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2026 Supreme(Online)(CAT) 1520

CENTRAL ADMINISTRATIVE TRIBUNAL
K. Haripal, Judicial Member, Braj Mohan Agrawal, Administrative Member
Bincy John – Appellant
Versus
Union of India – Respondent
O.A./526/2023



Advocates:
For the Appellants/Petitioners: Sri.S.Radhakrishnan, Sri.Aditya Thejus Krishnan
For the Respondents: Smt.Sheela Devi I, SPC

MACP benefits based on total service length cannot be curtailed by unilateral transfers; prior service counts per scheme clause 14.

Headnote:The applicant, employed as Lower Division Clerk (LDC), sought transfers under FR 15(a) on compassionate grounds and later unilateral transfer, remaining in LDC post without functional promotion for over 10 years. She was granted 1st MACP effective 01.09.2008 recognizing 10 years' stagnation, enhancing grade pay from Rs.1,900/- to Rs.2,000/-. Respondents amended the date to 01.09.2009 post-transfer and sought recovery of alleged excess pay. Court found the amendment illegal as MACP benefits based on total service length cannot be curtailed by transfer; clause 14 of MACP OM mandates counting prior service. FR 15(a) protects pay but does not affect MACP entitlements. Key issue: Whether past service counts for MACP post-unilateral transfer without reversion from entry-level post. Ratio: Length of service alone determines MACP; transfers do not truncate accrued benefits or service reckoning. Prior Tribunal decisions in similar cases upheld counting pre-transfer service for MACP, distinguishing pay protection under FR 15(a) from scheme-based upgradations. Original Application allowed; Annexures A1 and A2 quashed; recovery restrained; interim order made absolute.

Table of Content
1. service history and macp grants post-transfers. (Para 1 , 2 , 3 , 16 , 17 , 18)
2. applicant's contentions on macp eligibility and precedents. (Para 5 , 6 , 7 , 8 , 9 , 14)
3. respondents' defense on pay reversion and oms. (Para 10 , 11 , 15)
4. hearing of counsels' arguments. (Para 12 , 13)
5. macp service reckoning survives transfers per clause 14. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25)
6. distinguishing prior oas; precedents support applicant. (Para 26 , 27 , 28)
7. oa allowed; quash orders, restrain recovery. (Para 29)

O R D E R

Justice K.Haripal, Judicial Member

Applicant is presently working as Upper Division Clerk in INS Venduruthy. She had commenced service as Lower Division Clerk on 17.06.1998 under the Commandant, Military College of Telecommunication Engineering, MHOW, Madhya Pradesh. Later, she was transferred to DSC Records, Kannur on compassionate grounds under FR 15(a) on 21.06.2005. Again, she obtained a unilateral transfer to Southern Naval Command, Kochi and joined INS Dronacharya on 01.01.2009. Till that day she did not get any promotion either functional or non-functional. Thereafter, by order dated 18.03.2010 she was granted first MACP, in recognition of completion of ten years of service, effective from 01.09.2008. She got the functional promotion as Upper Division Clerk only from 09.10.2017 and the pay was fixed at level 4 at Rs.34,300/-. Later, she was granted 2nd MACP from 17.06.2018 and the pay was fixed at level 5 reckoning total 20 years of continuous service.

2. The grievance of the applicant is that after long years, the Material Organisation under the Naval Base informed the 2nd respondent that 'she was granted 1st MACP with effect from 01.09.2008, that she was not reverted to the scale of pay of LD Clerk when she was granted compassionate ground transfer from DSC Records, Kannur; subsequently she was promoted as UDC on 09.10.2017 and was granted 2nd MACP at level 5 from 17.06.2018.' On that basis, further directives were sought for regulating her pay. This communication was issued on 13.07.2022. Later, the 2nd respondent passed Annexure-A2 order amending the date of grant of 1st MACP as 01.09.2009 instead of 01.09.2008 on the premise that she was not borne under the administrative control of SNC on 01.09.2008. On that basis, Annexure-A3 due- drawn statement was prepared, which indicates that she had drawn excess pay of Rs.1,51,176/- during the period from 2009-2023.

3. According to the applicant, she was not aware of Annexures-A1 and A2 communications till October 2023. Annexure-A3 was given to her only in October 2023 and informed that the alleged excess of Rs.1,51,176/- will be recovered from her salary. So far recovery steps have not been initiated. Therefore, apprehending such steps and challenging the correctness of Annexures-A1 to A3 she has approached the Tribunal seeking the following reliefs:

“...........b) Declare that Annexures A1, A2 and A3 are clearly wrong, illegal and not sustainable in the eye of law and set aside the same;

c) Declare that the grant of 1 financial upgradation under the MACPS to GP of Rs.2000 w.e.f. 01.09.2008 is perfectly legal and in accordance with the law;

d) Declare that the 2nd financial upgradation granted under the MACPS to PML 5 (GP 2800) w.e.f. 17.06.2018 on completion of 20 years of regular service in the Southern Naval Command is perfectly legal and in accordance with the law;

e) Declare that quantification of alleged excess payment as per Annexure A3 due and drawn statement is arbitrary, wrong and unsustainable;

f) Direct the respondents to continue with the pay and allowances already granted under the 1" MACP to the GP of Rs. 2000 and 2nd MACP to the GP of Rs. 2800 with all further and consequential benefits.............”

4. As an interim relief she sought to stay further proceedings of recovery of amount pursuant to Annexure-A3. While admitting the O.A., such an interim relief was granted , which continues.

5. According to the applicants, Annexure

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