The present subject matter relates to an engine with automatic transmission having an electrically operable clutch. The engine comprises an electrically operable clutch (139), a clutch disengaging member (150) having a first set of grooves (144), an electrically operable rotatable member (110) having a second set of grooves (118), a caging member (113) with one or more balls (114) disposed between the clutch disengaging member (150) and the rotatable member (110) wherein a preloaded retractable member (141) is provided between the rotatable member (110) and caging member (1i3) and disposed in close vicinity to a non-clutch portion (143) of the clutch disengaging member (150).. During the operation of manual disengagment of the clutch (139), the retractable merfiber - (141) maintains the contact between the caging member (113) and the non-clutch surface (142) of the clutch disengaging merfiber (150) and prevents disorientation of the cagingmember (113).
