Background Facts

The employee was appointed on the post of Junior Accounts Clerk by the respondent. Later he passed 'Hindi Noting & Drafting Examination'. He was declared successful in the 1st and 2nd papers of departmental accounts examination vide result dated 24.03.1993. He was granted 1st ACP w.e.f. 01.03.2000 and 2nd MACP w.e.f. 01.09.2008. After completion of 30 years of satisfactory service, he submitted a representation for grant of 3rd MACP, however it was not granted to him.

The respondent informed the employee that he did not fully pass the departmental accounts examination. It was mandatory to pass 1st, 2nd and 5th papers for confirmation of service/MACP. Therefore, the employee passed 5th paper of departmental accounts examination. His service was confirmed w.e.f. 01.08.2022. Thereafter, by an office order dated 22.04.2024, the benefit of 1st ACP was shifted to 01.08.2022. Further the benefit of 2nd MACP granted to the employee was also taken away.

Aggrieved, the employee filed a writ petition which was allowed and the office orders were set aside. It was further directed to the State to issue formal order of confirmation with respect to his date of joining i.e. 01.03.1988. Further, it was directed to keep intact the benefits of 1st ACP and 2nd MACP already granted to him, and also to extend the benefit of 3rd MACP w.e.f. the date of completion of 30 years of his service.

Aggrieved by the same, the State filed the Letters Patent Appeal before the Jharkhand High Court.

It was argued by the State that the employee's representation for getting the benefit of 3rd MACP was considered by the Screening Committee. The committee decided that 1st ACP and 2nd MACP granted to the employee was an error because it was granted without confirmation of his service as well as without passing the departmental examination. Therefore, the grant of 1st ACP was modified and shifted from 01.03.2000 to 01.08.2022 and further the grant of 2nd MACP was taken away.

It was further submitted that the employee had passed 5th paper of the departmental accounts examination on 31.07.2022. Therefore, his service was confirmed with effect from 01.08.2022. It was further argued that his claim to grant him 3rd MACP by treating his service confirmed from the date of joining and not w.e.f. 01.08.2022, is contrary to the Jharkhand Accounts Clerical Service Cadre (Recruitment, Promotion & Terms of Service) Rules, 2018.

On the other hand, it was argued by the employee that passing of the 1st, 2nd and 5th papers of the departmental accounts examination was not a condition precedent to extend the benefits of ACP/MACP. It was submitted that he passed the 5th paper of departmental accounts examination on 31.07.2022 therefore, his service should have been confirmed from the date of his joining.

Findings and Observations of the Court

It was observed by the Division Bench that the contention of the State that the grant of ACP/MACP of the respondent has been revisited on the ground of his not having passed the departmental accounts examination, was unjustified.

The case of Amresh Kumar Singh & Others vs. State of Bihar and Others was relied upon wherein it was held by the Supreme Court that both ACP and MACP Schemes are devised with an object to ensure that the employees who are unable to avail of adequate promotional opportunities, get some relief in the form of financial benefits. They provide for regular financial upgradation on completion of service without promotion.

Further the case of Union of India & Another vs. G. Ranjanna & Ors. was relied upon wherein it was held that fulfilment of educational qualifications prescribed under the recruitment rules for the purposes of promotion are not necessary for non-functional in situ promotion. It was further observed by the court that the purpose of grant of ACP/MACP is to provide monetary benefits to the employees due to stagnation in service. The requirements for grant of promotion cannot be the condition precedent to grant of ACP/MACP by which only monetary benefit is extended to an employee in absence of promotional avenues.

It was further noted that the employee was appointed in service. He passed the 'Hindi Noting and Drafting examination', the 1st and 2nd papers of departmental accounts examination. Thereafter he was granted benefits of the 1st ACP and 2nd MACP, which was never questioned by the State till the employee filed representation for grant of 3rd MACP on completion of 30 years of his service.

It was observed that the State has not been able to show any guidelines applicable at the time of grant of 1st ACP and 2nd MACP or even at the time of filing of his representation for grant of 3rd MACP suggesting that passing of the 5th paper of departmental accounts examination was a pre-requisite for grant of ACP/MACP.

It was further held that the 2018 Rules relied upon by the State was effective from 24.04.2018. Therefore, the benefits already accrued to the employee prior to such date could not have been taken away by the State.

It was held by the Division Bench that ultimately the employee passed the 5th paper of the departmental accounts examination therefore, his service was required to be confirmed with effect from the date of his joining and not from the date of passing of 5th paper. It was further held that even the 2018 Rules do not specify that the service of an employee will be confirmed with effect from the date of passing of the departmental accounts examination.

With the aforesaid observations, the decision of the Single Judge was upheld by the Division Bench. Consequently, the Appeal filed by the State was dismissed by the Division Bench.

Case Name : The State of Jharkhand & Others vs. Mohan Rajak

Case No. : L.P.A. No. 527 of 2025

Counsel for the Appellants : Manish Kumar, Sr.S.C.-II; Ashwini Bhushan, A.C. to Sr.S.C.-II

Counsel for the Respondent : Jay Shankar Tiwary, Advocate