Indian Bank & Ors. v. Promila & Anr.
SANJAY KISHAN KAUL, J.
1. One Jagdish Raj, husband of respondent No.1 and father of
respondent No.2, was appointed as a Clerk-cum-Shroff in the appellant-
Bank, where he continued to work till his unfortuna te demise on
15.1.2004. He was drawing a gross monthly salary of Rs.16,486.60 at
the time of his demise. Consequent to his death, the benefits available
for the family of Jagdish Raj were calculated and sanctioned to the tune
of Rs.5,45,872, but on account of deductions for staff housing and vehicle
loans, post adjustment, a net payment of Rs.2,99,672 was made to the
family, apart from the grant of a monthly pension of Rs.5,574.12. A n
issue has been raised about the amount being paid less to the family of
Jagdish Raj, but that has really not been debated before us.
2. Late Shri Jagdish Raj was survived by his wife and three minor
children. As it transpires, respondent No.1 was already employed and
earning a salary at the time of the demise of her hu sband, which
information came to the knowledge of the appellant-Bank, later. The
cause for the present dispute arises from an application made on behalf
of the son (respondent No.2 herein) seeking compassionate employment
on account of demise of Shri Jagdish Raj. We may add at the threshold
that this application was made on 24.1.2004, on which date the son was
a minor. Needless to say that any such request for co mpassionate
employment had to be in terms of the prevalent scheme at t hat time.
There has been some confusion as to the scheme applicable and, thus,
this Court directed the scheme prevalent, on the date of the death, to be
placed before this Court for consideration, as the High Court appears to
have dealt with a scheme which was of a subsequent date. The need
INDIAN BANK & ORS. v. PROMILA & ANR.
for this also arose on account of the legal position being settled by the
judgment of this Court in Canara Bank & Anr. v. M. Mahesh
Kumar,1qua what would be the cut-off date for application of such
scheme. It is trite to emphasise, based on numerou s judicial
pronouncements of this Court, that compassionate appointment is not an
alternative to the normal course of appointment, and that ther e is no
inherent right to seek compassionate appointment. The objective is only
to provide solace and succour to the family in difficult times and, thus,
the relevancy is at that stage of time when the employee passes away.
An aspect examined by this judgment is as to whether a cl aim for
compassionate employment under a scheme of a particular year could
be decided based on a subsequent scheme that came into force m uch
after the claim. The answer to this has been emphatically in the negative.
It has also been observed that the grant of family pension and payment
of terminal benefits cannot be treated as a substitu te for providing
employment assistance. The crucial aspect is to turn to the scheme
itself to consider as to what are the provisions made in the s cheme for
such compassionate appointment.
3. On the relevant scheme being placed before us, what emerges
is that vide Circular No.56/79, a scheme was brought into force for
compassionate appointment on 4.4.1979. This is the scheme which was
applicable on 15.1.2004, i.e. on the date of the death of Shri Jagdish Raj.
A provision was made for compassionate appointment, but subject to
the terms & conditions of the scheme. Para 7 of the scheme reads as
under:
“7. According to an agreement with the Union, the dependant will
either be paid gratuity as if the deceased employee has served
the full term of service, which will be calculated as per g ratuity
rules on the basis of his/her last drawn pay at the time of his/her
death or given the option for appropriate employment for one
dependent subject to the rules framed for appointment u nder
compassionate grounds. It is therefore, obvious that appointments
under compassionate grounds will be open only to dependents
who do not opt for payment of gratuity for the full term of service
of the employee who died while in service. ”
The aforesaid paragraph, thus, makes it clear that either gratuity
or compassionate appointment can be availed of by the dependent s.
1 (2015) 7 SCC 412
413
The result is that if the dependents opted for payment of gratuity for the
term of service of the employee who died while in s ervice, no
compassionate appointment could be granted. The admitted position is
that the benefit of gratuity was availed of by the dependents in the present
case.
4. Another relevant paragraph of the scheme is para 8, w hich
reads as under:
“8. No person or dependent can claim, as a matter of right,
employment in the Bank under this Scheme and appointments
will be considered purely at the sole discretion of the Bank. The
Bank reserves to itself the right to modify, suspend, or withdraw
the scheme at any time at its sole discretion and the Bank’s decision
in this regard will be final and cannot be called in question.”
The aforesaid paragraph makes the consideration for appointment
on compassionate grounds at the discretion of the Bank, and not as a
matter of right. This really only emphasizes the settled position of law,
discussed aforesaid.
5. A new Scheme was promulgated on 5.11.1985, but para 4 of
the Scheme clarifies as under:
“the norms prescribed under scheme for appointment in the Bank
of a dependent of a confirmed employee who dies while in service
remains unchanged.”
Thus, though this may be a new Scheme, it, in effect, continued
the older Scheme, and that is the reason the terms of that Scheme applied
on the date of death of Shri Jagdish Raj, on 15.1.2004.
6. The first communication was addressed by respondent No.1,
on 24.1.2004, to the CMD of the appellant-Bank, seeking compassionate
appointment for her son, respondent No.2. The aforesaid arrangement,
thus being applicable even at that time.
7. A development post the demise, and this application, was a
new Scheme being brought into force through a Board meeting of the
appellant-Bank w.e.f. 27.4.2004, by way of Circular No. PRNL/09/2004-
05, in supersession of the previous Scheme. However, the qualification
for such Scheme was the death of an employee on account of inju ry
sustained while performing official duty, with a second condition that the
INDIAN BANK & ORS. v. PROMILA & ANR.
[SANJAY KISHAN KAUL, J.]
monthly income of the family (including terminal benefits, insurance claims,
investments, etc. as well as pension and spousal income) was less than
60% of the last drawn gross salary, net of taxes, o f the deceased
employee and that the application for such compassionate appointment
had to be submitted within three (3) months from the demi se of such
deceased employee. There was also an option to provide ex gratia
compensation with the same second qualification as aforesai d, if such
application is made within three (3) months from the demise of the
deceased employee. The Scheme also refers to a lumpsum compensation,
even where this 60% bar is crossed, and for Clerks like Shri Jagdish Raj,
the amount specified is Rs.2 lakh.
8. The appellant-Bank, thus, in response to the application for
compassionate appointment, sent a communication to respondent No.1,
asking her to submit a fresh application under the new Scheme within a
month, i.e., by 9.8.2004. The intent, really, was that only cash
compensation could be made available. This period, for te ndering an
application seeking cash compensation, was further extended repeatedly,
but it appears that the respondents did not apply for the sam e as they
appeared to be only interested in compassionate appointment.
9. A Circular No. PRNL/72/2005-06 dated 30.8.2005 was issued
whereby the benefit of compassionate appointment was denie d to a
dependent of an employee who died in harness. Thus, only cash
compensation was the benefit which would accrue. The norm of 60%
eligibility criterion was still made applicable and the application had to be
preferred within six (6) months from demise. This Scheme came into
force from 10.8.2005.
10. Respondent No.1 made available her gross salary declaration
of Rs.15,912 only on 17.2.2006, which crossed the benchmark of 60%
and, thus, the respondents were informed vide letters dated 10.5.2006
and 30.6.2006 that even cash compensation was not available to t he
family, and that there could be no question of compassionate appointment.
11. It is in the aforesaid circumstances that the respondents filed
CWP No.17105/2006 on 27.10.2006, seeking considerat ion of
compassionate appointment under the 2004 Scheme, upon respondent
No.2 attaining age of majority. Ex gratia benefits, which were held
back, were also sought, along with interest.
415
12. The High Court of Punjab & Haryana vide impugned order
dated 11.8.2008, granted Rs.2 lakh ex gratia payment, while leaving it
open to the respondents to make an appropriate applicati on regarding
any terminal benefits, if not paid. This Rs.2 lakh benefit is in consonance
with the subsequent Schemes of 2004 and 2005 which had come into
force, and appears to have been so done more out of sympathy than any
other factor.
13. The appellant-Bank aggrieved by this order filed a Speci al
Leave Petition and interim order of stay was granted on 16.1.2009. Leave
was granted subsequently and the interim order was made absolute.
14. We have examined the aforesaid factual matrix an d the
contentions raised by learned counsel for the parties.
15. The question of applicability of any subsequent Scheme really
does not apply in view of the judgment of this Court in Canara Bank 2.
Thus, it would not be appropriate to examine the case of the respondents
in the context of subsequent Schemes, but only in the context of t he
Scheme of 4.4.1979, the terms of which continued to be applicable even
as per the new Scheme of 5.11.1985, i.e. the Scheme applicable to the
respondents. There is no provision in this Scheme for any ex gratia
payment. The option of compassionate appointment was available only
if the full amount of gratuity was not taken, something which was done.
Thus, having taken the full amount of gratuity, the option of compassionate
appointment really was not available to the respondents.
16. We may also notice that though the subsequent Schemes were
not applicable, even if benefit was sought to be given of those Schemes,
initial non-disclosure and subsequent disclosure by respondent No.1, of
her employment and her emoluments would disentitle her under those
Schemes, too. Thus, when the appellant was calling upon the respondents
to apply under the subsequent Schemes, that could have been beneficial
to the respondents only if they were entitled to any of the benefits under
that Scheme. That could not happen because the benchmark provided
in those subsequent Schemes took the emoluments of res pondents
beyond the prescribed limit, so as to disentitle th em from both,
compassionate employment and ex gratia payment.
17. We have to keep in mind the basic principles applicable to the
cases of compassionate employment, i.e., succor being provided at the
2 (supra)
INDIAN BANK & ORS. v. PROMILA & ANR.
[SANJAY KISHAN KAUL, J.]
stage of unfortunate demise, coupled with compassionate employment
not being an alternate method of public employment. If the se factors
are kept in mind, it would be noticed that the responde nts had the
wherewithal at the relevant stage of time, as per the norms, to deal with
the unfortunate situation which they were faced with. Thus, looked
under any Schemes, the respondents cannot claim benefit, t hough, as
clarified aforesaid, it is only the relevant Scheme prevalent on the date
of demise of the employee, which could have been considered to b e
applicable, in view of the judgment of this Court in Canara Bank 3. It is
not for the Courts to substitute a Scheme or add or subtract from the
terms thereof in judicial review, as has been recently emphasized by this
Court in State of Himachal Pradesh & Anr. v. Parkash Chand 4.
18. We may have sympathy with the respondents about the
predicament they faced on the demise of Shri Jagdish Raj , but then
sympathy alone cannot give remedy to the respondents, more so when
the relevant benefits available to the respondents have been granted by
the appellant-Bank and when respondent No.1, hersel f, was in
employment having monthly income above the benchmark.
19. We have, thus, no option but to reluctantly set asi de the
impugned order and dismiss the writ petition originally file d by the
respondents.
20. The appeal is accordingly allowed, leaving the parties to bear
their own costs.
3 (supra)
4 (2019) 4 SCC 285
Divya Pandey Appeal allowed.