Reportable

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 1641 OF 2010

[Arising out of SLP(C) No.28370 of 2008]

STATE BANK OF INDIA & ANR.

… APPELLANTS

VS.

RAJ KUMAR

… RESPNDENT

O R D E R

R.V.RAVEENDRAN, J.

Leave granted. Heard the parties.

2.

The respondent's father employed as a Messenger in

the Appellant Bank, died on 1.10.2004. Respondent’s mother

made applications dated 6.6.2005 and 14.6.2005 requesting

for his appointment on compassionate grounds. When the

applications were being processed and verified, the

compassionate appointment scheme was substituted by the

“SBI Scheme for payment of ex-gratia Lumpsum Amount” with

effect from 4.8.2005. The new scheme abolished the old

scheme for compassionate appointments and instead provided

for payment of an ex gratia lumpsum amount as per its

terms. Clauses 14 and 15 of the new scheme relevant for

our purpose are extracted below:

“14.

Date of effect of the

Scheme and disposal of pending applications:

……….Applications

pending

under

the

Compassionate Appointment Scheme as on the

date on which this new Scheme is approved by

the Executive Committee of the Central Board

will be dealt with in accordance with the

new Scheme for payment of ex-gratia lumpsum

amount provided they fulfill all the terms

and conditions of this Scheme.

15.

Miscellaneous provisions of the Scheme

x x x x x x x x x

vi. With effect from the date the “SBI

Scheme for Payment of Ex-gratia Lumpsum

Amount” comes into force the Bank’s scheme

of compassionate appointments shall be

deemed abolished/withdrawn and no request

for compassionate appointment shall be

entertained or considered by the Bank under

any circumstance.”

3.

As the old scheme came to be abolished and

compassionate appointment was no longer permissible after

the new scheme came into force, the Bank on 31.1.2006

advised the family of the deceased to make an application

under the new scheme for ex-gratia payment. Feeling

aggrieved, the respondent filed a writ petition before the

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Allahabad High Court. A learned single Judge of the High

Court by order dated 8.5.2008 directed the appellant to

reconsider the case of the respondent for appointment on

compassionate grounds, holding that the old scheme applied

and the new scheme was only prospective in operation. The

said order was affirmed by the Division Bench by order

dated 1.9.2008, which is under challenge in this appeal by

special leave.

4.

Learned counsel for the Bank submitted that even

though the respondent's father died on 1.10.2004, the

application for compassionate appointment was made only in

June 2005; that before the application could be processed,

the compassionate appointment scheme was abolished and was

replaced by a new scheme on 4.8.2005; and that therefore,

the Bank was justified in calling upon the respondent to

apply under the new ex-gratia scheme.

5.

On the other hand, learned counsel for the

respondent submitted that on the date of death of his

father and on the date of making the application, the

compassionate appointment scheme was in force and

therefore, he was entitled to be considered for

compassionate appointment under the said scheme.

6.

It is now well settled that appointment on

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compassionate grounds is not a source of recruitment. On

the other hand it is an exception to the general rule that

recruitment to public services should be on the basis of

merit, by an open invitation providing equal opportunity

to all eligible persons to participate in the selection

process. The dependants of employees, who die in harness,

do not have any special claim or right to employment,

except by way of the concession that may be extended by

the employer under the Rules or by a separate sc