Summary
Employees reinstated with continuity after cancellation of regularisation claimed seniority and pay fixation accounting for their enforced absence. The Court maintained their seniority over a later appointee, while clarifying that the earlier denial of monetary benefits excluded salary arrears for 2007–2012. It also directed that the next promotion, to Chief Manager, be governed by the applicable service rules rather than treated as automatic.
Issues
- What effect the earlier reinstatement order with continuity but without monetary benefits had on pay and seniority.
- Whether the later appointee could claim seniority based on the others’ absence and alleged failure to satisfy residency requirements.
Provisions considered
- Rule 18(a) and proviso, Kerala Transport Development Finance Corporation Service RulesSeniority followed the first appointment to the relevant service, class, category or grade, read with the binding order preserving continuity; the proviso addressed direct appointees’ ranked list. (¶ 21-23)
Held
- Notional pay fixation accounting for the period out of service was consistent with the earlier reinstatement judgment. Payment of salary arrears for that period was not: the prior order had expressly denied monetary benefits and the employees disclaimed those arrears. (¶¶ 14-16, 24)
- Quashing the cancellation of regularisation and restoring service with continuity required giving effect to that continuity in seniority. The later appointee could not gain priority merely because the respondents had been kept out of service by the termination subsequently set aside. (¶ 21-23)
- The residency objection did not justify disturbing seniority in these circumstances. The respondents’ existing promotions were not challenged, and the later appointee had himself received promotions by counting service in the Assistant Manager post rather than actual service in each intermediate post. (¶ 22-23)
- The remaining High Court directions were maintained, subject to exclusion of salary arrears for the 2007–2012 absence and clarification that promotion from Manager to Chief Manager must occur under the applicable service rules and regulations. The appeals were disposed of on those terms. (¶ 23-25)
Result
Appeals disposed of with clarification excluding salary arrears for the period out of service in 2007–2012. Remaining directions maintained; Chief Manager promotion to follow applicable service rules and regulations.