Ex Hav Kailash Chandra vs UOI & Others on 11 August 2026

O R D E R

11.08.2026

1. Under Section 14 of Armed Forces Tribunal Act, 2007 the Applicant has filed this OA praying therein for directing the Respondents to grant MACP-III benefit to the Applicant wef 01.09.2009 after condonation of shortfall of one day and consequential pension and pensionary benefits and that the arrears be paid along with interest @ 12% per annum.

2. The brief facts of the case as enunciated by the Applicant are that the Applicant was enrolled in the Army on 22.12.1984 and after rendering 24 years and 9 days of qualifying service, he was discharged from Service wef 31.12.2008. The Applicant submits that he Overstayed the Leave (OSL) for 11 days for which he was punished and once an individual is punished for this

offence, this period stands regularized and cannot be considered as Non Qualifying Service (NQS) for grant of pensionary benefits. The Applicant has placed reliance on Hon’ble Supreme Court judgment dt 08.12.2017 in Civil Appeal No 3744/2016 in the case of UOI & Ors Vs Balbir Singh Turn. The Applicant has also placed reliance on AFT (RB), Chennai judgment dt 23.11.2017 in OA No 108/2016 in the case of Ex Hav M Sankarraj Vs UOI & Ors and the subsequent judgments passed by other Regional Benches relying on the judgment of M Sankarraj (Supra) and submitted that he has completed 24 years of service before discharge from Service and, hence, he is eligible for grant of MACP-III benefit along with consequential pension and pensionary benefits. The Applicant made representation and also issued Legal Notice for grant of MACP-III benefit on completion of 24 years of service, but to no avail. Therefore, the aggrieved Applicant has filed present OA.

3. The Respondents have filed detailed Reply Statement and while not disputing the basic facts presented by the Applicant, they have submitted that Govt of India, Ministry of Defence vide letter No 14(1)/99-D(AG) dt 30.05.2011 and IHQ of MoD (Army) letter No B/33513/ACP/AG/PS-2(c) dt 13.06.2011, under Modified Assured Career Progression Scheme (MACPS), three financial upgradations at intervals of 8, 16 and 24 years of continuous regular service or eight years continuous service in the same grade pay are applicable to an individual. The MACP Scheme was operational wef 01.09.2008. As per Para 8 and 17 of MoD letter dt 13.06.2011, 3rd MACP is applicable to those individuals who had completed 24 years of regular service or has spent 8 years, continuous service in the same Grade Pay. In the present case, the Applicant has rendered 24 years and 10 days of service, including 11 days of Non-Qualifying Service period on account of Overstaying Leave (OSL). In accordance with Para 122 (a)

(iii) of Pension Regulations for the Army, 1961 (Part-1), the ibid 11 days OSL period is treated as Non Qualifying Service (NQS) for counting of his pensionary benefits. Accordingly, the Applicant’s total qualifying service for grant of Pension

has to be counted to 23 years, 11 months and 29 days in terms of Para 122 (a)

(iii) of Pension Regulations for the Army, 1961 (Part-1). Further, the Applicant was promoted to the rank of Havildar on 01.10.2004 and has not rendered continuous eight years of service in the rank of Havildar before his being discharged from Service on 31.12.2008. In view of the aforesaid facts, the Respondents have submitted that since the Applicant has neither completed 24 years of qualifying service nor has rendered continuous eight years of service in the rank of Havildar, he is not entitled for grant of MACP-III benefit.

4. During the course of hearing, proxy Counsel for the Applicant placed reliance on this Tribunal Order dt 16.08.2022 in OA No 187/2020 in the case of Ex Hav Ramesh Chand Sharma Vs UOI & Ors, wherein the Applicant was granted MACP benefits after condonation of deficiency of 7 days on account of AWL/OSL.

5. We have heard Counsels for both the parties and perused the material placed before us.

6. On the issue of counting of Absent without Leave (AWL) / Over Staying Leave (OSL) period as regular service for grant of financial upgradation under MACPS, Additional Directorate General of Personnel Services (ADGPS), AG’s Branch, IHQ of MoD (Army) vide their letter No B/33513/MACP/AG/PS-2(c) dt 03.06.2016 have clarified the issue, the relevant portion of which reads as under:- “2. A case was taken up with the Govt of India, Min of Defence (Army), regarding clarification as to whether Non-Qualifying-Service (NQS) on being Absent Without Leave (AWL)/ Over Staying Leave (OSL) should be deducted from total service by JCOs/OR while granting MACP upgradation or otherwise.

3. The matter was considered by the MoD and it has been clarified that such cases can be accepted for counting AWL/OSL as regular service for grant of financial upgradation under MACP Scheme, provided the period in question is duly authorized/regularized by the competent authority by grant of leave due and admissible to the individual under the existent provision of Leave Rules.”

7. On the issue of condonation of shortfall of service for grant of MACP benefits, the Larger Bench of Hon’ble AFT (PB), New Delhi vide its Order dt 23.12.2025 in OA No 2679/2021 in the case of Ex Hav/Clk GD Asa Ram Jat Vs UOI & Ors has held as under:- “60. At the cost of necessary repetition, it is essential to state that none of the orders relied upon on behalf of the applicant nor any of the orders mentioned in paragraphs 8 and 9 of the Referral Order dated 27.09.2023 in OA No 2679 of 2021 make any reference to the order dated 03.11.2017 in OA 238/2017 of the AFT Principal Bench New Delhi in L/Nk Satyavir Singh (Supra) as all the orders mentioned in para No 8, as also those relied by the applicant are all after the date 03.11.2017 when the order in L/Nk Satyavir Singh (Supra) was pronounced by the AFT (PB) New Delhi and thus in terms of the order of the Larger Bench of this Tribunal in OA 57/2020 in Hav Rajkumar (Retd) Vs UOI & Ors dated 1.05.2024 in terms of Para 23 thereof whereby the reference therein was answered, we observe that all subsequent Benches of the Armed Forces Tribunal which were all of equal strength as of the Bench which pronounced the order dated 03.11.2017 in OA No 238/2017 of the AFT (Principal Bench) New Delhi in L/Nk Satyavir Singh (Supra) which has adjudicated in relation to the same issue qua the aspect of condonation of shortfall for the grant of the benefit of the MACPS to PBORs of the Indian Army were bound to follow the decision in L/Nk Satyavir Singh (Supra) which was of a previous Bench of coordinate strength in relation to the ratio decidendi and principle laid down in the said adjudication to the extent of the adjudication in L/Nk Satyavir Singh (Supra) that there can be no condonation of shortfall for the grant of the MACPS to the PBORs of the Indian Army in view of Regulation 18 of the Pension Regulations for the Army, Part I (2008) which relates to Pension Regulations and Gratuity. In terms of the Pension Regulations for the Army, Part-I (2008) the said Regulation 18 of the Pension Regulations for the Army Part I (2008) does not relate to the aspect of financial upgradations at intervals of 8, 16 and 24 years which MACPS is only to deal with the problem of genuine stagnation and lack of adequate promotional avenues. The reference is answered accordingly.”

8. As regards NQS leading to shortfall in qualifying service for MACPS benefit, IHQ of MoD (Army) vide their letter No B/22513/MACP/AG/PS-2(c) dt 20.06.2023 had initially clarified that “all periods of absence due to OSL/AWL stand regularized once an individual is punished under the provisions of the Army Act, hence, period of OSL/AWL dealt with disciplinary and regularized by conviction resulting in imprisonment, forfeiture of pay/allowances etc will be treated as continuous till discharge, release or retirement for the purpose of MACP”. However, this letter was cancelled vide their letter No B/33513/MACP/AG/PS-2(c) dt 30.06.2023.

9. In the present case, the Applicant has 11 days of Non Qualifying Service and has not rendered complete 24 years of qualifying service for grant of MACP- III benefit, therefore, he is clearly not eligible in the light of principles laid down by the Larger Bench of Hon’ble AFT (PB), New Delhi in the case of Ex Hav/Clk Asa Ram Jat (Supra) wherein it is clearly held that there can be no condonation of shortfall in service for grant of MACPS. Further, the Applicant has also not rendered eight years continuous service in the rank of Havildar before being discharged from Service, which would have made him eligible for grant of MACP- III benefit.

10. However, keeping in view the fact that the Respondents have not clarified on the issue of regularization of above NQS period and also the fact that there exists no provision for condonation of shortfall of service for grant of financial upgradations under the MACPS, we deem it appropriate to remit the case back to the Respondents to re-consider the case of the Applicant for regularization of the NQS period or otherwise in terms of extant rules/regulations and policies and grant MACP benefits, if found eligible, within a period of six months from the date of receipt of a certified copy of this Order. The outcome thereof shall be intimated to the Applicant.

11. The OA is disposed off accordingly. Pending Miscellaneous Application(s), if any, also stand disposed off.

12. No order on costs.

(SANJIV MITTAL)

(GOVERDHAN BARDHAR) MEMBER (A)

MEMBER (J)

Ssy/-