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2025 Supreme(Online)(CAT) 8473

CENTRAL ADMINISTRATIVE TRIBUNAL
Shri Manish Garg, J, Shri Rajinder Kashyap, A
Sh. Sunil Kumar Gaur MCM (Elect.) – Appellant
Versus
Union of India, through Secretary, Ministry of Defence – Respondent
O.A. NO.947 OF 2022 | O.A. No.948 of 2022



Advocates:
For the Appellants/Petitioners: Shri L.D. Dobhal
For the Respondents: Shri T.C. Aggarwal

The MACP Scheme entitles employees to financial upgradation to the immediate next higher Grade Pay after 30 years of service, independent of promotional hierarchy.

Headnote:(A) Administrative Tribunals Act, 1985 - Section 19 - Modified Assured Career Progression Scheme (MACP) - Entitlement for financial upgradation - Applicants, after completing 30 years of service, claimed the 3rd MACP benefit with Grade Pay of Rs.4600/- instead of a mere increment of 3% in their existing Grade Pay of Rs.4200/-. The Tribunal held that MACP Scheme provides for placement in the immediate next higher Grade Pay upon completion of specified years of service. (Paras 8, 10, 18)

(B) Legal principles - The MACP Scheme is intended to provide financial relief against stagnation and ensures that employees receive benefits without reference to promotional hierarchy. The Supreme Court's ruling in M.V. Mohanan Nair reinforces that benefits under MACP cannot exceed those available through normal promotion pathways. (Paras 11, 12, 14)

Facts of the case:
The applicants, having served for 30 years, were granted 1st and 2nd financial upgradations under the ACP Scheme but were denied the 3rd MACP benefit at the higher Grade Pay. They argued that the MACP Scheme entitles them to the next higher Grade Pay.

Findings of Court:
The Tribunal concluded that the applicants are entitled to the 3rd MACP benefit with Grade Pay of Rs.4600/-, as the MACP Scheme does not restrict benefits to those of the next promotional post.

Issues: Whether the applicants are entitled to the Grade Pay of Rs.4600/- under the MACP Scheme or merely an increment in their existing Grade Pay of Rs.4200/-.

Ratio Decidendi: The Tribunal emphasized that the MACP Scheme aims to provide financial upgradation in the immediate next higher Grade Pay, independent of promotional hierarchy, and concluded that the applicants are entitled to the relief sought.

Result: Both Original Applications allowed, directing the respondents to grant the 3rd MACP benefit with Grade Pay of Rs.4600/- within ten weeks.

Table of Content
1. introduction of the case and parties involved. (Para 1 , 2 , 3)
2. background on the applicant's service and entitlement. (Para 4)
3. arguments presented by the applicant's counsel regarding macp. (Para 5)
4. counterarguments by the respondents regarding macp and previous upgradations. (Para 6)
5. court's analysis of the macp scheme. (Para 7 , 8 , 9)
6. judicial precedents and interpretations of the macp scheme. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16)
7. court's decision on the entitlement of the applicant. (Para 17)
8. final orders and directions issued by the court. (Para 18 , 19 , 20 , 21)

ORDER

Hon’ble Shri Rajinder Kashyap, M (A) :

Since the issue involved in both the OAs are identical and the reliefs claimed are also same based on the similar grounds and with the consent of the learned counsel for the parties, we proceed to dispose of both the OAs by this common order.

2. For the convenience of writing of this Order, the OA No.947 of 2022 is taken as a lead case.

3. By filing the OA No.947/2022 under Section 19 of the Administrative Tribunals Act, 1985, the applicant has prayed for the following reliefs:-

“A.- To issue an order or direction to the respondents to grant the applicant the 3rd MACP from the date when he became entitled for the same along with pay and allowances and back arrears due to the applicant with 12 percent interest.

B. To issue any other order or direction which this Hon‟ble Tribunal may deem fit and proper in the circumstances of the case.

C.- To award the cost of the application in favour of the applicant.”

4. Brief facts of the case leading to filing of this OA are that the applicant was initially appointed under the respondents as Switch Board Attendant on 15.1.1983. After completion of 12 years, the applicant was granted 1st financial upgradation under the Assured Career Progression Scheme (in short „ACP Scheme‟), which was introduced by the Central Government, in the pay scale of Rs. 4000-6000/- on 9.8.1999 and upon completion of 24 years of regular service, he was granted 2nd financial upgradation under the ACP Scheme in the pay scale of Rs.5000-8000/- (pre-revised) on 2.8.2007.

4.1 The Central Govt. has considered the recommendations of the Sixth CPC for introduction of a Modified Assured Progression Scheme (in short „MACP Scheme‟) and had accepted the same with further modification to grant three financial upgradations under the said MACP Scheme at intervals of 10, 20 and 30 years of continuous regular service vide OM dated 19.5.2009 (Annexure No.8) and the same was give effect to w.e.f. 1.9.2008. The revised pay scale of Rs.5000- 8000/- is the pay scale in the Pay Band of Rs. 9300-34800 with Grade Pay of Rs.4200/- and as such the applicant on completion of 30 years of regular service is entitled for grant of 3rd financial upgradation under the said MACP Scheme in a Grade Pay of Rs.4600/-.

5. Learned counsel for the applicant has argued that the grievance of the applicant is that on completion of 30 years of service, the applicant ought to have been granted the Grade Pay of Rs.4600/- in the corresponding Pay Band, consequent upon grant of 3rd MACP Scheme financial benefits. However, the same has not been granted to the applicant, instead the respondents while granting the 3rd MACP to the applicant had increased the pay of the applicant by granting 3% increment, which is not in consonance with the decision of the Hon‟ble Supreme Court in the case of Union of India and others vs. M.V. Mohanan Nair, reported in AIR 2020 SC 5107, in which, the Hon‟ble Supreme Court held that “MACP Scheme envisages merely placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay”. Thus the said MACP Scheme is intended to provide relief against stagnation and the said Scheme provides three financial upgradations in next Grade Pay to an employee, who has completed 10, 20 and 30 years of regular service in the same post, if not granted promotion(s).

5.1 Lear

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