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2025 Supreme(Online)(Chh) 17169

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Rajani Dubey, Amitendra Kishore Prasad, JJ
Union Of India – Appellant
Versus
Rakesh Kumar Rathore – Respondent
WPS No. 1833 of 2025



Advocates:
For the Appellants/Petitioners: Palash Tiwari
For the Respondents: AV Shridhar

Financial upgradations granted under the MACP Scheme for posts whose pay scales have been merged due to pay commission recommendations must be ignored; furthermore, movement between posts within the same grade pay constitutes lateral induction, not a promotion, and therefore should not be counted against MACP eligibility.

Headnote:(A) Modified Assured Career Progression (MACP) Scheme - Guidelines regarding financial upgradation - Merger of pay scales - Para 5 and 8 of MACP Scheme - Interpretation - Movement from feeder post to promotional post carrying same grade pay - Held, such movement where pay scales were merged should be ignored for MACP purposes - Lateral induction versus promotion - (Paras 7, 8, 10)

Facts of the case:
The respondents, working as Loco Pilots, sought financial upgradation under the MACP scheme after completing 10 years of service. The petitioners rejected the application, contending that the respondents had already availed two financial upgradations in their career and were not eligible for further benefits. The Central Administrative Tribunal (CAT) allowed the respondents' application, citing that the movement of personnel in certain categories constitutes a lateral induction rather than a promotion, thereby entitling them to MACP benefits.

Findings of Court:
The High Court examined the provisions of the MACP scheme and relied on established judicial precedents from the Allahabad and Madhya Pradesh High Courts. It concluded that movements within merged pay scales or lateral inductions are not to be counted as promotions for the purpose of MACP. Consequently, the High Court affirmed the Tribunal's order.

Issues: Whether the movement of staff within certain Loco Pilot grades constitutes a 'promotion' to be counted under the MACP Scheme or a 'lateral induction' that should be ignored for calculating financial upgradation eligibility.

Ratio Decidendi: Promotions or upgradations granted in pay scales that were merged under the 6th CPC recommendations must be ignored for MACP benefits. Lateral induction within the same grade pay does not count as a promotion for the purpose of MACP, and such interpretation must be harmonized to ensure employees are not deprived of legitimate financial growth due to stagnation.

Result: Petition dismissed.

Table of Content
1. challenge to macp order for railway personnel based on career progression criteria. (Para 1)
2. judicial precedents establishing that certain movements are lateral inductions, not promotions for macp. (Para 10 , 11 , 12 , 13)
3. affirmation of the tribunal's decision and dismissal of the petition. (Para 14)

Per Rajani Dubey, J

In this petition, the petitioners challenge the order dated 15.10.2024 passed by learned Central Administrative Tribunal (CAT), Jabalpur Bench, Circuit Sitting at Bilaspur (CG) in OA No.203/717/2016 thereby directing the petitioners to grant benefit of MACP upgradation to all the respondents within three months from the date of receipt of copy of the order.

02. Case of the petitioners, in brief, is that the Modified Assured Career Progression (MACP) Scheme was introduced to address stagnation in career advancement by providing financial up-gradation after 10, 20, and 30 years of service, subject to certain conditions. The Petitioners (SECR) on 24.06.2009 published Estt Rule No. 138/2009 reproducing the Railways Boards guidelines with regard to MACP Scheme, which states the instructions regarding the criteria for financial up gradation under the scheme (Annexure P/2). It would be pertinent to mention at this juncture that with regard to MACP Scheme, the promotional hierarchy in the category of Loco Pilots, the following grades are:

Assistant Loco Pilot-II (GP Rs. 1900)

Assistant Loco Pilot-I (GP Rs. 2400)

Loco Pilot Shunter -II (GP Rs. 2400)

Loco Pilot Shunter -I (GP Rs. 4200)

Loco Pilot Goods -II (GP Rs. 4200)

03. The respondents commencing their career as an Assistant Loco Pilot (ALP) and progressing to the highest grade of Mail/Express Pilot undergo six promotions (both functional and non-functional), including two higher promotional grades under the VIth CPC pay structure, namely GP-2400 and GP-4200. An ALP promoted to the position of Loco Pilot Goods (LPG), bypassing the Shunter Grade in accordance with Establishment Rule No. 174/2011 is considered to have earned two promotions upon reaching the distinct grade of GP-4200. The respondents, serving as Loco Pilot Goods (LPG-II) under the petitioners, have already availed two career up-gradations, first as Senior Assistant Loco Pilot and subsequently as Loco Pilot Goods, both within the same Grade Pay of Rs. 4200. When the respondents completed 10 years of service as Loco Pilot Goods, they were awarded financial benefits under the MACP Scheme vide this office order No. DPB/960/2016 dated 30.08.2016 (Annexure P/4). Despite having availed two financial upgradations during their career, the respondents have nevertheless submitted an application seeking benefits under the MACP Scheme.

04. The petitioners, after thoroughly examining the provisions of the MACP Scheme and assessing the respondents’ career progression, rejected their application for further financial up-gradation as the respondent did not meet the requisite criteria. Being aggrieved, the respondents challenged the same before learned CAT and the Tribunal by the impugned order dated 15.10.2024. (Annexure P/1), without appreciating the defence of the petitioners that the respondents were not eligible for further financial up gradation under the MACP Scheme, allowed the original application and directed them to grant benefit of MACP upgradation to all the respondents within three months. Hence this petition.

05. Learned counsel for the petitioners submits that the impugned order passed by the Tribunal is arbitrary, illegal and contrary to the law applicable to the facts and circumstances of the case. The learned Tribunal ignored the fact that on implementation of 6th CPC pay structure certain grades/posts of Loco Pilots category has been allowed same grade pay which is clear from the following comparative chart:

5th CPC 6th CPC
Designation Pay Scale Designation Pay Scale Grade Pay
Asst. Loco Pilot 3050-4590 Asst. Loco Pilot 5200-20200, PB-1 1900/-

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