SUPREME COURT OF INDIA
INDIRA BANERJEE, V. RAMASUBRAMANIAN, JJ.
Central Bank of India – Appellant
Versus
Nitin – Respondent
Civil Appeal No. 5111 of 2022, SLP (C) No. 19757 of 2021
Decided On : 03-08-2022
Compassionate Appointment Scheme - Financial Criteria - Umesh Kumar Nagpal vs. State of Haryana, (1994) 4 SCC 138, Canara Bank and Another vs. M. Mahesh Kumar, (2015) 7 SCC 412, Balbir Kuar and Another vs. Steel Authority of India Ltd. and Others, (2000) 6 SCC 493, Yogesh Nagraoji Ugale vs. State of Maharashtra through Principal Secretary and Others, (2020) 19 SCC 426
Fact of the Case:
The respondent's father applied for voluntary premature retirement due to medical incapacitation. The respondent applied for compassionate appointment after his father's retirement, suppressing his employment with ICICI Bank. The committee rejected the proposal for compassionate appointment based on the family's income exceeding the prescribed limit.
Finding of the Court:
The High Court erred in ignoring the financial criteria for compassionate appointment and the respondent's suppression of material facts. The appeal is allowed, and the impugned judgment is set aside.
Issues: Suppression of material facts in the application for compassionate appointment, rejection based on family income exceeding the prescribed limit, and the High Court's oversight of the financial criteria for compassionate appointment.
Ratio Decidendi: Compassionate appointment must strictly adhere to the prevalent rules, including financial criteria, and cannot be granted as a matter of course. The application for compassionate appointment must be preferred without undue delay and considered within a reasonable period of time.
Final Decision: The appeal is allowed, and the impugned judgment and order are set aside. There shall be no order as to costs.
JUDGMENT :
INDIRA BANERJEE, J.
1. Leave granted.
2. This appeal is against the judgment and order dated 04.08.2021 passed by the Aurangabad Bench of the High Court of Judicature at Bombay, (Division Bench), allowing the writ petition being Writ Petition No. 12352 of 2018 filed by the respondent and directing the appellant to consider the case of the respondent for compassionate appointment as per his seniority in filing the application for compassionate appointment, “but from the date of the petitioner having quit his clerical job with the ICICI Bank Limited.”
3. The respondent-writ petitioner’s father, Mr. Y.P. Arawade, who was working as Special Assistant in the Kolgaon Branch of the Appellant-Bank in Ahmednagar District, Maharashtra applied for voluntary premature retirement from service on 16.04.2015 on the ground of medical incapacitation.
4. The prayer of the respondent writ petitioner’s father for premature retirement on the ground of medical incapacitation was allowed with effect from 26.06.2015.
5. The appellant-Bank has from time to time framed schemes for dependents of deceased employees/physically incapacitated employees in terms of the guidelines issued by the Government of India/Indian Banks Association pursuant to the observations of this Court in Umesh Kumar Nagpal vs. State of Haryana, (1994) 4 SCC 138.
6. A scheme called ‘Scheme for Payment of Ex-Gratia Lump Sum Amount in lieu of Appointment on Compassionate Grounds’ hereinafter referred to as “the Scheme” came into force with effect from 14.12.2005. The Scheme provided for payment of an ex-gratia lump sum amount to employees seeking premature retirement on the ground of medical incapacitation.
7. Employees of the appellant-Bank seeking premature retirement due to medical incapacitation, before attaining the age of 55 years, were to be entitled to the benefit of the Scheme, subject to the condition that the total monthly income of the family arrived at, as per the calculation prescribed, was less than 60% of the last drawn gross salary of the employee.
8. By a Circular being CIR/HR/2014-15/532/4 dated 11.08.2014, the Indian Banks’ Association circulated a revised scheme for compassionate appointment in Public Sector Banks pursuant to the approval of the Government of India conveyed vide D.O. Letter No. 18/2/2013-IR dated 07.08.2014.
9. The scheme as circulated by the Indian Banks’ Association was adopted by the appellant-Bank. By a circular dated 08.04.2018, the appellant-Bank notified “The Scheme For Appointment on Compassionate Grounds or Payment of Lumpsum Ex-Gratia Amount” hereinafter referred to as the “Compassionate Appointment Scheme.” The Compassionate Appointment Scheme came into effect from 06.08.2014.
10. As recorded above, by an order dated 25.06.2015, the appellant-Bank permitted said Y.P. Arwade, father of the respondent writ petitioner to voluntarily retire from service on the ground of medical incapacitation and he was relieved from duty w.e.f. 25.06.2015.
11. On 20.07.2015, the respondent writ petitioner applied for compassionate appointment in place of his father in terms of the Compassionate Appointment Scheme. It appears that at the material time when the respondent writ petitioner applied for compassionate appointment, he had been working as a Clerk in the ICICI Bank Ltd.
12. In his application for compassionate appointment, the respondent writ petitioner suppressed the fact that he was employed in the ICICI Bank. He misrepresented himself as not employed. The respondent writ petitioner resigned on 02.03.2016, i.e. almost eight months after he submitted his application for appointment of compassionate grounds.
13. On 25th January, 2018 the application of the respondent was considered by a Four Member Committee constituted under the Compassionate Appointment Scheme. The Committee found that the retired employee was earning monthly pension of Rs. 25,110/- and had received other retiral financial benefits totalling Rs. 27,05,766/-. After adjusting loan li
Compassionate appointment must strictly adhere to the prevalent rules, including financial criteria, and cannot be granted as a matter of course.
The financial status of the family cannot be the basis for refusing compassionate appointment to an eligible candidate.
The definition of 'indigent' for compassionate appointments should reflect financial distress rather than strict poverty thresholds, emphasizing context over mechanical criteria.
The main legal point established is that the eligibility criteria for compassionate appointment is governed by specific provisions in the Circular dated 03.08.2015 and cannot be extended to include g....
The main legal point established in the judgment is that the eligibility criteria for compassionate appointment is only as per Para 5.1 and 5.2 of the Circular dated 03.08.2015, and not as stipulated....
Compassionate appointment requires assessment of financial distress; mere receipt of terminal benefits does not negate eligibility for such appointment.
Eligibility for compassionate appointment must be determined by the scheme in effect at the time of the employee's death, not subsequent modifications.
The court established that financial benefits received by a deceased employee's family must be assessed against their liabilities to determine eligibility for compassionate appointment.
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