High Court Dismisses Petitions by Union of India Challenging CAT Orders on MACP Scheme Interpretation. Financial upgradation under Modified Assured Career Progression Scheme is to be granted from the date of completion of 10, 20, and 30 years of service, not from the date of regular promotion, as per Office Memorandum dated 19.5.2009.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The judgment involves two writ petitions filed by the Union of India and other Central Government authorities challenging the orders of the Central Administrative Tribunal (CAT) which allowed the applications of the respondent employees, P.M. Wagh and Mrs. Dhanashree Vairagare, granting them financial upgradation under the Modified Assured Career Progression Scheme (MACP) from the date of completion of 10, 20, and 30 years of service, rather than from the date of their regular promotion. The background of the case is that the Central Government introduced the Assured Career Progression (ACP) scheme in 1999, which provided assured upgradation after 12 and 24 years of service. This was modified by an Office Memorandum (OM) dated 19.5.2009, introducing the MACP scheme, which granted financial upgradation upon completion of 10, 20, and 30 years of service. The respondent employees, who had not received regular promotions, claimed that they were entitled to the upgradation from the date they completed the specified years of service. The CAT allowed their claims, leading to the present petitions. The legal issue before the High Court was the interpretation of para 11 of the OM dated 19.5.2009, which states that the financial upgradation under MACP shall be granted upon completion of 10, 20, and 30 years of service. The petitioners argued that the upgradation should be granted from the date of regular promotion, while the respondents contended that it should be from the date of completion of the specified years of service. The court analyzed the scheme and held that the MACP is a separate scheme intended to provide relief to employees who have stagnated due to lack of promotions. The financial upgradation is not a promotion but a financial benefit to mitigate stagnation. The court further held that the upgradation is to be granted from the date of completion of the specified years of service, as the scheme is prospective in nature and applies from the date of its issuance. The court dismissed the petitions, upholding the orders of the CAT.

Headnote

A) Service Law - Modified Assured Career Progression Scheme - Interpretation of Para 11 - Office Memorandum dated 19.5.2009 - The issue was whether financial upgradation under MACP is to be granted from the date of completion of 10, 20, and 30 years of service or from the date of regular promotion. The court held that the upgradation is to be granted from the date of completion of the specified years of service, as the scheme is intended to provide relief to employees who have not received regular promotions. (Paras 2-10)

B) Service Law - Financial Upgradation - Regular Promotion - Distinction - The court distinguished between financial upgradation under MACP and regular promotion, noting that MACP is a safety net for employees who have stagnated due to lack of promotions. The upgradation is not a promotion but a financial benefit to mitigate stagnation. (Paras 5-8)

C) Service Law - Office Memorandum - Retrospective Effect - The court considered whether the MACP scheme has retrospective effect and held that the scheme applies from the date of its issuance, i.e., 19.5.2009, and the financial upgradation is to be granted prospectively from the date of completion of the specified years of service after the scheme came into force. (Paras 9-10)

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Issue of Consideration

Whether para 11 of the Office Memorandum dated 19.5.2009, which grants financial upgradation under the Modified Assured Career Progression Scheme (MACP) upon completion of 10, 20, and 30 years of service, should be interpreted to mean that the upgradation is to be granted from the date of completion of the specified years of service or from the date of regular promotion.

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Final Decision

Both writ petitions are dismissed. The orders of the Central Administrative Tribunal are upheld. The financial upgradation under MACP is to be granted from the date of completion of 10, 20, and 30 years of service.

Law Points

  • Interpretation of Office Memorandum
  • Modified Assured Career Progression Scheme
  • Financial upgradation
  • Regular promotion
  • Service period calculation
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Case Details

2015 LawText (BOM) (01) 86

Writ Petition No.3722 of 2013 with Writ Petition No.5296 of 2013

2015-01-09

A.P. Bhangale, C.V. Bhadang

Mrs. Gauri Venkatraman for petitioners, Shri A.B. Bambal for respondent no.1 in WP 3722/2013, Shri M.M. Sudame for respondent no.1 in WP 5296/2013

Union of India, through its Secretary, Ministry of Health and Family Welfare, and others

P.M. Wagh and Central Administrative Tribunal

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Nature of Litigation

Writ petitions challenging orders of Central Administrative Tribunal regarding interpretation of MACP scheme

Remedy Sought

Petitioners (Union of India) sought to quash CAT orders granting financial upgradation to respondents from date of completion of service years

Filing Reason

Dispute over interpretation of para 11 of OM dated 19.5.2009 regarding date from which financial upgradation under MACP is to be granted

Previous Decisions

Central Administrative Tribunal allowed applications of respondents, granting financial upgradation from date of completion of 10, 20, and 30 years of service

Issues

Whether financial upgradation under MACP is to be granted from the date of completion of 10, 20, and 30 years of service or from the date of regular promotion Whether the MACP scheme has retrospective effect

Submissions/Arguments

Petitioners argued that financial upgradation should be granted from the date of regular promotion Respondents argued that upgradation should be from the date of completion of specified years of service as per the scheme

Ratio Decidendi

The MACP scheme is a separate scheme intended to provide relief to employees who have stagnated due to lack of promotions. The financial upgradation is not a promotion but a financial benefit to mitigate stagnation. The upgradation is to be granted from the date of completion of the specified years of service, as the scheme is prospective in nature and applies from the date of its issuance.

Judgment Excerpts

Both these petitions involve a common question as to interpretation to be placed on para 11 of the Office Memorandum (OM) dated 19.5.2009, by which the Modified Assured Career Progression Scheme (MACP) was made applicable to the Central Government employees. The court held that the financial upgradation under MACP is to be granted from the date of completion of the specified years of service.

Procedural History

The Central Administrative Tribunal allowed the applications of the respondent employees. The Union of India and other authorities filed writ petitions before the High Court challenging those orders. The High Court heard both petitions together and dismissed them, upholding the CAT orders.

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