The benefit of pay protection which was earlier available only to Government Servants was extended to the candidates working in Public Sector Undertakings//Universities/Semi-Govt Institutions/Autonomous Bodies etc who are appointed as direct recruits on selection through a properly constituted agency by Government of India OM No. 12/1/88 Estt.(pay-I) dated 7.8.1989(Copy attached).This was done in order to draw talent from PSUs etc.The conditions for eligibility of this benefits are
1.Appointments should be as direct recruits.
2.It should be by selection.
3.Selection should have been done by a properly constituted agency
Further clarification regarding the eligibility of the candidates seeking pay protection was given by Government of India OM No. 12/1/96-Estt. (Pay-I) dated 10.7.1998(Copy Attached).This circular further added two more eligibility conditions which are
1.Candidates should have completed the period of probation successfully in his parent
organization.
2.Selection should be through interview and not through an Open Competitive Examination.
OM No. 12/1/96-Estt. (Pay-I) purported to exclude candidates selected through open competitive examination and restricted the benefit to selection through interview only.
This issue was examined by the Delhi High Court in the Sanjog Kapoor vs Union Of India And Ors (Copy Attached). and the Delhi High Court on 20 April, 2007 held that the distinction sought to be drawn between candidates selected through interview and those selected through open competitive examination is sans rationale justification. Protecting the pay of one and not protecting the pay of the other set of candidates is completely arbitrary and illogical. Encouraging employees of PSUs to sit for such examination which is highly competitive is in line with the purpose behind the OM of 1989 of attracting the best talent. Even assuming that for the purposes of pay protection, the distinction between selection through interview and selection through open competitive examination does not hold a rational nexus when the Open Competitive Examination also comprises a comprehensive interview. Therefore denial of pay protection benefit to candidates coming through open competitive examination is unjustified and illegal.
Now in view of Government of India OM No. 12/1/88 Estt.(pay-I) dated 7.8.1989, Government of India OM No. 12/1/96-Estt. (Pay-I) dated 10.7.1998 and the Delhi High Court judgement in Sanjog Kapoor vs Union Of India And Ors dated 20 April, 2007 Candidates who join Govt Services on the bases of their success in Combined Civil Service Examination or Combined Engineering Service Examination conducted by UPSC (Recruited as 'Direct Recruits' on selection through a 'properly constituted agency' wiz UPSC by method of recruitment by 'Selection' through an 'Open Competitive Examination') are eligible for the benefit of pay protection???
