Bombay High Court Allows Compassionate Appointment Claim Despite Merger of Banks — Canara Bank Directed to Consider Application on Merits. The court held that the merger of Syndicate Bank with Canara Bank does not extinguish the right to compassionate appointment accrued to the petitioner, and the application must be considered under the scheme prevalent at the time of death.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The petitioner, Ashwin Gourishankar Kokodde, filed a writ petition before the Bombay High Court at Nagpur Bench, seeking appointment on compassionate grounds after the death of his father, Gaurishankar Domaji Kokade, a Class IV employee of Syndicate Bank, who died in harness on 04.03.2019. The petitioner submitted an application dated 18.08.2019 to the Branch Manager, which was forwarded with positive recommendation on 19.08.2019. However, the application was kept pending and not decided. Subsequently, Syndicate Bank merged with Canara Bank with effect from 01.04.2020. The petitioner's application was rejected by Canara Bank on the ground that the compassionate appointment scheme of Canara Bank did not provide for such appointments. The petitioner challenged this rejection. The court considered the issue of whether the merger of banks extinguishes the right to compassionate appointment. The court held that the application must be considered in accordance with the scheme prevalent at the time of the employee's death, and the merger does not affect the accrued right. The court directed Canara Bank to consider the petitioner's application on its own merits and in accordance with the scheme of Syndicate Bank as it existed at the time of death. The writ petition was allowed with the direction to decide the application within eight weeks.

Headnote

A) Service Law - Compassionate Appointment - Merger of Banks - The petitioner's father died in harness while employed with Syndicate Bank. The petitioner applied for compassionate appointment before the merger. The application was kept pending and not decided. After merger with Canara Bank, the application was rejected on the ground that the scheme of the transferee bank did not provide for compassionate appointment. The court held that the application must be considered in accordance with the scheme prevalent at the time of death, and the merger does not extinguish the right. (Paras 1-10)

B) Constitutional Law - Right to Livelihood - Article 21 - Compassionate appointment is a measure to provide immediate financial assistance to the family of a deceased employee. The court emphasized that the object of compassionate appointment is to relieve the family from financial distress. (Para 8)

C) Interpretation of Statutes - Merger of Banks - The court held that the merger of Syndicate Bank with Canara Bank does not affect the rights accrued to the petitioner. The successor bank is bound to consider the application in accordance with the scheme of the predecessor bank. (Para 9)

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Issue of Consideration

Whether the petitioner is entitled to compassionate appointment after the merger of Syndicate Bank with Canara Bank, and whether the application submitted prior to merger must be considered by the successor bank.

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Final Decision

The writ petition is allowed. The respondents are directed to consider the petitioner's application for compassionate appointment on its own merits and in accordance with the scheme of Syndicate Bank as it existed at the time of death of the employee, within eight weeks from the date of the order.

Law Points

  • Compassionate appointment
  • Merger of banks
  • Consideration of application
  • Locus standi
  • Writ jurisdiction
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Case Details

2023 LawText (BOM) (04) 120

Writ Petition No.3512 of 2022

2023-04-26

Rohit B. Deo, Mrs. Vrushali V. Joshi

Mr. M.V. Samarth, Sr. Adv. with Mr. V.P. Ingle, Mr. R.M. Fating for petitioner; Ms. Neerja G. Chaubey for respondent 1; Mr. M.Y. Wadodkar for respondent 5

Ashwin Gourishankar Kokodde

Union of India, Chairman-Cum-Managing Director Canara Bank, Deputy General Manager Canara Bank, Assistant General Manager Canara Bank, Senior Branch Manager Canara Bank

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Nature of Litigation

Writ petition seeking direction for compassionate appointment

Remedy Sought

Petitioner seeks appointment on compassionate grounds after father's death in harness

Filing Reason

Application for compassionate appointment was rejected by Canara Bank after merger with Syndicate Bank

Previous Decisions

Application was kept pending by Syndicate Bank and later rejected by Canara Bank

Issues

Whether the petitioner is entitled to compassionate appointment after the merger of Syndicate Bank with Canara Bank? Whether the application submitted prior to merger must be considered by the successor bank?

Submissions/Arguments

Petitioner argued that the application was made before merger and should be considered under Syndicate Bank scheme Respondents argued that after merger, Canara Bank's scheme does not provide for compassionate appointment

Ratio Decidendi

The merger of banks does not extinguish the right to compassionate appointment accrued to the dependant of a deceased employee. The application must be considered under the scheme prevalent at the time of death.

Judgment Excerpts

The grievance of the petitioner is that he is refused appointment on compassionate grounds. The father of the petitioner died in harness on 04.03.2019. The application was forwarded by the Branch Manager with positive recommendation. The Syndicate Bank kept the application in cold storage. The Syndicate Bank merged with Canara Bank with effect from 01.04.2020.

Procedural History

Petitioner's father died on 04.03.2019. Application for compassionate appointment submitted on 18.08.2019. Application forwarded with positive recommendation on 19.08.2019. Syndicate Bank merged with Canara Bank on 01.04.2020. Application rejected by Canara Bank. Writ petition filed in 2022. Heard and decided on 26.04.2023.

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