Jharkhand High Court
Hiralal Mahto Age 62 Years Son Of Late ... vs The State Of Jharkhand on 9 October, 2025
Author: Deepak Roshan
Bench: Deepak Roshan
2025:JHHC:31708
IN THE HIGH COURT OF JHARKHAND AT RANCHI
W.P.(S) No. 987 of 2018
Hiralal Mahto age 62 years Son of Late Kalipad Mahto Resident of Purna
Basti, Sonua Road P.O. and P.S. Chakardharpur, District West Singhbhum.
... ... Petitioner(s)
Versus
1. The State of Jharkhand.
2. The Secretary, School Education and Literacy, office at Project Building
P.O. and P.S. Dhurwa, District Ranchi.
3. The Director (Secondary), School Education and Literacy, office at
Project Building P.O. and P.S. Dhurwa, District Ranchi.
4. The Regional Deputy Director of Education, Kolhan Division, Chaibasa,
P.O. and P.S. Chaibasa, District West Singhbhum.
5. The District Education Officer, East Singhbhum at Jamshedpur, P.O.
and P.S. Jamshedpur, District East Singhbhum. ... ... Respondent(s)
CORAM: HON'BLE MR. JUSTICE DEEPAK ROSHAN
For the Petitioner(s) : Mr. Shadab Bin Haque, Advocate
Miss Nisha Kumari, Advocate
For the Respondent-State : Mr. Devesh Krishna, SC (Mines)-III
Mr. Kumar Pawan, AC to SC (Mines)-III
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Order No.18/Dated: 9th October 2025
The instant writ application has been preferred by the
petitioner praying for a direction upon the respondent-authorities to grant
Grade-Pay of Rs. 4800/- from 05.03.2007 and Grade-Pay of Rs. 5400/-
from 05.03.2013 in the pay scale of Rs. 9300-34800/- as has been granted
to the similarly situated persons but the petitioner has not been given
Grade-Pay of Rs. 4800/- in 2nd ACP and Grade-Pay of Rs. 5400/- in MACP
rather he has been granted lower Grade Pay of Rs. 4600/- by way of 1st
ACP only causing recurring financial loss to the petitioner as fixed and
calculated in the service book.
2. At the outset, learned counsel for the petitioner submits that
the issue with regard to passing of departmental examination for financial
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upgradation like ACP/MACP has now been decided to the extent that it is
not required for financial upgradation. He further submits that in the case
of "Amresh Kumar Singh & Ors. v. State of Bihar & Ors." 1 the Hon'ble
Apex Court has deliberated this issue as to whether qualification of
graduation prescribed for promotion to the next higher post of Accounts
Officer from that of Accounts Clerk is necessary even for the purpose of
extending benefit of ACP. The Hon'ble Apex Court at paragraph nos. 12 to
20 of the judgment has held as under:
"12. It may be worth noting that the ACP scheme was enforced on the
recommendation of the Fifth Central Pay Commission in context with Group
C and D employees and it provided monetary benefit to the employees on
completion of 12 years and 24 years of regular service who were not able to
get promotion. The scheme as such was anti-stagnation and envisages
merely placement of the employees in the higher pay scale for the grant of
financial upgradation only without grant of actual promotion. The benefit of
the ACP as such is like granting non-functional in situ promotion.
13. At the cost of repetition, it must be borne in mind that the object of ACP
is to avoid stagnation where no promotional avenues are available. The
grant of ACP is not technically a grant of promotion but increase in the pay
scale to the next higher grade retaining the employee on the post held by
him. This is only to accord monetary benefit without disturbing any seniority
or actually effectuating promotion to any higher post to avoid stagnation on
a particular post or pay scale for a very long period.
14. The object and purpose of ACP/MACP Scheme has been reiterated by
this Court in Union of India v. C.R. Madhava Murthy, (2022) 6 SCC 183, as
one to relieve the frustration on account of stagnation and it does not
involve actual grant of promotional post but merely monetary benefits in the
form of next higher grade subject to fulfilment of qualifications and
eligibility criteria.
15. In sum and substance, both ACP and MACP Schemes are schemes
devised with the object of ensuring that the employees who are unable to
avail of adequate promotional opportunities, get some relief in the form of
financial benefits. Accordingly, the schemes provide for regular financial
upgradation on completion of 12-24 years and 10-20-30 years of service
without promotion. They are incentive schemes for the employees who
complete a particular period of service but without getting promotion for
lack of promotional avenues. The effect of the schemes must be judged
keeping in view the object and the purport of the scheme.
16. In Union of India v. G. Ranjanna reported in (2008) 14 SCC 721, the
three-Judges Bench of this Court held that in situ promotions are made to
remove stagnation of grade C and grade D employees by giving them
certain monetary benefits.
17. It was further observed that fulfilment of educational qualifications
prescribed under the recruitment rules for the purposes of promotion are not
necessary for non-functional in situ promotion. In other words, educational
qualification required for the purposes of promotion is not necessary for the
grant of in situ promotion, i.e., only for extending the monetary benefit
2023 SCC OnLine SC 496
2025:JHHC:31708
where there are no promotional avenues and the employees are likely to be
stagnated.
18. In the aforesaid case, the employees were working as malis (Gardeners)
and had claimed promotion in the higher pay scale. The Central
Administrative Tribunal seized of the original applications observed that the
employees cannot claim the scale of the next higher post by way of in
situ promotion. On the matter being taken to the High Court by way of a
writ petition, the contention of the employees was accepted and it was
observed that the object of in situ promotion on non-functional posts, is to
ensure that the group C and D employees are not stagnated in the same
cadre/pay scale and that they should be provided with certain monetary
benefits. Therefore, the rejection of the claim for such nonfunctional in
situ promotion on the ground that the employees do not possess the
necessary minimum qualification of matriculation as per the rules is not
justified and renders the order erroneous in law. The view so taken by the
Division Bench of the High Court was affirmed by this Court in the above
referred Civil Appeals holding that the High Court has correctly analysed
the object of the in situ promotion and fixation of pay scales to Group C and
D employees to avoid stagnation.
19. In view of the aforesaid legal position coupled with the fact that the
qualification of graduation prescribed is for the promotion to the post of
Accounts Officer rather than for the grant of in situ promotion on the non-
functional post or for extending the benefit of ACP which is purely and
simply in the nature of grant of monetary benefit without actually
effectuating any promotion to any higher post, we are of the opinion that the
judgment and order of the Division Bench of the High Court impugned in
the appeals cannot be sustained. It is accordingly hereby set aside and that
the judgment of the writ court dated 28.11.2017 is restored. The appellants
are extended the benefit of ACP, as directed by the writ court.
20. We have not considered it necessary to deal with the two cases on the
basis of which the Single Judge has allowed the writ petitions and granted
the benefit of the ACP to the appellants, as we have independently of those
two decisions have considered and held that the appellants are entitled to
financial upgradation under the ACP Scheme on completion of requisite
regular service ignoring the higher qualification prescribed for the next
higher post as grant of such benefit is not actually a promotion but only
financial upgradation and if the higher qualification is insisted it would
frustrate the purpose of the entire scheme."
3. Even the Full Bench of Patna High Court in CWJC No. 18727
of 2017 titled "Kamlanand Thakur v. The State of Bihar" at paragraph
nos. 42 to 50 has held as under:
"42. The Supreme Court, after reviewing the Bihar Accounts Service Rules,
2000 as modified on 28th of March, 2000, which provided for minimum
Graduation qualification for promotion to Bihar Accounts Service as also
the ACP Rules of 2003, which spelled out that the beneficiary ought to fulfill
the same conditions as would be required for promotion, held that
"fulfillment of the educational qualifications prescribed under the
Recruitment Rules for the purposes of promotion are not necessary for non-
functional in situ promotion. In other words, educational qualification
required for the purposes of promotion is not necessary for the grant of in
situ promotion, i.e., only for extending the monetary benefit where there are
2025:JHHC:31708
no promotional avenues and the employees are likely to be stagnated".
43. While coming to such conclusion, the Supreme Court has noted that the
ACP scheme was enforced on the recommendations of the 5th Central Pay
Commission in the context of Group C and D employees and it provided
monetary benefits to the employees on completion of twelve years and
twenty four years of regular service, who were not able to get promotion.
The scheme as such was anti-stagnation and envisaged merely placement of
the employees in the higher pay-scale for the grant of financial up-
gradation only, without grant of actual promotion.
44. The benefit of ACP as such is like granting non-functional in situ
promotion.
45. The Supreme Court, after referring to Union of India & Ors. vs. C.R.
Madhava Murthy and Anr.: (2022) 6 SCC 183 and Union of India and Anr.
vs. G. Ranjanna & Ors.: (2008) 14 SCC 721 has held that the ACP/MACP
scheme is only to relieve the frustration on account of stagnation and it does
not involve actual grant of promotional post, but merely monetary benefits
in the form of next higher grade, subject to fulfillment of qualifications and
eligibility criteria.
46. These are incentive schemes for the employees to complete a particular
period of service but without getting promotion for lack of promotional
avenues.
47. The effect of scheme, the Supreme Court went on, must be judged
keeping in view the object and purport of the scheme. In that context, it was
further held that the fulfillment of educational qualifications prescribed
under the Recruitment Rules for the purposes of promotion are not
necessary for non-functional in situ promotion like grant of ACP.
48. Thus, the questions stand answered as follows:-
(A.) Rule 157(3) [J] of the Bihar Board's Miscellaneous Rules, 1958,
requiring passing of Departmental Accounts Examination for promotion, is
not applicable in case of grant of A.C.P. benefits under the A.C.P. Rules,
2003;
(B.) Rule 157(3)[J] of the Bihar Board's Miscellaneous Rules, 1958 is
confined to passing of preliminary examination/final examination in
Accounts only for the purposes of confirmation, crossing the efficiency bar
and promotion to Selection Grade only and not for regular promotion;
(C.) Rule 4(5) of the A.C.P. Rules, 2003 even though provides that the
prescribed requirements and mode of sanction of financial progression
under the scheme (A.C.P. scheme) shall be the same which are prescribed
under the Recruitment/Service Rules for regular promotion against
vacancies and if the Rules/Resolutions prescribe passing of Departmental
Examination or any qualification for promotion, that shall also be an
essential condition for sanction of benefit under the scheme will not affect
the claim for grant of A.C.P. after completion of twelve/twenty four years of
service for the reason that such financial progression under the A.C.P.
scheme is only in situ promotion and nothing more. This is even
notwithstanding any such requirement of passing any Departmental
Examination or acquiring any educational qualification for promotion
under the Service/Recruitment/Promotion Rules.
49. The cases listed under the Reference are now remitted to the respective
Benches for deciding the respective lis.
50. The Reference is answered accordingly."
4. Accordingly, learned counsel for the petitioner submits that
the prayer of the petitioner may be allowed.
2025:JHHC:31708
5. Learned counsel for the respondents though opposes the
prayer of the petitioner made in the writ application, however, could not
distinguish the judgment which clearly says that passing of departmental
examination is not required for financial upgradation. He reiterated that
since the petitioner was promoted to post of Headmaster as such passing of
the departmental examination is necessary for the financial upgradation.
6. Having regard to the aforesaid facts and circumstances of the
case, in crux the issue involved in this writ application is same and similar
to what has been decided by the Hon'ble Apex Court in the case of
"Amresh Kumar Singh & Ors." (supra). Accordingly, the instant writ
application is allowed and the concerned respondents are directed to
extend the benefit of ACP and MACP as per applicable rules and
regulations and the settled proposition of law to the petitioner and
thereafter consequential benefits be given to him within a period of
16 weeks from the date of receipt/production of copy of this order.
(Deepak Roshan, J.)
09th October, 2025
Amit
N.A.F.R
Uploaded on 16/10/2025
