UNION OF INDIA AND OTHERS versus M. V. MOHANAN NAIR

Citation: [2020] 7 S.C.R. 851 · Decided: 05-03-2020 · Supreme Court of India · Bench: R. BANUMATHI · Disposal: Disposed off

Cited by 4 judgment(s) · cites 5 · see the full citation network in Lexace

Judgment (excerpt)

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UNION OF INDIA AND OTHERS
v.
M. V. MOHANAN NAIR
(Civil Appeal No. 2016 of 2020)
MARCH 05, 2020
[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
Scheme was withdrawn and superseded by MACP Scheme –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 –
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
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
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
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.
[2020] 7 S.C.R. 851
851
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SUPREME COURT REPORTS
[2020] 7 S.C.R.
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
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.
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
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
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
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
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
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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

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