2019 (4) TMI 2182 - HC - Indian Laws

NCWA statutory: clause 9.5.0(ii) allows female dependent under 45 employment or cash; over 45 only cash

The HC held the NCWA is statutory and applied clause 9.5.0(ii) of NCWA-VII, which gives a female dependent under 45 the option of employment or monetary ... Maintainability of petitioner’s prayer for grant of compassionate appointment - grant of benefit of monetary compensation - HELD THAT:- The contention of the appellant is agreed upon that National Coal Wage Agreement is statutory in nature. It is an outcome of tripartite agreement among the Coal Company, Labour Unions and Central Government. It has been held by the Hon’ble Supreme Court in Mohan Mahto Vs. Central Coalfields Ltd. [2007 (9) TMI 727 - SUPREME COURT], that it has statutory force. In view of 9.5.0 (ii) of NCWA-VII there is a provision that if the female dependent is below the age of 45 years she will have the option either to accept the monetary compensation or employment. In case the female dependent is above 45 years of age she will be entitled only for monetary compensation not for employment - it is apparent that claim of a female dependent above the age of 45 years at the time of death of the employee is restricted to monetary compensation. The deceased wife who has now attained the age of 45 years is entitled for payment of monetary compensation. The reasons assigned by the learned Single Judge are well founded - the letters patent appeal is dismissed. ISSUES PRESENTED AND CONSIDERED 1. Whether a claim for compassionate appointment by the son of a workman who died in service is maintainable where the nominee/female dependent had earlier applied and other family members' claims were processed or lapsed. 2. Whether the National Coal Wage Agreement-VII (NCWA-VII) is statutory in nature and binding on the employer for conferring entitlement to employment or monetary compensation to dependants of a deceased workman. 3. Proper interpretation and application of clauses 9.3.0/9.3.2 and 9.5.0 of NCWA-VII regarding (a) entitlement to employment or monetary compensation of female dependants depending on age and circumstances of death, (b) entitlement of male dependants to a live roster and subsequent employment, and (c) the temporal scope of monetary compensation. 4. Whether the learned Single Judge erred in leaving open the claim for monetary compensation to the mother (nominee) while rejecting the son's claim for compassionate appointment. ISSUE-WISE DETAILED ANALYSIS Issue 1 - Maintainability of son's claim for compassionate appointment where nominee/female dependent had earlier applied or other dependants' claims were processed Legal framework: Compassionate appointment under NCWA-VII and employer's discretion; compassionate appointment treated as concession rather than a legal right unless NCWA provisions mandate otherwise. Precedent Treatment: The Court followed binding authority recognizing statutory force of NCWA (reference to Mohan Mahto principle that NCWA has statutory force) and treated compassionate appointment within that framework. Interpretation and reasoning: The Court accepted that compassionate appointment is not an absolute right but a concession subject to the scheme and facts. The record showed that the nominee (mother) had applied repeatedly and that the management had initiated consideration for other dependants (eldest son, later deceased). The appellant's (younger son's) application was made much later (2011 and thereafter), and the Court treated delay/indecisiveness of the nominee and prior processing of other applications as relevant factual reasons for non-appointment. The Court accepted the Single Judge's factual finding that the management did consider dependants' claims and that indecisiveness on part of the nominee impeded consideration of the appellant's claim. Ratio vs. Obiter: Ratio - where NCWA grants discretionary/concessional relief, later-made claims by other dependants may be non-maintainable if the employer has already considered or acted upon other dependent(s)' claims and the factual matrix shows delay or indecisiveness by the claimant's representative. Obiter - factual emphasis that three deaths in family and financial crisis could be mitigating but do not create automatic entitlement to appointment. Conclusion: The Court upheld the Single Judge's conclusion that the son's claim for compassionate appointment was not maintainable in the circumstances; no interference warranted. Issue 2 - Statutory nature of NCWA-VII and obligations of respondents Legal framework: Tripartite National Coal Wage Agreement, binding effect where recognized by higher authority; relevant provisions prescribe entitlements for dependants of workmen dying in service. Precedent Treatment: The Court endorsed the view that NCWA carries statutory force (following Supreme Court authority) and accordingly the respondents are bound to apply its provisions. Interpretation and reasoning: The Court accepted that NCWA-VII provisions are mandatory in setting out options (employment or monetary compensation) and processes (medical board for age verification, live roster for male dependants) and that the employer's actions must conform to those clauses. However, entitlement to appointment remains subject to procedural and factual eligibility under the NCWA clauses. Ratio vs. Obiter: Ratio - NCWA-VII is binding and prescriptive for determining entitlement to employment or monetary compensation for dependants; employers must act within its framework. Obiter - references to tripartite nature and statutory force are explanatory of why NCWA is binding. Conclusion: The Court reaffirmed that NCWA-VII is binding and that respondents must implement its provisions; this supported directing payment of monetary compensation where applicable. Issue 3 - Interpretation and application of clauses 9.3.0/9.3.2 and 9.5.0 of NCWA-VII Legal framework: Clause 9.3.2 (employment to one dependant where worker dies in service); Clause 9.5.0 (special regime for female dependants: options for employment or monetary compensation depending on cause of death and age; male dependants to be kept on live roster if 12 years and above and offered employment on attaining 18 years; monetary compensation payable to female dependants till age 60). Precedent Treatment: The Court applied the textual provisions of NCWA-VII and relevant precedent recognizing NCWA's binding nature; no precedent was overruled or distinguished other than reliance on statutory character established in prior authority. Interpretation and reasoning: The Court construed 9.5.0 as creating distinct rules for female dependants: (i) in mine accidents female dependants may choose employment irrespective of age or accept fixed monthly compensation; (ii) in non-accident deaths, female dependants below 45 years may choose employment or monthly compensation, while those above 45 years are limited to monetary compensation only; (iii) where no employment is offered and male dependants are age-eligible (=12 years), they are to be placed on a live roster with employment when reaching 18, while female dependants receive monetary compensation during the live-roster period; (iv) monetary compensation continues till female dependant attains 60 years. The Court found the deceased wife had crossed the 45-year threshold at the time of the employee's death and was therefore entitled only to monetary compensation, subject to medical board age verification where applicable. Ratio vs. Obiter: Ratio - specific textual application of 9.5.0(ii) that a female dependant above 45 years at time of employee's death is entitled only to monetary compensation, not employment; live-roster and monetary compensation interplay for male and female dependants is binding. Obiter - discussion of medical board verification procedure where age recorded in service record appears inconsistent with claimed age. Conclusion: The Court held that the mother, being above 45 at the relevant time, is entitled to monetary compensation under NCWA-VII (subject to filing application and medical verification where required), and that the employer's rejection of employment was consistent with NCWA-VII; the son's claim did not supplant statutory scheme given the factual timeline. Issue 4 - Whether monetary compensation claim could be left open to mother while compassionate appointment of son rejected Legal framework: NCWA-VII permits monetary compensation to female dependants in prescribed circumstances; claim requires application and administrative processing. Precedent Treatment: The Court applied the impugned Single Judge order which left monetary compensation open to the nominee/mother, consistent with NCWA-VII and administrative procedure. Interpretation and reasoning: The Court agreed that monetary compensation entitlement is distinct from compassionate appointment and can survive denial of appointment to another dependant. The Single Judge's direction that monetary compensation be paid if the mother files the requisite application was viewed as compliant with NCWA-VII and administrative fairness. The Court noted the employer had already communicated regret at offering employment to the appellant and that payment of monetary compensation until age 60 is prescribed by the NCWA. Ratio vs. Obiter: Ratio - denial of compassionate appointment to one dependant does not preclude payment of monetary compensation to an eligible female dependant under NCWA-VII; courts may direct employer to act on statutory entitlement upon application. Obiter - procedural timelines and necessity for medical board verification are factual adjuncts. Conclusion: The Court upheld leaving the monetary compensation claim open to the mother and affirmed the Single Judge's direction to pay monetary compensation under NCWA-VII within prescribed time upon application; appeal dismissed.