SANJIV KHANNA, J.

The Union of India, the Commissioner of Police, and four others in this writ petition impugn the order dated 23rd May, 2016 passed by the Principal Bench of the Central Administrative Tribunal (Tribunal, for short) in OA No. 1288/2014 holding that the respondents, 17 in number, were entitled to grant of benefit of third financial upgradation under the Modified Assured Career Progression Scheme (MACP Scheme, for short).

2. The respondents were appointed as Head Constable (Ministerial) in the Delhi Police on different dates in 1984, 1985 and 1986. They were promoted as Assistant Sub-Inspector (Ministerial) again on different dates. After the introduction of the MACP Scheme, the respondents were granted second financial upgradation under the said scheme with effect from 1st September 2008. Grant of second financial upgradation is not challenged and disputed. The respondents were thereafter granted the third financial upgradation once they had completed 20 years of regular service from the date of first promotion, though they had not completed 30 years of service from the date of direct entry. Grant of the third financial upgradation was withdrawn by the petitioners vide order dated 10th March, 2014. The respondents challenged this withdrawal in OA No. 1288/2014, which as recorded above, has been allowed by the impugned order.

3. The petitioners dispute the respondents' entitlement to the third financial upgradation under the MACP Scheme contending that the third financial upgradation could only be granted after completion of 30 years of overall service in the regular grade from the date of initial appointment and not after 20 years of service from the date of first promotion as was the case and contention of the respondents. We proceed to examine the said argument.

4. The MACP Scheme was introduced for the Central Government Civilian Employees, except organized Group A services vide Office Memorandum No. 35034/3/2008-Estt.(D) dated 19th May, 2009. The Scheme was operational with effect from 1st September, 2008. Paragraphs 1, 9, 22, and the illustrations given in paragraph 28 of the MACP Scheme are relevant and are, therefore, reproduced below:-

“1. There shall be three financial upgradations under the MACPS, counted from the direct entry grade on completion of 10, 20 and 30 years service respectively. Financial upgradation under the Scheme will be admissible whenever a person has spent 10 years continuously in the same grade-pay.

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9. 'Regular service' for the purposes of the MACPS shall commence from the date of joining of a post in direct entry grade on a regular basis either on direct recruitment basis or on absorption/re-employment basis. Service rendered on adhoc/contract basis before regular appointment on pre-appointment training shall not be taken into reckoning. However, past continuous regular service in another Government Department in a post carrying same grade pay prior to regular appointment in a new Department, without a break, shall also be counted towards qualifying regular service for the purposes of MACPS only (and not for the regular promotions). However, benefits under the MACPS in such cases shall not be considered till the satisfactory completion of the probation period in the new post.

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22. If Group "A" Government employee, who was not covered under the ACP Scheme has now become entitled to say third financial upgradation directly, having completed 30 year's regular service, his pay shall be fixed successively in next three immediate higher grade pays in the hierarchy of revised pay-bands and grade pays allowing the benefit of 3% pay fixation at every stage. Pay of persons becoming eligible for second financial upgradation may also be fixed accordingly.

28. Illustrations

A (i) lf a Government servant (LDC) in PB-l in the Grade Pay of Rs.1900 gets his first regular promotion