The Supreme Court upheld the decision of the Division Bench of the High Court of Kerala which held that any promotion of a transferred employee from Assistant Grade-II to Assistant Grade-I will not entitle the employee of any benefit of higher scale or even increment, which is applicable to the employees normally promoted for the reason that these special class of employees were already drawing salary of the higher post which in terms of the policy for inter-university transfer was protected, though they were placed at the bottom of the seniority at the entry level.

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The appellant was appointed as Assistant Grade-II in the University of Calicut on 04.05.1988. She was promoted as Assistant Grade-I on 21.12.1989. Thereafter, she was transferred to M.G. University on 04.02.1992 in terms of applicable guidelines for inter-university transfers. On 26.02.1993, she was promoted as Senior Grade Assistant and thereafter, on 03.03.1999 as Selection Grade Assistant. On 04.11.1999, the appellant applied for interuniversity transfer to Kerala University. As per the policy for inter-university transfer, the appellant was placed as the junior most Assistant in the entry cadre of Assistant Grade-II, which was the post on which she was appointed in the year 1988 in the University of Calicut. Her pay was fixed on the promotional post. However, on an audit objection raised, the same was withdrawn. A writ petition was filed which was allowed by the Single Bench. However, in appeal filed by the State, the order was reversed by the Division Bench of the High Court, which is under challenge in the present appeal.

The relevant Statute No.14A of Chapter 4 of Kerala University First Statutes applicable for inter-university transfer is extracted below:

“14A. Posting of employees on transfer from other Universities: The Syndicate may, on request from the employees concerned, sanction, posting of employees on transfer from other Universities in the State subject to the following conditions:

(3) A person transferred from another University shall take his rank below the junior-most in the entry grade of the category concerned. (eg. A Senior Grade Assistant or Assistant Grade I if transferred shall be appointed as Junior most Assistant Grade II).

(6) The person transferred shall be entitled to protection from drop of emoluments. His pay on such appointment shall be fixed at the minimum of the scale of pay he was drawing in the parent University, is less than minimum. In case he was drawing under the parent University pay above the minimum and equal to a stage in the scale of pay of the post in this University service, his pay will be fixed at that stage and if the pay he was drawing under his parent University is not a stage in the scale of pay of the post in this University service, it will be fixed at the, next lower stage, the difference being treated as personal pay to be absorbed in future increases of pay.” 

All the appellants who were given the benefits have retired from service and recoveries were sought to be made from them though they were not at fault in grant of those benefits at the time of promotion. The court referring to its Judgment in State of Punjab and Others v. Rafiq Masih (White Washter) & Ors. (1 (2015) 4 SCC 334) directed that no recovery of the amount already paid to them be effected. However, their pension can be refixed considering the emoluments to which the appellants were entitled at the time of their retirement in accordance with the rules.

Civil appeal NO. 8716 OF 2012: Smt. Sasikala Devi. P Vs The State of Kerala & Anr.