Legal Question in Employment Law in India

Brief Facts of the Case:

i) M/s Company X is a Public Sector Unit with Nine Production Units. In addition, Company X has established two Laboratories Y for R&D purpose. The executives of Y constitutes a Separate Cadre and are governed by separate Service Rules. In Short, the Service Rules for executives of X and executives of Y are substantially different. In fact, the service benefits of executives of Y are much superior to the service benefits of executives of X.

ii) In October 2010, I was appointed as Member (Research Staff) and was posted to Y. Subsequently, in January 2014, I was transferred from the post of Member (Research Staff), Pay Scale 16,400 � 50,500, in Y to the post of Deputy Engineer, Pay Scale 16,400 � 40,500, in Production Unit of X. In this way my Cadre and Service Rules was changed by means of Transfer. I was transferred and relieved within a day without any exigency. Since I was relieved within a day, in the interest of discipline I had complied with the transfer order and joined duty as a Deputy Engineer.

iii) Having my service condition altered substantially, I challenged the validity of Transfer Order through a Writ Petition before the Hon�ble High Court in May 2014. In October 2014, Hon�ble Court had issued Rule/admitted WP.

iv) Subsequently, I moved Interlocutory Application for Interim Order of Stay of the transfer order. In that IA, I had prayed for grant of interim order of stay of the transfer order and permission to rejoin duty as a Member (Research Staff) in Y. This was what the final relief sought.

v) In December 2014, Hon�ble Court was pleased to allow the IA and had granted the interim order of Stay of the transfer order with observation that �the transfer order is illegal, ex-facie and thus calls for interference�. That means, the Hon�ble Court had granted the interim relief which tantamount to the final relief.

vi) Subsequently, I sent four representations to the CMD and requested to comply with the Interim Order. The Company has not responded for any of my representations.

vii) Having no other option, I filed Contempt Petition (Civil) in March 2015. Hon�ble Court has ordered notice.

viii) After filing the Contempt Petition, I came to know that on in January 2015, the company filed the Writ Appeal and has also moved IA for Stay of Interim Oder. But Company has never requested for hearing of IA and so the Appeal has not been posted for hearing even once. That means, company has not taken Stay of Interim Order.

Queries:

1) As mentioned above, I was transferred and relieved within a day, so I had complied with the transfer order in the interest of discipline. Having complied with the transfer order and then filed WP and got interim order of Stay of transfer order, what is the legal validity and effect of Interim Order of Stay of transfer order?

2) In my IA for Stay, I had only prayer that Interim Order of Stay of transfer order to be granted and I shall be permitted to join duty as Member (Research Staff) in Y. The Hon�ble Court has fully allowed the IA and ordered the Interim Order of Stay of Transfer Order but has not specifically mentioned that I shall be permitted to join duty as Member (Research Staff) in Y. Since the IA has been fully allowed, does the Interim Order mean that I shall be permitted to join duty as Member (Research Staff) in Y?

3) Since the company has filed Appeal but has not taken Stay of the Interim Order, what is the legal validity and effect of the Contempt Petition?

4) The Company has filed the Appeal but has not requested for hearing even once. The company has not communicated the same to me even after submitting four requests to comply with the Interim order. That means the company has been simply waiting for the contempt petition to be moved. In this background, what is the propriety or legal validity of the Appeal?

Kindly reply to all of the queries pointwise. I also request you to kindly provide the reference of Supreme Court decisions or any other established law in support of your answer. I will be thankful to you.

1 Answer from Attorneys

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