Case Note & Summary
The dispute arose from the death of the respondent's father, an employee of the State Bank of India, on 1.10.2004, leading to the respondent's mother applying for compassionate appointment in June 2005. However, the compassionate appointment scheme was replaced by a new scheme for ex gratia payment on 4.8.2005, which abolished the old scheme. The Bank advised the family to apply under the new scheme, prompting the respondent to file a writ petition. The Allahabad High Court directed the Bank to reconsider the case under the old scheme, which the Bank contested. The court analyzed the nature of compassionate appointments, emphasizing that they are not a right but a concession, and that applications must be processed under the scheme in force at the time of consideration. The court referenced previous judgments to support its reasoning that the new scheme applied to pending applications. Ultimately, the Supreme Court set aside the High Court's orders, allowing the respondent to apply under the new scheme and directing the Bank to process such applications expeditiously.
Headnote
A) Employment Law - Compassionate Appointment - Applicability of Scheme - State Bank of India Act, 1955 - The court held that the new scheme for ex gratia payment applied to pending applications after the old scheme was abolished, and no right to compassionate appointment existed once the scheme was withdrawn. The respondent's application was made after the new scheme came into force, thus the new scheme governed the application (Paras 10-12).
Issue of Consideration
Whether the respondent was entitled to compassionate appointment under the old scheme after its abolition and replacement by a new scheme.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's orders, and directed that the respondent may file a fresh application under the new scheme, which the Bank must process within four months.
Law Points
- compassionate appointment
- ex gratia payment
- scheme applicability
- vested rights
- recruitment rules
Case Details
2010 LawText (SC) (02) 149
CIVIL APPEAL NO. 1641 OF 2010
R.V. RAVEENDRAN, K. S. RADHAKRISHNAN
STATE BANK OF INDIA & ANR.
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Nature of Litigation
Writ petition challenging the Bank's decision regarding compassionate appointment.
Remedy Sought
The respondent sought to be considered for compassionate appointment under the old scheme.
Filing Reason
The respondent's father died while in service, prompting the application for compassionate appointment.
Previous Decisions
The Allahabad High Court directed reconsideration under the old scheme, which was contested by the Bank.
Issues
Whether the respondent was entitled to compassionate appointment under the old scheme after its abolition.
Whether the new scheme for ex gratia payment applied to pending applications.
Submissions/Arguments
The Bank argued that the compassionate appointment scheme was abolished before the application was processed.
The respondent contended that the application was valid under the old scheme as it was in force at the time of his father's death.
Ratio Decidendi
The court held that compassionate appointments are not a right but a concession, and applications must be processed under the scheme in force at the time of consideration. The new scheme applied to pending applications after the old scheme was abolished.
Judgment Excerpts
The new scheme specifically provided that all pending applications will be considered under the new scheme.
Compassionate appointment is therefore traceable only to the scheme framed by the employer for such employment and there is no right whatsoever outside such scheme.
The mere fact that an application was made when the scheme was in force, will not by itself create a right in favour of the applicant.
Procedural History
The respondent's mother applied for compassionate appointment in June 2005 after the father's death in October 2004. The application was processed under the old scheme until it was replaced by the new scheme on 4.8.2005. The High Court directed reconsideration of the application under the old scheme, which was challenged by the Bank.
Acts & Sections
