(7)Whenever an employee belonging to a common cadre is posted or transferred to an institution, the managing committee or, as the case may be, the governing body of that institution shall be bound to employ him in the service of the institution and to pay all amounts due to such employee on account of his pay, allowances and other dues from out of its fund or from the aid received, directly or otherwise, from the State Government, and he shall be deemed to be an employee of such institution for all purposes.