High Court Intervenes in Chandigarh Power Distribution Employee Transfer Dispute
The Punjab and Haryana High Court has issued a significant stay order, halting the operation of an interim directive from the Central Administrative Tribunal (CAT) concerning the transfer of employees within Chandigarh's power distribution framework. This legal development addresses a contentious issue involving the electricity wing of the engineering department, Chandigarh (EWEDC) and Chandigarh Power Distribution Limited (CPDL).
Background of the Legal Challenge
The high court's decision came in response to a petition filed by the Union Territory (UT) of Chandigarh, which challenged the CAT's interim order dated January 29, 2026. The Tribunal had previously directed status quo regarding the transfer of employees from EWEDC to CPDL, effectively maintaining that these individuals continued to be employees of EWEDC despite ongoing changes in the power distribution structure.
Senior standing counsel for UT Chandigarh, Amit Jhanji, presented arguments against the interim relief granted by the Tribunal. He emphasized that the matter of privatizing the power distribution utility and the subsequent transfer of employees had already been thoroughly adjudicated in two prior rounds of litigation before both the high court and the Tribunal.
Historical Legal Precedents
Key judicial decisions were highlighted during the proceedings:
- The high court, in an order dated November 6, 2024, upheld the privatization scheme for Chandigarh's power distribution. This ruling was later affirmed by the Supreme Court, providing a solid legal foundation for the transfer process.
- On January 17, 2025, the Tribunal dismissed the employees' plea regarding their transfer, further supporting the UT's position.
Following the notification of the transfer scheme on January 31, 2025, the UT contended that the employees were formally and finally transferred to CPDL. This marked a critical point in the administrative transition, which the recent CAT order sought to disrupt.
Arguments from Legal Representatives
Senior advocates Chetan Mittal and D S Patwalia, representing CPDL, argued that the transfer process had been completed in accordance with the notified scheme. They asserted that the interim relief granted by the Tribunal exceeded the scope of the pleadings and created an anomalous situation.
The counsel pointed out several practical issues arising from the Tribunal's order:
- Salaries and service benefits were being paid by CPDL, yet the employees were deemed to be under EWEDC due to the status quo directive.
- Employees were actively discharging their duties under CPDL's supervision, leading to potential administrative mismanagement.
- This duality risked operational disruptions in power distribution services, affecting Chandigarh's residents and businesses.
They emphasized that such inconsistencies could undermine the efficiency and stability of the power distribution system, which had been restructured following extensive legal validation.
High Court's Ruling and Implications
After carefully considering the arguments from all parties, the Punjab and Haryana High Court decided to stay the operation of the CAT's interim order. This ruling effectively pauses the status quo directive, allowing the transfer process to proceed as originally planned under the privatization scheme.
The decision reinforces the earlier judicial approvals of the privatization and employee transfer, aiming to prevent further legal and administrative complications. It underscores the court's role in resolving disputes that impact public utility services and employee rights in Chandigarh.
This case highlights the ongoing challenges in restructuring public sector utilities and the importance of clear legal frameworks to ensure smooth transitions. The high court's intervention is expected to bring clarity and stability to Chandigarh's power distribution operations, benefiting both the employees and the consumers reliant on consistent electricity services.
