UNION OF INDIA & ORS. versus BALBIR SINGH TURN & ANR.

Citation: [2017] 12 S.C.R. 421 · Decided: 08-12-2017 · Supreme Court of India · Bench: MADAN B. LOKUR · Disposal: Disposed off
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Judgment (excerpt)

[2017] 12 S.C.R. 421 
UNION OF INDIA & ORS. 
v. 
BALBIR SINGH TURN & ANR. 
(Civil Appeal Diary No. 3744 of2016) 
DECEMBER 08, 2017 
[MADAN B. LOKUR AND DEEPAK GUPTA, JJ.] 
A 
B 
Service Law - Army Personnel - Persons Below Officer Rank 
(PBOR) -
Modified Assured Career Progression (MACP) - Benefit 
C 
of - Denial - Propriety of - Respondents, PBORs retired after 
01.01.2006 but prior to 31.08.2008 - Respondents claimed that in 
terms of Govt. Resolution dated 30.08.2008, they are entitled to the 
benefit of MACP w.e.f 01.01.2006, i.e. the date from which the 
recommendation of 61h Central Pay Commission (CPC) with regard D 
to pay and benefits were made applicable by Central Govt. - Plea 
of appellant that since the MACP was applicable only w.e.f 
01.09.2008, therefore, the respondents who had retired prior to the 
said date were not entitled to the benefit of MACP - Held: Plea of 
appellant not tenable - Clause (i) of the 2008 Resolution, whereby 
E 
the recommendation of 61h CPC was accepted w.r.t. pay structure, 
pay scales, grade pay etc., clearly indicates that Central Govt. 
decided to implement the said revised pay structure of pay bands, 
grade pay and pension w.e.f 01.01.2006 - Further, this decision 
of the Cabinet could not have been modified by issuing executive 
instruction dated 30.05.2011 - Benefit of MACP in terms of 2008 
Resolution was payable w.e.f 01.01.2006 - Administrative law. 
Service Law - Modified Assured Career Progression (MACP) 
F 
- Benefit of. denied to the respondents by appellants holding the 
G 
same to be a part of allowances and thus applicable w.e.f 
01.09.2008 and not from 01.01.2006 as claimed by respondents -
Held: Benefit of MACP is part of the pay structure and will affect 
the grade pay of the employees and, therefore, it cannot be said 
that it is a part of allowances. 
421 
H 
, 
422 
SUPREME COURT REPORTS 
(2017] 12 S.C.R. 
A 
Disposing of the appeals, the Court 
HELD: 1.1 A bare perusal of Clause(!) of the 2008 
Resolution clearly indicates that the Central Government decided 
to implement the revised pay structure of pay bands and grade 
B pay, as well as pensio,n with effect from Ol.lil.2006. The second 
part of the Clause lays down that all allowances except the 
Dearness Allowance/relief will be effective from 01.09.2008. The 
Armed Forces Tribunal (AFT) rightly held that the benefit of 
Modified Assured Career Progression (MACP) is part of the pay 
c structure and will affect the grade pay of the employees and, 
therefore, it cannot be said that it is a part of allowances. The 
benefit of MACP if given to the respondents would affect their 
pension also. [Para 7] [426-B-D] 
1.2 Further, along with this Resolution there was 
D Annexure-1. Part A of Annexure-1 deals with the pay structure, 
grade pay, pay bands etc .. Part-B of Annexure-1 deals with 
allowances, concessions & benefits and Conditions of Service of 
Defence Forces Personnel. It is apparent that the Government 
E 
itself by placing MACP in Part-A of Annexure-1 was considering 
it to be the part of the pay structure. Grant of ACP is part of the 
pay structure. It affects the pay of the employee and he gets a 
higher grade pay even though it may be In the same pay band. 
[Paras 8, 10] [426-H; 428-B] 
F 
2.1 After the Resolution was passed by the Central 
Government on 30.08.2008 MACP Scheme was Initially notified 
vide Special Army Instructions on 11.10.2008 dealing with 
revision of pay structure. The Scheme was culled the Modified 
Assured Career Progression Scheme for Personnel Below Officer 
G Rank In the Indian Army. Thereafter, another letter was issued 
by the Adjutant General Branch on 03.08.2009 as per which the 
new ACP was made applicable w.e.f. 1 Jan 2006. Finally, on 
30.05.2011 another letter was issued by the Ministry of Defence 
as per which the MACP Scheme was made operational from 
H 
UNION OF INDIA & ORS. v. BALBIR SINGH TURN & ANR. 
423 
1.i Sep. 2008. Therefore, even as per the understanding of the A 
Army and other authorities up till the issuance of the letter dated 
30.05.2011 the benefit of MACP was available from 01.01.2006. 
[Para 9] [427-B-C, G-H] 
2.2 
Resolution 
dated 
30.08.2008 
whereby 
the B 
recommendation of the Pay Commission was accepted with 
modifications and recommendations with regard to pay structure, 
pay scales, grade pay etc. was made applicable from 01.01.2006. 
This was a decision of the Cabinet. This decision could not have 
been modified by issuing executi
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