Case Note & Summary
The matter arose from a writ petition filed by four identically placed persons whose appointments on compassionate basis in a Regional Rural Bank were terminated by orders dated 12 March 2020. Petitioner No.1 was the widow of a deceased Office Assistant Class-III who died in harness on 22 January 2017, leaving two children. Petitioner No.2 was the elder son of a deceased Messenger Class-IV who died on 7 July 2015, survived by two sons. Petitioner No.3 was the son of a deceased Messenger Class-IV who died on 12 November 2017, leaving a widow and two children. Petitioner No.4 was the son of a deceased Office Assistant Class-III who died on 27 January 2018, survived by a widow and son. All four were appointed by identical orders dated 4 September 2019 on compassionate basis under the bank's scheme. The bank issued identical office orders on 12 March 2020 terminating the compassionate appointments on the ground that the scheme providing for compassionate appointments was adopted by the Board of Directors on 27 February 2019, and since the deaths of the bread earners occurred prior to that date, the appointments were irregular. After termination, the petitioners were continued in temporary employment through an outsourcing agency as contract labour. The core legal issue was whether the compassionate appointment scheme adopted by the bank effective 27 February 2019 covered dependent family members of employees who died in service before that date. The bank contended that because the deaths occurred prior to the Board's adoption, the petitioners were not eligible and that the oversight was noticed within six months. The petitioners sought quashing of termination and reinstatement. The High Court examined the scheme's Circular and Coverage Clause 1.1, which provided that a dependent family member of a permanent employee of the bank who dies while in service on or after 5 August 2014 was eligible; it also included death by suicide and medical retirement. Clause 2 defined dependent family members to include spouse, wholly dependent son or daughter, and wholly dependent brother/sister for unmarried employees. The Government of India had approved the scheme on 5 December 2014 to be applied to all public sector banks and Regional Rural Banks, with options of compassionate appointment or lump-sum ex gratia. The Court held that the Coverage Clause was clear and left no scope for ambiguity. The scheme covered dependent family members whose sole bread earner had died in service on or after 5 August 2014, including suicide. The bank had consciously not altered the Coverage Clause while adopting the scheme under the Government of India's approval. Therefore, the petitioners were rightly appointed. The impugned termination orders were cryptic and issued without applying mind to the Coverage Clause. The petition was allowed in terms of prayer clause (B); termination orders were quashed; the bank was directed to reinstate the petitioners expeditiously and preferably within two weeks. However, the petitioners were not entitled to back wages from the date they had been deployed through the outsourcing agency until reinstatement, but notional continuity of service was granted with no break in service. The bank was also asked to consider the prayer for unpaid salary within four weeks unless there was any legal impediment. Rule was made absolute.
Headnote
A) Service Law - Compassionate Appointment - Coverage Clause Interpretation - Maharashtra Gramin Bank Compassionate Appointment Scheme, Clause 1.1 - The scheme covered dependent family members of permanent employees who died in service on or after 5th August 2014, including death by suicide, and retirement on medical grounds due to incapacitation before age 55; the bank could not deny coverage on the ground that the Board adopted the scheme on 27th February 2019; Held that the coverage clause was clear and the petitioners were rightly appointed (Paras 9-12). B) Administrative Law - Termination of Compassionate Appointments - Application of Mind - Maharashtra Gramin Bank Compassionate Appointment Scheme, Clause 1.1 - The impugned termination orders dated 12.03.2020 were cryptic and issued without applying mind to the Coverage Clause; since the bank consciously did not alter the Coverage Clause and adopted the scheme under Government of India approval dated 05.12.2014, the termination was quashed; Held that the termination orders were invalid and the appointments were regular (Paras 12-13). C) Service Law - Reinstatement and Back Wages - Relief on Quashing of Termination - Maharashtra Gramin Bank Compassionate Appointment Scheme, Clause 1.1 and Clause 2 - The court allowed the petition in terms of prayer clause (B), directed reinstatement preferably within two weeks, granted notional continuity of service without break, denied back wages from the period deployed through an outsourcing agency till reinstatement, and directed the bank to consider unpaid salary within four weeks unless legal impediment; Held that petitioners were not entitled to back wages for the outsourcing period but were entitled to reinstatement with continuity (Paras 13-15).
Issue of Consideration
Whether the compassionate appointment scheme adopted by Maharashtra Gramin Bank with effect from 27.02.2019 covered dependent family members of employees who died in service before that date but on or after 05.08.2014; and whether the impugned termination orders were valid.
Final Decision
Petition allowed in terms of prayer clause (B); termination orders quashed; respondents directed to reinstate petitioners expeditiously preferably within two weeks; no back wages from date deployed through outsourcing agency till reinstatement; notional continuity of service granted; respondents to consider unpaid salary within four weeks unless legal impediment. Rule made absolute.
Law Points
- Compassionate appointment scheme covers deaths from 5 August 2014
- coverage clause applies irrespective of later adoption date
- termination orders must show application of mind
- notional continuity on reinstatement
- no back wages for outsourcing period
