Holding

Section 94(7) empowers the State Government to transfer any officer or servant of a municipal council, including teachers, provided they draw emoluments exceeding one hundred rupees.

Summary

Six lecturers and teachers employed by the Municipal Council of Sagar were transferred by the State Government to schools under another municipal council under the power granted by section 94(7) of the Madhya Pradesh Municipalities Act, 1961. They challenged the transfers, arguing that the statute only permitted transfer of officers specifically listed (Revenue Officer, Accounts Officer, etc.). The High Court agreed and quashed the transfers. On appeal, the Supreme Court held that the phrase "any officer or servant of a council" in s.94(7) includes all officers and servants appointed under subsections (1) and (2) of s.94, thereby covering teachers, who are officers of the municipal council as education is a council department. The Court further noted that such transfer power should be exercised sparingly for low‑emolument employees. Consequently, the appeal was dismissed, upholding the High Court's decision.

Issues considered

Whether section 94(7) of the Madhya Pradesh Municipalities Act, 1961 authorises the State Government to transfer teachers employed by municipal schools.
Whether teachers appointed in municipal higher secondary schools are officers or servants of the municipal council.
Scope of the State Government's power to transfer officers or servants under the Act.

Legislation cited

Madhya Pradesh Municipalities Act, 1961s. 123, s. 124, s. 94(1), s. 94(2), s. 94(7), s. 97(1), s. 97(2)

Subjects

municipal counciltransfer of officersteachers as municipal employeesstatutory interpretationadministrative law

Judgment

•.

786

A STA TE OF MADHYA PRADESH
v.
SHANKER LAL & ORS.
January 16, 1980
B [N. L. UNTWALIA AND 0. CHJN,;APPA REDDY, JJ.]

}.,fadhya Pradesh .Municipalities Act, 1961, Section 94(7)-Scope of-State
Governrnent transferred teachers en1ployed by Municipal Coucils-Competency
of.
The respondents were employed as lecturers and teachers in the various
C Municipal Higher Secondary Schools run and managed by a Municipal Council
in the State. The State Government transferred certain lecturers and teachers
serving under a particular Municipal Council to the Schools run and managed
by another Municipal Council. The respondents writ petition challenging
the order of their transfers was allowed by the High Court on the ground
that no officer other than those mentioned in s. 94(7) namely Revenue Officer,.
Accounts Officer etc. could be transferred.
D
In the State's appeal the respondents contended that they were employees
of schools run and managed by Municipal Councils but not of the Councils.

HELD : I. The High Court was not right in putting a retricted interpre-
tation on s. 94(7) of the Act. The other officers and servants who can be
appointed by the Municipal Councils under sub-section (1) or sub-section (2)
of Section 97 ar'e also officers and servants mentioned in these sub-sections for
E the purposes of sub-section (7). Theoretically, therefore, the power does
exist in the State Government to transfer them. [788 B-C]
2. The argument that the respondents arc the employees of schools run
and managed by the Municipal Councils but not of the councils themselves
has no substance. Education department is one of the departments of a ./
r
~funicipal Council. Section 124 envisages the establishment and running of
F Higher Secondary Schools by Municipal Councils and therefore the lecturers
and teachers appointed in the various <>chools are officers and servants of the
Municipal Councils. [788 G-H, 789 A]
3. In case of employees getting small emoluments the power to transfer
should be sparingly exercised under some compelling exigencies of a particular
situation and not as a matter of routine. [788 C-D]
G
Clv1r. APPELLATE JuR1smcnoN : Civil Appeal Nos. 537-539 of
1970. ;_..-
Appeals by Special Leave from the Judgment and Order dated
20-8-1968 of the Madhya Pradesh High Court in Misc, Petition Nos.
282, 283 and 293 of J 968.
H
S K. Gambhir for the Appellant.
S. S. Khanduja for the Respondents.
M. P. STATE y. SHANKER LAL ( Ulltwalia, !. )

The Judgment of the Court was delivered by A
UNTWALIA, J.-These three appeals by special leave are from the
common judgment of the Madh\"l Pradesh High Court allowing the
Writ Petitions filed by the six respondents and quashing the orders
of their transfer made by the State Government in exercise of their
power under s. 94(7) of the Madhya Pradesh Municipalities Act, B

.,,.
1\161, hereinafter called the Act. The respondents were employees
of the Municipal Council, Sagar. They were employed as lecturers
and teachers in the various Municipal Higher Secondary Schools run
and managed by the said Municipal Council. Three orders were
t issued by the State Government on various dates in June, 1968 trans-
ferring certain lecturers and teachers serving under a particular Muni- c
cipal Council tci the schools run and managed by another Municipal
Council. The six respondents were transferred by the said orders to
various places. They challenged the order of transfer in the High
Court on the ground that the State Government had no power to
transfer them under s. 94(7) of the Act. The High Court has ~c
cepted their contention and hence these appeals. D

We shall quote the relevant provisions of s. 94 of the Act as they
stood at the relevant time from the judgment of the High Court. There
have been some amendments in the year 1973 with which we are not
concerned. They read as follows : -
E
"94. Appointment of staff : -
( 1) Every Council having an annual income of five
lakhs of rupees or more shall, subject to rules framed
under section 95, appoint a Revenue Officer and an
Accounts Officer and may appoint such other officers
F
and servants as may be necessary and proper for the
efficient discharge of its duties.
(2) Every Council not falling under sub-section (1)
shall, subject to rules framed under section 95,
appoint a Sanitary Inspector, an Overseer, a Revenue ·
Inspector, and an Accountant and may appoint such G
'
other officers and servants as may be necessary and
proper for the efficient dis"charge of its duties :
.......................................
(7) The State Government may transfer any officer or
servant of a council mentioned in sub-sections (1) & ff
(2) and in receipt of total emoluments exceeding
one hundred rupees to any other Council."
788 SUPRE~1E COURT l{El'ORTS [1980] 2 S.C.R. '

A The High Court has taken the view that the words "any officer or
servant of a Council mentioned in sub-sections (1) and (2)" oc-
curring in sub-s. (7) mean "any officer or servant as enumerated or
specified in s\ib-ss. (1) and (2); that is to say, the officers who can
be transferred under sub-s. (7) are only Revenue Officer, Accounts
Officer, Sanitary lnspector and an Overseer, a. Revenue Inspector or
B an Acconntant. No other officer or servant can be transferred. We
do not think that the High Court is right in putting this restricted
interpretation to sub-s. (7) of s. 94. Other officers and servants who
can be appointed by jhe Municipal Councils either under sub-s. (1)
or under sub-s. (2) are also the officers and servants mentioned in
these
c therefore,sub-sections for the purposes of sub-s. (7). Theoretically,
the power does exist in the State Government to transfer
them. We must, however. hasten to add that in case of employees
getting small emoluments the power seems to be meant to be sparing..
ly exercised under some compelling exigencies of a particular situa-
tion and not as a matter of routine. If it were to be liberally exer-
D cised, it will create tremendous problems and difficulties in the way
of Municipal employees getting small salaries. There may be hardly
:in employee serving under any Municipal Council who cannot be
theoretically and literally covered by sub-ss. (1) and (2) and sub-
jected to the exercise of power of transfer under sub-s. (7).

E The High Court in support of its view has referred to snb-s. (4)
of s. 94 wherein only the officers enumerated in sub-ss. (1) and (2)
are specified. Obviously the said sub-section does not cover the
cases of other officers and servants as mentioned in sub-ss. (I) and
(2). The language of sub-sec. (7) is in contrast to that of sub-s. (4)
and, instead of lending support to the view of the High Court, goes
against it.

It was argued for the respondents that they are employees of the
Schools run and managed by the Municipal Councils but not of the
Councils themselves. We do not think that this argument has got
G any snbstance. Education department is one of the departments ef
a Municipal Council. Duties of the Conncil are enumerated in sub-
s. (1) of s. 123, clause (v) which provides for "establishing and
maintaining primary schools". Under s. 124 "a Council may, at its
discretion, provide, either wholly or partly out of the Municipal pro-
perty and fund, for all or any of the following matters, namely ( c)
H furthering educational objects." Thus establishment and running of
Higher Secondary Schools by Municipal Councils are envisaged under
the Act and the lecturers and teachers appointed in the various schools
M. P. STATE v. SHANKERLAL (Untwalia, J.) 789

are undoubtedly the officers and servants of the Municipal Coun- A
'! ells.
For the reasons stated above we hold that the State Government
had the power to transfer the respondents. But it is not clear why
the power was exercised in the case of the respondents. In any
event, learned counsel for the appellant assured ns that the State is B
more anxious for the correct interpretation of the law engrafted in
section 94(7) of the Act than to enforce the order of transfer against
the respondents. In the result while clarifying the position of law,
we dismiss the appeals but make no order as to costs.

N.K.A. Appeals dismissed.

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