Facts
The applicant was appointed as a ‘Mazdoor’ on 08.03.1997
Source reference: p. 2Following the 6th Central Pay Commission (CPC), the pay scales for 'Mazdoor' (feeder post) and 'Mate Pipe Fitter' (promotional post) were merged into a single Grade Pay of Rs. 1800/- effective from 01.01.2006
Source reference: pp. 2-3The applicant was promoted to Mate Pipe Fitter on 01.12.2010
Source reference: p. 2The respondents granted the applicant his 1st Modified Assured Career Progression (MACP) benefit effective from 01.09.2008 upon his completion of 10 years of service
Source reference: p. 5The applicant challenged the order dated 07.01.2022, seeking the 1st MACP benefit from an earlier date, specifically 08.03.2007 (the date he completed 10 years of service), arguing that the MACP scheme should be retrospective from 01.01.2006 in line with the revised pay rules
Source reference: p. 6Issues
1. Whether the benefits of the MACP Scheme can be granted retrospectively from 01.01.2006 or must be applied from the date of the scheme's inception, i.e., 01.09.2008
Source reference: p. 72. Whether the applicant is entitled to the 1st MACP benefit w.e.f. 08.03.2007 upon completion of 10 years of regular service
Source reference: pp. 2, 7Law Applied
The Tribunal applied the Modified Assured Career Progression (MACP) Scheme introduced via Government of India O.M. dated 19.05.2009, which superseded the previous Assured Career Progression (ACP) Scheme
Source reference: p. 5It relied heavily on the precedent set by the Hon’ble Supreme Court in Union of India v. M.V. Mohanan Nair and Union of India & Ors. v. R.K. Sharma and Ors. (2021) 5 SCC 579, which established that financial upgradations under ACP/MACP are "incentives" and not part of "pay"
Source reference: p. 9Consequently, while pay revisions under the 6th CPC were effective from 01.01.2006, allowances and incentive schemes like MACP were made effective only from 01.09.2008
Source reference: pp. 9-10Reasoning
The Tribunal reasoned that during the period between 08.03.2007 (when the applicant completed 10 years) and 31.08.2008, the old ACP Scheme was in force
Source reference: p. 8Under the ACP Scheme, an employee was entitled to the 1st financial upgradation only after 12 years of service; since the applicant completed only 10 years in 2007, he did not qualify for ACP at that time
Source reference: p. 8The MACP Scheme, which shortened the eligibility period to 10 years, was expressly made operational from 01.09.2008
Source reference: p. 9The Tribunal noted that the Supreme Court in R.K. Sharma specifically prohibited the retrospective application of MACP from 01.01.2006, explaining that such a move would be detrimental to many and lead to large-scale recoveries
Source reference: p. 10Therefore, the applicant’s right to a 10-year upgradation crystallized only after the MACP Scheme became effective on 01.09.2008
Source reference: p. 11Holding
The Tribunal dismissed the O.A., holding that the applicant is not entitled to the 1st MACP benefit from 08.03.2007 as the scheme was not in operation then
The court affirmed that MACP benefits are effective only from 01.09.2008 per Supreme Court mandates
Source reference: para. 9The Tribunal directed the respondents to ensure the applicant is granted the 1st MACP w.e.f. 01.09.2008, if not already provided
Source reference: p. 11Original Court PDF
RAMWADH SINGHvsM/O DEFENCE
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