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2026 Supreme(Online)(CAT) 3665

CENTRAL ADMINISTRATIVE TRIBUNAL
Sanjeeva Kumar, Administrative Member, Rajveer Singh Verma, Judicial Member
Tahir Ali – Appellant
Versus
Delhi Development Authority – Respondent
O.A. No.4163/2015



Advocates:
For the Appellants/Petitioners: M.K. Bhardwaj
For the Respondents: Sriparna Chatterjee

Financial upgradation schemes like ACP are executive policies, not vested statutory rights. Upon implementation of the MACP scheme, ACP benefits granted after the cut-off date were validly withdrawn; however, recovering erroneously paid amounts from an innocent employee is impermissible under equitable principles.

Headnote:(A) Administrative Tribunals Act, 1985 - Section 19 - Assured Career Progression (ACP) Scheme - Modified Assured Career Progression (MACP) Scheme - Withdrawal of financial upgradation - Pay scale reduction - Applicant challenged withdrawal of 2nd ACP granted on 11.05.2009, subsequent to implementation of MACP scheme (effective 01.09.2008) - Whether benefits granted under superseded ACP scheme were vested rights - Following the ratio in Vice Chairman, Delhi Development Authority v. Narender Kumar & Ors. (2022) 11 SCC 641, the Court held that the ACP scheme ceased to exist after 31.08.2008, and eligibility for ACP does not confer an enforceable vested right if the policy has been replaced - However, applying State of Punjab v. Rafiq Masih, the Court directed that no recovery of excess payments already made to the applicant should be effected.

Facts of the case:
The applicant, a Junior Engineer, was granted the 2nd financial upgradation under the ACP Scheme in 2009. The respondents later withdrew this benefit, citing the introduction of the MACP Scheme with effect from 01.09.2008, which superseded the ACP Scheme.

Findings of Court:
The Court held that the applicant had no vested right to the ACP benefits once the MACP policy came into effect. However, the Court exercised equitable jurisdiction to prevent recovery of already paid amounts.

Issues: Whether the withdrawal of ACP benefits after the introduction of the MACP scheme was arbitrary and whether the applicant had an enforceable vested right to such benefits.

Ratio Decidendi: Financial upgradation schemes are executive policy instruments to address stagnation; they are not statutory entitlements. Once a new policy supersedes an old one, employees cannot insist on the continuation of benefits under the superseded policy. However, where an employee is not guilty of misrepresentation, recovery of excess pay already released is impermissible. Result : Application disposed of with directions against recovery of payments.

Table of Content
1. summary of service stagnation complaints and acp/macp transition. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. parties' legal arguments on policy implementation and natural justice. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
3. applicable law governing administrative policy and financial upgradation. (Para 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28)
4. equitable adjudication regarding recovery of excess salary payments. (Para 29 , 30 , 31 , 32 , 33 , 34)

O R D E R

By Hon’ble Mr. Rajveer Singh Verma, Member (J) :-

The Applicant who was initially appointed on 08.03.1985 against the Direct Recruitment quota and is working as Junior Engineer (Civil) under the Delhi Development Authority (DDA) has filed the instant OA under Section 19 of the Administrative Tribunals Act, 1985, seeking the following relief(s) :-

(i) to declare the action of respondents in reducing the pay scale of applicant from Rs. 15600-39100 with grade pay of Rs.6600 to Rs. 9300-34800 with grade pay of Rs. 4600 as illegal, arbitrary and unconstitutional and direct the respondents to restore the pay scale of Rs. 15600-39100 with grade pay of Rs.6600 to the applicant w.e.f. March 2009 and grant grade pay of Rs. 7600 in PB-3 w.e.f. March 2015 with all arrears of pay and interest @ 12%.

(ii) To direct the respondents to implement their own order dated 11.05.2009 in true letter and spirit and restore the 2nd Financial Upgradation of applicant as granted vide EO No. 1073 dated 11.05.2009.

(iii) to allow the OA with exemplary cost.

(iv) To pass such other and further orders which their lordships of this Hon'ble Tribunal deem fit and proper in the existing facts and circumstances of the case.”

2. Learned counsel for the applicant submitted that despite rendering long years of service, the Applicant was not granted any promotion to higher posts such as Assistant Engineer or Executive Engineer, resulting in stagnation in the same post.

3. Learned counsel for the applicant further submitted that pursuant to the recommendations of the 5th Central Pay Commission, the Government of India introduced the Assured Career Progression (ACP) Scheme vide O.M. dated 09.08.1999, providing two financial upgradations after completion of 12 and 24 years of regular service where no promotion had been granted. Therefore, the Applicant was granted the 1st Financial Upgradation in the pay scale of Rs. 6500-10500 vide order dated 12.07.2001, upon completion of 12 years of regular service and 2nd ACP was granted to him on completion of 24 years of regular service in the pay scale of Rs. 10000-15200 vide EO No. 1073 dated 11.05.2009 with effect from 08.03.2009, along with other similarly placed employees.

4. Subsequently, the Department of Personnel and Training (DoPT) issued Office Memorandum dated 19.05.2009 introducing the Modified Assured Career Progression Scheme (MACP) providing three financial upgradations at intervals of 10, 20 and 30 years of service. The Respondent organization, being an autonomous body, adopted the scheme thereafter. Inspite of fact that the said MACP Scheme specifically provided that past cases where financial upgradations had already been granted under the earlier ACP Scheme were not to be reopened, the Respondents arbitrarily initiated action to withdraw the Applicant’s 2nd Financial Upgradation granted under the ACP Scheme, without issuing any show cause notice or passing any speaking order. Similarly situated persons approached the Tribunal by way of OA No.3829/2010, which was disposed of by protecting the interest of the applicants in the said OA.

5. Thereafter, in June 2010, the Applicant discovered through his salary slip that his Grade Pay had been reduced from Rs. 6600 to Rs. 4800, thereby effectively withdrawing the earlier financial upgradation. Aggrieved by the said arbitrary action, the Applicant submitted a representation dated 19.04.2011. As the Respondents failed to provide any explanation, the Applicant filed RTI applications

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