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2026 Supreme(Online)(CAT) 2964

CENTRAL ADMINISTRATIVE TRIBUNAL, BANGALORE BENCH, BENGALURU
S. Sujatha, J, Sanjiv Kumar, Member (A)
Laxman Mayappa Hosur – Appellant
Versus
Employees State Insurance Corporation (esic) – Respondent
ORIGINAL APPLICATION NO.170/00304/2025



Advocates:
For the Appellants/Petitioners: P. Kamalesan
For the Respondents: D. Basavaraja

Pay protection granted to an employee promoted via Limited Departmental Competitive Examination (LDCE) must be adjusted retrospectively if the pay level of the previous post is revised upwards by the government, as no distinction exists between DPC and LDCE for pay fixation under FR 22 (I) (a) (3).

Headnote:The applicant filed an application under Section 19 of the Administrative Tribunals Act, 1985, challenging the rejection of pay protection following a promotion from Lab Assistant to Lower Division Clerk (LDC). The applicant was promoted to Lab Assistant (Level 3) on 23.12.2017 and subsequently to LDC via Limited Departmental Competitive Examination (LDCE) on 01.01.2019. Following the 7th CPC recommendations, the pay scale for Lab Assistant was revised from Level 3 to Level 5 effective from 01.01.2016. The court found that since the applicant's pay was originally protected at Level 3 upon promotion to LDC, the retrospective revision to Level 5 must also be protected. The primary issue was whether pay protection is applicable to promotions obtained via LDCE and if the revised pay level (Level 5) should be protected retrospectively. The court reasoned that no discrimination should exist between DPC selection and LDCE selection in promotion while fixing pay as per FR 22 (I) (a) (3), stating that "the protection has to be given to the pay of the applicant at Level 5 including the arrears." OA stands allowed to the extent indicated above. No order as to costs.

Table of Content
1. application for pay protection and rival contentions regarding ldce promotion. (Para 1 , 2 , 3 , 4)
2. analysis of pay fixation and the impact of retrospective pay level revision. (Para 5 , 6 , 7)
3. equality of ldce and dpc selections for pay protection under fr 22. (Para 8 , 9)
4. quashing of impugned order and grant of pay protection and arrears. (Para 10)

O R D E R (ORAL)

PER: JUSTICE S. SUJATHA, MEMBER (J)

1. This application is filed by the applicant under Section 19 of the Administrative Tribunals Act, 1985 seeking the following reliefs:

“(A) Quash the letter No. 53.A.27.25.01.2024.Estt dated 12.12.2024 of ESIC, Regional Office Karnataka, Bangalore 560 023 at Annexure A8 issued by Respondent No. 2.

(B) Consequently, direct the respondents to revise the pay scale of Lab Asst from level 3 to level 5 of the applicant from 23.12.2017, there after protect the pay of applicant in the promoted post of LDC and grant all consequential benefits.

(C) Grant any other relief as deemed fit into the facts and circumstances of the case, in the interest of justice & equity.”

2. Briefly stated the facts as narrated by the applicant are that he was appointed as Nursing Orderly at ESIC Model Hospital, Rajajinagar, Bangalore with effect from 16.07.2019. The applicant was promoted to the cadre of Lab Assistant with Grade Pay of Rs. 2000/- from 23.12.2017 and accordingly his pay fixation order was issued. Pursuant to the applicant being selected in the Limited Departmental Competitive Examination (LDCE) for promotion to the post of Lower Division Clerk (LDC) held on 9th and 10th of June, 2018 for the vacancy year 2013-2014, his pay fixation order was issued in terms of Office Order dated 04.07.2019 by the ESIC Model Hospital, Rajajinagar, Bengaluru. The ESIC Headquarters, New Delhi vide office OM dated 05.10.2023 issued the proposed 7th CPC recommendation with effect from 01.01.2016 which was accepted by the Central Government on 18.09.2023, according to which, the pay scale of the Lab Assistant (Level 3) was designated as Junior Medical Laboratory Technologist with pay matrix Level 5. Accordingly, the applicant submitted the representation before the Respondent No. 2 requesting to grant pay protection on promotion from Lab Assistant to LDC in Level 5 which came to be rejected. Again, the applicant submitted a representation dated 24.03.2025 before the respondents requesting for reconsideration of the rejection of earlier representation and to sanction the arrears from 23.12.2017, but of no avail. Hence, this OA.

3. Learned counsel Shri P. Kamalesan representing the applicant submitted that the applicant was promoted to Lab Assistant from 23.12.2017. The 7th CPC recommended revision of pay scales of Lab Assistant from Level 3 to Level 5 and the same was accepted by the Central Government with effect from 01.01.2016. The ESIC implemented the revised pay scales for Lab Assistants from Level 3 to Level 5 from 01.01.2016 and paid the arrears of pay accordingly. The applicant was working as Lab Assistant from 23.12.2017 and got promotion as LDC from 01.01.2019. Accordingly, the applicant's pay from 01.01.2016 ought to have been fixed from Level 3 to Level 5 and thereafter the pay should have been protected after promotion to LDC. However, the Respondent No. 2 has rejected the claim of the applicant arbitrarily. Hence, reliefs claimed by the applicant deserves to be granted.

4. Detailed reply statement has been filed on behalf of the respondents. Learned counsel Shri D. Basavaraja representing the respondents supporting impugned order submitted that the applicant has preferred to switch over to ministerial cadre from paramedical stream by accepting the promotion to the post of LDC (Level 2), being aware that the pay level of LDC i.e., Level 2 is lower than Lab Assistant, Level 3. LDCE being a competitive examination, not a promotion through DPC within the same hierarchy, pay protection under FR 22 (I) (a) (3) or FR 15 (a

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