MUKESH KAPOOR Vs. UNION OF INDIA

JUDGEMENT

(1.) In this writ petition the issue involved is whether the respondent no.2 Unit Trust of India Asset Management Company Ltd. Falls within the meaning of 'State ' under Article 12 of Constitution of India? If answer to this issue is yes, whether the respondent no.2 can be directed to frame transfer policy for its officers and employees? Further issue involved is when the constitution of respondent no.2 has changed, still whether the petitioners can claim protection of Sec. 6 of Union Trust of India (Transfer of undertaking and Repeal) Act 2002. There are various issues pending between the UTI AMC officers association and respondents no.2. But we are deciding this issue only in context of 'right of petitioners to insist for framing of transfer policy '. The present petitioners are the officers of respondent no.2. They were officers of erstwhile Unit Trust of India. Respondent no.2 was formed after bifurcation of erstwhile Unit Trust of India in the year 2002. After formation of respondent no.2, they have exercised the option of joining Respondent No.2.

(2.) Their grievance is even though assured the management of respondent no.2 have abruptly transferred them to various part of India without framing transfer policy. That is why they have challenged the officer order dtd. 1/10/2021 thereby transferring them. Before going into the contentious issue, it will be relevant to know the background of formation of respondent no.2. BACKGROUND

(3.) Unit Trust of India was created as per the provisions of Unit Trust of India Act 1963. It was statutory corporation. It has got the business of accepting the investment from the public in mutual funds. It has floated various schemes. However, the Government of India has decided to bifurcate the business, assets and liabilities of UTI into two separate entities called as 'specified company ' and 'specified undertaking '. Parliament has enacted Unit Trust of India (Transfer of Undertaking and Repeal) Act 2002. The main features of Repeal Act are as follow: --