Prohibition Of Absorption Into Public Service :-

1[(i)] Notwithstanding anything contained in any contract or agreement or any judgment, decree or order of any Court, Tribunal or any other Authority or any order or proceedings of the State Government, or any officer of the State Government, no employee of a Public Sector Undertaking shall be or be deemed to be entitled to absorption into public service from the date of commencement of this Act and accordingly :--

1. (a) no suit, or other proceeding shall be instituted, maintained or continued in any Court, Tribunal or any other Authority against the State Government or any person or other Authority whosoever for such appointment or absorption into public service; and
2. (b) no Court or Tribunal shall enforce any decree or other order directing such appointment or absorption. 2[(ii) An employee who was earlier in the service of a Public Sector Undertaking and who has availed of Voluntary Retirement Scheme referred to in Section 4, shall be debarred from absorption, in any manner whatsoever, into Public Service, notwithstanding, that he is eligible for appointment to such post in every respect or otherwise : Provided that the Government shall have an option, in exceptional cases to consider any employee of a Public Sector Undertaking having outstanding merit and qualifications for absorption in Public Service, if such employee has not availed of Voluntary Retirement Scheme.] Explanation :-- For the purpose of this Section, the expression Public Service means, services whether on regular salary, wages, retainer or remuneration or on contract of any kind for any duration in any establishment of,-
   • (i) the State Government;
   • (ii) a Local Authority;
   • (iii) a Corporation or undertaking wholly owned or controlled by the State Government;
   • (iv) a body established under any law made by the Legislature of the State whether incorporated or not, including a University. 3[x x x] 1 Re-numbered by M.P. Act No. 20 of 2003. 2 Inserted by M.P. Act No. 20 of 2003. 3 Omitted by M.P. Act No. 20 of 2003.