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2025 Supreme(Mad) 4371

IN THE HIGH COURT OF JUDICATURE AT MADRAS
J. SATHYA NARAYANA PRASAD, J.
M. Balamurugan - Appellant
Versus
Indian Overseas Bank Rep. by its Chief Executive Officer - Respondent
W.P. No. 10162 of 2020
Decided On : 31-01-2025

Advocates:
Advocate Appeared:
For the Appellants : K.M. Ramesh, V. Subramani
For the Respondent: V. Kadhirvelu

The court ruled that the absence of documentation from the bank invalidated its rejection of the petitioner's claim for ex-gratia payment, mandating reconsideration under the applicable compassionate appointment scheme.

Headnote:(A) Writ Petition - Challenging impugned order dated 30.04.2020 denying ex-gratia payment under compassionate appointment scheme - The petitioner’s father died in service on 10.05.2006, and the petitioner applied for compassionate appointment which was rejected due to lack of provision at that time - The bank later stated that an application for ex-gratia must be submitted within one year of death, which was contested by the petitioner. (Paras 1-4, 10-12)

(B) Compassionate Appointment Scheme - The scheme provides for ex-gratia payment to dependents of deceased employees, with maximum amounts specified for different categories - The petitioner was eligible for ex-gratia payment as per the scheme applicable to the deceased's death date. (Paras 3, 16)

(C) Legal Heirs - The court noted the absence of documentation proving the bank's prior communication regarding the application for ex-gratia payment, rendering their rejection unsustainable. (Paras 18-19)

(D)

Findings of Court:
The impugned order was quashed, directing the bank to consider the petitioner’s claim for ex-gratia payment as per the applicable scheme. (Paras 20-21) (E)

Issues: The main issues were whether the petitioner was entitled to ex-gratia payment and the validity of the bank's rejection based on the timing of the application. (Paras 4, 10) (F)

Ratio Decidendi: The court concluded that the absence of documentation from the bank undermined its rejection of the claim, thereby mandating the consideration of the petitioner’s application for ex-gratia payment. (Paras 20-21) (G)

Result: Writ petition allowed.

ORDER :

1. The present writ petition has been filed challenging the impugned order dated 30.04.2020 and quash the same and for a consequential direction to the respondents to consider the claim of the petitioner for providing ex-gratia payment in lieu of compassionae appointment as per the Scheme notified vide Circular dated 28.09.2015 to the petitioner

2. The brief facts of the case are as follows:-

The case of the petitioner is that his father was working as Shroff/Godown Keeper in the first respondent Bank at Chockikulam Branch, Madurai and he died while in service on 10.05.2006. The petitioner applied for appointment on compassionate grounds in the year 2006 itself. However, the same was not considered on the ground that there is no provision for compassionate appointment. Again, the petitioner applied for compassionate appointment in the prescribed format on 25.02.2019 and the same was rejected by the second respondent by its letter dated 04.03.2019. Aggrieved by the order of rejection of the Compassionate appointment, the petitioner earlier filed writ petition in W.P.No.15471 of 2019 challenging the said order for a favourably consideration of his claim for compassionate appointment and this Court directed the respondent to consider the representation of the petitioner afresh for ex-gratia amount in lieu of compassionate appointment in accordance with the scheme. However, the second respondent Bank passed the impugned letter dated 30.04.2020 stating that the application for ex-gratia amount should be submitted within one year from the date of death of the deceased employee viz., Mr.P.Muthuraj. Aggrieved by the order of rejecting the claim for ex- gratia payment , the petitioner has come forward with the present writ petition.

3. The learned Senior counsel appearing for the petitioner would submit that only in the year 2014 as per the Government of India instructions, the respondent bank has evolved Scheme for compassionate appointment. The new Scheme floated by the respondent bank provides for either compassionate appointment or payment of lumpsum ex-gratia amount in lieu of compassionate appointment. In the case of clerical staff, the ex- gratia payment fixed at Rs.7,00,000/- ( Rupees seven lakhs only). The second respondent has rejected the application for compassionate appointment by its letter dated 04.03.2019 stating that “ in this connection, you made a request for compassionate appointment for yourself , on demise of your father, cannot be considered favourably since the Scheme for compassionate appointment was not in vogue at the time of death of Mr.C.Muthuraj, the father of the petitioner.

4. The learned Senior counsel appearing for the petitioner further submitted that the petitioner's mother has given a representation as early as 20.08.2006 to the respondent bank requesting for appointment to her son on the compassionate ground since she is not a position to work in the bank. As per circular issued by the respondent bank dated 28.03.2015 vide Reference No.EST/95/2014-2015 dated 28.03.2014, in regard to payment of ex gratia amount it reads as under : -

CategoryMaximum Amount
OfficersRs.8 lacs
Clerical StaffRs.7 lacs
Sub-ordinate staffRs.6 lacs.

5. The learned Senior counsel further referred to the scheme for compassionate appointment /payment of ex-gratia lumsump amount in lieu of compassionate appointment. In which, the cadre wise ceiling of ex-gratia amount payable at present is as follows:-

CategoryMaximum Amount
OfficersRs.8 lacs
Clerical StaffRs.7 lacs
Sub-ordinate staffRs.6 lacs.

6. It is evident from the Income Certificate of the petitioner vide No.TN-4201912065372 dated 09.12.2019 issued by the Zonal Deputy Tahsildar, Madurai North which evidences that the "financial condition and indigent circumstances has not changed and he is eligible ex-gratia in lieu of compassionate appointment.

7. A Counter affidavit filed on behalf of the second respondent dated 30.012021.

8. The learned counsel appearing for the respondents wou

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