Central Administrative Tribunal - Ernakulam
R Suresh Chandran vs The General Manager Southern Railway Hq ... on 19 May, 2025
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CENTRAL ADMINISTRATIVE TRIBUNAL,
ERNAKULAM BENCH,
ERNAKULAM
Original Application No. 180/00456/2020
Monday, this the 19th day of May, 2025
CORAM:
Hon'ble Mr. Justice Sunil Thomas, Member (J)
Hon'ble Ms. V. Rama Mathew, Member (A)
R. Suresh Chandran, aged 62 years,
S/o. K.M. Ramakrishna Pillai, Retd. Chief Controller,
Southern Railway, Thiruvanathapuram residing at
Sreenandanam, DNRA 32, TC 54/592/3, Amsikonam Lane,
Thiruvananthapuram - 695 020. ..... Applicant
(By Advocate : Mr. Martin G. Thottan)
Versus
1. Union of India, represented by General Manager,
Southern Railway, Park Town PO, Chennai - 3.
2. The Senior Divisional Personnel Officer, Southern Railway,
Trivandrum Division, Trivandrum-14. ..... Respondents
(By Advocate : Mr. Prathap Abraham Varghese)
This Original Application having been heard on 08.04.2025, the
Tribunal on 19.05.2025 delivered the following:
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ORDER
Per: Justice Sunil Thomas, Judicial Member -
The applicant herein was directly recruited as Traffic Apprentice by the Railway Service Commission in 1984. He was absorbed in the Railways after three years of training with effect from 20.10.1987 in PB- 2 with Grade Pay of Rs. 4,200/- (Level-6). He was promoted as Deputy Chief Controller with effect from 8.9.2000 in PB-2 with Grade Pay of Rs. 4,600/- in level-7. He was further promoted as Chief Controller in a higher scale with effect from 8.9.2000 in PB-2 with Grade Pay of Rs. 4,600/- in level-7. Due to merger of both the posts, the second promotion is liable to be ignored for the purpose of financial benefits. On introduction of the MACP scheme with effect from 1.9.2008, the applicant was granted the 2nd MACP and placed him in PB-2 with Grade Pay of Rs. 5,400/- in level-9 by Annexure A1 with effect from 23.6.2010. However, without notice and without hearing him the 2nd respondent withdrew PB-2 plus GP Rs. 5,400/- at level-9 granted as per Annexure A1 order and directed consequential recovery of overpayment from the applicant's salary by Annexure A2 order dated 22.5.2012. Accordingly, the entire amount due was recovered from the salary of the applicant in SEBASTIAN ANTONY 2025.05.19 16:49:24+05'30' 3 30 installments. Later, the 2nd respondent restored PB-2 with Grade Pay of Rs. 5,400/- in level-9 in favour of the applicant with effect from 20.10.2017. He retired from service on 31.5.2018.
2. The applicant made a representation for restoration of his 3rd MACP in PB-2 with Grade Pay of Rs. 5,400/- in level-9 with effect from 23.6.2010, duly refunding the entire amount recovered from him. Since it was not responded he filed OA No. 227 of 2019 which was disposed of by Annexure A3 order directing the 2nd respondent to consider his representation and to take a decision.
3. In purported compliance of Annexure A3 order, the 2nd respondent passed Annexure A4 order upholding the granting of 3rd MACP in PB-2 with Grade Pay of Rs. 5,400/- in level-9 with effect from 20.10.2017. Virtually it rejected his representation. Aggrieved by the above order, the applicant has approached this Tribunal.
4. A reply statement was filed, wherein the crucial contention set up by the respondents is evident at paragraph 7. It was stated that the applicant was absorbed in PB-2 with Grade Pay of Rs. 4,200/- on 20.10.1987. He was granted one promotion in Grade Pay of Rs. 4,600/- on 23.6.1990 and SEBASTIAN ANTONY 2025.05.19 16:49:24+05'30' 4 the 2nd MACP in the Grade Pay of Rs. 4,800/- and 3rd MACP in Grade Pay of Rs. 5,400/- on 23.6.2010. As per the Railway Board's letter Annexure A5, the applicant was eligible for grant of 3rd MACP in the Grade Pay of Rs. 5,400/- on 20.10.2017 i.e. on completion of 30 years of service. However, it was granted erroneously from 23.6.2010 itself. Hence, the 3rd MACP in PB-2 of Rs. 5,400/- Grade Pay granted from 23.6.2010 was withdrawn by communication dated 22.5.2012. Overpayment has been recovered from the applicant's salary.
5. Evidently, the crucial question that arises is whether the applicant is entitled for the 3rd MACP on completion of 10 years' service from the date of 2nd MACP or on completion of 30 years of service from the date of his initial entry to claim the 3rd MACP.
6. The learned counsel for the applicant invited our attention to clauses 28(A)(i) and (ii) of Annexure A5, the MACP scheme as adopted by the Railway Board by OM dated 10.6.2009. Clause 28(A)(i) and (ii) are illustrations which reads as follows:
"(i) If a Railway servant (LDC) in PB-1 in the Grade Pay of Rs.
1900 gets his first regular promotion (UDC) in PB-1 in the Grade pay of Rs. 2400 on completion of 8 years of service and then continues in the same Grade pay for further 10 years without any promotion then he would be eligible for 2nd financial upgradation under the MACPS in SEBASTIAN ANTONY 2025.05.19 16:49:24+05'30' 5 PB-1 in the Grade Pay of Rs. 2800 after completion of 18 years (8+10 years).
(ii) In case he does not get any promotion thereafter, then he would get 3rd financial upgradation in PB-2 in Grade Pay of Rs. 4200 on completion of further 10 years of service i.e. after 28 years (8+10+10)."
Evidently, applicant herein got first promotion on 8.9.2000 within three years from the date of his initial appointment. By virtue of illustration 28(A)(i) of Annexure A5 if a person gets promotion in the first completion of 8 years and then continues in the same grade for further 10 years without any promotion he would be entitled for 2nd financial upgradation under the MACPS in PB-1 in the Grade Pay of Rs. 2,800/- after completion of 18 years (8+10 years). By virtue of 2nd clause of 28(A) in case he does not get any promotion thereafter, then he would get the financial upgradation in PB-2 in Grade Pay of Rs. 4,200/- on completion of further 10 years of service i.e. after 28 years (8+10+10).
7. Extending this example, the person mentioned in the illustration gets his 3rd MACP on completion of 28 years of service and not on completion of 30 years as claimed by the Railway. It is clear that the applicant need not complete 30 years of service to claim 3rd MACP in the case at hand, since he got the first promotion within 3 years from the date of his entry SEBASTIAN ANTONY 2025.05.19 16:49:24+05'30' 6 cadre. Consequently, the contention of the Railways that the applicant will get the 3rd MACP only on completion of 30 years from the date of entry in service, provided he does not get any promotion in the meanwhile, is absolutely baseless. He will get the 3rd MACP on completion of 10 years aft er 2nd MACP/promotion.
8. Exactly similar question came up for before this Tribunal in OA No. 1126 of 2012. In that case the 3rd MACP was declined to the applicants therein on the ground that they have not completed 30 years of service from the date of their initial induction in to the Railway service. Relying on clause 28(A)(i) of the same OM this Tribunal held that the applicants therein will get the 3rd MACP on completion 10 years from the date of receipt of the 2nd MACP and not on completion of 30 years from the date of entry. This order was confirmed by the Hon'ble High Court in OP (CAT) No. 3915 of 2013. This was challenged in SLP No. 14482 of 2021. In another OA No. 1171 of 2012, exactly similar situation arose which was also decided as in OA No. 1126 of 2012. That was subjected to challenge in OP (CAT) No. 158 of 2016, which was ultimately dismissed. It is seen that the SLP filed against the connected cases was heard along with SLP No. 19850 of 2019. All the SLPs were dismissed confirming SEBASTIAN ANTONY 2025.05.19 16:49:24+05'30' 7 the decisions of this Tribunal and similar cases. The orders I n the above cases were produced before us.
9. Having considered this, we are inclined to hold that Annexure A4 is legally unsustainable and is liable to be set aside. The position as in Annexure A1 will stand restored. Consequently, the applicant will be entitled to be placed in Grade Pay Rs. 5,400/- in level-9 with effect from 23.10.2019 as 3rd MACP with all consequential benefits. All the amounts recovered from the applicant shall be returned within a period of three months from today. Annexure A4 is set aside. Appropriate orders shall be passed within three months from today and the entire amount due to the applicant shall be paid failing which it will carry 6% interest, until repayment in full.
10. The Original Application stands allowed to the above extent. No order as to costs.
(V. RAMA MATHEW) (JUSTICE SUNIL THOMAS)
ADMINISTRATIVE MEMBER JUDICIAL MEMBER
"SA"
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Original Application No. 180/00456/2020
APPLICANT'S ANNEXURES
Annexure A1 - True copy of the office order No.
T.96/2010/Controllers (V/P.535/II/MACP/(I) dated 8.11.2010.
Annexure A2 - True copy of the letter No. V/P.535/II/MACP/I dated 22.5.2012.
Annexure A3 - True copy of the order dated 29.3.2019 in OA 180/00227/2019.
Annexure A4 - True copy of the letter No. V/P.535/II/MACP/I(Pt) dated 7.5.2019.
Annexure A5 - True copy of the Railway Board's letter RBE No. 101/2009 dated 10.6.2019.
RESPONDENTS' ANNEXURES Nil
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