Transfer Of Employee To Maintain Internal Harmony In Organization Not Punishment, Enquiry Not Required: Kerala High Court

The Kerala High Court recently held that an employee in service can be transferred on administrative grounds in order to maintain a harmonious atmosphere in office for its smooth functioning.

A single bench of Justice Sathish Ninan also observed that departmental action may not be required in light of such transfers as they are not to be considered as punishment, but only a means to maintain a good work environment:

“When an employee is transferred to maintain the smooth running of an organization, it is not to be understood as a punishment. The element of punishment is absent therein. The idea is to maintain the internal harmony of the organisation and to safeguard its smooth functioning. In every case of erratic or inappropriate behaviour by a subordinate, the employer is not bound to initiate departmental action and to impose punishment. For effecting a transfer, there need not be any enquiry conducted to first ascertain whether there was misbehaviour or conduct unbecoming of an employee. To hold otherwise would frustrate the very purpose of transferring an employee in public interest or exigencies of administration, to enforce a decorum and ensure probity.”

The Court was considering a challenge to transfer orders issued by the Kerala State Road Transport Corporation (KSRTC) based on the report of the Executive Director (Vigilance) that certain persons were causing disharmony in office and affecting the smooth functioning of the office.

Adv. O D Sivadas and Adv. Sajeev Kumar K. Gopal appeared for the petitioners and Standing Counsel Adv. Deepu Thankan appeared for KSRTC.

The Court observed that an employee has no legal rights in the matter of transfer and that courts should refrain from interfering with transfer orders unless there are statutory violations or malicious intent.

“Corporation cannot effectually work when the employees act intolerably or spitefully amongst themselves or is engaged in activities which go against the best interests of the Corporation. Transfer can be effected on administrative grounds as long as it is intended to aid proper administration and to subserve internal discipline,” it observed.

The Court dismissed the petition holding that there was no material on record to show malice on the part of the authority and hence the transfer orders did not warrant any interference. The Court also referred to a plethora of judgments to observed that:

“The power to transfer an employee in a transferable service is within the prerogative of the employer. It is he who knows best, where an employee should be deployed for an effective discharge of his/her duties for the establishment. The inconvenience caused to the employee and his family consequent on the transfer are not sufficient to interfere with the orders of transfer. A transfer can always be done in public interest."

Case Title: Nixy James V Kerala State Road Transport Corporation

Citation: 2023 LiveLaw (Ker) 236

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