AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2010 (2) TMI 1311
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.... by the "SBI Scheme for payment of ex gratia lump sum amount" with effect from 4-8-2005. The new Scheme abolished the old Scheme for compassionate appointments and instead provided for payment of an ex gratia lump sum amount as per its terms. 3. Clauses 14 and 15 of the new Scheme relevant for our purpose are extracted below: 14 Date of effect of the Scheme and disposal of pending applications.- ...Applications pending under the Compassionate Appointment Scheme as on the date on which this new Scheme is approved by the Executive Committee of the Central Board will be dealt with in accordance with the new Scheme for payment of ex gratia lump sum amount provided they fulfil all the terms and conditions of this Scheme. 15.....
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....stified in calling upon the Respondent to apply under the new ex gratia scheme. 7. On the other hand, the learned Counsel for the Respondent submitted that on the date of death of his father and on the date of making the application, the compassionate appointment scheme was in force and therefore, he was entitled to be considered for compassionate appointment under the said scheme. 8. It is now well settled that appointment on compassionate grounds is not a source of recruitment. On the other hand it is an exception to the general rule that recruitment to public services should be on the basis of merit, by an open invitation providing equal opportunity to all eligible persons to participate in the selection process. The dependants of ....
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....n such an event the Scheme in force at the time of death would apply. 10. On the other hand, if a scheme provides that on the death of an employee, a dependent family member is entitled to appointment merely on making of an application, whether any vacancy exists or not, and without the need to fulfil any eligibility criteria, then the scheme creates a right in favour of the applicant, on making the application and the Scheme that was in force at the time when the application for compassionate appointment was filed, will apply. But such schemes are rare and in fact, virtually nil. 11. Normal schemes contemplate compassionate appointment on an application by a dependent family member, subject to the applicant fulfilling the prescribed ....
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....a concession and not a right, the employer may wind up the scheme or modify the scheme at any time depending upon its policies, financial capacity and availability of posts. 14. In this context we may usefully refer to the decision of this Court in Union of India v. R. Padmanabhan (2003) 7 SCC 270 wherein this Court observed: (SCC pp. 278-79, para 8) 8. ...That apart, being ex gratia, no right accrues to/any sum as such till it is determined and awarded and, in such cases, normally it should not only be in terms of the guidelines and policy in force, as on the date of consideration and actual grant but has to be necessarily with reference to any indications contained in this regard in the scheme itself. The line of decisions in ....
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....or vested in the applicant, before the change of policy. 16. In this case the employee died in October 2004, the application was made only in June 2005. The application was not even by the Respondent, but by his mother. Therefore, it was necessary to ascertain whether the Respondent really wanted the appointment, whether he possessed the eligibility, and whether any post was available. Within two months of the application, the new Scheme came into force and the old Scheme was abolished. The new Scheme specifically provided that all pending applications will be considered under the new Scheme. Therefore it has to be held that the new Scheme which came into force on 4-8-2005 alone will apply even in respect of pending applications. 17. ....
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....by taking into consideration the financial position/capacity of the family. The High Court allowed the writ petition filed by the widow in 2004 on the ground that the terminal benefits of Rs. 4,57,607 received by the family were not sufficient for the sustenance of the family. In an appeal by the Bank, it was contended before this Court that in addition to Rs. 4,57,607 paid as terminal benefits, the widow was getting Rs 2055 per month as family pension and that was not considered by the High Court. During the hearing before this Court, the widow relied upon the new Scheme dated 4-8-2005 and sought additional payment in terms of the scheme. 19. The above observations were made in the context of rejecting, the widow's request for addit....