Created byFuzzy Cloud

Supreme Court of India

UNION OF INDIA AND ORS.versusSRI JANARDHAN DEBANATH AND ANR.

Citation
2004 INSC 105
Decided
13 February 2004
Disposal
Appeal(s) allowed

Holding

A transfer of a government servant on account of inefficiency or misbehaviour is valid under Rule 37 and Fundamental Rule 15 and does not require a prior enquiry, and is not per se punitive unless it adversely impacts service conditions.

Summary

Four employees of the Postal Services Department were transferred from the Agartala Division to the Meghalaya Division on the ground of alleged misbehaviour with a senior lady officer. They challenged the transfer before the Central Administrative Tribunal, which did not interfere, and subsequently filed writ petitions in the Gauhati High Court. The High Court quashed the transfer, holding it violative of Rule 37 of the Posts and Telegraphs Manual and Fundamental Rule 15, and characterising it as a punitive measure affecting seniority and promotion. On appeal, the Supreme Court held that transfer of a government servant on account of inefficiency or misbehaviour is permissible under Rule 37 and FR 15, does not require a prior enquiry, and is not per se punitive unless it adversely affects service conditions. The Court emphasized that transfer is a condition of service and courts should not interfere unless the order is malafide or contrary to statutory provisions. Consequently, the High Court’s order was set aside and the transfer upheld.

Issues considered

  • Whether a transfer of a government employee on the ground of alleged misbehaviour is permissible under Rule 37 of the Posts and Telegraphs Manual and Fundamental Rule 15.
  • Whether such a transfer is a punitive measure affecting seniority and promotional prospects.
  • Whether an enquiry is required before effecting a transfer on the basis of misbehaviour.
  • Whether courts can interfere with a transfer order absent malafide intent or statutory violation.

Legislation cited

Subjects

service lawtransfer of government employeesdisciplinary actionFundamental RulesPosts and Telegraphs Manualadministrative lawpunitive transfersenioritypromotionenquirypublic interest

Judgment

A                         UNION OF INDIA AND ORS.                                              ~



                                     v.
                    SRI JANARDHAN DEBANATH AND ANR.

                                FEBRUARY 13, 2004

B              [DORAISWAMY RAJU AND ARIJIT PASAYAT, JJ.]
                                                                                         --
                                                                                         ~
          Service Law:
                                                                                           .;,;.,
        Posts and Telegraphs Manual; Rule 37/Fundamental Rules; Rules 14B,
c   15and22:

           Transfer of employees on ground of misbehaviour-Transfer order
    affirmed by the Central 1dministrative Tribunal-Challenge !o---Allowing the
    challenge, High Court held the transfer impermissible, violative of Fundamental
    Rule I 5, amounts to penalty affecting seniority and promotional prospects-
D   On appeal, held: No employee of Government/Public Sector Undertaking
    appointed on a transfi?rable post has any legal right to be posted at one place/
    place of his choice-Transfer is not only an incident but a condition ofservice,            r
    which is necessary .in public interest and efficiency in public administration
    unless it is shown to be an outcome of malafide exercise or in violation of
E   statutory provisions~To meet administrative exigencieSlquality ofpublic service
    to enforce decency and decorum in public service, the authority/Department
    concerned could exercise its discretion-However, transfer if ordered otherwise
    than for misbehaviour/inefficiency/on written request, the protection of pay is        \
    ensured.

F          Transfer Order-Interference with-Held: Courts/Tribunals could
    interfere if it casts astigmalconstituie punishment and affect service conditions/
    prospects-The Cpurt should not use the sameyardsticklnorms/standards to
    all categories of cases.

          Misbehaviour--Enquiry-Necessity of-Held: Not necessary, prima facie
G satisfaction of the authority is sufficient.

          Respondent··employees of the Postal Services Department were
    transferred from Agartala division to Meghalaya division on the ground               (4
    of alleged misbehaviour with a Director, a lady officer. Aggrieved,                  \\,
H                                          356
                   U.0.1. v. JANARDHAN DEBANATH                         357
employees approached Central Administrative Tribunal. The Tribunal did A
not interfere with the transfer order. Employees challenged the decision
before the High Court. High Court held that the transfer was
impermissible in terms of Rule 37 and was in violation of Fundamental
Rule 15. Hence the present appeals by the Union of India.

      It was contended for the appellant-Union of India that there was no       B
violation of Rule 37 of Posts and Telegraphs Manual Rules or Fundamental
Rule 15; and that the transfer was not a punitive one but for enforcing
discipline, in public interest, in the exigencies of the administration.

      On behalf of the respondent-!!mployees, it was submitted that before
effecting transfer, the alleged misbehaviour of the respondents ought. to       C
have been enquired into; that in view of stipulation in the appointment
order, there was no scope for transferring the employees from one region
to another.

     Allowing the appeals, the Court
                                                                                D
      HELD. 1.1. Rule 37 of Posts and Telegraphs Manual Rules shows
that officials of the Department are liable to be transferred to any part of
India unless it is expressly ordered otherwise for any particular class or
classes of officials. Transfers were not to be ordered except when advisable
in the interests of public service. Transfers can be made subject to            E
conditions laid down in FR 15 and 22. (361-E]

       1.2. No Government servant or employee of a public undertaking
has any legal right to be posted forever at any particular place or place
of his choice since transfer of a particular employee appointed to the class
or category of transferable posts from one place to another is not only an      F
incident, but a condition of service, necessary too in public interest and
efficiency in the public administration. Unless an order of transfer is shown
to be an outcome of malafide exercise or stated to be in violation of
statutory provisions prohibiting any such transfer, the courts or the
tribunals normally cannot interfere with such orders as a matter of             G
routine, as though they were the appellate authorities substituting their
own decision for that of the employer/management, as against such orders
passed in the interest of administrative exigencies of the service concerned.
                                                            [361-F-H; 362-A]

      National Hydro-electric Power Corporation Ltd v. Shri Bhagwan and         H
    358                    SUPREME COURT REPORTS                   (2004] 2 S.C.R.

A   Anr., (20011 8 sec 574, relied on.

          1.3. In a case where transfer is on account of inefficiency or mis-
    behavio.ur, the same can be made to a post carrying less pay than the pay
    of the post on which he holds a lien. Similar is the position where a transfer
    is made on a written request. Where the transfer is otherwise than for
B   inefficiency or mis-behaviour or on a written request made by the
    transferred employee, the protection of pay is ensured. The High Court
    seems to have completely mis-construed the rule as if there cannot be any
    transfer in terms of FR 15 on account of inefficiency or mis-behaviour.
    The view is clearly contrary to the pronounced intention of FR 15.
C                                                                       (362-F-GJ

          1.4. The manner, nature and extent of exercise to be undertaken by
    Courts/Tribunals in a case to adjudge whether the order of transfer casts
    a stigma or constitutes one by way of punishment would also very much
    depend upon the consequences flowing from the transfer order and as to
D   whether it adversely affected any servi"ce conditions - status, service
    prospects financially and same yardstick, norms or standards cannot be
    appHed to all category ·of cases, transfers unless they involve any such
    adverse impact or visits the persons concerned with any penal
    consequences, are not required to be subjected to same type of scrutiny,
    approach and assessment as in the case of dismissal, discharge, reversion
E   or termination and utmost latitude should be left with the department
    concerned to enforce discipline, decency and decorum i·n public service
    which are indisputably ess~ntial to maint~in quality of public service and
    meet untoward administrative exigencies to ensure smooth functioning of
    the administration. (363-B-D]
F
          Jagdish Mitter v. The Union of India, AIR (1964) SC 449, distinguished.

           1.5. The question of holding an enquiry' to find· out whether there
    was mis-behaviour or conduct unbecoming of an employee is unnecessary
    and prima facie satisfaction of the authority concerned on the
G   contemporary reports about the occurrence complained of is required and
    if the requirement of holding an "elaborate enquiry is to be insisted upon
    the very purpose of transferring an employee in public interest or               \
    exigencies of administration to enforce decorum and ensure probity would
    get frustrated. The question whether respondents could be transferred to
    a different division is a matter for the employer to consider depending
H   upon the administrative necessities and the extent of solution for the
              U.0.1. v. JANARDHAN DEBANATH [PASA YAT. J.]                  359

JJroblems faced by the administration. It is not for this Court to direct          A
one way or the other. The judgment of the High court is clearly
indefensible and is set aside. (363-F-H; 364-A)

     CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1010- I 0 I I
of 2004.
                                                                                   B
     From the Judgment and Order dated 22. I .2003 of the Gauhati High
Court at Assam in W.P.(C) (CAT) Nos. 3 and 4 of 2002.

     Raju Ramachandran, Additional Solicitor General, Ashok K Srivastava,
Shreekant N. Terdol for the Appellant.
                                                                                   c
      Rajinder Sachar, R. Sathish for the Respondent.

     · The Judgment of the Court was delivered by

      ARIJIT PASA YAT, J. Leave granted.
                                                                                   D
     In these two appeals, the Union of India questions legality of the
judgment rendered by a Division Bench of the Guwahati High Court, Agartala
Bench, Agartala whereby two writ petitions filed by the respondents were
allowed and the common order of transfer dated 10.9.2002 in respect of four
employees was quashed so far as it relates to the respondents.
                                                                                   E
      Background facts sans unnecessary details are as follows:

      The respondents were working in the Postal Services Department. They
were transferred from Agartala Division to Meghalaya Division by order of
transfer dated 10.9.2002. Feeling aggrieved by the order, the respondents
(writ petitioners) along with two others mcved the Central Administrative          F
Tribunal at Guwahati (in short the 'Tribunal'). The Tribunal after hearing the
parties directed the authorities to consider the representations made by the
two lady applicants who were co-applicants along with the respondents within
one month. So far as the present respondents are concerned, no interference
was made by the Tribunal with the order. Challenging the decision of the           G
Tribunal, the writ petitions were filed. The grounds on which the writ petitiuns
were filed were (a) the transfer orders of the two respondents were in violation
of the provisions of Rule 37 of the Posts and Telegraphs Manual, Volume IV
(in short 'the Manual') read with D.G. Posts Letter No.20-12/90-SPBI dated
23.8.1990; (b) the transfer is in violation of Rule 15 of the Fundamental
Rules (in short 'FR 15') and (c) the inter-Divisional transfer would effect the    H
    360                    SUPREME COURT REPORTS                    (2004] 2 S.C.R.

A seniority and promotional prospects of the writ petitioners and (d) the transfer
    order was passed as a measure of penalty.
                                                                                       -
                                                                                       .,

           The Union of India took the stand that the transfer was done in public
    interest and on ~ccount of exigencies of administration. It was pointed out
                                                                                       •v
    that the respondents not only misbehaved with the Director (Postal Services),
B   a senior lady officer, she was confined and dragged from one room to another
    and this was done with a view. to force her to withdraw the charge-sheet
    against the Deputy Post Master. She was abused in filthy language and was
    physically m.tmhandled. This conduct was certainly unbecoming of an
    employee al}d with a view to enforce discipline and to avoid recurrence of
c   such unforpunate incident, they were transferred. There was no violation of
    either Rule 37 of the Manual or FR 15. The High Court accepted the prayers
    made in the writ petitions and held that transfer was impermissible in term's .
    of Rule 37 and was in violation of FR 15. It was as a mea~ure of penalty and
    the seniority and the promotional prospects were likely to be affected.

D          In support of the appellants Mr. Raju Ramachandran, learned senior
    counsel submitted that the approach of the High Court is clearly erroneous.
    It erroneously held that there was violation of Rule 37 or FR !5. The              ,y

    interpretation put on the ambit of FR 15 is clearly wrong, as the proviso has
    not been taken note of. As the transfer was not a punitive one but ,as a
    measure of enforcing discipline, in public interest and in the exigencies of
E   administration there was no scope for the High Court to entertain the writ
    petitions and grant relief.

           Per contra, Mr. Rajinder Sachar, learned senior counsel submitted that
                                     I
    in the transfer order itself it has been mentioned that the employees were
    undesirable, as they had misbehaved. Before effecting transfer there ought to
F
    have been an enquiry to find out whether there was any misbehaviour
    committed by the respondents, or that they were undesirable as stated.
    According to him, the High Court has correctly interpreted FR 15. With
    reference to a letter dated 23 .8.1990, it was submitted that there was no scope
    for transferring from any part of the country to another part as was stipulated
G   in the appointment order. It was submitted that in terms of the letter, the
    scope of transfer to any part of the country was obliterated. There can be no
    grievance if the transfer was affected within the same circle, but making the      }

    transfer from one circle to another was impermissible.

         As Rule 37 and FR 15 form the foundation of the claim of the
H   respondents, it would be appropriate to quote.them. Rule 37 read as follows:
                     U.0.1. v. JANARDHAN DEBANATH [PASAYAT, J.]                     361

                   "All officials .of the Department are liable to be transferred to any    A
              part of India unless it is expressly ordered otherwise for any particular
              class or classes of officials. Transfers should not, however, be ordered
              except when advisable in the interests of the public service. Postmen,
              village postmen and Class IV servants should not, except for very
              special reasons, be transferred from one district to another. All transfers   B
              must be subject to the conditions laid down in Fundamental Rules 15
              and 22."

             FR 15 reads as follows:
....              "(a) The President may transfer a Government servant from one
              post to another provided that except-                             C
                 (I) on account of inefficiency or misbehaviour, or

                 (2) on his written request,

              a Government servant shall not be transferred to, or except in a case         D
              covered by Rule 49, appointed to officiate in a post carrying less pay
              than the pay of the post on which he holds a lien."

             A bare reading of Rule 37 shows that officials of the Department are
       liable to be transferred to any part of India unless it is expressly ordered
       otherwise for any particular class or classes of officials. Transfers were not E
       to be ordered except when advisable in the interest of public service. The
       transfers can be made subject to conditions laid down in FR 15 and 22. The
       appellant has indicated as to why and under what circumstances the transfers
       were thought proper in the interest of public service. The High Court while
       exercising jurisdiction under Articles 226 and 227 of the Constirution of F
       India, 1950 (in short the 'Constitution') had gone into the question as to
       whether the transfer was in the interest of public service. That would essentially
       require factual adjudication and invariably depend upon peculiar facts and
       circumstances of the case concerned. No government servant or employee of
       a public undertaking has any legal right to be pQsted forever at any ·one
       particular place or place of his choice since transfer of a particular employee C
       appointed to the class or category of transferable posts from one place to
       other is not only an incident, but a condition of service, necessary too in
       public interest and efficiency in the public administration. Unless an order of
       transfer is shown to be an outcome of ma/a fide exercise or stated to be in
       violation of statutory provisions prohibiting any such transfer, the courts or l-
    362                     SUPREME COURT REPORTS                     [2004] 2 S.C.R.

A the tribunals normally cannot interfere with such orders as a matter of routine,
    as though they were the appellate authorities substituting their own decision
    for that of the employer/management, as against such orders passed in the
    interest of administrative exigencies of the service concerned. This position
    was highlighted by this Court in National Hydro-electric Power Corporation
B   Ltd v. Shri Bhagwan and Anr., [2001] 8 SCC 574.

          The Fundamental Rules primarily deal with the financial implications
    and consequences relating to services of government servants whose pay is
    debited to Civil Estimates and to any other class of Governments servants too
    which the President may, by general or special order, declare them to be
C   applicable. Rule 15 has to be read along with Rule 14-B. FR 15 has been
    quoted above and, therefore, quotation of FR 14-8 would suffice. The same
    reads as follows:

               "FR 14-B: Subject to the provisions of Rule 15, the President
            may transfer to another post in the same cadre, the lien of a
D           Government servant who is not performing the duties of the post to
            which the lien relates".

          A bare reading of FR-15 makes it clear that except in cases where the
    transfer is (a) on account of inefficiency or mis-behaviour or (b) on a written
    request the government servant cannot be transferred or except in a case
E   covered by Rule 49 appointed to officiate in a post carrying less pay than the
    pay of the post on which he holds a lien. The clear intention of the prescription
    is that except the two categories indicated above, in all other cases the pay
    to be paid on transfer shall not be less than of the post on which he holds a
    lien. Exception is made in case of a transfer where it is on account of
    inefficiency or mis-behaviour. In a case where transfer is on account of
F   inefficiency or mis-behaviour, the same can be made to a post carrying less
    pay than the pay of the post on which he holds a lien. Similar is the position
    where a transfer is made on a written request. Where the transfer is otherwise
    than for inefficiency or mis-behaviour or on a written request made by the
    transferred employee, the protection of pay is ensured. The High Court seems
G   to have completely mis-construed the rule as if there cannot be any transfer
    in terms of FR 15 on account of inefficiency or mis-behaviour. The view is
    clearly contrary to the pronounced intention of FR 15.

          That brings us to the other question as to whether the use of the
    expression 'undesirable' warranted an enquiry before the transfer. Strong
H   reliance was placed by learned counsel for the respondents on a decision of
-                  U.0.1. v. JANARDHAN DEBANATH [PASA YAT, J.]

     this Court in Jagdish Mitter v. The Union of India, AIR (1964) SC 449, para
     21, p.456) to contend that whenever there is a use of the word 'undesirable'
                                                                                  363

                                                                                          A

     it casts a stigma and it cannot be done without holding a regular enquiry. The
     submission is clearly without substance. The said case relates to use of the
     expression 'undesirable' in an order affecting the continuance in service by
     way of discharge. The decision has therefore no application to the facts of the      B
     present case. The manner, nature and extent of exercise to be undertaken by
     Courts/Tribunals in a case to adjudge whether it casts a stigma or constitutes
     one by way of punishment would also very much depend upori the
     consequences flowiug from the Nder and as to whether it adversely affected
     any service conditions - status, service prospects financially and same yardstick,
     norms or standards cannot be applied to all category of cases. Transfers             C
     unless they involve any such adverse impact or visits the persons concerned
     with any penal consequences, are not required to be subjected to same type
     of scrutiny, approach and assessment as in the case of dismissal, discharge,
     reversion or termination and utmost latitude should be left with the department
     concerned to enforce discipline, decency and decorum in public service which
     are indisputably essential to maintain quality of public service and meet            D
     untoward administrative exigencies to ensure smooth functioning of the
     administration.

           Additionally, it was pointed out by learned counsel for the Union of
     India that as indicated in the special leave petition itself there was no question   E
     of any loss of seniority or promotional prospects. These are the aspects which
     can be gone into in an appropriate proceeding, if at all there is any adverse
     order in the matter of seniority or promotion. It was also submitted that
     transfer was within the same circle i.e. the North Eastern Circle and, therefore,
     the question of any seniority getting affected by the transfer prima facie does
     not arise.                                                                           F
            The allegations made against the respondents are of serious nature, and
      the conduct attributed is certainly unbecoming. Whether there was any mis-
      behaviour is a question which can be gone into in a departmental proceeding.
      For the purposes of effecting a transfer, the question of holding an enquiry
     .to find out whether there was mis-behaviour or conduct unbecoming of an             G
      employee is unnecessary and what is needed is the prima facie satisfaction
      of the authority concerned on the contemporary reports about the occurrence
      complained of and if the requirement, as submitted by learned-counsel for the
      respondents, of holding an elaborate enquiry is to be insisted upon the very
      purpose of transferring an employee in public interest or exigencies of             H
-~
    364                   SUPREME COURT REPORTS                   [2004) 2 S.C.R.

A   administration to enforce decorum and ensure probity would get frustrated.
    The question whether respondents could be transferred to a different division
    is a matter for the employer to consider depending upon the administrative
    necessities and the extent of solution for the problems faced by the
    administration. It is not for this Court to direct one way or the other. The
    judgment of the High Court is clearly indefensible and is set aside. The writ
B   petitions filed before the High Court deserve to be dismissed which we direct.
    The appeals are allowed with no order as to costs.

    S.K.S.                                                     Appeals allowed.


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "service law"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.