Union of India Vs R Kumar — Writ and Judicial Review | Madras HC (2026)

Union of India Vs R Kumar — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

Writ petition allowed: the Tribunal's order dated 27.09.2024 in O.A.No.1168 of 2017 is set aside and modified so that the respondent's third MACP upgradation (Level-8, Grade Pay Rs.4,800/-) takes effect only from 18.03.2011 and not from 01.09.2008; no order as to costs; connected miscellaneous petition (W.M.P.No.46602 of 2025) closed.

Issue for consideration

Whether the respondent's third financial upgradation under the MACP Scheme in Grade Pay of Rs.4,800/- took effect from 01.09.2008 (as allowed by the Tribunal) or only from 18.03.2011 upon completion of 30 years of qualifying service, given that entitlement under the Scheme depends on completion of the prescribed periods of regular service.

Court's answer

Entitlement to financial upgradation under the MACP Scheme is governed strictly by completion of the prescribed period of regular service, namely 10, 20 and 30 years, in the absence of regular promotions.

Ratio / Principle

Though the MACP Scheme came into force with effect from 01.09.2008, it does not dispense with the foundational requirement of completion of qualifying service for each stage of upgradation.

Key takeaways

Having been absorbed as Assistant Station Master on 18.03.1981, the respondent could accrue the third financial upgradation under the MACP Scheme only after completion of 30 years of qualifying service, which falls on 18.03.2011.ratio¶45
As on 01.09.2008 the respondent had not completed the requisite 30 years of service and had therefore not acquired any enforceable right to claim the third upgradation in Grade Pay of Rs.4,800/-.ratio¶46

Detailed headnote1 paragraphs

Madras High Court (order made by P.Velmurugan J., sitting with K.Govindarajan Thilakavadi J.), by judgment dated 30.04.2026 in W.P.No.41581 of 2025, allowed the writ petition filed by the Union of India (Railway Board), the General Manager, Southern Railway, and the Sr.Divisional Personnel Officer, Madurai Division, under Article 226 seeking certiorari against the Central Administrative Tribunal, Chennai's order dated 27.09.2024 in O.A.No.1168 of 2017. The Tribunal had granted the retired Station Master (R.Kumar, absorbed as Assistant Station Master on 18.03.1981, medically unfit 17.11.2008, voluntarily retired 31.10.2013) his third financial upgradation under the Modified Assured Career Progression (MACP) Scheme in Grade Pay Rs.4,800/- retrospectively from 01.09.2008. Holding that MACP entitlement is governed strictly by completion of the prescribed 10/20/30-year periods of regular service and that the Scheme's commencement on 01.09.2008 does not dispense with the qualifying-service requirement, the High Court found the third upgradation accrued only on 18.03.2011 (30 years from absorption), that the respondent had no enforceable right as on 01.09.2008, and that the Tribunal's retrospective direction was contrary to the Scheme. The Tribunal's order was set aside and modified so that MACP Level-8 (Grade Pay Rs.4,800/-) takes effect only from 18.03.2011; the connected miscellaneous petition was closed and no costs were imposed.

Procedural history

How this case reached the court

AI extract

Order under challenge
Order dated 27.09.2024 passed by the Central Administrative Tribunal, Chennai, in O.A.No.1168 of 2017, allowing the respondent's claim for grant of third financial upgradation under the MACP Scheme in Grade Pay Rs.4,800/- with effect from 01.09.2008 with consequential benefits.¶24
Central Administrative Tribunal, Chennai · 27.09.2024
Prior proceeding
Respondent initially appointed as Assistant Station Master in the Madurai Division of Southern Railway and absorbed in the said post on 18.03.1981.¶26
Prior proceeding
Promoted as Station Master Grade-III in the scale of Rs.425-640 (IV Central Pay Commission) w.e.f. 23.12.1983.¶26
Prior proceeding
Promoted as Station Master Grade-II in the scale of Rs.1600-2660 (IV Central Pay Commission) w.e.f. 25.11.1996, later revised as Rs.5500-9000 under the V Central Pay Commission.¶26
Prior proceeding
Upon implementation of the VI Central Pay Commission, the pay scales of Rs.5000-8000 and Rs.5500-9000 were merged and upgraded to Rs.6500-10500.¶26
Prior proceeding
Respondent's pay accordingly fixed in the scale of Rs.6500-10500 in the year 2005.¶30
Prior proceeding
Promoted as Station Master Grade-I in the Pay Band of Rs.9300-34800 with Grade Pay of Rs.4600.¶31
Prior proceeding
While serving as Station Master Grade-I, declared medically unfit on 17.11.2008 and continued in a supernumerary post until opting for voluntary retirement on 31.10.2013.¶31
Prior proceeding
Respondent approached the Tribunal and filed O.A.No.1168 of 2017 seeking grant of the third financial upgradation under the MACP Scheme in Grade Pay Rs.4,800/- with effect from 01.09.2008.¶31
Prior proceeding
The Tribunal allowed the application (order dated 27.09.2024), which the writ court records as having been done without properly appreciating the service particulars and the applicable rules governing the MACP Scheme.¶31
Prior proceeding
As submitted by petitioners' counsel (not independently adjudicated at that stage): the third-upgradation benefit had in fact been granted to the respondent vide Office Order No.21/2018/TP-1 dated 14.03.2018, entitlement being said to arise on completion of 30 years of service on 18.03.2011.¶33