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        Companies Law

        1970 (12) TMI 92 - SC - Companies Law

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        Railway lien transfer and seniority follow permanent posting rules; challenge fails where vacancies and statutory compliance are shown. Railway Fundamental Rules treat cadre and lien as continuing unless suspended or lawfully transferred, and permit transfer of lien to another permanent ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Railway lien transfer and seniority follow permanent posting rules; challenge fails where vacancies and statutory compliance are shown.

                              Railway Fundamental Rules treat cadre and lien as continuing unless suspended or lawfully transferred, and permit transfer of lien to another permanent post in the same cadre. They also allow transfer of a railway servant to another post subject to the restriction that the new post must not carry less pay than the substantive post. On the stated facts, employees were permanently absorbed and transferred against available vacancies, and their seniority followed the lien attached to the permanent posts to which they moved. The challenge failed because no contravention of the statutory rules or absence of vacancies was shown, and the transfer of lien and seniority was treated as valid.




                              Issues: Whether the transfer of lien and consequential fixation of seniority of railway employees from one department to another was valid under the Railway Fundamental Rules.

                              Analysis: Rule 2003 defines cadre and lien, and Rule 2007 recognises the continuing lien of a permanent railway servant unless it is suspended or transferred. Rule 2010 permits transfer of lien to another permanent post in the same cadre, while Rule 2011 empowers the competent authority to transfer a railway servant from one post to another, subject only to the restriction against transfer to a post carrying less pay than the post held substantively. The respondents had been permanently absorbed and later transferred to the Stores Department against available vacancies, and their seniority followed the lien attached to the permanent posts to which they were transferred. The appellant failed to show that the memorandum contravened any statutory rule or that the transfers were made without vacancies.

                              Conclusion: The transfer of lien and seniority was held valid, and the challenge to the memorandum failed.


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                              ActsIncome Tax
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