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2016 Supreme(P&H) 1759
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
KULDIP SINGH, J.
Kusum Dhankar - Petitioner
Versus
Punjab National Bank, New Delhi - Respondent
CWP No. 16588 of 2012
Decided On : 08-09-2016
For the Petitioner:Mr. Jasbir Malik, Advocate.
For the Respondent:Mr. Sourav Verma, Advocate.
The main legal principle established is that the eligibility for ex-gratia assistance should be determined based on the income immediately after the death of the deceased employee, and subsequent rise in income, including compensation received from other sources, should not be considered to review or withdraw the assistance.
Headnote:
ex-gratia assistance - Employment Benefits - HRD division circular no. 433 dated 03.11.2007 - The court discussed the HRD division circular no. 433 dated 03.11.2007 introduced by the respondent-Bank as a welfare measure to provide relief to the family of the deceased employee. The circular outlines the eligibility criteria for ex-gratia assistance and the conditions under which it can be granted. The court emphasized that the eligibility of the family for ex-gratia assistance should be determined based on the income immediately after the death of the deceased employee and subsequent rise in income, including compensation received from other sources, should not be considered to review or withdraw the assistance.
Fact of the Case:
The petitioner's husband, a bank employee, died in a road accident. The petitioner applied for ex-gratia assistance, which was initially sanctioned but later withdrawn due to a rise in the family's income from other sources. The petitioner challenged the withdrawal of ex-gratia assistance.
Finding of the Court:
The court found that the withdrawal of ex-gratia assistance based on the subsequent rise in the family's income was not justified as the eligibility should be determined based on the income immediately after the death of the deceased employee.
Issues: The main issue was whether the respondent-Bank was entitled to withdraw the ex-gratia assistance based on the subsequent rise in the family's income.
Ratio Decidendi: The court held that the eligibility for ex-gratia assistance should be determined based on the income immediately after the death of the deceased employee, and subsequent rise in income, including compensation received from other sources, should not be considered to review or withdraw the assistance.
Final Decision: The petition was allowed, and the court issued a writ of mandamus directing the respondent to release the ex-gratia assistance along with interest, as the withdrawal of the assistance was not justified.
KULDIP SINGH, J.
1. Azad Ram-deceased husband of the petitioner was working as CCO in the respondent-Punjab National Bank since 01.03.1985. On 23.01.2008, he died in a road accident. On 09.07.2008, the petitioner filled-in the requisite application form (Annexure P-1) for grant of ex-gratia assistance in lump-sum in lieu of employment on compassionate ground. It was followed by another letter/reminder dated 23.02.2009(Annexure P-2) for early decision in the matter. Vide letter dated 09.11.2009 (Annexure P-3), the respondent- Bank sanctioned Rs. 8.00 lakhs as ex-gratia assistance to the petitioner and she was asked to visit the branch of the Bank in business hours on any working day.
2. It comes out from letter (Annexure P-5) that the petitioner again addressed a letter dated 22.06.2011 intimating the respondent-Bank that her proposal for ex-gratia has already been accepted by the Bank but she had stated that she had delayed the matter on account of the fact that there was some possibility regarding having appointment on compassionate ground in the respondent-Bank. In the said letter she further prayed that the ex-gratia assistance be released alongwith the interest as early as possible. The respondent-Bank thereafter addressed a letter dated 23.06.2011 (Annexure P-4) whereby she was informed that ex-gratia proposal was recommended to the higher authorities for consideration and competent authority had observed that the monthly income of the family of the deceased employee from all sources is more than 60% of the last drawn salary of the deceased employee and as such the family of the deceased is not eligible to receive ex-gratia assistance under the Scheme. The petitioner has challenged the said letter dated 23.06.2011 (Annexure P-4) whereby ex-gratia assistance was withdrawn.
3. The respondent Bank in the reply has claimed that there is a policy in the shape of HRD division circular no. 433 dated 03.11.2007 which has been introduced by the respondent-Bank as a welfare measure to provide relief to the family of the deceased employee dying in harness or taking premature retirement. It is stated that ex-gratia payment cannot be claimed as a matter of right. It is stated that the petitioner has filed an application for grant of ex-gratia assistance in lieu of the appointment on compassionate ground on 09.07.2008 in terms of aforesaid circular and the same was considered by the respondent-Bank and an amount of Rs. 8.00 Lakhs were sanctioned in lieu of the appointment on compassionate ground. However, the petitioner consistently declined the offer as given to her vide letters dated 03.12.2009 and 04.02.2010 and pressed for appointment on compassionate ground. On 31.07.2010, the petitioner again requested for sanction of ex-gratia assistance and submitted an application under the said scheme. In the meanwhile, the family of the deceased got compensation of Rs. 16,20,828/- from the Motor Accident Claims Tribunal, Kurukshetra on 31.07.2009 and further on 27.04.2010 a joint note was signed between the Indian Banks’ Association and Officers’ Association at industry level. In terms of said note revised wages structure in Bank became operative w.e.f 01.11.2007. Due to these subsequent developments, the financial position of the petitioner had changed and the eligibility of the petitioner for grant of ex-gratia assistance was reconsidered. On the basis of fresh calculations, the family of the deceased was found to be ineligible for the ex-gratia assistance as the monthly income of the family from all sources was found to be more than 60% of the last drawn gross notional salary of the deceased employee i.e. Rs. 14,824/-.
4. I have heard learned counsel for the parties. Undisputedly, the petitioner has applied for grant of ex-gratia assistance on 09.07.2008 and it was sanctioned on 09.11.2009 (Annexure P-3). It is also apparent that the petitioner did not receive the said ex-gratia assistance and kept pressing for appointment on compas
