Court Directs Central Madhya Pradesh Gramin Bank to Compensate Widow with Rs. 7 Lakhs for Delayed Ex Gratia Application
In a significant ruling, the Madhya Pradesh High Court, Gwalior Bench, has criticized the Central Madhya Pradesh Gramin Bank for mechanically denying ex gratia payment to Smt. Rekha Jain, the widow of a deceased bank employee, solely on the grounds of delayed application. The court emphasized the need for a compassionate and liberal interpretation of the rules governing ex gratia payments, especially in cases involving the dependents of deceased employees.
The judgment was delivered by Justice Anand Singh Bahrawat in response to a writ petition filed under Article 226 of the Constitution of India by Smt. Rekha Jain and her sons, challenging the bank's rejection of their ex gratia claim. The petitioners argued that the delay in applying for ex gratia payment was due to personal circumstances, including the need to settle family pension claims and manage their livelihood following the death of Mahesh Kumar Jain, who served as a cashier at the bank.
The bank had dismissed the ex gratia application citing a policy that required claims to be filed within six months of the employee's death. However, the court found this reasoning to be unjustified, noting that the limitation period was not statutory and that the bank had failed to communicate the time restriction to the petitioner. The court highlighted that the rejection of the ex gratia claim on technical grounds violated the spirit of compassionate consideration intended under the scheme.
In its order, the court directed the bank to pay Rs. 7,00,000 to the petitioner within three months, warning that failure to comply would result in an 18% annual interest from the date of the petition's filing until the amount is realized. The judgment underscores the judiciary's role in ensuring that procedural technicalities do not override substantive justice, particularly in matters affecting the welfare of bereaved families.
Bottom Line:
Denial of ex gratia payment to a widow of a deceased employee solely on technical grounds of delay violates the spirit of compassionate consideration under the scheme. The delay in filing the application can be condoned in view of the circumstances and the principles of liberal interpretation.
Statutory provision(s): Article 226 of the Constitution of India
