Delhi High court order on 3rd MACP as per 7th Pay commission for Central Govt Employee

Delhi High court order on 3rd MACP as per 7th Pay commission for Central Govt Employee

MACP, Sahi Jankari, High court order
MACP

W.P.(C) No.9357/2016 Page 1 of 24

$~
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Reserved on: 06.07.2017
Pronounced on: 20.12.2017
+ W.P.(C) 9357/2016
HARI RAM & ANR ..... Petitioners
Through : Ms. Jyoti Singh, Sr. Advocate with
Sh. Padma Kumar S., Sh. Amandeep Joshi and
Sh. Himanshu Gautam, Advocates.
versus
REGISTRAR GENERAL, DELHI HIGH COURT..... Respondent
Through : Sh. Sanjoy Ghose, Sh. Rhishabh
Jetley, Ms. Pratishtha Vij and Sh. Urvi Mohan,
Advocates.
CORAM:
HON'BLE MR. JUSTICE S. RAVINDRA BHAT
HON'BLE MR. JUSTICE S.P.GARG
S. RAVINDRA BHAT, J.

Third financial upgradation under the Modified Assured Career Progression Scheme

1. Complaining of unjustified denial of third financial upgradation
under the Modified Assured Career Progression Scheme  (hereafter called
“MACPS”, for convenience), the writ petitioners approach this Court
under Article 226 of the Constitution for appropriate directions.
2. Both the petitioners joined the establishment of the High Court
initially in the cadre of Upper Division Clerk [UDC] (the first petitioner
on 05.09.1998 and the second petitioner on 22.10.1984) from which they

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were promoted to the cadre of UDC (again on 05.09.1998 and
13.05.1999 respectively) and finally to the cadre of Reader (first
petitioner on 09.10.2007 and second petitioner on 18.07.2008).
The action impugned is the denial of their claim for a third financial
upgradation. The petitioners challenge an order of the Screening
Committee of the High Court which rejected their claim for third
financial upgradation. In terms of the MACPS, an employee is entitled to
assured career progression at 10 years’ intervals – thus, the first financial
up-gradation is after 10 years of service; the second after 20 years of
service and the third, on completion of 30 years of service.
3. The MACPS had its precursor in Assured Career Progression
Scheme (ACP), formulated by the Central Government and brought into
force with effect from 09.08.1999. The ACP guaranteed career
progression after completion of 12 years of service. The precondition for
the applicability of ACP and MACPS is that the concerned officer or
employee should not have been promoted. As corollary, in the event of
promotion, the concerned career progression benefit at the appropriate
stage was to be denied. For instance, if an individual is promoted before
the completion of 10 years, she or he cannot avail the ACP/MACPS
benefit upon completion of 10 years and would instead have to wait for
the completion of 20 years for the second upgradation, provided she/he is
not promoted a second time in the career. Initially, upon the publication
of the ACP, several queries were urged and doubts sought to be allowed,
through an Office Memorandum containing clarifications to Frequently

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Asked Questions. The first of these – applicable to the ACP was
published on 01.02.2000. The second was made applicable after the
MACPS was brought into force, i.e. 01.09.2008 (through the OM dated
19.05.2009).
4. A related development relevant to the facts of this case is that the
Fifth Central Pay Commission [hereafter “the Fifth CPC”] introduced, for
the first time, the concept of “Grade Pay” applicable to each of the
Central pay or pay band. This principle applied to the recommendations
of the Sixth Central Pay Commission [hereafter “the Sixth CPC”] which
were implemented by the Central Government through the rules
formulated in 2008. From time to time, various departments in the
Central Government; other establishments such as the Delhi High Court,
which follows the pattern of pay applicable to Central Government
employees and the applicable rules were based upon felt needs, and
having regard to the exigencies or peculiarities of the departments and
their functioning recommended the “upgradation” of pay to certain
classes or categories of officers.” These upgradations could be
performance based or purely based upon fulfillment of certain conditions.
5. The petitioners’ claim is that upon completion of 30 years of
service given that they were promoted only twice in their careers, the
third upgradation assured to them under the MACPS had to be granted.
In support of their contention, they argued that they had fulfilled
conditions for the application of the relevant conditions under the
MACPS:

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“6.1 In the case of ACP upgradations granted between
01.01.2006 and 31.08.2008, the Government servant has
the option under the CCS (RP) Rules, 2008 to have his
pay fixed in the revised pay structure either (a) w.e.f.
01.01.2006 with reference to his pre-revised scale as on
01.01.2006; or (b) w.e.f. the date of his financial
upgradation under ACP with reference to the pre-revised
scale granted under ACP. In case of option (b), he shall
be entitled to draw his arrears of pay only from the date
of his option i.e. the date of financial upgradation under
ACP.
6.2 In cases where financial upgradation had been
granted to Government servants in the next higher scale
in the hierarchy of their cadre as per the provisions of
the ACP Scheme of August, 1999, but whereas as a result
of the implementation of Sixth CPC's recommendations,
the next higher post in the hierarchy of the cadre has
been upgraded by granting a higher grade pay, the pay
of such employees in the revised pay structure will be
fixed with reference to the higher grade pay granted to
the post. To illustrate, in the case of Jr. Engineer in
CPWD, who was granted 1stACP in his hierarchy to the
grade of Asstt. Engineer in the pre-revised scale of
Rs.6500-10500 corresponding to the revised grade pay of
Rs.4200 in the pay band PB-2, he will now be granted
grade pay of Rs4600 in the pay band PB-2 consequent
upon upgradation of the post of Asstt. Enggs. in CPWD
by granting them the grade pay of Rs.4600 in PB-2 as a
result of Sixth CPC's recommendation. However, from
the date of implementation of the MACPS, all the
financial upgradations under the Scheme should be done
strictly in accordance with the hierarchy of grade pays in
pay bands as notified vide CCS (Revised Pay) Rules,
2008.

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XXX XXX XXX
8. Promotions earned in the post carrying same grade
pay in the promotional hierarchy as per Recruitment
Rules shall be counted for the purpose of MACPS.
8.1 Consequent upon the implementation of Sixth CPC's
recommendations, grade pay of Rs. 5400 is now in two
pay bands viz., PB-2 and PB-3. The grade pay of Rs.
5400 in PB-2 and Rs.5400 in PB-3 shall be treated as
separate grade pays for the purpose of grant of
upgradations under MACP Scheme.
6. The petitioners’ request was considered by a Screening
Committee, which after deliberations rejected it on 28.01.2016. The
Screening Committee reasoned as follows:
“13. The MACP Scheme in para 28 makes things amply
clear that the placement is required to be made in the
immediate next higher grade pay in the hierarchy of the
recommended revised pay bands and grade pay as given
in Section 1, para A of the Ist Schedule of the
CCS(revised pay) Rules, 2008. Thus, it may be a case
that when a person gets the benefit of MACP Scheme, he
is placed in the next grade pay as given in the Schedule
which may be lower as compared to the person getting
regular promotion in which eventuality he may get a
higher grade pay. The illustrations read as under:-
“28. Illustrations:
B. If a Government servant (LDC) in PB-I in the
grade pay of Rs.1900 is granted 1st financial upgradation
under the MACPS on completion of 10 years of service in
the PB-I in the Grade Pay of Rs.2000 and 5 years later
he gets 1st regular promotion (UDC) in PB-I in the grade

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Pay of Rs.2400, the 2nd financial upgradation under
MACPS (in the next Grade Pay w.r.t. Grade Pay held by
Government servant) will be granted on completion of 20
years of service in PB-I in the grade Pay of Rs.2800. On
completion of 30 years of service, he will get 3rd ACP in
the Grade Pay of Rs. 4200. However, if two promotions
are earned before completion of 20 years, only 3rd
financial upgradation would be admissible on completion
of 10 years of service in Grade Pay from the date of 2nd
promotion or at 30th year of service, whichever is
earlier.”
14. Illustration under Para 28(B) makes it clear that for
a person working under Grade Pay of Rs.1900, the first
MACP on completion of 10 years is in the grade pay of
Rs.2000 which is not a grade pay if a person gets
promotion in the hierarchy which is, Grade Pay of Rs.
2400 granted on 1st promotion. Meaning thereby, a
person completing 10 years gets a grade pay of Rs.2000
which is mentioned in Section 1, Part-A of the first
schedule of the CCS (Revised Pay) Rules, 2008, whereas
if the same person gets promotion before 10 years, he
gets a grade pay of Rs. 2400 which is the grade pay given
on promotion from the grade pay of Rs. 1900.
15. Going a step further, the frequently asked
questions on the Modified Assured Career Progression
Scheme in its para 16 make things clearer, where the
question is the same which reads as under:
“16. Whether non-functional scale of Rs. 8000-13500
(revised to grade pay of Rs.5400 in PB 3) would be
viewed as one financial upgradation for the purpose of
MACPS.”
16. The answer is a categorical “Yes”, in terms of
para 8.1 of Annexure I of MACPS dated 19.05.2009”. If

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we have a look at para 8.1 of Annexure I, it is clarified as
under:
“Consequent upon the implementation of Six CPC‟s
recommendations, grade pay of Rs. 5400 is now in two
pay bands viz., PB-2 and PB-3. The grade pay of Rs.5400
in PB-2 and Rs. 5400 in PB-3 shall be treated as
separate grade pays for the purpose of grant of
upgradations under MACP Scheme.”
17. If we look at the statement showing pay scales in
the Delhi High Court w.e.f. 1.1.2006 also, the categories
of SJA, SJT, Sr. Asst. Librarian, Reader, SPA and Court
Officer have kept in Group-B, PB-2 Rs.9300-34,800 plus
grade pay of Rs.4800 which changes to PB-3 in the scale
of Rs.15,600-39100 plus grade pay of Rs.5400 on
completion of 4 years. This change of Pay Band-3 on
completion of four years‟ service was conveyed vide
letter No.F.6/24/08-Judl. Suptd law/1264 dated
19.11.2013.
XXX XXXX
21. The applicants herein referred to the report of the
Screening Committee of Delhi District Courts apart from
some judgments stated to be on the issue. The Screening
Committee report has discussed the provisions of the
ACP Scheme which clearly states that financial
upgradation under the Scheme shall be given to the next
higher grade in accordance with the existing hierarchy in
a cadre. The basic difference between the ACP and the
MACP scheme is that the ACP Scheme provided for next
higher grade in accordance with the existing hierarchy in
a cadre/category of posts whereas 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 I, Part-A of the first

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schedule of the CCS (Revised Pay) Rules, 2008. The said
Schedule of MACPS provides for next higher grade pay
from Rs. 4800 as Rs. 5400 and not Rs. 6600. Further, it
may also be pointed out that the ACPS provided for two
financial upgradations on completion of 12 years and 24
years of regular service whereas the MACPS provides
for three financial upgradations on completion of 10, 20
and 30 years. The judgments discussed in the Screening
Committee Report of District Courts as referred to by the
applicants belong to the period when the MACP Scheme
was not introduced as the new Scheme only in the year
2009 and the Report came immediately soon thereafter
i.e. on 21.9.2010. The judgments referred to by the
applicants relating to CAT and Hon‟ble Punjab and
Haryana High Court are not on the issue of nonfunctional
scale of Rs. 5400 but on lower scales.
Moreover, the judgements relied upon by the applicants
are in personem and not in rem. These do not lay down
any guidelines for all the cases of similarly placed
persons nor has the DOPT come out with any OM on the
issue enveloping all similarly placed persons in the
Government of India. Rather, DOPT has come out with a
clarification in the form of FAQs which is available on
the website of the DOPT that the non-functional grade
pay is to be treated as upgradation. Thus, the argument
of the applicants that MACP is to be granted on
promotional hierarchy and not on next higher Grade Pay
does not hold good.
22. If we analyze the four cases placed before us for
grant of III MACP, we find that all of them have got two
promotions and one upgradation on different dates, viz.
Mr. Yugesh Mohan was appointed as LDC on
03.05.1984, he got promotion as UDC on 01.04.1994
notionally and on 05.09.1998 on actual basis. Second
promotion was in the shape of SJA on 13.07.2004 and on

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13.07.2008 he was given third upgradation in the Grade
Pay of Rs. 5400/-. Mr. Hari Ram was appointed as
02.09.1981 as temporary LDC, on 01.04.1994 became
UDC notionally and on 05.09.1998 actually, got his
second promotion on 09.10.2007 and third upgradation
on 09.10.2011. Likewise, Mr. Mahesh Kumar also was
appointed on 12.03.1984 as LDC, got first promotion as
UDC on 01.04.1994 on notional basis and on 05.09.1998
on actual basis. He got second promotion on 24.11.2006
and third upgradation in the grade pay of Rs. 5400 on
18.08.2004 on completion of penalty imposed vide this
court‟s order dated 04.09.2012. Mr. C.P. Vig got his
appointment on 22.10.1984 as LDC, on 13.5.1999 as
UDC, as SJA on 18.07.2008 and in the end, got third
upgradation on 18.07.2012.
7. Ms. Jyoti Singh, learned senior counsel for the petitioners, argued
that the denial of the third financial upgradation/MACP in the
circumstances is not justified. She urges that employees of the District
Courts were granted the MACPS benefit disregarding the non-functional
scale of `8000-13500 in the Grade Pay of `5400/- which the petitioners
now have been denied, thus resulting in discrimination.
8. Learned senior counsel highlights that the MACPS never
visualized that the post could have two grade pays as in this case and that
the entry of an employee into the second higher grade pay should be
treated as an upgradation. It was emphasized that the grant of nonfunctional
pay scale i.e. a higher grade pay of `5400/- is not dependent
upon fulfillment of any condition by the officer; nor is there – like in the

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case of selection grade, a stipulation as to the number of posts that can be
granted such higher grade pay. Plainly, every Reader, upon completion of
four years’ service automatically becomes entitled to `5400/- Grade Pay.
Thus, this is an integral part of the pay structure rather than as an
upgradation as was concluded by the Screening Committee, resulting in
denial of the benefit.
9. Learned counsel highlighted that the higher Grade Pay of `5400/-
was in fact recommended as part of the post of Section Officer/Private
Secretary by the Sixth CPC and was accepted as part of the pay in the
Central Civil Services (Revised Pay) Rules, 2008 [hereafter called “the
Pay Rules”]. The said Grade Pay has not been ordinarily granted in other
posts because of stagnation. Thus, the four year stipulation is not or never
was considered a stagnation period, entitling the incumbents to the higher
grade pay.
10. Learned senior counsel relied upon the judgment of the Division
Bench of this Court in UOI v. FC Jain [W.P.(C) 4664/2001, decided on
18.04.2002] which had indicated broadly how a beneficial scheme such
as the ACP ought to be construed and stated further that the fitment into a
higher scale of pay ipso facto did not amount to promotion orders to
result into a deprivation of ACP benefit. A similar approach was indicted
by the Division Bench judgment of the Madras High Court in UOI v.
S. Balakrishnan [W.P.(C) 11535/2014, decided on 16.10.2014].
The Court had then observed that:

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“16. Since the MACP Scheme was framed in the larger
interest of employees, Court should give a liberal
construction. The primary attempt in such cases should
be to achieve the purpose and object of the policy and not
to frustrate it.
17. The Grade Pay in this case was initially granted
on non-functional basis. The Grade Pay of Rs. 5400/- in
PB-2 being non-functional scale, the same cannot be a
functional Grade to Assistant Director-II, who got
promotion from the post of Enforcement Officer.”
11. Mr. Sanjay Ghose, learned counsel for the Delhi High Court
submitted that the claim in these proceedings is not merited. He argued
that the decision whether to grant or not deny the pay benefit is a matter
of executive policy based upon an interpretation given by the concerned
agency or department. In the present case, the Screening Committee,
which considered the petitioners’ representations, rendered its
conclusions by an elaborate and reasoned order. There is no flaw in the
reasoning or conclusions calling for interference under Article 226 of the
Constitution.
12. It is urged besides that the petitioners’ claim is based upon a
narrow reading of the MACPS and the clarifications made applicable to
it. The benefit of a higher Grade Pay (“GP” hereafter) of `5400/- which
they enjoyed after completion of four years service in the existing lower
grade was in fact an upgradation which coincided wholly with the
concept of MACPS. Elaborating further, it was submitted that the
MACPS did not envision a third financial upgradation to the next

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promotional scale, but rather to the next higher grade (in the next higher
grade to that of the Reader), with the same pay scale. The basic pay scale
of the Reader – to which the petitioners were promoted, is in the scale of
pay of `9300-34800 with `4800/- as GP. The succeeding higher grade is
the same pay band or scale but with a higher GP of `5400/-. But for the
four year automatic upgradation, the benefit, in the normal
circumstances, to which the petitioners would be entitled, (as the third
financial upgradation benefit under the MACPS) is a 3% increase of their
existing pay scale. That would have meant a higher GP of `5400/-.
Having thus received that benefit six years in advance, their claim was
not justified and was correctly rejected.
13. Learned counsel relied upon the decision of a Division Bench of
this Court in Swaran Pal Singh and Ors. v. UOI and Ors. 2015 (3) AD
Del 432 where it was stated that in similar circumstances, the grant of the
demand for a higher Grade Pay as a third benefit under the MACPS was
rejected. Learned counsel also relied upon a clarification issued by the
Central Government on 20.06.2016 regarding the counting of nonfunctional
Grade Pay of `5400/-. That was in respect of a query made to
the Ministry of Finance, Central Board of Excise and Customs.
The clarification was as follows:
“2. The matter regarding counting of non-functional
Grade Pay of Rs. 5400/- in Pay Band-2 to the
Superintendents as one financial upgradation for the
purpose of MACP Scheme has been re-examined in

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consultation with Department of Personnel & Training
(DoP&T). DoP&T has now advised in consultation with
Department of Expenditure that the grant of nonfunctional
grade pay of Rs.5400 in PB-2 to the
Superintendents needs to be counted as one financial
upgradation for the purpose of MACP Scheme. DoP&T
has drawn attention to the specific provision in Para 8.1
of Annexure-1 of OM No.35034/3/2008-Estt. (D) dated
19th May, 2009 read with FAQ No.16 (copy enclosed)
which indicate that the Non-functional scale in Grade
Pay of Rs.5400 in PB-2 is to be treated as a financial
upgradation under MACP Scheme. DoP&T has also
advised that court cases including the case of R.
Chandrasekaran may be agitated/defended as per the
MACP Scheme vide DoP&T O.M. dated 19.5.2009.
3. The Board‟s letter of even number dated
26.05.2015 addressed to Chief Commissioner of Central
Excise, Chennai Zone in the case of Shri R.
Chandrasekaran has been treated as withdrawn.”
Sh. Ghose, learned counsel, relied upon the following query and
clarification applicable to the MACPS.
“16. Whether „Non-functional
scale‟ of Rs.8000-13500
(revised to grade pay of
Rs.5400 in PB-3) would be
viewed as one financial
upgradation for the
purpose of MACPS.
Yes, in terms of para 8.1 of
Annexure-I of MACPS dated
19.05.2009.”

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Analysis and Conclusions
14. The factual account which led to the dispute in this case shows that
the petitioners complain firstly of discrimination, because their
counterparts in the District Courts, due to the administrative decision of
the District Judge, have been granted the relief. It is secondly urged that
the grant of `5400/- GP is an integral part of their pay scale and cannot
be construed as placement in a higher scale, as to preclude their claim for
the grant of third financial upgradation. The respondents rely on Para 16
of the clarification issued by the Central Government in its FAQ through
a memorandum, to justify their position in declining the relief they claim.
15. In Swarn Pal Singh (supra) this court had examined a somewhat
similar claim for grant of financial upgradation under the MACP, in the
background of an employee’s previous placement in a higher GP; it had
relied on two previous decisions, and declined relief. The court had
reasoned as follows:
18. The grievance of the petitioners rests on the premise
that their counterparts who have got the benefit under the
ACP Scheme have been placed in the pay scales of the
next higher posts on completion of12 and 24 years
service. Whereas the petitioners by
implementation of MACPS, have been granted second
financial upgradation confined only to Grade Pay.
Resultantly, the petitioners would be getting lesser
pay than those whose pay is fixed with reference to the
pay scales granted to them under the ACP Scheme.

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19. The grievance of the petitioners as made, is however,
contrary to the fundamental concept on which MACPS
introduced through the 6th Central Pay Commission
operates. A bare reading of paragraph 2 of the MACPS
would make it clear that it is the next higher Grade
Pay which has to be given and not the Grade Pay in the
next hierarchical post, as was available under the ACP
Scheme with reference to the pay scale of the next above
hierarchical post. It is not in dispute that MACPS
supersedes ACP Scheme which was in force till August
31, 2008. Therefore, after August 31, 2008 any financial
upgradation would be confined to placement in the
immediate next higher grade pay in the hierarchy of the
recommended revised Pay Band. The use of word
„merely‟ in para 2 of the Scheme supports this
interpretation. Paragraph 2 further clarifies that the
higher Grade pay attached to the next promotional post
in the hierarchy of the concerned cadre/organization will
be given only at the time of regular promotion.
Therefore, the claim that the petitioners should also be
placed in the replacement Pay Band applicable to the
next promotional post in the hierarchy as was available
under the ACP Scheme is misplaced.
20. This very issue had come up for consideration before
this Court in W.P (C) No. 3420/2010 R.S
Sengor v. Union of India decided on April 04, 2011.
In said case the petitioners were in PayBand-1 and had a
corresponding grade pay of Rs. 1900/-. The next
hierarchical post was also in PayBand-1 but had a grade
pay of Rs. 2400/-. The petitioners therein claimed that
since the next hierarchical post had a pay band of Rs.
2400/-, they should, on financial upgradation, under the
MACPS, be granted the grade pay of Rs. 2400/-.
However, what the respondents in that case had done

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was to grant the petitioner therein the grade pay of Rs.
2000/- which was the next higher grade pay though, not
the grade pay corresponding to the next hierarchical
post. Dismissing the writ petition the Division Bench held
as under:-
“10. The question would be whether the hierarchy
contemplated by the MACPS is in the immediately
next higher Grade Pay or is it the Grade Pay
of the next above Pay Band.
11. Whatever may be the dispute which may be
raised with reference to the language of paragraph
2 of the MACPS the illustration as per para 4 of
Annexure I to the OM, contents whereof have been
extracted hereinabove, make it clear that it is the
next higher Grade Pay which has to be given and
not the Grade Pay in the next hierarchical post
and thus we agree with the Respondents that
Inspectors have to be given the Grade Pay Grade
Pay after 10 years in the sum of Rs. 4800/- and not
Rs. 5400/- which is the Grade Pay of the next Pay
Band and relatable to the next hierarchical post.
To put it pithily, the MACPS Scheme requires the
hierarchy of the Grade Pays to be adhered to and
not the Grade Pay in the hierarchy of posts.”
21. This view has since been followed by another
Division Bench of this Court in the decision reported
as 193 (2012) DLT 577 Union of India v. Delhi Nurses
Union (Regd.)
22. Therefore, merely because others who have been
financial upgradation the pay scale of the promotional
post in the hierarchy under the ACP Scheme and by

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operation of para 6 of MACPS, their pay is fixed with
reference to the pay scale granted to them under the
ACP Scheme, the petitioners would not get any right to
be placed in such scales, since the language of the
scheme makes it clear that the financial upgradation
under ACP/MACPS are different than regular
promotions in the grade.
23. Even otherwise, as held in R.S Sengor's case (supra)
the MACPS requires the hierarchy of grade pay to be
adhered to and not the grade pay in the
hierarchy of posts. Both the schemes conferred benefit of
financial upgradation to tide over the problems
of stagnation and operate in their respective fields.
Though, there is no challenge to the MACPS or any part
thereof, yet it is beyond any cavil that the Courts by
judicial review cannot interfere with a policy decision of
a State unless it is shown to be patently arbitrary,
discriminatory or mala-fide. In this case, there is no such
claim made by the petitioners.”
It is noticed that in a recent judgment (Union of India v V.K. Sharma
2017 SCC OnLine Del 8415) the issue was gone into, by a Division
Bench. In that case, the officials were from the Central Secretariat
Stenographer's Service (CSSS). They joined the Cabinet Secretariat (SW)
in 1970s, also known as Research and Analysis Wing (R&AW) as
Personal Assistants and were superannuated in ranks of Private Secretary
(PS)/Principal Private Secretary (PPS)/ Under Secretary (US) at different
points of time. During their tenure, they were once promoted as PS and
with a pay scale equivalent to PB-2 with Grade Pay `4800/- before the

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Assured Career Progression Scheme (ACP) was introduced by the
Government w.e.f. 09.08.1999. They were given second financial
upgradation on completion of 24 years of service under the ACP scheme
and were placed in the pay scale equivalent to PB-3 with Grade Pay of
`6600/-. In terms of recommendations of the 5th Central Pay
Commission (CPC), at the time when they were given the second
financial upgradation to the rank of PPS/US under the ACP scheme, there
was no concept of Grade Pay and the financial upgradation under the
ACP scheme was to the next higher rank available in the hierarchy.
Upon implementation of the MACP, 3rd financial upgradation was given
to them on 22.10.2009 placing them in PB-3 in the scale of
`15,600-39,100 with Grade Pay of `7600/-. This was sought to be
recalled; their application before the Central Administrative Tribunal
succeeded. The court held that:
“11. As per the admitted facts of the case, the
respondents were covered under the ACP scheme when it
was introduced. Since they had already earned one
promotion, they were given 2nd ACP on completion of 24
years of the service. As per the scheme of the ACP, they
were put in the next scale in the hierarchy. After the 5th
Pay Commission, their existing scales were revised and
as per their existing scale, the 5th Pay Commission put
them in the category of PB-3 in the scale Rs. 15600-
39100 with the Grade Pay of Rs. 6600/-. It, therefore, is
clear that they earned the Grade Pay of Rs. 6600 by
virtue of their existing pay scale at the time when the 5 th
Pay Commission was implemented. They had earned that

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Pay Scale by virtue of grant of 2nd ACP. The MACP
scheme was introduced w.e.f. 01.09.2008. Under MACP
scheme, the employees covered under the scheme became
entitled for upgradation to the next Grade Pay after 10
years, 20 years and 30 years of the service. The
respondents, who were already in the category of PB-3,
demanded the benefits under 3rd MACP to which they
become entitled after completion of 30 years of their
service. First it was granted, and then it was withdrawn
on the advice of PAO and DOP&T.
12. The plea of the petitioners is that since the Pay Band
Scale PB-3 starts with the Pay Band Scale Rs. 15600-
39100- with the Grade Pay of Rs. 5400/- , therefore,
when their scale was revised, it should be presumed that
they were entitled for the Grade Pay of Rs. 5400 on grant
of 2nd ACP is totally fallacious. It is equally fallacious
for the petitioners to claim that the grant of Grade Pay of
Rs. 6600/- tantamounted to grant of the benefits of 3rd
MACP.
13. Admittedly, on the grant of 2nd ACP, the respondents
were put in the Pay Scale of Rs. 10,000-15200/- (5th
CPC) and under the 5th Pay Commission, the
corresponding scale that was given to them in PB-3 was
Rs. 15,600-39,100 with the Grade Pay of Rs. 6600/-. It,
therefore, is clear that they were getting the Grade Pay
of Rs. 6600 by virtue of them being placed in the said
corresponding Pay Scale equivalent to Rs. 10000-325-
15200 pursuant to grant of 2nd ACP. They, therefore,
has earned Grade Pay of Rs. 6600/- on revision of their
pay by virtue of 5th Pay Commission and without
reference to upgradation of 3rd MACP. The respondents,
therefore, were entitled for the benefits under 3rd MACP
after they become eligible for it.

W.P.(C) No.9357/2016 Page 20 of 24

14. Learned counsel for the respondents has drawn our
intention to the Notification of Ministry of Finance,
G.S.R. 622 (E) dated 29.08.2008, the First Schedule,
Part-A, Section I which clearly shows that PB-3 which
contains the Pay Scale Rs. 15600-39100 also contains
the next Grade Pay of Rs. 7600. Therefore, it is clear that
the respondents, under 3rd MACP, were entitled for
upgradation to the next Grade Pay which is Rs. 7600/-. It
is also a fact that initially the petitioners had given the
Grade Pay of Rs. 7600/- to the respondents, but
subsequently on the basis of communications of PAO and
advice of DOP&T, it was withdrawn, which act of
petitioners was illegal and unjustified.”
16. In another previous decision (Suresh Chand Garg v Govt. of NCT
of Delhi 2016 SCC Online 3124) the court firstly noticed the illustration
in para 28.(B) of the MACPS, which is as follows:
“If a Government servant (LDC) in PB-1 in the Grade
Pay of Rs. 1900 is granted 1st financial upgradation
under the MACPS on completion of 10 years of service in
the PB-1 in the Grade Pay of Rs. 2000 and 5 years later
he gets 1st regular promotion (UDC) in PB-1 in the
Grade Pay of Rs. 2400, the 2nd financial upgradation
under MACPS (in the next Grade Pay w.r.t Grade Pay
held by Government servant) will be granted on
completion of 20 years of service in PB-1 in the Grade
Pay of Rs. 2800. On completion of 30 years of service, he
will get 3rd ACP in the Grade Pay of Rs. 4200. However,
if two promotions are earned before completion of 20
years, only 3rd financial upgradation would be admissible
on completion of 10 years of service in Grade Pay from
the date 2nd promotion or at 30th year of service,
whichever is earlier.”

W.P.(C) No.9357/2016 Page 21 of 24

The court analyzed the effect of the provision as follows:
“Illustration in paragraph 28(B) reflects that where an
employee has earned two promotions before completion
of 20 years, he would be entitled to a third financial
upgradation on completion of 10 years of service in the
grade pay from the date of the second promotion or on
30 years of service, whichever is earlier. An employee
need not, therefore, have worked in the grade pay/pay
scale applicable to the second promotion for a period of
10 years, provided he had already worked for a period of
30 years on or after the MACP Scheme became
applicable. As on 1st September, 2008, the petitioner had
already put in more than 35 years of service. Therefore,
the petitioner would meet the qualifying continuous
regular service requirement and was entitled to a third
financial upgradation under the MACP Scheme.”
17. The court reasoned as follows, and allowed the claim for
upgradation:
“7. As noticed above, the petitioner was promoted as
Vice-Principal on 8th January, 2008, but the pay scale
given to him was the same as that was granted to him
under the ACP Scheme of Rs.7500-12000. After
implementation of the Sixth Pay Commission, the
petitioner was given grade pay of Rs.5400 in PB-3. Thus,
the first factor noticed in paragraph 17 though relevant,
was not a factor, which would deny and deprive the
petitioner of the benefit under the MACP Scheme. The
second factor recorded by the Tribunal in paragraph 17
refers to the existing pay scales/grade pay applicable to

W.P.(C) No.9357/2016 Page 22 of 24

TGT and PGT after implementation of the Sixth Pay
Commission and holds that the petitioner would not be
entitled to include and count the period from 21st
November, 1973 to 14th February, 1992. It is difficult to
accept the said reasoning. The question of financial
upgradation is not to be examined with reference to the
pay scale prescribed as a result of the Sixth Pay
Commission. The question and factual position is to be
examined by referring to actual facts, and whether or not
the government servant was granted financial
upgradation or higher pay after he was appointed with
reference to the regular service rendered by the
employee. According to the factual position, the
petitioner on appointment as PGT (Maths) on 15th
February, 1992 was already enjoying TGT senior scale
of Rs.1640-2900 granted with effect from 1st January,
1986 and, therefore, on appointment as PGT on 15 th
February, 1992, he did not draw an enhancement or
increase in pay scale. His pay scale continued to remain
Rs.1640-2900. The issue of review of pay scale may
become relevant in case there is merger of posts, etc.
Albeit, such a case is not made out by the respondents or
stated in the aforesaid paragraph of the impugned order.
With regard to paragraph 18, we have already referred
to paragraphs 1 and 2 of the MACP Scheme and
paragraph 28(B) and the appended illustration. It may
also be noted that the promotion earned by the petitioner
to the post of Vice-Principal from 8th January, 2008 was
inconsequential and without any financial upgradation,
for the petitioner was already enjoying the pay scale of
Rs.7500-12000 since 9th August, 1999 upon financial
upgradation under the ACP Scheme.
9. No other point or issue was raised and argued before
us.

W.P.(C) No.9357/2016 Page 23 of 24


10. For the aforesaid reasoning, we would allow the
present writ petition and set aside the order dated 6th
November, 2012 passed by the Tribunal and hold that the
petitioner would be entitled to a third financial
upgradation with effect from 1st September, 2008. As per
Section 1, Part-A of the first schedule of the Central Civil
Services (Revised Pay) Rules, 2008, the petitioner would
be entitled to grade pay of Rs. 6600 in PB-3 with effect
from the said date. The respondents will accordingly
calculate the arrears, including arrears of pension,
consequent to the petitioner‟s retirement on 28th
February, 2011 and pay the same to the petitioner
within a period of three months from the date a copy of
this order is made available to them. In case the said
payment is not made within three months, the
respondents will be liable to pay interest @ 8% per
annum on the aforesaid amount from the date of this
judgment till payment is made. The petitioner is also
entitled to costs, which are assessed at Rs.10,000/-. The
writ petition is accordingly allowed and disposed of in
the aforesaid terms.”
18. In the present case, it is noticed that the petitioners’ counterparts
were granted the third financial upgradation, although they, like them
were given the GP of 5400/-; they perform similar, if not identical
functions. FC Jain (supra) is an authority that if such broadly identical
functions are involved, both categories ought to be treated alike in regard
to interpretation of pay norms, by the organization. Therefore, the
principle of parity would result in acceptance of the petitioner’s claim.
The second aspect which this court would emphasize is that unlike
“stagnation” or performance based increments, or placement in higher
W.P.(C) No.9357/2016 Page 24 of 24
scales, the grant of 5400/- is automatic, after the happening of a certain
event, i.e. completion of four years’ service. This is quite different from
promotion or placement in the selection grade, which is performance
dependent or based on the availability of a few slots or vacancies (usually
confined to a portion of the entire cadre: say 20%). The last reason is that
both V.K. Sharma (supra) and Suresh Chand Garg (supra), in somewhat
similar circumstances, accepted that the grant of a higher grade pay did
not preclude the grant of the third financial upgradation.

High Court order on granting the third financial upgradation MACP

19. In view of the foregoing analysis, the court is of opinion that the
petition has to succeed. As a consequence, the respondents are directed to
revise and fix the pay scales by granting the third financial upgradation,
to the petitioners. They shall be entitled to consequential arrears and all
consequential benefits; the payments shall carry interest @ 9 per cent per
annum. The payouts shall be made to the petitioners within 8 weeks. The
petition is allowed, in these terms.
S. RAVINDRA BHAT, J
S.P.GARG, J
DECEMBER 20, 2017