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The Union of India and six others have filed the present writ petition impugning the order dated 31st January, 2014 passed by the Principal Bench of the Central Administration Tribunal (Tribunal, for short) in OA No. 3441/2012, which was filed by All India CGHS Employees Association and three others, the respondents herein.

2. The Tribunal has allowed the said OA and held that the officers working as Pharmacists in the Central Government Health Service (CGHS, for short) would be entitled to three financial upgradations in the grade pay of Rs.4600, 4800 and 5400 without taking into consideration the non- functional upgradation to the grade pay of Rs.4200, which is granted after two years of service in the grade pay of Rs.2800.

3. In order to appreciate the controversy, we would like to note the relevant rule position before we refer to the provisions of the Modified Assured Career Progression Scheme (MACP Scheme, for short). The respondent is an association of Pharmacists in the CGHS. Before the implementation of the Sixth Pay Commission, the hierarchy of posts in the cadre of Pharmacists and their pay scales was as under:- 

                     "Pharmacist                    Rs.4500-7000

                                               

                     Pharmacist Grade-II            Rs.5000-8000

                                               

                     Pharmacist Grade-I             Rs.5500-9000

                                               

                     Assistant Depot Manager        Rs.6500-10500"
"It has now been decided in consultation with M/o Health & F.W. to implement the said orders in CGHS wef 1.1.2006. Accordingly the following grades of Pharmacist in CGHS will come into existence:-
Designation Pre-revised pay Pay structure Remarks scale implemented as per 6th CPC Pharmacist Rs.4500-7000 Grade Pay of Entry Grade (Entry Grade) 2800 in PB-1 Pharmacist-II Rs.5000-8000 Grade Pay of This grade to be (Non-Functional Rs.4200 in PB-2 granted to Grade) Pharmacist (Entry Grade) on non-functional basis after completion of 2 years of service in the grade pay of Rs.2800.

8. The Director-General of Health Services (CGHS) thereafter wrote letter dated 11th November, 2011 to all CGHS units revising the decision taken and incorporated in the communication dated 16 th July, 2010. The relevant portion of the letter dated 11th November, 2011 reads as under:-

"The Directorate in its letter of even No. dated 16.7.2010 had communicated the grant of 1 st, 2nd and 3rd MACP in the Grade Pay of Rs.4600, Rs.4800 and Rs.5400 respectively to the cadres of Pharmacists in CGHS while implementing the recommendations of Fast Track Committee as per D/o Expenditure‟s OM. No. F.No. 1/1/2008-IC, dated 18.11.2009 by ignoring the upgradation of Grade Pay of Rs.4200 on completion of 2 years of regular service to the entry level pharmacists in the Grade Pay of Rs.2800 for MACP purpose.