IN THE HIGH COURT OF ALLAHABAD
J.J. MUNIR, J.
Smt. Sharda Devi – Petitioner
Versus
General Manager, State Bank of India and Others - Respondents
Writ A. No.7332 of 2023
Decided On : 21-12-2023
Ex Gratia Payment - Delayed Payment - State Bank of India Scheme for Payment of Ex-Gratia Lumpsum Amount in Lieu of Compassionate Appointment - Circular No. CDO/P&HR-PM/ 65/2014-15 - [CDO/P&HRD-PM/28/2005-06, CDO/P&HRD-PM/20/2011-12, CDO/ P&HRD-PM/06/2012-13, CDO/P&HR-PM/75/2013-14] - The petitioner, widow of a deceased employee of the State Bank of India, sought payment of ex gratia and interest on delayed disbursement. The court held that the petitioner was entitled to interest for the delayed payment of ex gratia lump sum, as the entitlement to receive ex gratia lump sum accrued on the day her husband died in harness, not on the day when she made the application. The court referred to a circular dated 27th December, 2014, which indicated that the ex gratia lump sum is a right of the dependents, not a discretion of the bank, and held that the delay in disbursement warranted the award of interest.
Fact of the Case:
The petitioner, widow of a deceased employee of the State Bank of India, sought payment of ex gratia and interest on delayed disbursement. The court found that the petitioner was entitled to interest for the delayed payment of ex gratia lump sum, as the entitlement to receive ex gratia lump sum accrued on the day her husband died in harness, not on the day when she made the application.
Finding of the Court:
The court found that the petitioner was entitled to interest for the delayed payment of ex gratia lump sum, as the entitlement to receive ex gratia lump sum accrued on the day her husband died in harness, not on the day when she made the application.
Issues: The issues involved were whether the petitioner was entitled to interest on the delayed payment of ex gratia and whether there was a delay in the payment of ex gratia.
Ratio Decidendi: The court held that the petitioner was entitled to interest for the delayed payment of ex gratia lump sum, as the entitlement to receive ex gratia lump sum accrued on the day her husband died in harness, not on the day when she made the application. The court referred to a circular dated 27th December, 2014, which indicated that the ex gratia lump sum is a right of the dependents, not a discretion of the bank, and held that the delay in disbursement warranted the award of interest.
Final Decision: The petition succeeded, and a mandamus was issued to the State Bank of India to ensure payment of simple interest on the ex gratia already paid at the rate of 7% per annum from 13.12.2011 until realization. The interest was to be paid within a period of two months from the date of receipt of the judgment.
JUDGMENT :
(J.J. Munir, J.)
1. The petitioner's husband, the late Indra Mani Yadav was a Class-III employee in the service of the State Bank of India. He was posted at the State Bank of India, Branch Khalilabad, District Sant Kabir Nagar in the year 2007. He met with an accident and died in harness on 31.12.2007. The petitioner, the deceased employee's widow, moved the respondent Bank, seeking payment of death-retirement benefits on account of her husband's services. These benefits were paid to the petitioner by the Bank.
2. The petitioner next moved an application seeking compassionate appointment for her son. The Bank responded to the petitioner's application by their memo dated 01.12.2011 saying that w.e.f. 04.08.2005, the Establishment had discontinued granting compassionate appointment, but in its stead, pay a lump sum money, styled as ex gratia. It was said in the memo dated 01.12.2011 that the Bank were forwarding to the petitioner an application form for the payment of ex gratia, which the petitioner may, within a week of receipt thereof, submit to the Bank, completing all other formalities required.
3. The petitioner says that she submitted the application form to the Khalilabad Branch of the Bank on 13.12.2011, a copy of which is on record as Annexure No.3 to the writ petition. This application is in a printed proforma, filled up with grueling details and information.
4. It is the petitioner's case that after submitting her application form for payment of the ex gratia, she submitted several representations to expedite it, but all that she received was assurance extended by different officials of the Bank. The petitioner, being the widow of a deceased Bank employee, had faith in the higher officials of that organization and trusted them for their word. She moved a representation dated 22.09.2012, followed by another dated 23.11.2012, requesting payment of the ex gratia, to which she was entitled. These applications were duly received by the respondent Bank. After a substantial period of this chase and false assurances extended, the petitioner was compelled to institute Writ-A No.12428 of 2022 before this Court, seeking a direction to the Bank to release the ex gratia payable to her and further to consider her representation dated 27.12.2021. This petition was disposed of by this Court vide an order dated 01.09.2022, directing the Regional Manager, State Bank of India, Gorakhpur to decide the petitioner's representation and also look into her grievance about the non-payment of ex gratia in terms of the claim. It was also ordered that the ex gratia, found due to the petitioner, be paid to her within a period of six weeks from the date a certified copy of the order was produced before the Bank. In compliance with the orders passed by this Court, the respondent Bank paid the petitioner's ex gratia on 01.09.2022, the sum of money paid being Rs.7 lacs. The petitioner expected that the payment made, being one after a long lapse of time, would carry interest, but that was not paid.
5. It is the petitioner's case that the respondent Bank officials, despite knowledge of the fact that her husband had died in harness in the year 2007, did not choose to pay her the ex gratia, to which she was then entitled under the relevant scheme. It is also asserted on behalf of the petitioner that after moving an application for the payment of ex gratia on 19.12.2011, the said sum of money was paid by the Bank on 19.11.2022, to wit, after a lapse of 11 years. It is the petitioner's case that though she is entitled to the payment of ex gratia on account of her husband's demise in harness that payment was withheld for more than a decade, due to lethargy and inaction of the respondents in breach of their duty.
6. The petitioner, after receipt of the ex gratia, moved an application on 06.12.2022, followed by another dated 17,12,2022, requesting payme
Timeliness of applications under compassionate appointment schemes is crucial; late submissions may lead to dismissal.
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....
The main legal point established in the judgment is the entitlement to interest for the delay in payment of ex-gratia compensation, based on the principle of awarding interest when there is no specif....
The main legal point established in the judgment is that the scheme in force at the time of the employee's death is applicable for compassionate appointment, and the conditions stipulated in the sche....
Compassionate appointment cannot be claimed as a right and must adhere to the governing scheme, especially after an ex-gratia payment has been received.
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