OA 376/2014. Case: Bhupinder Singh and Ors. Vs Union of India and Ors.. Armed Forces Tribunal

Case NumberOA 376/2014
Party NameBhupinder Singh and Ors. Vs Union of India and Ors.
CounselFor Appellant: V.S. Kadian, Advocate and For Respondents: S.P. Sharma, Advocate
JudgesSunil Hali, J. (Member (J)) and Air Marshal J.N. Burma, Member (A)
IssueConstitution of India - Article 14
Judgement DateNovember 06, 2015
CourtArmed Forces Tribunal


Sunil Hali, J. (Member (J)), (Principal Bench, New Delhi)

  1. The short question involved in this petition is as to whether grant of compensation in lieu of quarter is to be based upon the actual rank held by a person or is linked to the pay drawn by the person. In order to appreciate the controversy raised herein, it is necessary to indicate certain facts of the case.

  2. Petitioner No. 1 is an ex-serviceman and the remaining petitioners are serving in the Army at the time of filing of this petition. The Government of India in the 6th Pay Commission recommended Assured Career Progression (ACP) scheme for the Armed Forces Personnel to upgrade their pay and allowances to remove the stagnation in the forces. The scheme, as per the Special Army Instruction 1/S/2008 dated 11.10.2008 provides financial up-gradation at an interval of 8,16,24 regular years of service. The scheme provides financial up-gradation without effecting any change in the rank. A rank is earned by a person only through selection process. The scheme was introduced to compensate for the stagnation in the service. The scheme was made applicable to all the three Armed Forces i.e. Army, Air Force and the Navy. The MACP scheme envisages placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay. Para 5 of the order dated 30.05.2011 provides that "on grant of financial up-gradation under the scheme there will be no change with regard to designation, wearing of rank badges, employability and re-engagement criteria/limits which will continue to be governed by the actual rank, held by the PBOR. However, financial benefits linked to pay would be admissible viz. Family Accommodation Allowance, Transport Allowance, Travel Entitlements and Terminal benefits". The scheme, therefore, clearly provides that all the financial benefits will be linked to the pay which the PBOR was drawing. The financial up-gradation will not automatically be a promotion to the next higher rank. A person will continue to remain in the rank which he was holding at the time financial up-gradation was ordered.

  3. The contention of the learned counsel for the petitioners is that the petitioners are entitled to be compensated in lieu of quarter in terms of the policy laid down by the respondents. The said compensation is payable to a person who has not been provided or has not availed rent free accommodation, by the respondents. In that eventuality, the...

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