Employee's Right to Financial Upgradation: Patna High Court Rules in Favor of ACP/MACP Benefits



Introduction

The High Court of Judicature at Patna recently delivered a judgment regarding the entitlement of an employee to the benefits of the Assured Career Progression (ACP) and Modified Assured Career Progression (MACP) schemes. The court addressed the question of whether passing a departmental examination is a prerequisite for receiving these financial upgradations.

Background of the Case

The petitioner, Nand Kishore Singh, was appointed as a Junior Accounts Clerk in the Road Construction Department on May 23, 1987. At the time of filing the writ petition, he was working as a Senior Accounts Clerk at the Road Division, Chapra, under the Saran Road Circle. The petitioner had passed the Hindi Noting and Drafting Examination and the Departmental Accounts Examination.

The petitioner's grievance stemmed from orders issued by the Superintending Engineer, Saran Road Circle, Road Construction Department, Hajipur. These orders denied the petitioner the benefits of the second and third ACP schemes and granted the 1st ACP from the date of passing the Departmental Accounts Examination rather than the date he was due for it.

Petitioner's Arguments

The petitioner argued that he was entitled to the 1st ACP benefit upon completing 12 years of service, which was due on August 9, 1999, and not from January 17, 2010, when he passed the Departmental Accounts Examination. Similarly, he claimed entitlement to the 2nd ACP from January 1, 2009, instead of January 17, 2020. The petitioner's counsel cited a Supreme Court judgment, Amresh Kumar Singh & Ors. vs. The State of Bihar & Ors., stating that not passing the Departmental Accounts Examination should not hinder the grant of ACP/MACP benefits.

State's Response

The respondent-State argued that according to Clause 4 of the ACP Rules, 2003, employees must possess the qualifications required for regular promotion, including passing departmental examinations if prescribed by the service rules. The State contended that since the petitioner passed the Departmental Accounts Examination on January 17, 2010, he was correctly granted the 1st ACP from that date and the 2nd MACP after ten years from that date, i.e., from January 17, 2020.

High Court's Decision

The Patna High Court ruled that the legal position on the matter was well-established. It referred to several precedents, including a Division Bench decision in State of Bihar & Ors. vs. Ram Subhag Singh, which held that not passing a departmental examination should not impede the grant of time-bound promotions or ACP/MACP benefits. The court also cited the Amresh Kumar Singh case, where the Supreme Court affirmed that ACP benefits, being purely monetary and not involving promotion to a higher post, cannot be withheld due to the lack of additional educational qualifications or passing of exams.

Outcome

The High Court quashed the orders dated June 3, 2016, and July 28, 2021, issued by the respondent no. 3, concerning the petitioner. The respondent authorities were directed to grant the petitioner the benefits of the ACP/MACP schemes from the dates they were due, without considering the fact that the petitioner had not passed the Departmental Accounts Examination in time. The writ petition was allowed.

Key Legal Principles

This case reiterates important principles concerning employees' rights to financial upgradation:

  • ACP/MACP Benefits: These schemes are intended to provide financial benefits to employees to address the issue of stagnation in their careers.

  • Departmental Examinations: The court clarified that passing departmental examinations cannot be a mandatory requirement for granting ACP/MACP benefits, as these are monetary benefits and not promotions.

  • Judicial Precedents: The court relied on previous decisions of the High Court and the Supreme Court to establish the legal position on the issue.

Conclusion

The Patna High Court's judgment reaffirms that employees are entitled to ACP/MACP benefits as a means of financial progression, and these benefits cannot be denied solely based on the non-passing of departmental examinations. This decision ensures that employees receive their due financial benefits, addressing the issue of stagnation in their careers. 

Read the full judgement Below;

https://patnahighcourt.gov.in/viewjudgment/MTUjMTkxODYjMjAyMSMxI04=-anaYmM2V--am1--10=