Govt workers can't be transferred without consent: SC
The SC held that govt employees can't be transferred to the private sector in the event of sale of state-owned companies. Retire healthy, wealthy and wise!
By PTI |
NEW DELHI: In a judgment of far reaching consequence, the Supreme Court on Thursday held that government employees cannot be transferred to the private sector in the event of sale of state-owned companies.
Such transfers could be done only with the consent of the employees, a bench comprising Justices Tarun Chatterjee and P Sathasivam said on a petition from BALCO Captive Power Plant Mazdoor Sangh seeking to restrain NTPC from transferring them to Sterlite group after the sale of BALCO in 2002.
"The government... cannot alter the conditions of service of its employees and any such alteration causing prejudice cannot be effected without affording opportunity of pre- decisional hearing and the same would amount to arbitrary and violative of Article 14," the apex court stated.
The bench, while setting aside the Chhattisgarh High Court judgment that dismissed the employees' petition, said: "The transfer of employees from NTPC, a PSU, to BALCO which is a private organisation is bad in law."
"We are satisfied that the employees have made out a case for continuing their service in NTPC... All employees are to be retained in NTPC," it said, adding that the power company being was under constitutional obligation to act fairly with its employees, particularly, the posts which were advertised from 1986 to 1988 when the BCPP was not fully commissioned.
The terms and conditions lead to an irresistible conclusion that NTPC was their employer in all purposes, Justice P Sathasivam, writing the verdict for the bench, stated, adding that the employees were not heard before changing their service conditions.
Such transfers could be done only with the consent of the employees, a bench comprising Justices Tarun Chatterjee and P Sathasivam said on a petition from BALCO Captive Power Plant Mazdoor Sangh seeking to restrain NTPC from transferring them to Sterlite group after the sale of BALCO in 2002.
"The government... cannot alter the conditions of service of its employees and any such alteration causing prejudice cannot be effected without affording opportunity of pre- decisional hearing and the same would amount to arbitrary and violative of Article 14," the apex court stated.
The bench, while setting aside the Chhattisgarh High Court judgment that dismissed the employees' petition, said: "The transfer of employees from NTPC, a PSU, to BALCO which is a private organisation is bad in law."
"We are satisfied that the employees have made out a case for continuing their service in NTPC... All employees are to be retained in NTPC," it said, adding that the power company being was under constitutional obligation to act fairly with its employees, particularly, the posts which were advertised from 1986 to 1988 when the BCPP was not fully commissioned.
The terms and conditions lead to an irresistible conclusion that NTPC was their employer in all purposes, Justice P Sathasivam, writing the verdict for the bench, stated, adding that the employees were not heard before changing their service conditions.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
