# UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR

- **Citation:** [2020] 7 S.C.R. 851
- **Court:** Supreme Court of India
- **Decided:** 2020-03-05
- **Case number:** Civil Appeal No. 2016 of 2020
- **Bench:** R. Banumathi, A. S. Bopanna, Hrishikesh Roy
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/union-of-india-and-others-v-m-v-mohanan-nair-34720
- **Pages:** 34

## Headnote

Service Law - Modified Assured Career Progression (MACP)
Scheme vis-à-vis Assured Career Progression (ACP) Scheme - ACP
Scheme was withdrawn and superseded by MACP Scheme -
Respondents given beneficial pay upgradation as per MACP
Scheme, however claimed the benefit of Grade Pay of the next
promotional hierarchy following the erstwhile ACP Scheme -
Granted by different Benches of CAT relying upon Union of India v.
Raj Pal - Challenged by appellants - Dismissed by High Courts -
On appeal, held: Though ACP and MACP Schemes are intended to
provide relief against stagnation, both have different features -
MACP Scheme was recommended by Sixth Central Pay Commission
to bring systematic changes in the existing ACP Scheme so that all
employees irrespective of existing hierarchical structure in their
organisations/cadre get the same benefit - Words used in the MACP
Scheme are "placement in the immediate next higher Grade Pay in
the hierarchy of the recommended revised pay bands" - Term "Grade
Pay in the next promotional post" is conspicuously absent in the
entire body of the MACP Scheme - Respondents' contention that
the benefit of MACP Scheme is referable to the promotional post, is
de hors the MACP Scheme - When the expert body like Pay
Commission comprehensively examined all the issues, various
representations and the disparities, the court should not interfere
with its recommendations - MACP Scheme has not been challenged
by the respondents - Further, Raj Pal's case was dismissed by the
Supreme Court on technical ground without any decision on merits
and thus could not have been taken as a precedent - No grounds
made out to show that the MACP Scheme granting financial
upgradation in the next grade pay is arbitrary - Impugned orders
set aside - Constitution of India - Art.141 - First Schedule of Central
Civil Services (CCS) (Revised Pay) Rules, 2008.
[2020] 7 S.C.R. 851
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SUPREME COURT REPORTS
[2020] 7 S.C.R.
Service Law - Assured Career Progression (ACP) Scheme and
Modified Assured Career Progression (MACP) Scheme - Distinction
between - Discussed.
Constitution of India - Art.141 - 'Law' under - Held: Law
declared by the Supreme Court is a principle laid down by the court
and it is this principle which has the effect of a precedent - A
principle is a proposition delivered after examination of the matter
on merits - Service Law.
Service Law - Modified Assured Career Progression (MACP)
Scheme - Object and salient features of - Discussed.
Disposing of the appeals, the Court
HELD: 1.1 In order to bring systematic changes in the
existing scheme of ACP so that all employees irrespective of
existing hierarchical structure in their organisations/cadre get
the same benefit, MACP was recommended by the Sixth Central
Pay Commission. Both ACP and MACP Schemes are in the nature
of incentive schemes devised with the object of ensuring that
the employees who are unable to avail of adequate promotional
opportunities, get some relief from stagnation in the form of
financial benefits. Under the MACP Scheme, financial
upgradations are granted at three regular intervals on completion
of 10-20-30 years of service without promotion. Hence, it is also
intended to ensure that the employees are adequately incentivised
to work efficiently despite not getting promotion for want of
promotional avenue. The change in policy brought about by
supersession of the ACP Scheme with the MACP Scheme is after
well-deliberated and well-documented recommendations of the
Sixth Central Pay Commission. Considering the various issues
in the implementation of the ACP Scheme, the Pay Commission
expressed its views "the only other way is to bring systematic
changes in the existing Scheme of ACP so that all the employees
irrespective of the existing hierarchy structure in their
organisations/cadres, get some benefit under it". The Commission
therefore, recommended that the existing Scheme of ACP be
continued with the modifications indicated thereon in the Re

## Text

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UNION OF INDIA AND OTHERS
v.
M. V. MOHANAN NAIR
(Civil Appeal No. 2016 of 2020)
MARCH 05, 2020
[R. BANUMATHI, A. S. BOPANNA AND
HRISHIKESH ROY, JJ.]
Service Law - Modified Assured Career Progression (MACP)
Scheme vis-à-vis Assured Career Progression (ACP) Scheme - ACP
Scheme was withdrawn and superseded by MACP Scheme -
Respondents given beneficial pay upgradation as per MACP
Scheme, however claimed the benefit of Grade Pay of the next
promotional hierarchy following the erstwhile ACP Scheme -
Granted by different Benches of CAT relying upon Union of India v.
Raj Pal - Challenged by appellants - Dismissed by High Courts -
On appeal, held: Though ACP and MACP Schemes are intended to
provide relief against stagnation, both have different features -
MACP Scheme was recommended by Sixth Central Pay Commission
to bring systematic changes in the existing ACP Scheme so that all
employees irrespective of existing hierarchical structure in their
organisations/cadre get the same benefit - Words used in the MACP
Scheme are "placement in the immediate next higher Grade Pay in
the hierarchy of the recommended revised pay bands" - Term "Grade
Pay in the next promotional post" is conspicuously absent in the
entire body of the MACP Scheme - Respondents' contention that
the benefit of MACP Scheme is referable to the promotional post, is
de hors the MACP Scheme - When the expert body like Pay
Commission comprehensively examined all the issues, various
representations and the disparities, the court should not interfere
with its recommendations - MACP Scheme has not been challenged
by the respondents - Further, Raj Pal's case was dismissed by the
Supreme Court on technical ground without any decision on merits
and thus could not have been taken as a precedent - No grounds
made out to show that the MACP Scheme granting financial
upgradation in the next grade pay is arbitrary - Impugned orders
set aside - Constitution of India - Art.141 - First Schedule of Central
Civil Services (CCS) (Revised Pay) Rules, 2008.
[2020] 7 S.C.R. 851
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Service Law - Assured Career Progression (ACP) Scheme and
Modified Assured Career Progression (MACP) Scheme - Distinction
between - Discussed.
Constitution of India - Art.141 - 'Law' under - Held: Law
declared by the Supreme Court is a principle laid down by the court
and it is this principle which has the effect of a precedent - A
principle is a proposition delivered after examination of the matter
on merits - Service Law.
Service Law - Modified Assured Career Progression (MACP)
Scheme - Object and salient features of - Discussed.
Disposing of the appeals, the Court
HELD: 1.1 In order to bring systematic changes in the
existing scheme of ACP so that all employees irrespective of
existing hierarchical structure in their organisations/cadre get
the same benefit, MACP was recommended by the Sixth Central
Pay Commission. Both ACP and MACP Schemes are in the nature
of incentive schemes devised with the object of ensuring that
the employees who are unable to avail of adequate promotional
opportunities, get some relief from stagnation in the form of
financial benefits. Under the MACP Scheme, financial
upgradations are granted at three regular intervals on completion
of 10-20-30 years of service without promotion. Hence, it is also
intended to ensure that the employees are adequately incentivised
to work efficiently despite not getting promotion for want of
promotional avenue. The change in policy brought about by
supersession of the ACP Scheme with the MACP Scheme is after
well-deliberated and well-documented recommendations of the
Sixth Central Pay Commission. Considering the various issues
in the implementation of the ACP Scheme, the Pay Commission
expressed its views "the only other way is to bring systematic
changes in the existing Scheme of ACP so that all the employees
irrespective of the existing hierarchy structure in their
organisations/cadres, get some benefit under it". The Commission
therefore, recommended that the existing Scheme of ACP be
continued with the modifications indicated thereon in the Report
that the financial upgradation has to be in the next immediate
Grade Pay. One of the reasons for the expert body recommending
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the MACP Scheme was that there were inter-departmental
disparities where several departments had varying promotional
hierarchies. As a result, the working of ACP Scheme under which
an employee who stagnated for 12 years, was entitled to pay in
the Pay Scale of the next promotional post, led to interdepartmental anomalies. The Pay Commission therefore,
recommended MACP Scheme with a view to putting an end to
the problem ensuing from inter-departmental disparities.
[Paras 9, 26][861-F-H; 871-G-H; 872-A]
1.2 In the ACP Scheme, there was no Grade Pay but only
fixed Pay Scales and fixed increments. After the Sixth Central
Pay Commission, various Pay Scales have been clubbed together
and there is revised Pay Scale with corresponding Pay Bands
and corresponding Grade Pay. The norms for grant of ACP were
stringent and the government servant has to satisfy the norms
for promotion. Whereas under the MACP Scheme, for financial
upgradation, the rigour of screening is diluted. [Para 18]
[868-A-B]
1.3 The words used in the MACP Scheme are "placement
in the immediate next higher Grade Pay in the hierarchy of the
recommended revised pay bands". The term "Grade Pay in the
next promotional post" is conspicuously absent in the entire body
of the MACP Scheme. The argument of the respondents that the
benefit of MACP Scheme is referable to the promotional post, is
de hors the MACP Scheme and cannot be accepted. Though ACP
and MACP Schemes are intended to provide relief against
stagnation, both the Schemes have different features. Pay scales
under the Sixth Pay Commission and the MACP Scheme are
stated to be more beneficial since it extends to the employees
with time intervals with higher pay bands and various facilities
which were not available under the ACP Scheme including the
three financial upgradations in shorter time span. In any event,
MACP Scheme has not been challenged by the respondents. The
respondents cannot be permitted to cherry-pick beneficial
features from the erstwhile ACP Scheme and also take advantage
of the beneficial features in the MACP Scheme. [Para 27]
[872-C-E]
UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR
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1.4 The object behind the MACP Scheme is to provide relief
against the stagnation. If the arguments of the respondents are
to be accepted, they would be entitled to be paid in accordance
with the grade pay offered to a promotee; but yet not assume the
responsibilities of a promotee. If the employees are entitled to
enjoy Grade Pay in the next promotional hierarchy, without the
commensurate responsibilities as a matter of routine, it would
have an adverse impact on the efficiency of administration. After
accepting the recommendation of the Sixth Central Pay
Commission, the ACP Scheme was withdrawn and the same was
superseded by the MACP Scheme with effect from 01.09.2008.
This is not some random exercise unilaterally done by the
Government, rather, it is based on the opinion of the expert body
- Sixth Central Pay Commission. When the expert body like Pay
Commission has comprehensively examined all the issues and
representations and also took note of inter-departmental
disparities owing to varying promotional hierarchies, the court
should not interfere with the recommendations of the expert body.
When the government has accepted the recommendation of the
Pay Commission and has also implemented those, any
interference by the court would have a serious impact on the
public exchequer. In the present batch of cases where the
respondents are claiming financial upgradation in the grade pay
of promotional hierarchy, no grounds are made out to show that
the MACP Scheme granting financial upgradation in the next grade
pay is arbitrary and unjust; warranting interference. [Paras 28,
29 and 35][872-F-H; 873-B-D; 875-G-H]
2.1 In the case of Raj Pal, the post of Photocopier, being an
isolated post, the order was passed in the peculiar facts and
circumstances of the case. Rajpal's case did not go into any details
in respect of the overall features of the new MACP Scheme and
did not consider the recommendations of the expert body which
culminated in the new Scheme. Raj Pal's case having been
dismissed on the ground that no sufficient cause was shown for
the delay in refiling, Raj Pal's case ought not to have been quoted
as precedent of this Court by the High Courts. [Paras 42, 45][879B, C, F; 881-B]
Union of India v. Raj Pal Decision of Supreme Court
dated 15.04.2013 in SLP (C) No. CC 7467 of 2013 -
distinguished.
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2.2 Article 141 of the Constitution of India provides that
the law declared by the Supreme Court shall be binding on all
courts within the territory of India, i.e. the pronouncement of the
law on the point shall operate as a binding precedent on all courts
within India. Law declared by the Supreme Court has to be
essentially understood as a principle laid down by the court and
it is this principle which has the effect of a precedent. A principle
as understood from the word itself is a proposition which can
only be delivered after examination of the matter on merits. It
can never be in a summary manner, much less be rendered in a
decision delivered on technical grounds, without entering into
the merits at all. A decision, unaccompanied by reasons can never
be said to be a law declared by the Supreme Court though it will
bind the parties inter-se in drawing the curtain on the litigation.
Without considering the advantages in the MACP Scheme, the
High Courts erred in interfering with the government's policy in
accepting the recommendations of the Sixth Central Pay
Commission by simply placing reliance upon Raj Pal's case. Since
certain anomalies on implementation of the MACP Scheme have
been brought to the notice of the Joint Committee in the various
meetings of the Joint Committee, Union of India and DoP&T to
consider the same as they deem it appropriate and take a decision
in accordance with law. [Paras 44, 51 and 53][879-G-H; 880-A-B;
883-D-E; G-H]
Union of India and Another v. P.V. Hariharan and
Another (1997) 3 SCC 568 : [1997] 2 SCR 1050; State
of U.P. and Others v. U.P. Sales Tax Officers Grade II
Association (2003) 6 SCC 250; Secretary, Government
(NCT of Delhi) and Others v. Grade-1 Officers
Association and Others (2014) 13 SCC 296 : [2014] 8
SCR 976; State of Tamil Nadu v. S. Arumugham (1998)
2 SCC 198 : [1997] 5 Suppl. SCR 295; State of Haryana
and Another v. Haryana Civil Secretariat Personal Staff
Association (2002) 6 SCC 72 : [2002] 1 Suppl. SCR
118; Union of India v. All India Service Pensioners'
Association and Another (1988) 2 SCC 580 : [1988] 2
SCR 697; Supreme Court Employees Welfare Association
v. Union of India and Others (1989) 4 SCC 187 : [1989]
3 SCR 488 - relied on.
UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR
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Case Law Reference
[1997] 2 SCR 1050
relied on
Para 30
(2003) 6 SCC 250
relied on
Para 31
[2014] 8 SCR 976
relied on
Para 32
[1997] 5 Suppl. SCR 295
relied on
Para 33
[2002] 1 Suppl. SCR 118
relied on
Para 34
[1988] 2 SCR 697
relied on
Para 44
[1989] 3 SCR 488
relied on
Para 45
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2016
of 2020.
From the Judgment and Order dated 24.06.2013 of the High Court
of Kerala at Ernakulam in OA (CAT) No. 2000 of 2013.
With
Civil Appeal Nos. 2017, 2018, 2019, 2020, 2021, 2022 and 20442045 of 2020.
A.N.S. Nadkarni, ASG, Ms. Madhvi Divan, Dr. Kailash Vasdev,
Jaideep Gupta, (A.C.), Vinay Kumar Garg, Sr. Advs., Kunal Chatterji,
Pravar Veer Mishra, Ms. Priyanka Das, Raj Bahadur Yadav, Akshay
Amritanshu, Anish Kr. Gupta, Pranay Ranjan, S.K. Gupta, Sumit
Upadhyay, Ms. Rekha Pandey, Arvind Kumar Sharma, S.S. Ray, Vijay
Prakash, B.V. Balram Das, Ms. Alka Agarwal, Baldev Atrey, B. Krishna
Prasad, Gurmeet Singh Makker, Sahil Monga, Mrs. Anil Katiyar,
Ms. Priya Mishra, Arun Kumar Yadav, Surender Kumar Gupta, Mukesh
Kumar Maroria, Shubham Saurav, Ms. Rekha Pandey, Ms. Vimla Sinha,
Rajeev Sharma, Sahil Bhalaik, Tushar Giri, Pradeep Kr. Mittal,
Ms. Shivetima D., Ms. Simanta Kr., Saurabh Kr., Raj Kishor Choudhary,
K. Rajeev, O. P. Bhadani, C. K. Sasi, Nayantara Roy, Abdulla N.,
Ms. Somya Gupta, P.A. Kulkarni, Ms. Punam Kumari, Yatindra Sharma,
Prashant Kumar, G. Umapathy, Ms. Vaishnavi, Rakesh K. Sharma, G.
Tushar Rao, Mayank Sharma, Kumar Dushyant Singh, Ms. Pavitra, D.K.
Thakur, Devendra Jha, Shivaraju H.B., Rituparn Uniyal, Abhishek Kumar,
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for Debasis Misra, Mrs. Prabha Swami, Nikhil Swami, Ms. Divya Swami,
Naveen R. Nath, Rahul Jain, A. N. Arora, Ms. Sumita Hazarika,
Ms. Ipsita Behura, Sunil Kumar Jain, M. B. Ramasubba Raju, E.P.
Gopinathan, Ms. Megha, Balaji Srinivasan, R.S. Rajiv, Mohan Kumar,
Manoj V. George, Ms. Shilpa Liza George, K.M. Vignesh Ram,
Ms. Bhavika, Zulfiker Ali P.S., Chava Badri Nath Babu, Rameshwar
Prasad Goyal, C.M. Angadi, M.K. Bhardwaj, Akash Dahiya, Satish
Kumar, G. Prakash, Jishnu M.L., Ms. Priyanka Prakash, Ms. Beena
Prakash, M. K. Dua, Sudhir Naagar, Karamveer Singh, Sidharth Khatana,
Ms. Haripriya Padhmanabhan, Ms. Pooja Dhar, Shrutanjaya Bhardwaj,
Ms. Gayatri Verma, Vishal Sinha, Ms. Beena Goyal, Hitesh Kumar
Sharma, Akhileshwar Jha, Ms. Meenakshi Gupta, B.P. Singh, Ms. Kusum
Chaudhry, Gp.Capt. Karan Singh Bhati, Ms. Kirti Khangarot, Ms. Celeste
Agarwal, Ms. Oorjasvi Goswami, Advs. for the appearing parties.
The Judgment of the Court was delivered by
R. BANUMATHI, J.
1. Leave granted.
2. The instant batch of appeals have been filed assailing the orders
of various High Courts dismissing petitions filed by the appellants, thereby
upholding decisions rendered by different Benches of Central
Administrative Tribunal granting financial upgradation of grade pay in
the next promotional hierarchy by placing reliance upon Union of India
and others v. Raj Pal and another CWP No.19387 of 2011
dated 19.10.2011. In these batch matters, we are concerned with the
question whether MACP Scheme entitles financial upgradation to the
next grade pay or to the grade pay of the next promotional hierarchy.
3. In all these appeals, almost all the High Courts have followed
the Raj Pal and Ved Prakash's case and granted relief as prayed for by
the respondents. Being aggrieved, the appellant-UOI has filed these
appeals.
4. The main questions falling for consideration in these appeals
are:-
(i)
Whether MACP scheme entitles financial upgradation of
pay to the next grade pay or to the grade pay of the next
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promotional post as envisaged under the ACP scheme?
Whether MACP Scheme envisages grant of financial
upgradation in Grade Pay Hierarchy and not in promotional
hierarchy?
(ii)
As contended by the respondents, whether MACP scheme
is disadvantageous to the employees in comparison to ACP
scheme as long as the financial upgradation is granted in
hierarchy of grade pay under MACP scheme?
(iii)
Whether respondents are entitled to stepping up of their
grade pay to be at par with grade pay of their juniors who
were getting the higher grade pay on account of
implementation of MACP Scheme?
Appeals relating to Issue No.III were ordered to be de-tagged
and listed separately.
5. At the outset, it is to be pointed out that almost all the Tribunals/
High Courts have only relied upon Raj Pal's case for grant of financial
upgradation on promotional hierarchy and rejected the stand of the
appellant-UOI that under MACP scheme, the employees are entitled to
financial upgradation of the next grade pay only. Since the matter was
considered on merits and since the issue involves impact on the public
ex-chequer and also interest of the staff of various establishments, we
requested learned Senior counsel, Mr. Jaideep Gupta to assist the Court
as amicus curiae which the learned Senior counsel has readily consented.
Mr. Kunal Chatterji, learned counsel has agreed to assist the learned
Senior counsel-amicus.
Assured Career Progression (ACP) Scheme:-
6. The Government of India with a view to "deal with the problem
of genuine stagnation and hardship faced by the employees due to lack
of adequate promotional avenues", introduced the Assured Career
Progression (ACP) Scheme with effect from 09.08.1999 vide its Office
Memorandum dated 09.08.1999. To mitigate the hardship in cases of
acute stagnation in a cadre or in an isolated post, it has been decided to
grant two financial upgradations under the ACP Scheme to Group 'B',
'C' and 'D' employees on completion of 12 and 24 years of regular
service. As per ACP Scheme, isolated post in Group 'A', 'B', 'C' and
'D' cadres which have no promotional avenues also qualify for similar
benefits. The financial upgradations under the ACP Scheme is placement
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in the higher Pay Scale and financial benefits in the higher Pay Scale
without regular promotion. Under the financial upgradation, grant of
financial benefits under the ACP Scheme to the government servants
concerned is on personal basis. Such financial upgradation neither
amounts to regular promotion nor require creation of new post. Some of
the salient features of the ACP Scheme are as follows:-
•
The ACP Scheme envisages merely placement in the higher
pay-scale/grant of financial benefits (through financial
upgradation) only to the Government servant concerned on
personal basis and shall, therefore, neither amount to functional/
regular promotion nor would require creation of new posts for
the purpose;
•
Under the ACP Scheme, two financial upgradations shall be
allowed to Group 'B', 'C' and 'D' employees on completion of
12 years and 24 years of his/her regular service.
•
As per para 5.1 of Annexure-1 - conditions for grant of benefits
under the ACP Scheme, it is stipulated that two financial
upgradations would be available only if no regular promotion
during the prescribed period (12 and 24 years) was granted to
an employee. If an employee has already received one regular
promotion, he/she would qualify for second ACP only on
completion of 24 years of regular service. However, in case if
two regular promotions have been received by an employee,
no further benefit under the ACP Scheme would accrue in
favour of the employee.
•
As per para 3.1 of the Office Memorandum dated 09.08.1999,
the grant of financial upgradations under the ACP Scheme shall
be subject to the conditions mentioned in the Annexure-I
annexed thereon to the Office Memorandum dated 09.08.1999.
7. Para No.8 of the Annexure provides that the financial
upgradations shall be purely personal to the employee and would have
no relevance to his/her seniority position. In other words, there would be
no additional financial upgradations for the senior employee on the ground
that the junior employee has got the higher pay scale under the ACP
Scheme. Para No.12 of Annexure-I provides that the ACP Scheme
contemplates merely placement on personal basis in the higher pay scale/
grant of financial benefits only and shall not amount to actual functional
UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR
[R. BANUMATHI, J.]
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promotion of the employees concerned. We may usefully refer to the
relevant features of the ACP Scheme as stipulated in Annexure-I to the
Office Memorandum dated 09.08.1999-Conditions for Grant of Benefits
under the ACP Scheme, which reads as under:-
Conditions for grant of benefits under the ACP Scheme:-
1.
The ACP Scheme envisages merely placement in the higher
pay-scale/grant of financial benefits (through financial
upgradation) only to the Government servant concerned on
personal basis and shall, therefore, neither amount to
functional/regular promotion nor would require creation of
new posts for the purpose;
.........
4.
The first financial upgradation under the ACP Scheme shall
be allowed after 12 years of regular service and the second
upgradation after 12 years of regular service from the date
of the first financial upgradation subject to fulfilment of
prescribed conditions. In other words, if the first upgradation
gets postponed on account of the employee not found fit or
due to departmental proceedings, etc. this would have
consequential effect on the second upgradation which would
also get deferred accordingly;
.........
8.
The financial upgradation under the ACP Scheme shall be
purely personal to the employee and shall have no relevance
to his seniority position. As such, there shall be no additional
financial upgradation for the senior employee on the ground
that the junior employee in the grade has got higher payscale under the ACP Scheme;
..........
12. The proposed ACP Scheme contemplates merely placement
on personal basis in the higher pay-scale/grant of financial
benefits only and shall not amount to actual/functional
promotion of the employees concerned. Since orders
regarding reservation in promotion are applicable only in the
case of regular promotion, reservation orders/roster shall not
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apply to the ACP Scheme which shall extend its benefits
uniformly to all eligible SC/ST employees also. However, at
the time of regular/functional (actual) promotion, the Cadre
Controlling Authorities shall ensure that all reservation orders
are applied strictly;
........."
8. ACP Scheme was replaced by Modified Assured Career
Progression (MACP) Scheme which became operational with effect
from 01.09.2008. The Sixth Central Pay Commission has recommended
the adoption of MACP Scheme primarily to rectify the problems arising
from inter-departmental disparities:-
(i) ACP Scheme led to creation of certain disparities within the
employees in different organisations/departments who were
directly recruited in the same pay scale who received different
financial upgradations under the ACP Scheme because of
existence of different promotional hierarchical structure and
different promotional pay scales in different organisations/
departments;
(ii) Another adverse consequence in the implementation of the
ACP Scheme was that the benefit of a higher pay scale was
not available if the next post in the hierarchy also existed in
the identical pay scale.
9. In order to bring systematic changes in the existing scheme of
ACP so that all employees irrespective of existing hierarchical structure
in their organisations/cadre get the same benefit, MACP was
recommended by the Sixth Central Pay Commission which was accepted
by the Government with certain modifications vide its Office
Memorandum dated 19.05.2009. Under the Sixth Central Pay
Commission, revised pay structure has been implemented with effect
from 01.01.2006; whereas benefits of ACP Scheme have been allowed
till 31.08.2008. Vide Office Memorandum dated 19.05.2009, the
Government of India introduced the MACP Scheme, in supersession of
the ACP Scheme w.e.f. 01.09.2008. There shall be no change in distinction,
classification or higher status on grant of financial upgradation under
MACP as the upgradation is purely personal and merely placement in
the next higher Grade Pay.
UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR
[R. BANUMATHI, J.]
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Modified Assured Career Progression (MACP) Scheme:-
10. Under the MACP Scheme, three financial upgradations are
made available in the next grade pay to an employee who has completed
10, 20 and 30 years of regular service in the same post without getting
any promotion. The benefit would be available at the next higher grade
pay. Some of the salient features of the MACP Scheme are as follows:-
•
Para No.2 of the MACP Scheme provides that the "MACP
Scheme envisages merely placement in the immediate
next higher grade pay in the hierarchy of the
recommended revised pay bands and grade pay".
•
As per para No.10 of the MACP Scheme - Office
Memorandum dated 19.05.2009, no stepping up of pay in
the pay band or grade pay would be admissible with regard
to junior getting more pay than the senior on account of pay
fixation under the MACP Scheme.
•
As per para No.11 of the said memorandum dated 19.05.2009,
the differences in pay scales on account of financial
upgradations under the ACP Scheme and MACP Scheme
would not be construed as anomaly.
11. Para (19) of MACP Scheme contemplates merely placement
on personal basis in the immediate higher grade pay/grant of financial
benefits only and shall not amount to actual/functional promotion of the
employees concerned. As per para (20) of the MACP Scheme, financial
upgradations shall be purely personal to the employee and shall have no
relevance to the seniority position. As such, there shall be no additional
financial upgradation for the senior employees on the ground that the
junior employees in the grade have received higher grade pay under
MACP Scheme. We may usefully extract the relevant portion of
Annexure-I of the Office Memorandum dated 19.05.2009, which reads
as under:-
ANNEXURE-I
MODIFIED ASSURED CAREER PROGRESSION
SCHEME (MACPS)
1.
There shall be three financial upgradation s under the
MACPS, counted from the direct entry grade on completion
of 10, 20 and 30 years service respectively. Financial
A
B
C
D
E
F
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upgradation under the Scheme will be admissible whenever
a person has spent 10 years continuously in the same gradepay.
2.
The MACPS envisages merely placement in the immediate
next higher grade pay in the hierarchy of the
recommended revised pay bands and grade pay as given in
Section 1, Part-A of the first schedule of the CCS (Revised
Pay) Rules, 2008. Thus, the grade pay at the time of
financial upgradation under the MACPS can, in certain
cases where regular promotion is not between two
successive grades, be different than what is available at
the time of regular promotion. ln such cases, the higher
grade pay attached to the next promotion post in the
hierarchy of the concerned cadre/organisation will be
given only at the time of regular promotion.
............
17.
The financial upgradation would be on non-functional basis
subject to fitness, in the hierarchy of grade pay within the
PB-1.Thereafter for upgradation under the MACPS the
benchmark of 'good' would be applicable till the grade pay
of Rs. 6600/- in PB-3. The benchmark will be 'Very Good'
for financial upgradation to the grade pay of Rs. 7600 and
above.
19.
The MACPS contemplates merely placement on personal
basis in the immediate higher Grade pay /grant of
financial benefits only and shall not amount to actual
functional promotion of the employees concerned.
Therefore, no reservation orders/roster shall apply to the
MACPS, which shall extend its benefits uniformly to all
eligible SC/ST employees also. However, the rules of
reservation in promotion shall be ensured at the time of
regular promotion. For this reason, it shall not be mandatory
to associate members of SC/ST in the Screening Committee
meant to consider cases for grant of financial upgradation
under the Scheme.
.............
UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR
[R. BANUMATHI, J.]
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[2020] 7 S.C.R.
25.
lf a regular promotion has been offered but was refused by
the employee before becoming entitled to a financial
upgradation, no financial upgradation shall be allowed as
such an employee has not been stagnated due to lack of
opportunities. If, however, financial upgradation has been
allowed due to stagnation and the employees subsequently
refuse the promotion, it shall not be a ground to withdraw
the financial upgradation. He shall, however, not be eligible
to be considered for further financial upgradation till he
agrees to be considered for promotion again and the second
the next financial upgradation shall also be deferred to the
extent of period of debarment due to the refusal.
..............."
12. Clause 28 contains illustrations as to grant of financial
upgradation under MACP. The illustrations in Clause 28 of the Scheme
can easily be understood by referring to the First Schedule, Part-A of
Section 1 of Central Civil Services (Revised Pay) Rules, 2008 which
gives a comparison of the scale of pay under the 5th Pay Commission
and the 6th Pay Commission as under:-
THE FIRST SCHEDULE
(SEE RULES 3 & 4)
PART - A
SECTION I
Revised Pay Bands and Grade Pays for posts carrying present
scales in Group 'A', 'B', 'C' & 'D' except posts for which different
revised scales are notified separately.
Present Scale
Revised Pay Structure
Sl.No.
Post/Grade
Present Scale
Name of Pay
Band/Scale
Correspond
ing Pay
Bands/Scal
es
Corresponding
Grade Pay
(1)
(2)
(3)
(4)
(5)
(6)
1.
S-1
2550-55-2660-60-3200
-1S
4440-7440
1300
2.
S-2
2610-60-3150-65-3540
-1S
4440-7440
1400
3.
S-2A
2610-60-2910-65-330070-4000
-1S
4440-7440
1600
4.
S-3
2650-65-3300-70-4000
-1S
4440-7440
1650
5.
S-4
2750-70-3800-75-4400
PB-1
5200-20200
1800
6.
S-5
3050-75-3950-80-4590
PB-1
5200-20200
1900
7.
S-6
3200-85-4900
PB-1
5200-20200
2000
8.
S-7
4000-100-6000
PB-1
5200-20200
2400
9.
S-8
4500-125-7000
PB-1
5200-20200
2800
A
B
C
D
E
F
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1.
S-9
5000-150-8000
PB-2
9300-34800
4200
2.
S-10
5500-175-9000
PB-2
9300-34800
4200
3.
S-11
6500-200-6900
PB-2
9300-34800
4200
4.
S-12
6500-200-10500
PB-2
9300-34800
4200
5.
S-13
7450-225-11500
PB-2
9300-34800
4600
6.
S-14
7500-250-12000
PB-2
9300-34800
4800
7.
S-15
8000-275-13500
PB-2
9300-34800
5400
8.
New Scale
8000-275-13500
(Group A Entry)
PB-3
15600-39100
5400
9.
S-16
9000
PB-3
15600-39100
5400
10.
S-17
9000-275-9550
PB-3
15600-39100
5400
11.
S-18
10325-325-10975
PB-3
15600-39100
6600
12.
S-19
10000-325-15200
PB-3
15600-39100
6600
13.
S-20
10650-325-15850
PB-3
15600-39100
6600
14.
S-21
12000-375-16500
PB-3
15600-39100
7600
15.
S-22
12750-375-16500
PB-3
15600-39100
7600
16.
S-23
12000-375-18000
PB-3
15600-39100
7600
17.
S-24
14300-400-18300
PB-4
37400-67000
8700
18.
S-25
15100-400-18300
PB-4
37400-67000
8700
19.
S-26
16400-450-20000
PB-4
37400-67000
8900
20.
S-27
16400-450-20900
PB-4
37400-67000
8900
21.
S-28
14300-450-22400
PB-4
37400-67000
10000
Present Scale
Revised Pay Structure
Sl.No.
Post/Grade
Sl.No.
Post/Grade
Sl.No.
Post/Grade
22.
S-29
18400-500-22400
PB-4
37400-67000
10000
23.
S-30
22400-525-24500
PB-4
37400-67000
12000
24.
S-31
22400-600-26000
HAG +
Scale
75500 (annual
increment @ 3 %) -
80000
Nil
25.
S-32
24050-650-26000
HAG +
Scale
75500 (annual
increment @ 3 %) -
80000
Nil
26.
S-33
26000 (Fixed)
Apex Scale
80000 (Fixed)
Nil
27.
S-34
30000 (Fixed)
Cab. Sec.
90000 (Fixed)
Nil
Comparison of ACP and MACP Scheme:-
13. For grant of financial upgradation under ACP Scheme, a
Screening Committee shall be constituted for the purpose of processing
the cases for grant of benefits under the ACP Scheme. In terms of
Clause 6.2 of the ACP Scheme, the composition of the Screening
Committee shall be the same as that of Departmental Promotion
Committee (DPC) prescribed under the relevant recruitment/service rules
for regular promotion to the higher grade to which financial upgradation
is to be granted. The requirement that the composition of the Screening
Committee shall be the same as that of DPC, under ACP Scheme, the
consideration for financial upgradations are stringent and the government
servant has to satisfy the norms for promotion. Fulfilment of normal
promotional norms like benchmark, departmental examination, senioritycum-fitness (in case of Group 'D' employees) are the requirement for
grant of financial upgradation under ACP Scheme.
UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR
[R. BANUMATHI, J.]
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SUPREME COURT REPORTS
[2020] 7 S.C.R.
14. Per contra, under the MACP Scheme, financial upgradation
is granted in the next higher Grade Pay in the hierarchy of the
recommended Pay Bands and Grade Pay as given in Section-1, Part-A
of the First Schedule of CCS (Revised Pay) Rules, 2008. Under the
MACP Scheme, the financial upgradation would be on non-functional
basis subject to fitness in the hierarchy of Grade Pay. MACP Scheme
contemplates merely placement on personal basis in the immediate
higher Grade Pay/grant of financial benefits only and shall not amount
to actual/functional promotion of the employees concerned (vide para
(19) of the MACP Scheme). In terms of para (20) of MACP Scheme,
financial upgradation under the MACP Scheme shall be purely personal
to the employees and shall have no relevance to the seniority position.
As such there shall be no additional financial upgradation for the senior
employees on the ground that the junior employee in the grade has got
higher pay/higher Grade Pay under MACP Scheme (vide para (20) of
the MACP Scheme).
15. The distinction between the ACP Scheme and MACP Scheme
can be well understood by reference to the Pay Scale under the Fifth
Central Pay Commission and the revised pay structure under the Sixth
Central Pay Commission and the corresponding Grade Pay thereon as
stated in Section-1, Part-A of the First Schedule of CCS (Revised Pay)
Rules, 2008.
THE FIRST SCHEDULE
(SEE RULES 3 & 4)
PART - A
SECTION I
Revised Pay Bands and Grade Pays for posts carrying present
scales in Group 'A', 'B', 'C' & 'D' except posts for which different
revised scales are notified separately.
Present Scale
Revised Pay Structure
Sl.No.
Post/Gr
ade
Present Scale
Name of
Pay
Band/Scale
Corresponding
Pay
Bands/Scales
Correspondin
g Grade Pay
(1)
(2)
(3)
(4)
(5)
(6)
5.
S-4
2750-70-3800-75-4400
PB-1
5200-20200
1800
6.
S-5
3050-75-3950-80-4590
PB-1
5200-20200
1900
7.
S-6
3200-85-4900
PB-1
5200-20200
2000
8.
S-7
4000-100-6000
PB-1
5200-20200
2400
9.
S-8
4500-125-7000
PB-1
5200-20200
2800
10.
S-9
5000-150-8000
PB-2
9300-34800
4200
11.
S-10
5500-175-9000
PB-2
9300-34800
4200
12.
S-11
6500-200-6900
PB-2
9300-34800
4200
13.
S-12
6500-200-10500
PB-2
9300-34800
4200
14.
S-13
7450-225-11500
PB-2
9300-34800
4600
15.
S-14
7500-250-12000
PB-2
9300-34800
4800
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B
C
D
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16. Upon implementation of the Sixth Central Pay Commission,
the Pay Scale of 3050-75-3950-80-4590 was kept in Pay Band-1 i.e.
Rs.5200-20200 with Grade Pay of Rs.1900/-. Likewise, the Pay Scale
of 3200-85-4900 was kept in Pay Band-1 i.e. 5200-20200 with Grade
Pay of Rs.2000/-. Pay Scale of Upper Division Clerk 4000-100-6000
was also kept in the same Pay Band-1 i.e. 5200-20200 but with Grade
Pay of Rs.2400/-. Under the ACP Scheme, the Government employee
who was working as Lower Division Clerk in the Pay Scale of 3050-753950-80-4590, on completion of 12 years of service, would be entitled to
the financial upgradation in the next promotional hierarchy i.e. in the
cadre of UDC i.e. Pay Scale of4000-100-6000 while working in the
same capacity as LDC. Whereas under the MACP Scheme, the
Government servant who is Lower Division Clerk in the Pay Band-1 i.e.
Rs.5200-20200/- with Grade Pay of Rs.1900/-, on completion of 10 years
of service upon grant of financial upgradation, would be getting the
immediate next higher Grade Pay of Rs.2000/- and not the grade pay on
promotional hierarchy. Following the erstwhile ACP Scheme (as per
which financial upgradation was granted in promotional hierarchy), the
respondents are claiming the benefit of Grade Pay of Rs.4200/- (which
is in the next promotional hierarchy). While the respondents are granted
financial upgradations as per the prevailing rules of MACP Scheme,
they can only claim the immediate next higher Grade Pay and not the
Grade Pay in the next promotional hierarchy.
17. As noted above, under the Sixth Pay Commission, scales of
pay of various hierarchies namely Lower Division Clerk and Upper
Division Clerk are all placed in the Pay Band-I i.e. Rs.5200-20200, of
course with different Grade Pay. When the respondents are enjoying
the benefit of the Sixth Pay Commission by getting higher pay scale,
they should go by the Scheme in accepting what it gives on the financial
upgradation; but the respondents are claiming the best of the benefits
from both the ACP and MACP Schemes. The respondents have already
been granted the beneficial pay upgradation as per the prevailing rules
of MACP Scheme on the recommendation of the Sixth Central Pay
Commission. The previous ACP Scheme was withdrawn and superseded
by MACP Scheme with effect from 01.09.2008 based on the
recommendation of the Sixth Central Pay Commission. Under MACP
Scheme, the respondent can only claim immediate next Grade Pay and
not the corresponding Grade Pay in promotional hierarchy.
UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR
[R. BANUMATHI, J.]
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[2020] 7 S.C.R.
18. As discussed earlier, in the ACP Scheme, there was no Grade
Pay but only fixed Pay Scales and fixed increments were there. After
the Sixth Central Pay Commission, various Pay Scales have been clubbed
together and there is revised Pay Scale with corresponding Pay Bands
and corresponding Grade Pay. As discussed earlier, the norms for grant
of ACP were stringent and the government servant has to satisfy the
norms for promotion. Whereas under the MACP Scheme, for financial
upgradation, the rigour of screening is diluted. For upgradation under the
MACP Scheme, the benchmark of "Good" would be applicable till the
Grade Pay of Rs.6600/- in Pay Band-3. The benchmark will be "Very
Good" for financial upgradation to the Grade Pay of Rs.7600/- and above.
Contentions:-
19. Ms. Madhvi Divan, learned ASG appearing on behalf of Union
of India has taken us through the salient features of both ACP and MACP
schemes and submitted that ACP and MACP schemes shall be subject
to the conditions mentioned thereon. Learned ASG has submitted that
Sixth Central Pay Commission took the view that ACP led to disparities
within the employees in different organisations/departments and
recommended adoption of the modified scheme which was accepted by
the Government and Sixth Central Pay Commission and MACP scheme
are being implemented. It was submitted that under the ACP scheme,
the employee is entitled to financial upgradations (two times - on
completion of 12 and 24 years of regular service) as per promotional
hierarchy. Whereas under the MACP scheme, the financial upgradations
(three times - on completion of 10, 20 and 30 years of regular service)
are fixed on the basis of immediate next grade pay and therefore, ACP
and MACP schemes are significantly different in terms of the effect
and benefit to the employees. Learned ASG submitted that the previous
ACP scheme was withdrawn and it is superseded by the MACP scheme
w.e.f. 01.09.2008 and the respondents while enjoying the benefits of
revised pay structure under the Sixth Central Pay Commission, cannot
cherry-pick the benefit of financial upgradation in the next promotional
hierarchy under the erstwhile ACP scheme. Learned ASG has further
submitted that it is the prerogative of the Government to provide any
financial benefit to its employees and so long as such scheme is not
discriminatory or arbitrary, the Court may not interfere with schemes of
Government fixing pay scales and granting incentives.
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20. Mr. Vinay Kumar Garg, learned Senior counsel appearing on
behalf of some respondents has submitted that pay band includes a bracket
of erstwhile pay scale and the grade pay and the concept of grade pay is
a fitment benefit applicable to different pay. Learned Senior counsel
submitted that when a person is to be given benefit, pay, allowance or
upgradation of the pay has to be given and in such a case, the upgradation
has to be in the next hierarchy of promotional position i.e. grade pay in
the next promotional position.