R. C. SHARMA vs THE CHIEF SECRETARY, GOVERNMENT OF MADHYAPRADESH, BHOPAL &

The Supreme Court held that the transfer of employees from State undertakings to a Corporation does not entitle them to dearness allowance at the same rate as State employees. The Court interpreted the conditions of transfer, specifically stating that while the transfer would not interrupt service, it did not imply entitlement to future benefits conferred by the State. The appeal was dismissed, affirming the High Court's decision that the employees were only entitled to benefits existing at the time of transfer, as per the conditions outlined in the transfer letter.