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Calcutta High Court · body

1985 DIGILAW 62 (CAL)

A. N. Dutt v. State

1985-02-18

Umesh C.Banerjee

body1985
JUDGMENT 1. THIS writ petition is directed against an order of transfer of the petitioner by the Institute of Cost and Works Accountants of India. 2. THE Institute of Cost and Works accountants of India is a body corporate governed by the provisions of Costs and works Accountants Act 1959 (Act No. 23 of 1959 ). The Act of 1959 was engrafted in the statute book to make provisions for the regularisation of professions of costs and Works Accountants in India. The petitioner is a gold medalist in economics from the Calcutta University and also subsequently obtained Ph. D. in economics from the same University. The petitioner, as appears from the records was employed as the Secretary of the calcutta Chamber of Commerce with a lucrative salary. The petitioners case is that by reason of his natural inclination and seal towards journalism and having had a flair for writing in the field of finance and economics the petitioner responded to an advertisement issued by the Institute for the post of Editor for its journal "the Management Accountant. "On 15th September, 1979 a letter of appointment was issued to the petitioner for the post of Editor of the afore-said journal with a basic salary of 1450-2650 per month together with other benefits. It was the pre-condition of the appointment that the petitioner would be on probation for a period of six months and on satisfactory completion of probationary period, the petitioner would be confirmed in the post of Editor. As regards duties and responsibilities, the petitioner was required to edit the monthly journal of the Institute "the Management Accountant" and to administer its timely printing and publication and circulation to members, students and subscribers as also to collect advertisements and to do such other things incidental to the proper discharge of duty as an editor. Admittedly on successful completion of the probationary period, the petitioner was duly confirmed in the post of Editor of the 'management Accountant' with effect from 10th March, 1980. There exists no complaint in regard to the efficiency of the petitioner as the Editor of the journal. 3. BY an Office Order No. 78 dated 3rd january 1985 the petitioner however was transferred to the Research Directorate as Deputy Director of Research and Dr. There exists no complaint in regard to the efficiency of the petitioner as the Editor of the journal. 3. BY an Office Order No. 78 dated 3rd january 1985 the petitioner however was transferred to the Research Directorate as Deputy Director of Research and Dr. B. Banerjee the Director of Research and Publication was made the editor of "management Accountant" in addition to his duties and responsibilities as the Director of Research and Publication. It is this order dated 3rd January 1985 being Office Order No. 78 which is under challenge in this writ petition. 4. THE petitioner contended that the transfer order is wholly arbitrary and an unjustified user of administrative power. In paragraph 35 of the petition a specific allegation has been made that the transfer order was issued in order to accommodate the Director of Research and Publication, In the counter affidavit filed by the Institute there is no proper denial of the said statement. During the course of hearing it come to light that as a matter of fact there exists no post of Deputy Director of Research and a post was sought to be created for the purpose of effecting the transfer. The factum of creation of post for the purpose of giving effect to a transfer order without administrative necessity negates bonafides. The Institute has been functioning with the self same set up for more than two decades, The circumstance under which the creation was sought to be made has not been stated in the counter affidavit neither any submission made to that effect from the Bar. There is no evidence at all that the creation of the post of Deputy Director of Research became imperative because of increased volume of work or even otherwise. In the normal course of events, the creation of a managerial post involving financial implications, ought to have been discussed at the highest level upon proper recordings being made to that effect. The Institute is manned by highly qualified persons and transfer orders in my view without just cause may not only have a demoralising effect among the members of the staff but may also create a feeling of fear and terror which is not desirable at all. The Institute is manned by highly qualified persons and transfer orders in my view without just cause may not only have a demoralising effect among the members of the staff but may also create a feeling of fear and terror which is not desirable at all. It is now well settled that the High Court exercising powers under Article 226 of the Constitution cannot assume the role of administrative supervisor in regard to the affairs of the organisation and as such ought not normally to interfere in the matter of transfer. The effect of transfer in be normal course of events for administrative exigencies is a simple user of managerial function but it cannot and ought not to be treated as a prerogative without any just cause. If the transfer order is tainted malice or violative of certain well accepted norms or is penal in nature, the Writ Court shall be within its jurisdiction to enquire into the charge of malice and if found substantiated can set right the wrong. The wrong doer ought to be told that administrative whims would be weighed in the scale of justice and judgment be pronounced in favour of one in whose favour the scale tilts. The creatures of the statutes have a bounden duty to the society for fair play and justice. Contra action would not only harass the person affected but it may lead to social Catastrophe. Faith and belief in the administration is the key note in a socialistic and democratic set up Confidence in the administration goes a long way, specially in a country like ours and this ought to be the most accepted methodology of the administrative system. The law Courts exist to remedy the wrong in the event of any departure from the same. To set right the wrong is a plain exercise of judicial powers and there ought not be any hesitation in that regard. 5. THE Madras High Court in the case of C. Ramanathan Vs. Acting Zonal Manager, Food Corporation of India, Madras and others reported in 1981 LLJP-1 observed :- "courts are chary to interfere with an order of transfer made for administrative reasons. 5. THE Madras High Court in the case of C. Ramanathan Vs. Acting Zonal Manager, Food Corporation of India, Madras and others reported in 1981 LLJP-1 observed :- "courts are chary to interfere with an order of transfer made for administrative reasons. An innocuous order of transfer, which not only on the face of it appears to one made in order, to further the administrative interests of an organisation, which even on a deeper scrutiny does not pose any irregular or mala fide exercise of power by the concerned authority, is generally upheld by civil courts as Courts cannot substitute their own opinion and interfere with ordinary orders of transfer of employees of established organisations. But if in a given case, an order of transfer appears to be deliberate attempt to bypass all disciplinary machinery and offend the well known principle of audi alteram partem if ex facie it is clear that the order of transfer was not made for administrative reasons but was made to achieve collateral purpose, then it is open to the Court to crack the shell of innocuousness which wraps the order of transfer and by piercing such, a veil, find out the rival purpose behind the order of transfer. No doubt, a normal order of transfer can, be misunderstood as a punitive measure. But, if the circumstances surrounding such an order leads to a reasonable inference by a well instructed mind that such an order was made in the colourable exercise of power and intended to achieve a sinister purpose and based on irrelevant considerations, then the arum of the- Court can be extended so as to decipher the intendment of the order and set it aside on the ground that it is one made with a design and motive or circumventing disciplinary action and, particularly when civil servant is involved, to avoid the stringent but mandatory procedure prescribed in Art. 311 (2) of the constitution of India. " 6. THE Law Courts would therefore be required to investigate as to whether the order of transfer is tainted with malice or motive. " 6. THE Law Courts would therefore be required to investigate as to whether the order of transfer is tainted with malice or motive. Malice in common acceptation means ill-will against a person but in its legal sense it means a Wrongful act done intentionally without just cause or excuse ("stroud's Judicial dictionary"; per Bayley J., Bromage vs. Prosser, 4 B and C 255.) The creation of post without any just cause or without any attempt on the part of the institute to satisfy the court that the creation was imperative by reason of certain administrative exigencies in my view itself negates bonafides. There must be justified reasons and it ought to be disclosed to the Court. Until and unless it is made clear as to how and in what manner the creation was effected or that the creation of post of Deputy Director Research is for the interest of proper administration of the institute, it cannot be said that it was for administrative purpose or for other necessary exigencies of the situation. This view also finds support from the recent decision of the Madras high Court in the case of Chief Engineer personnel TNEB Madras vs. K. Raman reported in (1985) 1 LLJ 164 . In the premises, impugned order of transfer cannot be termed to be an administrative necessity. 7. IN that view of the matter, this application succeeds. The order of transfer issued by the Institute is set aside and quashed. This order however would not prevent the institute from taking such step or steps in accordance with law. 8. THE writ petition is therefore all owed. There will however be no order as to costs. I am however not inclined to pass any order in regard to the application for contempt and as such the application for contempt stands dismissed. application allowed.