High Court of Karnataka Kalaburagi Bench Allows Writ Petition Challenging Central Administrative Tribunal Order Granting MACP-III Benefits. Selection as Postal Assistant After Limited Departmental Competitive Examination Treated as Promotion, Disentitling Employee from Third Financial Upgradation Under MACP Scheme, Relying on Precedent.

High Court: Karnataka High Court Bench: KALABURAGI
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Case Note & Summary

The case pertains to a retired Sub Postmaster who sought the benefit of the Modified Assured Career Progression (MACP) scheme, specifically the third financial upgradation (MACP-III). He was appointed as Group-D employee in the Postal Department on 17.06.1975, selected as Postal Assistant through Limited Departmental Competitive Examination (LDCE) on 13.08.1979, and granted financial upgradations under Time Bound One Promotion (TBOP) on 22.08.1995 and Biennial Cadre Review (BCR) on 01.01.2006. He retired on 31.05.2014 after attaining superannuation. On 01.06.2017, he submitted a representation for grant of MACP-III benefits, which was rejected. Consequently, he filed Original Application No.170/00045/2018 before the Central Administrative Tribunal, Bengaluru, seeking various reliefs including extension of MACP-III scheme benefits. The Tribunal, by order dated 26.10.2018, allowed the application holding that the matter was covered by its earlier order in O.A.No.377/2017, which had relied on orders of the Jodhpur and Madras Benches and the Madras High Court. Aggrieved, the Union of India filed the present writ petition under Articles 226 and 227 of the Constitution of India challenging the Tribunal's order. The main legal issue was whether the selection as Postal Assistant after clearing LDCE constituted a promotion, affecting eligibility for MACP-III. The petitioners contended that the MACP scheme is prospective and not applicable to the respondent, and that the Tribunal erred by relying on an earlier order; they placed reliance on a co-ordinate bench decision in Union of India vs. Bhimaraya V. Kattimani. The respondent argued that the matter was covered by another co-ordinate bench decision in Union of India vs. Faiyaz Hussain, wherein the matter was remanded to the Tribunal to be decided in terms of Supreme Court judgments in R.K. Sharma and K. Sudheesh Kumar, and that a government clarification dated 06.09.2021 could be considered. The High Court examined the history of the TBOP, BCR, and MACP schemes, noting that the MACP scheme was introduced on 01.09.2008 to address stagnation. The court identified that the crux of the issue was whether the selection as Postal Assistant after LDCE was a promotion or appointment. Following its earlier decision in Union of India vs. M.G. Shivalingappa (W.P.No.57935/2017) and Union of India vs. Smt. R.K. Kulkarni, the court held that such selection is to be treated as a promotion. Since the respondent had already received one promotion (on selection as Postal Assistant) and two financial upgradations under TBOP and BCR, he could not claim further benefit under MACP-III, as the scheme’s purpose is to alleviate stagnation, which did not arise in his case. The court thus found the Tribunal's order untenable.

Headnote

A) Service Law - Modified Assured Career Progression (MACP) Scheme - Entitlement to MACP-III after promotion and two financial upgradations - Office Memorandum dated 18.09.2009 - Selection as Postal Assistant after clearing Limited Departmental Competitive Examination (LDCE) is treated as a promotion - An employee who has already received one promotion and two financial upgradations under Time Bound One Promotion (TBOP) and Biennial Cadre Review (BCR) schemes is not entitled to the benefit of MACP-III, as the scheme is intended to address stagnation, and such stagnation does not arise when there has been promotion and upgradations - The High Court followed the decision in Union of India vs. M.G. Shivalingappa and noted that the Tribunal's order granting MACP-III benefits was not sustainable. (Paras 13-15)

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Issue of Consideration

Whether the order dated 26.10.2018 passed by the Tribunal in Original Application No.170/00045/2018 required to be interfered with?

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Final Decision

Decision not clearly stated

Law Points

  • Legal points not extracted
  • MACP scheme is prospective not retrospective
  • selection as Postal Assistant after LDCE is promotion
  • TBOP/BCR financial upgradations count towards MACP entitlements
  • employee having promotion and two upgradations not entitled to MACP-III
  • stagnation not established.
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Case Details

2026 LawText (KAR) (05) 23

Writ Petition No.201842/2019 (S-CAT)

2022-08-11

Dr. Justice H.B. Prabhakara Sastry, Justice C.M. Poonacha

Citation not available

Sri Sudhirsingh R. Vijapur, Sri Shambuling S. Salimath

The Union of India, The Postmaster General North Karnataka Region, The Supt. of Post Offices Bidar Division

Sri Vishwanath S/o Laxman Dharmanor

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Nature of Litigation

Writ petition challenging order of Central Administrative Tribunal allowing application for grant of MACP-III scheme benefits.

Remedy Sought

Petitioners sought to quash the Tribunal's order dated 26.10.2018 and deny MACP-III benefits to respondent.

Filing Reason

The Tribunal erroneously allowed MACP-III scheme benefits to respondent relying on an earlier order, whereas the scheme was prospective and respondent was not entitled.

Previous Decisions

The Central Administrative Tribunal, Bengaluru, by order dated 26.10.2018 in O.A.No.170/00045/2018, allowed the application relying on its earlier order in O.A.No.377/2017, which had followed orders of Jodhpur and Madras Benches and the Madras High Court.

Issues

Whether the order dated 26.10.2018 passed by the Tribunal in Original Application No.170/00045/2018 required to be interfered with?

Submissions/Arguments

Petitioners contended that MACP scheme is prospective and respondent not entitled; Tribunal erred by relying on earlier order; the case is covered by Bhimaraya V. Kattimani. Respondent contended that the issue is covered by Faiyaz Hussain where matter was remanded to Tribunal in terms of R.K. Sharma and K. Sudheesh Kumar; a government clarification dated 06.09.2021 can be considered by Tribunal.

Ratio Decidendi

Selection as Postal Assistant after clearing Limited Departmental Competitive Examination (LDCE) is to be treated as a promotion. An employee who has already received one promotion and two financial upgradations under TBOP and BCR schemes is not entitled to the benefit of MACP-III scheme, as the MACP scheme addresses stagnation and the employee cannot claim stagnation after such promotion and upgradations.

Judgment Excerpts

the selection as a Postal Assistant of an employee after clearing the competitive examination is required to be treated as a promotion the stagnation for which the financial upgradation is provided under the MACP-III scheme cannot be applied when the employee concerned has been granted promotion as well as two financial upgradations under the TBOP and BCR scheme.

Procedural History

Respondent filed O.A. No.170/00045/2018 before Central Administrative Tribunal, Bengaluru, seeking MACP-III benefits. Petitioners contested. Tribunal by order dated 26.10.2018 allowed the O.A. relying on earlier orders. Petitioners filed the present writ petition challenging the Tribunal's order.

Acts & Sections

  • Constitution of India: Article 226, Article 227
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