Bombay High Court Allows Writ Petition Challenging Transfer Order as Violative of Service Rules and Natural Justice. Transfer of Regional Manager to Mumbai set aside for non-compliance with Section 25 of the Industrial Disputes Act, 1947 and breach of principles of natural justice.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Ramesh Janardhan Meshram, a retired Regional Manager of Lokshahir Annabhau Sathe Development Corporation, challenged his transfer order dated 30.01.2018 transferring him from Aurangabad to Mumbai. He contended that the transfer was in violation of the service rules and principles of natural justice, as he was not given any opportunity of hearing before the order was passed. The respondents argued that the transfer was made in the interest of administration and that the petitioner had no right to a particular place of posting. The court examined the provisions of the Industrial Disputes Act, 1947, particularly Section 25, which mandates compliance with conditions of service before effecting any change. The court found that the transfer amounted to a change in service conditions and that the respondent corporation had not followed the procedure under Section 25. Additionally, the court noted that the transfer order was passed without affording the petitioner an opportunity to show cause, violating principles of natural justice. The court allowed the writ petition, quashed the transfer order, and directed the respondents to allow the petitioner to continue at his original place of posting. The court also emphasized that any transfer must be in accordance with law and must not be arbitrary or mala fide.

Headnote

A) Service Law - Transfer - Validity of Transfer Order - Section 25 of Industrial Disputes Act, 1947 - The petitioner challenged his transfer from Aurangabad to Mumbai on grounds of violation of service rules and natural justice. The court held that the transfer order was passed without following the mandatory procedure under Section 25 of the Industrial Disputes Act, 1947 and without affording the petitioner an opportunity of hearing, thus it was unsustainable. (Paras 1-10)

B) Industrial Disputes Act - Section 25 - Conditions of Service - Change in Service Conditions - The transfer of an employee from one place to another amounts to a change in service conditions. The employer must comply with Section 25 of the Industrial Disputes Act, 1947, which requires notice and consultation. The court found that the respondent corporation failed to comply with these requirements, rendering the transfer order invalid. (Paras 5-8)

C) Natural Justice - Right to Hearing - Transfer Order - The petitioner was not given any opportunity to show cause before the transfer order was issued. The court held that principles of natural justice require that an employee be heard before an adverse order of transfer is passed, especially when the transfer is punitive or stigmatic. The order was set aside for violation of natural justice. (Paras 6-9)

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Issue of Consideration

Whether the transfer order dated 30.01.2018 transferring the petitioner from Aurangabad to Mumbai is legal and valid, and whether it violates the petitioner's service conditions and principles of natural justice.

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Final Decision

The court allowed the writ petition, quashed the transfer order dated 30.01.2018, and directed the respondents to allow the petitioner to continue at his original place of posting.

Law Points

  • Transfer order
  • Service rules
  • Natural justice
  • Industrial Disputes Act
  • 1947
  • Section 25
  • Reasoned order
  • Compliance with statutory provisions
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Case Details

2018 LawText (BOM) (11) 17

Writ Petition No.3671 of 2018

2018-11-28

S.S. Shinde, K.K. Sonawane

Mr. Devidas R. Shelke for petitioner, Mr. M.R. Kulkarni, AGP for respondents

Ramesh Janardhan Meshram

Lokshahir Annabhau Sathe Development Corporation through its Managing Director, General Manager Mr. Dattatray Mahadev Zombade, Regional Manager

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Nature of Litigation

Writ petition challenging a transfer order

Remedy Sought

Quashing of transfer order dated 30.01.2018 transferring petitioner from Aurangabad to Mumbai

Filing Reason

Petitioner alleged violation of service rules and principles of natural justice in the transfer order

Issues

Whether the transfer order dated 30.01.2018 is legal and valid? Whether the transfer order violates the petitioner's service conditions and principles of natural justice?

Submissions/Arguments

Petitioner argued that the transfer was in violation of service rules and natural justice as no opportunity of hearing was given. Respondents argued that the transfer was in the interest of administration and the petitioner had no right to a particular place of posting.

Ratio Decidendi

A transfer order that changes service conditions must comply with Section 25 of the Industrial Disputes Act, 1947, and principles of natural justice require that the employee be given an opportunity of hearing before such an order is passed. Non-compliance renders the transfer order invalid.

Judgment Excerpts

This Petition is filed with the following substantive... The transfer order was passed without following the mandatory procedure under Section 25 of the Industrial Disputes Act, 1947 and without affording the petitioner an opportunity of hearing.

Procedural History

The petitioner filed a writ petition before the High Court of Judicature at Bombay Bench at Aurangabad challenging the transfer order dated 30.01.2018. The petition was reserved on 22.11.2018 and pronounced on 28.11.2018.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 25
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