Withdrawal of benefits under the MACP Scheme without justifiable cause post-retirement violates principles of natural justice.

ORDER

Delivered by Justice Rajiv Joshi, Member (Judicial)

Heard Shri Jaswant Singh, learned counsel for the applicant and Shri Mahendra Prasad Mishra, learned counsel for the respondents.

2. The instant Original Application filed by the applicant for the following main relief(s):-

“(i) This Hon'ble Tribunal may be pleased to direct the respondents to grant the benefits of 3rd MACP w.e.f. 06.12.2012.

(ii) This Hon'ble Tribunal may be pleased to direct the respondents to grant the benefits of Non-Functional Grade (NFG) Pay Scale of Rs. 9300-34800 in Pay Band-II, with Grade Pay of Rs. 5400/- w.e.f. 06.12.2016.

(iii) This Hon'ble Tribunal may graciously be pleased to issue a time- bound order to the respondents to refix the pension and pensionery benefits of applicant and also pay arrears thereof as a consequence of grant of 3rd MACP w.e.f. 06.12.2012 in GP of Rs. 4800/- and NFG w.e.f. 06.12.2016 in GP of Rs. 5400/-

3. The brief facts of the case as per the Original Application are as follows:-

3.1 The applicant was initially appointed as a Lower Division Clerk (LDC) on 21.04.1993 in the prescribed pay scale. In the normal course of service, he was promoted to the post of Upper Division Clerk (UDC) w.e.f. 01.07.2001 and thereafter, pursuant to a Review Departmental Promotion Committee held on 16.06.2011, he was granted notional promotion to the post of Inspector w.e.f. 06.12.2002 with corresponding fixation of pay. Thus, prior to completion of 20 years of regular service, the applicant had earned two promotions.

3.2 Consequent upon acceptance of the recommendations of the Sixth Central Pay Commission, the Modified Assured Career Progression (MACP) Scheme was introduced vide OM dated 19.05.2009. As per Para 28-B of the said Scheme, read with the clarification issued by the Central Board of Excise & Customs dated 23.05.2013, where an employee has earned two promotions before completion of 20 years of service, he becomes entitled to the third financial upgradation on completion of 10 years from the date of the second promotion or on completion of 30 years of service, whichever is earlier. Applying the said provisions, the applicant became due for grant of the 3rd MACP in Grade Pay ₹4800/- w.e.f. 06.12.2012.

3.3 In accordance with the aforesaid rules, the respondents themselves granted the applicant the 3rd MACP in Grade Pay ₹4800/- w.e.f. 06.12.2012 vide Establishment Order dated 08.10.2013, and his pay was duly fixed and drawn in the said grade pay. Subsequently, the revised pay structure was implemented in his case in August, 2016, and the applicant continued to draw salary in Grade Pay ₹4800/- without any objection from the respondents.

3.4 As per the Resolution of the Ministry of Finance (Department of Expenditure) dated 29.08.2008, Group ‘B’ officers are entitled to Non- Functional Grade (NFG) of ₹5400/- in Pay Band-2 after completion of four years of regular service in Grade Pay ₹4800/-. The applicant completed four years in Grade Pay ₹4800/- on 06.12.2016 and thereby became entitled to the grant of NFG w.e.f. the said date.

3.5 The applicant sought voluntary retirement, which was accepted, and he was retired from service w.e.f. 12.01.2017. However, at the stage of processing and release of pensionary benefits, the respondents raised objections regarding the admissibility of the 3rd MACP granted to the applicant and initiated correspondence for clarification, resulting in non- release of pension and retiral dues and causing serious financial hardship to the applicant after retirement.

3.6 Under protest and to secure release of his pensionary benefits, the applicant submitted representations, whereupon the respond