MUKUNDAN P A vs M/o Defence

CENTRAL ADMINISTRATIVE TRIBUNAL
ERNAKULAM BENCH
O.A No. 180/00974/2017
rd
Thursday this the 3 day of September, 2026
CORAM:
HON'BLE Mr. JUSTICE SUNIL THOMAS, JUDICIAL MEMBER
HON'BLE Mr. BRAJ MOHAN AGRAWAL, ADMINISTRATIVE MEMBER
P.A. Mukundan, Aged 65 years,
S/o Late T.R. Ayyappan,
Retired Assistant Engineer (Civil),
Office of the Chief Engineer (NW), Kataribagh, Naval Base, Kochi-4,
Residing at 'Nakshathra',
Padamattummel House, Kottuvallikkad, Moothakunnam P.O,
Ernakulam, District-683 516. - Applicant
[ By Advocates: Shri. R.Sreeraj ]

V e r s u s
1. Union of India represented by its
Secretary to the Government of India,
Ministry of Defence, New Delhi-110 001.
2. The Engineer-in-Chief,
Military Engineer Services,
Kashmir House, Rajaji Marg. New Delhi-110 001.
3. The Chief Engineer Southern Command,
Military Engineer Services,
Head Quarters, Pune-411 001.
4. The Chief Engineer (NW) Kochi,
Military Engineer Services, Naval Base,
Kataribagh, Kochi-682 004. - Respondents
[ By Advocate: Shri.N.Anilkumar, SPC ]
The Original Application having been heard on 06.08.2026 & 12.08.2026,
the Tribunal on 03.09.2026 delivered the following:
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O.A No. 180/974/2017
O R D E R
Per: Mr. Braj Mohan Agrawal, Administrative Member
The applicant is a retired Assistant Engineer (Civil), Military Engineer Services. He
joined service on 26.03.1973 as Junior Engineer(Civil) and retired from service on
30.9.2009 after rendering more than 36 years of service. The applicant is aggrieved by
the withdrawal of the 2nd financial up-gradation under the Assured Career Progression
Scheme granted to him, 6 years after his retirement from service, that too without
notice and without informing the reasons for doing so. As per the applicant, in the year
1996, Junior Engineers in MES who had completed 15 years of service from their
respective dates of entry into service were granted the scale of pay of Assistant
Engineer (next promotional post) namely Rs. 6500-10500 with retrospective effect from
1.1.1991.
Applicant had earlier approached this Tribunal vide OA No.974/2017 and this
Tribunal vide its order dated 16.06.2023 decided the matter placing reliance on the
judgement of Hon'ble Apex Court in State of Punjab and others etc. v. Rafiq Masih
(White Washer) etc. {(2015) 4 SCC 334} , without going into the merits of the case. The
respondents challenged the order of the Tribunal in OP(CAT) No.144/2023. The Hon'ble
High Court of Kerala disposed the OP(CAT) vide order dated 11.01.2024, set aside the
impugned order of the Tribunal and remanded the Original Application back to the
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O.A No. 180/974/2017
Tribunal to consider afresh on merits.
2. The applicant was granted the 2nd financial up-gradation under the ACP Scheme
initially from 10.7.2004 as per Directorate General (Personnel)EI(DPC-I) E-in-C's Branch
AHQ New Delhi Letter No. B/41025/ACP/AES/JES / 2005-06 / EI(DP-I) dated 8.11.2006
(Annexure A-1/7). The applicant's name figures at Serial No.19. Subsequently through
Letter No. B/41025/R-ACP/AES/JES/E1 (DPC-I) dated 7.9.2009 (Annexure A-1/9), the
date of effect of 2nd financial up-gradation under the ACP Scheme in respect of the
applicant was ante-dated from 10.7.2004 to 9.8.1999.
Later on the name of the applicant had been deleted from the list of those
nd
sanctioned the 2 ACP as per E-in-C Branch Letter No.B/41028/ACP/AES/JES/E1(DPC)
dated 17.12.2014 (Annexure A-1/11). Para 4 of the official noting sheet
No.B/41028/ACP/AES/JES/E1(DPC) dated 12.12.2014, obtained by the applicant under
RTI (Annexure A1/13) is as under:-
"2nd financial up-gradation under the ACP Scheme has been wrongly
granted to the above individuals by considering 24 years of regular service
from the date of initial appointment. However for all the individuals, 2nd
financial up-gradation under the ACP Scheme can only be granted after
the date of grant of 1st financial up-gradation as the grant of 1st financial
up-gradation has been delayed due to late passing of the MES procedure
examination. As per detail in Appx 'A', the 2nd ACP already granted to
officials through various DPC panels needs to be withdrawn by amending
the panel."
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O.A No. 180/974/2017
3. The applicant contends that he never received the 1st financial up-gradation
under the ACP Scheme since he was already granted the pay up-gradation with effect
from 1.1.1991, and it is also incorrect to say that the 2nd financial up-gradation can be
given only if the 1st financial up-gradation under the ACP Scheme has already been
given. If the concerned person has already been given one promotion or pay up-
gradation during the 12 year period, that will be set off against the 1st financial up-
gradation under the ACP Scheme, but that will never dis-entitle him from getting the
2nd financial up-gradation under the ACP Scheme. As regards the passing of MES
procedure examination, it is submitted that those JEs who had completed 24 years
service between 9.8.1999 to 10.7.2004 had been given relaxation in educational
qualifications in Recruitment Rules for ACP purpose as per E-in-C's Branch Letter
No.B/41025/ACP/AES/JES/E1(DPC-I) dated 14.3.2007 (Annexure A-1/15).
4. The applicant submits that being aggrieved by the non-grant of 2nd ACP on
completion of 24 years of service, 41 Engineers working as JE/AE as well as retired, filed
OA No. 540/2002 and OA No.595/2002 to OA No.634/2002 before the Bangalore
Bench of this Tribunal. Those Original Applications were allowed by final order dated
25.11. 2002 and the directions therein were implemented as per MoD Letter No. PC-
90237 / 8275 / E1C(Legal-C) / 671 / CAT /D(Works) dated 14.11.2003. As far as passing
of MES Procedure Examination is concerned, those JEs who had completed 24 years
service between 9.8.1999 to 10.7.2004 had been given relaxation in educational
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O.A No. 180/974/2017
qualifications in Recruitment Rules for ACP purpose as per E-in-C's Branch Letter No.
B/41025/ACP/AES/JES/E1(DPC-I) dated 14.3.2007. Hence, the late passing of MES
Procedural Examination is no reason, much less good reason to deprive the applicant of
the benefit of 2nd financial up-gradation under the ACP Scheme.
nd
Aggrieved by withdrawal of 2 financial upgradation granted under ACP, the
applicant has filed this Original Application and sought the following reliefs:-
i) Declare that the action of the respondents in withdrawing the 2nd
financial up-gradation under the Assured Career Progression Scheme
granted to the applicant, 6 years after his retirement from service, that
too without notice and without informing the reasons for doing so, is
illegal, arbitrary, unjust, unreasonable and irrational and that the
same violates Articles 14 & 16 of the Constitution of India and quash
Annexure A-1(A).
ii) Direct the respondents to restore to the applicant the benefits of the
2nd ACP with all consequential benefits including further up-gradation
under the MACP Scheme to the appropriate Grade Pay i.e., to the
Grade Pay of Rs. 8700, arrears, revision of pension and pensionary
benefits and interest. as expeditiously as possible and at any rate
within a time frame to be prescribed by this Hon'ble Tribunal.
iii) To quash Annexure A-10
5. The respondents filed reply statement and submit that the applicant joined in
service on 26.03.1973 and retired from service w.e.f. 30.09.2009. The date of 1st ACP
upgration granted to the applicant was changed from 09.08.1999 to 10.07.2004, as the
applicant cleared the MES Procedure exam only on 19.01.2004(Annexure R-2). Passing
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the Procedure Examination is a mandatory requirement for promotion from Junior
Engineer (Civ) to Assistant Engineer (Civ) as per the relevant Recruitment Rules
(Annexure R-1). Therefore, as per the rules contained in the Department of Personnel
and Training O.M. No 35034/1/97 Estt (D) dated 09.08.1999, the cancellation of the
2nd ACP upgradation granted to the applicant, vide Letter No: B/41028/ACP/AES/JEs/E1
(DPC) dated 17.12.2014 was in order. Applicant had passed MES Procedure
Examination on 10.07.2004, which is mandatory requirement for grant of ACP benefits
in promotional hierarchy. Therefore, he was eligible for ACP benefits from 10.07.2004.
However, in the year 2009 (Annexure A-1/9) an inadvertent error of ante dating his
first ACP from 10.07.2004 to 30.09.2009 had occurred at the instance of the
Department and the same was corrected via Letter No. B/41028/ACP/AES/JEs/E1 (DPC)
dated 17.12.2014 (Annexure A-1/11).
6. The Respondents also submit that the ACP scheme was introduced with the
clause that financial up gradation would be granted to employees who have stagnated
for want of promotional prospects due to lack of vacancy, provided they are found to
have fulfilled all conditions for promotion and are found fit for next higher promotion.
The applicant in the instant case could not pass the Procedure Examination which is a
promotional norm for the promotion post, a mandatory requirement for promotion to
AE. Thus, the applicant is not entitled for grant of financial upgradation under the ACP
scheme prior to having fulfilled the required norms for the same.
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The applicant was drawing pay scale of AE w.e.f. 01.01.1991 based on Court
judgment granting the scale of Asst Engineer to JEs who have completed 15 years of
service. The ACP Scheme introduced w.e.f. 01.08.1999 by the Govt of India and the
mandatory requirement for grant of ACP cannot be over ruled by any department. As
per the policy passing of MES Procedure Examination was mandatory for promotion to
the post of AE and the same QR was applicable for grant of ACP. The applicant, after
putting 21 years of service, could pass the MES procedure exam only on 19.01.2004
and thus became eligible for 1st ACP. Therefore his 2nd ACP would fall due on
19.01.2016 after completion of 12 years from the date of 1st ACP.
7. The respondents further plead that in the meanwhile, MACP Scheme in Grade
Pay hierarchy on completion of 10, 20 and 30 years of service came into force w.e.f.
01.09. 2008. The mandatory requirement for grant of MACP in grade pay hierarchy is
only 'Very Good' in ACR. Hence, the applicant became eligible for 2nd MACP on
completion of 20 years and 3rd MACP on completion of 30 years of service.
The decision taken by the department was a corrective action for the error
earlier committed to avoid further loss to the Government money. In the light of the
foregoing submissions the action taken by the department is only a corrective action.
The reason for the same has also been provided in M/o Defence Letter No:
85610/ACP/47/Supdts/ CSCC/715/07/CD-Works dated 22.03.2007 (Annexure A-1/16).
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O.A No. 180/974/2017
8. Respondents filed additional reply statement to the amended OA and reiterated
their stand that as per Recruitment Rule, MES procedure examination is required to be
passed for further promotion/upgradation. After passing the MES Procedure
st
Examination, the applicant was granted the 1 ACP w.e.f. 22.04.2004. Whereas the date
has been erroneously amended to 09.08.1999 as the applicant is not eligible for the
same on 09.08.1999.
Respondents further contend that as the applicant completed 24 years of
service on 26.03.1997, he was not eligible for relaxation in educational qualification,
which was applicable to only those who completed 24 years of service between
09.08.1999 and 10.07.2004. Therefore the applicant is not eligible for grant of ACP
benefit under this policy relaxation, which has been communicated to the applicant
vide letter dated 10.08.2016 (Annrexure R-6). In terms of MACP scheme, the applicant
nd rd
was granted 2 MACP in the Grade Pay of ₹ 4800/- on completion of 20 years and 3
MACP in Grade Pay of ₹ 5400/- on completion of 30 years of service (vide Annexure R-7
dated 25.10.2017).
9. Shri R. Sreeraj, learned counsel for the applicant and Smt. C. Deepa Devi
representing Shri N. Anilkumar, SPC, learned Standing Counsel were heard at length on
06.08.2026 and 12.08.2026. Perused the records. From the rival pleadings, we have to
essentially adjudicate claims for financial upgradatins under ACP/MACP Scheme,
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O.A No. 180/974/2017
nd
specifically grant of 2 financial upgradation which was ante dated to 09.08.99 and
later on withdrawn by respondents.
10. Applicant entered service on 26.03.1973 and was granted pay scale of Assistant
Engineer w.e.f. 01.01.1991 on completion of 15 years of service as JE, which has been
nd
admitted by the 2 respondent. Therefore, in terms of ACP Scheme, the applicant was
nd
entited for 2 ACP on completion of 24 years of eligible service. The contention of the
st
respondents that he was granted only 1 ACP initially w.e.f. 10.07.2004 on passing
departmental examination is contrary to records produced (Annexure A1/7-8 and
nd
Annexure A1/10). All these records prove that the applicant was granted 2 financial
upgradation under ACP Scheme, duly accounting for first financial upgradation i.e.
Grant of AE pay scale since 1991.
Condition No.4 and Condition No.15 for grant of benefits under ACP Scheme are
reproduced below for appreciation of the case:-
“4. The first financial upgradation under the ACP Scheme shall be
allowed after 12 years of regular service and the second upgradation
after 12 years of regular service from the date of the first financial
upgradation subject to fulfillment of prescribed conditions. In other
words, if the first upgradation gets postponed on account of the
employee not found fit or due to departmental proceedings, etc this
would have consequential effect on the second upgradation which would
also get deferred accordingly.”
15. Subject to Condition No. 4 above, in cases where the employees
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O.A No. 180/974/2017
have already completed 24 years of regular service, with or without a
promotion, the second financial upgradation under the scheme shall be
granted directly. Further, in order to rationalise unequal level of
stagnation, benefit of surplus regular service (not taken into account for
the first upgradation under the scheme) shall be given at the subsequent
stage (second) of financial upgradation under the ACP Scheme as a one
time measure. In other words, in respect of employees who have already
rendered more than 12 years but less than 24 years of regular service,
while the first financial upgradation shall be granted immediately, the
surplus regular service beyond the first 12 years shall also be counted
towards the next 12 years of regular service required for grant of the
second financial upgradation and, consequently, they shall be considered
for the second financial upgradation also as and when they complete 24
years of regular service without waiting for completion of 12 more years
of regular service after the first financial upgradation already granted
under the Scheme.”
Applicant having completed 24 years service in 1997 became eligible for grant of
nd
2 financial upgradation under ACP Scheme which came into force w.e.f. 09.08.1999.
nd
11. Evidently, the applicant was granted 2 financial upgradation under ACP
Scheme initially from 10.07.2004 order dated 08.11.2006(Annexure A-1/7).
nd
Subsequently, superseding this order dated 08.11.2006 grant of 2 ACP was ante-dated
nd

to 09.08.1999 vide order dated 07.09.2009 (Annexure A-1/9). Grant of 2 ACP w.e.f.
09.08.1999 was withdrawn vide order dated 17.12.2014, after nearly 5 years of
superannuation of the applicant, who retired on 30.09.2009. Evidently, no prior notice
to the applicant, who had already superannuated prior to withdrawal of financial
nd
benefit granted under 2 ACP, was issued. No opportunity for representation was
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O.A No. 180/974/2017
granted to him, which we consider violation of basic principle of natural justice.
nd
As per the stated reason for withdrawal of the 2 financial upgradation under
ACP, as per file notings of Dec.'2014 obtained by the applicant under RTI is as under:
nd
“4. Analysis: 2 financial upgradation under the ACP Scheme has been
wrongly granted to the above individuals by considering 24 years of
regular service from the date of initial appointment. However for all the
nd
individuals 2 financial upgradatin under the ACP scheme can only be
st
granted after the date of grant of 1 financial upgradation as the gant of
st
1 financial upgradation has been delayed due to late passing of the MES
nd
procedue examination. As per details in Appx.'A', the 2 ACP already
granted to officials through various DPC panels needs to withdrawn by
amending the panel.”
nd
We observe from the records that grant of 2 ACP was ante-dated from
10.07.2004 to 09.08.1999 on account of relaxation in educational qualification order
dated 14.03.2007 (Annexure A1/15) as under:
nd
“3. The competent authority has therefore decided to grant 2 ACP
w.e.f. 09 Aug 1999 to all eligible diploma/degree holders who have
completed 24 years of eligibility service.”
Finding that the applicant had completed 24 years of service prior to 09.08.1999
nd
and holding that this policy relaxation is not applicable to him the 2 ACP benefit was
withdrawn by the respondents in the year 2014. Whereas, we find as per Ministry of
Defence letter No.85610/ACP/47/Supts/CSCC/715/07/(D-Works) dated 22.03.2007
(Annexure A-1/16) issued with the concurrence of Department of Personnel & Training
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O.A No. 180/974/2017
for adoption of ACP in respect of erstwhile Supdts B&R/E&M/SAs(Redesignated as JEs),
there was no condition of passing MES procedure examination.
Appendix 'A1 to Mod.letter No.85610/ACP/47/SUPDTS/CSCC/715/07/D(Works)
nd
Dated 22 Mar 2007
Adoption of Assured Career Progression Scheme (ACPs) in lieu of time bound Pay
Promotion Scheme in respect of erstwhile Supdt B/R & E/M Gde I & Gde II's
Redesignated as JE (Civil) & JE(E/M)
S.
No
Category Present
pay scale
of entry
grade post
First financial
upgradation
Second Financial
Upgradation
Remark
Scale of
pay
Effective
date
Scale of
pay
Effective
date
1 2 3 4 5 6 7 8
Entries against S.No item No.1, 2 & 3 will remain
unchanged
4 Diploma
Engineer
recruited as
erstwhile Supdt
B&R/E&M Gde
Iis
(Redesignated
as JEs and
promoted as
th
AEs after 09
#
₹6500-
200-
10500
th
09 Aug 99
on
completion
of 12 years
of regular
service
whichever is
later
$
₹10000
-325-
15200
09/08/99 #
₹5000-150-
8000
$
July 1991 or yet
to be promoted
# Diploma Engineer who have been placed in the pay scale of ₹ 5500-9000 after
completion of 5 years of regular service as per the old scheme shall be brought back to
th
the scale of 5000-8000 w.e.f. 9 Aug 99. Pay will refixed in the scale of ₹ 5000-8000 as
th
on 9 Aug 99 at nearest stage equal or just lower and balance to be kept as PP to be
absorbed in the future increments.
nd
$ Diploma holder JEs will be granted 2 ACP in the scale of ₹ 10000-325-15200 on
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O.A No. 180/974/2017
th
completion of 24 years of service or 9 August 1999 whichever is later. However
diploma holder JEs will not be eligible for promotion to the grade of EE if fall due
th th
during the period of 9 August 1999 to 10 July 2004 due to the statutory provisins of
th
SRO 4(E) dated 9 Jul 1991
nd
On the strength of this authority grant of 2 ACP to the applicant was ante
dated to 09.08.1999. The intent of the policy relaxation was to enable JEs who had
nd
completed 24 years of eligible service to get 2 ACP benefit in relaxation of
educational qualification in RRs.
12. The contention of the respondent that the applicant was drawing pay scale of
AEs with effect from 01.1.1991 based on judgement that JEs who has completed 15
st

years of service should be granted scale of AEs. Therefore, he was granted only 1 ACP
in 2004 only after passing MES procedure examination. This stand is unsustainable in
the eyes of law and contrary to order issued by the respondents themselves explicitly
nd
granting 2 financial upgradation under ACP initially w.e.f. 10.07.2004, antedating to
09.08.1999 and subsequently withdrawing it. The grant of higher pay scale with effect
st
from 01.01.1991 can only be considered as 1 financial upgradation and he was eligible
nd
for 2 ACP upgradation in terms of ACP condition No.15, on completion of 24 years
eligible service as on 09.08.1999, which was correctly granted to the applicant.
Bangalore Bench of this Tribunal had also come to similar conclusion in its order dated
25.11.2002 in OA No.540/2002 and OA No.595/2002 to OA No.634/2002.
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O.A No. 180/974/2017
nd
13. Therefore, we hold that withdrawal of 2 ACP is unsustainable and liable to be
nd
quashed. The applicant may be allowed to draw the 2 financial upgradation under the
ACP Scheme, with effect from 09.08.1999 as was earlier given to him. The
consequential benefits dues to this may also be granted. This would include financial
upgradation as per rules and as due under the MACP Scheme to the appropriate level
of Grade Pay and the release of arrears of the same, if any. Further, his pension and
pensionary benefits may be appropriately fixed and revised on this basis and arrears; if
any in this regard, also be released. This entire exercise may be completed within a
period of three months from the date of issue of this order. Thereafter, interest @8%
p.a. shall be payable.
14. The OA is allowed as above. We make no order as to costs.
rd
(Dated the 3 September, 2026)
(BRAJ MOHAN AGRAWAL) (JUSTICE SUNIL THOMAS)
ADMINISTRATIVE MEMBER JUDICIAL MEMBER
va
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O.A No. 180/974/2017
Annexures OA No./180/974/2017

Annexure A-1: True copy of representation dated 13.06.2016 submitted by the
st
applicant to the 1 respondent (with supporting documents)
Annexure A-1(A): True copy of the E-in-C Branch Letter
No.B/41028/ACP/AES/JES/E1(DPC) dated 17.12.2014
Annexure A-2- True copy of the Letter No.PF/PAM/296/E1O(R) dated 19.05.2016
th
issued on behalf of the 4 respondent
Annexure A-3- True copy of the representation dated 15.06.2016 submitted by the
applicant
Annexure A-4- True copy of the representation dated 11.04.2017 submitted by the
applicant
Annexure A-5 - True copy of the Letter No.B/41028/ACP/AEs/JEs/E1(DPC) dated
nd
6.6.2017 issued by the Office of the 2 respondent
Annexure A-6 - True copy of the representation dated 7.6.2017 submitted by the
applicant
Annexure A-7 -True copy of the Letter No.190108/MACP/Gen/1308/E1B(O) dated
rd
21.6.2017 issued on behalf of the 3 respondent
Annexure A-8 -True copy of the representation dated 10.07.2017 addressed to the
rd
3 respondent
Annexure A-9 - True copy of the Letter No.190108/MACP/Gen/1423/EIB(O) dated
rd
25.07.2017 issued on behalf of the 3 respondent
Annexure A-10 - True copy of the Order No.41002/MACP/Offrs/EIDPC(PP&Sub)
nd
dated 25.10.2017 issued on behalf of the 2 respondent

*
Annexure R1 - True copy of the Recruitment Rules
Annexure R2 - True copy of the relevant Part II Order
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O.A No. 180/974/2017
Annexure R3 - True copy of the order for appointment
Annexure R4 - True copy of the order for promotion
Annexure R5 - True copy of the letter No.B/41028/ACP/AEs/JEs/E1(DPC) dated
06.06.2017
Annexure R6 - True copy of the letter No.150101/ACP/JEs/4610/E1B(R-DPC) dated
10.08.2016
Annexure R7 - True copy of the letter No.41002/MACP/Offrs/E1DPC(PP&SUB) dated
25.10.2017
Annexure R8 - True copy of Directorate General (Personnel)/E1 (DPC-I) letter
No.B/41025/R-ACP/AEs/JEs/E1 (DPC-I) dated 07 Sep 2009
Annexure R9 - True copy of Headquarters Chief Engineer Southern Command Pune
E1B(R-DPC) letter No.150101/ACP/JEs/4610/E1B(R-DPC) dated 10.08.2016
Annexure R10 - True copy of Directorate General (Personnel), Engineer-in-Chief's
Branch letter No.41002/MACP/Offrs/E1DPC (PP&SUB) dated 25.10.2017
*
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