Colombo Dockyard Ltd. v. De Silva and Others – sllr 1999 volume 3 page 219

In Colombo Dockyard Ltd. v. H. S. de Silva and others, the court addressed the legality of an employer’s transfer and suspension of an employee, the validity of an arbitrator’s award ordering reinstatement and back wages, and the employer’s authority to manage workforce alignment. It was held that the employer (Colombo Dockyard Ltd.) was legally justified in transferring H. S. de Silva as part of internal management prerogatives. The arbitrator’s finding of unjustifiable suspension was confirmed, but the award of reinstatement and back wages was set aside as exceeding discretionary authority and contravening established legal principles. The court reaffirmed that management has lawful discretion to transfer staff unless clear mala fides or violation of statutory or contractual provisions i