M/S. KUNDAN SUGAR MILLS versus ZIYAUDDIN AND OTHERS.

M/S. KUNDAN SUGAR MILLS versus ZIYAUDDIN AND OTHERS.

It was not a condition of service of employment of the concerned workmen, either express or implied, that the employer had the right to transfer them to a new concern started by the employer subsequent to the date of employment. Transferring workmen to another concern in such circumstances amounts to making a new contract and cannot be presumed in absence of an express term.

Parties
Appellant: M/S. Kundan Sugar Mills; Respondents: Ziyauddin and Others
Jurisdiction
India
Judgment Date
09 February 1960
Procedural Posture
Civil Appeal / Appeal by Special Leave From the Decision of the Labour Appellate Tribunal of India at Lucknow in Appeal No. III 45 of 1956, Arising Out of Award Dated February 6, 1956 of the State Industrial Tribunal, Allahabad, in Reference No. 96 of 1955.
Outcome
Appeal dismissed
Legal Topics
Transfer of Workmen, Implied Terms of Employment Contract, Industrial Disputes, Jurisdiction of Appellate Tribunal
Labour Law Industrial Law Transfer of Workmen Implied Terms of Employment Contract Industrial Disputes Jurisdiction of Appellate Tribunal

Case Brief

Summary, issues, holding and outcome

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Parties

M/S. Kundan Sugar Mills

Appellant

Ziyauddin and Others

Respondents

Procedural Posture

Civil Appeal / Appeal by Special Leave From the Decision of the Labour Appellate Tribunal of India at Lucknow in Appeal No. III 45 of 1956, Arising Out of Award Dated February 6, 1956 of the State Industrial Tribunal, Allahabad, in Reference No. 96 of 1955.

Legal Issues

  1. 1 Whether the right to transfer a workman from one independent concern to another started by the same employer at a stage subsequent to employment is implicit in the contract of service
  2. 2 Whether the Appellate Tribunal had jurisdiction to set aside the finding of the State Industrial Tribunal under s. 7(1) of the Industrial Disputes (Appellate Tribunal) Act, 1950

Ratio Decidendi

It was not a condition of service of employment of the concerned workmen, either express or implied, that the employer had the right to transfer them to a new concern started by the employer subsequent to the date of employment. Transferring workmen to another concern in such circumstances amounts to making a new contract and cannot be presumed in absence of an express term.

Court Disposition

Appeal dismissed

Orders

  • The appeal fails and is dismissed with costs.
  • The order of re-instatement of the workers in Kundan Sugar Mills at Amroha stands.