Jurisdiction of High Court Where Employee Worked Under PSU in the State, Especially in Last Year of Service Transfer
Limited Jurisdiction of High Courts: The Supreme Court has emphasized that the jurisdiction of High Courts under Article 226 is limited and primarily pertains to violations of fundamental rights or principles of natural justice, rather than mere administrative or policy decisions. For instance, in State of Haryana v. Devi Dutt and Hari Vishnu Kamath v. Ahmed Ishaque, the Court clarified that High Courts cannot interfere in policy matters or contractual employment decisions unless there is a violation of legal rights or principles of natural justice Santosh Devi VS Guru Teg Bahadur Hospital Shahdara Delhi - Delhi.
Transfer of Employees and Service Conditions: Transfers within State PSUs or between PSUs and State authorities are subject to specific rules and service conditions. Transfers made in accordance with established rules generally do not attract judicial review unless malafide or arbitrary, especially when the employee is not in a permanent or regular capacity. The absence of a specific rule permitting inter-state transfers or transfer without adherence to norms can render such transfers legally questionable Industrial Promotion And Investment Corporation Of Odisha Ltd (ipicol) VS Bimbadhar Panda - Orissa, INDUSTRIAL PROMOTION AND INVESTMENT CORPORATION OF ODISHA LTD. (IPICOL) vs KARIM KHAN - Orissa.
Employee’s Last Year of Service and Transfer: When an employee is transferred in the last year of service, the jurisdiction depends on whether the transfer violates statutory provisions, contractual rights, or principles of natural justice. If the transfer is arbitrary, malafide, or violates service rules, High Courts may exercise jurisdiction under Article 226. However, if the transfer is within the scope of policy and rules, courts are generally reluctant to interfere, especially if the employee is not a permanent or regular employee BYJU K.K vs STATE OF KERALA - Kerala.
Employees Not in Regular Service: Many sources highlight that contractual or fixed-term employees, especially those not employed directly under State or PSU rules, do not have a right to challenge transfers or service conditions in High Courts. Their employment is governed by contract, and courts typically do not interfere unless principles of natural justice are violated RAJESH KUMAR JHA Vs CENTRAL RAILSIDE WAREHOUSE COMPANY LIMITED - Delhi, Santosh Devi VS Guru Teg Bahadur Hospital Shahdara Delhi - Delhi.
Specific Case of Last Year Transfer: In cases where employees are transferred during the last year of service, courts examine whether the transfer was made arbitrarily or with malafide intent. If the transfer is made in accordance with rules, it is usually upheld. The jurisdiction remains with the High Court, but only if the transfer infringes statutory rights or principles of natural justice M Vijaya Bhaskar vs Bharat Sanchar Nigam Ltd - Central Administrative Tribunal.
Analysis and Conclusion
The jurisdiction of the High Court in cases where an employee working under a PSU in a State is transferred, especially in the last year of service, hinges on whether the transfer violates statutory rules, contractual rights, or principles of natural justice. Generally, if the transfer is made following proper rules and without malafide intent, courts are hesitant to interfere, emphasizing the limited scope of judicial review in policy and administrative decisions. However, if the transfer is arbitrary, violates service conditions, or is made in violation of principles of natural justice, the High Court can exercise jurisdiction under Article 226.
References:- State of Haryana v. Devi Dutt, Hari Vishnu Kamath v. Ahmed Ishaque – Supreme Court clarified limited jurisdiction.- State of Kerala v. Dr. Jyothish Kumar – Transfer policies and judicial restraint.- BYJU K.K vs STATE OF KERALA - Kerala – Court's reluctance to interfere in policy decisions.- Industrial Promotion And Investment Corporation Of Odisha Ltd (ipicol) VS Bimbadhar Panda - Orissa – Transfer rules and employee rights.- M Vijaya Bhaskar vs Bharat Sanchar Nigam Ltd - Central Administrative Tribunal – Jurisdiction in last-year transfers and natural justice considerations.
