Supreme Court Set Aside High Court’s Order Directing Compassionate Appointment – Lump Sum Ex-Gratia Granted Under Article 142. Compassionate Appointment – Financial Condition Consideration – High Court Erred in Overlooking Suitability Criterion – Article 142 Invoked for Equitable Relief


Summary of Judgement

Acts And Sections Discussed

  • Constitution of India, 1950 – Article 142 – Extraordinary Power Exercised for Equitable ReliefPara 49
  • Civil Procedure Code, 1908 – Order XLI Rule 33 – Power of Appellate Court in Exceptional CasesPara 36
  • Canara Bank’s Compassionate Appointment Scheme, 1993Eligibility Criteria – Financial Condition Consideration – Age RelaxationPara 8, 9, 29, 35

Keywords

Compassionate Appointment – Indigent Circumstances – Financial Condition – Terminal Benefits – Age Relaxation – Suitability Test – Judicial Precedents – Article 142 – Employment Policy – Penury Assessment

Issues For Consideration

a. Whether The High Court Erred In Directing Compassionate Appointment Without Assessing Financial DistressPara 24, 30, 37
b. Whether The Family’s Financial Condition Should Be Considered While Granting Compassionate AppointmentPara 31, 32, 44
c. Whether Age Relaxation Can Be Granted Without Establishing Indigent CircumstancesPara 34, 35
d. Whether The Division Bench Could Direct Appointment Without Subjecting The Respondent To Suitability TestPara 33, 38

Submissions/Arguments

Appellant (Canara Bank)

  • Financial Condition Assessment Was Essential – Terminal Benefits and Family Pension Could Not Be Ignored – Para 32, 43
  • High Court Failed To Follow Precedents – Relief Could Not Be Granted Without Establishing Financial Hardship – Para 45
  • Age Relaxation Was Not Automatic – It Could Only Be Considered After Other Eligibility Criteria Were Met – Para 35

Respondent (Ajithkumar G.K.)

  • Bank Acted Arbitrarily – Did Not Consider Relaxation Power Under The 1993 Scheme – Para 34
  • Receipt Of Family Pension Was Irrelevant – Financial Position Should Not Have Been A Ground For Rejection – Para 42
  • First High Court Judgment Had Already Settled The Issue – Rejection Of Claim Violated Res JudicataPara 34

Decision

  • High Court’s Order Set Aside – Direct Appointment Without Suitability Test Was Erroneous – Para 48, 50
  • Compassionate Appointment Not Granted – Respondent’s Family Was Not In Indigent Circumstances – Para 46
  • Article 142 Invoked – Lump Sum Of ₹2.5 Lakh Awarded In Full And Final Settlement – Para 49

Ratio Decidendi

  • Compassionate Appointment Was An Exception And Could Not Be Granted As A Vested Right – Para 29, 45
  • Financial Distress Was A Mandatory Requirement – Terminal Benefits And Family Pension Had To Be Considered – Para 31, 44
  • Age Relaxation Could Not Be Claimed Automatically – It Was A Discretionary Power Exercisable Only If Other Conditions Were Met – Para 35
  • Courts Could Not Order Direct Appointments – Suitability Test Was A Necessary Requirement – Para 33, 38

The Judgement

Case Title: CANARA BANK VERSUS AJITHKUMAR G.K.

Citation: 2025 LawText (SC) (2) 111

Case Number: CIVIL APPEAL NO. 255 OF 2025 [ARISING OUT OF SLP (CIVIL) NO. 30532 /2019]

Date of Decision: 2025-02-11