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2023 MarsdenLR 1355

COURT OF APPEAL PUTRAJAYA
DR THOMAS SAMUEL – Appellant
Versus
PERTUBUHAN KESELAMATAN SOSIAL (PERKESO) & ANOR – Respondent
[Civil Appeal No: W-01(A)-681-11-2021]



Petitioner Advocates:Shanmuga Kanesaligam,Khaizan Sharizad Ab Razak ,Respondent Advocate: Ratha Govindasamy,Diba Natalia Ishak

A public body cannot transfer an employee to a private entity as it is ultra vires the statutory powers and contradicts the employment contract terms.

Headnote:(A) Employees Social Security Act 1969 - Sections 59A, 59H, and 59N(2) - Judicial Review Application dismissed on grounds of being a contractual matter - Appellant's transfer deemed lawful under employment contract - High Court's ruling on judicial review process found erroneous - Transfer to private entity deemed ultra vires and illegal - Court allowed appeal and granted reliefs sought by Appellant. (Paras 22, 60, 61)

(B) Judicial Review - Appropriate grounds for judicial review must involve public law elements - The decision, action or omission of the body must be in the exercise of a public function. (Paras 26, 27)

(C) Employment Law - Management prerogative to transfer employees is recognized, but must comply with statutory powers and employment contract terms. (Paras 41, 52)

Facts of the case:
The Appellant was employed by a statutory body and sought judicial review against the decision to transfer him to a private corporation, which was deemed unlawful. (Paras 2-12)

Findings of Court:
The transfer decision was illegal as it contradicted the terms of the Appellant's employment contract and the governing statute. (Paras 50, 61)

Issues: Whether the transfer decision was lawful and whether the judicial review application was appropriate given the nature of the dispute. (Paras 22, 60)

Ratio Decidendi: The court ruled that the transfer of a public servant to a private entity is ultra vires the statutory powers of the public body and not compliant with the employment contract. (Paras 50, 61)

Result: Appeal allowed, and reliefs granted to the Appellant.

Table of Content
1. employment offer and acceptance details (Para 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13)
2. arguments on public body status (Para 15 , 16 , 17 , 18)
3. respondents' defense of dismissal (Para 19 , 20 , 21)
4. court's decision on proper legal proceedings (Para 22 , 23 , 24 , 25 , 26 , 27 , 28)
5. core issues on transfer legality (Para 30 , 31 , 32 , 33 , 34)
6. court's analysis of transfer legality (Para 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42)
7. impact of public vs private interests (Para 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50)
8. interpretation of statutory powers (Para 51 , 52 , 53 , 54)
9. responsibility of the public authority (Para 55 , 56 , 57 , 58)
10. final decision and orders (Para 60 , 61)
JUDGMENT

Gunalan Muniandy JCA:

Introduction

[1] The Appellant's appeal is against the decision of the learned Judge of the High Court ['LJ'] dated 12 November 2021 dismissing the Appellant's Judicial Review Application.

Background Facts

[2] By a letter of offer of employment dated 20 January 2012, the 1st Respondent offered the Appellant a position as "Pegawai Perubatan Gred 27" in the organization ['PERKESO'].

[3] By a letter of acceptance dated 30 January 2012, the Appellant accepted the said offer. Effective 2 February 2012, the Appellant held the position of a "Pegawai Perubatan Gred 27".

[4] By letter dated 30 September 2014, the 1st Respondent wrote to the Appellant to confirm his position as a "Pegawai Perubatan Gred 27". The Appellant's confirmation was backdated to be effective from 2 February 2013.

[5] By letter dated 11 January 2017, the Appellant wrote to the 1st Respondent to apply for study leave (without pay) from 20 February 2017 until July 2019 to pursue a Master of Social Sciences degree at Waikato University Hamilton, New Zealand.

[6] By a memorandum ['memo'] dated 13 February 2017, the 1st Respondent informed the Appellant that his application for study leave (without pay) from 20 February 2017 until 31 July 2019 was not approved

[7] By letter dated 14 March 2017, the Appellant wrote to appeal to the 1st Respondent against the non-approval of his application for study leave (without pay). The Appellant informed the 1st Respondent that he had obtained a deferment of the said course which would then begin from 3 July 2017 to 31 December 2019.

[8] By a memo dated 22 March 2017, the 1st Respondent informed the Appellant that it was unable to consider the Appellant's appeal.

[9] By a further letter dated 14 September 2017, the Appellant wrote to the 1st Respondent to reconsider his appeal against the non-approval of his application for study leave (without pay). The Appellant informed the 1st Respondent that he had obtained a further deferment of the said course to begin from 19 February 2018 until 31 August 2020.

[10] By a memo dated 23 October 2017, the 1st Respondent wrote to the Appellant to inform him that his application for study leave (without pay) to pursue a Master of Social Sciences degree at the Waikato University, Hamilton, New Zealand from 19 February 2018 until 31 August 2020 was not approved on the basis of "kepentingan perkhidmatan".

[11] By a letter dated 9 January 2018, the Appellant then wrote to the then Minister of Human Resources to appeal against the 1st Respondent's decision to not approve his application for study leave (without pay). The Appellant did not receive any reply from the then Minister of Human Resources.

[12] On 19 January 2018, the transfer of the Appellant to Pusat Rehabilitasi PERKESO Tun Abdul Razak in Melaka by R1 effective 22 January 2018 was not interfered with by R2.

[13] The Appellant filed an application for judicial review proceedings (encl 12) under O 53 of the Rules of Court 2012 (ROC) to seek the following reliefs:

(a) an Order of Certiorari to move into the High Court and quash the decision of the 1st Respondent as set out in their memorandum dated 19 January 2018 transferring the Applicant to PERKESO Tun Abdul Razak Rehabilitation Centre in Melaka;

(b) an Order of Ce

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