CAT - ['Patna']

Financial upgradation under MACP is not a vested right and is subject to the expiry of disciplinary penalties.

MD ILTAF HUSSAIN vs CIP

CAT - ['Patna']JUDGMENT: April 23, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicant was appointed as a Ward Attendant at the Central Institute of Psychiatry (CIP) on 06.03.1985

Source reference: p. 4

He received his 1st financial upgradation under the ACP Scheme on 09.09.1999

Source reference: p. 4

The applicant was subject to two disciplinary actions: a minor penalty of "censure" on 25.02.2005 and a penalty of withholding one increment without cumulative effect for two years via order dated 08.03.2010

Source reference: p. 3-4

While the Modified Assured Career Progression (MACP) Scheme was implemented w.e.f. 01.09.2008, the respondents granted the applicant his 1st and 2nd MACP only from 01.07.2012, citing the currency of the 2010 punishment

Source reference: p. 4, 6

The applicant challenged the rejection of his representation dated 24.08.2022, seeking MACP benefits from the retrospective date of the scheme’s implementation (01.09.2008)

Source reference: p. 2
02

Issues

1. Whether the applicant is entitled to the 1st and 2nd MACP financial upgradations w.e.f. 01.09.2008 despite the imposition of disciplinary penalties

Source reference: p. 2 / para. 1

2. Whether the delay in holding Screening Committee meetings or the retrospective implementation of the MACP Scheme creates a vested right for an employee to receive benefits from the date of implementation regardless of conduct

Source reference: p. 6, 8 / para. 6(c)
03

Law Applied

The court applied the Modified Assured Career Progression (MACP) Scheme guidelines issued via OM dated 19.05.2009

Source reference: p. 3

It relied on the principle that financial upgradation is not an automatic right but is subject to the fulfillment of eligibility criteria and a clean record as evaluated by a Screening Committee

Source reference: p. 7

Specifically, the principle established by the Hon’ble Supreme Court in Union of India & Ors. v. S. Ranjit Samuel & Ors. (2022) and Vice Chairman, Delhi Development Authority v. N.K. Sharma & Ors. (2022) that MACP benefits are executive incentives to relieve stagnation rather than vested or enforceable rights, and that eligibility does not equate to an entitlement if the employee's record is under cloud

Source reference: p. 7-8
04

Reasoning

The Tribunal reasoned that the Screening Committee, which first met after the MACP implementation on 23.07.2010, correctly excluded the applicant because the penalty of withholding increments (imposed on 08.03.2010) was still in currency

Source reference: p. 6

The court rejected the applicant's argument that he should not be penalized for the delay in the committee's meeting, noting that at the time of evaluation, his disciplinary record was an active impediment

Source reference: p. 6

Using the S. Ranjit Samuel precedent, the Tribunal observed that MACP is an executive policy and the government has the discretion to set implementation dates; however, individual benefits remain contingent on a review of the employee’s service record

Source reference: p. 7-8

Since the applicant's punishment period ended in 2012, the grant of MACP w.e.f. 01.07.2012 was deemed legally sound

Source reference: p. 9

The Tribunal also declined to adjudicate the legality of the 2010 punishment as it was not specifically challenged in the relief clause

Source reference: p. 9
05

Holding

The Tribunal held that the applicant had no vested right to MACP benefits from 01.09.2008 due to the subsistence of disciplinary penalties during the relevant evaluation periods

The court affirmed the respondents' decision to grant the 1st and 2nd MACP from 01.07.2012 and the 3rd MACP from 06.03.2015, and dismissed the Original Application, upholding the impugned rejection order dated 24.08.2022

Source reference: p. 9
CAT - ['Patna']

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MD ILTAF HUSSAINvsCIP

CAT - ['Patna'] · April 23, 2026

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