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Important Supreme court Judgement – MACP should be given effect from 01.01.2016

October 5, 2018 rajasinghmurugesan

Important Supreme court Judgement – MACP should be given effect from 01.01.2016

REPORTABLE

IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION

CIVIL APPEAL DIARY NO.3744 OF 2016

Union of India and Ors. —– Appellant(s)

Vs.

Balbir Singh Turn & Anr. —–Respondent(s)

WITH

CIVIL APPEAL DIARY NO.5183 OF 2017
CIVIL APPEAL DIARY NO.5184 OF 2017
CIVIL APPEAL DIARY NO.6249 OF 2017
CIVIL APPEAL DIARY NO.7888 OF 2017
CIVIL APPEAL DIARY NO.18265 OF 2016
CIVIL APPEAL NO.244 OF 2017
CIVIL APPEAL DIARY NO.31768 OF 2016
CIVIL APPEAL DIARY NO.38019 OF 2016
CIVIL APPEAL DIARY NO.42810 OF 2016
CIVIL APPEAL DIARY NO.42879 OF 2016

DIARY NO.4546 OF 2017
DIARY NO.11491 OF 2017
DIARY NO.11871 OF 2017
DIARY NO.13664 OF 2017
DIARY NO.13665 OF 2017
DIARY NO.13666 OF 2017
DIARY NO.18186 OF 2017
DIARY NO.18048 OF 2017
DIARY NO.18045 OF 2017
DIARY NO.18185 OF 2017
DIARY NO.22593 OF 2017
DIARY NO.30116 OF 2017
DIARY NO.23164 OF 2017
DIARY NO.11493 OF 2017
DIARY NO.28798 OF 2017

JUDGMENT

Deepak Gupta, J.

1. Applications for condonation of delay in filing and refiling the appeals are allowed.

2. This bunch of appeals is being disposed of by a common judgment since similar questions of law are involved.

3. The 6th Central Pay Commission was set up by the Government of India to make recommendations in matters relating to emoluments, allowances and conditions of service amongst other things. The Pay Commission also made recommendation with regard to armed forces personnel. On 30th August,2008, the Central Government resolved by a resolution of that date to accept the recommendation of the 6th Central Pay Commission (CPC for short) with regard to the personnel Below officer Rank (PBOR) subject to certain modifications clause (i) of the Resolution reads as follows:-

“(i) Implementation of the revised pay structure of pay bands and grade pay, as well as pension, with effect from 01.01.2006 and revised rates of allowances (except Dearness Allowance/Relief) with effect from 01.09.2008”.

clause 9 of the Resolution reads as follows:-

“(ix) Grant of 3 ACP up-gradation after 8,16 and 24 years of service of PBORs;”

4. Under the recommendations made by the 5th CPC there was a provision for Assured Career Progression (ACP). Vide this scheme, if an employee was not promoted he was entitled to get the next higher scale of pay after completion of 12/24 years of service. The 6th CPC recommended the grant of benefit of ACP after 10 and 20 years of service. The Union of India, however decided to grant 3 ACP upgradations, after 8, 16 and 24 years of service to PBORs, as per Clause (ix) extracted above. However, it would be pertinent to mention that the 6th CPC did away with the concept of pay scales and reduced the large number of pay scales into 4 pay bands and within the pay bands there was a separate grade pay attached to a post.

5. For the purpose of this judgment we are dealing with the facts of civil appeal diary No.3744 of 2016. It would be pertinent to mention that all the petitioners before the Armed Forces Tribunal (AFT for short) who are respondents before us are persons below officer rank. The respondents in this case retired after 01.01.2006 but prior to 31.08.2008. They claim that the benefit of the Modified Assured Career progression (MACP for short) was denied to them on the ground that the MACP was made applicable only with effect from 01.09.2008. The respondents approached the AFT praying that they are entitled to the benefit of MACP w.e.f 01.01.2006, i.e., the date from which the recommendation of the 6th CPC with regard to pay and benefits were made applicable. The stand of the Union of India was that the MACP was applicable only w.e.f. 01.09.2008 and, therefore, the respondents who had retired prior to the said date were not entitled to the benefit of the MACP. The AFT vide the impugned order dated 21.05.2014 held that the benefit of ACP granted to an employee is part of the pay structure which not only affects his pay but also his pension and, therefore, held that the ACP is not an allowance but a part of pay and, therefore, in terms of Clause (i) of the Government Resolution the MACP was payable w.e.f. 01.01.2006.

6. The question that arises for decision is whether the benefit of MACP is applicable from 01.01.2006 or from 01.09.2008.

7. The answer to this question will lie in the interpretation given to the Government Resolution, relevant portion of which has been quoted hereinabove. A bare perusal of Clause(i) of the Resolution clearly indicates that the Central Government decided to implement the revised pay structure of pay bands and grade pay, as well as pension with effect from 01.01.2006. The second part of the Clause lays down that all allowances except the Dearness Allowance/relief will be effective from 01.09.2008. The AFT held, and in our opinion rightly so, that the benefit of MACP is part of the pay structure and will affect the grade pay of the employees and, therefore, it cannot be said that it is a part of allowances. The benefit of MACP if given to the respondents would affect their pension also.

8. We may also point out that along with this Resolution there is Annexure-I. Part-A of Annexure-I deals with the pay structure, grade pay, pay bands etc., and Item 10 reads as follows :-

10

Assured Career Progression Scheme for PBORs.

The Commission recommends that the time bound promotion scheme in case of PBORs shall allow two financial upgradations on completion of 10 and 20 years of service as at present. The financial upgradations under the scheme shall allow benefit of pay fixation equal to one increment along with the higher grade pay. As regards the other suggestions relating to residency period for promotion of PBORs Ministry of Defence may set up an Inter-Services Committee to consider the matter after the revised scheme of running bands is

implemented (Para 2.3.34)

Three             

 

ACP upgradation after 8, 16 and 24 years of service has been approved. The upgradation will take place only in the hierarchy of Grade Pays, which need not

necessarily be the hierarchy in that particular cadre.

Part-B of Annexure-I deals with allowances, concessions & benefits and Conditions of Service of Defence Forces Personnel. It is apparent that the Government itself by placing MACP in Part-A of Annexure-I was considering it to be the part of the pay structure.

9.The MACP Scheme was initially notified vide Special Army Instructions dated 11.10.2008. The Scheme was called the Modified Assured Career Progression Scheme for Personnel Below Officer Rank in the Indian Army. After the Resolution was passed by the Central Government on 30.08.2008 Special Army Instructions were issued on 11.10.2008 dealing with revision of pay structure. As far as ACP is concerned Para 15 of the said letter reads as follows:-

“15. Assured Career Progression. In pursuance with the Government Resolution of Assured Career Progression (ACP), a directly recruited PBOR as a Sepoy, Havildar or JCO will be entitled to minimum three financial upgradations after 8, 16 and 24 years of service. At the time of each financial upgradation under ACP, the PBOR would get an additional increment and next higher grade pay in hierarchy.

xx                                                           xx                                                                  xx”

Thereafter, another letter was issued by the Adjutant General Branch on 03.08.2009. Relevant portion of which reads as follows:-

“…….The new ACP (3 ACP at 8, 16 and 24 years of service) should be applicable w.e.f. 1 Jan 2006, and the old provns (operative w.e.f. the Vth Pay Commission) would be applicable till 31 Dec. 05. Regular service for the purpose of ACP shall commence from the date of joining of a post in direct entry grade.

                          xx                                                        xx                                                                     xx”

Finally, on 30.05.2011 another letter was issued by the Ministry of Defence, relevant portion of which reads as follows:-

“5. The Scheme would be operational w.e.f. 1st Sep. 2008. In other words, financial up-gradations as per the provisions of the, earlier ACP scheme (of August 2003) would be granted till 31.08.2008.”

Therefore, even as per the understanding of the Army and other authorities up till the issuance of the letter dated 30.05.2011 the benefit of MACP was available from 01.01.2006.

10. As already held by us above, there can be no dispute that grant of ACP is part of the pay structure. It affects the pay of the employee and he gets a higher grade pay even though it may be in the same pay band. It has been strenuously urged by Col. R. Balasubramanian, learned counsel for the UOI that the Government took the decision to make the Scheme applicable from 01.09.2008 because many employees would have lost out in case the MACP was made applicable from 01.01.2006 and they would have had to refund the excess amount, if any, paid to them. His argument is that under the old Scheme if somebody got the benefit of the ACP he was put in the higher scale of pay. After merger of pay scales into pay bands an employee is only entitled to higher grade pay which may be lower than the next pay band. Therefore, there may be many employees who may suffer.

11. We are only concerned with the interpretation of the Resolution of the Government which clearly states that the recommendations of 6th CPC as modified and accepted by the Central Government in so far as they relate to pay structure, pay scales, grade pay etc. will apply from 01.01.2006. There may be some gainers and some losers but the intention of the Government was clear that this Scheme which is part of the pay structure would apply from 01.01.2006. We may also point out that the Resolution dated 30.08.2008 whereby the recommendation of the Pay Commission has been accepted with modifications and recommendations with regard to pay structure, pay scales, grade pay etc. have been made applicable from 01.01.2006. This is a decision of the Cabinet.

This decision could not have been modified by issuing executive instruction. The letter dated 30.05.2011 flies in the face of the Cabinet decision reflected in the Resolution dated 30.08.2008. Thus, administrative instruction dated 30.05.2011 is totally ultra vires the Resolution of the Government.

12. Col. R. Balasubramanian, learned counsel for the UOI relied upon the following three judgments viz. P.K. Gopinathan Nair & Ors. v. Union of India and Ors. 1 , passed by the High Court of Kerala on 22.03.2017, Delhi Urban Shelter Improvement Board v. Shashi Malik & Ors.2, passed by the High Court of Delhi on 01.09.2016, K.K. Anandan & Ors. v. The Principal Accountant General Kerala (Audit) & Ors3 passed by the Central Administrative Tribunal, Ernakulam Bench, Kerala on 08.02.2013. In our view, none of these judgments is applicable because the issue whether the MACP is part of the pay structure or allowances were not considered in any of these cases.

13. In this view of the matter we find no merit in the appeals, which are accordingly disposed of. All pending applications are also disposed of.

…………………………..J.
(Madan B. Lokur)

……………………………J.
(Deepak Gupta)

New Delhi
December 08, 2017

Download Order

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  3. Important Supreme Court Judgement – Reservation In Promotions
  4. Important Cat Judgement regarding MACP
  5. Implementation Of MACP – Very Important Judgement
  6. Delhi High Court Judgement On MACP
  7. Supreme Court Judgement: Reservation in promotion for SC & ST
  8. GDS: Supreme Court Judgement
  9. Grant of benefits of MACP Scheme to civilian employees with effect from the commencement of 6th CPC i.e. 01.01.2006 – OA No. 291/558/2019 titled as Bharu Ram Siklitgar Vs UOI & Ors.
  10. Withholding of Pension or Gratuity – Supreme Court Judgement
  11. Supreme Court Dismissed The SLP Filed By Govt Against Madras High Court Judgement Granting Pensionary Benefits Of Increment Due On 01.07 To Those Who Retired On 30.06
  12. Casual Labour Regularisation – Supreme Court Judgement Applicable to those Appointed after 1993 & 2006 who completed 10 years service
  13. Grant of financial upgradation under ACP & MACP Schemes for the Central Government Civilian Employees including Railway employees
  14. MACP ON PROMOTIONAL HIERARCHY – JUDGEMENT OF DELHI HIGH COURT WP (C) 3608-2014
  15. Judgement(s)/order(s) of Hon’ble Supreme Court on Aadhaar-PAN for filing return of income
  16. Armed Forces – Special Pension for 10 years service – Supreme Court Judgment dated 27.10.2016
  17. MACP on Hierarchy: Supreme Court dismissed the Govt. petitions against HC Decision
  18. Delhi High Court Order related to MACP
  19. Mumbai High Court Judgement 1763 of 2013 dtd.15-10-2018 regarding the benefit of MACP
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Filed Under: CGE LATEST NEWS, MACP NEWS October 5, 2018 13 Comments

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Reader Interactions

Comments

  1. Ramlal Patel says

    March 12, 2018 at 11:19 am

    Sir army no 14566178p ex hav Ramlal Patel 27 Mar 1984 me EME Corps me enrolled hua aur 31Mar 2008 ko 24Year 04 days service kar ke Havildar rank se ritayar hua lakin mujhe acp nb sub ka pension nahi mil raha hai jabki manneeya supreme Court ke aadesh ke anusar 01-01-2006 se acp lagu hua

    Reply
  2. Subhash Chander says

    February 28, 2018 at 1:17 pm

    I join the army on 15.11.1988 and get 1st regular promotion as a naik in 1992 and 2nd as a havildar in 1995. I retired on 30 Apr 2006 and not get any 3rd promotion from 1995 to 30.04.2006 (almost 11 years). Now as per supreme court orders MACP is applicable from 01.01.2006 so i will get the benefits of the same or not. ?????? Pl share your comments

    Reply
    • M.K.Kumar says

      March 2, 2018 at 10:04 pm

      In my opinion not even 16 years of service you got luckly 2 promotions so third promotion on 24th year only since you retired before that hence you are not eligible for 3rd promotion..

      Reply
  3. R.S.Rathore says

    January 21, 2018 at 6:38 pm

    The moot point is the date of implementation of MACP scheme for central government employees is 1.1.2006 as contemplated in the aforesaid hon,ble Supreme judgement based on the recommendations of the sixth pay commission report & resolution passed by the Governmenof India. As such the application of the Dopt. Pension & public grievances orders for implementation of MACP from 1.9..2008 stands unjustified .The Dopt.. may revise its previous orders for giving effect to MACP w.e.f.1.9..2008. & issue revised orders for implementation of the MACP w.e.f.1.1.2006.Hope the concerned department of Govt. of India would consider the issue in light of the hon,ble Apex court verdict as well as the spirit of the sixth pay commission report & theresolution. of the Govt. of India & pass appropriate orders in this regard so that fair play & justice may seem to have been done in the matter.

    Reply
  4. G.H Ghamgeengh says

    January 8, 2018 at 8:20 am

    The employees deprived of MACP because of its effect should be given the benifit as per Honable Supreme Courts decission 0f 2017 from 1.1.2006.DOPT’s orders awaited dont know why.Kindly consider on priority basis.Ghulm Hasan

    Reply
  5. R.S.Rathore says

    January 2, 2018 at 10:32 pm

    Since the Apex court of India in its judicial pronouncement have agreed in full that the MACP should be made effective from 1.1.2006 ,therefore the Govt. of India Ministry of Finance & the Dopt. Should issue necessary instructions on the subject for all the central Govt. employees who were deprived of the benefit of MACP due to earlier Injudicious decision of the Govt.so that further litigations could be avoided on the subject.. We hope Govt. of India will ensure FairPlay in this matter & give due respect to the honourable Apex court verdict. Thanks

    Reply
  6. P.V. RATNA PAPA says

    January 1, 2018 at 3:50 pm

    WE WELCOME THE JUDGEMENT WITH GREAT JOY. GRADE PAY SHOULD BE OF HIERARCHICAL LIKE BEFORE 6TH CPC. SOME GOT THE BENEFIT AND SOME ARE AT VERY LOSS BY CHANGING THE SYSTEM OF HIERARCHICAL SCALE TO THE GRADE PAY OF NEXT AVAILABLE IN THE LIST. EXM. WITH THE DIFFERENCE OF ONLY RS.400 IS FIXED IN BETWEEN THE POST OF UDC TO ASST. ASSTT GRADE PAY 4200/- WAS ALLOWED TO SOME PRIOR TO 6TH CPC AND AFTER THAT SOME REMAINED AT 2800/- GRADE PAY. PL LOOK INTO THE MATTER AND ALL CONCERNED SHOULD FIGHT FOR IT ALSO.

    Reply
  7. PCK ANTONY says

    January 1, 2018 at 11:38 am

    The Suprime court of India clearly ordered that the MACP is applicable with effect from 01.01.2006.not from 01.01.2016.SC also mentioned that the 6th pay commission recommentations are approved by cabinet to implement the revised pay scales from 01.01.2006.Therefore no doubt the same is applicable from 01.01.2006. Our request is that concered authorities may please be issue the necessary administrative order in this matter with out further delay……………………………….. PCK ANTONY, GS, CCRAS PENSIONERS WELFARE ASSOCIATION

    Reply
  8. M.K.Kumar says

    December 25, 2017 at 5:50 pm

    On this judgement those who are got the 3rd MACP Scheme from 1/9/2008 they will be benefited from 1/1/2006 and also 3 increments upgraded grade pay from RS.4200 to RS,4600/-on 1/7/06, 1/7/07 & 1/1/08 for that revised ordes from the Ministry of financance to be issued.. In view of this retired Pensioners also get 3 stages of increments will be revised as NOTIONAL PENSION from 1/1/2016.

    Reply
    • M.K.KUMAR says

      January 10, 2018 at 12:41 pm

      Further this is to inform that those who got the First MACP and Second MACP from 1/9/2008 of completed 12/24 years of service they also benefited from 1/6/2006 on completion of services of 10/20 years as 1st/2nd MACP for them the next higher Grade Pay plus Pay & 3 increments on 1/7/06, 1/07/07 & 1/07/08 with arrears between the period 1/1/2006 to 30/8/2008. Leaders of all the Associations may look into the matter to issue the Orders from the Finance Ministry before the budget so that the additional funds may be allotted during the F.Y. 2018-19 in all the Departments.

      Reply
  9. SESHADRIVIKRALA says

    December 13, 2017 at 7:30 am

    A great day DEAR SIR, the system of government machinery have come to such a stage that unless we fight for our rights and privileges, THE GOVT FUNCTIONARIES TACTICAL DEALINGS COME ACROSS SO SHALL NOT END.. THAT IS, THE EMPLOYEES PENSIONERS ARE BEING FORCED TO GO TO THE COURTS OF LAW FOR THEIR FUNDAMENTAL RIGHTS NATURAL JUSTICE, EVEN FOR INTERPRETATION OF THEIR OWN RULES AND INCLUDING JUDICIAL PRECEDENTS…
    NOW,I PRAY THAT THE JUDICIAL ORDERS OF HONOURABLE SUPREME COURT OF INDIA JUDGMENT IN EXTENDING THE MACP SCHEME WITH EFFECT FROM 01-01-2006, DATE OF EFFECT OF VI CPC BE TAKEN INTO ACCOUNT FOR ALL THE CENTRAL GOVERNMENT DEPARTMENT S, EMPLOYEE PENSIONER’S WELFARE… AND SHOW THEIR MAGNANIMITY BY VOLUNTEERING THEMSELVES TO EXTENDING THE MACP SCHEME WITH EFFECT FROM 01-01-2006, INSTEAD MAKING OTHERS CONCERNED TO KNOCK THE DOORS OF COURTS FOR JUSTICE.
    . SESHADRIVIKRALA ASC RETIRED PRESIDENT RPF PENSIONER’S WELFARE ASSOCIATION SOUTH CENTRAL RAILWAY SECUNDERABAD… PRAY ALL KINDLY TO LOOK INTO THIS MATTER WITH FULL VIGOUR TO GET BENEFITS AT PAR WITH ARMED FORCES PERSONNEL… REGARDS

    Reply
    • M.K.KUMAR says

      December 13, 2017 at 12:44 pm

      Please read the downloaded order, so far it was not yet finished from 1/1/2006 or 1/1/2016.” Three ACP upgradation after 8,16 & 24 years of service has been approved. But the upgradation will take place only in the hierarchy of Grade Pays, which need not necessarily be the hierarchy in that particular cadre.” This hierarchy also for 5th CPC/6th CPC RETIREES/EMPLOYEES up to 30/8/2008. .Railway association also having a case in Mumbai regarding this subject. Let us pray all to get the approval from Cabinet and orders from the Finance Ministry to all the Departments 1/1/2006 on wards.

      Reply
      • M.K.Kumar says

        December 13, 2017 at 10:20 pm

        Further to inform that ACPS are different for Civilian/Military/Defence/PBOR. For Civilians In the 5th CPC in September, 1992 it first 12/24 years called ACPS, then from 1/9/2008 onwards it called MACPS after completing 10years one promotion upgraded to grade pay. But PBORs are ACPs for 8/16/24 years promotions. The MACPS may come from 1/1/2016 for all but years may differs to each. This may be noted for all retires/employees.

        Reply

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