Case Note & Summary
The case involves an appeal by Canara Bank against a judgment of the Kerala High Court that directed the bank to appoint the respondent, Ajithkumar G.K., on compassionate grounds and awarded compensation and costs. The respondent's father, an employee of Canara Bank, died in service on 20 December 2001 with only four months of service left. The respondent applied for compassionate appointment under the bank's 1993 scheme on 15 January 2002. The bank rejected the application on 30 October 2002 on grounds that the family received a family pension of Rs. 4,367.92 and terminal benefits of Rs. 3.09 lakhs, indicating no financial distress, and that the respondent was overage (26 years 8 months) for the post of Probationary Peon, with no relaxation of age being considered. The respondent filed a writ petition in 2003, which was allowed on 16 June 2015, directing the bank to reconsider the application in light of the 1993 scheme and Supreme Court decisions. The bank's Managing Director reconsidered and again rejected the claim on 8 September 2015, finding no indigent circumstances. The respondent filed a second writ petition, which was allowed by a Single Judge on 9 June 2016, setting aside the rejection and directing appointment within two months, along with compensation of Rs. 5 lakh. The bank's intra-court appeal was dismissed by a Division Bench on 4 November 2019, with exemplary costs of Rs. 5 lakh. The Supreme Court allowed the bank's appeal, holding that the High Court erred in substituting its own view on financial distress and in awarding compensation and costs. The Court set aside the directions for appointment, compensation, and costs, but directed the bank to reconsider the question of age relaxation in accordance with the 1993 scheme within two months.
Headnote
A) Service Law - Compassionate Appointment - Scheme of 1993 - Financial Distress - The primary criterion for compassionate appointment is the financial condition of the family of the deceased employee. Family pension and terminal benefits are relevant factors to assess whether the family is in penury. The court held that the appellant's finding of no acute financial distress was not perverse and could not be substituted by the High Court. (Paras 2, 6-8) B) Service Law - Compassionate Appointment - Age Relaxation - Discretionary Power - Age relaxation under the scheme is discretionary and can be considered only if the applicant is otherwise eligible for compassionate appointment. The court held that the appellant's refusal to consider age relaxation was justified as the applicant was not found eligible. (Paras 2, 6) C) Service Law - Compassionate Appointment - Applicable Scheme - The scheme in force on the date of death (1993 scheme) governs the application, not a subsequent scheme (2005 scheme) that discontinued compassionate appointments. The court noted that the 2005 scheme was not applicable. (Para 2) D) Service Law - Compensation and Costs - Award of Compensation - Compensation for delayed consideration of compassionate appointment is not warranted unless there is mala fides or perversity. The court set aside the compensation of Rs. 5 lakh and costs of Rs. 5 lakh awarded by the High Court. (Paras 7-8)
Issue of Consideration
Whether the High Court was justified in directing compassionate appointment and awarding compensation and costs despite the appellant's finding of no financial distress, and whether the scheme of 1993 or 2005 applies
Final Decision
Appeal allowed. The impugned judgment and order of the Division Bench dated 4 November 2019 and the judgment of the Single Judge dated 9 June 2016 are set aside. The appellant is directed to reconsider the question of relaxation of age in respect of the respondent in accordance with the 1993 scheme within two months from the date of this judgment. No order as to costs.
Law Points
- Compassionate appointment is not a vested right
- Family pension and terminal benefits are relevant factors
- Age relaxation is discretionary
- Compensation for delayed consideration is not warranted without mala fides
