VidhiSangh

Supreme Court of India · 12/12/2024

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

[2024] 12 S.C.R. 1517 · 2024 INSC 1042

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Summary

The Supreme Court held that non-functional upgradations to a higher Grade Pay granted under the CCS (Revised Pay) Rules, 2008 to Pharmacists and Superintendents after two or four years of service must be counted as financial upgradations when applying the Modified Assured Career Progression Scheme, so the employees could not also claim MACPS upgradations that ignored them. Recovery from retirees and those retiring within a year was barred, and no interest is to be charged on other recoveries.

Issues

  1. Whether non-functional upgradations to a higher Grade Pay granted under the CCS (Revised Pay) Rules, 2008 after two or four years of service are to be counted as financial upgradations for the purposes of the MACPS.
  2. Whether such upgradations amount to a mere revision or re-fixation of pay, or a merger of pay scales to be ignored under clause 5 of the MACPS.
  3. Whether, and on what terms, excess payments made under the MACPS could be recovered.

Provisions considered

Held

Result

Appeals of the Union of India allowed and the impugned High Court judgments set aside; connected appeals disposed of in the same terms; no recovery from retirees or those retiring within a year, refund of recoveries already made from retirees, interest-free recovery from others after notice, and re-determination of pay and pension from 01.01.2025.

Judgment PDF: Supreme Court of India, [2024] 12 S.C.R. 1517.