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" 812. All reservations are not of the same nature. There are two types of reservations, which may, for the sake of convenience, be referred to as 'vertical reservations' and 'horizontal reservations'. The reservations in favour of Scheduled Castes, Scheduled Tribes and Other Backward Classes [(under Article 16(4)] may be called vertical reservations whereas reservations in favour of physically handicapped (under clause (1) of Article 16] can be referred to as horizontal reservations. Horizontal reservations cut across the vertical reservations - what is called interlocking reservations. To be more precise, suppose 3% of the vacancies are reserved in favour of physically handicapped persons; this would be a reservation relatable to clause (1) of Article 16. The persons selected against the quota will be placed in that quota by making necessary adjustments; similarly, if he belongs to open competition (OC) category, he will be placed in that category by making necessary adjustments. Even after providing for these horizontal reservations, the percentage of reservations in favour of backward class of citizens remains - and should remain - the same."

10. Similarly, the proper and correct method to fill up the open quota, vertical reservations and Special reservations such as reservations for women, physically handicapped etc., which are horizontal reservations, cutting across vertical reservations, were explained in Anil Kumar Gupta Vs. State of U.P. Reported in (1995) 5 SCC 173, wherein the Hon'ble Supreme Court has held as follows:

"The proper and correct course is to first fill up the Open Competition quota (50%) on the basis of merit; then fill up each of the social reservation quotas, i.e., S.C., S.T. and B.C; the third step would be to find out how many candidates belonging to special reservations have been selected on the above basis. If the quota fixed for horizontal reservations is already satisfied - in case it is an overall horizontal reservation - no further question arises. But if it is not so satisfied, the requisite number of special reservation candidates shall have to be taken and adjusted/accommodated against their respective social reservation categories by deleting the corresponding number of candidates therefrom. (If, however, it is a case of compartmentalized horizontal reservation, then the process of verification and adjustment/accommodation as stated above should be applied separately to each of the vertical reservations. In such a case, the reservation of fifteen percent in favour of special categories, overall, may be satisfied or may not be satisfied.) [Emphasis supplied]"

13. Indra Sawhney case and R.K.Sabharwal case (cited supra) came to be followed subsequently in Union of India Vs. Virpal Singh Chauhan reported in (1995) 6 SCC 684 and in Ritesh R.Sah Vs. Dr.Y.L.Yamul reported in (1996) 3 SCC 253. Eventually, a Bench of Coram of Three Hon'ble Judges in Rajesh Kumar Daria Vs. Rajasthan Public Service Commission reported in (2007) 8 SCC 785, considered the same issue, wherein, the judgments in Indra Sawhney case, R.K.Sabharwal case, Virpal Singh Chauhan case, Rajesh R.Sah case and Anil Kumar Gupta case (cited supra) have been extensively quoted. This judgment is a class by itself which clearly makes a demonstration as to how selection has to be made as against the open quota and the reserved quota for various reserved classes by applying the vertical reservation and special reservation for women, physically handicapped etc., by following horizontal reservation.

9. The second relates to the difference between the nature of vertical reservation and horizontal reservation. Social reservations in favour of SC, ST and OBC under Article 16(4) are 'vertical reservations'. Special reservations in favour of physically handicapped, women etc., under Articles 16(1) or 15(3) are 'horizontal reservations'. Where a vertical reservation is made in favour of a backward class under Article 16(4), the candidates belonging to such backward class, may compete for non-reserved posts and if they are appointed to the non-reserved posts on their own merit, their numbers will not be counted against the quota reserved for the respective backward class. Therefore, if the number of SC candidates, who by their own merit, get selected to open competition vacancies, equals or even exceeds the percentage of posts reserved for SC candidates, it cannot be said the reservation quota for SCs has been filled. The entire reservation quota will be intact and available in addition to those selected under Open Competition category. [Vide -Indira Sawhney (Supra), R.K.Sabharwal vs. State of Punjab (1995 (2) SCC 745), Union of India Vs. Virpal Singh Chauvan (1995 (6) SCC 684 and Ritesh R.Sah vs. Dr.Y.L.Yamul (1996 (3) SCC 253)]. But the aforesaid principle applicable to vertical (social) reservations will not apply to horizontal (special) reservations. Where a special reservation for women is provided within the social reservation for Scheduled Castes, the proper procedure is first to fill up the quota for scheduled castes in order of merit and then find out the number of candidates among them who belong to the special reservation group of 'Scheduled Castes-Women'. If the number of women in such list is equal to or more than the number of special reservation quota, then there is no need for further selection towards the special reservation quota. Only if there is any shortfall, the requisite number of scheduled caste women shall have to be taken by deleting the corresponding number of candidates from the bottom of the list relating to Scheduled Castes. To this extent, horizontal (special) reservation differs from vertical (social) reservation. Thus women selected on merit within the vertical reservation quota will be counted against the horizontal reservation for women. Let us illustrate by an example :