M. D. SHUKLA & ORS. vs STATE OF GUJARAT & ORS.

The Supreme Court examined the applicability of Sections 115, 116, and 117 of the States Reorganisation Act, 1956, and Sections 81, 82, and 83 of the Bombay Reorganisation Act, 1960, concerning the regularisation of services of employees transferred to the Gujarat State. The Court held that the regularisation of the appellants' services did not constitute 'absorption' as per the Bombay Allocated Government Servants’ (Absorption, Seniority, Pay and Allowances) Rules, 1957, and thus upheld the High Court's decision. The ruling clarified the interpretation of 'absorption' in the context of service regularisation under the relevant statutes.