Case Note & Summary
The dispute arose from the State Bank of India's appeal against a judgment of the Calcutta High Court, which had set aside a transfer order of the respondent, an officer in the bank. The respondent was appointed as a Probationary Officer in 1971 and faced multiple transfer orders, which he consistently evaded by remaining on leave or filing representations. The High Court ruled that the transfer order to Mumbai was not valid as it had not been served on the respondent, leading to the bank's appeal. The Supreme Court analyzed the correspondence between the bank and the respondent, concluding that the transfer order was indeed valid and communicated. The Court criticized the High Court for relying on conjecture and failing to recognize the employee's obligation to comply with transfer orders. The Supreme Court ultimately set aside the High Court's judgment, reinstating the validity of the transfer orders and dismissing the respondent's claims for salary and benefits during his absence from duty.
Headnote
A) Employment Law - Transfer of Employees - Validity of Transfer Orders - State Bank of India Act, 1955, Section 43 - The Supreme Court held that the transfer order dated 14.6.1986 was valid and had been communicated to the employee, who failed to comply with it. The High Court's conclusion that the transfer order was not served was based on conjecture and lacked legal grounding (Paras 1-8). B) Employment Law - Employee's Duties - Compliance with Transfer Orders - State Bank of India Officers Service Rules, Rule 50 - The Court emphasized that employees must comply with lawful transfer orders, and failure to do so could lead to disciplinary action. The High Court's direction to grant salary and benefits despite non-compliance was set aside (Paras 9-12).
Issue of Consideration
Whether the transfer order of the respondent was valid and properly communicated, and whether the High Court erred in setting aside the transfer orders.
Final Decision
The Supreme Court set aside the judgments of the learned Single Judge and the Division Bench of the Calcutta High Court, reinstating the validity of the transfer order and dismissing the respondent's claims for salary and benefits.
Law Points
- Transfer of employees
- service conditions
- validity of transfer orders
- employer's obligations
- employee's duties


