Second ACP in promotional hierarchy is mandatory for eligibility acquired prior to MACP scheme implementation.

The applicants were initially appointed as Mazdoors (Unskilled) in the Military Engineering Services (MES) between 1972 and 1980

Following the implementation of the 6th Central Pay Commission (CPC) w.e.f. January 1, 2006, the pre-revised Group 'D' scales were merged into Pay Band-1 with a Grade Pay (GP) of ₹1800, and the posts were re-designated as Tradesman Mate

The Assured Career Progression (ACP) Scheme of 1999 remained operational until August 31, 2008, after which the Modified Assured Career Progression (MACP) Scheme took effect

The applicants completed 24 years of regular service prior to August 31, 2008, but were denied the 2nd ACP in the promotional hierarchy (GP ₹2400) and subsequent 3rd MACP (GP ₹2800)

The respondents rejected their representations via the impugned order dated July 30, 2021, contending that financial upgradations must follow the Grade Pay hierarchy rather than the promotional hierarchy

1. Whether employees who completed 24 years of regular service prior to August 31, 2008, are entitled to the 2nd financial upgradation in the promotional hierarchy (GP ₹2400) under the ACP Scheme of 1999, notwithstanding the merger of pay scales w.e.f. January 1, 2006.

2. Whether the applicants are entitled to the 3rd financial upgradation in GP ₹2800 under the MACP Scheme upon completion of 30 years of service.

ACP Scheme dated 09.08.1999, which granted financial upgradations in the promotional hierarchy, and the MACP Scheme dated 19.05.2009, which shifted the hierarchy to the next higher Grade Pay

D.S. Rawat v. Union of India (OA No. 3038/2013) and affirmed in Union of India v. K.T. Akhtar, which stipulates that if pay scales are merged, earlier promotions/upgradations carrying identical Grade Pays must be ignored for the purpose of granting subsequent financial upgradations

Clarification dated 09.09.2010, confirming that ACP benefits remained admissible for eligibility acquired up to 31.08.2008

The Tribunal reasoned that since the applicants completed 24 years of service before the sunset clause of the ACP Scheme (August 31, 2008), their rights were governed by the 1999 Scheme

The court rejected the respondents' argument that the MACP hierarchy should apply retroactively to periods when the ACP Scheme was still in force

By applying the precedent from D.S. Rawat and Chaman Lal v. Union of India, the Tribunal found that the merger of unskilled and semi-skilled cadres w.e.f. January 1, 2006, rendered previous identical-grade promotions redundant

Consequently, the 2nd ACP had to be granted in the next level of the promotional hierarchy (GP ₹2400). Since this 2nd upgradation was secured under the old scheme, the 3rd upgradation under the MACP Scheme (after 30 years of service) naturally progressed to GP ₹2800

the applicants are entitled to the 2nd ACP in GP ₹2400 upon completing 24 years of service (if completed prior to 31.08.2008) and the 3rd MACP in GP ₹2800 upon completing 30 years of service

The respondents were directed to re-fix the applicants' pay and revise their pension/retiral benefits accordingly. Arrears of pay were restricted to three years prior to the filing of the OAs, and the respondents were ordered to complete the exercise within three months