Private companies need not redeploy disabled staff

Distinguishing between a company “established under” a statute and a company “governed by” the provisions of a statute, the Supreme Court in Dalco Engineering Private Ltd v Satish Prabhakar Padhye & Ors recently ruled that private companies (unlike their government counterparts) are not bound to provide reservation to physically disabled candidates.

Padhye was employed by Dalco for more than two decades. In 2000, his employment as a telephone operator was terminated on the grounds that he had become deaf (85% reduction in ability to hear). Holding that the company was an “establishment” as envisaged under section 2(k) of the PD Act, Bombay High Court granted Padhye full wages and other service benefits. Dalco then challenged this before the Supreme Court.

A bench comprising Justices RV Raveendran, RM Lodha and CK Prasad allowed Dalco’s petition but dismissed the writ petition served by Padhye and others filed in Bombay High Court under the provisions of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (PD Act). As an “establishment” and a private employer, Dalco was under no liability to maintain an employee who acquired a disability during the course of their employment.

The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.