Ex Hav Govind Singh 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 27.06.2007 after condonation of shortfall of two days 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 27.06.1983 and after rendering 24 years and three day of qualifying service, he was discharged from Service on 30.06.2007. The Applicant submits that he Overstayed the Leave (OSL) for two 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 on 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 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 introduced Modified Assured Career Progression Scheme (MACPS) wherein 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 made 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 have spent 8 years, continuous service in the same Grade Pay. In the present case, the Applicant had rendered 24 years and four days of service, including six days of Non-Qualifying Service (NQS) on account of OSL for the period from 23.10.2001 to 28.10.2001 for which he was awarded Severe Reprimand. In accordance with Para 122 (a) (iii) of Pension Regulations for the Army, 1961 (Part-1), the ibid six days 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 is to be counted as 23 years, 11 months and 28 days as six days of OSL period is counted as NQS 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 (Dafadar) on 19.05.2003 and has not rendered continuous eight years of service in the rank of Havildar before his being discharged from Service on 30.06.2007. 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 benefits.

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. Further, the Applicant has placed reliance on the judgment in the case of Balbir Singh Turn (Supra) wherein the Hon’ble Apex Court had held that MACPS is to be made applicable wef 01.01.2006. Since the Applicant was discharged wef 30.06.2007, he has contended that he is governed by MACP Scheme. However, it is important to note that this judgment has since been overturned by different Benches of Hon’ble Apex Court as on the issue of the date of applicability of MACPS, relevant extracts of Hon’ble Supreme Court judgment dt 28.04.2021 in Civil Appeal No 1579/2021 (arising out of SCP (C) No 15572/2019) of UOI & Ors Vs RK Sharma and Ors, read as under:- "7. For a better understanding of the dispute in these cases, it is necessary to examine the judgments of this Court in Balbir Singh Turn (supra) and M V. Mohanan Nair (supra). The point that was considered by this Court in Balbir Singh Turn (supra) relates to the applicability of the benefit of MACPS from 01.01.2006. The Respondents therein approached the Armed Forces Tribunal which held that the benefit of ACP granted to an employee is part of the pay structure which affects the pay and also his pension. The Armed Forces Tribunal held that an ACP is not an allowance but a part of pay and therefore, in terms of the Government resolution, the employees were entitled for MACP w.e.f 01.01.2006. This Court in Balbir Singh Turn (supra) upheld the said finding recorded by the Armed Forces Tribunal. Instructions issued on 30.05.2011 were found to be contrary to the resolution dated 30.08.2008 as, according to the resolution

01.01.2006 was the effective date for implementation of MACPS in matters relating to pay and dearness allowance.

8. In M V. Mohanan Nair (supra) a three Judge Bench of this Court considered the ACPS as well as the MACPS to hold that the schemes are in the nature of incentive schemes which were brought into force to relieve stagnation. This Court was of the considered view that the Respondents therein were entitled only to the benefit of next grade pay in the pay band and not to the benefit of grade pay of next promotional post. As the MACPS is a matter of Government policy pursuant to the recommendations made by the Pay Commission, this Court refused to accept submissions of the employees that MACPS should be made applicable w.e.f 01.01.2006.

9. In view of the judgment of this Court in M V. Mohanan Nair (supra), the Respondents and other similarly situated employees are entitled for financial upgradation under MACPS only to the next grade pay and not to the grade pay of next promotional post. It is clear from the resolution dated 30.08.2008 that the recommendation of the 6th Pay Commission was accepted by the Government and was made effective from 01.01.2006 in respect of civilian employees with regard to revised scales of pay and dearness allowances. In so far as the revised allowances other than dearness allowance, recommendation of the 6th Pay Commission were given effect from 01.09.2008. The judgment in M. V. Mohanan Nair (supra) clinches the issue. Benefits flowing from ACP & MACP Schemes are incentives and are not part of pay. The resolution dated 29.08.2008 is made effective from 01.09.2008 for implementation of allowances other than Pay and DA which includes financial upgradation under ACP & MACP Schemes. Therefore, the Respondents and other similarly situated officers are not entitled to seek implementation of the benefits of MACPS w.e.f 01.01.2006 according to the resolution dated 29.08.2008. Moreover, the implementation of MACPS by granting financial upgradation only to the next grade pay in the pay band and not granting pay of the next promotional post w.e.f 01.01.2006 would be detrimental to a large number of employees, particularly those who have retired. We find force in the submission made by the learned Additional Solicitor General that uniform implementation of MACPS for civilian employees w.e.f 01.01.2006 would result in large scale recoveries of amounts paid in excess.

10. In view of the above, we set aside the judgment of the High Court and allow these Appeals."

9. Further, Hon’ble Supreme Court in its judgment dt 22.08.2022 in Civil Appeal No 16442/2021 in the case of UOI & Ors Vs HC/GD Virender Singh held that the MACPS, being an incentive, shall be applicable wef 01.09.2008 and not 01.01.2006. The relevant paragraph of the ibid judgment read as under:- “12. In view of the aforesaid discussion, the appeals filed by the Union of India are partly allowed and impugned judgments, to the extent they hold that the MACP Scheme applies with effect from 1.1.2006 and that under the MACP Scheme the employees are entitled to financial upgradation equivalent to the next promotional post, are set aside. MACP Scheme is applicable with effect from 1.9.2008 9 W.P. (c) No. 5278 of 2013 decided on 12th August 2014 and as per the MACP Scheme, the entitlement is to financial upgradation equivalent to the immediate next grade pay in the hierarchy of the pay bands as stated in Section 1, Part A of the First Schedule to the Central Civil Services (Revised Pay) Rules, 2008. The third issue, which relates to the fulfilment of pre- promotional norms for grant of financial upgradation, is decided against the appellant-

Union of India to the extent that this would not be insisted in the case of the Central Armed Forces personnel where, for administrative or other reasons, they could not be sent or undergo the pre-promotional course.”

10. Further, based on Hon’ble Supreme Court judgment in the case of RK Sharma (Supra), Govt of India, Ministry of Personnel, Public Grievance & Pensions, Department of Personnel and Training, have issued comprehensive instructions to all the Ministries/Departments vide their letter No 35034/3/2015- Estt (D) dt 13.07.2021 directing them to dispose off the pending grievances seeking grant of benefit under MACPS wef 01.01.2006 and to defend pending court cases accordingly in the light of Hon’ble Supreme Court judgment in the case of RK Sharma (Supra).

11. Further, in the light of Hon’ble Supreme Court judgment in the case of RK Sharma (Supra), Dte Gen of Inf/Inf-9, GS Branch, IHQ of MoD (Army) vide their letter No C/90028/Dirns/Inf-9 dt 23.05.2023 have issued instructions on the date of the applicability of MACPS, which read as under:- “1. It is intimated that a case file pertaining to implementation of AFT (RB), Chandigarh Order dt 25 Apr 2022 in OA No 1271/2021 filed by No-4462742P Ex Hav Kashmir Singh (C/101923/SIKH LI/Inf-9) for grant of MACP benefits was processed with AG/PS-2 for obtaining the GSL.

2. The Dy JAG, JAG (Lit), IHQ of MoD (Army) has endorsed his comments in the file and has intimated that the BS Turn judgment has now been overruled by the Hon’ble Supreme Court vide Order dt 28 Apr 2021 in case of UOI Vs RK Sharma and Ors wherein the Apex Court has upheld that MACPS is admissible wef 01 Sep 2008 and not 01 Jan 2006 (relevant extract of Noting enclosed).

3. The PS Dte has telephonically confirmed that their letter No B/33152/AG/PS-2(c) dt 30 Dec 2021 is under revision and necessary directions will be passed once approved by MoD.

4. In view of the foregoing, following action be taken:- (a) In Court Cases filed for grant of MACP, the date of discharge of the petitioners and date of applicability of MACPS be factored and defended accordingly.

(b) The cases which have been decided in favour of the petitioners, who were discharged prior to 01 Sep 2008, RA must be filed in the concerned AFT/Court bringing out the facts as included in RK Sharma judgment.

5. It is further clarified that no action is required to be taken in those cases which have already been settled by issuing the Corr PPO for grant of MACPS.

6. For strict compliance please.”

12. 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.

13. In the present case, the Applicant has six days of Non Qualifying Service and has not rendered complete 24 years of qualifying service for grant of MACP benefits, 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. Moreover, he is not covered under MACPS as the Applicant was discharged from Service on 30.06.2007, ie., before the date of the applicability of the MACPS wef 01.09.2008. It is a matter of fact that the Hon’ble Apex Court vide its judgment dt 28.04.2021 in the case of UOI Vs RK Sharma & Ors has overturned the judgment dt 08.12.2017 in Civil Appeal No 3744/2016 in the case of UOI & Ors Vs Balbir Singh Turn and has held that the MACP Scheme would be implemented wef 01.09.2008 and not 01.01.2006 as was ruled earlier. The principles laid down by Hon’ble Supreme Court in the case of RK Sharma (Supra) have further been upheld by Hon’ble Supreme Court in the case of HC/GD Virender Singh (Supra) making it clear that the provisions of MACPS are applicable wef 01.09.2008 and not wef 01.01.2006. Consequent to that, IHQ of MoD (Army) vide their letter No C/90028/Dirns/Inf-9 dt 23.05.2023 has issued instructions as to how to implement the MACP Scheme in view of the

Hon’ble Apex Court judgment in the case of RK Sharma (Supra). Since the Applicant was discharged from Service on 30.06.2007, ie., before the date of applicability of the MACPS wef 01.09.2008, the Applicant is not eligible for grant of MACP benefits.

14. However, keeping in view the fact that the Respondents have not clarified on the issue of regularization of OSL 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 OSL 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 while keeping in view the judgments of Hon’ble Apex Court in the case of RK Sharma (Supra) and HC/GD Virender Singh (Supra) and IHQ of MoD (Army) letters dt 03.06.2016 and 23.05.2023 to determine the eligibility of the Applicant for coverage of MACP benefits to him as he was discharged prior to 01.09.2008, ie., the date from which the MACPS was to be implemented. The outcome thereof shall be intimated to the Applicant.

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

16. No order on costs.

(SANJIV MITTAL)

(GOVERDHAN BARDHAR) MEMBER (A)

MEMBER (J)

Ssy/-