2025 Supreme(Ker) 399
HIGH COURT OF KERALA
VIJU ABRAHAM, J
Shaji T. S/o Late Thankappan - Appellant
Versus
Union Of India - Respondent
WP(C) NO. 39819 OF 2022
Decided On : 23-01-2025
Important Points
Retrospective application of the MACP Scheme does not infringe upon the vested rights of employees under the ACP Scheme, as eligibility does not equate to entitlement.
Subject
Administrative Law - Employment Law
Act Referred
Modified Assured Career Progression Scheme
Headnote
(A) Assured Career Progression Scheme - Office Memorandum No. 35034/1/97-Rstt(D) dated 09.08.1999 - Modified Assured Career Progression Scheme - Office Memorandum No. 35034/3/2008-Estt(D) dated 19.05.2009 - Petitioners, retired employees, challenged the denial of 2nd financial upgradation under the ACP Scheme, claiming the MACP Scheme's retrospective effect deprived them of their vested rights. (Para 2 )
(B) Vested Rights - The court reiterated that retrospective application of new schemes should not take away vested rights previously established under older schemes. (Para 5 )
(C) Judicial Precedents - The court relied on previous judgments that determined the rights of employees under the ACP and MACP Schemes, emphasizing the distinction between eligibility and entitlement. (Paras 6 , 14 )
(D) Final Decision - The court dismissed the writ petition, affirming that the petitioners were not entitled to the relief sought and directed the respondents to extend MACP benefits if applicable. (Paras 15 , 16 )
Advocate Appeared:
For the Appellant : U.BALAGANGADHARAN, R.PRADEEP KUMAR
For the Respondent: BY ADV MINI GOPINATH –CGC, ADV.T.C.KRISHNA, SCGC
JUDGMENT :
The above writ petition is filed challenging Exts.P7 order and for a direction to the 3rd respondent to grant 2nd financial upgradation under ACPS to the petitioners in the scale of PB 2 with grade pay of Rs.4,200/- with effect from the date of completion of 24 years.
2. Petitioners who are retired from General Reserve Engineer Force (GREF) during 2016-2022, have approached this Court aggrieved by the anomaly that was crept in the grant of 2nd financial upgradation to the next grade pay in MACP scheme instead of scale of pay attached to the next higher post in the hierarchy under Assured Career Progression Scheme (hereinafter referred to as ‘ACP Scheme’). The service particulars of the petitioners given in the tabular form in the writ petition as Schedule A are as follows:
| S N o. | Petitioner | Date of Joining | 1st ACP | Date of completion of 24 years | Date of Retirement |
| 1 | Shaji T | 07.11.84 | 09.08.99 | 07.11.2008 | 31.07.2022 |
| 2 | Varghese P M | 19.09.84 | 09.08.99 | 19.09.2008 | 31.05.2019 |
| 3 | M.K.Vamanan | 25.09.84 | 09.08.99 | 25.09.2008 | 31.12.2019 |
| 4 | J Baburajan | 11.10.84 | 09.08.99 | 11.10.2008 | 01.09.2021 |
| 5 | Soman V | 07.11.84 | 09.08.99 | 07.11.2008 | 30.04.2020 |
| 6 | Vinaya Kumar K | 07.11.84 | 09.08.99 | 07.11.2008 | 30.04.2022 |
| 7 | M Kamalasanan | 07.11.84 | 09.08.99 | 07.11.2008 | 01.03.2016 |
| 8 | Mohanan K | 10.11.84 | 09.08.99 | 10.11.2008 | 31.07.2022 |
| 9 | T.Surendran | 16.11.84 | 09.08.99 | 16.11.2008 | 30.09.2019 |
| 10 | Gopakumaran K P | 16.11.84 | 09.08.99 | 16.11.2008 | 01.05.2016 |
| 11 | Divakaran K E | 11.01.85 | 09.08.99 | 11.01.2009 | 30.04.2019 |
| 12 | Pavithran A | 18.01.85 | 09.08.99 | 18.01.2009 | 01.10.2018 |
| 13 | K Sudhakaran | 01.05.85 | 09.08.99 | 01.05.2009 | 31.05.2022 |
| 14 | Reji Kumar | 11.10.84 | 09.08.99 | 11.10.2008 | 31.05.2021 |
The Government introduced Ext.P1 ACP Scheme as per OM No.35034/1/97-Rstt(D) dated 09.08.1999 inter alia providing that the employees who are stagnated are eligible for two financial upgradation at the interval of 12 and 24 years. Ext.P1 scheme specifically provided under paragraph 7 that financial upgradation is granted to next higher grade in accordance with the existing hierarchy in a cadre/category of post without creating new post for the purpose. The scheme further provided that financial upgradation under ACP Scheme shall be purely personal to the employee and shall have no relevance in his seniority position. It is the case of the petitioners that they were given 1st financial upgradation under Ext.P1 ACP Scheme and the petitioners who were in the scale of pay of LDC which carried a scale of pay of Rs.3050-4590 as per 5th CPC were given scale of pay of Rs.4000-6000 attached to the post of UDC. When the 6th pay commission regime came into force which was introduced with effect from 01.01.2006 a pay band system was introduced corresponding to the pre-existing scale of pay. While so the petitioners have completed 24 years of service and they become eligible for the 2nd financial upgradation under Ext.P1 scheme and the details of date of completion of 24 years of service of the petitioners are detailed in Schedule C in the writ petition, which is extracted below:
| S N o. | Petitioners | Date of completion of 24 years |
| 1 | Shaji T | 07.11.2008 |
| 2 | Varghese P M | 19.09.2008 |
| 3 | M.K.Vamanan | 25.09.2008 |
| 4 | J Baburajan | 11.10.2008 |
| 5 | Soman V | 07.11.2008 |
| 6 | Vinaya Kumar K | 07.11.2008 |
| 7 | M Kamalasanan | 07.11.2008 |
| 8 | Mohanan K | 10.11.2008 |
| 9 | T.Surendran | 16.11.2008 |
| 10 | Gopakumaran K P | 16.11.2008 |
| 11 | Divakaran K E | 11.01.2009 |
| 12 | Pavithran A | 18.01.2009 |
| 13 | K Sudhakaran | 01.05.2009 |
| 14 | Reji Kumar | 11.10.2008 |
While so the Government of India introduced Ext.P2 Modified Assured Career Progression Scheme (hereinafter referred to as ‘MACP Scheme’) as per OM No.35034/3/2008-Estt(D) dated 19.05.2009. As per the provisions of the MACP Scheme appended to the abovesaid Office Memorandum financial upgradation are admissible when a person spent 10 years continuously in the same grade pay and the scheme envisages only placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay as per CCS (Revised Pay) Rules, 2008. It is the contention of the petitioners that as per the ACP Scheme financial upgradation is given to the scale of pay attached to t