CAT - ['Ernakulam']

Promotion earned in a previous division counts as an offset against further MACP benefits despite subsequent request transfer.

SHIVADAS A vs THE CHIEF PERSONNEL OFFICER SOUTHERN RAILWAY CHENNAI

CAT - ['Ernakulam']JUDGMENT: May 25, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicant joined the Indian Railways as a Trainee Commercial Clerk in 1987

Source reference: p. 2

He was promoted to Senior Commercial Clerk in 1991 at Tiruchirappalli Division

Source reference: p. 2

In 1993, he sought an "own request transfer" to the Palakkad Division, where he was reverted to the lower post of Commercial Clerk with bottom seniority

Source reference: p. 3

Upon this transfer, his pay was fixed by protecting his previous pay through personal pay

Source reference: p. 7

He was subsequently re-promoted to Senior Commercial Clerk in 1997

Source reference: p. 3

In 2008, he was granted the 3rd financial upgradation under the MACP scheme

Source reference: p. 3

He retired in 2019 as a Chief Commercial Clerk. The applicant filed this O.A. claiming he was entitled to a 3rd financial upgradation in the Grade Pay of Rs. 4600/- effective from 2017, arguing his previous promotion in 1991 should be ignored because he was reverted upon transfer

Source reference: p. 4-5
02

Issues

1. Whether the applicant is entitled to a further financial upgradation to Grade Pay Rs. 4600/- upon completion of 30 years of service, despite having earned two promotions and one MACP upgradation previously

Source reference: p. 6 / para. 6

2. Whether the promotion earned in 1991 at the previous division, which was subsequently lost due to an "own request transfer" and later regained, should be counted as an offset against MACP entitlements

Source reference: p. 13 / para. 15
03

Law Applied

Para 24 of the MACP Scheme (RBE No. 101/2009), which stipulates that if an employee seeks a unilateral transfer to a lower post after a promotion, they are entitled to subsequent financial upgradations only upon completion of the required service from the date of initial appointment in the new organization

Source reference: p. 9 / para. 9

Railway Board Circulars (RBE No. 81/2020 and Letter dated 18.04.2016), which clarify that re-promotion to a level previously held in an old organization must be counted as a financial upgradation for MACP purposes

Source reference: p. 12 / para. 15

The Tribunal applied the principle from Union of India v. N.M. Raut, ensuring all financial upgradations earned are accounted for when reckoning the 10-year intervals and the three assured upgradations

Source reference: p. 14 / para. 17
04

Reasoning

The Tribunal rejected the applicant's contention that his pay was not protected during his 1993 transfer, noting that the Service Register (Annexure A1) explicitly showed pay protection through "personal pay"

Source reference: p. 12 / para. 14

Applying the Railway Board’s clarified policies (Annexures R-1, R-2, R-3), the court reasoned that the applicant had already exhausted his three opportunities for financial advancement

Source reference: p. 11 / para. 13

Specifically: (1) his first promotion was in 1991; (2) his re-promotion in 1997 (post-transfer) constituted his second advancement; and (3) his MACP grant in 2008 constituted his third

Source reference: p. 11-12 / paras. 13, 15

The court noted that because the applicant was granted pay protection upon transfer, the subsequent re-promotion to the same grade he held previously must be counted as an offset against his MACP entitlement

Source reference: p. 13 / para. 15

Consequently, he was not eligible for a fourth upgradation to GP Rs. 4600/-.

Source reference: no citation
05

Holding

The Tribunal answered both issues in the negative. It held that the applicant had already received three financial advancements (two promotions and one MACP) during his career and was thus ineligible for further financial upgradation under the MACP scheme

The Original Application (O.A.) was dismissed

Source reference: p. 15 / para. 18
CAT - ['Ernakulam']

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SHIVADAS AvsTHE CHIEF PERSONNEL OFFICER SOUTHERN RAILWAY CHENNAI

CAT - ['Ernakulam'] · May 25, 2026

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