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2026 Supreme(Online)(CAT) 6388

CENTRAL ADMINISTRATIVE TRIBUNAL
Rameshwar Vyas, J, Amit Sahai, Member (A)
Bajrang Lal – Appellant
Versus
Union of India – Respondent
Original Application No.208/2015



Advocates:
For the Appellants/Petitioners: A.K. Kaushik
For the Respondents: K.S. Yadav

Placement as a Master Craftsman following cadre restructuring constitutes a financial upgradation that must be reckoned against the MACPS entitlement, as the scheme is intended to address only cases of grade pay stagnation which are resolved by such higher wage advancements.

Headnote:The applicants challenged the denial of 3rd financial upgradation under the Modified Assured Career Progression (MACP) scheme. They contended that their placement as Master Craftsman (MCM) should not be treated as a promotion or upgradation for the purpose of the MACP scheme. The Tribunal determined that restructuring benefits resulting in higher grade pay are developmental advancements that must be accounted for under the MACP framework, relying on judicial precedent confirming that such placements constitute functional or financial advancements that resolve stagnation. The main issue was whether placement as a Master Craftsman, following previous restructuring, constitutes an upgradation for the purposes of the MACP scheme. The Tribunal reasoned that the MACP scheme is intended to provide relief only where an employee remains stagnant in a specific grade pay. Since the applicants received higher grade pay through restructuring, the foundational premise of stagnation is absent, and ignoring these advancements would result in double benefits which are contrary to the scheme's purpose. Resultantly, the OA is dismissed with no order as to costs.

Table of Content
1. summary of the applicants' challenge against denial of 3rd macp benefits based on their promotion history. (Para 1 , 2)
2. rationale for treating mcm placement as a financial upgradation to be offset against macp eligibility. (Para 3 , 4 , 5)

..... Respondents By Advocate: Mr. K.S. Yadav ORDER Per Hon’ble Mr. Justice Rameshwar Vyas, Member (J)

Being aggrieved by non-grant of 3rd upgradation under MACP Scheme, the applicants (total in number 12) civilian employees in the cadre of artisan staff in defence establishments have preferred the joint application making challenge to that part of the order dated 11.05.2013 (Annexure-A/1) whereby some of the applicants have not been found entitled for 3rd MACP in the grade pay of Rs.4600/- and prayed for grant of grade pay of Rs.4600/- from the due date with all consequential benefits.

2. Facts of the case in brief are as under:-

2.1 The applicants herein were appointed/promoted on various posts in the skilled category. They got promotions to the post of HS-II and then HS-I. Vide order dated 20.05.2003 (Annexure-A/3), restructuring of cadre of artisan staff in defence establishments took place after getting sanction of the President, whereby erstwhile HS-II: HS-I cadre were merged as HS w.e.f. 01.01.1996. The ratio of skilled and highly skilled categories was determined as 65:35. The restructuring was in relaxation of the conditions, if any, i.e. trade test, as one time measure.

In this restructuring Scheme, provision of placement of some percentage of Highly Skilled workers to Master Craftsman (MCM), was made after clarifying that the post of Master Craftsman would not be part of the hierarchy and the placement would not be treated as promotion either under normal promotion rules or under ACP Scheme. The Master Craftsman was continued to be considered as a highly skilled grade for the purpose of promotion to the grade of Chargeman-II (Rs.5000-8000). Most of the applicants were benefited by this restructuring scheme by getting placement as MCM before 01.01.2006 from pay of Rs.4000- 6000 to pay scale of Rs.4500-7000, the date from which new restructuring scheme came into effect.

2.2 It is the case of the applicants that since placement as MCM was not considered as promotion under restructuring Scheme vide order dated 20.05.2003 (Annexure-A/3) , their placement as MCM could not be set off against 3rd upgradation under MACP Scheme, which became due after completion of 10 years’ service from the date when they got grade pay of Rs.2800 (pre-revised pay scale of Rs.4500-7000) by virtue of placement as MCM.

2.3 It is the case of the applicants that vide Office Memorandum dated 19.05.2009 (Annexure-A/4) there shall be three financial upgradation under MACP Scheme at the interval of 10, 20 and 30 years of service. Financial upgradation will be available whenever a person has spent 10 years continuously in the same grade pay. MACP Scheme envisages merely placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay as given Rules, 2008. Thus, the applicants are seeking 3rd upgradation under MACP Scheme in the next grade pay by ignoring their placement as MCM in terms of the restructuring scheme.

3. As per the case of the respondents vide ID No.11(5)/2009-D (Civ) dated 17.02.2021 (Annexure-R/1), the Ministry of Defence has clarified that the placement of highly skilled workers as Master Craftsman prior to 01.01.2006 would be offset against one upgradation for the purpose of grant of MACP benefits. As per comments of DoP&T vide ID No.106253/CR/2012 dated 08.10.2013 ignoring the placement of highly skilled as MCM (non-functional) will be deviation of the provisions of MACPs issued vide OM dated 19.05.2009. The DoP&T did not agree to the proposal of Ministry of Defence for grant of 3rd MACP w.e.f. 01.09.2008 in PB-2, GP of Rs.4600/-to Master Craftsman (MCM) who completed 24 years of service either before 01.01.2006 or after

01.01.2006.

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