CHAIRMAN & M.D., K.S.R.T.C. vs K.O. VARGHESE .

The Supreme Court upheld the decision of the Kerala High Court regarding the employment status of employees transferred from the Government to the Kerala State Road Transport Corporation (KSRTC) under the Road Transport Corporation Act, 1950. The Court clarified that employees absorbed into KSRTC are deemed to have vacated their positions in Government service and are entitled to benefits such as pension and gratuity as per the Kerala Service Rules. The ruling emphasized that the past services of these employees would count for promotion and other benefits, affirming their rights under the conditions of absorption.