Supreme Court Allows Appeal by Bank in Transfer Case — Transfer Order Restored with Alternative Posting Options. Allegations of Malafide Transfer Not Established; Bank's Administrative Exigency Upheld.

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Case Note & Summary

The case involves a senior officer of Punjab and Sind Bank, Mrs Durgesh Kuwar, who was appointed as a Probationary Officer in 1998 and promoted to Chief Manager in Scale IV. She was transferred from Indore to Sarsawa, Jabalpur on 11 December 2017. The respondent alleged that her transfer was a reprisal for reporting irregularities at her branch and for complaining about sexual harassment by the Zonal Manager, Mr Pankaj Dwivedi. She submitted representations citing bank circulars and guidelines for posting of women officers. The High Court quashed the transfer, finding it malafide and in violation of bank circulars. The Supreme Court, in appeal, considered whether the transfer was malafide and whether the High Court's interference was justified. The Court noted that the respondent had been in Indore for several years and that the bank had offered alternative postings at Scale IV branches. The Court held that transfer is an exigency of service and judicial review is limited. The allegations of malafide were not proven, as the transfer was recommended by senior officers and the Internal Complaints Committee found no substance in the sexual harassment complaint. The Court set aside the High Court's order and directed the bank to consider the respondent's choice of posting among Bhopal, Jabalpur, Jaipur, or New Delhi, and to allow her to join within four weeks.

Headnote

A) Service Law - Transfer - Judicial Review - Transfer is an exigency of service and courts should not interfere unless malafide or violation of statutory rules - The court held that the High Court erred in quashing the transfer order without sufficient evidence of malafide or violation of circulars (Paras 2-12).

B) Sexual Harassment - Workplace - Transfer as Reprisal - Allegations of sexual harassment and reporting of irregularities must be considered in transfer decisions - The court noted that the respondent's allegations were investigated and found unsubstantiated, and the transfer was not proven to be a reprisal (Paras 5-8).

C) Bank Circulars - Posting of Women Officers - Guidelines - The High Court found violation of bank circulars and Ministry of Finance guidelines, but the Supreme Court held that the transfer was in administrative exigency and offered alternative postings (Paras 7-11).

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Issue of Consideration

Whether the transfer of a senior bank officer was malafide and in violation of bank circulars and guidelines, and whether the High Court was justified in quashing the transfer order.

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Final Decision

The Supreme Court allowed the appeal, set aside the High Court's judgment, and directed the respondent to join at a Scale IV branch of her choice among Bhopal, Jabalpur, Jaipur, or New Delhi within four weeks, failing which the transfer order would be implemented.

Law Points

  • Transfer orders are exigencies of service
  • judicial review limited
  • malafide must be proved
  • allegations of sexual harassment must be considered
  • bank circulars and guidelines must be followed
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Case Details

2020 LawText (SC) (2) 77

Civil Appeal No 1809 of 2020 (Arising out of SLP(C) No 11985 of 2019)

2020-03-18

Dr Dhananjaya Y Chandrachud

Punjab and Sind Bank and Others

Mrs Durgesh Kuwar

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Nature of Litigation

Civil appeal against High Court judgment quashing transfer order of a bank officer.

Remedy Sought

Appellants sought to set aside the High Court's order quashing the transfer of the respondent.

Filing Reason

The bank and its officers challenged the High Court's decision to quash the transfer order of the respondent.

Previous Decisions

Single Judge of High Court quashed transfer order; Division Bench affirmed.

Issues

Whether the transfer of the respondent was malafide and in violation of bank circulars and guidelines. Whether the High Court was justified in interfering with the transfer order in exercise of judicial review.

Submissions/Arguments

Appellants argued that transfer was in administrative exigency, not malafide; respondent had been in Indore for long; allegations of sexual harassment were investigated and found unsubstantiated. Respondent argued that transfer was a reprisal for reporting irregularities and complaining of sexual harassment; violated bank circulars and guidelines.

Ratio Decidendi

Transfer orders are exigencies of service and courts should not interfere unless malafide or violation of statutory rules is clearly established. The burden of proving malafide lies on the employee, and mere allegations without evidence are insufficient.

Judgment Excerpts

A senior officer of a public sector banking institution complains that her reports about irregularities and corruption at her branch and her complaints against an officer who sexually harassed her met with an order of transfer. The case involves the intersection of service law with fundamental constitutional precepts about the dignity of a woman at her workplace.

Procedural History

The respondent challenged her transfer order before the Madhya Pradesh High Court. A Single Judge quashed the transfer on 11 February 2019. The Division Bench affirmed on 18 March 2019. The bank and its officers appealed to the Supreme Court under Article 136.

Acts & Sections

  • Constitution of India: Article 136, Article 226
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Supreme Court Supreme Court Allows Appeal by Bank in Transfer Case — Transfer Order Restored with Alternative Posting Options. Allegations of Malafide Transfer Not Established; Bank's Administrative Exigency Upheld.
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