Citation : 2023 Latest Caselaw 4913 Bom
Judgement Date : 5 June, 2023
2023:BHC-AS:14631
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Sayali Upasani
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.2438 OF 2023
1. The Indian Express (P) Limited,
A Company incorporated under the
provisions of the Companies Act, 1956
and having its registered office at 7th
floor, Mafatlal Centre, Ramnath Goenka
Marg, Nariman Point, Mumbai-400021.
2. Ms. Vaidehi Thakar, of Mumbai
Indian Inhabitant, Director of The
Indian Express (P) Limited and having
its registered office at 7th floor,
Mafatlal Centre, Ramnath Goenka
Marg, Nariman Point, Mumbai-400021.
3. Mr. Nitin Jumde, of Pune Indian
Inhabitant General Manager of the
Indian Express (p) Limited having
his office at 1205/2/C, 1st floor,
Express House, Shirole, Off J.M.
Road, Pune-411 005. .... PETITIONERS.
1/23
::: Uploaded on - 05/06/2023 ::: Downloaded on - 08/06/2023 08:58:59 :::
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VERSUS
1. Mr. Ganesh Gopinath Rane,
Age-42 of Mumbai Indian Inhabitant,
residing at Room No. 1, Vijay Niwas,
Jangal Mangal Road, Bhandup (W)
Mumbai-400078.
2. Mr. Vivek Gajanan Sagvekar,
Age-43 of Panvel Indian Inhabitant,
residing at c/o Shreya Sagvekar,
Flat No. 404, Swarn Shilp, Plot No. 1032,
Pal Naka, Panvel,
Dist. Raigad-410206. ....RESPONDENTS
Mr. Darius Khambata, Senior Counsel, a/w Mr. Amol Joshi,
Ms. Tejaswi Ghag, Mr. Shivam Singh i/b Poorvi Kamani, for
Petitioners.
Ms. Jane Cox i/b Mr. Ghanshyam Thombare, for
Respondents.
CORAM:- N. J. JAMADAR, J.
RESERVED ON:- 5th APRIL, 2023 PRONOUNCED ON:- 5th JUNE, 2023
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JUDGMENT:-
1) Rule. Rule made returnable forthwith and with the
consent of the learned Counsel for the parties heard finally.
2) By this Petition the petitioners take exception to an order
dated 28th November, 2022, passed by the learned Member,
Industrial Court at Thane on an application for interim relief
(Exhibit-U-2) in Complaint (ULP) No. 219 of 2022, declaring that
the petitioners engaged in unfair labour practices under items 9
and 10 of Scheduled-IV of The Maharashtra Recognition Of
Trade Unions And Prevention Of Unfair Labour Practices Act,
1971 ("the Act 1971"), and temporarily restraining them from
indulging in such unfair labour practices and staying the orders
dated 7th November, 2022, of deputing the respondent Nos.1 and
2 to the offices at Lucknow and Chandigarh, respectively, till the
final disposal of the complaint.
3) The petition arises in the backdrop of the following facts.
(a) Petitioner No.1 is engaged in Print Media. It publishes,
inter alia, newspapers, "the Indian Express" and "Loksatta".
One of its printing presses is located at Mahape, Navi Mumbai.
Respondent Nos.1 and 2 are designated as Senior Printers and
posted at Mahape.
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(b) Petitioner No.1 asserts, on account of intense competitive
atmosphere in media business and the situation which arose
due to Covid-19 pandemic, the operations at Mahape Printing
Press have been considerably affected and instead of three shifts
work is being carried out thereat in one shift only. In order to
better utilise the workforce, without disturbing the personal and
family life of its employees, the Petitioner No. 1 decided to send
experienced Printers on six months deputation to the printing
presses at other locations. Thus, to best deploy available
resources and have smooth and effective operations, under an
order dated 7th September, 2022, Respondent No. 1 was deputed
to work at Lucknow press with effect from 15th November, 2022.
Likewise the respondent No. 2 was deputed to work at
Chandigarh press. The petitioners made provisions for
reimbursement of the travel expenses, suitable accommodation
at the places to which respondent Nos.1 and 2 have been
ordered to be deputed and deputation allowance of Rs.2,000/-,
per month.
(c) The respondent Nos.1 and 2, upon being served with the
deputation orders, lodged a complaint of unfair labour practices
under items 3, 5, 9 and 10 of Schedule-IV of the Act 1971,
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alleging, inter-alia, that the orders were in effect transfers
disguised as deputation.
(d) It was alleged that the respondent Nos.1 and 2 were being
victimized for having lodged an earlier complaint being
complaint (ULP) No.160 of 2022. In the said complaint by an
order dated 19th September, 2022, the Industrial Court had
directed the petitioner - employer to give seven days advance
notice to complainants therein before they were transferred. Yet,
under two months of the said interim order, by the impugned
order, the respondent Nos. 1 and 2 were sought to be displaced
and harassed under the guise of deputation as the employer
could not have effected the transfer of respondent No.1 and 2.
The action was, thus, clearly mala fide and also with an oblique
motive to circumvent the interim order passed by the Industrial
Court in complaint (ULP) No.160 of 2022.
(e) It would be contextually relevant to note that, in complaint
(ULP) No.160 of 2022, the principal grievance of the
complainants therein was that the employer was interfering in
the union activities and elections and had made an endavour to
influence the election so that the Union was represented by
pliant representatives.
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(f) In the complaint, respondent No.1 and 2 moved an
application for interim relief, seeking stay to the deputation
order dated 7th November, 2022.
(g) The petitioners resisted the application for interim relief by
filing an affidavit-in-reply. It was categorically denied that the
deputation order was issued either to circumvent the interim
order passed in complaint (ULP) No.160 of 2022, or to victimise
the respondent Nos.1 and 2. It was contended that, deputation
was necessitated by business exigency. Deputation did not
amount to transfer. Neither there were any change in the duties,
which the respondent Nos.1 and 2 were discharging at Mahape.
Nor any change in the conditions of service.
4) The learned Member Industrial Court after appraisal of
the pleadings, material on record and import of the order
passed in complaint (ULP) No. 160 of 2022, was persuaded to
hold that a prima-facie case of unfair labour practice was made
out and the respondents-employees were entitled to interim
protection. The learned Member was of the view that the
deputation order was issued under two months of the interim
order passed in complaint (ULP) No.160 of 2022, and it appeared
to have been issued as a retaliatory measure to the lodging of
the said complaint. In the wake of the allegations of the
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employer interfering with the employees Union election. It was
further held that by way of deputation, the respondent Nos.1
and 2 were professed to be assigned duties of Administrative or
Supervisory nature at a distant place. In substance, though the
learned Member reckoned that the deputation ordinarily does
not amount to transfer, yet, in the backdrop of the
circumstances of the case, an element of victimization was
prima-facie made out. Holding thus, the Industrial Court stayed
the effect and operation of the deputation Orders.
5) Being aggrieved the petitioners have invoked the writ
jurisdiction.
6) An affidavit-in-reply is filed on behalf of respondent Nos.1
and 2 in support of the impugned order.
7) I have heard Mr. Khambata, the learned Senior Counsel
for the petitioners, and Ms. Jane Cox, the learned Counsel for
respondent Nos.1 and 2 at some length. With the assistance of
learned counsel for the parties, I have also perused the material
on record including the orders passed by the industrial court.
8) Mr. Khambata submitted that the learned Member
Industrial Court misdirected himself in staying the deputation
orders despite recording that deputation ordinarily does not
amount to transfer. Mr. Khambata strenuously submitted that
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deputation of an employee to meet the business exigencies is
within the province of the authority of an employer and,
ordinarily, is not susceptible to interference by Courts and
Tribunals. In the case at hand, according to Mr. Khambata, the
circumstances did not warrant interference by the industrial
court. Amplifying the submission Mr. Khambata would urge
that, firstly, the ground of victimization for lodging complaint
(ULP) No. 160 of 2022, could not have been pressed into service
as admittedly respondent No.2 was not one of the complainants
and, thus, no case on that count could have been
countenanced.
9) Secondly, according to Mr. Khambata, the learned
member Industrial Court was in error in observing that there
was change in the nature of duties and the respondents were
being called upon to discharge administrative or supervisory
duties, while they are posted as Senior Printers.
10) Thirdly, victimization could not have been attributed to the
petitioners as the other employees had been sent on deputation
prior to the respondent Nos.1 and 2, and, on account of the
impugned order, in place of respondent Nos. 1 and 2, other
employees have been deputed. In any event, according to Mr.
Khambata, the foundational premise of the alleged interference
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by the management in the affairs of the Union is unsustainable
as it was essentially a dispute between two groups of the
employees. Therefore, on none of the grounds the order of the
Industrial Court deserves to be sustained.
11) Per contra, Ms. Cox, learned counsel for the respondent
Nos.1 and 2 submitted that there is no such perversity in the
impugned order, which would warrant interference in exercise of
writ jurisdiction. The learned Member Industrial Court has
ascribed justifiable reasons for grant of interim relief. Such
order is not susceptible to interference in exercise of extra
ordinary jurisdiction, especially where the Industrial Court has
exercised the discretion in favour of the employees, submitted
Ms. Cox.
12) Ms. Cox urged with tenacity that the instant proceeding
can not be appreciated independent of and disjointed from the
allegations in the complaint (ULP) No.160 of 2022. A clear case
of interference in the Union activity was made out, which
impelled the same learned Member Industrial Court to grant
interim relief in that complaint. Since the management was
restrained from transferring the complainants therein without
seven days prior notice, the management resorted to seemingly
innocuous device of deputation but equally effective in
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displacing and harassing the respondent Nos.1 and 2,
submitted Ms. Cox.
13) Controverting the submissions on behalf of the Petitioners
that there was exigency of the situation, Ms. Cox would urge
that the work professed to be assigned to respondent Nos. 1 and
2 at the place of deputation detracts materially from the said
claim. The duties which the respondent Nos. 1 and 2 are to
perform at the place of deputation, are distinctly administrative
and supervisory in nature and bear no co-relation to duties of
the Senior Printers, now being performed by respondent Nos. 1
and 2 at Mahape. Therefore, the learned Member Industrial
Court was fully justified in staying the effect and operation of
the impugned deputation order, submitted Ms. Cox.
14) Ms. Cox would further urge that there can be no
deputation at different offices under the same employer. At any
rate such deputation can not be without the consent of the
deputationist. To bolster up this submission, Ms. Cox placed a
strong reliance on the judgment of Supreme Court in the case of
Ms. Sarita Singh Vs. M/s. Shree Infosoft Private Limited 1.
15) I have carefully considered the rival submissions canvased
across the bar. Few uncontroverted facts deserve to be noted to
1 2022 SCC Online SC 65.
4-WP-2438-23.DOC
narrow down the controversy. Indisputably, respondent Nos.1
and 2 are presently posted at Mahape as Senior Printers. There
is not much controversy over the fact that a complaint (ULP)
No.160 of 2022, was lodged alleging unfair labour practice under
the Act, 1971, and in the said complaint an interim order came
to be passed on 19th September, 2022, directing the employer to
give seven days clear notice before effecting any transfer.
16) It would contextually relevant to note that the fact that
respondent No.2 is not the complainant therein could not be
contested. However, an affidavit is affirmed by respondent No.2,
in this Petition that he was also present in the meeting held to
elect the office bearers of the Union on 8 th August, 2022, and
had objected to the election of the officer bearers who, according
to respondent Nos.1 and 2, are pliant. Issue and service of the
deputation orders dated 7th November, 2022, deputing the
respondent No.1 at printing press Lucknow and Chandigarh,
respectively, are not in dispute.
17) As considerable submissions were canvased on the alleged
change in the nature of duties and the terms of orders of
deputation, it may be necessary to extract the relevant part of
the order, in respect of Ganesh Rane, respondent No. 1. It reads
as under:-
4-WP-2438-23.DOC
"This is to inform you that you have been deputed to Lucknow Press in the Rotary Department for a period of six months beginning from 15/11/2022 due to exigencies of work. Your key result areas during your deputation are:
(a) Monitoring the quality of product and ensure deadlines are met.
(b) Work towards improving the quality in terms of density, registration and ink control of the product.
(c) To ensure proper make ready checks to reduce start up waste and also time in between chageovers.
(d) Strive to achieve/improve and maintain print waste target.
(e) Identify recurring problem affecting smooth production and minimizing them in coordination with the maintenance team.
Please find below the Lucknow Press address. The Indian Express (P) Ltd 1/8, Vivekkhand, Gomati Nagar, Lucknow-226010 "
18) The orders further provide that the respondent Nos.1 and
2 would be entitled to receive deputation allowance of
Rs.2,000/-per month, along with monthly salary, and their
traveling expenses would be reimbursed and suitable
accommodation would be also provided to them. It was further
added that 'all other terms and conditions of the service of
respondent Nos.1 and 2 would remain unchanged'.
19) Respondent No.1 was initially appointed as trainee "Semi-
Skilled Baller" with effect from 1 st April, 2003. Respondent No.2
was initially appointed as "Senior Semi-Skilled Baller" with
4-WP-2438-23.DOC
effect from 1st December, 2006. It is incontrovertible that
transfer to any place / department in India in any of Petitioner
No.1's office, associate concern or publication or allied offices
then in existence or to be established later, was an express term
of employment of both Respondent Nos.1 and 2 in the respective
appointment orders.
20) In the context of the express term of transferability, the
challenge to the order of deputation as a mala fide exercise and
an instrument of victimization deserves to be appreciated. The
broad submission on behalf of the respondent Nos.1 and 2 that
the impugned orders dated 7th November, 2022, are, in effect,
transfers and not "deputation", deserves to be considered first.
21) On first principles, in my view, the said challenge does not
carry much conviction in the face of an express term of
transferability. If an employee can, under the terms of the
contract, be transferred to any place in India, a fortiorari the
employee can be posted by way of deputation. Nonetheless, the
challenge deserves to be appreciated on the anvil of juridical
connotation of the term, "deputation".
22) In the case of Ms. Sarita Singh (supra), the Supreme
Court after adverting to the previous pronouncements in the
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cases of State of Punjab Vs. Inder Singh2, Umapati Choudhary
Vs. State of Bihar3 and Union of India Vs. S.N. Maithy 4, in which
the juridical connotation of the term, "deputation" was
expounded, enunciated that a deputation was a tripartite
consensual agreement between the lending employer, borrowing
employer and the employee. Specific rights and obligations
would bind the parties and govern their conduct. A transient
business visit without any written agreement detailing terms of
deputation will not qualify as a deputation unless the
respondent were to lead cogent evidence to indicate that the
appellant was seconded to work overseas on deputation.
23) The aforesaid observations were made in the backdrop of
the peculiar facts of the said case wherein the appellant therein
was sued by the employer for having tendered resignation within
a certain period of her overseas stint for a period of 82 days, as
under the terms of the contract appellant therein was required
to serve the respondent-company for a certain period depending
upon the period of overseas deputation.
24) In the case of Inder Singh (Supra), the question before the
Supreme Court was whether the Police personnel who were on
2 (1997) 8 SCC 372 3 (1999) 4 SCC 659 4 (2015) 4 SCC 164
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deputation with CID Punjab Police for years together should be
permitted to be repatriated to their parent cadre, on a relatively
lower position. In that context, the Supreme Court expounded
the concept of 'deputation' as under :-
"....18. The concept of "deputation" is well understood in service law and has a recognised meaning. 'Deputation' has a different connotation in service law and the dictionary meaning of the word 'deputation' is of no help. In simple words 'deputation' means service outside the cadre or outside the parent department. Deputation is deputing or transferring an employee to a post outside his cadre, that is to say, to another department on a temporary basis. After the expiry period of deputation the employee has to come back to his parent department to occupy the same position unless in the meanwhile he has earned promotion in his parent department as per Recruitment Rules. Whether the transfer is outside the normal field of deployment or not is decided by the authority who controls the service or post from which the employee is transferred. There can be no deputation without the consent of the person so deputed and he would, therefore, know his rights and privileges in the deputation post. The law on deputation and repatriation is quite settled as we have also seen in various judgments which we have referred to above. There is no escape for the respondents now to go back to their parent departments and working there as Constables or Head Constables as the case may be....."
25) In the case of Umapati Choudhary (supra), the question
before the Supreme Court was, whether the appellant therein
should be treated as a permanent employee of the Bihar
Sanskrit Shiksha Board or he was on deputation to the Board
from Kameshwar Sirigh Darbhanga Sanskrit University. While
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answering the question in favour of the appellant and treating
him to be a permanent employee of the Board, the Supreme
Court explained the import of the term 'deputation' as under :-
"....8. Deputation can be aptly described as an assignment' of an employee ( commonly referred to as the deputationist) of one department or cadre or even an organisation (commonly referred to as the parent department or lending authority) to another department or cadre or organisation (commonly referred to as the borrowing authority). The necessity for sending on deputation arises in public interest to meet the exigencies of public service. The concept of deputation is consensual and involves a voluntary decision of the employer to lend the services of his employee and a corresponding acceptance of such services by the borrowing employer. It also involves the consent of the employee to go on deputation or not. In the case at hand all the three conditions were fulfilled...."
26) In the case of S N Maity (Supra), the distinction between
"transfer on deputation" and "appointment on deputation" was
adverted to, by the Supreme Court, and the following
observations were made:
"15. The controversy that has emerged in the instant case is to be decided on the touchstone of the aforesaid principles of law. We have already opined that it is not a case of simple transfer. It is not a situation where one can say that it is a transfer on deputation as against an equivalent post from one cadre to another or one department to another. It is not a deputation from a Government Department to a Government Corporation or one Government to the other. There is no cavil over the fact that the post falls in a different category and the 1st respondent had gone through the whole gamut of selection. On a studied scrutiny, the notification of appointment makes it absolutely clear that it is a tenure posting and the fixed tenure is five years unless it is
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curtailed. But, a pregnant one, this curtailment cannot be done in an arbitrary or capricious manner. There has to have some rationale. Merely because the words 'until further orders' are used, it would not confer allowance on the employer to act with caprice...."
27) The aforesaid pronouncements, with respect, were
rendered in a completely different fact-situations. Undoubtedly,
the connotation of the term, "deputation' in service law, was
expounded in each of the aforesaid cases. Few broad features of
deputation were spelled out. However, it would be difficult to
accede to the broad submission that there can be no deputation
at a different office, simplocitor, under the same management. It
does not seem to be an immutable rule that the deputation
must be to an establishment under a different employer. In my
view, the concept of "deputation" is elastic enough to cover, in its
fold, even a case where an employee is deputed to work at
another office under the control of the same management.
Thus, the primary challenge sought to be raised by Ms. Cox
does not merit acceptance.
28) This takes me to the aspect of alleged victimization. The
learned Member, Industrial Court was of the view that since the
impugned order of deputation came to be issued under two
months of the interim order passed in complaint (ULP) No. 160
of 2022, it prima facie appeared to be an exercise in
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circumvention of the said order and, thus, amounted to
victimization.
29) Mr. Khambata endeavored to draw home the point that
since respondent No.2 was not the complainant in complaint
(ULP) No. 160 of 2022, the said impugned deputation order
could not have been interdicted on that ground. I am not
persuaded to take such a technical view of the matter. Since
respondent No.1 was indubitably one of the complainants in the
said complaint and respondent No.2 has affirmed an Affidavit
joining the cause with the complainants in the said complaint, I
deem it appropriate to deal with the substance of the challence
to the deputation.
30) It is a common ground that the genesis of the said
complaint (ULP) No. 160 of 2022, was the alleged interference by
the management in the election to the employees Union. A
specific allegation is made that the petitioner No.3 - General
Manager of petitioner No.1 declared himself as the Election
Officer and, ignoring the objections of the rest of the employees,
declared that only eleven nominations were received and office
bearers were elected unopposed.
31) This allegations, even if taken at par, in my view, relate to
a matter of moment. There is substance in the submission of
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Mr. Khambata that the disputes were essentially between the
groups of employees. Having regard to the nature of the dispute,
it would be difficult to sustain the allegation of mala fide for a
length of time. Moreover, the grievance raised by the
complainants as regards to the election came to be rejected by
the Sub-Registrar under the Bombay Industrial Relations Act,
1946, by an order dated 28th March, 2023. Thus, prima facie, in
the context of a dispute between the group of employees over the
rival claims to the office beararship of the Union, mala fide can
hardly be attributed to the management.
32) Ms. Cox would then urge that the duties which the
respondent Nos. 1 and 2 were supposed to discharge at the
place of deputation are primarily of administrative or
supervisory nature. Inviting the attention of the court to
Schedule - III of the Order dated 11 th November, 2011 issued by
the Government of India after Acceptance of the Majithia Wage
Boards Grouping of Non-Journalist Newspaper Employees-
Factory Staff, it was urged that the Senior Printers and
Supervisors are distinct posts and their duties are not
interchangeable.
33) Mr. Khambata, on the other hand, would urge that the
Senior Printers and Supervisor are included in one and the
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same group and a Senior Printer is excepted to supervise the
printing machines. Therefore, according to Mr. Khambata, there
is no change in the duties, which the respondent Nos. 1 and 2
would be required to perform post deputation.
34) The duties under the caption 'key results area', in the
deputation order, are extracted above. On a careful perusal of
the key results areas, which the respondent Nos. 1 and 2 are
expected to achieve during the deputation, one gets an
impression that the articulation is of efficient discharge of the
duties. The underlying theme is quality control and efficient
output.
35) I find it rather difficult to agree with the submissions that
the respondent Nos. 1 and 2 are called upon to discharge
administrative or supervisory functions far detached from the
work, which the respondent Nos. 1 and 2 now perform as Senior
Printers.
36) The conspectus of the aforesaid consideration is that,
prima facie, the order of deputation does not seem to be
actuated by mala fide. The learned Member Industrial Court lost
sight of the pivotal fact that transferability was an essential
term of employment. The deputation, in the circumstances of
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the case, appeared to be in pursuit of the optimum and better
utilization of the available resources.
37) The learned Member also lost sight of the fact that the
respondent Nos. 1 and 2 were no singled out and discriminatory
treatment was meted out to them. Petitioners have affirmed that
two Senior Printers, Mr. Vaibhav Palav and Mr. Sharad Pawar
had been transferred to Chandigadh and Lucknow, respectively,
and were reposted at Mahape.
38) The duration of deputation was also not adequately
considered by the learned Member Industrial Court. The
deputation for a short period to meet the exigency of the
situation can be said to be a normal incidence of employment.
In any event, to rule out the possibility of the respondent Nos. 1
and 2 being displaced for a long period under the guise of
deputation, the petitioners were directed to file an affidavit.
Thereupon an affidavit is filed by the petitioner No. 2.
39) The petitioner No. 2 has affirmed that the respondent Nos.
1 and 2 and such other employees at Mahape establishment/
printing press who are/ shall be sent on deputation for a period
not exceeding six months to other industrial
establishments/printing presses of the Petitioner No.1-
company, their term of "deputation" would not be extended and
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at the end of the period of deputation, those persons shall
return to their duties at Mahape establishment/printing press.
40) At this juncture, a reference to the judgment of this Court
in the case of Vidyut Metallics Pvt Ltd Vs. Maharashtra Rajya
Rashtriya Kamgar Sangh and Another5 may be necessary. In the
said case, it was observed that it is an inherent power of the
employer to depute its employees to meet specific exigencies and
so long as the said deputation is not being ordered to transfer
the employees under the guise of managerial authority, there
was no case to interfere with the order of deputation.
41) The upshot of aforesaid consideration is that the learned
Member Industrial Court committed an error in restraining
Petitioners from giving effect to the order of deputation for a
period of six months. Since the discretion was exercised on an
incorrect premise and without correctly appreciating the legal
position, interference is warranted in exercise of writ
jurisdiction. Hence, the Petition deserves to be allowed.
42) Thus, the following order.
-:ORDER:-
i) The Petition stands allowed.
ii) The impugned order stands quashed and set aside.
5 (2002) 2 LLJ 829
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iii) If the petitioners still consider it to be necessary
to depute the respondent Nos. 1 and 2, in accordance
with the orders dated 7th November, 2022, the
respondent Nos. 1 and 2 shall be given 15 days time to
join at the place of deputation.
iv) In that eventuality, the petitioners shall abide
by the undertaking in the affidavit of petitioner No. 2
dated 30th March, 2023 that the deputation of any
employee will not be extended beyond six months and
they will be reposted at Mahape Printing Press after
the end of six months deputation.
v) It is hereby made clear that this order shall not
construed as an authority to the petitioners to post
the other employees on deputation at other
establishment/press and in case the legality and
validity of any such order is questioned, it shall be
decided on its own merit and in accordance with law.
vi) Rule made absolute in the aforesaid terms.
No order as to costs.
[N. J. JAMADAR, J.]
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