IMPORTANT POINTS
(1) Benefits flowing from ACP & MACP Schemes are incentives and are not part of pay.
(2) MACPS is a matter of Government policy pursuant to recommendations made by Pay Commission.
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JUDGMENT :

L. NAGESWARA RAO, J.

1. The short question that falls for consideration of this Court in these Appeals is whether the Government of India is justified in implementing the Modified Assured Career Progression Scheme (for short, ‘MACPS’) for civilian employees of the Central Government in Groups ‘A’, ‘B’, ‘C’, ‘D’ and officers in the All India Services, Chairpersons, Members of the Regulatory Bodies (except the Reserve Bank of India) with effect from 01.09.2008 and not from 01.01.2006. For the sake of convenience, we are referring to the facts of Civil Appeal arising out of SLP (C) No.15572 of 2019.

2. The Respondent was appointed as Deputy Director in the Bureau of Industrial Costs and Prices in Ministry of Industry, Department of Industrial Policy and Promotion which was subsequently merged with Tariff Commission. He was promoted as Director in grade pay of Rs.3700-125-4700-50-5000 by an order dated 09.02.1994. Certain recommendations were made by the 5th Central Pay Commission relating to the Assured Career Progression Scheme (for short, ‘ACPS’) for Central Government civilian employees in all the Ministries/Departments which came into force w.e.f. 01.01.1996. Department of Personnel and Training by a memorandum dated 09.08.1999 directed implementation of the recommendations of the 5th Pay Commission regarding ACPS in respect of Group ‘D’, ‘C’ and ‘B’ officers and those holding isolated posts in Group ‘A’. The relevant conditions that were laid down for grant of benefits under the ACPS are as under:

1. The ACP Scheme envisages merely placement in the higher pay-scale/grant of financial benefits (through financial upgradation) only to the Government servant concerned on personal basis and shall therefore, neither amount to functional/regular promotion nor would require creation of new posts for the purpose.

2. The highest pay-scale upto which the financial upgradation under the Scheme was available was be Rs.14,300-18,300. Beyond this level, there shall be no financial upgradation and higher posts were filled strictly on vacancy based promotions.

4. The first financial upgradation under the ACP Scheme shall be allowed after 12 years of regular service and the second financial upgradation after 12 years of regular service from the date of the first financial upgradation subject to fulfillment of prescribed conditions. In other words, if the first upgradation gets postponed on account of the employee not found fit or due to departmental proceedings, etc. this would have consequential effect on the second upgradation which would also get deferred accordingly.

5.1. Two financial upgradation under the ACP Scheme in the entire Government service career of an employee shall be counted against regular promotions (including in-situ promotion and fast-track promotions availed through limited Departmental Competitive Examination) availed from the grade in which an employee was appointed as a direct recruit. This shall mean that two financial upgradation under the ACP Scheme shall be available only if no regular promotions during the prescribed periods (12 and 24 years) have been availed by the employee if an employee has already got one regular promotion he shall qualify for second financial upgradation only on completion of 24 years of regular service under the In case two prior promotions on regular basis have already been received by an employee, no benefit under the ACP Scheme shall accrue to him.

In respect of Organized Group 'A' services, the Government has provided non-functional financial upgradation for the officers in PB-3 and PB-4 who are senior by two years or more to IAS officers (in particular grade) but have not so far been promoted to that particular grade because of lack of promotional avenues in Tariff Commission.

In respect of General Civil Service Group 'A' officers, whether holding isolated post or not {and also for Group 'B' & 'C' employees), the Government has provided financial upgradation by way of extending MAC