Can contractual NHM appointees be validly transferred when transfer terms are added through contract renewals?

Does a transfer clause incorporated in successive renewals of a purely contractual appointment under the National Health Mission bind the appointee, and are NHM transfer guidelines merely indicative? Calcutta High Court affirms that contractual autonomy governs transfers, distinguishes advisory nature of NHM Guidelines, and provides binding authority for High Court and subordinate courts.

 

Summary

Category Data
Case Name WPA/14686/2025 of MITHUN CHAKRABORTY AND ORS Vs STATE OF WEST BENGAL AND ORS.
CNR WBCHCA0302922025
Date of Registration 02-07-2025
Decision Date 25-08-2025
Disposal Nature DISMISSED
Judgment Author Hon’ble Justice Aniruddha Roy
Court Calcutta High Court (Appellate Side)
Bench Single Judge
Precedent Value Binding
Overrules / Affirms Affirms existing law regarding contractual terms
Type of Law Contract law; administrative law
Questions of Law
  • Whether a transfer clause introduced by contract renewal binds contractual employees under NHM.
  • Whether NHM transfer guidelines alone have binding force.
Ratio Decidendi
  1. A contractual relationship may be modified or novated by fresh contracts or renewals incorporating new terms.
  2. Transfer guidelines under NHM are indicative and not binding unless expressly made part of the contract.
  3. Clause 1.3 of the May 26, 2022 transfer guideline, when incorporated into a renewed contract, empowers the authority to transfer at any time.
  4. Acceptance of successive renewals and representations seeking transfer benefits demonstrates consent to the contractual transfer clause.
  5. In absence of mala fide or arbitrariness, administrative transfers under a valid contractual term cannot be interfered with.
Judgments Relied Upon
  • Rajendra Singh & Ors. v. State of U.P., (2009) 15 SCC 178
  • State of Rajasthan v. Anand Prakash Solanki, (2003) 7 SCC 403
  • K.B. Shukla & Ors. v. Union of India, (1979) 4 SCC 673
Logic / Jurisprudence / Authorities Relied Upon by the Court
  • Principle of contract novation/modification by fresh terms.
  • Clause 1.3 of NHM Transfer Guideline (May 26, 2022) allowing administrative transfers.
  • Absence of mala fide or arbitrariness in exercise of transfer power.
Facts as Summarised by the Court

Petitioners were engaged on 11-month renewable contracts (2006, 2018, 2021) as District Accounts Managers under NHM-RCH II. No initial transfer clause existed. In 2022 NHM issued transfer guidelines; in renewals, Clause 1.3 was incorporated. On June 25, 2025, petitioners were transferred under that clause. Some petitioners had earlier sought transfer or accepted it subject to monetary benefits. They challenged the transfer order by writ.

Citations
  • (2009) 15 SCC 178
  • (2003) 7 SCC 403
  • (1979) 4 SCC 673
  • AIR 1976 SC 1766
  • WPA 19243 of 2021 (Sanghamitra Ghosh)

Practical Impact

Category Impact
Binding On Calcutta High Court and all its subordinate courts
Persuasive For Other High Courts in India
Distinguishes Sanghamitra Ghosh v. State of West Bengal & Ors. (WPA 19243 of 2021)

What’s New / What Lawyers Should Note

  • Contract renewals can novate earlier terms and incorporate new conditions, including transfer clauses, which bind the employee once accepted.
  • NHM transfer guidelines are illustrative; only become enforceable when expressly integrated into the contract.
  • Representations accepting transfer subject to benefits constitute consent to the contractual clause.
  • Absent mala fide or arbitrariness, administrative transfers under a valid contractual term are immune from judicial interference.

Summary of Legal Reasoning

  1. Contract Modification/Novation: Fresh contracts or renewals incorporating new terms (e.g., transfer clause) modify or novate the original contractual relationship.
  2. Nature of NHM Guidelines: Clause 1.1 of NHM Human Resources Guidelines declares them purposive and suggestive; they lack binding force unless contractually adopted.
  3. Contractual Incorporation of Transfer Clause: Clause 1.3 of the May 26, 2022 transfer guideline was expressly incorporated into petitioners’ renewal letters (2017–2025), empowering administrative transfers at any time.
  4. Acceptance by Conduct: By executing renewals and submitting e-mail representations seeking monetary benefits for transfer, petitioners demonstrated acceptance of the transfer clause.
  5. Judicial Non-Interference: In absence of mala fide or arbitrariness, transfers under a valid contractual term are incidental to service and not subject to writ intervention.

Arguments by the Parties

Petitioners

  • Engagement was purely contractual for a fixed district post; no express or implied transfer term initially.
  • NHM guidelines permit transfers only in exceptional personal circumstances (spousal co-location, vacancies).
  • Contractual employees not in public service; transfer is not an incident of service.

Respondent (State)

  • Clause 1.3 of the May 26, 2022 NHM transfer guideline authorizes transfers on administrative grounds at any time.
  • Successive renewals incorporated the transfer clause; petitioners accepted by executing renewals.
  • Contractual employees derive rights solely from contract; no vested right against temporary posts.
  • No mala fide or arbitrariness; State’s administrative exigency justified the transfer.

Factual Background

Petitioners participated in NHM recruitment (2006, 2018, 2021) and were appointed as District Accounts Managers on 11-month renewable contracts without initial transfer terms. In May 2022 NHM issued transfer guidelines (Clause 1.3 empowering transfers). Successive renewals (notably August 2017 to March 2025) incorporated this clause. On June 25, 2025, a bulk transfer order was issued; petitioners filed writs challenging its validity and binding effect on purely contractual appointments.

Statutory Analysis

  • NHM Human Resources Guidelines (May 26, 2022)
    • Clause 1.1 defines guidelines as purposive and illustrative.
    • Clause 1.3 permits administrative transfers at any point.
  • Contract Law Principles
    • Fresh contracts or renewals can modify or novate original terms.
    • Incorporation of transfer clause into contract renders that clause enforceable.

Alert Indicators

  • ✔ Precedent Followed – Affirms established contract-law principles governing modifications and administrative transfer powers.

Citations

  • Rajendra Singh & Ors. v. State of U.P., (2009) 15 SCC 178
  • State of Rajasthan v. Anand Prakash Solanki, (2003) 7 SCC 403
  • K.B. Shukla & Ors. v. Union of India, (1979) 4 SCC 673
  • The Regional Manager & Ors. v. Pawan Kumar Dubey, AIR 1976 SC 1766
  • Sanghamitra Ghosh v. State of West Bengal & Ors., WPA 19243/2021 (Calcutta HC)

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