Court Orders Reconsideration of Petitioner's Application, Citing Arbitrary Rejection Grounds by Union Bank of India
In a significant judgment, the Madhya Pradesh High Court has quashed the Union Bank of India's decision to deny compassionate appointment to Nikhil Kol, the petitioner, on arbitrary grounds. The court held that the rejection based on the "unsatisfactory service record" of the deceased employee, Kol's father, was not supported by the prevailing compassionate appointment policy.
The case revolves around Nikhil Kol, whose father, Late Shri. Shankar Prasad Kol, served as a Daftary at the Sagra Branch in District Rewa, Madhya Pradesh, until his untimely demise in 2016. Following his death, Kol, the sole breadwinner for his family, applied for a compassionate appointment under the bank's scheme. Despite fulfilling the necessary criteria, his application was rejected in January 2018, citing his father's service record.
Presiding over the case, Justice Jai Kumar Pillai stated that the bank's rejection was arbitrary and lacked a basis in the compassionate appointment policy. The court emphasized that the policy does not include the deceased's past service record as a criterion for exclusion. Consequently, the rejection was deemed contrary to the policy's objective of providing immediate financial assistance to families in distress.
The court ordered the bank to reconsider Kol's application strictly per the prevailing policy and to issue a reasoned order within 60 days. Additionally, the court imposed a cost of Rs. 50,000 on the bank for the undue hardship and delay caused to the petitioner, to be paid within 30 days.
In his analysis, Justice Pillai highlighted the importance of compassionate appointments as a welfare measure to help families overcome sudden financial crises. He criticized the bank for its mechanical and arbitrary approach, which defeated the policy's purpose and inflicted unwarranted hardship on Kol's family.
This judgment serves as a reminder to authorities to adhere strictly to policy provisions and provide transparent, reasoned decisions in compassionate appointment cases, avoiding reliance on extraneous criteria.
Bottom line:-
Compassionate appointment - Denial of compassionate appointment based on "unsatisfactory service record" of deceased employee held arbitrary and against the prevailing policy.
Statutory provision(s): Article 226 of the Constitution of India
Nikhil Kol v. Union Bank of India, (Madhya Pradesh)(Jabalpur) : Law Finder Doc id # 2888801
