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2026 Supreme(Online)(CAT) 3889

CENTRAL ADMINISTRATIVE TRIBUNAL
Om Prakash VII, Judicial Member, Mohan Pyare, Administrative Member
Niranjan Kumar – Appellant
Versus
Union of India – Respondent
Original Application No.371 of 2020



Advocates:
For the Appellants/Petitioners: Shri Santosh Kumar Kushwaha
For the Respondents:Shri P.K. Pandey (Respondent nos. 1 to 4), Shri D.S. Shukla (Respondent no.5)

Notional pay revisions in prior PSU employment, effective before resignation and certified in last pay certificate, entitle protection and refixation in new Central Government post under FR 21/22, treating sanctioned notional pay as 'pay drawn'.

Headnote:(A) Fundamental Rules - FR 21(a)(i), FR 22 - Administrative Tribunals Act, 1985 - Section 19 - Pay protection on technical resignation from PSU to Central Government post via UPSC interview - Notional pay revision in previous department with retrospective effect prior to resignation, reflected in revised last pay certificate, entitles employee to pay fixation in new department at stage equal to such pay, despite being notional, as 'pay drawn' under FR 21(a)(i) refers to sanctioned pay; merger of IDA into basic pay per presidential directives qualifies as sanctioned emoluments classable as pay under FR 9(21)(a)(iii); prior pay protection granted on earlier revisions obligates refixation on latest revision effective pre-resignation. (Paras 4, 6, 12, 13)

(B) Pay fixation - Notional vs actual pay - Notional fixation for fitment (e.g., IDA merger @73.8% w.e.f. 01.01.2007, actual benefits w.e.f. 01.01.2018) impacts prospective benefits including new department pay protection if effective date precedes resignation; government O.M. clarifies pay may be fixed at same stage 'though not drawn'. (Paras 5, 12)

(C) DoPT O.M. dated 13.08.2020 - Pay protection extended to direct recruits from PSUs/autonomous bodies requiring experience, irrespective of selection mode (interview/open exam). (Para 8)

Facts of the case:
Applicant, ex-PSU employee, technically resigned on 26.12.2012 to join new department; pay initially protected per last pay certificate; subsequent PSU notional revisions (IDA scale upgrade w.e.f. 10.12.2012 and 5% DA merger w.e.f. 01.01.2007) led to revised last pay certificates (14.03.2017, 24.01.2019); requests for refixation rejected vide orders dated 19.03.2019, 08.04.2019 on ground of notional fixation inadmissible under FR.

Findings of Court:
Impugned orders quashed; directed revision of initial pay per latest LPC dated 24.01.2019 with consequential benefits w.e.f. 01.01.2018 within three months.

Issues: Whether pay protection applies to notional pay revisions in PSU effective pre-resignation; scope of 'pay drawn' under FR; entitlement irrespective of interview-based selection.

Ratio Decidendi: Notional pay sanctioned retrospectively qualifies for protection as it deems pay fixed at resignation; new department cannot deny refixation after prior acceptances; aligns with equity in attracting PSU talent.

Result: Original Application allowed.

Table of Content
1. applicant's employment history and pay revisions in mtnl. (Para 1 , 2 , 7)
2. entitlement to pay protection based on revised lpc. (Para 3 , 4 , 5 , 8)
3. notional pay revision does not qualify for refixation. (Para 6)
4. precedents support pay protection irrespective of selection mode. (Para 9 , 10 , 11)
5. notional pay effective prior to resignation qualifies for protection. (Para 12)
6. quash orders and revise pay per latest lpc. (Para 13 , 14)

ORDER

By Hon’ble Mr. Mohan Pyare, Member (A)

Present Original Application has been filed under Section 19 of the Administrative Tribunals Act, 1985, seeking the following relief:

“i) The Hon’ble Tribunal may graciously be pleased to quash the impugned orders dated 19.3.2019 and 08.04.2019 vide which request of the applicant regarding revision of initial pay on the basis of latest L.P.C. dated 24.01.2019, has been rejected and issue further order and direction to the respondent nos.2 and 3 to revise the initial pay of the applicant on the basis of Latest L.P.C. dated 24.01.2019, with its all consequential benefits, as flown earlier as per earlier L.P.C. with 18% interest on the financial arrears accrued thereafter.

ii) To issue any order, direction or further orders which this Hon’ble Court may deem fit and proper in the present facts and circumstances of this case.

iii) Cost of the legal expenses.”

2. Brief facts of this case are that the applicant was initially, provisionally selected for Trainee (Accounts) through campus interview at Institute of Chartered Accountants of India, New Delhi on 31.8.2002 vide Memo dated 24.11.2002 under the respondent no.5. Applicant had been appointed as Junior Accounts Officer (Probationer) in I.D.A. Scale of Rs. 10,750-300- 16,750/- applicable w.e.f. 10.12.2003 vide Memo/ Letter No.MTNL/Pers/1(96)/2002/II dated 08.03.2004. Government of India had issued O.M. dated 07.08.1989 relating to appointment by method of recruitment by selection through the U.P.S.C. and Pay Protection to such candidates of Public Sector Undertakings etc. were also allowed to them likewise of the Govt. employees and further notified the relevant OM on different points of time viz. 10.7.1998 and 30.3.2010. The applicant, being an employee of P.S.U. named M.T.N.L. appeared in the recruitment process for Deputy Director (Finance) in the Employees State Insurance Corporation, through interview by U.P.S.C. vide call letter for interview, dated 17.07.2012. The applicant was found successful in his interview and had been issued the offer of appointment by the office of respondent no.2 vide Memorandum dated 02.11.2012. Request of the applicant regarding resignation had been accepted and approved vide letter dated 10.12.2012 w.e.f. 26.12.2012. In pursuance of the aforesaid letter of approval for technical resignation, office of the respondent no.5 has further issued a letter for relieving him from his office w.e.f. 26.12.2012 (A/N) to join respondent no.2. By the said letter dated 18.12.2012, it has also been indicated therein that applicant had service of 10 years and 17 days. As per offer of appointment letter, applicant had joined the respondent no.2 as Deputy Director (Finance) Regional Office, Jaipur and respondents have also issued letter dated 27.11.2013 communicated through letter dated 18.12.2013 and informed that matter regarding fixation of pay and counting of previous service of applicant was pending due to pending clarification from the U.P.S.C. After getting clarification from the U.P.S.C., office of the respondent no.2 had issued letter dated 11.03.2014 and approved the fixation of pay of the applicant w.e.f. 27.12.2012 with date of next increment on 01.07.2013 on the basis of last pay certificate issued by the office of respondent no.5. Thereafter, while the applicant was working under the respondent no.2, office of respondent no.5 had issued a letter dated 04.03.2017 and upgraded the Industrial Dearness Allowances Scale (hereinafter called as I.D.A. Scale) from E

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