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2017 (12) TMI 1616 - SC - Indian LawsModified Assured Career Progression (MACP) - whether the benefit of MACP is applicable from 01.01.2006 or from 01.09.2008? Held that - A bare perusal of Clause(i) of the Resolution clearly indicates that the Central Government decided to implement the revised pay structure of pay bands and grade pay as well as pension with effect from 01.01.2006. The second part of the Clause lays down that all allowances except the Dearness Allowance/relief will be effective from 01.09.2008. The AFT held and in our opinion rightly so that the 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. The benefit of MACP if given to the respondents would affect their pension also. We are only concerned with the interpretation of the Resolution of the Government which clearly states that the recommendations of 6th CPC as modified and accepted by the Central Government in so far as they relate to pay structure pay scales grade pay etc. will apply from 01.01.2006. There may be some gainers and some losers but the intention of the Government was clear that this Scheme which is part of the pay structure would apply from 01.01.2006. There are no merits in the appeal - appeal dismissed.
Issues:
Interpretation of the Modified Assured Career Progression Scheme applicability date. Analysis: The judgment involves the interpretation of the Modified Assured Career Progression (MACP) Scheme's applicability date. The case pertains to personnel below officer rank who retired after 01.01.2006 but before 31.08.2008, claiming denial of MACP benefits before 01.09.2008. The central question is whether MACP should be applicable from 01.01.2006 or 01.09.2008. The Resolution passed by the Central Government on 30.08.2008 is crucial in determining the applicability date of MACP. The Resolution specified the implementation of revised pay structures from 01.01.2006 and allowances from 01.09.2008. The court agreed that MACP is part of the pay structure, affecting grade pay and pension, not merely an allowance. Moreover, Annexure-I of the Resolution placed MACP under Part-A, indicating its integration into the pay structure. The court examined various official communications, including Special Army Instructions and Ministry of Defence letters, supporting MACP's applicability from 01.01.2006. These documents confirmed that MACP benefits were available from 01.01.2006 until at least 30.05.2011, aligning with the Resolution's provisions. The government's argument about potential financial implications and employee disparities due to MACP's retroactive application was dismissed. The court emphasized that the Resolution's clear intent was for MACP to be effective from 01.01.2006, as stated in the Cabinet decision. Any subsequent administrative instructions contradicting this resolution were deemed invalid. Regarding legal precedents cited by the government's counsel, the court found them inapplicable as they did not address the specific issue of whether MACP is part of the pay structure or an allowance. Consequently, the court found no merit in the appeals and disposed of them, along with all pending applications. In conclusion, the judgment clarifies that the MACP Scheme should be applicable from 01.01.2006 for personnel below officer rank, in line with the Resolution's provisions and official communications, rejecting any contrary administrative instructions.
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