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2008 INSC 381
Equivalent Citations
citation codes
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Disposition
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Acts
  • Article 136 of the Constitution of India
  • Section 5, Subsection 2 of the 1983 Income Tax Act is not mentioned in this excerpt. However, 'the Scheme' and its guidelines are based on Indian Banks’ Association circulated to all public sector banks which in turn are based upon the law laid down by this Hon'ble Court
  • Article 14 of the Constitution
  • Section 11 (no specific Act mentioned)
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Cites
Cited by
Citation Codes
Neutral Citations
2008 INSC 381
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Article 136 of the Constitution of India
  • Section 5, Subsection 2 of the 1983 Income Tax Act is not mentioned in this excerpt. However, 'the Scheme' and its guidelines are based on Indian Banks’ Association circulated to all public sector banks which in turn are based upon the law laid down by this Hon'ble Court
  • Article 14 of the Constitution
  • Section 11 (no specific Act mentioned)
Smart Summary

Factual and Procedural Background

The appellant is the widow of Yunus Dastagir Mulani, a Class IV peon employed in a vocational institution run by a public charitable trust and aided by the State. Mulani died on 6-9-1996. The appellant applied for appointment on compassionate grounds but received no response, prompting multiple representations. The second respondent ultimately declined her request. The appellant then filed a writ petition before the High Court, which dismissed the petition. She appealed to the Supreme Court under Article 136 of the Constitution.

Legal Issues Presented

  1. Whether, on the facts of the case, the appellant is entitled to compassionate appointment despite receiving family pension and other income.
  2. Whether the passage of time and the prior filling of the vacancy with another employee defeat her claim.

Arguments of the Parties

Appellant's Arguments

  • The sole ground for rejection—receipt of family pension—is untenable because the pension is only Rs 1,100 per month and insufficient to maintain a large family including two grown-up children.
  • The State itself had instructed the respondent institution to appoint her under the Government’s compassionate appointment scheme dated 31-12-2002, which should be given effect even at this late stage.

Respondents' Arguments

  • Immediately after the employee’s death the respondents facilitated release of all retiral benefits to the appellant, reducing any financial crisis.
  • The vacancy caused by the employee’s death was filled in 1997 by one Arun Uttereshwar; dismissing him now to accommodate the appellant is impossible.
  • The appellant receives family pension and has additional income from immovable property, placing her beyond the income ceiling applicable under the operative scheme.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Umesh Kumar Nagpal v. State of Haryana (1994) 4 SCC 138 Compassionate appointment is to relieve sudden crisis; entitlement depends on the governing scheme. Cited to underline that such appointments are an exception and governed strictly by the scheme in force.
National Institute of Technology v. Niraj Kumar Singh (2007) 2 SCC 481 Reaffirmed the limited purpose of compassionate appointment. Referred to support the requirement of a subsisting crisis.
I.G. (Karmik) v. Prahalad Mani Tripathi (2007) 6 SCC 162 Compassionate appointment is not a regular source of recruitment; aims only to tide over immediate hardship. Relied on to emphasise that the scheme cannot be stretched beyond its objective.
GM (D&PB) v. Kunti Tiwary (2004) 7 SCC 271 Retiral benefits must be considered while assessing financial condition for compassionate appointment. Used to justify taking family pension and other benefits into account.
Punjab National Bank v. Ashwini Kumar Taneja (2004) 7 SCC 265 Family pension and other benefits are relevant in evaluating financial hardship. Quoted to reinforce inclusion of pension and assets in eligibility assessment.
Sushma Gosain v. Union of India (1989) 4 SCC 468 Foundation case on compassionate appointment; considered in later schemes. Cited indirectly through Ashwini Kumar to trace the evolution of guidelines.
Govind Prakash Verma v. LIC of India (2005) 10 SCC 289 Held that terminal benefits should not bar compassionate appointment. Noted but distinguished for not discussing earlier binding precedents mandating consideration of benefits.
State of J&K v. Sajad Ahmed Mir (2006) 5 SCC 766 Compassionate appointment is an exception to the constitutional norm of open competition. Quoted to stress that long lapse of time and survival of family negate the need for the exception.

Court's Reasoning and Analysis

The Court reiterated that compassionate appointment is an exception intended solely to alleviate immediate financial distress following an employee’s death. The applicable scheme at the time barred appointment when the dependant’s monthly income exceeded Rs 500; the appellant’s family pension and undisputed income from immovable property placed her beyond this ceiling. Citing precedents, the Court held that family pension and other benefits must be factored into the financial-hardship assessment.

The institution is a charitable trust dependent on government aid and cannot create or displace sanctioned posts. The vacancy left in 1996 was filled in 1997 by another employee, and nearly twelve years had elapsed. Given that the appellant is now approximately 38 years old and her children have reached majority, the alleged financial crisis no longer exists. Accordingly, the extraordinary jurisdiction under Article 136 should not be invoked.

Holding and Implications

Appeal Dismissed.

The Supreme Court refused to direct compassionate appointment, affirming that such relief is confined to immediate post-bereavement hardship and must conform strictly to the governing scheme. The decision leaves the parties as they stand and sets no new precedent beyond applying settled principles.

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    Mumtaz Yunus Mulani (Smt) v. State Of Maharashtra And Others

    S.B Sinha, J.— Leave granted.

    2. Whether compassionate appointment of the appellant is warranted in the facts and circumstances of this case is the question involved herein.

    3. The appellant is the widow of one Yunus Dastagir Mulani. He was a peon working in the respondent, a vocational institution. It is a public charitable trust. The appellant's husband expired on 6-9-1996. She filed an application for appointment on compassionate grounds. As no response thereto was received, she made representations.

    4. The second respondent, however, declined to give any appointment on compassionate grounds to the appellant. She filed a writ petition before the High Court. By reason of the impugned judgment the said petition has been dismissed.

    5. Mr Makarand D. Adkar, learned counsel appearing on behalf of the appellant, would submit that the reason for depriving the appellant of the right to be appointed on compassionate grounds, being payment of family pension, the impugned judgment cannot be sustained. It was contended that the appellant has a large family to maintain which includes her two grown-up children. The family pension received by her being only Rs 1100 per month, the respondent should be directed to offer appointment on compassionate grounds to her even at that stage.

    6. Learned counsel appearing on behalf of the respondents, on the other hand, would contend that immediately upon the death of the appellant's husband, the respondents supported the case of the appellant in assisting her to get the retiral benefits of her husband. However, in the year 1997, another person being Mr Arun Uttereshwar having been appointed, it is not possible to dismiss him for service so as to accommodate the appellant.

    7. The appellant's husband was appointed in a Class IV post. The school is an aided institution. The State, although instructed the respondent to appoint the appellant on compassionate grounds, it appears that such an instruction had been issued in view of the scheme for appointment on compassionate grounds as contained in the Government Order dated 31-12-2002. The said resolution, inter alia, reads as under:

    “(1) Regarding giving appointment on compassionate principle, the above scheme will be applicable to all teachers and employees other than teachers of private, primary, secondary and higher middle as well as training schools for teachers.
    (2) Rules relating to absorption of relatives of employees, deceased or retired because of medical reason, are given in the enclosed Annexure ‘A’.
    (3) Information about application to be made for service by the relatives concerned of employees and documents to be submitted along with it will be as mentioned in Annexure ‘B’.
    (4) If the decision is taken prior to implementation of this scheme in respect of giving/refusing to give appointment on compassionate principle, those cases should not be taken into consideration for review. However, those employees who are deceased or those employees who are prematurely retired because of incurable illness after 1-1-2001, in case if persons from such family have applied for appointment on compassionate principle, and if in case their application has been turned down, such relatives can submit their application again afresh in this scheme.”

    8. The fact that the appellant has been receiving family pension is not in dispute. It has furthermore been averred in the counter-affidavit that she has income from the immovable properties in regard whereto, there is no denial or dispute.

    9. Appointment on compassionate grounds can only be granted to tide over the sudden crisis of the family of the deceased. The right to get appointment on compassionate grounds would depend upon the scheme operating in the field. (See Umesh Kumar Nagpal v. State of Haryana (1994) 4 SCC 138, (1994) 27 ATC 537 and National Institute of Technology v. Niraj Kumar Singh (2007) 2 SCC 481, (2007) 2 Scale 525.)

    10. The High Court in its judgment had noticed that the scheme which was operative at the relevant point of time was that appointment on compassionate grounds should not be given if the monthly income exceeds Rs 500. Evidently, the appellant did not fulfil the said criteria. It may be true that in a given case, appointment on compassionate grounds cannot be denied only because the dependant of the deceased had been receiving some amount by way of family pension.

    11. However, it is now a well-settled principle of law that appointment on compassionate grounds is not a source of recruitment. The reason for making such a benevolent scheme by the State or the public sector undertaking is to see that the dependants of the deceased are not deprived of the means of livelihood. It only enables the family of the deceased to get over the sudden financial crisis. [See I.G (Karmik) v. Prahalad Mani Tripathi (2007) 6 SCC 162.]

    12. In GM (D&PB) v. Kunti Tiwary (2004) 7 SCC 271 this Court laid down the law as under:

    “8. This recommendation of the Indian Banks' Association was accepted in the Scheme which was finally formulated on 1-1-1998 where the same criteria for determining the financial condition of the family was laid down. It may be noted that the express language for appointment on compassionate grounds reads as follows:
    ‘Appointments in the public services are made strictly on the basis of open invitation of applications and merit. However, exceptions are made in favour of dependants of employees dying in harness and leaving their family in penury and without any means of livelihood.’ ”

    13. However, we may notice that in Punjab National Bank v. Ashwini Kumar Taneja (2004) 7 SCC 265 this Court relying on the decision of Sushma Gosain v. Union of India (1989) 4 SCC 468, (1989) 11 ATC 878 held: (Ashwini Kumar case (2004) 7 SCC 265)

    “9. One other thing which needs to be considered is whether the retiral benefits are to be taken into consideration while dealing with prayer for compassionate appointment. The High Court was of the view that the same was not to be taken into consideration. The view is contrary to what has been held recently in GM (D&PB) v. Kunti Tiwari (2004) 7 SCC 271. It was categorically held that the amounts have to be taken into consideration. In the instant case, there was a scheme called ‘Scheme for Employment of the Dependants of the Employees Who Die While in the Service of the Bank'service on Compassionate Grounds’ (in short ‘the Scheme’) operating in Appellant 1 Bank which categorically provides as follows:
    ‘Financial condition of the family
    The dependants of an employee dying in harness may be considered for compassionate appointment provided the family is without sufficient means of livelihood, specifically keeping in view the following:
    (a) Family pension.
    (b) Gratuity amount received.
    (c) Employee's/Employer's contribution to PF.
    (d) Any compensation paid by the Bank or its Welfare Fund.
    (e) Proceeds of LIC policy and other investments of the deceased employee.
    (f) Income of family from other sources.
    (g) Employment of other family members.
    (h) Size of the family and liabilities, if any, etc.
    It is most respectfully submitted that the Board of Directors of the petitioner Bank had approved the abovesaid Scheme, which was based upon the guidelines circulated by Indian Banks’ Association to all the public sector banks which in turn are based upon the law laid down by this Hon'ble Court in Umesh Kumar Nagpal v. State of Haryana (1994) 4 SCC 138, (1994) 27 ATC 537. The Scheme after approval was circulated vide PDCL 6/97 read with PDCL 11/99 dated 17-4-1999'.”

    14. The question came up for consideration yet again in Govind Prakash Verma v. LIC of India (2005) 10 SCC 289 wherein it was held:

    “6. In our view, it was wholly irrelevant for the departmental authorities and the learned Single Judge to take into consideration the amount which was being paid as family pension to the widow of the deceased (which amount, according to the appellant, has now been reduced to half) and other amounts paid on account of terminal benefits under the Rules. The scheme of compassionate appointment is over and above whatever is admissible to the legal representatives of the deceased employee as benefits of service which one gets on the death of the employee. Therefore, compassionate appointment cannot be refused on the ground that any member of the family received the amounts admissible under the Rules. So far as the question of gainful employment of the elder brother is concerned, we find that it had been given out that he has been engaged in cultivation. We hardly find that it could be considered as gainful employment if the family owns a piece of land and one of the members of the family cultivates the field. This statement is said to have been contradicted when it is said that the elder brother had stated that he works as a painter. This would not necessarily be a contradiction much less leading to the inference drawn that he was gainfully employed somewhere as a painter. He might be working in his field and might casually be getting work as painter also. Nothing has been indicated in the enquiry report as to where he was employed as a regular painter. The other aspects, on which the officer was required to make enquiries, have been conveniently omitted and not a whisper is found in the report submitted by the officer. In the above circumstances, in our view, the orders passed by the High Court are not sustainable. The respondents have wrongly refused compassionate appointment to the appellant. The inference of gainful employment of the elder brother could not be acted upon. The terminal benefits received by the widow and the family pension could not be taken into account.”

    It, however, does not appear that therein the earlier binding precedent of this Court had been taken notice of.

    15. Yet again in State of J&K v. Sajad Ahmed Mir (2006) 5 SCC 766 the law was laid down in the following terms:

    “11. We may also observe that when the Division Bench of the High Court was considering the case of the applicant holding that he had sought ‘compassion’, the Bench ought to have considered the larger issue as well and it is that such an appointment is an exception to the general rule. Normally, an employment in the Government or other public sectors should be open to all eligible candidates who can come forward to apply and compete with each other. It is in consonance with Article 14 of the Constitution. On the basis of competitive merits, an appointment should be made to public office. This general rule should not be departed from except where compelling circumstances demand, such as, death of the sole breadwinner and likelihood of the family suffering because of the setback. Once it is proved that in spite of the death of the breadwinner, the family survived and substantial period is over, there is no necessity to say ‘goodbye’ to the normal rule of appointment and to show favour to one at the cost of the interests of several others ignoring the mandate of Article 14 of the Constitution.”

    16. In this case, the respondent is a charitable institution. It is run on government aid. It cannot afford to appoint persons in a post which has not been sanctioned. It has not been denied or disputed that one Arun Uttareshwar has already been appointed in place of the deceased husband of the appellant. It does not matter as to whether the said appointment has been approved by the State or not inasmuch as if it has not been done, on the basis of the policy decision contained in its Resolution dated 31-12-2002 the same cannot be considered to be of much significance, particularly, in view of the fact that the appellant's husband died as far back as on 6-9-1996 and the vacancy had been filled up in the year 1997.

    17. Furthermore, about twelve years have passed. The appellant's son is aged about 20 years and daughter is aged about 16 years. Therefore, they have become major. The appellant herself would be aged about 38 years now. She cannot be given any appointment at this age.

    18. Keeping in view the fact situation obtaining in this case, we are of the opinion that no case has been made out for exercising our discretionary jurisdiction under Article 136 of the Constitution of India. This appeal, therefore, is dismissed. No costs.

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    Mumtaz Yunus Mulani (Smt) v. State Of Maharashtra And Others
    (Mar 14, 2008)