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Judgment
L. Narasimha Reddy, J
Common issues are involved in both the OAs. While OA No.510/2021 is filed by an Association with another employee, OA No.1412/2020 is filed by individual employees. Hence, they are disposed of by this order.
The applicants filed this OA challenging two circulars dated 10.06.2015 and 20.02.2020 which were in relation to the method of extension of the benefit of MACP.
In the establishment of ESIC, there are three categories of Pharmacists namely, Pharmacist, Pharmacist Grade-I and Pharmacist Grade-II with different scales of pay. Consequent upon the recommendations of the 6th Central Pay Commission, merger took place and the pay scales were also different. For some of the Pharmacists, the benefit of the Grade Pay of Rs.4200/- was extended on completion of two years of service. The establishment passed orders on 09.05.2011 providing for extension of the benefit of 1st MACP in the grade pay of Rs.4600/-. 2nd MACP on completion of ten more years of service in the grade pay of Rs.4800/- and 3rd MACP on completion of further ten years in the Grade Pay of Rs.5400/-. The upgradation on completion of two years of service was ignored in the context of MACP. In the impugned orders, it was mentioned that the upgradation to the Grade Pay of Rs.4200 would offset one MACP. This resulted in sliding of the pay scales indicated in the order dated 09.05.2011, downwards.
The applicants contend that in case of many employees, the Grade Pay of Rs.4200/- resulted on account of the restructuring of the pay scales and not by way of upgradation. They also pleaded that the benefits that were extended on completion of two years of service cannot be treated as holding good against one MACP.
We heard Shri Rajat Aneja, learned counsel for the applicants in OA No.510/2021, Shri Rajat Malhotra, learned counsel for the applicants in OA No. 1412/2020 and Shri Manish Kr. Saran, learned counsel for the respondents.
Though reference is made to several proceedings by the applicants, the ultimate dispute is as to whether the upgradation of the pay of the Pharmacist to the Grade Pay of Rs.4200/- on completion of two years of service would offset that MACP. The order dated 09.05.2011 was issued on the premise that it would not have any impact upon the 1 st MACP, 2nd MACP and 3rd MACP.
The MACP Scheme was introduced through OM dated 19.05.2009. This has replaced the ACP Scheme. Under the ACP Scheme, it is only when an employee did not get promotion in the 1st spell of 12 years or the 2nd spell of another 12 years, that the benefit in the form of upgradation to the next pay scale attached to the next higher post was granted. In contrast, the MACP provided for granting of 1st MACP on completion of 10 years, 2nd on completion of 20 years and 3rd on completion of 30 years of service, in case the employee did not earn promotion or "upgradation" during these spells. The upgradation, which did not matter under the ACP became relevant, under the MACP.
For instance, in the Customs and Central Excise department certain categories of employees were put on a next higher grade on completion of four years of service. Though extensive litigation ensued the matter was put at rest in the recent past by directing that the upgradation would offset the corresponding MACP. Almost identical situation obtains in this case. The applicant did not deny that the benefit of upgradation to the grade pay of Rs.4200/- was extended on completion of two years of service. That naturally would offset one MACP. In the recent past, the Hon'ble Supreme Court decided the issue finally in Union of India vs. M.V. Mohanan Nair, CA No. 2016/2020.
It is stated that in certain cases, the Pharmacists got the grade Grade Pay of Rs.4200/- otherwise than by upgradation on completion of two years. If that is so, the matter needs to be pleaded before the competent authority. The impugned order cannot be found fault with.
We, therefore, dismiss the OA declining to interfere with the impugned order. However, we leave it open to the Pharmacists with Grade Pay of Rs. 4200/- otherwise than by way of upgradation on completion of two years, to make a representation and the respondents shall be under obligation to examine the same under the relevant rules. Wherever recovery becomes necessary, the respondents shall follow the principles of law, applicable on the subject.
There shall be no order as to costs.