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19. Ms. Madhvi Divan, learned ASG appearing on behalf of Union of India has taken us through the salient features of both ACP and MACP schemes and submitted that ACP and MACP schemes shall be subject to the conditions mentioned thereon. Learned ASG has submitted that Sixth Central Pay Commission took the view that ACP led to disparities within the employees in different organisations/departments and recommended adoption of the modified scheme which was accepted by the Government and Sixth Central Pay Commission and MACP scheme are being implemented. It was submitted that under the ACP scheme, the employee is entitled to financial upgradations (two times – on completion of 12 and 24 years of regular service) as per promotional hierarchy. Whereas under the MACP scheme, the financial upgradations (three times – on completion of 10, 20 and 30 years of regular service) are fixed on the basis of immediate next grade pay and therefore, ACP and MACP schemes are significantly different in terms of the effect and benefit to the employees. Learned ASG submitted that the previous ACP scheme was withdrawn and it is superseded by the MACP scheme w.e.f. 01.09.2008 and the respondents while enjoying the benefits of revised pay structure under the Sixth Central Pay Commission, cannot cherry-pick the benefit of financial upgradation in the next promotional hierarchy under the erstwhile ACP scheme. Learned ASG has further submitted that it is the prerogative of the Government to provide any financial benefit to its employees and so long as such scheme is not discriminatory or arbitrary, the Court may not interfere with schemes of Government fixing pay scales and granting incentives.

26. As pointed out earlier, both ACP and MACP Schemes are in the nature of incentive schemes devised with the object of ensuring that the employees who are unable to avail of adequate promotional opportunities, get some relief from stagnation in the form of financial benefits. Under the MACP Scheme, financial upgradations are granted at three regular intervals on completion of 10-20-30 years of service without promotion. Hence, it is also intended to ensure that the employees are adequately incentivised to work efficiently despite not getting promotion for want of promotional avenue. The change in policy brought about by supersession of the ACP Scheme with the MACP Scheme is after well-deliberated and well-documented recommendations of the Sixth Central Pay Commission. Considering the various issues in the implementation of the ACP Scheme, the Pay Commission expressed its views “the only other way is to bring systematic changes in the existing Scheme of ACP so that all the employees irrespective of the existing hierarchy structure in their organisations/cadres, get some benefit under it”. The Commission therefore, recommended that the existing Scheme of ACP be continued with the modifications indicated thereon in the Report that the financial upgradation has to be in the next immediate Grade Pay. One of the reasons for the expert body recommending the MACP Scheme was that there were inter- departmental disparities where several departments had varying promotional hierarchies. As a result, the working of ACP Scheme under which an employee who stagnated for 12 years, was entitled to pay in the Pay Scale of the next promotional post, led to inter-departmental anomalies. The Pay Commission therefore, recommended MACP Scheme with a view to putting an end to the problem ensuing from inter-departmental disparities.

27. The learned amicus and the learned counsel appearing for the respondents urged the court to adopt a “purposive interpretation” that the words “immediate next higher Grade Pay” to be interpreted as “Grade Pay of the next promotional post” in the hierarchy. MACP Scheme envisages merely placement in the immediate next higher Grade Pay. By perusal of the MACP Scheme extracted earlier, it is seen that the words used in the Scheme are “placement in the immediate next higher Grade Pay in the hierarchy of the recommended revised pay bands”. The term “Grade Pay in the next promotional post” is conspicuously absent in the entire body of the MACP Scheme. The argument of the respondents that the benefit of MACP Scheme is referable to the promotional post, is de hors the MACP Scheme and cannot be accepted. Though ACP and MACP Schemes are intended to provide relief against stagnation, both the Schemes have different features. Pay scales under the Sixth Pay Commission and the MACP Scheme are stated to be more beneficial since it extends to the employees with time intervals with higher pay bands and various facilities which were not available under the ACP Scheme including the three financial upgradations in shorter time span. In any event, MACP Scheme has not been challenged by the respondents. As rightly contended by the learned ASG, the respondents cannot be permitted to cherry-pick beneficial features from the erstwhile ACP Scheme and also take advantage of the beneficial features in the MACP Scheme.

48. 3rd Meeting of the Joint Committee dated 15.03.2011:- In the 3rd Meeting of the Joint Committee held on 15.03.2011, the staff side reiterated their demand that the MACP Scheme should be granted in the promotional hierarchy of posts rather than in the grade pay hierarchy. The official side had suggested that the Government was willing to consider a revision in the MACP Scheme to the effect that organisations/cadres shall have the option to choose either the ACP Scheme or the MACP Scheme. But the staff side stated that such a dispensation would not be practical and there was a need to explore other alternatives to solve the issue. Therefore, it was agreed between the staff side and the official side that there was no need to change the basic structure of MACP Scheme, but there was a need to separately examine those cases where MACP Scheme was less advantageous than the ACP Scheme (Vide the Minutes of the 3 rd Meeting of Joint Committee dated 15.03.2011). Pursuant to the decision of the 3rd Meeting of Joint Committee, it was decided that the official side would write to the Ministry of Railways, Defence, Urban Development, Home Affairs and the Department of Posts to forward information in respect of the specific categories of employees where the MACP was less advantageous than the erstwhile ACP Scheme. Accordingly, these Ministries/Departments were requested to send specific cases wherein, it was less advantageous for employees under MACP Scheme as compared to ACP Scheme. It is stated that no Ministry/Department other than Ministry of Urban Development had responded. (Vide Copy of Minutes dated 15.03.2011)