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2026 Supreme(Online)(CAT) 2222

CENTRAL ADMINISTRATIVE TRIBUNAL
M.G. Sewlikar, Member (J), Sangam Narain Srivastava, Member (A)
Puranik Anant Sakharam – Appellant
Versus
Union of India – Respondent
ORIGINAL APPLICATION No.481/2022



Advocates:
For the Appellants/Petitioners: Vijayan Balakrishnan
For the Respondents: N.K. Rajpurohit

Highly Skilled Tradesmen with pre-2006 ACP in Chargeman scale entitled to 3rd MACP Grade Pay Rs.4800/-; downgrade without notice quashed; recoveries refunded with interest; MACP follows Grade Pay hierarchy delinked from promotions.

Headnote:(A) Administrative Tribunals Act, 1985 - Section 19 - Modified Assured Career Progression (MACP) Scheme - Industrial employees recruited as Highly Skilled Tradesmen post 01.07.1986 - Entitled to financial upgradations under ACP/MACP - 1st ACP in scale equivalent to Chargeman (Rs.5000-8000/- pre-6th CPC), 2nd MACP to Grade Pay Rs.4600/-, 3rd MACP to Grade Pay Rs.4800/- (Pay Level 8) on completion of 30 years service - Subsequent downgrade to Rs.4600/- (Pay Level 7) without notice quashed - Placement in Chargeman scale under ACP prior to 01.01.2006 entitles to next hierarchy Grade Pays under MACP per clarifications dt.06.02.2014 - Past cases not to be reopened (MACP OM Clause 11) - Similarly placed employees cannot be treated differently. (Paras 2, 6-10)

(B) Service Law - Pay revision - No recovery permissible after long grant of benefits - Promotional hierarchy (Highly Skilled to Master Craftsman to Chargeman to Foreman) delinked from MACP entitlements for pre-2006 ACP beneficiaries - MACP provides placement in immediate next higher Grade Pay. (Paras 3, 11-12)

Facts of the case:
Multiple industrial employees in defence workshops challenged orders downgrading their 3rd MACP from Grade Pay Rs.4800/- to Rs.4600/- issued in 2022 per 2021 directions, claiming entitlement based on pre-6th CPC ACP scale of Rs.5000-8000/- and subsequent MACP hierarchy, without show-cause notice.

Findings of Court:
Applicants entitled to 3rd MACP Grade Pay Rs.4800/- from respective due dates; impugned orders quashed; recoveries if made from pensionary benefits to be refunded with GPF interest; consequential benefits within 3 months.

Issues: Entitlement to 3rd MACP Grade Pay Rs.4800/- for Highly Skilled Tradesmen with pre-2006 ACP in Chargeman scale; effect of 2012/2014 clarifications; permissibility of downgrade/recovery post long grant.

Ratio Decidendi: Employees drawing Chargeman scale under ACP prior to 01.01.2006 restructuring entitled to 2nd/3rd MACP in next Grade Pays Rs.4600/- and Rs.4800/- per 06.02.2014 OM para 2; earlier 23.07.2012 OM reconsidered; non-functional Master Craftsman placement not to offset MACP; parity with prior decided case.

Result: Original Application allowed.

Table of Content
1. applicants' service history and pay progression under acp/macp. (Para 1 , 2)
2. respondents' cadre hierarchy and macp restrictions. (Para 3)
3. applicants' rejoinder on pay scale entitlements. (Para 4)
4. court review of prior rulings and clarifications. (Para 5 , 6 , 7 , 8)
5. entitlement to 3rd macp grade pay rs.4800/- upheld. (Para 10 , 11 , 12 , 13)
6. oa allowed with recovery refund and benefits. (Para 14)

Per: Sangam Narain Srivastava, Member (A)

The applicants have filed this Original Application under Section 19 of the Administrative Tribunals Act, 1985 seeking the following reliefs:

“8(a) To allow the application.

8(b) This Hon'ble Tribunal be pleased to quash and set aside the Daily Order Part - 1 bearing no. 75/Est. (Ind) dated 15th Feb 2022 (Annexure A1), DO Part-II No. 29/IND/ 2022 dated 17th Feb 2022 (Annexure A2), DO Part-II No. 32/IND/ 2022 dated 21th Feb 2022 (Annexure A3), DO Part-II No. 49/ IND/ 2022 dated 19 March 2022 (Annexure A4).

8(c) The Hon'ble Tribunal be pleased to give direction to the respondent no. 4, 5, 6 and 8 not to reduce the Grade Pay of Rs. 4800/- to Rs. 4600/- and Pay Level from 08 to 07 in the Pay Matrix under 07th CPC till the O.A is finally heard and decided. Interim prayer in terms of clause 8(c) may kindly be granted.

(d) The Applicants may be allowed to submit joint Application as cause of action is identical in accordance with Rule 4(5) of the Central Administrative Tribunal (Procedures) Rules, 1987.

(e) Any other or further order(s) may be granted in the Interest of Justice.

(f) Cost of the application may be awarded in favour of the Applicants.”

2. The facts as narrated by the applicants are that they were recruited on or after 01st July, 1986 as Highly Skilled Tradesmen in the different Workshops of the respondents with initial Grade Pay of Rs.2400/- or the equivalent Pay Scale as it existed prior to 01st January, 2006. It was submitted that the Pay Scale of Machinist was upgraded from 260-350/- to Rs. 330-480/- as per the recommendations of the 3rd Central Pay Commission (CPC) and the applicants were appointed in the Grade Pay of Rs.330-480/- which came to be revised as Rs.1200-1800/- under 4th Central Pay Commission (CPC). Some of the applicants, who are in the trade of Telecom Mechanic (TCM), Instrument Mechanic (IM), Tool Makers and VM (AFV) were appointed in the Pay Scale of Rs.1320-2040/-.

2.2 It is submitted that the Pay Scales of Rs.1200-1800/- and 1320-2040/- came to be merged and revised as Rs.4000-6000/- under the 5th Central Pay Commission (CPC) by merging the grades of Highly Skilled-II and Highly Skilled-I as Highly Skilled. The ACP Scheme of the Government of India came into effect from 09th August, 1999 and the applicants were given their First Financial Upgradation under the ACP Scheme in the Pay Scale of Rs.5000-8000/- (Revised Grade Pay of Rs.4200/-) which was applicable to the post of Chargeman as per the promotional hierarchy consequent to passing of prescribed supervisory trade test. Subsequently, the ACP scheme was replaced by MACP in terms of which employees became eligible for three Financial Upgradations on completion of 10, 20 and 30 years of regular service. Accordingly, the applicants were granted 2nd Financial Upgradation in the Pay Scale of Rs.9300-34800/- plus Grade Pay of Rs.4600/- in Pay Band–II w.e.f. 01st September, 2008.

2.3 It is further submitted that on completion of 30 years of service, they were eligible for 3rd Financial Upgradation in the Pay Scale of Rs. 9300-34800/- plus Grade Pay of Rs.4800/- in PB-II in Pay Level 08. The applicants were granted Grade Pay of Rs.4800/- on 01st January, 2016. According to the applicants, Respondent No.4 after a lapse of seven years, vide Daily Order Part-I dated 15th February, 2022 informed that the revision of pay in respect of the Industrial Employees who were granted 3rd MACP in the Grade Pay of Rs.4800/- would be carried out with immediate effect as per the directions of the Directorate General

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