Transfer of NTPC's employees to BALCO is illegal: SC

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New Delhi, Oct 15 (UNI) The Supreme Court has held that the transfer of NTPC (National Thermal Power Corporation) employees, to BALCO Captive Power Plant (BCPP), which had become a private company after disinvestment by Government of India, is illegal.

A bench comprising Justices Tarun Chatterjee and P Sathasivam in their judgment have held that," There is no quarrel as to the proposition laid down in BALCO's ITDC case. However, considering our discussion relating to various aspects, starting from calling for applications and subsequent actions taken by NTPC, we are satisfied that the employees have made out a case about continuing there services in NTPC." The court in its judgment dated October 11 said," Even though the non-executive employees (technicians) are also having special knowledge but in the absence of any possible reason, retaining executive only for NTPC and tranferring non-executive employees to a private organisation cannot be sustained and is hit by Article 14 of the Constitution of India.

It is clear that no employee could be transferred without his consent from one employer to another. Therefore, in view of the aforesaid rulings the transfer of emplyoees from NTPC- a public sector undertaking to BALCO, which is a private organistaion is illegal." BCPP mazdoor sangh and other had come in appeal against the judgment of Chhattisgarh High Court at Bilaspur dated March 25, 2004.

The appellants were recruited by NTPC through proper channel.

BALCO which was originally a PSU (Public Sector Undertaking), was later transferred to M/s Sterlite after disinvestment under the Government Policy of Disinvestment. The employees filed a writ petition in the High Court challenging the unilateral decision of NTPC to transfer their services to a private company without their consent.

They also prayed for declaring Clause 8.2 and 16.3 of the agreement dated May 22, 1990 as illegal, arbitrary and unenforceable against non-executive workers because executives have not been touched and it is discriminatory.


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