STATE OF HARYANA vs DEEPAK SOOD .

The Supreme Court ruled that surplus employees of the Municipal Committee, Panipat, absorbed into the State of Haryana are entitled to all benefits except seniority. The Court clarified that while their past service is counted for pay and pensionary benefits, it does not contribute to seniority in the new department. The decision was based on the terms of their absorption which explicitly stated that they would join as junior-most employees without seniority benefits, thus upholding the government's policy on the matter.