Miss Lucy
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Union Of India vs Ex. Hc/Gd Virender Singh

Supreme Court22 August 2022Bela M. Trivedi

Ratio decidendi

The rule this decision rests on

Where the Central Government issues a resolution of policy, that resolution does not confer a legal right on government employees unless it has been notified and enforced by appropriate instrument; notification and enforcement are the legal foundation for a right to arise, and a resolution lacking such formality remains a statement of administrative intention. The Modified Assured Career Progression Scheme, operationalised by Office Memorandum dated 19th May 2009, applies with effect from 1st September 2008, not from 1st January 2006, notwithstanding that the Central Civil Services (Revised Pay) Rules, 2008 were deemed to have come into force on 1st January 2006, because the MACP Scheme is an incentive scheme for relieving stagnation and not a matter of pay structure, and where an Office Memorandum clearly states that financial upgradations as per the earlier ACP Scheme would be granted till 30th August 2008 and that past cases would not be reopened, that memorandum establishes the operative date of the MACP Scheme. Under the MACP Scheme, an employee is entitled to financial upgradation to the immediate next higher grade pay in the hierarchy of the pay bands and grade pay as stated in Section 1, Part A of the First Schedule of the Central Civil Services (Revised Pay) Rules, 2008, and not to the grade pay of the next promotional post in the hierarchy, because the scheme was designed by the Sixth Central Pay Commission to eliminate inter-departmental disparities arising from varying promotional hierarchies and to provide identical benefit to all employees irrespective of organisational structure, and purposive interpretation cannot override the express language of the scheme nor can the principle of equal pay for equal work be applied to equate financial upgradation with promotion. Personnel belonging to the Central Armed Police Forces who are unable to fulfil pre-promotional course requirements due to administrative reasons shall be granted financial upgradation under the MACP Scheme upon completion of the prescribed years of regular service by relaxation of the pre-promotional norms, on grounds that a liberal and ameliorative approach is required to address genuine grievances of personnel whose national duties prevent them from participating in such courses.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 16442 OF 2021)

UNION OF INDIA AND OTHERS ..... APPELLANTS

VERSUS

EX. HC/GD VIRENDER SINGH ..... RESPONDENT

WITH

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _______ OF 2022 (DIARY NO. 14322 OF 2020)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 16065 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO.16179 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 4279 OF 2022)

CIVIL APPEAL NO. 1592 OF 2021

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. ______ OF 2022 (DIARY NO. 19618 OF 2020)

CIVIL APPEAL NO. 1600 OF 2021

CIVIL APPEAL NO. OF 2022 Signature Not Verified ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. ______ OF 2022 Digitally signed by Dr. Mukesh Nasa Date: 2022.08.22 (DIARY NO. 19905 OF 2020) 19:20:23 IST Reason:

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 11603 OF 2020)

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CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 4065 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. ______ OF 2022 (DIARY NO. 4918 OF 2021)

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CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 4928 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 4933 OF 2021)

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CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 4966 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 4975 OF 2021)

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CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 4493 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 5031 OF 2021)

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 4 of 28 CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 3830 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 5041 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 4015 OF 2021)

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CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 5916 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 5954 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 5168 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 4995 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 8333 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 6057 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 4972 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 6082 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 4934 OF 2021)

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 5 of 28 CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 4993 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 4598 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 4924 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 4989 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 8463 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 5039 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 4392 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 6848 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 5075 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 5086 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 4033 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 6031 OF 2021)

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Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 6 of 28 CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8726 OF 2021)

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CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 6440 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8727 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8722 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 5750 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 7392 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8723 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 6858 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8724 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 7553 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 7960 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 7136 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8683 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8700 OF 2021)

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 7 of 28 CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8725 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8936 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8728 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 11738 OF 2020)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 10921 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 7523 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 4216 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 5269 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 3766 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 10923 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8126 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 10922 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8729 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8874 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 11910 OF 2021)

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CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 15753 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 12031 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 15751 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 15705 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 15714 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 15700 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 15713 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 11532 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 15759 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 11568 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 11019 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 11682 OF 2021)

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CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 15712 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 12030 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 11048 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 15532 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 15756 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 15694 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 11542 OF 2021)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 15697 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 12495 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 15093 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 13493 OF 2021)

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 10 of 28 CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 16411 OF 2021)

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CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 18800 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 20257 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 307 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 42 OF 2022)

CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 26989 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 19129 OF 2021)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 370 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 491 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 381 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 959 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 377-378 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 932 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 19290 OF 2021)

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CIVIL APPEAL NO. OF 2022 ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. _____ OF 2022 (DIARY NO. 19614 OF 2020)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 6053-6054 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 9796 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 9797 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 5580 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 9795 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 9704 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 7196 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 9056 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 9678 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 8598 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 12240 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 12241 OF 2022)

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 12 of 28 WRIT PETITION (CIVIL) NO. 561 OF 2022

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 13440 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 13441 OF 2022)

CIVIL APPEAL NO. OF 2022 (ARISING OUT OF SPECIAL LEAVE PETITION (CIVIL) NO. 9118 OF 2022)

JUDGMENT

SANJIV KHANNA, J.

Delay is condoned and leave is granted.

2. These appeals by way of special leave raise three issues, all of

which are connected and relate to the Modified Assured Career

Progression Scheme1, namely:

(a) Whether the MACP Scheme is applicable and to be

implemented with effect from 1st January 2006, the date from

which the Central Civil Service (Revised Pay) Rules, 2008

were enforced, or in terms of O.M. dated 19th May 2009 with

effect from 1st September 2009?

(b) Whether under the MACP Scheme the respondents are

entitled to financial upgradation equivalent to the pay

1 For short, the ‘MACP Scheme’.

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 13 of 28 scale/grade pay of the next promotional post in the hierarchy,

or the immediate next grade pay in the hierarchy of the pay

bands as stated in Section 1, Part A of the First Schedule to

the Central Civil Services (Revised Pay) Rules, 2008?

(c) Whether the respondents, who belong to the Central Armed

Police Forces, are entitled to grant of financial upgradation

under the MACP Scheme, if for administrative reasons they

were unable to fulfil the pre-proportional norms?

3. The second question is covered by a three Judge Bench decision

of this Court in Union of India and Others v. M.V. Mohanan Nair2,

which judgment explicates the similarities and the difference

between the Assured Career Progression Scheme3, the erstwhile

scheme which was replaced by the MACP Scheme. In a nutshell, it

can be stated that the MACP Scheme, like the ACP Scheme, is an

incentive scheme devised with the object of ensuring that the

employees who have stagnated for lack of adequate promotional

avenues are given benefit in the form of financial upgradation. The

financial upgradation is personal, does not amount to regular or

actual functional promotion, and does not require creation of a new

post. It has no relevance to the seniority position and principles of

2 (2020) 5 SCC 421 3 For short, the ‘ACP Scheme’

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 14 of 28 reservation are not applicable. Financial upgradation is granted to

only those employees who have not received actual or functional

promotion even after completion of the requisite service period,

though otherwise, they fulfil the prescribed conditions for

promotion4. Having said so, the ACP Scheme and the MACP

Scheme differ significantly. Under the ACP Scheme, a government

servant is entitled to financial upgradation on completion of 12 and

24 years of her/his regular service, to the pay scale of the next

promotional post in the hierarchy. Under the MACP Scheme, an

employee is entitled to three financial upgradations on completion

of 10, 20 and 30 years of regular service to the next higher grade

pay in the hierarchy of the pay bands and grade pay as given in

Section 1, Part A of the First Schedule of the Central Civil Services

(Revised Pay) Rules, 2008.

4. The difference between the two Schemes, and in the form of

financial upgradation, has been lucidly explained by this Court in

M.V. Mohanan Nair (supra) by observing that the MACP Scheme

has been implemented after due deliberation and on consideration

of the recommendations made by the Sixth Central Pay

Commission to bring systematic changes in the erstwhile ACP

4 For upgradation under the MACP Scheme, the benchmark of ‘good’ and ‘very good’ is applicable till the grade pay of Rs.6600/- in pay band 3 and for grade pay of Rs.7600/- and above, respectively.

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 15 of 28 Scheme so that all employees, irrespective of the existing

hierarchical structure in their organisations/cadres, get identical

financial benefit of the next immediate grade pay instead of the

pay/grade pay applicable to the next promotional post. The MACP

Scheme puts an end and rectifies the problem arising from inter-

departmental disparities in re the pay scales of the next promotional

post. The objective of the change is analysed and decoded in M.V.

Mohanan Nair (supra), in the following words:

“29...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 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 for 12 years, was entitled to pay in the pay scale of the next promotional post, led to inter- departmental anomalies. The Pay Commission

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 16 of 28 therefore, recommended MACP Scheme with a view to putting an end to the problem ensuing from inter- departmental disparities.

30....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 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 dehors 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 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. 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.

31. 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 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.”

5. The judgment in M.V. Mohanan Nair (supra) defers to the Sixth

Central Pay Commission recommendations as an expert body that

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 17 of 28 had threadbare examined all the issues, disparities and even

representations by employees before making their proposal, which

thereafter upon careful consideration was accepted by the

government with modifications. The courts would not normally

interfere with well deliberated decisions by experts in the field,

unless adoption is bad on account of statutory violation, the policy

contravenes the overriding constitutional mandate of right to

equality, is discriminatory, manifestly arbitrary or negates other

fundamental rights. The Executive, by the Constitution, has been

conferred the right to choice as it has a duty to discharge, and is

responsible and accountable for their action. The court examines

the validity challenge, albeit, while performing the constitutional

duty and exercising the power of judicial review, does not substitute

its views on the choice of policy on merits. In fiscal matters,

including pay fixation and terms of service, several factors like

prevailing financial position, capacity to bear the additional liability

are relevant and, therefore, the courts do tread carefully as

interference may have serious impact on the public exchequer and

have grave financial implications.

6. In M.V. Mohanan Nair (supra), the argument to adopt “purposive

interpretation” or to apply the principle of ‘equal pay for equal work’

for grant of financial upgradation to the pay in the next promotional

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 18 of 28 post as under the ACP Scheme, viz. financial upgradation to the

next grade pay in the hierarchical pay scale, was rejected as

financial upgradation cannot be equated with promotion. On merits,

it has been held that the financial upgradation envisaged as per the

MACP Scheme is not a case of hostile discrimination. The MACP

Scheme is not irrational, unjust and prejudicial to a section of the

employees, but a well-considered decision which has taken all

material and relevant factors into consideration. Prescription of pay

scales and incentives are a matter of decision taken by the

government which, when based upon the recommendation of an

expert body like the Central Pay Commission, should carry weight

and the courts should be reluctant to substitute the policy with their

own views on what would be more equitable and just. It is to be

noted that the MACP Scheme postulates grant of three financial

upgradations after a period of 10, 20 and 30 years, whereas the

ACP Scheme had postulated grant of only two financial

upgradations after a period of 12 and 24 years of regular service.

Thus, the claim for grant of financial upgradation in the grade pay

of the promotional hierarchy was rejected. Further, with effect from

1st September 2008, the ACP Scheme stands superseded by the

MACP Scheme as a matter of government policy and hence, the

employees, on and from the date of implementation of the MACP

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 19 of 28 Scheme, cannot claim any benefit of the ACP Scheme. To hold so,

this Court referred to the Joint Committee meetings held on 15th

September 2010, 15th March 2011 and 27th July 2012, which were

followed by a letter dated 4th November 2013. Minutes of these

meetings reveal that some alternatives, including giving of

individual option to choose between the ACP Scheme and MACP

Scheme, were considered but not favoured as impracticable.

7. The first question has been answered by this Court in Union of

India v. R.K. Sharma and Others5 in the following words:

“8. Ms Madhavi Divan, learned Additional Solicitor General of India appearing for the appellants submitted that this Court in Balbir Singh Turn held that payment under the ACPS is a part of the pay structure whereas in a later judgment in Union of India v. M.V. Mohanan Nair this Court was of the opinion that both ACP and MACP Schemes are in the nature of incentive schemes. These appeals deserve to be dismissed in terms of the judgment of this Court in M.V. Mohanan Nair. The contention of the appellant is that a policy decision was taken to implement the recommendation of the 5th Pay Commission in respect of revised scales of pay and dearness allowance for civilian employees with effect from 1-1-2006 and that revised allowance other than dearness allowance with effect from 1-9-2008. The learned Additional Solicitor General argued that the respondent is entitled to the incentive under the ACP Scheme which was in vogue till 31-8-2008. The respondent cannot seek applicability of MACPS with effect from 1-1-2006. According to the MACPS the financial upgradation is in the higher grade pay in the same pay band whereas financial upgradation as per the ACP Scheme was to the next grade pay of

5 (2021) 5 SCC 579

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 20 of 28 promotional post. The learned Additional Solicitor General stated that revision of financial upgradation granted to civilian officers by implementing MACPS from 1-1-2006 would be detrimental to the respondent and other similarly situated persons as huge amounts of money would have to be recovered from them.

9. For a better understanding of the dispute in these cases, it is necessary to examine the judgments of this Court in Balbir Singh Turn and M.V. Mohanan Nair. The point that was considered by this Court in Balbir Singh Turn relates to the applicability of the benefit of MACPS from 1-1-2006. The respondents therein approached the Armed Forces Tribunal which held that the benefit of ACP granted to an employee is part of the pay structure which affects the pay and also his pension.

The Armed Forces Tribunal held that an ACP is not an allowance but a part of pay and therefore, in terms of the government resolution, the employees were entitled for MACP with effect from 1-1-2006. This Court in Balbir Singh Turn upheld the said finding recorded by the Armed Forces Tribunal. Instructions issued on 30-5- 2011 were found to be contrary to the Resolution dated 30-8-2008 as, according to the resolution 1-1-2006 was the effective date for implementation of MACPS in matters relating to pay and dearness allowance.

10. In M.V. Mohanan Nair a three-Judge Bench of this Court considered the ACPS as well as the MACPS to hold that the schemes are in the nature of incentive schemes which were brought into force to relieve stagnation. This Court was of the considered view that the respondents therein were entitled only to the benefit of next grade pay in the pay band and not to the benefit of grade pay of next promotional post. As the MACPS is a matter of government policy pursuant to the recommendations made by the Pay Commission, this Court refused to accept submissions of the employees that MACPS should be made applicable with effect from 1-1-2006.

11. In view of the judgment of this Court in M.V. Mohanan Nair, the respondents and other similarly situated employees are entitled for financial

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 21 of 28 upgradation under MACPS only to the next grade pay and not to the grade pay of next promotional post. It is clear from the Resolution dated 30-8-2008 that the recommendation of the 6th Pay Commission was accepted by the Government and was made effective from 1-1-2006 in respect of civilian employees with regard to revised scales of pay and dearness allowances. Insofar as the revised allowances other than dearness allowance, recommendations of the 6th Pay Commission were given effect from 1-9-2008. The judgment in M.V. Mohanan Nair clinches the issue. Benefits flowing from ACP and MACP Schemes are incentives and are not part of pay. The Resolution dated 29-8-2008 is made effective from 1-9-2008 for implementation of allowances other than pay and DA which includes financial upgradation under ACP and MACP Schemes. Therefore, the respondents and other similarly situated officers are not entitled to seek implementation of the benefits of MACPS with effect from 1-1-2006 according to the Resolution dated 29-8- 2008. Moreover, the implementation of MACPS by granting financial upgradation only to the next grade pay in the pay band and not granting pay of the next promotional post with effect from 1-1-2006 would be detrimental to a large number of employees, particularly those who have retired. We find force in the submission made by the learned Additional Solicitor General that uniform implementation of MACPS for civilian employees with effect from 1-1-2006 would result in large-scale recoveries of amounts paid in excess.”

8. The aforesaid paragraphs refer to the decision by a three Judge

Bench of this Court in M.V. Mohanan Nair (supra), which we have

quoted and referred to above. It also refers to a two Judge Bench

decision in the case of Union of India and Others v. Balbir Singh

Turn and Another,6 which holds that notwithstanding O.M. dated

6 (2018) 11 SCC 99

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 22 of 28 19th May 2009 stating that the MACP Scheme would be applicable

with effect from 1st September 2008, the MACP Scheme would be

applicable with effect from 1st January 2006. The judgment in Balbir

Singh Turn (supra) reasons that the Central Government, on 30th

August 2008, had resolved to accept the recommendations of the

Sixth Central Pay Commission with regard to the personnel below

the officer rank, subject to certain modifications. Reliance was

placed upon clause (i) of the Resolution of the Central Government

dated 30th August 2008, which reads as under:

“(i) Implementation of the revised pay structure of pay bands and grade pay, as well as pension, with effect from 1-1-2006 and revised rates of allowances (except dearness allowance/relief) with effect from 1-9-2008;”

It also refers to clause (ix) of the Resolution which reads as follows:

“(ix) Grant of 3 ACP upgradations after 8, 16 and 24 years of service to PBORs;”

Thereafter, the judgment in Balbir Singh Turn (supra) says

that the Sixth Central Pay Commission had recommended grant of

benefit of the ACP Scheme after 10 and 20 years of service, but the

Central Government had decided to grant ACP Scheme after 8, 16

and 24 years of service. Lastly, it holds that perusal of clause (i) of

the Resolution dated 30th August 2008 indicates that the Central

Government had decided to implement the revised pay scales of

pay bands and grade pay, as well as pension, with effect from 1st

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 23 of 28 January 2006. The second part of the said clause lays down that all

allowances, except dearness allowance/relief, will be effective from

1st September 2008. The MACP Scheme, being a part of the pay

structure and having effect on the grade pay of the employees,

cannot be said to be part of allowances. Benefit of MACP Scheme,

if given to employees, would affect their pension and thereby also

means that it has to be applied and given effect from 1st January

2006 as it is a part of the pay structure.

9. As rightly held in R.K. Sharma (supra), the aforesaid reasoning

given in the case of Balbir Singh Turn (supra), in our opinion, has

not been accepted by the three Judge Bench decision in the case

of M.V. Mohanan Nair (supra), which in clear terms holds grant of

financial upgradation under the MACP Scheme is not a matter of

pay structure, but an incentive scheme brought into force to relieve

stagnation which operates on its own terms. We may add that the

pay scales are fixed and revised by the rules which are enacted in

exercise of powers conferred by the proviso to Article 309 and

clause (5) of Article 148 of the Constitution of India. Therefore, vide

Notification dated 29th August 2008, the Central Civil Services

(Revised Pay) Rules, 2008 were enacted vide G.S.R. No. 622(E).

Rule 1(2) states that the Rules, as enacted, shall be deemed to

have come into force on 1st January 2006. The aforesaid Rules

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 24 of 28 neither postulate nor have any provision for grant of financial

upgradation under the MACP Scheme. It is to be further noted, and

it is an accepted position of both parties, that the MACP Scheme,

as implemented, postulates grant of financial upgradation after 10,

20 and 30 years of regular service and not after 8, 16 or 24 years

of regular service, as was originally envisaged in terms of

Government Resolution dated 30th August 2008, or for that matter,

10 or 20 years of service, as was recommended by the Sixth

Central Pay Commission. In our opinion, the Resolution of the

Central Government dated 30th August 2008 cannot be read as

conferring any right on the government employees. The resolution

was not notified and enforced to confer a legal right.7 The Office

Memorandum dated 19.05.2009 promulgates and operationalises

the MACP Scheme with effect from 01.09.2008. The Office

Memorandum states that financial upgradations as per the

provisions of the earlier ACP Scheme would be granted till

30.08.2008. Further, past cases would not be re-opened and the

difference in pay scales on account of grant of financial upgradation

under the old ACP Scheme and the MACP Scheme shall not be

construed as an anomaly.

7See – Bachhittar Singh v. State of Punjab & Another, AIR 1963 SC 395, State of Assam Etc. v. Kripanath Sarma and Others Etc., AIR 1967 SC 459, and other cases on the aspect of when an order/resolution would confer a legal right. It is to be noted that the doctrine of legitimate expectation has not been invoked and has no application in the facts of this case. Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 25 of 28

10. Learned counsel for the government employees, inspite of being

correct that M.V. Mohanan Nair (supra) does not refer to Balbir

Singh Turn (supra) and does not overrule it specifically, misses the

point that the entire ratio and reasoning given in M.V. Mohanan

Nair (supra), as rightly observed in R.K. Sharma (supra), cannot

be reconciled with the ratio in Balbir Singh Turn (supra). M.V.

Mohanan Nair (supra) has examined the MACP Scheme in depth

and detail to settle the controversy, inter alia holding that

supersession of the ACP Scheme by the MACP Scheme is a matter

of government policy, and that “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 1.9.2008.”8 The ACP Scheme and MACP Schemes

were held to be in the nature of incentive schemes to relieve

stagnation and not as a part of pay structure, which had revised the

pay and the dearness allowance with effect from 1.1.2006. In these

circumstances, we do not think a case for reference to a larger

Bench of three Judges to reconsider the ratio in the decision of R.K.

Sharma (supra) is made out. Therefore, we reject the contention of

the learned counsel for the respondents/government employees for

reference of the matter.

8 See paragraph no. 32 in M.V. Mohanan Nair (supra) as reported in (2020) 5 SCC 421. Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 26 of 28

11. On the third aspect, we should record the concession rightly made

by the Additional Solicitor General during the course of the hearing

that the personnel working in the Central Armed Forces would be

granted financial benefit under the MACP Scheme on completion

of prescribed years of regular service by relaxation in cases where,

on account of administrative or other reasons, they could not be

sent for participation in pre-promotional course. The appellant-

Union of India has agreed to accept the directions given by the Delhi

High Court in the case of Ram Avtar Sharma v. Director General

of Border Security Force9 in this regard. A liberal, pragmatic and

ameliorative approach is required to succour genuine grievances of

the personnel doing duty for the nation, owing to which they forgo

participation in pre-promotional courses. Accordingly, the third

question is answered against the appellant-Union of India.

12. In view of the aforesaid discussion, the appeals filed by the Union

of India are partly allowed and impugned judgments, to the extent

they hold that the MACP Scheme applies with effect from 1.1.2006

and that under the MACP Scheme the employees are entitled to

financial upgradation equivalent to the next promotional post, are

set aside. MACP Scheme is applicable with effect from 1.9.2008

9 W.P. (c) No. 5278 of 2013 decided on 12th August 2014

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 27 of 28 and as per the MACP Scheme, the entitlement is to financial

upgradation equivalent to the immediate next grade pay in the

hierarchy of the pay bands as stated in Section 1, Part A of the First

Schedule to the Central Civil Services (Revised Pay) Rules, 2008.

The third issue, which relates to the fulfilment of pre-promotional

norms for grant of financial upgradation, is decided against the

appellant-Union of India to the extent that this would not be insisted

in the case of the Central Armed Forces personnel where, for

administrative or other reasons, they could not be sent or undergo

the pre-promotional course.

All pending applications are disposed of.

......................................J. (SANJIV KHANNA)

......................................J. (BELA M. TRIVEDI) NEW DELHI;

AUGUST 22, 2022.

Civil Appeal @ SLP (C) No. 16442 of 2021 & Ors. Page 28 of 28

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