Case Note & Summary
The dispute arose from the rejection of a compassionate appointment request by the State Bank of India for the son of a deceased employee, Zile Singh, who died while in service. The respondent's mother applied for the appointment, but the Bank found that the family's financial condition was adequate, as they had a net surplus from terminal benefits and additional income from agricultural land. The Punjab and Haryana High Court directed the Bank to reconsider the application, stating that the family's income was insufficient to avoid penury. The Bank appealed this decision, arguing that the High Court erred in its assessment and that the compassionate appointment scheme required a clear demonstration of financial need. The Supreme Court analyzed the legal framework surrounding compassionate appointments, emphasizing that such appointments are exceptions to standard recruitment practices and must adhere strictly to the employer's scheme. The court found that the Bank had correctly considered all relevant financial factors, including family pension and agricultural income, concluding that the family was not left without means of livelihood. The Supreme Court ultimately allowed the appeal, setting aside the High Court's order and reaffirming the Bank's decision not to grant the compassionate appointment.
Headnote
A) Employment Law - Compassionate Appointment - Criteria for Eligibility - Constitution of India, Article 16 - The court held that compassionate appointments are exceptions to the general rule of recruitment based on merit and transparency, and must be justified by the financial condition of the family. The appellant-Bank's assessment that the family was not in penury was upheld, rejecting the High Court's contrary direction (Paras 1-4).
Issue of Consideration
Whether the rejection of the respondent's application for compassionate appointment was justified based on the financial condition of the family.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's order, and upheld the Bank's decision not to grant compassionate appointment based on the financial assessment.
Law Points
- Compassionate appointment
- financial condition assessment
- employment rights
- public service recruitment
- scheme compliance

