ALL INDIA ITDC WORKERS UNION AND ORS. versus ITDC & ORS.

ALL INDIA ITDC WORKERS UNION AND ORS. versus ITDC & ORS.

Disinvestment is a government policy decision, least interfered with by courts under judicial review. Employees have no absolute constitutional right to prevent disinvestment or insist on parity or application of VRS. Interests of the workers are protected by contractual and statutory safeguards and by adherence to the terms of the share purchase agreement; allegations of distress sale and adverse impact are unsubstantiated.

Parties
Petitioner: ALL INDIA ITDC WORKERS UNION AND ORS.; Respondent: ITDC & ORS.
Jurisdiction
India
Judgment Date
31 October 2006
Procedural Posture
Transferred Case (civil) No. 73 of 2002 With T.c. (civil) No. 76/2002 / Final Disposal by Supreme Court
Outcome
Writ petitions dismissed.
Legal Topics
Disinvestment Policy, Judicial Review of Government Policy, Service Conditions on Disinvestment, Voluntary Retirement Scheme (vrs), Parity of Employees, Transfer of Undertaking
Constitutional Law Administrative Law Labour Law Company Law Disinvestment Policy Judicial Review of Government Policy Service Conditions on Disinvestment Voluntary Retirement Scheme (vrs) +2 more

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Parties

ALL INDIA ITDC WORKERS UNION AND ORS.

Petitioner

ITDC & ORS.

Respondent

Procedural Posture

Transferred Case (civil) No. 73 of 2002 With T.c. (civil) No. 76/2002 / Final Disposal by Supreme Court

Legal Issues

  1. 1 Whether the disinvestment decision by the Government of India in relation to ITDC is arbitrary or illegal
  2. 2 Whether the Government is obliged to float VRS for transferred employees
  3. 3 Whether service conditions of employees are adversely affected by the transfer

Ratio Decidendi

Disinvestment is a government policy decision, least interfered with by courts under judicial review. Employees have no absolute constitutional right to prevent disinvestment or insist on parity or application of VRS. Interests of the workers are protected by contractual and statutory safeguards and by adherence to the terms of the share purchase agreement; allegations of distress sale and adverse impact are unsubstantiated.

Court Disposition

Writ petitions dismissed.

Orders

  • Transfer cases disposed of.
  • No order as to costs.