The Supreme Court has ruled that employees transferred on absorption to another department are entitled to retain their seniority from their previous department. The judgment, delivered on 3 January, clarified the application of Rule 27(a) of the Kerala State and Subordinate Service Rules (KS&SSR).
The decision stated that the rule’s proviso, which denies seniority to employees transferred on request, does not apply to transfers made by absorption due to administrative exigencies.
The case involved employees originally working in the Directorate of Health Services (DHS) of the Kerala government. Following a policy decision to abolish the dual control system in medical colleges, these employees were absorbed into the Directorate of Medical Education (DME). A dispute arose over seniority between the absorbed employees and the original employees of the DME.
Initially, a single judge bench of the Kerala High Court upheld the seniority of the absorbed employees. However, a Division Bench overturned this decision, arguing that the absorption was equivalent to a transfer on request. This interpretation was challenged in the Supreme Court.
The Supreme Court examined the nature of transfers under Rule 27(a) and its proviso. It distinguished between transfers made on request, which affect seniority, and those made through absorption due to administrative exigencies, which do not affect seniority. The Court emphasised that absorption involves integrating an employee into the new department as a constituent part under government policy.
The Court further clarified the difference between “option” and “request,” noting that the appellants had exercised an option for absorption as part of the government’s policy decision. This, it stated, was distinct from a personal request for transfer.
The Supreme Court set aside the Division Bench’s findings, ruling that the absorbed employees were entitled to retain their previous seniority. It directed the Kerala government to redraw the seniority list of DME employees in accordance with its judgment.
