Supreme Court Partly Allows Employer in Telecom Transfer Dispute — Merger of Telecom Circles Creates Transfer Liability but Options Required for Difficult Area Postings. Employees of Erstwhile Hyderabad Telephone District Became Liable for Transfer within Andhra Pradesh Circle After Reorganisation, but Government Instructions Required Individual Options Before Transfer to Telangana Areas.

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Case Note & Summary

The dispute arose from the reorganisation of Telecom Circles in India and the subsequent transfer of Junior Engineers from Hyderabad Telecom District to Telangana District of Andhra Pradesh Telecom Circle. The respondents were sixteen employees working as Junior Engineers (Junior Telecom Officers) under the administrative control of the General Manager, Telephone District, Hyderabad. Before the reorganisation on 1 November 1986, Hyderabad Telephone District was a separate independent unit, with recruitment, transfers and postings confined to the twin cities of Hyderabad and Secunderabad. The Ministry of Communications evolved a National Switching Plan, leading to reorganisation of Telecom Circles on the basis of Secondary Switching Areas. Consequently, the erstwhile Hyderabad Telephone District was merged with the Andhra Pradesh Telecom Circle and brought under the Chief General Manager, Telecom, Andhra Pradesh. The Chief General Manager decided to rotate Junior Telecom Officers and other Circle Cadre Officials every two years to maintain service efficiency and help staff who had served in difficult areas of Telangana. By order dated 26 May 1993, the respondents were transferred from Hyderabad Telecom District to various places in Telangana District. They challenged the transfer before the Central Administrative Tribunal, Hyderabad Bench, which by order dated 20 August 1993 set aside the transfer order, holding that under the instructions dated 19 September 1986 and the terms of their appointment, the respondents could not be transferred outside the erstwhile Hyderabad Telephone District without their consent. The Union of India appealed by special leave to the Supreme Court. The appellants contended that after the merger, the seniority lists of all circle cadre officials were merged and a common gradation list of the entire Andhra Pradesh Circle was issued on 14 August 1992, which became final as no objections were raised. They argued that the respondents held transferable posts and had no vested right to remain at one place, and that transfers were made on administrative grounds. The respondents countered that since they were recruited for service in Hyderabad Telecom District and some had come on voluntary transfer forfeiting seniority, they were liable to serve only in that district, except in special circumstances when they could be transferred anywhere in India. The Supreme Court noted that the merger and common gradation list were admitted facts. The appointment order clause 3(IV) provided liability to serve in any part of Hyderabad Telephone District and in special circumstances in any part of India. The Court held that after merger, the respondents became liable to be transferred within the Andhra Pradesh Circle, and the merger itself constituted a special circumstance. However, the Court then considered the Government of India instructions dated 19 September 1986, particularly paragraph 3 of Annexure 2, which provided that existing staff of the erstwhile Telephone District recruited to specific units would have transfer liability over the entire Secondary Switching Area but such liability might be confined to those units as far as possible, taking into consideration individual options. The Court found that the Chief General Manager ought to have obtained options from the respondents before passing the transfer order. Since admittedly no options were taken, the transfer order could not be enforced. Accordingly, the Supreme Court partly allowed the appeal and modified the Tribunal's order, directing that if any respondent was proposed to be transferred to difficult Telangana Areas, the appellants must obtain options from them and pass fresh transfer orders after considering individual options. The parties were left to bear their own costs.

Headnote

A) Service Law - Transfer and Posting - Merger of Telecom Circles and Transfer Liability - Not mentioned - The reorganisation of Telecom Circles with effect from 1.11.1986 merged the erstwhile Hyderabad Telephone District with A.P. Telecom Circle; seniority lists of circle cadre officials were merged and a common gradation list issued on 14.8.1992 which attained finality as no objections were raised - Held that after merger, employees of erstwhile district became liable to be transferred within the A.P. Circle, and the merger itself constituted a special circumstance for transfer under their appointment terms (Paras 8-9).

B) Service Law - Transfer and Posting - Interpretation of Appointment Order Clause - Not mentioned - Clause 3(IV) of the appointment order provided liability to serve in any part of Hyderabad Telephone District and in special circumstances in any part of India; the Supreme Court held that the phrase "special circumstances" was wide enough to include the merger and common gradation list, making employees liable for transfer anywhere in the A.P. Circle (Paras 8-9).

C) Administrative Law - Government Instructions - Requirement of Individual Options Before Transfer - Not mentioned - Paragraph 3 of Annexure 2 to Government of India instructions dated 19.9.1986 required that existing staff of erstwhile Telephone District recruited to specific units be transferred within the entire Secondary Switching Area but their liability could be confined to those units as far as possible taking into consideration individual options - Held that the competent authority ought to have obtained options from employees of erstwhile district before transferring them to difficult Telangana Areas; as no options were taken, the transfer order could not be enforced (Paras 10-11).

D) Administrative Law - Judicial Review of Transfers - Scope of Interference - Not mentioned - While government employees holding transferable posts have no vested right to remain at one place, administrative instructions creating procedural safeguards such as obtaining individual options must be complied with before effecting transfers - Held that the Central Administrative Tribunal's order was modified, not fully set aside, and fresh transfer orders were required after obtaining and considering individual options (Paras 11-12).

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Issue of Consideration

Whether employees of erstwhile Hyderabad Telephone District, after merger with A.P. Telecom Circle, could be transferred outside Hyderabad district; whether transfer order dated 26.5.1993 was valid without obtaining options under Government instructions dated 19.9.1986; whether the Central Administrative Tribunal erred in setting aside the transfers.

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Final Decision

The appeal was partly allowed. The Supreme Court modified the Tribunal's order to the extent that before any respondent is proposed for transfer to difficult Telangana Areas, the appellants shall obtain options from them and pass fresh transfer orders after considering their individual options. The parties were left to bear their own costs.

Law Points

  • Transfer liability of government employees
  • Merger of Telecom Circles
  • Common gradation list finality
  • No vested right to remain at a post
  • Administrative transfers and judicial review
  • Requirement of individual options under government instructions
  • Interpretation of appointment order liability clause
  • Reorganisation of Telecom Circles under National Switching Plan
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Case Details

1995 LawText (SC) (02) 17

1995-02-01

Faizan Uddin, S.C. Agrawal

1995 SCC (3) 115, JT 1995 (2) 244, 1995 SCALE (1)424

The Union of India & Ors.

D. Mohan & Ors.

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Nature of Litigation

Service dispute challenging transfer of Junior Engineers from Hyderabad Telecom District to Telangana District after reorganisation of Telecom Circles.

Remedy Sought

Employees sought quashing of transfer order dated 26.5.1993 before Central Administrative Tribunal; in the Supreme Court, Union of India challenged the Tribunal's order setting aside the transfers.

Filing Reason

The respondents were transferred to difficult Telangana areas without their consent and contrary to their appointment terms and government instructions; they alleged they were liable to serve only in Hyderabad Telephone District.

Previous Decisions

Central Administrative Tribunal, Hyderabad Bench in O.A. No.765/1993 by order dated 20.8.1993 set aside the transfer order dated 26.5.1993 except for respondent No.13, holding that respondents could not be transferred outside erstwhile Hyderabad Telephone District without consent.

Issues

Whether after reorganisation of Telecom Circles and merger of Hyderabad Telecom District with A.P. Telecom Circle, employees of erstwhile district could be transferred outside Hyderabad district. Whether transfer order dated 26.5.1993 was valid without obtaining individual options as required by Government instructions dated 19.9.1986. Whether the Central Administrative Tribunal erred in setting aside the transfer order.

Submissions/Arguments

Appellants contended that after reorganisation, seniority lists were merged and a common gradation list of entire A.P. Circle was issued, forming basis for promotion and transfers; respondents held transferable posts with no vested right to remain at one place; transfers were made for administrative efficiency and to help staff from difficult areas. Respondents contended that since they were recruited for service in Hyderabad Telecom District and some came on voluntary transfer forfeiting seniority, they were liable to serve only in that district, except in special circumstances when they could be transferred anywhere in India.

Ratio Decidendi

After merger of erstwhile Hyderabad Telephone District with A.P. Telecom Circle, employees holding transferable posts became liable to be transferred anywhere within the circle; the merger and common gradation list constituted special circumstances under the appointment terms. However, Government instructions dated 19.9.1986 required that existing staff recruited to specific units be transferred only after considering individual options as far as possible; non-compliance with this procedural safeguard rendered the transfer order unenforceable.

Judgment Excerpts

The appointment carries with it the liability to serve in any part of Hyderabad Telephone District and in special circumstances in any part of India. the Chief General Manager Telecom Circle A.P. before passing the order of Transfer, ought to have obtained options from those employees and Officers who belonged to the erstwhile Telephone District who were recruited to the specific units and after considering their individual options should have passed the order of transfer, so as to avoid any possible hardship to them. In the present case admittedly no options were taken from the respondents and for this reason alone the transfer order cannot be enforced.

Procedural History

Original Application No.765/1993 was filed by sixteen respondents before Central Administrative Tribunal, Hyderabad Bench challenging transfer order dated 26.5.1993. The Tribunal by order dated 20.8.1993 set aside the transfer order except for respondent No.13. The Union of India filed an appeal by special leave before the Supreme Court challenging the Tribunal's order. The Supreme Court granted leave and partly allowed the appeal on 1.2.1995, modifying the Tribunal's order.

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