Labour Law: Transfer valid as per standing orders

Indian Trade Unions Act, 1926 – Industrial Employment (Standing Orders) Act, 1946, Section 3, 6, 7, 10(3) – Certified Standing Order, Clause 20, 31 – Labour Law – Transfer – Challenge as toHeld that whereas the Standing Order would cover the transfer from one department to another within the same unit/factory/office/establishment or from one job of similar nature and capacity to another job of same nature and capacity and also from one job to another similar job or from one shift to another shift – Per contra, the terms of appointment and confirmation would permit the transfer of an employee to any department or any works or offices belonging to the company -Clause 31 of the Schedule of the Standing Order specifically provides that nothing contained in the Standing Order shall operate in derogation of any law for the time being in force or cause prejudice to any right under contract of service, custom or usage or an agreement, settlement or award applicable to the establishment -Nothing contained in the Standing Orders can operate in derogation or to the prejudice of the provisions as provided in the contract of service – Held that the Division Bench erred in allowing the writ petition of the respondents, thereby holding the transfers to be illegal – Similarly, the learned Division Bench also erred in dismissing the writ petition filed by the appellants herein, which was filed challenging the award dated 28.02.2006- Said award was totally contrary to the earlier award passed by the very same Tribunal on 30.05.2001 – In the first order dated 30.05.2002, the learned Industrial Tribunal apart from holding that in view of Clause 20 and in terms of appointment and confirmation orders, the challenge to the transfer orders was not sustainable, also after discussing the entire material on record, found that the transfers were not mala fide – Impugned judgment and order is quashed and set aside – Writ Appeal No. 877 of 2006 filed by the respondent No.1 liable to be dismissed – The order dated 20.03.2006passed by the learned single judge in Writ Petition No. 44810of 2001 upheld – The order passed by the learned Tribunal dated 28.02.2006 is quashed and set aside. (Para 14 to 16 and 24)

SUPREME COURT OF INDIA

2024 STPL(Web) 189 SC

[2024 INSC 237]

M/S. Divgi Metal Wares Ltd. Vs. M/S. Divgi Metal Wares Employees Association & Anr.

Civil Appeal No(S). 2032 of 2011 With C.A. No. 2035 of 2011 C.A. NO. 2033 of 2011-Decided on 21-03-2024

https://stpllaw.in/wp-content/uploads/2024/04/2024-STPLWeb-189-SC.pdf

 

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Contract: Demurrage not allowed

Indian Contract Act, 1872 – Demurrage – Contractual Liability – Liquidated Damages – Breach of Contract – Adjudication of Claims – The petitioner, engaged in transportation business, participated in a competitive bidding process and was awarded a transportation contract by the Food Corporation of India (FCI). Dispute arose when FCI began deducting demurrage charges from petitioner’s bills for alleged delay in unloading wagons, despite petitioner not being responsible for wagon unloading.

The petitioner contested the deduction, arguing that as per the contract, demurrage cannot be unilaterally imposed by FCI unless liability is determined through due process of law.

The Court examined the relevant contract clause, which allowed FCI to recover costs, damages, etc., due to contractor’s negligence, but found it did not specifically authorize demurrage deduction.

Relying on the Supreme Court precedent in Food Corporation of India vs. Abhijit Paul, the Court held that demurrage could not be levied on the petitioner as the contract did not assign the task of wagon unloading to them.

The absence of a liquidated damages clause in the contract further supported the Court’s decision. The Court directed FCI to refund the deducted demurrage amount and refrain from further deductions, unless liability is determined through lawful adjudication.The order did not prevent FCI from seeking damages through proper legal channels. (Para 12, 15, 18, 22)

GAUHATI HIGH COURT

2023 STPL(Web) 184 Gauhati

[2024 STPL 1652 Gauhati]

Hi Speed Logistics Pvt Ltd. Vs. Food Corporation Of India And 5 Ors.

WP(C) 6317 of 2022-Decided on 8-11-2023

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Breach of peace: It must disturb public order, not just personal peace

Code of Criminal Procedure, 1973 – Sections 145, 146- Breach of peace – Emergency situation – Possession dispute – Civil litigation – Non-application of mind – Proceeding under Section 145 – Attachment under Section 146 – The application under Section 482 of the Code of Criminal Procedure, 1973 challenges the orders by the Executive Magistrate, concerning a dispute under Section 145 of the Code of Criminal Procedure, 1973 and subsequent attachment under Section 146(1) of the same.

The petitioner contests the legality of both orders, asserting that the initiation of the proceeding and the attachment were illegal and an abuse of process. It’s argued that the jurisdiction under Section 145 can only be invoked if there’s a likelihood of a breach of peace, which wasn’t sufficiently demonstrated in this case.

The petitioner highlights that the attachment order was passed ex-parte without affording them an opportunity to respond, which is contrary to the exceptional circumstances required for such an order. Reference is made to legal precedent discouraging parallel criminal proceedings when a civil litigation is pending regarding property possession, emphasizing the binding nature of civil court decrees.

The respondents counter by claiming entitlement to the land based on a partition deed and subsequent court judgments. They argue that emergency circumstances justified the attachment due to the petitioner’s attempt to construct on disputed land.

Legal precedents are cited to emphasize that the existence of an emergency, not just the use of the term “emergency,” warrants attachment under Section 146.

The judgment critically examines the orders and the circumstances leading to them. It observes discrepancies between the assertions made in the complaint and police report, highlighting the absence of clear grounds for apprehension of breach of peace.The judgment reiterates the requirement for a dispute likely to cause a breach of peace under Section 145, emphasizing that it must disturb public order, not just personal peace.

It concludes that the impugned orders suffer from non-application of mind and jurisdictional error, resulting in injustice to the petitioner. Consequently, both orders are quashed, and the petition is allowed. Important Paragraph Numbers of Judgment: (Para 13, 19, 30, 31)

GAUHATI HIGH COURT

2023 STPL(Web) 183 Gauhati

[2024 STPL 1651 Gauhati]

Md. Osman Ali Saikia And Anr. Vs. Chand Mahamod Saikia And 2 Ors.

Crl.Pet. 239 of 2021-Decided on 8-11-2023

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Electricity: Outstanding arrears from previous owner

Constitution of India, Article 226 – Assam Electricity Regulatory Commission [Electricity Supply Code and Related Matters] Regulations, 2004 – Electricity Act, 2003 – Section 43, 49, 50, 56 – Electricity – Outstanding arrears from previous owner – The petitioner, a partnership firm, sought a writ petition under Article 226 challenging a decision by the Assam Power Distribution Company Limited (APDCL) to deny a new electricity connection to their premises due to outstanding arrears from previous electricity bills.

The court directed interim relief for immediate electricity connection, subject to 50% payment of outstanding dues, with the remaining 50% to be paid upon dismissal of the writ petition.

The petitioner participated in an auction sale of a property and purchased a portion of land with a Business Centre cum Market Complex. They subsequently applied for a new electricity connection, which was denied by APDCL citing outstanding dues.

The court referred to the Assam Electricity Regulatory Commission [Electricity Supply Code and Related Matters] Regulations, 2004 and the Electricity Act, 2003. It cited a Supreme Court decision (K.C. Ninan vs. Kerala State Electricity Board) regarding the liability of auction purchasers for previous dues in properties sold on ‘as is where is’ basis.

The court dismissed the writ petition, holding the petitioner liable for outstanding electricity dues as per the auction sale agreement. It directed the petitioner to pay the outstanding dues as per the interim order, with APDCL waiving the accrued interest on the principal dues. (Para 15, 16)

GAUHATI HIGH COURT

2023 STPL(Web) 182 Gauhati

[2024 STPL 1650 Gauhati]

M/S Borah And Companyjiban Phukan Nagar Vs. Assam Power Distribution Company Ltd. And 3 Ors.

WP(C) 989 of 2014-Decided on 7-11-2023

2023 STPL(Web) 182 Gauhati

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