Service Law - Integration of States - Status of employees carried over to the new State. The appellant, formerly a District and Sessions Judge in Bikaner State (appointed 29 January 1948, grade Rs. 500-40-700), continued in service after Bikaner merged into the new State of Rajasthan (formed 7 April 1949 by Covenant). Article XVI(1) of the Covenant guaranteed continuance on conditions 'not less advantageous' than those of 1 November 1948, or reasonable compensation, or retirement on proportionate pension. After interim steps - a transfer order of 9 December 1949 describing him as District and Sessions Judge, increment orders (effective 23 March 1950) likewise describing him, and a provisional ad hoc posting as Civil and Additional Sessions Judge (Gazette, 25 May 1950) - he was substantively appointed Civil Judge (Group C, junior list No. 18) on 23 April 1951. Held (Bose J.): (i) on absorption/integration of a State, all prior service contracts automatically terminate and those who elect to serve, or are taken on, serve on such terms as the new State imposes (State of Madras v. K. M. Rajagopalan relied on; Virendra Singh v. State of U.P.; Remy v. The King; Nokes v. Doncaster Amalgamated Collieries referred to); (ii) the Covenant guaranteed only conditions not less advantageous than those of 1 November 1948, not the same post or better; (iii) a transfer order is not an appointment, and the descriptions in the transfer and increment orders were merely descriptive of transitional arrangements from which no determination to post him permanently in his old cadre can be inferred; (iv) all his previous postings in the new State were purely transitional and temporary and the Covenant guarantee was fulfilled, hence no reduction in rank arose and Article 311 was not attracted. Appeal by special leave (against the Rajasthan High Court judgment dated 5 September 1955 in Writ Petition No. 76 of 1954, which had declared the 23 April 1951 posting ad hoc and directed constitutional machinery for recruitment to the Rajasthan Judicial Service) dismissed with costs.