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Legal Case Shots

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Labour & Industrial LawSupreme Court of India

Rajneesh Khajuria v. M/s. Wockhardt Ltd. & Anr.

Civil Appeal · 2020 INSC 43Decided 15 Jan 2020
Civil Appeal No. 8989 of 2019
Justice L. Nageswara Rao · Justice Hemant Gupta

Background

The appellant, a long-serving sales employee of the respondent pharmaceutical company based at Sagar, Madhya Pradesh for about 20 years, was transferred to Mumbai under a transfer clause in his appointment letter. He did not join at the new location and was subsequently terminated. He alleged before the Industrial Court that both the transfer and termination were retaliatory "unfair labour practices" linked to his having protested the company's treatment of a fellow union member at a conference. The Industrial Court ruled in his favour, but the Bombay High Court set that order aside, holding the transfer was a valid exercise of contractual rights and that he had not challenged the termination order.

Decision Breakdown

The Supreme Court dismissed the employee's appeal and upheld the High Court's ruling. It held that an allegation of a "mala fide" transfer cannot succeed unless the specific individuals accused of bad faith are made parties to the case so they can answer the charge: here, the officials allegedly motivated by malice were never impleaded, while the transfer order itself was issued by a different officer under a valid contractual power to transfer. The Court also held that since the termination was for defying the transfer, any dispute about its validity fell exclusively within the jurisdiction of the Labour Court (not the Industrial Court the employee had approached), so that forum lacked jurisdiction to examine it. Separately, the Court held that non-receipt of a termination letter does not make the termination invalid once it is shown the employer genuinely issued and dispatched it.

Lesson Learnt

If you believe an administrative action like a transfer was done in bad faith, you must name the specific people responsible as parties to your case: vague allegations of mala fide against unnamed officials, or against someone other than the actual decision-maker, will not succeed; and you must pursue employment grievances in the legally correct forum, since filing in the wrong forum can mean your real grievance is never even examined.

Rajneesh Khajuria v. M/s. Wockhardt Ltd. & Anr. – Legal Case Shots | LegalAware