In Brief
The Supreme Court settled a dispute over the Modified Assured Career Progression (MACP) Scheme affecting government employees' pay upgradation. Employees who stagnated without promotion sought financial upgradation to the grade pay of their next promotional rank. The Court held that MACP entitles upgradation only to the immediate next higher grade pay in the revised pay hierarchy, not to the grade pay of the next promotional post as under the older ACP Scheme. The Sixth Pay Commission designed MACP to eliminate inter-departmental disparities. Courts must exercise restraint in interfering with expert body recommendations unless demonstrably arbitrary. The Court also clarified that Raj Pal's case, dismissed on procedural grounds, could not serve as binding precedent, and High Courts erred in following it. All impugned orders were set aside.
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