UNION OF INDIA & ORS. versus N.M. RAUT & ORS.

Citation: [2024] 12 S.C.R. 1517 · Decided: 12-12-2024 · Supreme Court of India · Bench: SANJIV KHANNA, SANJAY KUMAR · Disposal: Disposed off

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Judgment (excerpt)

[2024] 12 S.C.R. 1517 : 2024 INSC 1042
Union of India & Ors. 
v. 
N.M. Raut & Ors.
(Civil Appeal No. 14380 of 2024)
12 December 2024
[Sanjiv Khanna, CJI and Sanjay Kumar, JJ.]
Issue for Consideration
Issue arose as regards interpretation and implementation of the 
Modified Assured Career Progression Scheme, 2008, and the 
financial upgradations granted under the MACPS.
Headnotes†
Service Law – Central Civil Services (Revised Pay) Rules, 
2008 – Modified Assured Career Progression Scheme, 2008 – 
Financial upgradation – Non-functional financial upgradation – 
Counting of, to determine eligibility for financial upgradation 
under the MACPS – On implementation of the Revised Rules, 
some of the respondents working as Pharmacists in the 
Ordnance Factory, and Superintendents in the Central Board 
of Excise, became entitled to non-functional upgradation, on 
completion of two or four years of service respectively – One 
of them given three financial upgradations in terms of Grade 
Pay in less than 30 years of service but was again granted a 
further upgradation on 16.09.2012, upon completing 30 years 
in service – Correctness:
Held: Is clearly erroneous – Incumbent eligible Government 
employee should not take the benefit of both the timebound 
promotion scheme or in-situ promotion scheme as well as the benefit 
of financial upgradation under the MACPS – Respondents entitled 
to the benefits of the MACPS only after taking into consideration 
all the financial upgradations earned by them in terms of the CCS 
RP Rules – Financial upgradations under the Rules have to be 
accounted for and will be treated as financial upgradations earned 
for reckoning the 10-year intervals and the three assured financial 
upgradations, in terms of Grade Pay, under the MACPS – Non-
functional higher Grade Pay has been awarded to employees on 
completion of a certain length of service in the lower pay-scale/
Grade Pay – Financial upgradation granted, after two or four years 
1518
[2024] 12 S.C.R.
Supreme Court Reports
of service, to Pharmacists or Superintendents, would indicate that 
they availed financial upgradation, which cannot be ignored for 
deciding the entitlement to the next financial benefit under the 
MACPS – To ignore the same would be contrary to the intent and 
purpose of the scheme, the language employed – In their cases, 
because of service conditions, the Government thought it proper to 
grant them such financial upgradation after they completed two or 
four years of service in the lower pay-scale/Grade Pay – Not the 
intention of the Government to ignore the said upgradation under 
the CCS RP Rules – Doing so, would be granting them additional 
benefits beyond what was envisaged and stated in the MACPS – 
Revised Pay Rules, including a grant of financial benefits, and the 
MACPS are not two watertight or separate compartments, each 
conferring independent benefits without reference to the other – 
Grant of financial upgradations as well as promotions are to be 
duly accounted for and taken into consideration in the MACPS – 
Anomalies arising because of the ACPS and MACPS operated 
during different periods cannot be a ground and reason to re-write 
or ignore the language and the intent and purpose behind the 
scheme – MACPS implemented and executed by granting benefits 
to the respondents and, later on, recoveries initiated – Recovery 
not to be effected from the retirees or those who retiring within one 
year from the date of the judgment – Recoveries may be made 
after issuing notice to the employee concerned – No interest to 
be charged on the amount to be recovered – Pension and the pay 
scale to be re-determined on the basis of the said judgment and 
to apply prospectively wef 01.01.2025 – Impugned judgments set 
aside. [Paras 11, 13-25]
Service Law – Modified Assured Career Progression Scheme, 
2008-MACPS – Interpretation and implementation – Financial 
upgradation under – Criteria of eligibility – Explanation:
Held: Objective purpose of the MACPS is that an employee should 
not remain stagnant in the same pay scale/Grade Pay for periods 
of 10, 20 or 30 years – Employee would be entitled to financial 
upgradation to the immediate next higher Grade Pay, as mentioned 
in Section 1, Part-A of the first Schedule to the CCS RP Rules – 
Benefit under the MACPS is available where the eligible employee 
has not got regular promotion, in such cases, he/she will be given 
financial upgradation – However, such financial upgradat

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