The policy, which is also known as 'command exit promotion policy', had made widespread unrest within the army.
According to the army officers, the policy adversely affected them and it was arbitrary and highly skewed in favour of Infantry and Artillery.
The operation of the decision, which was made by AFT on March 2, was stalled by a three-judge bench comprising Justices TS Thakur, R Banumathi and Amitava Roy.
Questions were raised from various corners of the army and several officials demanded for scrapping the policy that had also resulted in preferential promotions to officers of select branches.
Meanwhile, the Centre in its appeal justified the promotion policy and stated that Army, being the employer, has a right to have its promotion policies. It also questioned AFT for the interference in policy decisions.
It also added that the age limit of battallion commanders in Indian Army to be reduced. The age profile of unit commanders in Pakistan and Chinese armies are 35 and 40 years.
The Centre in the year 2001 had urged Chief of Army Staff to refer the recommendations of A V Singh Committee (AVSC) on restructuring of the officer cadre of the Army.