Supreme Court Dismisses Appeal in Service Law Dispute Over Financial Upgradation Under ACP and MACP Schemes. The Court upheld the respondent's entitlement to financial benefits, distinguishing the case from precedent involving non-functional upgradation, and noted compliance with the Tribunal's order without ruling on the time-bar objection raised by the appellants.

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Case Note & Summary

The appeal arose from a dispute over financial upgradation benefits under service schemes. The respondent, a TV News and Film Librarian at Doordarshan Kendra, Bangalore, joined service on 11th March 1985. She received her first financial upgradation under the Assured Career Progression (ACP) Scheme, 1999 on 31st May 2002, effective from 9th August 1999. Under the ACP Scheme, she became entitled to a second financial upgradation effective from 11th March 2009. However, the Modified Assured Career Progression (MACP) Scheme, 2009 superseded the ACP Scheme effective from 19th May 2009. The MACP Scheme provided for placement in the next higher grade pay after 10, 20, and 30 years of service and stipulated that past upgradations under the ACP Scheme to grades with the same Grade Pay due to pay scale mergers would be ignored. The respondent was granted the second benefit under the MACP Scheme with Grade Pay of Rs.4,800/- effective from 1st September 2008 and the third benefit with Grade Pay of Rs.5,400/- effective from 11th July 2015, which she accepted without demur. On 4th October 2016, she submitted a representation claiming benefits under the ACP Scheme for second financial upgradation with Grade Pay of Rs.6,600/- from 11th March 2009 and under the MACP Scheme for third financial upgradation with Grade Pay of Rs.7,600/- from 11th March 2015. This representation was rejected on 5th November 2016. The respondent challenged the rejection before the Central Administrative Tribunal, Bengaluru, which allowed her original application on 1st August 2017, relying on the High Court's decision in B. D. Kadam & ors. v. Union of India & ors. The High Court affirmed this decision on 8th March 2018, dismissing the appellants' writ petition. The appellants appealed to the Supreme Court. The core legal issues were whether the respondent's claim was time-barred under Section 21 of the Administrative Tribunals Act, 1985 and whether she was entitled to the claimed financial upgradation benefits. The appellants argued that the original application was time-barred and cited subsequent developments, including the dismissal of an SLP against B. D. Kadam and a pending SLP on a review petition, to urge reconsideration. They also referenced Union of India v. N.M. Raut, where financial upgradations were interdicted due to non-functional upgradation. The respondent's position was that the Tribunal's order had been complied with, and the claim was within limitation as per her declaration. The Supreme Court analyzed the facts, noting that the Tribunal's order had been complied with and the SLP against B. D. Kadam was dismissed. It distinguished N.M. Raut, as that case involved non-functional upgradation, whereas the respondent's claim was based on stagnation and delay under the ACP Scheme. On limitation, the court found the appellants' objection sound based on precedents like C. Jacob v. Director of Geology and Mining, which discourage belated claims, but observed that both the Tribunal and High Court had not ruled on it. The court held that issuance of notice in a pending SLP was irrelevant and N.M. Raut did not detrimentally affect the respondent. Ultimately, the court dismissed the appeal without interfering with the impugned order, concluding that the objection on limitation was not addressed by lower forums and the substantive claim did not warrant interference.

Headnote

A) Service Law - Limitation - Section 21 Administrative Tribunals Act, 1985 - The appellants raised an objection that the original application was time-barred, but both the Tribunal and High Court did not rule on it. The Supreme Court found the objection sound, citing precedents on belated approaches in service disputes, but did not interfere with the impugned order as the Tribunal's order had been complied with and the issue was not pressed earlier. Held that the objection was not considered by lower forums and the appeal was dismissed without addressing it on merits (Paras 13-18).

B) Service Law - Financial Upgradation - Assured Career Progression (ACP) Scheme, 1999 and Modified Assured Career Progression (MACP) Scheme, 2009 - The respondent claimed benefits under the ACP Scheme for second financial upgradation and under the MACP Scheme for third financial upgradation. The Tribunal allowed the application based on B. D. Kadam & ors. v. Union of India & ors., which was affirmed by the High Court. The Supreme Court noted compliance with the Tribunal's order and distinguished the case from Union of India v. N.M. Raut, where financial upgradation was interdicted due to non-functional upgradation. Held that the respondent's claim was distinct and the appeal was dismissed without interference (Paras 1-12).

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Issue of Consideration

Whether the respondent's original application before the Tribunal was time-barred under Section 21 of the Administrative Tribunals Act, 1985, and whether the respondent was entitled to financial upgradation benefits under the ACP and MACP schemes.

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Final Decision

The Supreme Court dismissed the appeal without interfering with the impugned order, holding that the objection on limitation was not ruled on by lower forums and the substantive claim did not warrant interference, with compliance already secured.

Law Points

  • Limitation period for service disputes under Section 21 of the Administrative Tribunals Act
  • 1985
  • Interpretation of Assured Career Progression (ACP) Scheme
  • 1999 and Modified Assured Career Progression (MACP) Scheme
  • 2009
  • Principle against belated claims in service matters
  • Distinction between financial upgradation under ACP and MACP schemes
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Case Details

2025 LawText (SC) (4) 126

CIVIL APPEAL NO. /2025 [ ARISING OUT OF SLP (C) NO.6289/2019 ]

2025-04-24

Dipankar Datta

THE CHIEF EXECUTIVE OFFICER & OTHERS

S. LALITHA & OTHERS

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Nature of Litigation

Appeal against High Court order dismissing writ petition that challenged Tribunal's decision allowing original application on financial upgradation benefits under service schemes.

Remedy Sought

Appellants sought to overturn High Court's dismissal and challenge respondent's entitlement to financial upgradation benefits.

Filing Reason

Appellants felt aggrieved by Tribunal's judgment and order allowing respondent's original application, which was affirmed by High Court.

Previous Decisions

Tribunal allowed original application on 1st August 2017 based on B. D. Kadam & ors. v. Union of India & ors.; High Court dismissed writ petition on 8th March 2018; SLP (Civil) D No. 29605 of 2017 dismissed on 27th January 2020; review petition rejected by High Court on 7th March 2023; SLP (Civil) D. No. 45401 of 2023 pending.

Issues

Whether the original application was time-barred under Section 21 of the Administrative Tribunals Act, 1985. Whether the respondent was entitled to financial upgradation benefits under the ACP and MACP schemes.

Submissions/Arguments

Appellants contended that the original application was time-barred and ought to have been dismissed, and urged reconsideration based on subsequent developments including pending SLP. Respondent argued that the application was within limitation per Section 21 and that the Tribunal's order had been complied with.

Ratio Decidendi

The court distinguished the case from precedent involving non-functional upgradation, found the limitation objection sound but not addressed earlier, and dismissed the appeal as the Tribunal's order had been complied with and no interference was warranted.

Judgment Excerpts

The challenge in this appeal is to a short order of the High Court of Karnataka at Bengaluru dated 8th March, 2018 dismissing a writ petition that the appellants had presented before it. The respondent joined as TV News and Film Librarian (Library & Information Assistant) at Doordarshan Kendra, Bangalore on 11th March, 1985. The appellants, therefore, contend that the issue is still at large as to whether the respondent was entitled to succeed in her claim before the Tribunal and the High Court. The respondent had pleaded in paragraph 3 of the O.A. as follows: '3. LIMITATION : The Applicant further declares that the application is within the limitation period prescribed in Section 21 of the Administrative Tribunal Act, 1985 as the Applicant is challenging the orders passed by the 5th Respondent at Annexure A-11 dated 5.11.2016 against the claim of the Applicant.'

Procedural History

Respondent submitted representation on 4th October 2016; rejected on 5th November 2016; filed original application before Tribunal; Tribunal allowed on 1st August 2017; appellants filed writ petition before High Court; High Court dismissed on 8th March 2018; appellants appealed to Supreme Court; leave granted; SLP (Civil) D No. 29605 of 2017 dismissed on 27th January 2020; review petition rejected on 7th March 2023; SLP (Civil) D. No. 45401 of 2023 pending.

Acts & Sections

  • Administrative Tribunals Act, 1985: Section 21
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