Libertatem Magazine

Appeals Arise Before the Supreme Court Questioning Whether the Government of India Is Justified in Implementing the MACPS for Civilian Employees From 01.09.2008 and Not From 01.01.2006

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Several appeals have been made before the Supreme Court questioning the stand of the Government of India in implementing the Modified Assured Career Progression Scheme (MACPS) for civilian employees of the Central Government and officers in All India Services, Chairpersons, Members of the Regulatory Bodies (except the RBI) with effect from 01.09.2008 and not from 01.01.2006.

Facts of the Case

The Respondent was appointed as Deputy Director in the Bureau of Industrial Costs and Prices in the Ministry of Industry, Department of Industrial Policy and Promotion which was subsequently merged with the Tariff Commission. He was promoted as Director by an order dated 09.02.1994. Central recommendations were made by the 5th Central Pay Commission for Central Government civilian employees in all the departments which came into force w.e.f. 01.01.1996.

The 6th Central Pay Commission submitted its report on 24th March 2008 relating to the structure of allowances, conditions of services, and retirement benefits of the Central Government employees. Recommendations were accepted by the Central Government concerning revised scales of pay allowances. Being aggrieved by this, the Respondent pointed out the anomalies in the implementation of the MACPS. The Respondent stated he was denied the benefit of the MACPS. The High Court allowed the Writ Petition and directed against Appellants to grant the second financial up-gradation to the Respondent under the MACPS.

Court’s Observations

The Court stated that the Respondents and other similarly situated employees are entitled to financial up-gradation under MACPS only to the next grade pay and not to the grade pay of the promotional post. Further, Benefits flowing from ACP & MACP Schemes are incentives and are not part of pay. Therefore, the Respondents and other similarly situated officers are not entitled to seek implementation of the benefits of MACPS.

Court’s Judgment

The Supreme Court had set aside the High Court’s judgment and allowed the appeals stating employees are entitled to financial up-gradation under MACPS only to the next grade pay and not to the grade pay of the promotional post.

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