HIGH COURT OF MEGHALAYA AT SHILLONG
H.S. Thangkhiew, J.
Poresh Kumar Nath - Appellant
Versus
North Eastern Electric Power Corporation Limited (Government of India Enterprise) & Ors. - Respondents
WP(C). No. 412 of 2021
Decided On : 12-05-2022
Transfer Order - Employment Contract - North Eastern Electric Power Corporation Limited (NEEPCO) Conduct, Discipline and Appeal Rules, 1980 - Rule 8(iii), Rule 6.2, Rule 9 - The court found that the transfer order was vitiated by malafides, arbitrary, and unsustainable, and therefore set aside and quashed the impugned transfer order dated 26.11.2021 passed by the Respondent No.4.
Fact of the Case:
The petitioner, a Supervisor (Design) at NEEPCO, challenged a transfer order alleging it was made in a colourable and malafide exercise of power due to his involvement in trade union activities and a pending writ petition challenging the vires of Rule 8(iii) of NEEPCO Conduct, Discipline and Appeal Rules, 1980. The petitioner alleged that the transfer was a form of punishment for his union activities.
Finding of the Court:
The court found the transfer order to be arbitrary, vitiated by malafides, and unsustainable, and therefore set it aside and quashed the order.
Issues: The issues included whether the transfer order was made in violation of the Transfer Policy of NEEPCO, whether NEEPCO falls within the meaning of 'State' under Article 12 of the Constitution, and whether the employment of the petitioner constitutes a contract of personal service.
Ratio Decidendi: The court held that NEEPCO is an authority within the meaning of Article 12 of the Constitution, and the employment of the petitioner, though contended to be a contract of personal service, can be a subject for judicial review. The court also found that the transfer order was arbitrary, vitiated by malafides, and unsustainable.
Final Decision: The court set aside and quashed the impugned transfer order dated 26.11.2021 passed by the Respondent No.4, allowing the writ petition and leaving the parties to bear their own costs.
JUDGMENT
1. The petitioner before this Court is serving as a Supervisor (Design) in the establishment of the respondent North Eastern Electric Power Corporation Limited (NEEPCO) and is aggrieved with the impugned transfer order dated 26-11-2021 which had been issued by the respondent No.4. The reasons for assailing the transfer order are that the same had been made in a colourable and malafide exercise of power by the respondents in view of the fact that the writ petitioner is a trade union leader and under the collective banner of the three Trade Unions in NEEPCO had filed a writ petition being No. WP(C). 367 of 2021 on 18-11-2021, wherein the vires of Rule 8 (iii) of the North Eastern Electric Power Corporation Limited (NEEPCO) Conduct, Discipline and Appeal Rules, 1980 have been challenged. The writ petitioner has alleged that his transfer is a form of punishment for his involvement in trade union activities. Personal allegations of malafide have also been levelled against the respondent No.5 who is made a party respondent by name.
2. Mr. H.L.Shangreiso, learned Senior counsel assisted by Ms. A.Kharshiing, learned counsel submits that the transfer order suffers from grave illegalities, firstly, in the speed and haste with which the petitioner was transferred which was at the behest of the respondent No.5, to Kurung Project Arunachal Pradesh from Mawsynram Project, Meghalaya without allowing him to complete his assignment and that the same is a clear violation of the stated Transfer Policy of NEEPCO. Learned Senior counsel also asserts that the impugned transfer was made at the behest and on the recommendation of the respondent No.5 who is the petitioner's controlling officer and also the competent recommending authority for transfer of subordinate technical staff, and as such the transfer order was issued by the respondent No.4 (H.R.Department). The learned Senior counsel in his allegations of malafide against the respondent No.5 has submitted that the said respondent was inimical to the petitioner and had warned him with the threat of transfer to a far-flung area for his union activities. In this context, he has drawn the attention of the Court to Annexure-5 of the writ petition which is a show cause notice dated 11-10-2021 issued by the respondent No.5, wherein the petitioner was warned and was called upon to explain as to why necessary action was not to be initiated against him. The learned Senior counsel has pointed out that in this letter itself, reference is made to a verbal warning by the respondent No.5, which was made on 09-08-2021. Learned Senior counsel further submits immediately after the explanation had been given, the petitioner was sent to Wah Umiam HeP Stage III (85 MW) Mawsynram, Meghalaya vide letter dated 15-11-2021 issued by the respondent No.3, for collection of data and he was to submit the same on or before 1st December, 2021, even though such assignment is hardly connected with the petitioner's normal official duty which is drawing of projects as Supervisor (Design). Thereafter, learned Senior counsel submits when the vires of Rule 8 (iii) of the North Eastern Electric Power Corporation Limited (NEEPCO) Conduct, Disciplinary and Appeal Rules, 1980 came to be challenged by way of WP(C). No. 367 of 2021 on 18-11-2021 by the three Trade Unions of NEEPCO, at the behest of respondent No.5, the impugned transfer order dated 26-11-2021 was passed hastily, transferring the petitioner from Guwahati to Kurung Dam, Arunachal Pradesh. The transfer, the learned Senior counsel asserts was made with the view to disable the petitioner from discharging his responsibilities as a Trade Union leader and as such the same was not done in the ordinary course of business but solely with an ulterior motive to punish the petitioner.
3. The learned Senior counsel submits that the transfer of the petitioner is also in violation of Rule 6.2 of the Transfer Policy of NEEPCO which stipulates that an employee will be considered for t
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The main legal point established in the judgment is that NEEPCO is an authority within the meaning of Article 12 of the Constitution, and the employment of the petitioner, though contended to be a co....
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.
Transfer orders within a corporation are valid administrative actions and do not require statutory regulations, affirming the limited scope of judicial review in such matters.
Transfers should be based on public interest and administrative exigencies, and not on extraneous considerations or recommendations from unauthorized persons.
Judicial review of transfer orders is limited to cases of mala fides or clear policy violations; routine administrative transfers do not warrant intervention.
The main legal point established in the judgment is the importance of following the transfer policy and statutory provisions in making transfer decisions, and the binding nature of policies framed by....
The main legal point established is that the employer's right to transfer employees as per administrative requirements and the limited scope of interference by the Courts in transfer matters, unless ....
The object of the IESCO is An Act to require employers in industrial establishments formally to define conditions of employment under them.
The court affirmed that transfer orders are administrative decisions and should not be interfered with unless proven to be arbitrary or in violation of statutory provisions.
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