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)
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.
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




