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1968 Supreme(Cal) 140
HIGH COURT OF CALCUTTA
A. K. Sinha
CHIRAJIT PAL - Appellant
Versus
WEST BENGAL KHADI AND VILLAGE INDUSTRIES BOARD - Respondent
C. R. 1177 (W) Of 1964
Decided On : JUNE 25, 1968
BANKIM CHANDRA DUTT, RAMENDRA NATH BANERJI
An employer has no inherent power to transfer his employee in the absence of a contract, express or implied.
Headnote:
WEST BENGAL KHADI AND VILLAGE INDUSTRIES BOARD ACT - SECTION 5 - TRANSFER OF EMPLOYEES - POWER OF BOARD - INHERENT POWER - IMPLIED CONTRACT - BONA FIDE EXERCISE OF POWER - COURT'S INTERVENTION.
Fact of the Case:
Petitioner, an employee of the West Bengal Khadi and Village Industries Board, challenged two successive orders of his transfer. He argued that the transfer orders were illegal as the post to which he was transferred was not created in accordance with the Board's regulations and that the Board had no inherent power to transfer its employees.
Finding of the Court:
The court held that the post to which the petitioner was transferred was not validly created by the Board and that the Board had no inherent power to transfer its employees. The court also found that the transfer orders were not bona fide and were issued with the intention of promoting another employee.
Issues: 1. Whether the Board had the power to transfer its employees. 2. Whether the transfer orders were issued in the interest of the business of the Board or to promote another employee. 3. Whether the court could intervene in the administrative decision of the Board.
Ratio Decidendi: 1. The Board's power to transfer its employees is not expressly provided in the West Bengal Khadi and Village Industries Board Act or its regulations. 2. The power of transfer is not incidental or indispensable for the effective execution of the power of appointment. 3. An employer has no inherent right to transfer his employee in the absence of a contract, express or implied. 4. The transfer orders were not issued in the interest of the business of the Board but to promote another employee. 5. The court can intervene in the administrative decision of the Board if it is shown that the decision was not taken honestly or that it was taken on grounds extraneous to the legislation.
Final Decision: The court quashed the impugned transfer orders and issued a writ of mandamus directing the Board to reinstate the petitioner to his original post.
( 1 ) THESE two rules are taken up together for hearing as they are issued at the instance of the petitioner against successive orders of his transfer while working under the West Bengal Khadi and Village Industries Board the respondent No. 1 (hereinafter referred to as the Board ).
( 2 ) THE case of the petitioner briefly is that the Board is a body corporate established under Section 3 of the West Bengal Khadi and Village Industries Board Act (West Bengal Act XIV of 1959, hereinafter referred to as the Act) having its Head-Office at Calcutta and certain Regional Offices at several places including Tamluk in the district of Midnapore and Coochbehar. The petitioner was appointed by an appointment letter dated 25th February, 1961, to the post of 'marketing Assistant' under the Board on terms and conditions mentioned in the letter and since then continued to serve in that post diligently. This post was created by a resolution of the Board passed at its meeting held on 10/15th October, 1960, as a post attached to the Trading and Publicity Section of the Head-Office at Calcutta. By the same resolution the respondent No. 1 also created several posts in Regional Offices, namely, (I) Circle Inspector, (II) Area Inspector, (III) Clerk typist, (IV) Orderly peons. These resolutions, it is stated, were passed under Section 5 of the West Bengal Khadi and Village Industries Board Regulations, 1961 (hereinafter referred to as the Regulation) by the respondent No. 1 in exercise of the powers conferred by Section 33 of the Act and by virtue of Section 9 of the aforesaid Regulations called "recruitment Regulations for the Officers and Staff of the West Bengal Khadi and Village Industries Board". The provisions as regards the nature of duties in the post of Marketing Assistant were also laid down which are as follows:i. To assist the Marketing Surveyor and the Officer-in-charge (Trading) in marketing of Khadi and Village Industries Products. II. Inspection of Bhandars and Reports. III. To obtain market quotations.
( 3 ) THE aforesaid recruitment regulations further laid down that the method of recruitment to the post of Marketing Surveyor a higher post drawing a bigger salary would be by promotion or selection from the post of Marketing Assistant. So the petitioner who held the only post of Marketing Assistant was in the direct line of promotion to the post of Marketing Surveyor.
( 4 ) WHILE working in the post of Marketing Assistant the petitioner was transferred by an order dated 3rd September, 1964, signed by its Executive Officer to Tamluk as an 'assistant to the Circle Inspector, Midnapore East, the respondent No. 2', In spite of several representations the petitioner was asked to carry on the duties with which he was entrusted. By such transfer, it is stated, the petitioner has been deprived of his house allowance and in fact has been demoted to a lower post and several employees have been promoted to higher posts although they are not entitled to supersede the petitioner. That is how the petitioner felt aggrieved and come up to this Court, and obtained the Rule. After the issue of the said Rule, the respondent No. 1 again transferred the petitioner to Coochbehar to assist the Circle Inspector in the district and study the position and possibilities of marketing In the area. Against this order, the petitioner again moved this Court in its Writ Jurisdiction and obtained another Rule.
( 5 ) UPON these facts, it was contended by Mr. Ramendra Nath Banerjee, learned Advocate for the petitioner that the order of transfer was entirely illegal as the petitioner was transferred to post not created in accordance with Clause 5 of Regulation. His argument was that the petitioner was appointed in the post of Marketing Assistant under letter of appointment dated 25th February, 1961, by the Executive Officer of the Board which is a post created by means of a resolution passed under Clause 5 of the Regulation. But by the order of tra
