Supreme Court Modifies Compensation Order in Compassionate Appointment Case Due to Employer's Delay. Eligibility Under 1998 Scheme Established but Application Rejected Under New 2007 Scheme, Compensation Reduced to Rs.5 Lakhs as Employment Not Feasible Due to Age.

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Case Note & Summary

The dispute arose from the denial of compassionate appointment to the respondent, whose father died while working as a Telephone Mechanic for BSNL on 07.02.2003. The respondent submitted his application for compassionate appointment on 15.10.2004 under the BSNL Compassionate Appointment Scheme of 1998, completing all formalities by 03.07.2005. The appellants did not dispute his eligibility under the 1998 Scheme. However, his application remained pending until a new weightage point system Scheme was introduced on 27.06.2007, superseding the 1998 Scheme. Subsequently, his application was rejected on 15.09.2007 based on the new Scheme's criteria. The respondent challenged this rejection before the Tribunal and later the High Court. The core legal issue was whether the High Court's award of Rs.10 lakhs compensation in lieu of compassionate appointment was appropriate, given that the respondent had crossed the age of 50 by the time the matter reached the High Court, making employment not feasible. The appellants argued through their counsel, while the respondent sought relief for the arbitrary denial. The court analyzed that the delay in processing the application was attributable to the appellants, as the respondent was eligible under the 1998 Scheme at the time of his application and the delay denied him justice. The court reasoned that while employment was no longer possible due to the respondent's age, he could not be left without a remedy. The Supreme Court modified the High Court's judgment, reducing the compensation to Rs.5 lakhs to be paid within four weeks, with 9% interest per annum if delayed, and disposed of the appeal accordingly.

Headnote

A) Employment Law - Compassionate Appointment - Eligibility and Delay - BSNL Compassionate Appointment Scheme, 1998 - Respondent's father died in service on 07.02.2003, respondent applied for compassionate appointment on 15.10.2004 under 1998 Scheme - Court found respondent eligible under 1998 Scheme but application remained pending until new Scheme introduced on 27.06.2007 and rejected on 15.09.2007 - Held that delay in processing application was attributable to appellants, depriving respondent of entitlement under 1998 Scheme (Paras 1-4)

B) Employment Law - Compassionate Appointment - Compensation in Lieu of Employment - Not mentioned - High Court granted Rs.10 lakhs compensation as respondent crossed age of 50 years making employment not feasible - Supreme Court modified compensation to Rs.5 lakhs considering totality of circumstances and delay attributable to appellants - Held that respondent could not be left without remedy due to employer's delay (Paras 3-5)

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Issue of Consideration

Whether the High Court's grant of Rs.10 lakhs compensation for denial of compassionate appointment was appropriate given the delay attributable to the employer and the applicant's age

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Final Decision

Supreme Court modified High Court judgment, reducing compensation from Rs.10 lakhs to Rs.5 lakhs to be paid to respondent within four weeks, with interest @ 9% per annum if delayed, and disposed of appeal

Law Points

  • Compassionate appointment eligibility determined by scheme in force at time of application
  • delay attributable to employer cannot prejudice applicant's rights
  • compensation appropriate remedy when employment not feasible due to delay
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Case Details

2021 LawText (SC) (9) 78

Civil Appeal No(s). 6019 of 2021 (Arising out of SLP(C)No.16404 of 2018)

2021-09-28

Ajay Rastogi, Abhay S Oka

The Chief General Manager, Telecommunication, BSNL & Ors.

Vidya Prasad

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Nature of Litigation

Civil appeal against High Court judgment granting compensation for denial of compassionate appointment

Remedy Sought

Appellants seeking to challenge High Court's grant of Rs.10 lakhs compensation to respondent

Filing Reason

Appeal directed against judgment and order dated 13.12.2017 passed by High Court of Judicature at Allahabad

Previous Decisions

High Court granted compensation of Rs.10 lakhs in lieu of compassionate appointment; Tribunal and Division Bench of High Court previously involved

Issues

Whether the High Court's grant of Rs.10 lakhs compensation for denial of compassionate appointment was appropriate given the delay attributable to the employer and the applicant's age

Ratio Decidendi

Delay in processing compassionate appointment application attributable to employer cannot prejudice applicant's rights; compensation is appropriate remedy when employment not feasible due to such delay

Judgment Excerpts

delay was admittedly attributable to the appellants in not putting heed to the application submitted for seeking compassionate appointment he has been deprived of seeking compassionate appointment, which he was otherwise entitled to under the Scheme of 1998 delay denies justice and the present respondent became victim of the total inaction on the part of the appellants

Procedural History

Respondent applied for compassionate appointment on 15.10.2004; application rejected on 15.09.2007; challenged before Tribunal; travelled to Division Bench of High Court; High Court granted compensation on 13.12.2017; Supreme Court appeal filed and disposed on 28.09.2021

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