MACP Scheme Applicable From 01.09.2008; Entitlement To Financial Upgradation Is To Immediate Next Grade Pay & Not Next Promotional Post : Supreme Court

The Supreme Court has held that the Modified Assured Career Progression Scheme is applicable with effective from 01.09.2008 and not from 01.01.2006 (the date from which the recommendations of the 6th Central Pay Commission are effective).

The Court further held that under MACP, the entitlement is to financial upgradation equivalent to the immediate next grade pay and not to the immediate next promotional post.

Deciding a batch of appeals filed by the Union of India(Union of India versus Ex. HC/GD Virender Singh and connected cases), a bench comprising Justices Sanjiv Khanna and Bela M Trivedi set aside the judgment of the High Court which had held that MACP scheme is applicable with effect from 01.01.2006 and that under the MACP Scheme the employees are entitled to financial upgradation equivalent to the next promotional post.

However, as regards the MACP scheme for Central Armed Forces, the Court held that fulfilment of pre-promotional norms for grant of financial upgradation would not be insisted for personnel who, for administrative or other reasons, could not be sent or undergo the pre-promotional course. The Union Government conceded before the Court to not insist upon this requirement for personnel who could not undergo the pre-promotional course for administrative reasons.

As regards the date of applicability and the scope of MACP scheme, the bench followed the 3-judge bench decision in Union of India and Others v. M.V. Mohanan Nair(2020). In that judgment, it was explained that the MACP was introduced for the giving the benefit of financial upgradation to employees who were unable to get promotion despite putting in the requisite years of service. However, the financial upgradation is personal, does not amount to regular or actual functional promotion, and does not require creation of a new post. It has no relevance to the seniority position and principles of reservation are not applicable. Financial upgradation is granted to only those employees who have not received actual or functional promotion even after completion of the requisite service period, though otherwise, they fulfil the prescribed conditions for promotion.

Also, the effective date of MACP was scheme was held to be 01.09.2008 in the case Union of India v. R.K. Sharma and Others.

Although the employees sought reliance on a two-judge decision in Union of India and Others v. Balbir Singh Turn and Another(2018), which held the MACP scheme to be effective 01.01.2006, the bench did not accept it on the ground that the three-judge bench in MV Mohanan Nair has held otherwise.

The bench disposed of the appeals observing :

"The appeals filed by the Union of India are partly allowed and impugned judgments, to the extent they hold that the MACP Scheme applies with effect from 1.1.2006 and that under the MACP Scheme the employees are entitled to financial upgradation equivalent to the next promotional post, are set aside. MACP Scheme is applicable with effect from 1.9.2008 and as per the MACP Scheme, the entitlement is to financial upgradation equivalent to the immediate next grade pay in the hierarchy of the pay bands as stated in Section 1, Part A of the First Schedule to the Central Civil Services (Revised Pay) Rules, 2008. The third issue, which relates to the fulfilment of pre-promotional norms for grant of financial upgradation, is decided against the appellant-Union of India to the extent that this would not be insisted in the case of the Central Armed Forces personnel where, for administrative or other reasons, they could not be sent or undergo the pre-promotional course".

Case Title : Union of India versus Ex. HC/GD Virender Singh and connected cases

Citation : 2022 LiveLaw (SC) 699

Headnotes

Service Law - Modified Assured Career Progression (MACP) Scheme - MACP Scheme is applicable with effect from 1.9.2008 and as per the MACP Scheme, the entitlement is to financial upgradation equivalent to the immediate next grade pay in the hierarchy of the pay bands -fulfilment of pre-promotional norms for grant of financial upgradation would not be insisted for Central Armed Force personnel who, for administrative or other reasons, could not be sent or undergo the pre-promotional course (Para 12)

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