Case Note & Summary
The appeal arose from a judgment of the Bombay High Court (Nagpur Bench) dismissing a writ petition filed by the appellants, who sought compassionate appointment with The New India Assurance Company Limited. The appellant No.2, Ramnarayan Mahadeo Madankar, an employee of the respondent-company, applied for voluntary retirement on medical grounds before attaining the age of 55 years, accompanied by a certificate from the Civil Surgeon certifying permanent incapacitation. The respondent-company did not reject the certificate or call for a Medical Board certificate before the employee crossed 55 years. After the employee crossed 55 years, the company called for a Medical Board certificate and then rejected the appellant No.1's claim for compassionate appointment on the ground that the employee had retired after completing 55 years. The High Court upheld the rejection. The Supreme Court framed the issue as whether the employer could delay processing the application and then rely on the age threshold to deny the claim. The Court held that the employer cannot take advantage of its own delay. The Court allowed the appeal, set aside the High Court's judgment, and directed the respondent-company to consider the appellant No.1's claim for compassionate appointment in accordance with the Scheme, without reference to the age threshold.
Headnote
A) Compassionate Appointment - Medical Retirement - Age Threshold - Employer's Delay - The issue was whether the employer could delay processing a medical retirement application submitted before the employee crossed 55 years, and then deny compassionate appointment on the ground that the employee retired after completing 55 years. The Supreme Court held that the employer cannot take advantage of its own delay in processing the application to defeat the dependent's claim. The Court allowed the appeal and directed the respondent-company to consider the appellant No.1's claim for compassionate appointment in accordance with the Scheme. (Paras 2-4, 10-12) B) Compassionate Appointment - Scheme for Compassionate Appointment in Public Sector General Insurance Companies - Interpretation - The Scheme provides for compassionate appointment to a dependent of an employee who retires on medical grounds before attaining the age of 55 years. The Court held that the employer must act promptly on such applications and cannot sit over them to allow the age threshold to be crossed. (Paras 3-4, 10-12)
Issue of Consideration
Whether the respondent-company, after receiving a retirement application on medical ground before the employee crossed the age threshold, could keep the application pending, communicate the deficiency only after the age threshold had crossed, and then rely upon that very consequence to deny the dependent’s claim for compassionate appointment.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and directed the respondent-company to consider the appellant No.1's claim for compassionate appointment in accordance with the Scheme, without reference to the age threshold.
Law Points
- Compassionate appointment
- Medical retirement
- Age threshold
- Delay by employer
- Estoppel
- Scheme for Compassionate Appointment in Public Sector General Insurance Companies
