CAT - ['Chennai']
Employment and Labour LawAdministrative and Public Law

No further pay fixation is admissible on promotion to a lower Grade Pay after higher MACP upgradation.

G VENKATARAMAN vs M/o Railways

CAT - ['Chennai']JUDGMENT: September 01, 20263 MIN READSOURCE JUDGMENT
No further pay fixation is admissible on promotion to a lower Grade Pay after higher MACP upgradation.. G VENKATARAMAN vs M/o Railways. CAT - ['Chennai']. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicant, a retired Assistant Divisional Mechanical Engineer (ADME) of Southern Railway, was earlier serving as a Senior Section Engineer (SSE), Group ‘C’, carrying Grade Pay of ₹4,600.

Source reference: p. 3

While holding the SSE post, he received financial upgradations under the Modified Assured Career Progression Scheme (MACPS), including Grade Pay of ₹5,400, with consequential pay fixation.

Source reference: pp. 10–11

He was subsequently promoted to the post of ADME, Group ‘B’ Gazetted, with effect from 23 September 2009, and later received further advancement with effect from 24 September 2012.

Source reference: p. 3

He challenged the rejection of his representation by the Railway authorities dated 7 May 2018.

Source reference: pp. 3–4
02

Issues

Whether the applicant was entitled to an additional pay fixation under Rule 1313 [FR 22(I)(a)(1)] upon his promotion from SSE, Group ‘C’, to ADME, Group ‘B’, despite having already received financial upgradation and pay fixation under MACPS.

Source reference: pp. 3–8, 10–12

Whether Para 4 of the MACPS barred further pay fixation on regular promotion where the employee had already received a higher Grade Pay under the MACPS.

Source reference: pp. 9–12
03

Law Applied

The Tribunal applied Rule 1313 [FR 22(I)(a)(1)] of the Indian Railway Establishment Code, which generally governs pay fixation on promotion to a post carrying higher duties and responsibilities, read with Rule 13 of the Railway Services (Revised Pay) Rules, 2008.

Source reference: pp. 3–5

The decisive rule was Para 4 of the MACPS, under which the benefit of pay fixation available on regular promotion is also granted at the time of financial upgradation; however, no further fixation is admissible on regular promotion to a post carrying the same Grade Pay as that granted under MACPS, and where the promotional post carries a higher Grade Pay, only the difference in Grade Pay is allowed.

Source reference: p. 9

The Tribunal also considered the applicant’s reliance on the earlier decision in OA No. 717 of 2006, affirmed in WP No. 30151 of 2007 and SLP (Civil) No. 12847 of 2010, although the decision ultimately turned on the express terms of Para 4 of the MACPS.

Source reference: p. 4
04

Reasoning

The Tribunal found that the applicant had already received financial upgradations to Grade Pays of ₹4,800 and ₹5,400 under MACPS, together with the consequential pay fixation contemplated by the Scheme, while he remained in the SSE, Group ‘C’, cadre.

Source reference: pp. 10–11

Although MACPS financial upgradation is monetary in nature and does not involve assumption of higher duties or responsibilities, it remains subject to the restrictions expressly contained in Para 4 of the Scheme.

Source reference: pp. 9–12

Since the applicant’s subsequent promotion to ADME carried a Grade Pay of ₹4,800, which was lower than the ₹5,400 Grade Pay already granted under MACPS, the Tribunal held that a second fixation under FR 22 would confer an impermissible additional benefit.

Source reference: pp. 11–12

The fact that the promotion involved higher duties and responsibilities could not override the specific restriction in the MACPS.

Source reference: pp. 11–12
05

Holding

The Tribunal answered the issues against the applicant and held that he was not entitled to further pay fixation under Rule 1313 [FR 22(I)(a)(1)] on his promotion to ADME, having already received the higher Grade Pay of ₹5,400 and consequential fixation under MACPS.

The challenge to the order dated 7 May 2018 was rejected, and the Original Application was dismissed as devoid of merit.

Source reference: p. 12

The parties were directed to bear their own costs.

Source reference: p. 12
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Indian Penal Code, 18601

CAT - ['Chennai']

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G VENKATARAMANvsM/o Railways

CAT - ['Chennai'] · September 01, 2026

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