Summary
Two retired Enforcement Directorate employees claimed ₹6,600 grade pay on their third MACP upgradation. Applying the scheme’s treatment of ₹5,400 in PB-2 and PB-3 as separate grades, the Court held that the next promotional post’s pay did not govern financial upgradation. The Tribunal’s order was restored and pension refixation directed. Recovery protection was granted on the stated terms, with revised pension payable from January 2022.
Issues
- Whether MACP upgradation followed the immediate next grade under the scheme or the pay of the next promotional post.
- What pension refixation and recovery directions should follow for the retired respondents.
Provisions considered
- Clause 8.1, Modified Assured Career Progression Scheme, 2009Grade pay of ₹5,400 in PB-2 and ₹5,400 in PB-3 constituted separate grades for MACP upgradation; respondents were entitled to ₹5,400 in PB-3. (¶¶ 2, 7-9)
Held
- MACP envisaged placement in the immediate next grade in the prescribed pay-band hierarchy, rather than the pay of the next promotional post. Following M.V. Mohanan Nair, the respondents’ entitlement was ₹5,400 in PB-3, not the Deputy Director grade pay of ₹6,600. (¶ 7)
- The High Court’s contrary direction effectively altered the scheme. The Court expressly proceeded on the basis that neither the scheme nor Clause 8.1 had been challenged; an employee asserting an anomaly could challenge the provision for consideration on its own merits. No such validity challenge was decided here. (¶ 8)
- The High Court judgment was set aside and the Tribunal’s order restored. Pension was to be refixed using ₹5,400 grade pay. On the peculiar facts of these retired employees, the Court prohibited recovery of the pension difference for the period prior to December 2021 and directed payment at the refixed rate from January 2022 onwards. The appeal was allowed with those directions and without costs. (¶ 9)
Result
Appeal allowed; Tribunal order restored and pension refixation directed at ₹5,400 grade pay, payable from January 2022. No recovery for the period prior to December 2021 as specified in paragraph 9. No costs.