Non-functional Grade Pay of ₹5400 is available after four years' service in Grade Pay ₹4800, including MACP.

The three applicants are Superintendents serving under the Central Bureau of Narcotics, Ministry of Finance

They challenged an impugned communication dated 27.01.2024 which rejected their representation for the grant of a non-functional Grade Pay (GP) of Rs. 5,400/- in Pay Band-2 (PB-2)

The respondents denied the benefit on the grounds that the applicants were holding substantive posts with a Grade Pay of Rs. 4,600/- and had only reached the Rs. 4,800/- scale through financial upgradation under the MACP/ACP scheme, rather than through regular promotion to a post carrying that scale substantively

The applicants contended that they were entitled to the higher GP after completing four years of regular service in the GP of Rs. 4,800/-, regardless of how that scale was attained

Whether Group-B officers who have attained the Grade Pay of Rs. 4,800/- via financial upgradation (ACP/MACP) are entitled to the non-functional Grade Pay of Rs. 5,400/- upon completion of four years of service in the former scale.

The benefit of non-functional Grade Pay of Rs. 5,400/- should be extended to Group-B officers after four years of service in GP Rs. 4,800/-, irrespective of whether that scale was granted substantively or through financial upgradation

Legal principle established by the Hon'ble High Court of Madras in M. Subramaniam v. Union of India & Others (W.P. No. 13225/2010), affirmed by the Hon’ble Supreme Court and subsequently followed by various benches of the Central Administrative Tribunal, including the Jabalpur Bench in O.A. No. 200/758/2022

The Court examined the respondents' objection that only officers in posts with a "substantive" Grade Pay of Rs. 4,800/- (like Income Tax Officers or Superintendents in Customs) qualify for the non-functional upgrade

The Tribunal observed that the issue is no longer res integra (a settled point of law)

By applying the ratio of M. Subramaniam, the Tribunal reasoned that the distinction between obtaining a grade pay through promotion versus through financial upgradation is irrelevant for the purpose of granting the non-functional GP of Rs. 5,400/- after four years

Since the applicants had completed four years in the GP of Rs. 4,800/-, they were found to be "similarly situated" to the successful litigants in earlier cited cases

the applicants are entitled to the Grade Pay of Rs. 5,400/- on a non-functional basis effective from the date they completed four years of regular service in the Grade Pay of Rs. 4,800/-

The respondents were directed to grant the benefit along with all consequential arrears within 90 days of receipt of the order. No costs were awarded