Case Note & Summary
The State of Maharashtra formulated a Revised Assured Career Progression (ACP) Scheme, notified via Government Resolution (G.R.) dated 1.4.2010, which entitled employees to a second ACP benefit upon completion of 24 years of service. The scheme was made retrospectively applicable from 1.10.2006. However, by a subsequent G.R. dated 1.7.2011, the State purported to 'clarify' that the benefit of the scheme would not apply to employees who had retired between 1.10.2006 and 31.3.2010. The respondents, who were retired employees falling within that period, challenged this clarification before the Maharashtra Administrative Tribunal, Mumbai. The Tribunal, by judgment and order dated 22.4.2014, struck down the clarification as arbitrary, unreasonable, and violative of Article 14 of the Constitution of India. Aggrieved, the State of Maharashtra filed the present writ petition before the Bombay High Court. The High Court, after hearing the parties, upheld the Tribunal's decision. The court reasoned that the clarification dated 1.7.2011 effectively nullified the retrospective operation of the scheme for a specific class of employees without any rational basis, thereby creating an arbitrary classification. The court held that the clarification was unconstitutional and affirmed the Tribunal's order. The petition was dismissed, and the rule was discharged.
Headnote
A) Service Law - Assured Career Progression Scheme - Retrospective Benefit - The State of Maharashtra formulated a Revised Assured Career Progression Scheme vide G.R. dated 1.4.2010, made retrospectively applicable from 1.10.2006. A subsequent clarification dated 1.7.2011 sought to exclude employees who retired between 1.10.2006 and 31.3.2010 from the benefit. The Tribunal struck down the clarification as arbitrary and unconstitutional. The High Court upheld the Tribunal's decision, holding that the clarification created an unreasonable classification and defeated the purpose of the retrospective scheme. (Paras 3-5) B) Constitutional Law - Article 14 - Arbitrary Classification - The clarification dated 1.7.2011 was held to be violative of Article 14 as it arbitrarily excluded a class of employees (those who retired between 1.10.2006 and 31.3.2010) from the benefit of the Revised ACP Scheme, which was otherwise applicable retrospectively from 1.10.2006. The court found no rational basis for such exclusion and held that the clarification was unreasonable and unconstitutional. (Paras 3-5)
Issue of Consideration
Whether the clarification dated 1.7.2011, which excluded employees who retired between 1.10.2006 and 31.3.2010 from the benefit of the Revised Assured Career Progression Scheme notified on 1.4.2010 with retrospective effect from 1.10.2006, is arbitrary and violative of Article 14 of the Constitution of India.
Final Decision
The High Court dismissed the writ petition and upheld the Tribunal's order striking down the clarification dated 1.7.2011 as arbitrary and unconstitutional. The rule was discharged.
Law Points
- Revised Assured Career Progression Scheme
- retrospective application
- arbitrary classification
- Article 14
- clarification cannot override substantive benefit
- legitimate expectation
