The Sixth Central Pay Commission
had recommended the implementation of the ‘Modified Assured Career Progression’
Scheme (MACP) providing for the grant of three financial upgradations of pay at
the gap of 8, 16 and 24 years of service in case of stagnation.
Unlike other pay related
modalities which were implemented with effect from 01 January 2006, the MACP
was implemented with effect from 01 September 2008, thereby not including in
its scope the personnel who were released from service between the two dates.
The Armed Forces Tribunal
(AFT) had however ruled that the pay commission had granted all pay and pension
related benefits from January 2006 and the prospective implementation was only effectuated
for ‘allowances’ and hence the MACP was also to be implemented from January
2006 since it pertained to upgradation of pay. While ordering so, the AFT had
followed the decision of the Punjab & Haryana High Court which had earlier
ruled upon the implementation of improved pay-scales of defence personnel from
1996 rather than 1997 in an anomaly emanating out of the Fifth Pay Commission.
The decision of the AFT was
challenged by the Government in the Supreme Court but the Apex Court has
dismissed the appeal filed by the Union of India thereby upholding the grant of
MACP from 01 January 2006 rather than 01 September 2009. This will affect the
pay and pensionary benefits of those personnel who retired during the said
period.
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