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IN THE HIGH COURT OF DELHI
V. Kameswar Rao, J.
Sanjeev Kapoor - Appellant
Versus
NTPC Ltd. - Respondent
W.P.(C) 14006 of 2019, CM Nos. 55947 of 2019, 135 of 2020 and 4762 of 2020
Decided On : 27-09-2021




Transfer orders within a company are administrative decisions that can be contested only on grounds of mala fides or clear policy violations, not merely for causing personal inconvenience.

Headnote:(A) NTPC Transfer Policy - Violation of principles of legality and procedural fairness - Petition challenging transfer from Jr. Chemist to Jr. Officer (EEMG) at RIO Chennai - Petitioner contended transfer was arbitrary, lacked genuine administrative necessity, and contravened existing policies and rights - Court upheld transfer as permissible under employment conditions despite raising concerns over mala fides. (Paras 2, 4, 9, 28, 49)

(B) Employment Law - Transfers within a company viewed as administrative rights - Courts reluctant to interfere unless proven arbitrary or mala fide - Management's discretion in employee transfers emphasized and upheld, provided no adverse consequence on seniority or pay. (Paras 24, 25, 26)

Facts of the case:
Petitioner was transferred from NTPC Faridabad to RIO Chennai; alleged transfer was unjust and retaliatory due to union activities, lacking support from transfer policy. Court examined employment conditions and decision-making processes surrounding transfers.

Findings of Court:
The transfer upheld as legitimate under employment contracts and company policies, despite challenges presented regarding justification and fairness.

Issues: Whether the transfer was justified and if it violated the NTPC transfer policies and employee rights.

Ratio Decidendi: Court found no legal basis to invalidate the transfer order since alleged malafides were not substantiated and the transfer adhered to lawful procedures.

Result: Petition dismissed.

Table of Content
1. transfer order challenge. (Para 1 , 2 , 3)
2. petitioner's historical employment details. (Para 4 , 5)
3. efficiency vs. existing from ntpc policies. (Para 6 , 7 , 8)
4. malafide action and procedural lapses in transfer. (Para 9 , 10 , 11 , 12)
5. whistleblower implications on transfer orders. (Para 13 , 14)
6. jurisdiction and alternative remedies in labor disputes. (Para 16 , 17)
7. transfer authority and management prerogatives. (Para 18 , 19 , 20)
8. employee transfer as an administrative necessity. (Para 21 , 22)
9. judicial integrity in administrative transfer matters. (Para 23 , 24)
10. discussion on the merits of transfer options. (Para 28 , 29)
11. evolving operational requirements of ntpc. (Para 30 , 31 , 32)
12. transfer as a position of equivalent responsibility. (Para 33 , 34)
13. legitimacy of inter-region transfers. (Para 36 , 37)
14. authority in transfer decision-making. (Para 38 , 39)
15. workplace organization and employee role. (Para 41 , 42)

JUDGMENT

V. Kameswar Rao, J. The present petition has been filed by the petitioner with the following prayers:

    "It is most respectfully prayed that in view of submissions made herein above this Hon'ble Court may kindly be pleased to:

    i. Issue an appropriate writ, order or direction to quash the transfer and release of Petitioner from NTPC-Faridabad to RIO Chennai (Tamilnadu) vide order No.319/2019 Date: 06.12.2019 (Annexure-PI).

    ii. Declare that Change of cadre of petitioner from Jr. Chemist (Chemistry Department) to Jr. Officer (EEMG) is illegal and malafide.

    iii. Cost of the present proceeding be awarded in favour of the petitioner and against the respondents; and

    iv. Pass such other and further orders/directions as this Hon'ble Court may deem fit and proper in the facts and circumstances of the present case."

2. The short issue that arises for consideration in the present petition is the transfer of the petitioner from the post of Jr. Chemist at NTPC, Faridabad, Haryana to the post of Jr. Officer, Energy Efficiency Monitor Group (`EEMG' for short) at the Regional Inspection Office (`RIO' for short), Chennai, Tamil Nadu vide order no. 319/2019 dated December 6, 2019 (`impugned order' hereinafter) is justified.

3. The case of the petitioner is that the said transfer is actuated with mala fides, is vindictive and in violation of the transfer policy of the respondents. As per the averments made in the petition, the case of the petitioner is that the transfer order which was received by the petitioner on December 11, 2019 bypassed the existing company procedures such as the Whistle Blower Policy; contrary to the recommendations of the Medical Board, change of cadre, i.e., from Jr. Chemist to Jr. Officer (EEMG) which according to the petitioner does not exist at the RIO of the respondent company at Chennai.

4. Before turning to the merits of the controversy I may first reproduce the factual background concerning the instant petition.

(a) The petitioner joined the respondent Company on July 15, 1991 as an Assistant (DM Plant) Chemistry Section at NTPC, Anta Gas Power Project, Rajasthan (`NTPC Anta', for short) through an open recruitment advertisement for vacancy at the Anta Gas Power Project.

(b) On promotion he was re-designated as Jr. Chemist at NTPC Anta. The petitioner continued on that post from July 15, 1991 to May 11, 2012 after which he was transferred to the Commercial Office of the respondent No.1 at Jaipur.

(c) The petitioner was then again transferred to the Power Project in Faridabad, Haryana w.e.f. December 31, 2014 and has since been working there. As per the averments in the petition, the petitioner was awarded for his long service of more than 25 years.

5. Mr. Om Prakash Gupta, learned counsel who appears for the petitioner, stated that the impugned order is not based on any administrative requirement but has been effected for extraneous reasons. He stated that the respondents' exercise of power in issuing transfer order is an example of malic

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