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2007 Supreme(SC) 108

Supreme Court Of India
STATE BANK OF INDIA - Appellant
Versus
ASPAL KAUR - Respondent
Arising Out Of SLP (C) 2432 Of 2006
Decided On : 02/01/2007
.

Appointments on compassionate grounds should be based on the financial condition of the family and should only be made in cases of penury and destitution.

Headnote:

Compassionate Appointment - Financial Condition of Family - (1994) 4 SCC 138, (1999) 5 SCC 762, (2006) 7 SCC 350, (1994) 2 SCC 718, (2004) 7 SCC 271 - The court discussed the provisions of the scheme for appointment on compassionate grounds, financial condition of the family, and the criteria of penury. The court emphasized that appointments on compassionate grounds should be based on the financial condition of the family and should only be made in cases of penury and destitution.

Fact of the Case:

The widow of a deceased bank employee applied for compassionate appointment, which was declined by the bank based on the financial condition of the family. The High Court ordered reconsideration, but the Supreme Court held that the family's financial condition did not warrant compassionate appointment.

Finding of the Court:

The court found that the financial condition of the family did not meet the criteria for compassionate appointment as per the scheme and legal precedents.

Issues: The main issue was whether the widow of the deceased employee was entitled to compassionate appointment based on the family's financial condition.

Ratio Decidendi: The court held that appointments on compassionate grounds should be based on the financial condition of the family and should only be made in cases of penury and destitution.

Final Decision: The appeal filed by the bank was allowed, and the orders of the High Court were set aside.

AR. LAKSHMANAN, J.

( 1 ) LEAVE granted.

( 2 ) ON 07. 08. 1996, the Government of India, Ministry of Finance, issued guidelines regarding scheme of appointment of dependents of deceased employees on compassionate grounds, which were entirely based on the observations of this Court in Umesh Kumar Nagpal vs. State of Haryana and Ors. , (1994) 4 SCC 138. Subsequently, on 23. 08. 1996, the Indian Banks Association issued a circular suggesting to all Public Sector Banks, certain amendments to the scheme on compassionate appointment, while taking into account the financial condition of the family, the family pension, gratuity, proceeds of LIC, etc should be taken into consideration. Based on the guidelines issued by the Government of India and the Indian Banks Association, the appellant Bank framed a scheme for appointment on compassionate grounds for dependent of deceased employees. A memorandum of the same was presented before the Central Board of the Bank, which was approved on 16. 11. 1996.

( 3 ) ON 01. 08. 1999, Record Assistant (Cash and Accounts) in the Dhab Wasti Ram, Amritsar branch, Sri. Sukhbir Inder Singh (late), passed away. The respondent, widow of Sri. Sukhbir Inder Singh applied for compassionate appointment in the appellant Bank on 05. 02. 2000. On 07. 01. 2002, the competent authority of the Bank declined the application of the respondent in view of the scheme vis-`-vis the financial position of the family. Against this decision of the authority the respondent filed Civil Misc. Writ Petition No. 3077/2002 before the Punjab and Haryana High Court.

( 4 ) THE High Court ordered reconsideration of the case of Jaspal Kaur, respondent herein by its order dated 11. 12. 2003. On 05. 03. 2004, the Deputy General Manager of the Bank reconsidered the case of the respondent and declined appointment to the respondent on compassionate ground after taking into consideration the financial condition of the family.

( 5 ) THE Competent Authority thereafter declined the request of the respondent on 03. 04. 2004. This decision was conveyed to the respondent by the appellants on 05. 04. 2004. Thereafter, the respondent filed one more Civil Misc. Writ Petition No. 9629/2004 before the Punjab and Haryana High Court praying for quashing of the order dated 03. 04. 2004. The appellants filed their reply on 03. 05. 2005. On 20. 09. 2005, the High Court allowed the writ petition filed by the respondents and observed that, "the aforesaid kitty of Rs. 4,57,607/- granted to the family on account of terminal benefits could not be accepted to be sufficient. The said amount was naturally in the shape of a security for the marriage of the daughters. In our considered view the aforesaid income is not sufficient for the bare maintenance of the family". It is against this order and judgment of the Punjab and Haryana High Court, this Civil Appeal by way of Special Leave Petition is preferred by the appellant Bank in this Court. Learned senior counsel Mr. Mukul Rohtagi appeared on behalf of the appellant Bank and learned Counsel Mr. P. N. Puri appeared for the respondent. It was submitted by Mr. Mukul Rohtagi, that the High Court has failed to appreciate that the respondent could be considered for compassionate appointment only under the scheme framed by the Bank. Hence the provisions of the scheme viz. compassionate appointment applies only in cases wherein the deceased has left the family in penury and without any means of livelihood are required to be taken into consideration. Also the appellant-Bank, as per the Scheme, is required to look at the penurious condition/indigent circumstances existing at the time of death of the sole breadwinner, warranting such compassion. And in any case if there does not exist any such circumstances, a writ of mandamus, cannot be issued, de hors the scheme. It was submitted that, the High Court failed to appreciate that in the present case the family of the deceased employee consists of widow, twin daughters and one
















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