ACPS benefits for merged pre-revised pay scales are specific to enumerated scales, not all scales.

The applicants, M.S. Sabu and Viswambaran N.N., were Store Keepers Grade II in the Canteen Stores Department.

They sought the benefit of the erstwhile pre-revised pay scales of Rs.4000-6000/-, Rs.5000-8000/- merged into a single Pay Band 2 with Grade Pay of Rs.4200/- and Rs.4600/- respectively, with retrospective effect from 01.01.2006.

Specifically, they claimed benefits for the interregnum period between 01.01.2006 and 31.08.2008, when the Modified Assured Career Progression Scheme (MACP) was made available.

The Tribunal had previously ruled on 5th April 2018 that the applicants were eligible for pay fixation in Pay Band 2 plus Grade Pay of Rs.4600/- from 16.05.2007 and 18.05.2007, and that subsequent pay fixations should be modulated accordingly.

The respondents challenged this order before the Hon'ble High Court of Kerala.

The High Court, in OP(CAT) No.10 of 2019, set aside the Tribunal's 2018 order on 26.06.2025 and remanded the matter for fresh consideration.

The respondents argued that the applicants were in the ₹4000-6000 pay scale as of January 1, 2006, not the ₹5000-8000 scale.

They contended that Annexure A-4(9) {Annexure A to CSD Order No.24/2012}, which clarified the grant of MACP benefits, specifically concerned the merger of ₹5000-8000 & ₹5500-9000 and ₹6500-10500 & ₹7450-11500 pay scales, and thus did not apply to the applicants.

Conversely, the applicants argued that their second ACP placement on 16 May 2007 moved them to the revised ₹5000-8000 scale, entitling them to a grade pay of ₹4600 and ₹4800 as per the Department of Personnel and Training's clarification.

Whether the applicants, initially in the ₹4000-6000 pay scale, are entitled to the benefits of financial upgradation (ACPS/MACP) in the grade pays of ₹4600 and ₹4800 in PB-2 for the period between 01.01.2006 and 31.08.2008, considering their placement into the ₹5000-8000 scale after 01.01.2006.

The court primarily considered the clarification regarding the grant of benefits of MACPs to civilian employees as contained in Annexure A-4(9) {Annexure A to CSD Order No.24/2012}, specifically Sl. No. 26, which states that benefits of ACPS would be allowed for isolated cases due between 01.01.2006 and 31.08.2008 where pre-revised pay scales of Rs.5000-8000 & Rs.5500-9000 and Rs.6500-10500 & Rs.7450-11500 have been merged into single grade pay of Rs.4200 and Rs.4600 respectively w.e.f. 01.01.2006.

This clarification directs that for these merged scales, the benefits of 1st and 2nd financial upgradations under ACPS should be considered in the grade pays of Rs.4600 and Rs.4800 in PB-2, as per para 5 of Annexure-I of MACPS dated 19.05.2009.

The court also referred to the Kerala High Court's interpretation of this clarification in OP(CAT) No.10 of 2019.

The Tribunal reviewed the Annexure A-4 clarification, noting that it explicitly addresses the merger of specific pre-revised pay scales (₹5000-8000, ₹5500-9000, ₹6500-10500, and ₹7450-11500) into a single Grade Pay of ₹4200 and ₹4600 (or ₹4600 and ₹4800 for second upgradation) effective 01.01.2006.

The Tribunal observed that the applicants were initially in the ₹4000-6000 pay scale, which was not part of the merged scales explicitly mentioned in the Annexure A-4 clarification.

Although the applicants argued their second ACP placement on May 16, 2007, moved them to the revised ₹5000-8000 scale, the operative part of the clarification, as confirmed by the High Court, clearly limited the benefit to "isolated cases" where the pre-revised scales themselves had merged into the specified grade pays from 01.01.2006.

Since the applicants' initial pay scale (₹4000-6000) was not among those explicitly merged under the clarification, their subsequent placement through ACP did not qualify them for the benefits sought under this specific provision for the interregnum period.

The OA was dismissed for lack of merit.

No costs were awarded.