Supreme Court Remands MACP Benefit Dispute to Tribunal for Fresh Adjudication on Railway Employees' Financial Upgradation. The Court set aside the orders of the High Court and Tribunal, directing fresh consideration of the circular dated 12.09.2012 and Clause 129 of the Indian Railway Establishment Manual.

  • 4
Judgement Image
Font size:
Print

Case Note & Summary

The Union of India and the Senior Divisional Personnel Officer, Southern Railway, appealed against the order of the Kerala High Court which affirmed the Central Administrative Tribunal's decision granting financial upgradation under the Modified Assured Career Progression Scheme to three respondents, Rosamma Benny, Jessy S. Babu, and Sreekala P.V., who were working as Enquiry-Cum-Reservation Clerks. The respondents had been appointed to the post of ECRC under the promotion quota after clearing the Limited Departmental Competitive Examination. The Tribunal and High Court held that they were entitled to financial upgradation in pay band-II with grade pay of Rs. 4600 w.e.f. 01.11.2013, having completed ten years in the cadre of ECRC. The appellants contended that the respondents' appointment was under the promotion quota and not direct recruitment, and relied on a circular dated 12.09.2012 issued by the Ministry of Railways, which clarified that if the relevant Recruitment Rules prescribe a promotion quota to be filled on the basis of LDCE, such appointment would be treated as promotion for MACP benefits, and past regular service would be counted. The Supreme Court found that the Tribunal and High Court had not examined the circular dated 12.09.2012 and Clause 129 of the Indian Railway Establishment Manual, which prescribes the method of filling ECRC posts. The Court noted that there was no clarity on facts, particularly whether the respondents' posting as Commercial Clerks on transfer could be treated as the first promotion, and whether there was any merger of pay scales or upgradations affecting the MACP Scheme. Consequently, the Supreme Court set aside the impugned orders and remanded the matter to the Tribunal for fresh adjudication on merits, directing the parties to appear before the Tribunal on 30.03.2020. The appeal was allowed without any order as to costs.

Headnote

A) Service Law - Modified Assured Career Progression Scheme - Financial Upgradation - Promotion Quota vs Direct Recruitment - The issue pertains to entitlement of financial upgradation under MACP for employees appointed as Enquiry-Cum-Reservation Clerks under promotion quota through LDCE - The Supreme Court set aside the orders of the Tribunal and High Court and remanded the matter for fresh consideration, noting that the circular dated 12.09.2012 and Clause 129 of the Indian Railway Establishment Manual were not examined - Held that the Tribunal must independently apply its mind to facts and legal position after calling for additional affidavits (Paras 4-7).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the respondents, appointed as Enquiry-Cum-Reservation Clerks under the promotion quota, are entitled to financial upgradation under the Modified Assured Career Progression Scheme counting past service, and whether the Tribunal and High Court correctly applied the circular dated 12.09.2012 and Clause 129 of the Indian Railway Establishment Manual.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court allowed the appeal, set aside the impugned orders of the High Court and the Tribunal, and remanded the matter to the Central Administrative Tribunal for fresh adjudication on merits, without being influenced by the earlier orders. The parties were directed to appear before the Tribunal on 30.03.2020. No order as to costs.

Law Points

  • Modified Assured Career Progression Scheme
  • Financial Upgradation
  • Promotion Quota
  • Direct Recruitment
  • Limited Departmental Competitive Examination
  • Indian Railway Establishment Manual
Subscribe to unlock Law Points Subscribe Now

Case Details

2020 LawText (SC) (2) 102

Civil Appeal No. 996 of 2020 (Arising out of SLP (C) No. 17440 of 2019)

2020-02-04

S. Abdul Nazeer, Sanjiv Khanna

Union of India and Another

Rosamma Benny and Others

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil appeal against the order of the High Court of Kerala affirming the Central Administrative Tribunal's decision granting financial upgradation under the MACP Scheme to the respondents.

Remedy Sought

The appellants (Union of India and Senior Divisional Personnel Officer, Southern Railway) sought to set aside the orders of the Tribunal and High Court granting financial upgradation to the respondents.

Filing Reason

The appellants contended that the respondents were appointed under the promotion quota and not direct recruitment, and that the circular dated 12.09.2012 and Clause 129 of the Indian Railway Establishment Manual were not considered.

Previous Decisions

The Central Administrative Tribunal allowed O.A. No. 180/523/2014 on 13.10.2017, granting financial upgradation. The High Court of Kerala dismissed the writ petition on 24.05.2018, affirming the Tribunal's order.

Issues

Whether the respondents' appointment as ECRC under the promotion quota entitles them to financial upgradation under MACP counting past service. Whether the circular dated 12.09.2012 and Clause 129 of the Indian Railway Establishment Manual were correctly applied by the Tribunal and High Court.

Submissions/Arguments

Appellants: The respondents were appointed under the promotion quota through LDCE, and as per circular dated 12.09.2012, such appointment is treated as promotion, not direct recruitment, and past service should be counted for MACP benefits. The Tribunal and High Court failed to consider this. Respondents: They have completed ten years in the cadre of ECRC and are entitled to financial upgradation under MACP.

Ratio Decidendi

The Tribunal and High Court failed to examine the circular dated 12.09.2012 and Clause 129 of the Indian Railway Establishment Manual, which are relevant to determine whether the respondents' appointment under the promotion quota entitles them to MACP benefits counting past service. The matter requires fresh consideration on facts and law.

Judgment Excerpts

The impugned order, however, fails to notice and examine the circular dated 12.09.2012 issued by the Ministry of Railways (Railway Board) on behalf of the Government of India clarifying grant of benefits under the MACP Scheme to employees who had qualified and were appointed under the promotion quota after clearing Limited Departmental Competitive Examination. These aspects have not been examined by the Tribunal and the High Court in the impugned orders.

Procedural History

The respondents filed O.A. No. 180/523/2014 before the Central Administrative Tribunal, Ernakulam Bench, which was allowed on 13.10.2017. The appellants filed a writ petition before the High Court of Kerala, Ernakulam Bench, which was dismissed on 24.05.2018. The appellants then filed a Special Leave Petition before the Supreme Court, which was converted into Civil Appeal No. 996 of 2020.

Acts & Sections

  • Indian Railway Establishment Manual: Clause 129
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Remands MACP Benefit Dispute to Tribunal for Fresh Adjudication on Railway Employees' Financial Upgradation. The Court set aside the orders of the High Court and Tribunal, directing fresh consideration of the circular dated 12.09.2012 a...
Related Judgement
Supreme Court Supreme Court Upholds Statutory Caste Scrutiny Committee Composition Under Maharashtra Act of 2000. Judicial Directions in Kumari Madhuri Patil Stand Subsumed by Subsequent Legislation.