CANARA BANK versus AJITHKUMAR G.K.

CANARA BANK versus AJITHKUMAR G.K.

Compassionate appointment requires assessment of indigence and suitability under the governing scheme; where family pension and terminal benefits indicate the family was not indigent and no suitability test was conducted, refusal by the employer was unexceptionable and not liable to interference; an appellate court should not direct appointment without the prescribed suitability assessment; in the present case the High Court orders directing appointment were set aside and, in exercise of Article 142, the Court directed a lumpsum payment of Rs.2.5 lakh to the respondent as final settlement.

Parties
Appellant: Canara Bank; Respondent: Ajithkumar G.K.
Jurisdiction
India
Judgment Date
11 February 2025
Procedural Posture
Civil Appeal / Appeal to the Supreme Court (special Leave)
Outcome
Appeal allowed; orders of the High Court (Single Bench and Division Bench) set aside; appellant directed to pay lumpsum compensation to respondent; no appointment ordered
Legal Topics
Compassionate Appointment, Lapse of Time, Age of the Claimant, Assessment of Financial Condition, Relaxation in Age, Powers of Appellate Court

Case Brief

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Parties

Canara Bank

Appellant

Ajithkumar G.K.

Respondent

Procedural Posture

Civil Appeal / Appeal to the Supreme Court (special Leave)

  1. 1 Whether the Division Bench of the High Court was justified in directing compassionate appointment of the respondent despite his age and lapse of time since death of the breadwinner
  2. 2 Whether lapse of time barred consideration of the respondent’s claim or made compassionate appointment inappropriate
  3. 3 Whether there was a proper assessment of the financial condition of the deceased employee’s family and whether terminal benefits/family pension could be treated as relevant

Ratio Decidendi

Compassionate appointment requires assessment of indigence and suitability under the governing scheme; where family pension and terminal benefits indicate the family was not indigent and no suitability test was conducted, refusal by the employer was unexceptionable and not liable to interference; an appellate court should not direct appointment without the prescribed suitability assessment; in the present case the High Court orders directing appointment were set aside and, in exercise of Article 142, the Court directed a lumpsum payment of Rs.2.5 lakh to the respondent as final settlement.

Court Disposition

Appeal allowed; orders of the High Court (Single Bench and Division Bench) set aside; appellant directed to pay lumpsum compensation to respondent; no appointment ordered

Orders

  • Civil Appeal No.255 of 2025 allowed
  • Judgment and order of the Division Bench dated 04.11.2019 of the High Court of Kerala and the Single Judge order dated 09.06.2016 set aside