Central Govt Employee Can't Take Benefits Of Both MACPS & Time-Bound Promotion : Supreme Court Issues Directions On Recoveries
The Supreme Court held that a central government servant was not entitled to the benefit of both time-bound promotion scheme as well as the benefit of financial upgradation under the Modified Assured Career Progression Scheme."Grant of financial upgradations as well as promotions are to be duly accounted for and taken into consideration in the MACPS," the Court observed.Holding so, the...
The Supreme Court held that a central government servant was not entitled to the benefit of both time-bound promotion scheme as well as the benefit of financial upgradation under the Modified Assured Career Progression Scheme.
"Grant of financial upgradations as well as promotions are to be duly accounted for and taken into consideration in the MACPS," the Court observed.
Holding so, the Court issued directions regarding the recoveries from employees who were given double benefits under the MACPS as well as the grade pay under the Central Civil Services (Revised Pay) Rules, 2008(directions elaborated below).
At the same time, the Court directed the Union Government to not recover arrears from retired Government Employees and those set to retire within 1 year of this judgment who were given benefit by the Central Government of revised pay on the implementation of the Central Civil Services (Revised Pay) Rules, 2008.
A bench of Chief Justice of India Sanjiv Khanna and Justice Sanjay Kumar pronounced the judgment in civil appeals concerning the implementation of the Modified Assured Career Progression Scheme, 2008 (MACPS). The MACPS allows every government servant to get upgradation on completion of 10, 20, and 30 years of regular service from the date of Joining.
As per brief facts, the financial determination under the MACPS is as per the Central Civil Services (Revised Pay) Rules, 2008 (CCS RP Rules).
The issue arose if the MACPS would be applicable from January 1, 2006, the date on which the CCS RP Rules were enforced because certain Respondents were given benefits in the form of revision or higher pay scales after completion of 2-4 years of service.
The MACPS was considered by a three-bench of the Supreme Court in Union of India and Others v. M.V. Mohanan Nair (2020). It compared the MACPS with that of the Assured Career Progression Scheme (ACPS), introduced with effect from August 9, 1999, and continued till August 8, 31, 2008. It held that the two schemes differed in several aspects including two significant aspects.
First, the ACPS envisaged financial upgradations on completion of 12 years and 24 years of regular service without one or two promotions, as the case may be. Whereas the MACPS envisaged three financial upgradations after completion of regular service of 10, 20, and 30 years without promotions and continuing on the same Grade Pay for a decade.
Second, the financial upgradation under the ACPS was to the pay scale of the next higher promotional post in the service. Whereas, under the MACPS, financial upgradation was not with reference to the next higher promotional post but to the next higher grade pay in the scale of pay, as notified upon implementation of the CCS RP Rules.
This decision was elaborated in other judgments of the Court including in Union of India and Others v. Ex.HC/GD Virender Singh (2022) which observed that the MACPS would be applicable with effect from October 1, 2008. The Virender Singh judgment reiterated that under the MACPS, eligible Government employees are entitled to financial degradation equivalent to the immediate Grade Pay in the hierarchy of the Pay Bands.
In the present case, after the implementation of the CCS RP Rules, some Respondents (in service as Pharmacists or Superintendents), on completion of 2 or 4 years of service, respectively, became entitled to non-functional upgradation in Pay Bands-2 with Grade Pay of Rs. 4200 and 5200rs respectively. Before the non-functional upgradation, the pay scale was with the Grade Pay of Rs. 2800 and 4800 respectively.
Later, the Union Government initiated recovery of arrears from them.
What did the Supreme Court say?
The Supreme Court held that the Respondents would be entitled to the benefits of the MACPS only after taking into consideration all the financial upgradation earned by them in terms of the CCS RP Rules. It observed: "Financial upgradations under the said Rules have to be accounted for and will be treated as financial upgradations earned for the purpose of reckoning the 10-year intervals and the three assured financial upgradations, in terms of Grade Pay, under the MACPS."
But, the Court deemed it appropriate to direct that the Union Government shall not effect any recovery of arrears from the retirees or those who are set to retire within 1 year of the date of this judgment. In other cases, it held that recoveries may be made after duly issuing notice to the concerned employee. However, the recovery must be proportionate recovery over a period not exceeding 2 years and no interest shall be recovered on the said amount.
It clarified that the pension and the pay scale, which are payable shall be re-determined on the basis of this judgment and will apply prospectively with effect from January 1, 2025.
Case Details: UNION OF INDIA & ORS. v. N.M. RAUT & ORS., SLP(C) NO. 8015 OF 2022)
Citation : 2024 LiveLaw (SC) 1040