In Brief
The Kerala Transport Development Finance Corporation appointed the respondents as Assistant Managers in 2000 on contract, later regularizing them in 2006. The Government cancelled this regularization in 2007 without notice, and terminated the employees. The High Court quashed the termination and directed reinstatement with continuity of service (but no salary arrears) from 2007. The issue concerned whether this period should count for seniority and promotion. The Supreme Court held that continuity of service means the period cannot be excluded from seniority calculations under the Service Rules, though no arrears are due. The respondents rank above a colleague appointed in 2008 based on their original 2000 appointment date, and promotions shall proceed per Service Rules."
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