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Judgment
ORDER
PER: RAJINDER SINGH DOGRA, MEMBER (J):
By way of the present O.A., the applicant seeks quashing of the impugned letter dated 30.01.2025 and the Speaking Order dated 10.03.2025, whereby the respondents rejected his claim. He further seeks a direction to the respondents to grant him the 2nd MACP in Grade Pay of Rs. 4800/- on completion of 20 years of service on 12.04.2009 and the 3rd MACP in Grade Pay of Rs. 5400/- (Level-9) on completion of 30 years of service on 12.04.2019, with all consequential benefits, including arrears with interest @ 12% per annum, after counting his training period from 12.04.1989 to 09.05.1990, in terms of Para 5 of the Annexure to the Railway Board's MACP Scheme dated 10.06.2009.
Dr. G.J. Sharma, learned counsel for the applicant, submits as under:
The applicant was appointed as Permanent Way Mistry (later re-designated as Supervisor, P. Way) vide appointment O.A. No. 154/2025 letter dated 14.03.1989 in the 4th CPC pay scale of Rs. 1400-2300 and joined on 12.04.1989. Upon joining as Permanent Way Mistry on 12.04.1989, he was sent for one year’s in-service training. During the training period, he was paid in the scale of Rs. 1400-2300 and was also granted annual increment. He completed the training and joined the working post on 10.05.1990.
The applicant was thereafter empanelled for promotion to the post of JE/Grade-II, P. Way vide order dated 04.03.1998 in the 5th CPC pay scale of Rs. 5000-8000 and joined the said post on 06.03.1998. His junior, namely, Razekol Haque, was also promoted along with him. Thereafter, the applicant was promoted to the post of JE/Grade-I, P. Way in the 5th CPC pay scale of Rs. 5500-9000 with effect from 01.11.2003.
The Railway Board issued the MACP Scheme vide RBE No. 101/2009 dated 10.06.2009 with effect from 01.09.2008, providing for three financial upgradations on completion of 10, 20 and 30 years of continuous regular service. Para 5 of the Annexure thereto provides that promotions earned/financial upgradations granted in the past to grades which, as a result of merger of pay scales/upgradation of posts, now carry the same Grade Pay shall be ignored for the purpose of grant of financial upgradations under the MACP Scheme. The applicant was accordingly granted financial upgradation under the MACP Scheme in the Grade Pay of Rs. 4600/- with effect from 01.09.2008 vide Memorandum dated 06.05.2010.
The applicant was subsequently promoted as Senior Section Engineer (SSE), P. Way, in the pay band of Rs. 9300-34800 with Grade Pay of Rs. 4600/-. Since he was already drawing the said Grade Pay pursuant to the financial upgradation granted with effect from 01.09.2008, no further financial benefit accrued to him on such promotion. He was thereafter granted the 3rd MACP in the Grade Pay of Rs. 4800/- (Level-8) with effect from 01.09.2018 vide order dated 26.08.2021. He retired from service on attaining the age of superannuation in February 2025.
Learned counsel for the applicant submits that the post of Permanent Way Mistry/Supervisor, P. Way was upgraded/merged with the post of JE/Grade-II, P. Way in the scale of Rs. 5000-8000 in terms of Para 13(b) of Railway Board’s RBE No. 177/2003 dated 09.10.2003. It is, therefore, contended that the applicant’s movement from the post of Permanent Way Mistry/Supervisor, P. Way to JE/Grade-II ought to be ignored for the purpose of grant of financial upgradation under the MACP Scheme. He further submits that the pre-revised pay scales of Rs. 5000-8000 applicable to JE/Grade-II and Rs. 5500-9000 applicable to JE/Grade-I were subsequently merged and placed in PB-2, Rs. 9300-34800 with Grade Pay of Rs. 4200 under the Railway Services (Revised Pay) Rules, 2008. Consequently, JE/Grade-II and JE/Grade-I came to carry the same Grade Pay of Rs. 4200/-.
Learned counsel for the applicant submits that, on the strength of Para 5 of the Annexure to the MACP Scheme dated 10.06.2009, the applicant is entitled to the 2nd MACP in the Grade Pay of Rs. 4800/- on completion of 20 years of service on 12.04.2009 and the 3rd MACP in the Grade Pay of Rs. 5400/- (Level-9) on completion of 30 years of service on 12.04.2019. He further relies upon the benefits stated to have been extended to similarly situated employees, namely, Gautam Malakar and Razekol Haque, as well as to his junior, Saji Sebastian.
Learned counsel for the applicant further submits that the period of one year’s training from 12.04.1989 to 09.05.1990 is also liable to be counted for the purpose of determining the applicant’s entitlement to financial upgradation. In support of this contention, he relies upon the order dated 14.11.2017 passed by the Cuttack Bench of this Tribunal in O.A. No. 260/00763/2014, which was upheld by the Hon’ble High Court of Orissa on 03.01.2019 and thereafter by the Hon’ble Supreme Court on 22.10.2019. He also submits that the benefit of counting such training period has been extended to similarly situated employees.
Learned counsel for the applicant also places reliance upon the following judicial precedents:
Order dated 01.09.2016 of the CAT, Principal Bench in O.A no. 1386/2013 upheld by Hon'ble High Court of Delhi vide Judgment and Order dated 21.11.2016 in W.P.(C) No. 10995/2016 and Hon'ble Supreme Court in Civil Appeal No (s) 3129-3130/2019 dated 18.01.2024.
Order dated 10.02.2023 of the CAT, Cuttack Bench in O.A No. 260/263 of 2021.
Order dated 01.01.2018 of the CAT, Jabalpur Bench in O.A. No. 203/428/2015.
Order dated 11.12.2025 of the CAT, Kolkata Bench in O.A. No. 350/564/2024.
Order dated 20.02.2026 of the CAT, Principal Bench in O.A. no. 4179/2023.
In view of the above, learned counsel for the applicant submits that the O.A. deserves to be allowed and the impugned letter dated 30.01.2025 and the Speaking Order dated 10.03.2025 deserve to be quashed and set aside, with a direction to the respondents to grant the reliefs prayed for in the O.A.
On the other hand, Sri A. Kundu, learned Addl. CGSC appearing for the respondents, submits that the applicant was appointed as ‘Apprentice PWM’ on 12.04.1989 and joined the working post on completion of his training on 10.05.1990. He earned his first promotion as Junior Engineer/P. Way/II in the scale of Rs. 5000-8000 with effect from 06.03.1998 and was thereafter promoted as Junior Engineer-I/P. Way in the scale of Rs. 5500-9000 with effect from 01.11.2003. According to the respondents, the applicant was granted the 2ndMACP in PB-2, Rs. 9300-34800 with Grade Pay of Rs. 4600/-with effect from 01.09.2008, as he had already availed one promotion. It is further submitted that the MACP Scheme came into effect from 01.09.2008, as held by the Hon’ble Supreme Court in Union of India & Ors. v. Virender Singh, AIR 2022 SC 3942 and Union of India & Ors. v. R.K. Sharma & Ors., (2021) 5 SCC 579. The applicant was subsequently promoted as SSE in the same Grade Pay of Rs. 4600/- and, since he was already drawing the said Grade Pay pursuant to the 2ndMACP, no further pay fixation was allowed on such promotion. He was thereafter granted the 3rd MACP in Level-8 with effect from 01.09.2018, on completion of ten years from the date of the previous MACP, in terms of RBE No. 101/2009.
Learned counsel for the respondents further submits that statutory rules/executive instructions ordinarily operate prospectively unless retrospective operation is expressly provided. As regards the training period from 12.04.1989 to 09.05.1990, it is submitted that, under the extant Railway instructions, the applicant was granted the admissible proforma pay-fixation benefit, but the said period could not be treated as regular service for MACP. It is also submitted that the Speaking Order dated 10.03.2025 was passed in compliance with the order dated 12.12.2024 of this Tribunal in the applicant's earlier O.A. No. 139/2024.
We have heard learned counsel for the parties and have carefully gone through the pleadings, the material available on record and the judgments/orders relied upon by the parties.
The main contention of learned counsel for the applicant is that, by operation of Para 5 of the Annexure to the Railway Board's MACP Scheme dated 10.06.2009, the promotions/upgradations which stood neutralised on account of merger of the relevant pay scales/posts are required to be ignored for MACP purposes. On that basis, the applicant claims the 2ndMACP in Grade Pay of Rs. 4800/- on completion of 20 years of service on 12.04.2009 and the 3rd MACP in Grade Pay of Rs. 5400/- (Level-9) on completion of 30 years of service on 12.04.2019. He has also pleaded that similarly situated employees, including Gautam Malakar and Razekol Haque, as well as his junior Saji Sebastian, were extended corresponding benefits, whereas the same have been denied to him.
Para 5 of the MACP Scheme (RBE No. 101/2009 dated 10.06.2009), which is relevant for the present controversy, reads as under:
“5.Promotions earned/upgradations granted under the ACP Scheme in the past to those grades which now carry the same Grade Pay due to merger of pay scales/upgradations of posts recommended by the Sixth Pay Commission shall be ignored for the purpose of granting upgradations under Modified ACPS.
Illustration
The pre-revised hierarchy (in ascending order) in a particular organization was as follows: Rs.5000-8000, Rs.5500-9000 & Rs.6500-10500.
(a)A Railway servant who was recruited in the hierarchy in the pre-revised pay scale Rs.5000-8000 and who did not get a promotion even after 25 years of service prior to 1.1.2006, in his case as on 1.1.2006, he would have got two financial upgradations under ACP to the next grades in the hierarchy of his organization, i.e., to the pre-revised scales of Rs.5500-9000 and Rs.6500-10500.
(b)Another Railway servant recruited in the same hierarchy in the pre-revised scale of Rs.5000-8000 has also completed about 25 years of service, but he got two promotions to the next higher grades of Rs.5500-9000 & Rs.6500-10500 during this period. In the case of both (a) and (b) above, the promotions/financial upgradations granted under ACP to the pre-revised scales of Rs.5500-9000 and Rs.6500-10500 prior to 1.1.2006 will be ignored on account of merger of the pre-revised scales of Rs.5000-8000, Rs.5500-9000 and Rs.6500-10500 recommended by the Sixth CPC. As per the RS(RP) Rules, both of them will be granted Grade Pay of Rs.4200 in the Pay Band PB-2. After the implementation of MACPS, two financial upgradations will be granted both in the case of (a) and (b) above to the next higher Grade Pays of Rs.4600 and Rs.4800 in the Pay Band PB-2.”
A similar issue was considered by the Co-ordinate Bench at Jabalpur in O.A. No. 203/00428/2015, decided on 01.01.2018. The operative portion of the said order reads as under:
“12.We feel that the case of the applicant is covered by the above two judicial pronouncements, wherein the first promotion from PWM to JE took place on 20.04.1999 before 6th CPC was implemented. Hence, para 5 of MACPS will be applicable in the case of the applicant.
13.Accordingly, we have no hesitation in quashing the impugned order dated 23.03.2015 (Annexure A/1).
14.The Original Application is allowed. The impugned order dated 23.03.2015 (Annexure A/1) is quashed and set aside. The respondents are directed to consider grant of MACP benefit to the applicant as per para 5 of the MACPS within six weeks from the date of receipt of a certified copy of this order. No costs.”
The Co-ordinate Bench at Kolkata, vide order dated 11.12.2025 in O.A. No. 350/00564/2024, also considered the effect of merger/restructuring for the purpose of MACP and observed as follows:
“12.It is noted that the applicants in the case of Javed Ahmed supra were granted promotion in the year 1998 to the scale of Rs.5000-8000 (5th CPC). Similarly the applicant in the instant O.A. was also granted promotion from the post of Mistry (P. Way) having the scale of 4500-7000/- to the post of J.E.-II on 30.01.2002 in scale of Rs.5000-8000(5th CPC). Thereafter, the two scales i.e. Rs.4500-7000 and 5000-8000 were merged as per Circular dated 09.10.2003 issued by the Ministry of Railways as restructuring benefits to certain Group 'C' and 'D' cadres with effect from 01.09.2003. Therefore, it is crystal clear that in both the cases the applicants were granted promotion to the scale of Rs.5000-8000 (5th CPC) prior to restructuring in year 2003 and could not reap the actual benefits of promotions granted prior to 2003 due to merger of the two scales w.e.f. 01.09.2003 as mentioned above. In the case of Javed Ahmed supra, the respondents were directed to restore the first and second MACPs by ignoring all promotions from Mistries to JE (erstwhile 1400-2300) for the purpose of MACPs. Therefore, in the instant O.A., the applicant wasrightly granted the benefits of 1 , 2 and 3 MACPS vide earlier orders without taking into consideration his promotion to the post of JE-II in 2002 in scale of Rs.5000-8000 (5th CPC).
13.In view of the foregoing discussions, we find that the case of the applicant in the instant O.A. is squarely covered by the judgment passed by the Principal Bench of this Tribunal in Javed Ahmed supra. We find no irregularity or illegality committed by the authorities with regard to grant of 1 , 2 and 3 MACPS vide orders dated 27.04.2010 (w.c.f.01.09.2008), 02.12.2011 (w.e.f. 24.06.2011) and 31.01.2022 (w.e.f. 01.07.2021). Therefore, we are of the view that all the financial benefits granted to the applicant vide the said orders were correct and need no interference/revision. Accordingly the impugned orders dated 17.10.2023 (Annexure A/12 & A/13) and dated 19.03.2024 (Annexure A/18) are quashed. The respondents are directed to restore the earlier basic pay and increments in favour of the applicant from the dates he was actually entitled to and pay the consequential benefits. The respondents are further directed not to recover any amount from him/refund the recovered amount, if any. The entire exercise be completed by the respondents within 60 days from the date of receipt of a copy of this Order.
14.With the aforesaid observations and directions, the O.A stands disposed of with no order as to costs.”
Further, the Principal Bench of this Tribunal, vide order dated 20.02.2026 in O.A. No. 4179/2023, dealt with a comparable claim arising from the merger/upgradation of the post of PWM with that of Junior Engineer and observed as follows:
“7.2In the instant case, the respondents have admitted in their counter affidavit (Brief facts of the case) that the present applicant got appointed on the post of PWM on 15.11.1988 in the pay scale of Rs.4500-7000 with GP Rs.2800. The applicant got promotion as PWI-III (JE) on 05.12.1997 which is equivalent to pay scale of Rs.5000-8000 with GP of Rs.4200. Subsequently, the posts of PWM was upgraded to that of JE with the same grade pay. In other words, for all practical purposes, the posts of PWM got merged with that of Junior Engineer. Hence, the promotion of the present applicant to the rank of JE should be ignored as per Clause 5 of Annexure-I to OM dated 19.05.2009. Starting from the date of his entry into PWM w.e.f. 09.12.1989, the applicant is entitled for 1 financial upgradation on completing more than 10 years service on 01.09.2008, 2nd financial upgradation after completing 20 years service on 08.12.2009 and 3rd MACP w.e.f. completing 30 years service on 09.12.2019.
7.3Perusal of order dated 04.07.2023 shows that respondents have retained the 2nd financial upgradation at grade pay Rs.4800 on pay scale of Rs.9300-34800 w.e.f. 09.12.2009. The respondents have retained the 1st financial upgradation w.e.f. 01.09.2008 in GP of Rs.4600. But they have taken the 1st financial upgradation in the merged cadre of PW to JE as a promotion and treated the financial upgradation on 01.09.2008 as 1st financial upgradation/promotion and 2nd financial upgradation/promotion as on 09.12.2009 as 3 financial upgradation. This is not permissible as per Clause 5 of Annexure-I of MACP Scheme as introduced vide DOP&T OM dated 19.05.2009.
8.Conclusion 8.1 In view of the above, the present OA is allowed.
(i)The re-fixation of pay/recovery by the respondents vide order dated 04.07.2023 is quashed, and his pre-revised pay is restored.
(ii)The respondents shall revise the PPO according to (i) above.
(iii)The respondents shall recalculate the DCRG, leave encashment according to the restored pay scales and pay the differential amounts to the applicant along with simple interest as per the prevailing GPF rates.
(iv)This exercise shall be completed within a period of eight weeks from the date of receipt of certified copy of this order.
9.No order as to costs.
10.Pending MAs, if any, are disposed of accordingly.”
From the aforesaid decisions, it emerges that where an earlier promotion/upgradation has subsequently been neutralised on account of merger/restructuring of the relevant posts or pay scales and the merged posts carry the same Grade Pay, such promotion/upgradation is required to be ignored for the purpose of grant of financial upgradation under Para 5 of the MACP Scheme. In the present case, the applicant’s promotion from the post of Permanent Way Mistry/Supervisor, P. Way to JE Grade-II was granted prior to the restructuring/merger. The issue, therefore, has to be examined in the light of Para 5 of the MACP Scheme and the judicial precedents referred to hereinabove. The applicant has also raised a separate claim for counting the training period from 12.04.1989 to 09.05.1990 for the purpose of determining his eligibility for MACP benefits. In support of this claim, he has relied upon the order dated 14.11.2017 passed by the Cuttack Bench in O.A. No. 260/00763/2014 and the subsequent orders passed by the Hon’ble High Court of Orissa and the Hon’ble Supreme Court. This aspect also requires examination in the light of the applicable Railway Board instructions and the service particulars of the applicant.
In view of the foregoing discussion, the O.A. is allowed to the extent that the impugned letter dated 30.01.2025 (Annexure-A/1) and the Speaking Order dated 10.03.2025 (Annexure-A/2) are quashed and set aside. The respondents are directed to reconsider the applicant’s claim for grant of the 2ndand 3rdMACP in the light of Para 5 of the MACP Scheme (RBE No. 101/2009 dated 10.06.2009) and the judicial precedents referred to hereinabove, particularly with regard to ignoring the earlier promotion/upgradation which stood neutralised on account of merger/restructuring of the relevant posts/pay scales. The respondents shall also examine the applicant’s claim for counting the training period from 12.04.1989 to 09.05.1990 in accordance with the applicable Railway Board instructions and the judicial precedents relied upon by the applicant. The respondents shall pass a reasoned and speaking order on the aforesaid issues within a period of six weeks from the date of receipt of a certified copy of this order. No order as to costs.