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Sibu, who worked as the officer-apron in the ground handling department of Air India at Thiruvananthapuram and was also the then regional secretary of the Aviation Industry Employees Guild, was transferred to Hyderabad in 2015.
A sexual harassment case was also registered against him.
He approached the high court saying he was being "victimised" and framed after he brought to the notice of higher ups the transfer of the lucrative ground handling business, carried out by Air India and Air India Air Transport Services Ltd (AIATSL) at the Trivandrum airport, to private joint venture AISATS.
In the judgement order on Wednesday, Justice A. Muhamed Mustaque said that after perusing the entire records it was seen that the AISATS raised a complaint against the petitioner.
"As the facts disclosed, the petitioner has been transferred from Thiruvananthapuram as he has become irksome to others. Therefore, this matter, which requires inquiry through the disciplinary proceedings and what cannot be achieved directly, cannot be achieved indirectly by issuing order of transfer by way of penalty.
"In view of the above finding, I am of the view that without going to the other issues raised, the transfer order has to be set aside," added the judge.