2013 LAB. I. C. 2073 ::2013 (3) ABR 678 ::(2013) 138 FacLR 85 ::(2013) 2 Lab LN 76

Bombay High Court

Hon'ble Judge(s): A. M. Khanwilkar, A. P. Bhangale , JJ

( A ) Industrial Disputes Act (14 of 1947) S. 25 FF — Transfer of undertaking — Policy decision of Government of India of hiving-off the Engineering Department of Air India Ltd. to Air India Engineering Services Ltd. — Employees cannot challenge policy decision of their employer so long as their service conditions are not affected in any manner — Decision was taken of transferring all employees instead of VRS or Compulsory Retirement options — All transferred employees were provided with continuity of service and their working conditions and past service were protected — Prior consent of employees not obtained cannot be ground to invalidate said action. (Paras555658))

( B ) Industrial Disputes Act (14 of 1947) S. 25 FF — Transfer of undertaking — Compensation to workmen — S. 25FF comes into play only in case of transfer of ownership and management of undertaking to new employer and not limited to some activities of the undertaking — It must be transfer of undertaking de facto or de jure as the case may be.Section 25FF comes into play only in a case of transfer of ownership or management of an undertaking to a new employer and not limited to some activities of the undertaking. It must be transfer of the undertaking, de facto or de jure, as the case may be. In the present case, it is indisputable that the entire Engineering and GH department is hived-off from Air India. The management and business of concerned Departments would vest in the fully owned subsidiary created by respondent No. 1 for that purpose, i.e. respondent No. 2. It is not a case of transfer of only part of the activities in the given Department to respondent No. 2, as is contended. On the other hand, the record, including the stand of the respondent before Court, would indicate that the decision taken is to hive-off the entire Engineering and GH Department of respondent No. 1. Thus understood, it will be a case of transfer of ownership or management of an undertaking within the meaning of Section 25FF of the Act. (Paras52).....