

K. Ramamoorthy, J.

1. The second respondent is a public sector undertaking engaged in the manufacture of electronic instruments and manufacture of colour TVs and engaged in other activities with reference to electronics. The Headquarters of the second respondent is in Hyderabad and its factory is also in Hyderabad. The second respondent has been having officers in all over India. In the manufacture of colour TVs, the second respondent had been for nearly ten years incurring losses. Therefore, the second respondent decided to close down the manufacture of colour TVs. The second respondent had its sale and service sections/wings for colour TVs in all over India on zonal basis. When the losses were mounting and going on beyond unmanageable limit, the second respondent decided to close down the manufacture of colour TVs.

2. The effect was that it had to restructure its zonal wings and to cut short its establishment so that loss is avoided. In the process of restructuring its business, the second respondent formulated a scheme giving option to the employees in the zone who had likely to lose their employment in the second respondent. None of the employees concerned came forward to exercise his option. That gave rise to a lot of managerial problems and the second respondent evolved a method to get all such employees to Hyderabad to provide them employment so that they can continue to serve the company
in different fields. Transfer orders were issued by the second respondent in respect of employees in all zones.

3. With reference to northern zone, the transfer order reads as under:-

Sub: Transfer of ICG Employees – Reg.

The following employees of ICG/North Zone are hereby transferred
to ICG/Hyderabad w.e.f. 1999.04.02.

      S.   Name                Code No.  Designation
     No.  S/Shri
     1.   GOVIND LAL          061742    TM
     2.   DUBEY S.C.          077127    STO
     3.   SADHAWANI M.L.      077993    STO
     4.   KAPOOR K.L.         061962    SO
     5.   PAL S.K.            046955    FM
     6.   SHARMA R.N.         061761    AFM
     7.   BALWAN SINGH        055937    T/E
     8.   ASHOK KUMAR         084637    T/E
     9.   TALWAR S.           094927    T/E
     10.  HAMID KHAN A.       062016    T/C
     11.  RAJ KUMAR           062021    T/C
     12.  ROOPCHAND           062049    T/C
     13.  BANGARI D.S.        062054    T/C
     14.  MOHAN SINGH         066712    T/C
     15.  JAGANNATH G.        061924    SR.SA
     16.  BHAGAT H.K.         061943    SR.SA
     17.  JAIN A.K.           081508    SA
     18.  BRIJ MOHAN          081359    TMT B
     19.  KAUSHIK A.K.        059546    STO
     20.  HARISH KUMAR        107653    OA
     21.  SITA RAM SHARMA     077639    TMT C
     22.  CHAUHAN D.S.        054892    STO
     23.  OBERIO A.K.         081694    T/E
     24.  INDERJIT SINGH      081752    T/E
     25.  NATH RAM            081733    TMT B
     26.  SARDAR SINGH        081747    TMT B
     27.  AMARSINGH           081785    TMT B
     28.  YUVRAJ MDHIMAN      110189    TO
     29.  DURGA PRASAD L.     077405    FM
     30.  NIRMALKAR C.L.      077716    T/E
     31.  MISHRA M.           107978    SA
     32.  RATANLAL SAHU       078435    TMT C

 

On transfer the above employees will report to Head/ICG at Hyderabad.

The above employees are eligible for transfer TA/DA etc.

This issues with the approval of Chairman & Managing Director.”

4. With reference to western zone, the transfer order reads as under:-

Sub: Transfer of ICG Employee- Reg.

The following employees of ICG/West Zone are hereby transferred
to ICG/Hyderabad w.e.f. 1999.04.02.

      S.   Name                Code No.  Designation
     No.  S/Shri
     1.   MEHTA N.K.          054672    SM
     2.   VYAS S.S.           044985    SO
     3.   ATKARI D.N.         046204    SO
     4.   SAWANT R.S.         050029    SO
     5.   SRIDHARAN K.        073341    ASO
     6.   THASAL B.T.         029318    SAA
     7.   PARAB R.D.          041798    T/E
     8.   MOHD ALI S.         050216    T/E
     9.   KULKARNI P.V.       052439    T/E
     10.  SHINDE M.N.         061666    T/E
     11.  SHAIK IQUBAL B.     064995    T/E
     12.  JAL GAONKAR H.B.    066271    T/E
     13.  GHOLAP B.T.         079336    T/E
     14.  SHAIKH M.R.A.       088356    T/E
     15.  JOSEPH V.A.         054208    T/C
     16.  SALUNKE K.B.        056637    T/C
     17.  BILE V.N.           061574    T/C (WZ)
                                   (Mumbai)
     18.  KARMARKAR S.D.      061608    T/C
     19.  NANGARE V.T.        064134    T/C
     20.  PARAS S.V.          064148    T/C
     21.  SATPUTE S.D.        057601    SR.SA
     22.  SHAIKH M.S.         083813    SR.SA
     23.  THAKUR M.M.         050034    SA
     24.  SALGAONKAR K.K.     10188     SA
     25.  KAPDELE S.N.        103177    SA
     26.  GAVADE J.Y.         054193    TMT D
     27.  PATIL P.J.          054213    TMT D
     28.  BALA KRISHNAN A.P.  056618    TMT D
     29.  DASGUDE P.G.        077438    STD
     30.  JOSHI A.N.          066558    SR. SA
                                   WZ (Pune)
     31.  KOHAT M.P.          001667    STO
     32.  KALE A.K.           109948    T/D
     33.  PANTAWARE K.R.      107595    SA (WZ)
                                   (Nagpur)

 

On transfer the above employees will report to Head/ICG at Hyderabad.

The above employees are eligible for transfer TA/DA etc.

This issues with the approval of Chairman & Managing Director.”

5. With reference to eastern zone, the transfer order reads as under:-

Sub: Transfer of ICG Employees -Reg.

The following employees of ICG/EZ (Calcutta) are hereby transferred to ICG/Hyderabad w.e.f. 1999.04.02.

      S.   Name                     Code No.  Designation
     No.
     1.   CHOWDHURY S.N.           058094       STO
     2.   HALDER A.K.              070374       SO
     3.   BIPLAB MANDAL            027961       SFM
     4.   MUKHERJEE R.             058109       FM
     5.   JAYDEB CHANDRA           058171       FM
     6.   ROY CHOWDHURY N.K.       091932       T/E
     7.   SAHA S.N.                061148       T/D
     8.   CHOUDHURI S.P.           109895       T/C
     9.   MAHUA CHAKRABORTY        070388       SA
     10.  MALLIK S.C.              073226       SA
     11.  MUKHERJEE D.             089851       ASST
     12.  SARKAR S.C.              103326       SA
     13.  SKUMAR PATRA             077922       STENO
     14.  SUKLA CHANDA             113539       UDC
     15.  DUTTA S.G.               029266       LVD
     16.  DAS N.C.                 061038       TMT C
     17.  ROY D.K.                 069189       TMT C
     18.  SWAIN R.C.               069247       TMT C
     19.  CHOUDHARY H.             069319       TMT C
     20.  DAS T.K.                 069381       TMT C
      
 

On transfer the above employees will report to Head/ICG at Hyderabad.

The above employees are eligible for transfer TA/DA etc.

This issues with the approval of Chairman & Managing Director.”

6. With reference to central zone, the transfer order reads as under:-

“Sub: Transfer of ICG Employees- Reg.

The following employees of ICG/CENTRAL ZONE are hereby transferred to ICG/Hyderabad w.e.f. 1999.04.02.

            S.   Name                     Code No.  Designation
     No.  S/Shri
     1.   KRISHNA MOHAN K.V.S.     110998    STO cz
     2.   JYOTI RANI S.            103881    SA (CZ)
                                        (Vijawada)
     3.   UMA SHANKAR RAO M.       043348    FM
     4.   MURTHY M.S.N.            500149    T/E

 

On transfer the above employees will report to Head/ICG at Hyderabad.

The above employees are eligible for transfer TA/DA etc.

This issues with the approval of Chairman & Managing Director.”

7. With reference to southern zone, the transfer order reads as under:-

Sub: Transfer of ICG Employees.

The following employees of ICG/SOUTH ZONE are hereby transferred
to ICG/Hyderabad w.e.f. 1999.04.02.

—————————————————-

     S.   Name                     Code No.  Designation
     No.  S/Shri

====================================================

1. THYAGARAJAN V. 043768 MGR

2. VISVESWARAN M.J. 002412 SFM

3. PRASADA RAO V. 038401 PS I

4. NAGESWARA RAO M. 101342 T/C (SZ) (Chennai)

5. SELVA RAJ R.V. 101361 T/D

6. PRASAD G.K.S. 087144 T/D

7. SUMATHI RAMAN 087709 SA

8. SAKURA RAMAKRISHNAN 061725 ASO

9. RAMA MURTHY 093863 T/E

10. RANGA SWAMY T. 093677 T/E

11. SHYAMALA SRIPAD C. 110506 SA (SZ)
(B’lore)

12. GAJENDRAN K. 094434 TMT B

13. NARAYANAPPA A. 094621 TMT B

14. GOVINDAIM 094633 TMT B

15. RAMAKRISHNAN P.V. 059623 STO

16. BALACHANDRAN M.P. 014939 SFM (SZ)
(Coimbattore)

17. SUBRAHMANYAM K.K. 052411 ASO

18. LAKSHMI NARAYANA S. 081799 TM

19. SARANGADHARAN K. 047267 FM

20. DHANDRAN K.K. 076408 TM

21. PILIAI F.R. 061957 SR.SA
(SZ Ernakulum)

22. SANKARAN A.V. 056929 SR.STENO

23. SHANKARAN K. 066692 RMT C

On transfer the above employees will report to Head/ICG at Hyderabad.

The above employees are eligible for transfer TA/DA etc.

This issues with the approval of Chairman & Managing Director.”

8. To show that arrangements had been made to accommodate the employees, the second respondent had placed on record at pages 201 to 207 the details with reference to the project wherein the employees from various zones, who had been transferred to Hyderabad, could be given employment. Though with reference to northern zone, the order of transfer as issued on the 4th of February, 1999, it was not given effect to in the interests of the employees concerned as the second espondent was in the process of finalising the project in Hyderabad.

9. The petitioners presented the writ petition in this Court on the 7th of April, 1999 and this Court on the 9th of April, 199 passed the ad interim orders in the following terms:-

“CW. 2073/99

Mr.Nayyar, the Learned Senior Counsel for the petitioners states that the page 60-A (Annexure-M) is a list of the employees who are proposed to be transferred to Hyderabad.

Issue notice to the respondents to show cause as to why the writ petition be not admitted returnable on 5.8.1999.

CM. 5010/99

Notice returnable on 5.8.1999.

In the meanwhile, the operation of the impugned order dated
February 4, 1999 (Annexure-M at page 60-A) shall remain stayed
until further orders.

DASTI,”

10. The second respondent had filed the application for vacating the stay mentioning the circumstances under which the orders of transfer from all zones to Hyderabad were made. The petitioners have challenged the orders of transfer on various grounds and that is resisted by the second respondent.

11. Mr. Rajiv Nayar, the learned senior counsel for the petitioner, submitted that:

1. The order of transfer was issued as a counter blast to the attitude of the petitioners not accepting the voluntary retirement scheme formulated by the second respondent.

2. The transfer is punitive in nature and it is really a camouflage to give an error verisimilitude to the order of transfer
and the closure of ICG business is not a genuine reason.

3. The purported reason for transfer that there is no business
for the Corporation, as a matter of fact there is enough business and there is lot of demand for colour TVs manufactured by the second respondent and the business of the second respondent is growing.

4. Officers of the second respondent, after having stated the situation, had requested the management to keep 25 persons out of 32 for being located in the north zone and letter in this behalf was issued by Zonal Manager and that has been ignored by the second respondent.

12. Mr. Rajiv Nayar, the learned senior counsel for the petitioners, in ying to elaborate points, submitted that voluntary retirement scheme was issued on the 13th of January, 1999 and the last date fixed was the 16th of February, 1999. No one has come forward with the offer to retire. On the 4th of February, 1999, the order of transfer was issued. The learned senior counsel referred to the acceptance of voluntary retirement by Shri Jagannath G and Shri Brji Mohan, who are at items 15 & 18 respectively in the transfer order dated 4.2.1999 and that would show that even after the last
day fixed by the second respondent, the applications by the above two employees had been accepted by the second respondent and the inference would be that the second respondent was exercising pressure on the employees, and according to the learned senior counsel, the second respondent had acted in a manner that others must follow suit.

13. The learned senior counsel for the petitioners, Mr. Rajiv Nayar, referred to the practice adopted by the second respondent to show that whenever there was closure of a particular section, the employees were retained in the same zone. The learned senior counsel submitted that no opportunity was given to the petitioners for being re-deployed in the same zone. The learned senior counsel also referred to the letter dated 8.2.1999 by the Zonal Manager about 25 employees. The learned senior counsel submitted that there was no justification for the employees not being re-deployed
in the northern zone. The learned senior counsel referred to other aspects about the letter issued by the Zonal Manager and the effect of closure of manufacture of colour TVs, and to cover wide field on facts. The learned senior counsel for the petitioners, Mr. Rajiv Nayar, relied upon the judgment of the Supreme Court in “National Radio Corporation Vs. Their workmen”, 1963 1 LLJ 282.

14. Mr. Mukul Rohtagi, the learned senior counsel for the second respondent, submitted that in a matter like this where the second respondent to meet its business exigencies has the right to restructure its business and in the process, it is entitled to evolve a method by which the employees who are likely to be sent out of service be given the benefit of voluntary retirement scheme, or they can be given employment so that they all could function until they attain the age of superannuation.

15. The learned senior counsel for the second respondent submitted that proper remedy of the petitioners to raise industrial dispute under the Industrial Disputes Act, 1947 so that so many factual aspects adumbrated in the writ petition could be adjudicated upon on proper footings by the Industrial Court, and the writ petition is not competent. The learned senior counsel further submitted that the order of transfer was issued with reference to all zones and it was in the circumstances in which the second respondent had to close the manufacture of colour TVs, and therefore, the order of transfer cannot be challenged by the petitioners. The learned senior counsel for the second respondent, Mr. Mukul Rohtagi, relied upon the following rulings in support of this proposition:-

1. “B. Varadha Rao Vs. State of Karnataka & Others”, .

2. “Gujarat Electricity Board Vs. Atmaram”, 1989 SC 1433.

3. “Shilpi Bose & Others Vs. State of Bihar & Others”, 1991
Supp (2) SCC 659.

4. “Surinder Singh Vs. Haryana State”, 1991 (4) SLR 699.

5. “Rajendra Roy Vs. Union of India & Others”, .

6. “N.K.Singh Vs. Union of India & Others”, .

7. “Punjab National Bank Vs. All India New Bank of India”, .

16. On the facts and circumstances, I am of the view that the petitioners have not made out any case for interference. The facts of the case in “National Radio Corporation Vs. Their workmen”, 1963 1 LLJ 282 are entirely different. Here the second respondent, a public sector undertaking, has been taking efforts to change the whole system of its functioning with a view to minimising the losses and to make profits in its business venture. In the process, the second respondent has to undertake such measures that are necessary for the proper conduct of its business. The second respond-ent, having realised its responsibilities, had given an opportunity to the employees to opt for voluntary retirement and that was not acceptable to the employees, the second respondent was obliged to take other steps in
achieving its goal so that the business venture could be put on sound lines to earn profits as the second respondent was dealing with public money. In so doing, the second respondent had taken steps to have some projects to accommodate the employees from all zones in Hyderabad, and when that has been done, the petitioners cannot have any grievance in law. The petition-ers have no right to say that the management should always act as per the directions of the employees, whatever may be the condition in which the management is functioning.

17. Under these circumstances, I am quite unable to persuade myself to accept the submissions made on behalf of the petitioners. Mr. Rajiv Nayar, the learned senior counsel for the petitioners, submitted that some of the petitioners are officers and some of them are workmen within the meaning of the Industrial Disputes Act, 1947 and the remedy under that Act could not be effected.

18. Under the circumstances, I am of the view that the petitioners are not entitled to any relief. The writ petition stands dismissed.

There shall be no order as to costs.