Grade Pay of Rs. 5400/-, not Rs. 4800/-, is based solely on four years of regular service, not specific designation.

The applicant, Vishwa Rattan, a retired Technical Manager (Electrical) from the Department of Posts, was granted the Grade Pay of Rs. 4800 (pre-revised scale Rs. 7500-12000) under the MACP Scheme on August 14, 2013.

He retired on April 30, 2020.

The applicant completed four years of regular service in the Grade Pay of Rs. 4800 on January 20, 2018, thereby becoming entitled to the Non-Functional Grade Pay of Rs. 5400.

Despite repeated representations, the respondents rejected his claim, asserting that he did not hold the post of Superintendent or an equivalent post.

This is the second round of litigation, as the applicant's prior O.A. No. 222/2023 was disposed of with directions to decide his legal notice.

The respondents argued that the applicant had already received all admissible MACP benefits and that the nomenclature change of his post to Technical Manager (Electrical) was merely nominal without substantive changes to pay scale or service conditions.

1. Whether the applicant is entitled to the Non-Functional Grade Pay of Rs. 5400/- in PB-2 upon completion of four years of regular service in the Grade Pay of Rs. 4800/-, effective from January 20, 2018?

2. Whether the rejection of the applicant's claim for Grade Pay of Rs. 5400/- on the ground that he did not hold the post of Superintendent or equivalent post is legally tenable?

The court primarily applied Part-C, Section-II of the First Schedule to the CCS (Revised Pay) Rules, 2008, as notified vide Government of India Resolution dated August 29, 2008, which provides for the grant of Grade Pay of Rs. 5400 on a non-functional basis to Group ‘B’ officers in PB-2 carrying Grade Pay of Rs. 4800 upon completion of four years of regular service.

It also relied on judicial precedents established by the Coordination Lucknow Bench and CAT Chandigarh Bench (specifically O.A. No. 362/2022 and O.A. No. 1007/2021), which held that this enhancement is based purely on the residency period and is not linked to holding a specific designation, vacancy, or MACP promotions.

The principle of similar treatment for similarly situated individuals was also invoked, referencing the order in Hari Mohan and Others v. UOI and Ors. in O.A. No. 721/2021.

The Tribunal found that the applicant, being in a Group 'B' post, fulfilled the statutory conditions for the upgraded Grade Pay of Rs. 5400, having completed four years in the Grade Pay of Rs. 4800 on January 20, 2018.

The court emphasized that the grant of Grade Pay Rs. 5400 is based solely on the residency period of four years in Grade Pay Rs. 4800 and is not linked to holding a particular designation or dependent upon the availability of a vacancy, as per the CCS (Revised Pay) Rules, 2008.

The Tribunal referenced its previous decision in Kamlesh Sethi v. Union of India (O.A. No. 1007/2021), which similarly held that the enhancement of Grade Pay from Rs. 4800 to Rs. 5400 on completion of four years of service is not dependent on MACP or promotion, citing the Madras High Court's ruling in M. Subramanian v. Union of India and Others.

The court noted that the respondents could not dispute the applicability of the dictum from O.A. No. 1007/2021.

Furthermore, the Tribunal applied the principle that similarly situated individuals must receive similar benefits, comparing the applicant's case to Hari Mohan, where the benefit was extended.

The respondents' contention that the applicant did not hold the post of Superintendent or equivalent, or that the post nomenclature change was nominal, was implicitly rejected by the court's reliance on the residency-based rule and prior judgments.

The impugned order dated July 16, 2023 (Annexure A-1) was quashed and set aside.

The respondents were directed to grant the applicant the Grade Pay of Rs. 5400/-, effective from January 20, 2018, along with arrears, within a period of two months from the date of receipt of the order.

No interest was awarded on the arrears.

The court held that the grant of Grade Pay Rs. 5400 after four years in Grade Pay Rs. 4800 is not linked to vacancy or specific designation but is purely residency based.