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Supreme Court of India

UNION OF INDIA AND OTHERSversusM. V. MOHANAN NAIR

Citation
2020 INSC 281
Decided
5 March 2020
Disposal
Disposed off

Holding

The MACP Scheme provides financial up‑gradation only to the immediate next higher grade‑pay; it does not confer the grade‑pay of the next promotional post, and the Raj Pal decision is not a binding precedent.

Summary

The Union of India appealed against several High Court orders that had granted employees financial upgradation in the grade‑pay of the next promotional hierarchy under the Modified Assured Career Progression (MACP) Scheme, relying on the Raj Pal judgment. The respondents argued that MACP should be interpreted like the earlier Assured Career Progression (ACP) Scheme, giving them the grade‑pay of the next promotional post. The Supreme Court examined the wording of the MACP Scheme, the recommendations of the Sixth Central Pay Commission, and the fact that the scheme expressly provides for placement in the immediate next higher grade‑pay, not the promotional hierarchy. It held that Raj Pal was dismissed on procedural grounds and does not bind the courts. Consequently, the Court set aside the impugned orders, held that MACP does not entitle up‑gradation to the promotional grade‑pay, and allowed the Union’s appeals.

Issues considered

  • Whether the MACP Scheme entitles an employee to financial upgradation to the immediate next higher grade‑pay or to the grade‑pay of the next promotional hierarchy.
  • Whether the MACP Scheme is disadvantageous compared to the erstwhile ACP Scheme.
  • Whether the respondents can claim parity with juniors by stepping up to the promotional grade‑pay.
  • Whether the decision in Union of India v. Raj Pal is a binding precedent under Article 141.

Legislation cited

Subjects

Service LawModified Assured Career ProgressionAssured Career ProgressionSixth Central Pay CommissionGrade PayFinancial UpgradationArticle 141PrecedentCentral Civil Services (Revised Pay) Rules

Judgment

                         [2020] 7 S.C.R. 851                              851


                UNION OF INDIA AND OTHERS                                 A
                                  v.
                     M. V. MOHANAN NAIR
                   (Civil Appeal No. 2016 of 2020)
                          MARCH 05, 2020                                  B

           [R. BANUMATHI, A. S. BOPANNA AND
                  HRISHIKESH ROY, JJ.]
       Service Law – Modified Assured Career Progression (MACP)
Scheme vis-à-vis Assured Career Progression (ACP) Scheme – ACP            C
Scheme was withdrawn and superseded by MACP Scheme –
Respondents given beneficial pay upgradation as per MACP
Scheme, however claimed the benefit of Grade Pay of the next
promotional hierarchy following the erstwhile ACP Scheme –
Granted by different Benches of CAT relying upon Union of India v.
Raj Pal – Challenged by appellants – Dismissed by High Courts –           D
On appeal, held: Though ACP and MACP Schemes are intended to
provide relief against stagnation, both have different features –
MACP Scheme was recommended by Sixth Central Pay Commission
to bring systematic changes in the existing ACP Scheme so that all
employees irrespective of existing hierarchical structure in their        E
organisations/cadre get the same benefit – Words used in the MACP
Scheme are “placement in the immediate next higher Grade Pay in
the hierarchy of the recommended revised pay bands” – Term “Grade
Pay in the next promotional post” is conspicuously absent in the
entire body of the MACP Scheme – Respondents’ contention that
the benefit of MACP Scheme is referable to the promotional post, is       F
de hors the MACP Scheme – When the expert body like Pay
Commission comprehensively examined all the issues, various
representations and the disparities, the court should not interfere
with its recommendations – MACP Scheme has not been challenged
by the respondents – Further, Raj Pal’s case was dismissed by the
                                                                          G
Supreme Court on technical ground without any decision on merits
and thus could not have been taken as a precedent – No grounds
made out to show that the MACP Scheme granting financial
upgradation in the next grade pay is arbitrary – Impugned orders
set aside – Constitution of India – Art.141 – First Schedule of Central
Civil Services (CCS) (Revised Pay) Rules, 2008.                           H
                                  851
852            SUPREME COURT REPORTS                      [2020] 7 S.C.R.


A           Service Law – Assured Career Progression (ACP) Scheme and
      Modified Assured Career Progression (MACP) Scheme – Distinction
      between – Discussed.
            Constitution of India – Art.141 – ‘Law’ under – Held: Law
      declared by the Supreme Court is a principle laid down by the court
B     and it is this principle which has the effect of a precedent – A
      principle is a proposition delivered after examination of the matter
      on merits – Service Law.
           Service Law – Modified Assured Career Progression (MACP)
      Scheme – Object and salient features of – Discussed.
C           Disposing of the appeals, the Court
            HELD: 1.1 In order to bring systematic changes in the
      existing scheme of ACP so that all employees irrespective of
      existing hierarchical structure in their organisations/cadre get
      the same benefit, MACP was recommended by the Sixth Central
D     Pay Commission. Both ACP and MACP Schemes are in the nature
      of incentive schemes devised with the object of ensuring that
      the employees who are unable to avail of adequate promotional
      opportunities, get some relief from stagnation in the form of
      financial benefits. Under the MACP Scheme, financial
E     upgradations are granted at three regular intervals on completion
      of 10-20-30 years of service without promotion. Hence, it is also
      intended to ensure that the employees are adequately incentivised
      to work efficiently despite not getting promotion for want of
      promotional avenue. The change in policy brought about by
      supersession of the ACP Scheme with the MACP Scheme is after
F     well-deliberated and well-documented recommendations of the
      Sixth Central Pay Commission. Considering the various issues
      in the implementation of the ACP Scheme, the Pay Commission
      expressed its views “the only other way is to bring systematic
      changes in the existing Scheme of ACP so that all the employees
G     irrespective of the existing hierarchy structure in their
      organisations/cadres, get some benefit under it”. The Commission
      therefore, recommended that the existing Scheme of ACP be
      continued with the modifications indicated thereon in the Report
      that the financial upgradation has to be in the next immediate
      Grade Pay. One of the reasons for the expert body recommending
H
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                    853


the MACP Scheme was that there were inter-departmental              A
disparities where several departments had varying promotional
hierarchies. As a result, the working of ACP Scheme under which
an employee who stagnated for 12 years, was entitled to pay in
the Pay Scale of the next promotional post, led to inter-
departmental anomalies. The Pay Commission therefore,
                                                                    B
recommended MACP Scheme with a view to putting an end to
the problem ensuing from inter-departmental disparities.
[Paras 9, 26][861-F-H; 871-G-H; 872-A]
      1.2 In the ACP Scheme, there was no Grade Pay but only
fixed Pay Scales and fixed increments. After the Sixth Central
Pay Commission, various Pay Scales have been clubbed together       C
and there is revised Pay Scale with corresponding Pay Bands
and corresponding Grade Pay. The norms for grant of ACP were
stringent and the government servant has to satisfy the norms
for promotion. Whereas under the MACP Scheme, for financial
upgradation, the rigour of screening is diluted. [Para 18]          D
[868-A-B]
      1.3 The words used in the MACP Scheme are “placement
in the immediate next higher Grade Pay in the hierarchy of the
recommended revised pay bands”. The term “Grade Pay in the
next promotional post” is conspicuously absent in the entire body   E
of the MACP Scheme. The argument of the respondents that the
benefit of MACP Scheme is referable to the promotional post, is
de hors the MACP Scheme and cannot be accepted. Though ACP
and MACP Schemes are intended to provide relief against
stagnation, both the Schemes have different features. Pay scales
under the Sixth Pay Commission and the MACP Scheme are              F
stated to be more beneficial since it extends to the employees
with time intervals with higher pay bands and various facilities
which were not available under the ACP Scheme including the
three financial upgradations in shorter time span. In any event,
MACP Scheme has not been challenged by the respondents. The         G
respondents cannot be permitted to cherry-pick beneficial
features from the erstwhile ACP Scheme and also take advantage
of the beneficial features in the MACP Scheme. [Para 27]
[872-C-E]

                                                                    H
854            SUPREME COURT REPORTS                      [2020] 7 S.C.R.


A           1.4 The object behind the MACP Scheme is to provide relief
      against the stagnation. If the arguments of the respondents are
      to be accepted, they would be entitled to be paid in accordance
      with the grade pay offered to a promotee; but yet not assume the
      responsibilities of a promotee. If the employees are entitled to
      enjoy Grade Pay in the next promotional hierarchy, without the
B     commensurate responsibilities as a matter of routine, it would
      have an adverse impact on the efficiency of administration. After
      accepting the recommendation of the Sixth Central Pay
      Commission, the ACP Scheme was withdrawn and the same was
      superseded by the MACP Scheme with effect from 01.09.2008.
      This is not some random exercise unilaterally done by the
C
      Government, rather, it is based on the opinion of the expert body
      – Sixth Central Pay Commission. When the expert body like Pay
      Commission has comprehensively examined all the issues and
      representations and also took note of inter-departmental
      disparities owing to varying promotional hierarchies, the court
D     should not interfere with the recommendations of the expert body.
      When the government has accepted the recommendation of the
      Pay Commission and has also implemented those, any
      interference by the court would have a serious impact on the
      public exchequer. In the present batch of cases where the
      respondents are claiming financial upgradation in the grade pay
E     of promotional hierarchy, no grounds are made out to show that
      the MACP Scheme granting financial upgradation in the next grade
      pay is arbitrary and unjust; warranting interference. [Paras 28,
      29 and 35][872-F-H; 873-B-D; 875-G-H]
            2.1 In the case of Raj Pal, the post of Photocopier, being an
F     isolated post, the order was passed in the peculiar facts and
      circumstances of the case. Rajpal’s case did not go into any details
      in respect of the overall features of the new MACP Scheme and
      did not consider the recommendations of the expert body which
      culminated in the new Scheme. Raj Pal’s case having been
      dismissed on the ground that no sufficient cause was shown for
G     the delay in refiling, Raj Pal’s case ought not to have been quoted
      as precedent of this Court by the High Courts. [Paras 42, 45][879-
      B, C, F; 881-B]
            Union of India v. Raj Pal Decision of Supreme Court
            dated 15.04.2013 in SLP (C) No. CC 7467 of 2013 –
H           distinguished.
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                        855


        2.2 Article 141 of the Constitution of India provides that      A
the law declared by the Supreme Court shall be binding on all
courts within the territory of India, i.e. the pronouncement of the
law on the point shall operate as a binding precedent on all courts
within India. Law declared by the Supreme Court has to be
essentially understood as a principle laid down by the court and
                                                                        B
it is this principle which has the effect of a precedent. A principle
as understood from the word itself is a proposition which can
only be delivered after examination of the matter on merits. It
can never be in a summary manner, much less be rendered in a
decision delivered on technical grounds, without entering into
the merits at all. A decision, unaccompanied by reasons can never       C
be said to be a law declared by the Supreme Court though it will
bind the parties inter-se in drawing the curtain on the litigation.
Without considering the advantages in the MACP Scheme, the
High Courts erred in interfering with the government’s policy in
accepting the recommendations of the Sixth Central Pay
                                                                        D
Commission by simply placing reliance upon Raj Pal’s case. Since
certain anomalies on implementation of the MACP Scheme have
been brought to the notice of the Joint Committee in the various
meetings of the Joint Committee, Union of India and DoP&T to
consider the same as they deem it appropriate and take a decision
in accordance with law. [Paras 44, 51 and 53][879-G-H; 880-A-B;         E
883-D-E; G-H]
      Union of India and Another v. P.V. Hariharan and
      Another (1997) 3 SCC 568 : [1997] 2 SCR 1050; State
      of U.P. and Others v. U.P. Sales Tax Officers Grade II
      Association (2003) 6 SCC 250; Secretary, Government               F
      (NCT of Delhi) and Others v. Grade-1 Officers
      Association and Others (2014) 13 SCC 296 : [2014] 8
      SCR 976; State of Tamil Nadu v. S. Arumugham (1998)
      2 SCC 198 : [1997] 5 Suppl. SCR 295; State of Haryana
      and Another v. Haryana Civil Secretariat Personal Staff
      Association (2002) 6 SCC 72 : [2002] 1 Suppl. SCR                 G
      118; Union of India v. All India Service Pensioners’
      Association and Another (1988) 2 SCC 580 : [1988] 2
      SCR 697; Supreme Court Employees Welfare Association
      v. Union of India and Others (1989) 4 SCC 187 : [1989]
      3 SCR 488 – relied on.                                            H
856            SUPREME COURT REPORTS                       [2020] 7 S.C.R.


A                            Case Law Reference
      [1997] 2 SCR 1050                 relied on             Para 30
      (2003) 6 SCC 250                  relied on             Para 31
      [2014] 8 SCR 976                  relied on             Para 32
B
      [1997] 5 Suppl. SCR 295           relied on             Para 33
      [2002] 1 Suppl. SCR 118           relied on             Para 34
      [1988] 2 SCR 697                  relied on             Para 44
C
      [1989] 3 SCR 488                  relied on             Para 45
            CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2016
      of 2020.
            From the Judgment and Order dated 24.06.2013 of the High Court
D     of Kerala at Ernakulam in OA (CAT) No. 2000 of 2013.
            With
            Civil Appeal Nos. 2017, 2018, 2019, 2020, 2021, 2022 and 2044-
      2045 of 2020.
E
            A.N.S. Nadkarni, ASG, Ms. Madhvi Divan, Dr. Kailash Vasdev,
      Jaideep Gupta, (A.C.), Vinay Kumar Garg, Sr. Advs., Kunal Chatterji,
      Pravar Veer Mishra, Ms. Priyanka Das, Raj Bahadur Yadav, Akshay
      Amritanshu, Anish Kr. Gupta, Pranay Ranjan, S.K. Gupta, Sumit
      Upadhyay, Ms. Rekha Pandey, Arvind Kumar Sharma, S.S. Ray, Vijay
F     Prakash, B.V. Balram Das, Ms. Alka Agarwal, Baldev Atrey, B. Krishna
      Prasad, Gurmeet Singh Makker, Sahil Monga, Mrs. Anil Katiyar,
      Ms. Priya Mishra, Arun Kumar Yadav, Surender Kumar Gupta, Mukesh
      Kumar Maroria, Shubham Saurav, Ms. Rekha Pandey, Ms. Vimla Sinha,
      Rajeev Sharma, Sahil Bhalaik, Tushar Giri, Pradeep Kr. Mittal,
G     Ms. Shivetima D., Ms. Simanta Kr., Saurabh Kr., Raj Kishor Choudhary,
      K. Rajeev, O. P. Bhadani, C. K. Sasi, Nayantara Roy, Abdulla N.,
      Ms. Somya Gupta, P.A. Kulkarni, Ms. Punam Kumari, Yatindra Sharma,
      Prashant Kumar, G. Umapathy, Ms. Vaishnavi, Rakesh K. Sharma, G.
      Tushar Rao, Mayank Sharma, Kumar Dushyant Singh, Ms. Pavitra, D.K.
      Thakur, Devendra Jha, Shivaraju H.B., Rituparn Uniyal, Abhishek Kumar,
H
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                               857


for Debasis Misra, Mrs. Prabha Swami, Nikhil Swami, Ms. Divya Swami,           A
Naveen R. Nath, Rahul Jain, A. N. Arora, Ms. Sumita Hazarika,
Ms. Ipsita Behura, Sunil Kumar Jain, M. B. Ramasubba Raju, E.P.
Gopinathan, Ms. Megha, Balaji Srinivasan, R.S. Rajiv, Mohan Kumar,
Manoj V. George, Ms. Shilpa Liza George, K.M. Vignesh Ram,
Ms. Bhavika, Zulfiker Ali P.S., Chava Badri Nath Babu, Rameshwar
                                                                               B
Prasad Goyal, C.M. Angadi, M.K. Bhardwaj, Akash Dahiya, Satish
Kumar, G. Prakash, Jishnu M.L., Ms. Priyanka Prakash, Ms. Beena
Prakash, M. K. Dua, Sudhir Naagar, Karamveer Singh, Sidharth Khatana,
Ms. Haripriya Padhmanabhan, Ms. Pooja Dhar, Shrutanjaya Bhardwaj,
Ms. Gayatri Verma, Vishal Sinha, Ms. Beena Goyal, Hitesh Kumar
Sharma, Akhileshwar Jha, Ms. Meenakshi Gupta, B.P. Singh, Ms. Kusum            C
Chaudhry, Gp.Capt. Karan Singh Bhati, Ms. Kirti Khangarot, Ms. Celeste
Agarwal, Ms. Oorjasvi Goswami, Advs. for the appearing parties.
        The Judgment of the Court was delivered by
        R. BANUMATHI, J.                                                       D
        1. Leave granted.
       2. The instant batch of appeals have been filed assailing the orders
of various High Courts dismissing petitions filed by the appellants, thereby
upholding decisions rendered by different Benches of Central
                                                                               E
Administrative Tribunal granting financial upgradation of grade pay in
the next promotional hierarchy by placing reliance upon Union of India
and others v. Raj Pal and another CWP No.19387 of 2011
dated 19.10.2011. In these batch matters, we are concerned with the
question whether MACP Scheme entitles financial upgradation to the
next grade pay or to the grade pay of the next promotional hierarchy.          F
      3. In all these appeals, almost all the High Courts have followed
the Raj Pal and Ved Prakash’s case and granted relief as prayed for by
the respondents. Being aggrieved, the appellant-UOI has filed these
appeals.
                                                                               G
        4. The main questions falling for consideration in these appeals
are:-
        (i)   Whether MACP scheme entitles financial upgradation of
              pay to the next grade pay or to the grade pay of the next
                                                                               H
858                 SUPREME COURT REPORTS                        [2020] 7 S.C.R.


A                    promotional post as envisaged under the ACP scheme?
                     Whether MACP Scheme envisages grant of financial
                     upgradation in Grade Pay Hierarchy and not in promotional
                     hierarchy?
             (ii)    As contended by the respondents, whether MACP scheme
B                    is disadvantageous to the employees in comparison to ACP
                     scheme as long as the financial upgradation is granted in
                     hierarchy of grade pay under MACP scheme?
             (iii) Whether respondents are entitled to stepping up of their
                   grade pay to be at par with grade pay of their juniors who
C                  were getting the higher grade pay on account of
                   implementation of MACP Scheme?
             Appeals relating to Issue No.III were ordered to be de-tagged
      and listed separately.
            5. At the outset, it is to be pointed out that almost all the Tribunals/
D     High Courts have only relied upon Raj Pal’s case for grant of financial
      upgradation on promotional hierarchy and rejected the stand of the
      appellant-UOI that under MACP scheme, the employees are entitled to
      financial upgradation of the next grade pay only. Since the matter was
      considered on merits and since the issue involves impact on the public
E     ex-chequer and also interest of the staff of various establishments, we
      requested learned Senior counsel, Mr. Jaideep Gupta to assist the Court
      as amicus curiae which the learned Senior counsel has readily consented.
      Mr. Kunal Chatterji, learned counsel has agreed to assist the learned
      Senior counsel-amicus.

F            Assured Career Progression (ACP) Scheme:-
             6. The Government of India with a view to “deal with the problem
      of genuine stagnation and hardship faced by the employees due to lack
      of adequate promotional avenues”, introduced the Assured Career
      Progression (ACP) Scheme with effect from 09.08.1999 vide its Office
G     Memorandum dated 09.08.1999. To mitigate the hardship in cases of
      acute stagnation in a cadre or in an isolated post, it has been decided to
      grant two financial upgradations under the ACP Scheme to Group ‘B’,
      ‘C’ and ‘D’ employees on completion of 12 and 24 years of regular
      service. As per ACP Scheme, isolated post in Group ‘A’, ‘B’, ‘C’ and
      ‘D’ cadres which have no promotional avenues also qualify for similar
H     benefits. The financial upgradations under the ACP Scheme is placement
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                             859
                 [R. BANUMATHI, J.]

in the higher Pay Scale and financial benefits in the higher Pay Scale       A
without regular promotion. Under the financial upgradation, grant of
financial benefits under the ACP Scheme to the government servants
concerned is on personal basis. Such financial upgradation neither
amounts to regular promotion nor require creation of new post. Some of
the salient features of the ACP Scheme are as follows:-
                                                                             B
      • The ACP Scheme envisages merely placement in the higher
        pay-scale/grant of financial benefits (through financial
        upgradation) only to the Government servant concerned on
        personal basis and shall, therefore, neither amount to functional/
        regular promotion nor would require creation of new posts for
        the purpose;                                                         C

      • Under the ACP Scheme, two financial upgradations shall be
        allowed to Group ‘B’, ‘C’ and ‘D’ employees on completion of
        12 years and 24 years of his/her regular service.
      • As per para 5.1 of Annexure-1 – conditions for grant of benefits     D
        under the ACP Scheme, it is stipulated that two financial
        upgradations would be available only if no regular promotion
        during the prescribed period (12 and 24 years) was granted to
        an employee. If an employee has already received one regular
        promotion, he/she would qualify for second ACP only on
        completion of 24 years of regular service. However, in case if       E
        two regular promotions have been received by an employee,
        no further benefit under the ACP Scheme would accrue in
        favour of the employee.
      • As per para 3.1 of the Office Memorandum dated 09.08.1999,
        the grant of financial upgradations under the ACP Scheme shall       F
        be subject to the conditions mentioned in the Annexure-I
        annexed thereon to the Office Memorandum dated 09.08.1999.
       7. Para No.8 of the Annexure provides that the financial
upgradations shall be purely personal to the employee and would have
no relevance to his/her seniority position. In other words, there would be   G
no additional financial upgradations for the senior employee on the ground
that the junior employee has got the higher pay scale under the ACP
Scheme. Para No.12 of Annexure-I provides that the ACP Scheme
contemplates merely placement on personal basis in the higher pay scale/
grant of financial benefits only and shall not amount to actual functional
                                                                             H
860              SUPREME COURT REPORTS                          [2020] 7 S.C.R.


A     promotion of the employees concerned. We may usefully refer to the
      relevant features of the ACP Scheme as stipulated in Annexure-I to the
      Office Memorandum dated 09.08.1999-Conditions for Grant of Benefits
      under the ACP Scheme, which reads as under:-
            Conditions for grant of benefits under the ACP Scheme:-
B           1.    The ACP Scheme envisages merely placement in the higher
                  pay-scale/grant of financial benefits (through financial
                  upgradation) only to the Government servant concerned on
                  personal basis and shall, therefore, neither amount to
                  functional/regular promotion nor would require creation of
C                 new posts for the purpose;
                  ………
            4.    The first financial upgradation under the ACP Scheme shall
                  be allowed after 12 years of regular service and the second
                  upgradation after 12 years of regular service from the date
D                 of the first financial upgradation subject to fulfilment of
                  prescribed conditions. In other words, if the first upgradation
                  gets postponed on account of the employee not found fit or
                  due to departmental proceedings, etc. this would have
                  consequential effect on the second upgradation which would
E                 also get deferred accordingly;
                  ………
            8.    The financial upgradation under the ACP Scheme shall be
                  purely personal to the employee and shall have no relevance
                  to his seniority position. As such, there shall be no additional
F                 financial upgradation for the senior employee on the ground
                  that the junior employee in the grade has got higher pay-
                  scale under the ACP Scheme;
                  ……….
            12. The proposed ACP Scheme contemplates merely placement
G               on personal basis in the higher pay-scale/grant of financial
                benefits only and shall not amount to actual/functional
                promotion of the employees concerned. Since orders
                regarding reservation in promotion are applicable only in the
                case of regular promotion, reservation orders/roster shall not
H
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                              861
                 [R. BANUMATHI, J.]

           apply to the ACP Scheme which shall extend its benefits            A
           uniformly to all eligible SC/ST employees also. However, at
           the time of regular/functional (actual) promotion, the Cadre
           Controlling Authorities shall ensure that all reservation orders
           are applied strictly;
           ……...”                                                             B
      8. ACP Scheme was replaced by Modified Assured Career
Progression (MACP) Scheme which became operational with effect
from 01.09.2008. The Sixth Central Pay Commission has recommended
the adoption of MACP Scheme primarily to rectify the problems arising
from inter-departmental disparities:-                                         C
      (i) ACP Scheme led to creation of certain disparities within the
          employees in different organisations/departments who were
          directly recruited in the same pay scale who received different
          financial upgradations under the ACP Scheme because of
          existence of different promotional hierarchical structure and       D
          different promotional pay scales in different organisations/
          departments;
      (ii) Another adverse consequence in the implementation of the
           ACP Scheme was that the benefit of a higher pay scale was
           not available if the next post in the hierarchy also existed in    E
           the identical pay scale.
       9. In order to bring systematic changes in the existing scheme of
ACP so that all employees irrespective of existing hierarchical structure
in their organisations/cadre get the same benefit, MACP was
recommended by the Sixth Central Pay Commission which was accepted            F
by the Government with certain modifications vide its Office
Memorandum dated 19.05.2009. Under the Sixth Central Pay
Commission, revised pay structure has been implemented with effect
from 01.01.2006; whereas benefits of ACP Scheme have been allowed
till 31.08.2008. Vide Office Memorandum dated 19.05.2009, the
Government of India introduced the MACP Scheme, in supersession of            G
the ACP Scheme w.e.f. 01.09.2008. There shall be no change in distinction,
classification or higher status on grant of financial upgradation under
MACP as the upgradation is purely personal and merely placement in
the next higher Grade Pay.
                                                                              H
862              SUPREME COURT REPORTS                        [2020] 7 S.C.R.


A           Modified Assured Career Progression (MACP) Scheme:-
            10. Under the MACP Scheme, three financial upgradations are
      made available in the next grade pay to an employee who has completed
      10, 20 and 30 years of regular service in the same post without getting
      any promotion. The benefit would be available at the next higher grade
B     pay. Some of the salient features of the MACP Scheme are as follows:-
            • Para No.2 of the MACP Scheme provides that the “MACP
              Scheme envisages merely placement in the immediate
              next higher grade pay in the hierarchy of the
              recommended revised pay bands and grade pay”.
C           • As per para No.10 of the MACP Scheme – Office
              Memorandum dated 19.05.2009, no stepping up of pay in
              the pay band or grade pay would be admissible with regard
              to junior getting more pay than the senior on account of pay
              fixation under the MACP Scheme.
D           • As per para No.11 of the said memorandum dated 19.05.2009,
              the differences in pay scales on account of financial
              upgradations under the ACP Scheme and MACP Scheme
              would not be construed as anomaly.
            11. Para (19) of MACP Scheme contemplates merely placement
E     on personal basis in the immediate higher grade pay/grant of financial
      benefits only and shall not amount to actual/functional promotion of the
      employees concerned. As per para (20) of the MACP Scheme, financial
      upgradations shall be purely personal to the employee and shall have no
      relevance to the seniority position. As such, there shall be no additional
F     financial upgradation for the senior employees on the ground that the
      junior employees in the grade have received higher grade pay under
      MACP Scheme. We may usefully extract the relevant portion of
      Annexure-I of the Office Memorandum dated 19.05.2009, which reads
      as under:-
                                  ANNEXURE-I
G
            MODIFIED ASSURED CAREER PROGRESSION
            SCHEME (MACPS)
            1.     There shall be three financial upgradation s under the
                   MACPS, counted from the direct entry grade on completion
H                  of 10, 20 and 30 years service respectively. Financial
UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                          863
                [R. BANUMATHI, J.]

         upgradation under the Scheme will be admissible whenever        A
         a person has spent 10 years continuously in the same grade-
         pay.
   2.    The MACPS envisages merely placement in the immediate
         next higher grade pay in the hierarchy of the
         recommended revised pay bands and grade pay as given in         B
         Section 1, Part-A of the first schedule of the CCS (Revised
         Pay) Rules, 2008. Thus, the grade pay at the time of
         financial upgradation under the MACPS can, in certain
         cases where regular promotion is not between two
         successive grades, be different than what is available at
         the time of regular promotion. ln such cases, the higher        C
         grade pay attached to the next promotion post in the
         hierarchy of the concerned cadre/organisation will be
         given only at the time of regular promotion.
         …………
                                                                         D
   17.   The financial upgradation would be on non-functional basis
         subject to fitness, in the hierarchy of grade pay within the
         PB-1.Thereafter for upgradation under the MACPS the
         benchmark of ‘good’ would be applicable till the grade pay
         of Rs. 6600/- in PB-3. The benchmark will be ‘Very Good’
         for financial upgradation to the grade pay of Rs. 7600 and      E
         above.
   19.   The MACPS contemplates merely placement on personal
         basis in the immediate higher Grade pay /grant of
         financial benefits only and shall not amount to actual
         functional promotion of the employees concerned.                F
         Therefore, no reservation orders/roster shall apply to the
         MACPS, which shall extend its benefits uniformly to all
         eligible SC/ST employees also. However, the rules of
         reservation in promotion shall be ensured at the time of
         regular promotion. For this reason, it shall not be mandatory   G
         to associate members of SC/ST in the Screening Committee
         meant to consider cases for grant of financial upgradation
         under the Scheme.
         ………….
                                                                         H
864              SUPREME COURT REPORTS                                      [2020] 7 S.C.R.


A             25.       lf a regular promotion has been offered but was refused by
                        the employee before becoming entitled to a financial
                        upgradation, no financial upgradation shall be allowed as
                        such an employee has not been stagnated due to lack of
                        opportunities. If, however, financial upgradation has been
                        allowed due to stagnation and the employees subsequently
B                       refuse the promotion, it shall not be a ground to withdraw
                        the financial upgradation. He shall, however, not be eligible
                        to be considered for further financial upgradation till he
                        agrees to be considered for promotion again and the second
                        the next financial upgradation shall also be deferred to the
C                       extent of period of debarment due to the refusal.
                        ……………”
            12. Clause 28 contains illustrations as to grant of financial
      upgradation under MACP. The illustrations in Clause 28 of the Scheme
      can easily be understood by referring to the First Schedule, Part-A of
D     Section 1 of Central Civil Services (Revised Pay) Rules, 2008 which
      gives a comparison of the scale of pay under the 5th Pay Commission
      and the 6th Pay Commission as under:-
                                     THE FIRST SCHEDULE
                                       (SEE RULES 3 & 4)
E
                                       PART – A
                                      SECTION I
              Revised Pay Bands and Grade Pays for posts carrying present
              scales in Group ‘A’, ‘B’, ‘C’ & ‘D’ except posts for which different
F             revised scales are notified separately.
                           Present Scale                         Revise d Pay Structure
        Sl.No.      Post/Grade        Present Scale     Name of Pay Correspond Corresponding
                                                        Band/Scale      ing Pay      Grade Pay
                                                                      Bands/Scal
                                                                           es
        (1)            (2)                (3)              (4)            (5)            (6)
        1.             S-1      2550-55-2660-60-3200       -1S        4440-7440         1300
G       2.             S-2      2610-60-3150-65-3540       -1S        4440-7440         1400
        3.            S-2A      2610-60-2910-65-3300-      -1S        4440-7440         1600
                                70-4000
        4.             S-3      2650-65-3300-70-4000        -1S      4440-7440       1650
        5.             S-4      2750-70-3800-75-4400       PB-1      5200-20200      1800
        6.             S-5      3050-75-3950-80-4590       PB-1      5200-20200      1900
        7.             S-6      3200-85-4900               PB-1      5200-20200      2000
        8.             S-7      4000-100-6000              PB-1      5200-20200      2400
H       9.             S-8      4500-125-7000              PB-1      5200-20200      2800
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                                            865
                 [R. BANUMATHI, J.]

 1.           S-9       5000-150-8000       PB-2          9300-34800             4200       A
 2.          S-10       5500-175-9000       PB-2          9300-34800             4200
 3.          S-11       6500-200-6900       PB-2          9300-34800             4200
 4.          S-12       6500-200-10500      PB-2          9300-34800             4200
 5.          S-13       7450-225-11500      PB-2          9300-34800             4600
 6.          S-14       7500-250-12000      PB-2          9300-34800             4800
 7.          S-15       8000-275-13500      PB-2          9300-34800             5400
 8.        New Scale    8000-275-13500      PB-3          15600-39100            5400
                        (Group A Entry)                                                     B
 9.           S-16      9000                PB-3          15600-39100            5400
 10.          S-17      9000-275-9550       PB-3          15600-39100            5400
 11.          S-18      10325-325-10975     PB-3          15600-39100            6600
 12.          S-19      10000-325-15200     PB-3          15600-39100            6600
 13.          S-20      10650-325-15850     PB-3          15600-39100            6600
 14.          S-21      12000-375-16500     PB-3          15600-39100            7600
 15.          S-22      12750-375-16500     PB-3          15600-39100            7600
 16.          S-23      12000-375-18000     PB-3          15600-39100            7600
 17.          S-24      14300-400-18300     PB-4          37400-67000            8700
                                                                                            C
 18.          S-25      15100-400-18300     PB-4          37400-67000            8700
 19.          S-26      16400-450-20000     PB-4          37400-67000            8900
 20.          S-27      16400-450-20900     PB-4          37400-67000            8900
 21.          S-28      14300-450-22400     PB-4          37400-67000            10000

                Present Scale                          Revised Pay Structure

 Sl.No.    Post/Grade         Sl.No.      Post/Grade          Sl.No.           Post/Grade   D
 22.          S-29      18400-500-22400   PB-4         37400-67000               10000
 23.          S-30      22400-525-24500   PB-4         37400-67000               12000
 24.          S-31      22400-600-26000   HAG +        75500 (annual               Nil
                                          Scale        increment @ 3 %) -
                                                       80000
 25.         S-32       24050-650-26000   HAG +        75500 (annual              Nil
                                          Scale        increment @ 3 %) -
                                                       80000                                E
 26.         S-33       26000 (Fixed)     Apex Scale   80000 (Fixed)              Nil
 27.         S-34       30000 (Fixed)     Cab. Sec.    90000 (Fixed)              Nil

          Comparison of ACP and MACP Scheme:-
       13. For grant of financial upgradation under ACP Scheme, a
Screening Committee shall be constituted for the purpose of processing                      F
the cases for grant of benefits under the ACP Scheme. In terms of
Clause 6.2 of the ACP Scheme, the composition of the Screening
Committee shall be the same as that of Departmental Promotion
Committee (DPC) prescribed under the relevant recruitment/service rules
for regular promotion to the higher grade to which financial upgradation
is to be granted. The requirement that the composition of the Screening                     G
Committee shall be the same as that of DPC, under ACP Scheme, the
consideration for financial upgradations are stringent and the government
servant has to satisfy the norms for promotion. Fulfilment of normal
promotional norms like benchmark, departmental examination, seniority-
cum-fitness (in case of Group ‘D’ employees) are the requirement for
                                                                                            H
grant of financial upgradation under ACP Scheme.
866            SUPREME COURT REPORTS                                             [2020] 7 S.C.R.


A            14. Per contra, under the MACP Scheme, financial upgradation
      is granted in the next higher Grade Pay in the hierarchy of the
      recommended Pay Bands and Grade Pay as given in Section-1, Part-A
      of the First Schedule of CCS (Revised Pay) Rules, 2008. Under the
      MACP Scheme, the financial upgradation would be on non-functional
      basis subject to fitness in the hierarchy of Grade Pay. MACP Scheme
B
      contemplates merely placement on personal basis in the immediate
      higher Grade Pay/grant of financial benefits only and shall not amount
      to actual/functional promotion of the employees concerned (vide para
      (19) of the MACP Scheme). In terms of para (20) of MACP Scheme,
      financial upgradation under the MACP Scheme shall be purely personal
C     to the employees and shall have no relevance to the seniority position.
      As such there shall be no additional financial upgradation for the senior
      employees on the ground that the junior employee in the grade has got
      higher pay/higher Grade Pay under MACP Scheme (vide para (20) of
      the MACP Scheme).
D            15. The distinction between the ACP Scheme and MACP Scheme
      can be well understood by reference to the Pay Scale under the Fifth
      Central Pay Commission and the revised pay structure under the Sixth
      Central Pay Commission and the corresponding Grade Pay thereon as
      stated in Section-1, Part-A of the First Schedule of CCS (Revised Pay)
      Rules, 2008.
E                             THE FIRST SCHEDULE
                                (SEE RULES 3 & 4)
                                      PART – A
                                     SECTION I
F            Revised Pay Bands and Grade Pays for posts carrying present
             scales in Group ‘A’, ‘B’, ‘C’ & ‘D’ except posts for which different
             revised scales are notified separately.
                             Present Scale                            Revised Pay Structure
              Sl.No.    Post/Gr       Present Scale      Name of        Correspond ing    Correspondin
                         ade                               Pay                Pay         g Grade Pay
                                                        Band/Scal e      Ban ds/Scales
                (1)       (2)              (3)             (4)                (5)              (6)
G                 5.     S-4     2750-70-3800-75-4400     PB-1            5200-20200          1800
                  6.     S-5     3050-75-3950-80-4590     PB-1            5200-20200          1900
                  7.     S-6     3200-85-4900             PB-1            5200-20200          2000
                  8.     S-7     4000-100-6000            PB-1            5200-20200          2400
                  9.     S-8     4500-125-7000            PB-1            5200-20200          2800
                  10.    S-9     5000-150-8000            PB-2            9300-34800          4200
                  11.    S-10    5500-175-9000            PB-2            9300-34800          4200
                  12.    S-11    6500-200-6900            PB-2            9300-34800          4200
                  13.    S-12    6500-200-10500           PB-2            9300-34800          4200
                  14.    S-13    7450-225-11500           PB-2            9300-34800          4600
H                 15.    S-14    7500-250-12000           PB-2            9300-34800          4800
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                           867
                 [R. BANUMATHI, J.]

        16. Upon implementation of the Sixth Central Pay Commission,       A
the Pay Scale of 3050-75-3950-80-4590 was kept in Pay Band-1 i.e.
Rs.5200-20200 with Grade Pay of Rs.1900/-. Likewise, the Pay Scale
of 3200-85-4900 was kept in Pay Band-1 i.e. 5200-20200 with Grade
Pay of Rs.2000/-. Pay Scale of Upper Division Clerk 4000-100-6000
was also kept in the same Pay Band-1 i.e. 5200-20200 but with Grade
                                                                           B
Pay of Rs.2400/-. Under the ACP Scheme, the Government employee
who was working as Lower Division Clerk in the Pay Scale of 3050-75-
3950-80-4590, on completion of 12 years of service, would be entitled to
the financial upgradation in the next promotional hierarchy i.e. in the
cadre of UDC i.e. Pay Scale of4000-100-6000 while working in the
same capacity as LDC. Whereas under the MACP Scheme, the                   C
Government servant who is Lower Division Clerk in the Pay Band-1 i.e.
Rs.5200-20200/- with Grade Pay of Rs.1900/-, on completion of 10 years
of service upon grant of financial upgradation, would be getting the
immediate next higher Grade Pay of Rs.2000/- and not the grade pay on
promotional hierarchy. Following the erstwhile ACP Scheme (as per
                                                                           D
which financial upgradation was granted in promotional hierarchy), the
respondents are claiming the benefit of Grade Pay of Rs.4200/- (which
is in the next promotional hierarchy). While the respondents are granted
financial upgradations as per the prevailing rules of MACP Scheme,
they can only claim the immediate next higher Grade Pay and not the
Grade Pay in the next promotional hierarchy.                               E
       17. As noted above, under the Sixth Pay Commission, scales of
pay of various hierarchies namely Lower Division Clerk and Upper
Division Clerk are all placed in the Pay Band-I i.e. Rs.5200-20200, of
course with different Grade Pay. When the respondents are enjoying
the benefit of the Sixth Pay Commission by getting higher pay scale,       F
they should go by the Scheme in accepting what it gives on the financial
upgradation; but the respondents are claiming the best of the benefits
from both the ACP and MACP Schemes. The respondents have already
been granted the beneficial pay upgradation as per the prevailing rules
of MACP Scheme on the recommendation of the Sixth Central Pay
Commission. The previous ACP Scheme was withdrawn and superseded           G
by MACP Scheme with effect from 01.09.2008 based on the
recommendation of the Sixth Central Pay Commission. Under MACP
Scheme, the respondent can only claim immediate next Grade Pay and
not the corresponding Grade Pay in promotional hierarchy.
                                                                           H
868            SUPREME COURT REPORTS                          [2020] 7 S.C.R.


A            18. As discussed earlier, in the ACP Scheme, there was no Grade
      Pay but only fixed Pay Scales and fixed increments were there. After
      the Sixth Central Pay Commission, various Pay Scales have been clubbed
      together and there is revised Pay Scale with corresponding Pay Bands
      and corresponding Grade Pay. As discussed earlier, the norms for grant
      of ACP were stringent and the government servant has to satisfy the
B
      norms for promotion. Whereas under the MACP Scheme, for financial
      upgradation, the rigour of screening is diluted. For upgradation under the
      MACP Scheme, the benchmark of “Good” would be applicable till the
      Grade Pay of Rs.6600/- in Pay Band-3. The benchmark will be “Very
      Good” for financial upgradation to the Grade Pay of Rs.7600/- and above.
C           Contentions:-
             19. Ms. Madhvi Divan, learned ASG appearing on behalf of Union
      of India has taken us through the salient features of both ACP and MACP
      schemes and submitted that ACP and MACP schemes shall be subject
      to the conditions mentioned thereon. Learned ASG has submitted that
D     Sixth Central Pay Commission took the view that ACP led to disparities
      within the employees in different organisations/departments and
      recommended adoption of the modified scheme which was accepted by
      the Government and Sixth Central Pay Commission and MACP scheme
      are being implemented. It was submitted that under the ACP scheme,
E     the employee is entitled to financial upgradations (two times – on
      completion of 12 and 24 years of regular service) as per promotional
      hierarchy. Whereas under the MACP scheme, the financial upgradations
      (three times – on completion of 10, 20 and 30 years of regular service)
      are fixed on the basis of immediate next grade pay and therefore, ACP
      and MACP schemes are significantly different in terms of the effect
F     and benefit to the employees. Learned ASG submitted that the previous
      ACP scheme was withdrawn and it is superseded by the MACP scheme
      w.e.f. 01.09.2008 and the respondents while enjoying the benefits of
      revised pay structure under the Sixth Central Pay Commission, cannot
      cherry-pick the benefit of financial upgradation in the next promotional
G     hierarchy under the erstwhile ACP scheme. Learned ASG has further
      submitted that it is the prerogative of the Government to provide any
      financial benefit to its employees and so long as such scheme is not
      discriminatory or arbitrary, the Court may not interfere with schemes of
      Government fixing pay scales and granting incentives.

H
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                             869
                 [R. BANUMATHI, J.]

       20. Mr. Vinay Kumar Garg, learned Senior counsel appearing on         A
behalf of some respondents has submitted that pay band includes a bracket
of erstwhile pay scale and the grade pay and the concept of grade pay is
a fitment benefit applicable to different pay. Learned Senior counsel
submitted that when a person is to be given benefit, pay, allowance or
upgradation of the pay has to be given and in such a case, the upgradation
                                                                             B
has to be in the next hierarchy of promotional position i.e. grade pay in
the next promotional position. It was submitted that pay, allowance and
financial upgradation granted to the employees are the “conditions of
service” and the same cannot be altered at the will of the employer-
Government. Learned Senior counsel further submitted that MACP
scheme envisages merely placement in the immediate next higher grade         C
pay and the word “hierarchy” cannot be dissected from the “recruitment”
and “conditions of service”. It was submitted that as per Rule 3(7) of
Central Civil Services (Revised Pay) Rules, 2008, “revised pay
structure” in relation to any post specified in column (2) of the First
Schedule means the pay band and grade pay specified against that
                                                                             D
post or the pay scale specified in column (5) and (6) thereof. It was
submitted that while granting financial upgradation under MACP scheme,
the same has to be in the “higher grade pay in the next promotional
hierarchy and not merely in the hierarchy of grade pay”.
       21. Mr. Jaideep Gupta, learned amicus assisted by Kunal Chatterji
submitted that the object and purpose of the 1999 ACP was to mitigate        E
hardship in case of acute stagnation either in a cadre or in an isolated
post and MACP scheme of 2009 is also for the same purpose and grant
of financial upgradation under MACP scheme is only continuation of the
existing scheme with certain modifications. Learned amicus further
submitted financial upgradation which is granted under the ACP and           F
MACP both involve fixation/refixation of pay and allowance which
become the basis of the fixation of pay and allowances for the rest of
the career of the employee concerned and such financial upgradation is
not merely a special allowance which can be granted or taken back at
the will of the employer. Learned amicus has submitted that MACP
scheme linked to the grade pay should not be taken into consideration        G
and MACP scheme should be interpreted to mean that financial
upgradation has to be granted to the grade pay of the next promotional
post and not to the next grade pay in the Schedule I to the CCS (Revision
of Pay) Rules. Learned amicus urged the Court to adopt a purposive
interpretation of the MACP scheme to grant financial upgradation in the      H
870            SUPREME COURT REPORTS                          [2020] 7 S.C.R.


A     next promotional hierarchy as in the erstwhile ACP scheme. It was
      contended that if financial upgradation is granted in the hierarchy of
      grade pay then MACP scheme would lead to a discriminatory treatment
      violating Article 14 of the Constitution of India. In this regard, learned
      amicus has drawn the attention of the Court to the discussion of the
      Joint Committee of MACP scheme held under the Chairmanship of the
B
      Joint Secretary (E) of the Department of Personnel and Training on
      06.10.2010.
             22. Mr. C.K. Sasi, learned counsel appearing for the respondents
      in SLP(C) No.21803 of 2014 and SLP(C) No.29605 of 2017 has submitted
      that when the Pay Commission and incentive scheme is introduced, the
C     employee’s interest has to be kept in view and the same cannot be
      disadvantageous to the employees when compared to the erstwhile
      scheme. In support of his contention, learned counsel has drawn our
      attention to the comparative chart which he has filed along with his
      written submission.
D            23. Reiterating the submissions of learned amicus and the other
      submissions, Ms. Prabha Swami, learned counsel appearing for the
      respondents in SLP(C) No.31125 of 2016 has taken us through the facts
      and submitted that if the ACP had been continued after the completion
      of twenty-four years of service, respondents (SLP(C) No.31125 of 2016)
E     would have been in the grade pay of Rs.5400/- in Pay Band-3 whereas
      due to MACP, the respondents were placed in grade pay of Rs.4600/- in
      Pay Band-2 and this has caused discrimination and financial hardship to
      the respondents. Learned counsel has also drawn our attention to the
      comparative chart and submitted that MACP scheme has operated to
      the disadvantage of the respondents.
F
             24. Mr. M.K. Bhardwaj, learned counsel representing the
      intervenors has drawn our attention to the Record Note of the meeting
      of the Joint Committee on MACP scheme held under the Chairmanship
      of the Joint Secretary, DOP&T on 15.09.2010 and submitted that the
      Committee had taken note of various anomalies and also as to how the
G     implementation of MACP has resulted as a disadvantage to the
      Government servants. Mr. Bhardwaj has drawn our attention to various
      anomalies noted by the Committee and submitted that in Raj Pal’s case,
      the Record Note of the third meeting of MACP scheme held on 15.03.2011
      was taken note by the High Court and the High Court rightly held that
H     Raj Pal is entitled to financial upgradation in the grade pay based on the
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                             871
                 [R. BANUMATHI, J.]

next promotional hierarchy. It was submitted that if the financial           A
upgradation is to be granted on the basis of next grade pay, it would be
greatly disadvantageous to the employees.
      Discussion and findings:-
       25. Though various contentions have been raised assailing the
MACP Scheme viz. “financial upgradation in the next Grade Pay”               B
and “no stepping up of pay on the ground that junior getting more
pay”, be it noted that the clauses of the MACP Scheme including the
clause providing the financial upgradation in the next Grade Pay have
not been challenged by the respondents. In the impugned judgments, the
Tribunals/High Courts have only relied upon Raj Pal’s case and not gone      C
into the MACP Scheme vis-à-vis erstwhile ACP Scheme and also not
considered the merits of the contention of the respondents. We have
therefore, considered the MACP Scheme vis-à-vis erstwhile ACP
Scheme in the light of the contentions raised by the respondent.
       26. As pointed out earlier, both ACP and MACP Schemes are in          D
the nature of incentive schemes devised with the object of ensuring that
the employees who are unable to avail of adequate promotional
opportunities, get some relief from stagnation in the form of financial
benefits. Under the MACP Scheme, financial upgradations are granted
at three regular intervals on completion of 10-20-30 years of service
without promotion. Hence, it is also intended to ensure that the employees   E
are adequately incentivised to work efficiently despite not getting
promotion for want of promotional avenue. The change in policy brought
about by supersession of the ACP Scheme with the MACP Scheme is
after well-deliberated and well-documented recommendations of the Sixth
Central Pay Commission. Considering the various issues in the                F
implementation of the ACP Scheme, the Pay Commission expressed its
views “the only other way is to bring systematic changes in the existing
Scheme of ACP so that all the employees irrespective of the existing
hierarchy structure in their organisations/cadres, get some benefit under
it”. The Commission therefore, recommended that the existing Scheme
of ACP be continued with the modifications indicated thereon in the          G
Report that the financial upgradation has to be in the next immediate
Grade Pay. One of the reasons for the expert body recommending the
MACP Scheme was that there were inter-departmental disparities where
several departments had varying promotional hierarchies. As a result,
the working of ACP Scheme under which an employee who stagnated              H
872            SUPREME COURT REPORTS                          [2020] 7 S.C.R.


A     for 12 years, was entitled to pay in the Pay Scale of the next promotional
      post, led to inter-departmental anomalies. The Pay Commission therefore,
      recommended MACP Scheme with a view to putting an end to the problem
      ensuing from inter-departmental disparities.
             27. The learned amicus and the learned counsel appearing for
B     the respondents urged the court to adopt a “purposive interpretation”
      that the words “immediate next higher Grade Pay” to be interpreted as
      “Grade Pay of the next promotional post” in the hierarchy. MACP Scheme
      envisages merely placement in the immediate next higher Grade Pay.
      By perusal of the MACP Scheme extracted earlier, it is seen that the
      words used in the Scheme are “placement in the immediate next higher
C     Grade Pay in the hierarchy of the recommended revised pay bands”.
      The term “Grade Pay in the next promotional post” is conspicuously
      absent in the entire body of the MACP Scheme. The argument of the
      respondents that the benefit of MACP Scheme is referable to the
      promotional post, is de hors the MACP Scheme and cannot be accepted.
D     Though ACP and MACP Schemes are intended to provide relief against
      stagnation, both the Schemes have different features. Pay scales under
      the Sixth Pay Commission and the MACP Scheme are stated to be
      more beneficial since it extends to the employees with time intervals
      with higher pay bands and various facilities which were not available
      under the ACP Scheme including the three financial upgradations in shorter
E     time span. In any event, MACP Scheme has not been challenged by the
      respondents. As rightly contended by the learned ASG, the respondents
      cannot be permitted to cherry-pick beneficial features from the erstwhile
      ACP Scheme and also take advantage of the beneficial features in the
      MACP Scheme.
F            28. The object behind the MACP Scheme is to provide relief against
      the stagnation. If the arguments of the respondents are to be accepted,
      they would be entitled to be paid in accordance with the grade pay offered
      to a promotee; but yet not assume the responsibilities of a promotee. As
      submitted on behalf of Union of India, if the employees are entitled to
G     enjoy Grade Pay in the next promotional hierarchy, without the
      commensurate responsibilities as a matter of routine, it would have an
      adverse impact on the efficiency of administration.
            29. The change in policy brought about by supersession of ACP
      Scheme with the MACP Scheme is after consideration of all the
H     disparities and the representations of the employees. The Sixth Central
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                             873
                 [R. BANUMATHI, J.]

Pay Commission is an expert body which has comprehensively examined          A
all the issues and the representations as also the issue of stagnation and
at the same time to promote efficiency in the functioning of the
departments. MACP Scheme has been introduced on the
recommendation of the Sixth Central Pay Commission which has been
accepted by the Government of India. After accepting the
                                                                             B
recommendation of the Sixth Central Pay Commission, the ACP Scheme
was withdrawn and the same was superseded by the MACP Scheme
with effect from 01.09.2008. This is not some random exercise which is
unilaterally done by the Government, rather, it is based on the opinion of
the expert body – Sixth Central Pay Commission which has examined
all the issues, various representations and disparities. Before making the   C
recommendation for the Pay Scale/Revised Pay Scale, the Pay
Commission takes into consideration the existing pay structure, the
representations of the government servants and various other factors
after which the recommendations are made. When the expert body like
Pay Commission has comprehensively examined all the issues and
                                                                             D
representations and also took note of inter-departmental disparities owing
to varying promotional hierarchies, the court should not interfere with
the recommendations of the expert body. When the government has
accepted the recommendation of the Pay Commission and has also
implemented those, any interference by the court would have a serious
impact on the public exchequer.                                              E
      30. Observing that it is the function of the Government which
normally acts on the recommendations of the Pay Commission which is
the proper authority to decide upon the issues, in Union of India and
another v. P.V. Hariharan and another (1997) 3 SCC 568, it was
held as under:-                                                              F
      “5. ….. It is the function of the Government which normally acts
      on the recommendations of a Pay Commission. Change of pay
      scale of a category has a cascading effect. Several other categories
      similarly situated, as well as those situated above and below, put
      forward their claims on the basis of such change. The Tribunal         G
      should realise that interfering with the prescribed pay scales is a
      serious matter. The Pay Commission, which goes into the problem
      at great depth and happens to have a full picture before it, is the
      proper authority to decide upon this issue. Very often, the doctrine
      of “equal pay for equal work” is also being misunderstood and
                                                                             H
874            SUPREME COURT REPORTS                            [2020] 7 S.C.R.


A           misapplied, freely revising and enhancing the pay scales across
            the board. We hope and trust that the Tribunals will exercise due
            restraint in the matter. Unless a clear case of hostile discrimination
            is made out, there would be no justification for interfering with the
            fixation of pay scales. We have come across orders passed by
            Single Members and that too quite often Administrative Members,
B
            allowing such claims. These orders have a serious impact on the
            public exchequer too. It would be in the fitness of things if all
            matters relating to pay scales, i.e., matters asking for a higher pay
            scale or an enhanced pay scale, as the case may be, on one or the
            other ground, are heard by a Bench comprising at least one Judicial
C           Member. ….”
           31. Observing that the decision of expert bodies like the Pay
      Commission is not ordinarily subject to judicial review, in State of U.P.
      and Others v. U.P. Sales Tax Officers Grade II Association (2003)
      6 SCC 250, the Supreme Court held as under:-
D           “11. There can be no denial of the legal position that decision of
            expert bodies like the Pay Commission is not ordinarily subject to
            judicial review obviously because pay fixation is an exercise
            requiring going into various aspects of the posts held in various
            services and nature of the duties of the employees…...”.
E            32. In Secretary, Government (NCT of Delhi) and others v.
      Grade-1 Officers Association and others (2014) 13 SCC 296, the
      Supreme Court refused to interfere with the ACP Scheme as it would
      violate government policy and since exercise of judicial review would
      not be proper, upheld the ACP Scheme and the conditions therein.
F            33. In State of Tamil Nadu v. S. Arumugham (1998) 2 SCC
      198, the Supreme Court has observed that the government has the right
      to frame a policy to ensure efficiency and proper administration and to
      provide to suitable avenues for promotion to officers working in different
      department. The Supreme Court has further observed that the Tribunal
G     cannot substitute its own views for the views of the government or direct
      new policy based on the views of Tribunal.
            34. Observing that fixation of pay and determination of
      responsibilities is a complex matter which is for the executive to take a
      decision, the courts should approach such matters with restraint, in State
      of Haryana and Another v. Haryana Civil Secretariat Personal Staff
H
      Association (2002) 6 SCC 72, the Supreme Court held as under:-
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                                  875
                 [R. BANUMATHI, J.]

       “10. It is to be kept in mind that the claim of equal pay for equal        A
       work is not a fundamental right vested in any employee though it
       is a constitutional goal to be achieved by the Government. Fixation
       of pay and determination of parity in duties and responsibilities is
       a complex matter which is for the executive to discharge. While
       taking a decision in the matter, several relevant factors, some of
                                                                                  B
       which have been noted by this Court in the decided case, are to
       be considered keeping in view the prevailing financial position
       and capacity of the State Government to bear the additional liability
       of a revised scale of pay……… That is not to say that the matter
       is not justiciable or that the courts cannot entertain any proceeding
       against such administrative decision taken by the Government.              C
       The courts should approach such matters with restraint and
       interfere only when they are satisfied that the decision of the
       Government is patently irrational, unjust and prejudicial to a section
       of employees and the Government while taking the decision has
       ignored factors which are material and relevant for a decision in
                                                                                  D
       the matter. Even in a case where the court holds the order passed
       by the Government to be unsustainable then ordinarily a direction
       should be given to the State Government or the authority taking
       the decision to reconsider the matter and pass a proper order.
       The court should avoid giving a declaration granting a particular
       scale of pay and compelling the Government to implement the                E
       same……”. [Underlining added]
       35. The prescription of Pay Scales and incentives are matters
where decision is taken by the Government based upon the
recommendation of the expert bodies like Pay Commission and several
relevant factors including financial implication and court cannot substitute      F
its views. As held in Haryana Civil Secretariat Personal Staff
Association (2002) 6 SCC 72, the court should approach such matters
with restraint and interfere only when the court is satisfied that the decision
of the Government is arbitrary. Even in a case where the court takes the
view that order/Scheme passed by the Government is not an equitable
one, ordinarily only a direction could be given to the State Government           G
or the authority for consideration of the matter and take a decision. In
the present batch of cases where the respondents are claiming financial
upgradation in the grade pay of promotional hierarchy, no grounds are
made out to show that the MACP Scheme granting financial upgradation
in the next grade pay is arbitrary and unjust; warranting interference.           H
876            SUPREME COURT REPORTS                           [2020] 7 S.C.R.


A     The implementation of the MACP Scheme is claimed to have led to
      certain anomalies; but as pointed out earlier, MACP Scheme itself is not
      under challenge.
             36. Raj Pal’s Case – Whether could have been taken as a
      precedent:- In almost all the cases, the High Courts have relied upon
B     Raj Pal’s case only on the basis that Raj Pal’s case was dismissed by
      the Supreme Court. Even at the outset, it is to be pointed out that Raj
      Pal’s case, SLP (C) No. ……CC 7467 of 2013 was dismissed by the
      Supreme Court vide order dated 15.04.2013 on the ground that there
      was no sufficient explanation to condone the delay in refiling the Special
      Leave Petition which is a default in the manner in which the case was
C     prosecuted and not a dismissal on merits. Be that as it may, since various
      High Courts have relied upon Raj Pal’s case, it is necessary to refer to
      the facts, findings thereon and whether it could have been followed as
      precedent.
             37. Raj Pal was working in the post of Photocopier w.e.f.
D     12.10.1986 in the pay scale of Rs.3050-4590/- in the Central
      Administrative Tribunal, Chandigarh Bench, Chandigarh. The post of
      Photocopier is an isolated post. Upon introduction of the ACP Scheme
      in the year 1999, on completion of twelve years of regular service, Raj
      Pal was granted the next higher scale in the hierarchy of pay scales i.e.
E     Rs.3200-4590/- vide order dated 12.10.1999. At that point of time, Raj
      Pal claimed parity with other posts like Hindi Typist/LDC which was
      also in the equivalent pay scale of Rs.3050-4590/- and had been placed
      in the scale of Rs.4000-6000/- on the grant of 1st financial step up on
      completion of twelve years of regular service. He also claimed that on
      completion of twenty-four years of regular service in second financial
F     step up, he should be placed in the scale of Rs.5500-9000/-. In the earlier
      round of litigation, Raj Pal filed O.A. No.278/CH/2004 claiming the
      aforesaid parity with posts like Hindi Typist/LDC and the same was
      allowed by Central Administrative Tribunal by its order dated 30.08.2004
      whereby Raj Pal was held entitled to the benefit of higher pay scale
G     under the ACP Scheme of 1999 as applicable for the similar posts i.e.
      Hindi Typist/LDC. The order dated 30.08.2004 was challenged by Union
      of India before the High Court in CWP No.7356/CAT of 2005 and the
      same was dismissed vide order dated 23.05.2007.
             38. For proper appreciation of Raj Pal’s case, we may refer to
H     the relevant scales of pay with revised Pay Bands, which are as under:-
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                                 877
                 [R. BANUMATHI, J.]

               Present Scale                     Revised Pay Structure           A
  Sl.No. Post/Grade Present Scale    Name of       Corresponding Corresponding
                                       Pay              Pay          Grade Pay
                                    Band/Scale     Bands/Scales
  (1)       (2)          (3)           (4)              (5)             (6)
    6.      S-5     3050-75-3950-     PB-1          5200-20200         1900
                    80-4590
  7.        S-6     3200-85-4900      PB-1          5200-20200        2000
  8.        S-7     4000-100-6000     PB-1          5200-20200        2400
                                                                                 B
  9.        S-8     4500-125-7000     PB-1          5200-20200        2800
  10.       S-9     5000-150-8000     PB-2          9300-34800        4200
  11.      S-10     5500-175-9000     PB-2          9300-34800        4200

Upon implementation of the Sixth Central Pay Commission, the scale of
Rs.3050-4590/- was kept in PB-1-Rs.5200-20200/- with grade pay of                C
Rs.1900/-. The scale of Rs.4000-6000/- was also kept in PB-1 with
grade pay of Rs.2400/-. The scale of Rs.5500-9000/- was kept in PB-2-
Rs.9300-34800/- with grade pay of Rs.4200/-. In terms of MACP
Scheme, by the order dated 09.08.2010, Raj Pal was granted second
financial upgradation in the PB-1 of Rs.5200-20200/- with grade pay of
Rs.2400/-.                                                                       D
       39. Raj Pal filed OA No. 1038/CH/2010 before CAT contending
that his pay has been wrongly fixed in PB-1 in the scale of Rs.5200-
20200/- with Grade Pay of Rs. 2400/-. He claimed that he was entitled
to be fixed in PB-2 in the scale of Rs.9300-34800/- with Grade Pay of
Rs. 4600/-. Raj Pal relied on para (6) of the MACP Scheme as per                 E
which in case of employees granted financial upgradations under ACP
Scheme till 01.01.2006, their revised pay will be fixed with reference to
the pay scale granted to them under ACP. The Tribunal vide its order
dated 31.05.2011 noted that it is not disputed that the post held by Raj
Pal has been declared equivalent to the post of LDC/Hindi Typist etc.
                                                                                 F
by the Tribunal as well as the High Court in matters of grant of ACP and
these pronouncements have attained finality and also stood implemented.
The OA was allowed and the appellants were directed to grant second
financial upgradation in the promotional hierarchy in PB-2 in the scale of
Rs.9300-34,800/- with Grade Pay of Rs.4,200/- to Raj Pal under the
MACP from due date and fix his pay in the hierarchy of posts decided in          G
his case earlier. The appellants filed CWP No.19387 of 2011 before the
High Court assailing the aforesaid order. It was inter alia contended by
the appellants that the earlier ACP Scheme stood superseded by the
MACP scheme and both the schemes cannot run concurrently. The said
writ petition was dismissed by the High Court.
                                                                                 H
878             SUPREME COURT REPORTS                           [2020] 7 S.C.R.


A           40. The above judgment of the High Court was challenged in the
      Supreme Court by filing SLP (C) No. ….CC 7467 of 2013. The SLP
      was filed on 24.12.2011; but some defects were observed by the Court
      Registry and returned for rectification whereafter the SLP was refiled
      only on 21.03.2013. The SLP was dismissed by the Hon’ble Chamber
      Judge vide order dated 15.04.2013 on the ground that sufficient
B
      explanation has not been given to condone the delay in refiling the SLP.
              41. Insofar as Raj Pal’s case is concerned, in view of the dismissal
      of the earlier writ petition i.e. CWP No.7356/CAT of 2005, Principal
      Bench of the Tribunal issued letter dated 02.08.2007 directing all the
      Benches of the Tribunal that the Photocopiers working in the respective
C     Benches may be granted 1st financial upgradation under ACP Scheme
      in the scale of pay of Rs.4000-6000/- and 2nd financial upgradation in the
      scale of Rs.5500-9000/-. In Raj Pal’s case, taking note of the earlier
      round of litigation i.e. O.A.No.278/CH/2004 and CWP No.7356/CAT of
      2005 and the letter sent by the Principal Bench of the Tribunal dated
D     02.08.2007 in its order dated 31.05.2011 in O.A. No. 1038/CH/2010, the
      Tribunal held that Raj Pal having been placed under ACP scheme –
      second financial upgradation in the scale of Rs.5500-9000/- is entitled to
      PB-2 (Rs.9300-34800/- with grade pay of Rs.4200/-). The relevant
      findings of the Tribunal in O.A. No.1038/CH/2010 read as under:-
E           “4. The respondents took the matter to Punjab and Haryana High
            Court by way of filing a CWP No.7356 CAT of 2005. The CWP
            was dismissed vide order dated 23.05.2007, holding the applicant
            entitled to the benefit of ACP at par with the LDC/Hindi Typist,
            etc. It was thereafter that the Principal Bench of the Tribunal
            issued letter dated 02.08.2007, directing all the Benches of the
F           Tribunal that the Photocopiers working in respective Benches may
            be granted 1st financial upgradation under ACP Scheme in the
            scale of pay of Rs.4000-6000 and 2nd financial upgradation in the
            scale of Rs.5500-9000.
            ………..
G
            12. There is no dispute that the applicant is holding the post of
            photocopier, which is an isolated post, having no avenues for
            promotion. It is also not disputed that, the post held by the applicant
            had been declared equivalent to the post of LDC/Hindi Typist,
            etc. by the Tribunal as well as the High Court by judicial
H
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                                 879
                 [R. BANUMATHI, J.]

       pronouncement in matters of grant of ACP, which have attained             A
       finality and stands implemented also. Accordingly, applicant was
       granted 1st ACP (under the old ACP) w.e.f. 09.08.1999 in the pay
       scale of Rs.4000-6000.” [Underlining added]
       42. It was on the above, the Tribunal held that the post of
Photocopier being an isolated post and in view of the letter dated               B
02.08.2007 sent by the Principal Bench and taking note of the earlier
round of litigation, the Tribunal directed that Raj Pal be granted PB-2-
Rs.9300-34800/- with grade pay of Rs.4200/-. In the case of Raj Pal,
the post of Photocopier, being an isolated post, the order was passed in
the peculiar facts and circumstances of the case. Rajpal’s case did not
go into any details in respect of the overall features of the new MACP           C
Scheme and did not consider the recommendations of the expert body
which culminated in the new Scheme. The order passed in Raj Pal’s
case could not have been taken as a precedent in other cases. This is all
the more so when SLP (C) No.….CC 7467 of 2013 was dismissed by
the Supreme Court on the ground of delay in refiling the Special Leave           D
Petition and no decision was rendered on merits.
       Dismissal of case by the Supreme Court on the ground of
       delay in filing/non-filing, is not a binding precedent:-
       43. As noted above, SLP preferred by Union of India against the
order dated 19.10.2011 passed by the High Court was dismissed on the             E
ground that the delay in refiling has not been satisfactorily explained.
The question which arises for consideration is when the SLP has been
dismissed on the ground of delay in filing or of refiling (like in the case of
Raj Pal), whether it can be taken as a binding precedent on the merits of
the case as the “law declared by the Supreme Court within the meaning            F
of Article 141 of the Constitution of India”. Raj Pal’s case having
been dismissed on the ground that no sufficient cause was shown for
the delay in refiling, in our considered view, Raj Pal’s case ought not to
have been quoted as a precedent of this Court by the High Courts.
       44. Article 141 of the Constitution of India provides that the law        G
declared by the Supreme Court shall be binding on all courts within the
territory of India, i.e. the pronouncement of the law on the point shall
operate as a binding precedent on all courts within India. Law declared
by the Supreme Court has to be essentially understood as a principle laid
down by the court and it is this principle which has the effect of a
                                                                                 H
880            SUPREME COURT REPORTS                           [2020] 7 S.C.R.


A     precedent. A principle as understood from the word itself is a proposition
      which can only be delivered after examination of the matter on merits. It
      can never be in a summary manner, much less be rendered in a decision
      delivered on technical grounds, without entering into the merits at all. A
      decision, unaccompanied by reasons can never be said to be a law
      declared by the Supreme Court though it will bind the parties inter-se in
B
      drawing the curtain on the litigation. In Union of India v. All India
      Service Pensioners’ Association and another (1988) 2 SCC 580,
      the Supreme Court held that “when reasons were made by the Supreme
      Court for dismissing the SLP, the decision becomes one which attracts
      Article 141 of the Constitution which provides that the law declared
C     by the Supreme Court shall be binding on all the courts within the
      territory of India……”.
             45. Observing that when a Special Leave Petition is dismissed by
      a non-speaking order, by such dismissal, the Supreme Court does not lay
      down any law as envisaged under Article 141 of the Constitution of
D     India in Supreme Court Employees Welfare Association v. Union of
      India and Others (1989) 4 SCC 187, this Court held as under:-
            “22. ….It is now a well-settled principle of law that when a special
            leave petition is summarily dismissed under Article 136 of the
            Constitution, by such dismissal this Court does not lay down any
E           law, as envisaged by Article 141 of the Constitution, as contended
            by the learned Attorney General. In Indian Oil Corporation Ltd.
            v. State of Bihar (1986) 4 SCC 146 it has been held by this Court
            that the dismissal of a special leave petition in limine by a non-
            speaking order does not justify any inference that, by necessary
            implication, the contentions raised in the special leave petition on
F           the merits of the case have been rejected by the Supreme Court.
            It has been further held that the effect of a non-speaking order of
            dismissal of a special leave petition without anything more
            indicating the grounds or reasons of its dismissal must, by necessary
            implication, be taken to be that the Supreme Court had decided
G           only that it was not a fit case where special leave petition should
            be granted. In Union of India v. All India Services Pensioners’
            Association (1988) 2 SCC 580 this Court has given reasons for
            dismissing the special leave petition. When such reasons are given,
            the decision becomes one which attracts Article 141 of the
            Constitution which provides that the law declared by the Supreme
H
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                                881
                 [R. BANUMATHI, J.]

      Court shall be binding on all the courts within the territory of India.   A
      It, therefore, follows that when no reason is given, but a special
      leave petition is dismissed simpliciter, it cannot be said that there
      has been a declaration of law by this Court under Article 141 of
      the Constitution.” [underlining added]
       Raj Pal’s case having been dismissed on the ground that no               B
sufficient cause was shown for the delay in refiling, Raj Pal’s case ought
not to have been quoted as precedent of this Court by the High Courts.
       46. The learned counsel for the intervenors has referred to the
record note of the meetings of the Joint Committee of MACP held under
the chairmanship of JS(Establishment), DoP&T on 15.09.2010 and other            C
dates and drawn our attention to various items viz. Item No.1-Provide
for Grade Pay of the Next Promotional Post under MACP; Item No.3-
Option for Earlier ACP Scheme; Item No.8-Anomaly on Introduction of
MACP Scheme; and Item No.29 - Modification in MACP Scheme. In
response to the above submission, Union of India has filed additional
written submission referring to the decision in various meetings of the         D
Joint Committee on MACP held on various dates.
       47. 2nd Meeting of the Joint Committee dated 15.09.2010:-
In the 2nd Meeting of the Joint Committee held on 15.09.2010, it was
decided that organisations/cadres would be given the option to choose
either the ACP Scheme or the MACP Scheme. It was also decided that              E
individual options would not be permitted. Since the ACP and MACP
Scheme were fallback options for stagnating employees, it was therefore
decided that process of completing cadre restructuring in a time bound
manner would solve the problem of stagnation. It was further decided
that cadre structure had to be reviewed periodically to harmonise the           F
functional needs of the organisation and career progression of employees.
(Vide copy of O.M. dated 10.02.2011).
       48. 3rd Meeting of the Joint Committee dated 15.03.2011:-
In the 3rd Meeting of the Joint Committee held on 15.03.2011, the staff
side reiterated their demand that the MACP Scheme should be granted             G
in the promotional hierarchy of posts rather than in the grade pay
hierarchy. The official side had suggested that the Government was
willing to consider a revision in the MACP Scheme to the effect that
organisations/cadres shall have the option to choose either the ACP
Scheme or the MACP Scheme. But the staff side stated that such a
                                                                                H
882             SUPREME COURT REPORTS                            [2020] 7 S.C.R.


A     dispensation would not be practical and there was a need to explore
      other alternatives to solve the issue. Therefore, it was agreed between
      the staff side and the official side that there was no need to change the
      basic structure of MACP Scheme, but there was a need to separately
      examine those cases where MACP Scheme was less advantageous
      than the ACP Scheme (Vide the Minutes of the 3rd Meeting of Joint
B
      Committee dated 15.03.2011). Pursuant to the decision of the 3rd Meeting
      of Joint Committee, it was decided that the official side would write to
      the Ministry of Railways, Defence, Urban Development, Home Affairs
      and the Department of Posts to forward information in respect of the
      specific categories of employees where the MACP was less
C     advantageous than the erstwhile ACP Scheme. Accordingly, these
      Ministries/Departments were requested to send specific cases wherein,
      it was less advantageous for employees under MACP Scheme as
      compared to ACP Scheme. It is stated that no Ministry/Department
      other than Ministry of Urban Development had responded. (Vide Copy
      of Minutes dated 15.03.2011)
D
             49. Meeting of the Joint Committee dated 27.07.2012:- In
      the meeting of the Joint Committee held on 27.07.2012, the official side
      stated that it was not possible to give individual options to the employees
      to opt for erstwhile ACP Scheme in preference to MACP Scheme for
E     availing the benefit of financial upgradation.
              50. Letter dated 04.11.2013:- Pursuant to the Joint Committee
      meeting held on 27.07.2012, a letter dated 04.11.2013 was sent to the
      staff side making it clear that the solution lies in review of cadre structure
      in a time bound manner with a view to mitigate the problem of stagnation
F     as the benefit of Modified Assurance Career Progression Scheme have
      been granted as a fallback option in the event of promotions not taking
      place in time. With regard to letter dated 04.11.2013 which relates only
      to Postal Department, it is clarified that in the Department of Posts, the
      erstwhile ACP Scheme was not operational for postal employees. These
      employees were covered under Time Bound One Promotion (TBOP)/
G     Biennial Cadre Review (BCR) Schemes. The MACP Scheme for Central
      Government employees is a continuation of ACP Scheme. Insofar as
      Department of Posts is concerned, it was decided by the Department of
      Posts to adopt MACP Scheme in respect of postal employees also w.e.f.
      01.09.2008. Accordingly, O.M. No.4-7/(MACPS)/2009-PCC dated
H
 UNION OF INDIA AND OTHERS v. M. V. MOHANAN NAIR                              883
                 [R. BANUMATHI, J.]

18.09.2009 was issued by Department of Posts to clarify that TBOP/            A
BCR Schemes stand discontinued w.e.f. 01.09.2008 consequent upon
introduction of MACPS to postal employees w.e.f. 01.09.2008. The O.M.
dated 1-20/2008-PCC dated 04.11.2013 was issued to regulate the fixation
of pay in respect of postal employees during the period 01.01.2006 to
31.08.2008 i.e. before the switch over to MACPS took place. It is
                                                                              B
stated that the O.M. dated 04.11.2013 was only in respect of postal
employees governed under TBOP/BCR and does not relate to Central
Government employees who were covered under erstwhile ACP Scheme.
Therefore, this O.M. has no bearing on the issue in the said SLP pending
before Hon’ble Supreme Court of India.
                                                                              C
       51. The ACP Scheme which is now superseded by MACP Scheme
is a matter of government policy. Interference with the recommendations
of the expert body like Pay Commission and its recommendations for
the MACP, would have serious impact on the public exchequer. The
recommendations of the Pay Commission for MACP Scheme has been
accepted by the Government and implemented. There is nothing to show          D
that the Scheme is arbitrary or unjust warranting interference. Without
considering the advantages in the MACP Scheme, the High Courts erred
in interfering with the government’s policy in accepting the
recommendations of the Sixth Central Pay Commission by simply placing
reliance upon Raj Pal’s case. The impugned orders cannot be sustained         E
and are liable to be set aside.
       52. In the result, all the impugned orders in these batch of appeals
arising out of SLP(C) No.21803 of 2014, SLP(C) No.22181 of 2014,
SLP(C) No.23335 of 2014, SLP(C) No.23333 of 2014, SLP(C) No.18227
of 2015, SLP(C) No.31125 of 2016 and SLP(C) Diary No.6042 of 2017             F
are set aside and the appeals preferred by the Union of India are allowed.
Consequently, appeal arising out of SLP(C)No.33706 of 2016 is disposed
of. No costs.
       53. However, as pointed out earlier in para Nos. (47), (48) and
(49), since certain anomalies on implementation of the MACP Scheme            G
have been brought to the notice of the Joint Committee in the various
meetings of the Joint Committee, Union of India and DoP&T to consider
the same as they deem it appropriate and take a decision in accordance
with law.

                                                                              H
884            SUPREME COURT REPORTS                         [2020] 7 S.C.R.


A           54. We record our appreciation for the valuable assistance rendered
      by Mr. Jaideep Gupta, learned amicus assisted by learned counsel Mr.
      Kunal Chatterjee.


      Divya Pandey                                            Appeals disposed of.
B




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