SC directs NTPC to take back its employees in privatised Balco

In a judgment that could have serious ramifications on privatisation of any PSU, the Supreme Court today asked state-owned National Thermal Power Corporation (NTPC) to take back its employees posted in Balco before its privatisation.

"All employees are to be retained in NTPC," a Bench comprising Justices Tarun Chatterjee and P Sathasivam ruled. It said the government or its instrumentality could not alter the service conditions of employees.

"It is clear that no employee could be transferred without his consent from one employer to another... Therefore, the transferred employees from NTPC "" a PSU "" to Balco, which is a private organisation, is bad in law," the Bench said.

The employees are neither party to the tripartite agreement nor they were heard before changing their service condition, which makes the action of the management (transfer) violative of Article 14 of the Constitution, it said.