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2017 DIGILAW 375 (CAL)

Pradip Singh v. State Bank of India

2017-04-10

RAKESH TIWARI, SHIVAKANT PRASAD

body2017
JUDGMENT : Shivakant Prasad, J. Pradip Singh, one of the appellants, preferred the writ petition under the scheme of Article 226 of the Constitution of India with the chronological events that the appellant no. 1's father, who was a Group-D staff of the respondent State Bank of India, had died on 13th January, 2006. The appellants applied for compassionate appointment on 7th September, 2006 which was not taken into consideration. 2. Then the appellants preferred the first writ petition, being W.P. 8408(W) of 2007 on 10th September, 2007 relying on a decision of National Confederation of Bank Employees for compassionate appointment. Subsequently, the scheme for appointment on compassionate ground was issued by the concerned bank authorities on 7th August, 2014. On the basis of that scheme, the appellants made a demand of justice on 8th July, 2015 by further submission of representation for appointment on compassionate ground. The said writ petition was dismissed by learned Single Judge. 3. By the impugned order dated 17th February, 2016, passed in W.P. 2501(W) of 2016, the Writ Court dismissed the writ petition on the ground that the petitioners had cited a wrong scheme seeking appointment on compassionate ground and they can no longer be entitled to seek such appointment under the said scheme. The State Bank of India, the respondent herein, had placed a scheme for compassionate appointment in exceptional circumstances and exgratia lumpsum payment in other cases. On behalf of the petitioners, a decision reported in (2014) 7 SCC 413 was referred to the Court in order to fortify their contention wherein the Supreme Court observed that an appointment on compassionate grounds must be given at the earliest or the entire purpose of granting an appointment on compassionate ground is lost. 4. In the present case, the appellants had applied for appointment on compassionate ground after the demise of the employee when the scheme for compassionate appointment was not available. The matter was mooted out by the Ministry of Finance by a letter dated 7th August, 2014, addressed to the Chairman, Indian Banks' Association, whereby revision of the Compassionate Appointment Scheme in Public Sector Banks (PBS) on examination of the proposal by the Ministry of Finance was done and it was decided to convey for approval of the Government on the proposal of IBA on the following points: "(1) To open the Compassionate Appointment in PSBs on the lines of Central Government. (2) Discontinuing the provision of ex-gratia in lieu of Compassionate Appointment in PSBs. 5. In response thereto, the Chairman of the State Bank of India vide letter dated 16th October, 2014, vide Annexure R-9, wrote to the Secretary, Financial Services, Ministry of Finance, detailed the factual aspects of the scheme of compassionate appointment which shows that the scheme of compassionate appointment always throws many unanticipated problems for the Bank and the dependent family members of the deceased employee as well. The Bank does not generally get desired quality employees who satisfy requirements of current working environment of the Bank. However, a proposal was made to continue two erstwhile schemes viz. (a) scheme for payment of ex-gratia lumpsum amount and (b) scheme for appointment of dependents of deceased employees on compassionate grounds in exceptional cases without going for compassionate appointment in other cases and further proposed to improve the compensation amount of ex-gratia with the approval of the Bank's Board. 6. The scheme for appointment on compassionate ground in exceptional cases was framed as under: (i) Employee dying while performing his official duty, as a result of violence, terrorism, robbery or dacoity. (ii) Employee dying within five years of his first appointment or before reaching the age of 30 years whichever is later, leaving a dependent spouse and/or minor children. 7. Obviously, this scheme of compassionate appointment in case of the appellants is not available as they do not fall within the parameter of the scheme aforesaid. However, the bank has a scheme for lumpsum ex-gratia payment. 8. Learned counsel for the respondents submits that in no case, the appellants are entitled to get appointment on compassionate ground under the existing scheme as the said scheme was not available when the appellants submitted their application for appointment on compassionate ground. It is settled principle of law that compassionate appointment cannot be claimed as a matter of right and the appellants may not have the legal right to get appointment on compassionate ground, however penury has to be taken into consideration while considering the appointment on compassionate ground. The appellants at the best may have their relief by way of payment of lumpsum exgratia as per the scheme famed by the State Bank of India, appearing at page 25. The appellants at the best may have their relief by way of payment of lumpsum exgratia as per the scheme famed by the State Bank of India, appearing at page 25. It would be profitable for us to reproduce the SBI Scheme for Payment of Ex-Gratia Lumpsum Amount which reads thus : "Dear Sir, 4th August, 2005 Srvn. 13, 1927(S) SBI SCHEME FOR PAYMENT OF EX-GRATIA LUMPSUM AMOUNT The Scheme for appointment of dependents of deceased employees was introduced in the Bank with effect from the 1st January, 1979. Amendments and modifications to the Scheme have been carried out from time to time on the basis of Government advices. Last amendments/modifications were made with the approval of ECCB on 24.01.2003 which was circulated vide circular letter no.CDO/PM/18/SPL/1900 dated 11.3.2003. In terms of the Scheme, Bank has been considering employment on compassionate grounds to the dependents of the employees dying while in service and also in the dependents of employees retiring on medical grounds provided they are below 55 years of age at the time of retirement. 2. This scheme for appointment of dependents of employees dying in harness/retired on medical grounds has been throwing up some unanticipated problems for the Bank as also for the dependent family members. While the Bank does not generally get employees who satisfy the requirements of working in computerised environment, many a time, the families of our deceased employees also do not get immediate support because the process of employment takes some time. In some cases, no dependent of the deceased employee is eligible to take up the job immediately and as such, there is no immediate support to the dependent family. 3. To overcome these problems, immediate monetary assistance in lieu of compassionate appointment may be the best alternative. The Executive Committee of the Central Board in its meeting held on 4th August, 2005 has approved a scheme for payment of ex-gratia lumpsum amount in lieu of appointment on compassionate grounds named as "SBI Scheme for Payment of Ex-Gratia Lumpsum Amount". The new Scheme has come into force with effect from today i.e. 4th August, 2005. This scheme will replace our existing Compassionate Appointment Scheme (referred in paragraph I above) and no request for compassionate appointment shall be entertained or considered by the Bank under any circumstance with effect from today i.e. 4th August, 2005. 4. The new Scheme has come into force with effect from today i.e. 4th August, 2005. This scheme will replace our existing Compassionate Appointment Scheme (referred in paragraph I above) and no request for compassionate appointment shall be entertained or considered by the Bank under any circumstance with effect from today i.e. 4th August, 2005. 4. We enclose, for your information and necessary action our scheme for payment of exgratia lumpsum amount named "SBI Scheme for Payment of Ex-Gratia Lumpsum Amount". The Scheme will be applicable in the following cases : (i) Employees dying in harness. (ii) Employees seeking premature retirement due to incapacitation before reaching the age of 55 years. Applications pending under the Compassionate Appointment Scheme as on the date will be dealt with in accordance with the new Scheme for payment of ex-gratia lumpsum amount provided they fulfil all the terms and conditions of this Scheme. In such cases, fresh application for payment of ex-gratia in lieu of compassionate appointment should be obtained on the format enclosed with our captioned Scheme. 5. The concerned Branch Manager/Department Head should counsel the spouse/dependent family member nominated by the family to receive the ex-gratia lumpsum amount to invest the same as Term Deposit/Special Term Deposit with the Bank or in any annuity scheme of SBI Life/SBI Mutual Fund. 6. Please arrange to submit the control return on monthly basis on the enclosed format (Annexure-A) along with a soft copy on floppy diskette for our necessary action. 7. Please arrange accordingly. Yours faithfully, For Dy. Managing Director & Corporate Development Officer. " 9. Learned counsel for the respondents submits that the format for ex-gratia payment in lumpsum has been provided and it was available to the appellants but the appellants never attended the bank to apply for such scheme and invites our attention to a letter dated 28th December, 2006, addressed to the appellants regarding payment of terminal benefits and payment of ex-gratia lumpsum amount vide Annexure R-4 to the affidavit, filed in compliance with the order dated 21st March, 2017 of this Court, which reflects that Assistant General Manager (Operations) that in spite of advice given, no application for payment of terminal benefits in connection with the termination of services of the deceased father of the appellant no. 1 on account of death on 13th January, 2006, was received by them. 1 on account of death on 13th January, 2006, was received by them. It was also informed by the said letter that the Bank has already withdrawn the provision for appointment on compassionate ground with effect from 4th August, 2005 and in lieu thereof payment of lumpsum ex-gratia has come into effect. This aspect has already been communicated to the appellants number of times and one of the officers of the bank had also called upon the appellants in 2006 for obtaining various application forms required to be submitted for payment of terminal benefits and ex-gratia but the appellants did not show any interest and did not apply. Accordingly, it was expressed that the terminal benefits and payment of lumpsum ex-gratia got lost due to loss of time. 10. Thus, we find in consideration of the totality of the materials placed on record and upon hearing learned counsel for the parties that the appellants have no legal right to seek appointment on compassionate ground on account of demise of the employee, being the father of the appellant no. 1 and they have also lost the opportunity for seeking lumpsum ex-gratia payment, which now we propose to the appellants and accordingly we are of the view that ex-gratia payment as per the scheme framed by the State Bank of India, may be extended to the relief of the appellants herein. 11. The format for payment of lumpsum ex-gratia has been annexed, which provides for furnishing information. Learned counsel for the appellants points out that in the application for recommendation for appointment on compassionate ground of dependants of deceased employees, information is to be furnished with regard to the financial condition of the family, monthly income of the family from all sources and the particulars of dependants of the deceased employee. Based on those information, payment of lumpsum ex-gratia can be made to the appellants but we find that the Bank has got a specific format for consideration of payment of lumpsum ex-gratia under the scheme. It is imperative for the appellants to furnish information as per the format for payment of ex-gratia which is Annexure R-1 at page 41 of the affidavit of compliance furnished by the respondent State Bank of India. 12. It is imperative for the appellants to furnish information as per the format for payment of ex-gratia which is Annexure R-1 at page 41 of the affidavit of compliance furnished by the respondent State Bank of India. 12. We accordingly direct the appellants to furnish the information as per the format to the Bank within two weeks from the date hereof and the respondent Bank will take into consideration the case of the appellants within four weeks from the date of furnishing information in the prescribed format. 13. List the matter after six weeks. On that date, the Bank will inform the Court the amount payable to the appellants, to be calculated according to the scheme, along with simple interest of 5% per annum. 14. Urgent photostat certified copy of this order, if applied for, be furnished on priority basis.