Supreme Court Upholds Regulation Barring Compassionate Appointment for Dependents Who Claim Compensation from Corporation in Vehicle Accidents Involving Corporation's Own Vehicle. The Court held that Regulation 4(3) of the Rajasthan State Road Transport Corporation Compassionate Appointment Regulations, 2010 is not violative of Article 14 as it creates a reasonable classification to avoid double burden on the Corporation.

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Case Note & Summary

The Rajasthan State Road Transport Corporation (Corporation) appealed against the Rajasthan High Court's judgment declaring Regulation 4(3) of the Rajasthan State Road Transport Corporation Compassionate Appointment Regulations, 2010 as violative of Article 14 of the Constitution. The respondent, Danish Khan, son of deceased employee Mohd. Shahid, sought compassionate appointment after his father died in a motor accident while travelling in a Corporation bus. The respondent had already claimed and received compensation under the Motor Vehicles Act, 1988 from the Motor Accident Claim Tribunal. The Corporation rejected his compassionate appointment application citing Regulation 4(3), which bars dependents from claiming both compensation under the Act and compassionate appointment when the death occurs in a Corporation-owned vehicle. The High Court struck down the regulation as discriminatory, holding that dependents of employees who die in accidents involving Corporation vehicles are treated differently from those who die in accidents involving non-Corporation vehicles, who can claim both compensation from third parties and compassionate appointment from the Corporation. The Supreme Court reversed the High Court's decision. The Court held that the two categories of dependents are not similarly situated because in one case the Corporation is liable to pay compensation under the Act, while in the other it is not. The classification is based on an intelligible differentia and has a rational nexus with the object of avoiding double burden on the Corporation. The Court relied on National Insurance Company Limited v. Rekhaben and Others, which held that salary from compassionate appointment provided by the tortfeasor can be deducted from compensation. The Court concluded that Regulation 4(3) is not discriminatory and is valid under Article 14. Consequently, the respondent, having received compensation, is not entitled to compassionate appointment. The appeals were allowed, setting aside the High Court's judgment.

Headnote

A) Constitutional Law - Article 14 - Reasonable Classification - Regulation 4(3) of the Rajasthan State Road Transport Corporation Compassionate Appointment Regulations, 2010 creates two classes of dependents: those whose employee died in a Corporation-owned vehicle and those whose employee died in a non-Corporation vehicle. The classification is based on an intelligible differentia and has a rational nexus with the object of avoiding double burden on the Corporation. Held, Regulation 4(3) is not violative of Article 14 (Paras 7-11).

B) Service Law - Compassionate Appointment - Motor Vehicles Act, 1988 - Sections 166, 140 - Regulation 4(3) of the Rajasthan State Road Transport Corporation Compassionate Appointment Regulations, 2010 disentitles dependents of a deceased employee from claiming both compensation under the Motor Vehicles Act and compassionate appointment from the Corporation when the accident involves a Corporation-owned vehicle. The Corporation cannot be subjected to dual liability. Held, the dependents who claim compensation from the Corporation cannot also claim compassionate appointment (Paras 6, 12).

C) Motor Vehicles Act, 1988 - Compensation - Deduction of Salary from Compassionate Appointment - National Insurance Company Limited v. Rekhaben and Others, (2017) 13 SCC 547 - Salary earned from compassionate appointment provided by the tortfeasor (employer who is owner of offending vehicle) can be deducted from compensation payable under the Act. This supports the rationale that the Corporation should not bear both liabilities (Para 10).

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Issue of Consideration

Whether Regulation 4(3) of the Rajasthan State Road Transport Corporation Compassionate Appointment Regulations, 2010 is discriminatory and violative of Article 14 of the Constitution of India

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Final Decision

The Supreme Court allowed the appeals, set aside the High Court's judgment, and held that Regulation 4(3) of the Rajasthan State Road Transport Corporation Compassionate Appointment Regulations, 2010 is not violative of Article 14 of the Constitution. The respondent, having received compensation under the Motor Vehicles Act, is not entitled to compassionate appointment.

Law Points

  • Article 14 permits reasonable classification
  • intelligible differentia
  • rational nexus
  • compassionate appointment and motor accident compensation cannot be claimed simultaneously from same employer
  • Regulation 4(3) of Rajasthan State Road Transport Corporation Compassionate Appointment Regulations
  • 2010 is valid
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Case Details

2019 LawText (SC) (10) 1

Civil Appeal No. 7802 of 2019 (Arising out of SLP (C) No.4772 of 2017) and Civil Appeal No. 7803 of 2019 (Arising out of SLP (C) No.13139 of 2017)

2019-10-04

L. Nageswara Rao, Hemant Gupta

Rajasthan State Road Transport Corporation

Danish Khan

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Nature of Litigation

Civil Appeal against High Court judgment declaring Regulation 4(3) of the Rajasthan State Road Transport Corporation Compassionate Appointment Regulations, 2010 as unconstitutional

Remedy Sought

Appellant Corporation sought reversal of High Court's declaration that Regulation 4(3) is violative of Article 14

Filing Reason

The Corporation challenged the High Court's judgment that struck down Regulation 4(3) as discriminatory

Previous Decisions

Rajasthan High Court allowed the writ petition and declared Regulation 4(3) unconstitutional

Issues

Whether Regulation 4(3) of the Rajasthan State Road Transport Corporation Compassionate Appointment Regulations, 2010 is discriminatory and violative of Article 14 of the Constitution of India

Submissions/Arguments

Appellant Corporation argued that Regulation 4(3) creates a reasonable classification to avoid double burden of compensation and compassionate appointment when the Corporation is liable under the Motor Vehicles Act Respondent argued that the regulation discriminates between dependents of employees who die in Corporation-owned vehicles and those who die in non-Corporation vehicles

Ratio Decidendi

Regulation 4(3) of the Rajasthan State Road Transport Corporation Compassionate Appointment Regulations, 2010 is valid under Article 14 as it creates a reasonable classification based on an intelligible differentia (whether the Corporation is liable to pay compensation under the Motor Vehicles Act) which has a rational nexus with the object of avoiding double burden on the Corporation. Dependents of employees who die in Corporation-owned vehicles and claim compensation from the Corporation are not similarly situated to those who die in non-Corporation vehicles and claim compensation from third parties.

Judgment Excerpts

The Corporation has carved out two classes of dependents of the deceased employees in respect of claims for compassionate appointment. The reason for the disqualification of the dependents of an employee who died in an accident involving the vehicle of the Corporation is to avoid extra burden on the Appellant-Corporation. It is well-settled that though Article 14 forbids class legislation, it does not forbid reasonable classification for the purposes of legislation. The two categories of dependents i.e. dependents of employees who have died in an accident while travelling in a vehicle belonging to the Corporation and dependents of the employees who died while travelling in a vehicle not belonging to the Corporation are not similarly situated in respect of their claims against the Corporation.

Procedural History

The respondent's father died in a motor accident while travelling in a Corporation bus. The respondent claimed and received compensation under the Motor Vehicles Act from the Motor Accident Claim Tribunal. The respondent then sought compassionate appointment, which was rejected by the Corporation under Regulation 4(3). The respondent filed a writ petition in the Rajasthan High Court challenging the regulation. The High Court allowed the writ petition and declared Regulation 4(3) unconstitutional. The Corporation appealed to the Supreme Court.

Acts & Sections

  • Constitution of India: Article 14
  • Motor Vehicles Act, 1988: Section 166, Section 140
  • Rajasthan State Road Transport Corporation Compassionate Appointment Regulations, 2010: Regulation 4(3)
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