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Supreme Court of India 2024-03-21 allowed

M/S. DIVGI METAL WARES LTD vs M/S. DIVGI METAL WARES EMPLOYEES

Bench: 2 — B.R. Gavai, Sandeep Mehta

In Brief

The Supreme Court addressed whether inter-factory transfers of 66 workmen were legally valid. The company transferred employees from its Sirsi Factory to Pune Factory, citing business needs. The High Court had ruled the transfers illegal, finding that Standing Orders did not permit such transfers. The Supreme Court reversed this, holding that the contract of employment expressly permitted transfers to any company facility, and such contractual rights did not conflict with Standing Orders which governed transfers only within a unit. Applying the Cipla Ltd. principle, the Court allowed the transfers as lawful.

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Industrial Law Trade Unions Employment Standing Orders Transfer of Employees Labour Law Statutory Compliance

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