SK Nausad Rahaman & Ors. v. Union of India and Ors.
Background
Inspectors of Central Excise/Customs/GST who had been transferred between different administrative zones ("Cadre Controlling Authorities") under a long-standing practice called Inter-Commissionerate Transfers (ICTs) (often used to accommodate married couples working in different cities, employees with disabilities, or compassionate grounds) challenged a 2018 circular that withdrew the ICT facility altogether. The Kerala High Court upheld the withdrawal, holding that the 2016 Recruitment Rules envisaged each cadre as separate and did not provide for such transfers, so scrapping ICTs was not illegal. The affected employees appealed to the Supreme Court, arguing the policy failed to account for genuine hardship cases like spouses being posted far apart or employees with disabilities needing family support.
Decision Breakdown
The Supreme Court traced the history of ICT policy, including decades of government circulars specifically designed to help spouses in government service be posted together, and to accommodate persons with disabilities and compassionate cases. It reaffirmed that the right to family life and dignity is protected under Article 21, and that any government policy restricting such transfers must be a proportionate response: one that serves a legitimate aim, is suitable and necessary for that aim, and is properly balanced against individual rights, rather than an assumption-driven blanket rule. The Court accepted the government's stated concerns behind withdrawing ICTs, that they were being misused and were generating excessive litigation over cadre seniority, as legitimate administrative objectives, and therefore upheld the Kerala High Court's judgment allowing the 2018 circular to stand. However, it made clear that the withdrawal circular still permits case-by-case "loan basis" transfers for exceptional/compassionate circumstances, and directed the government to consider whether the policy should be specifically enhanced to better address spousal postings, disability, and compassionate transfers, while keeping any future policy anchored in constitutional values.
Lesson Learnt
Even when the government has a legitimate reason to tighten or withdraw an employee-friendly transfer policy, it cannot be completely blind to constitutionally protected concerns like family unity and the needs of persons with disabilities: such policies must be proportionate, and courts will push the executive to keep revisiting and refining them rather than treating administrative convenience as the only consideration.