Madras High Court· 18 August 2026

Where the Government takes over the administration of an institution, does the takeover by itself absorb its employees into Government service?

Dr.M.Rajendran v. Govt. of Tamil Nadu

WP.1752/2022 · 2026:MHC:3418 · W.P.No.1752 of 2022
Coram: Justice C.Kumarappan

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Answer

No. Absorption must be separately provided for. Government Orders that deal only with sharing of seats, with the takeover of movable and immovable properties and with sanction of funds contain no provision for absorption of the employees, and until an absorption order is made the employee continues to belong to his earlier department.

Headnote

General Provident Fund (Tamil Nadu) Rules — r.32-A — Tamil Nadu Pension Rules — Pension on takeover of an institution — Absorption — Judicial review — General Provident Fund (Tamil Nadu) Rules — r.32-A — Transfer of provident fund accumulation — Not a source of pension — Held: Rule 32-A provides only for transfer of provident fund accumulation when an employee enters Government service; it does not deal with entitlement to pension. (¶9) Tamil Nadu Pension Rules — Pensionable establishment — Absorption on the date of retirement — Held further: Pension is admissible only to a person appointed to a pensionable establishment; absent a Government Order absorbing him before retirement, a takeover confers no pensionary right. Writ Petition dismissed. (¶8, 9)

In the Court's own words

Paragraph 7In support of his claim, the petitioner relies upon the Government Orders issued for taking over the IRT Perundurai Medical College and Hospital, viz., G.O.Ms.No.308, Transport (B1) Department, dated 24.10.2018, G.O.Ms.No.57, Health and Family Welfare (MCA-2) Department, dated 28.02.2019, and G.O.Ms.No.321, Health and Family Welfare (E2) Department, dated 26.07.2019. Though the Government, under G.O.Ms.No.308, took over the control of the IRT Perundurai Medical College and Hospital, the said Government Order deals with sharing of seats in medical admissions. G.O.Ms.No.57, dated 28.02.2019, deals with the takeover of movable and immovable properties, whereas G.O.Ms.No.321, dated 26.07.2019, deals with sanction of funds towards salary and non-salary expenditure. On a careful reading of the aforesaid three Government Orders, this Court is unable to find any provision providing for absorption of the employees who had served in the erstwhile Medical College.

Paragraph 8It is an admitted fact that the petitioner retired from service on 31.12.2019. As per the counter-affidavit, G.O.Ms.No.70, Health and Family Welfare (A1) Department, dated 26.02.2020, provided for the absorption of 317 posts from the Transport Department into the Health Department. Therefore, on the date of his retirement, the petitioner continued to be an employee of the Transport Department and had not been absorbed as an employee of the Health Department.

Acts & Sections

r.32-A General Provident Fund (Tamil Nadu) RulesTamil Nadu Pension Rules

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Also decided in this judgment

Does Rule 32-A of the General Provident Fund (Tamil Nadu) Rules, which permits transfer of provident fund accumulation on entry into Government service, confer any entitlement to pension?Under the Tamil Nadu Pension Rules, to whom is pension admissible?

Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Madras High Court. Corrections