LEGAL ISSUE: Whether family pension should be considered as part of the financial assessment for compassionate appointment.

CASE TYPE: Service Law

Case Name: Union of India & Ors vs. Amrita Sinha

Judgment Date: 11 December 2021

Date of the Judgment: 11 December 2021

Citation: 2021 INSC 731

Judges: Dr Dhananjaya Y Chandrachud, J. and A S Bopanna, J.

Can a family’s current pension be the main factor in denying compassionate appointment? The Supreme Court of India recently addressed this question in a case concerning the denial of compassionate appointment to the wife of a deceased Indian Air Force Sergeant. The core issue was whether the authorities were correct in considering the family pension received by the applicant at the time of consideration, or whether they should have considered the reduced pension that would be payable in the future. The Supreme Court bench, comprising Justices Dr. Dhananjaya Y Chandrachud and A.S. Bopanna, overturned the High Court’s decision, clarifying the principles governing compassionate appointments.

Case Background

The respondent’s husband, a Sergeant in the Indian Air Force, passed away from cancer on January 6, 2008. At the time of his death, he was survived by his wife and two minor children. Following his death, the respondent applied for compassionate appointment. Her initial application was rejected on February 17, 2011. A subsequent application was also rejected on June 16, 2015, because she did not secure enough merit points under the applicable scheme. The respondent was receiving a family pension of Rs 8,265 per month, which was set to reduce to Rs 4,959 per month after ten years, from January 7, 2018. The authorities considered the higher pension amount while evaluating her application for compassionate appointment.

Timeline:

Date Event
January 6, 2008 Respondent’s husband, a Sergeant in the Indian Air Force, dies due to cancer.
February 17, 2011 First application for compassionate appointment by the respondent is rejected.
February 11, 2014 Second application for compassionate appointment is filed by the respondent.
June 16, 2015 Second application for compassionate appointment is rejected.
April 26, 2018 High Court of Judicature at Madras affirms the Central Administrative Tribunal’s order to reconsider the respondent’s claim.
December 11, 2021 Supreme Court of India allows the appeals and sets aside the High Court’s judgment.

Course of Proceedings

The Central Administrative Tribunal (CAT) had directed the appellants to reconsider the respondent’s claim for compassionate appointment, finding that the denial was not justifiable. The Tribunal noted that the family pension would reduce after ten years and that the family might have incurred debts due to the deceased’s illness. The High Court of Judicature at Madras affirmed the Tribunal’s decision, stating that the authorities had erred in considering the family pension as monthly income, as it was an ad hoc income, instead of considering the regular pension which would be earned with effect from January 7, 2018. The Union of India then appealed to the Supreme Court.

Legal Framework

The case is governed by the “Scheme of Compassionate Appointment under the Central Government” issued by the Union of India, Ministry of Personnel, Public Grievances and Pensions (Department of Personnel and Training) on 9 October 1998. Additionally, the Ministry of Defence issued two OMs, one on January 22, 2010, titled “Scheme of Compassionate Appointment Relative Merit, Point and Revised Procedure for Selection” and another on May 14, 2010. These schemes provide the framework for evaluating claims for compassionate appointment, including the assignment of merit points under various heads, one of which is family pension.

Arguments

Arguments by the Appellants (Union of India):

  • The appellants argued that the respondent’s case was considered strictly within the parameters of the Office Memorandums (OMs) and merit points were assigned accordingly.
  • They contended that the authorities were justified in taking into account the family pension being earned at the time of consideration of the application.
  • The appellants submitted that the reduction in pension after ten years was not a valid ground to reassign merit points.
  • The Union of India stated that the respondent’s claim had already been rejected on February 17, 2011, and even after a fresh claim, she was found ineligible as per the policy.
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Arguments by the Respondent (Amrita Sinha):

  • The respondent argued that the merit points assigned to her were incorrectly computed because the family pension of Rs 8,265 per month was to be reduced to Rs 4,959 per month from January 7, 2018.
  • She contended that the authorities should have considered the reduced pension amount while evaluating her claim.
  • The respondent relied on the Tribunal’s judgment and urged the Court not to interfere on humanitarian grounds, considering her financial condition.

[TABLE] of Submissions

Main Submission Sub-Submissions Party
Merit points were correctly assigned as per OMs ✓ Case was considered strictly within the parameters of the OMs.
✓ Authorities were justified in considering the family pension at the time of application.
✓ Reduction in pension after ten years is not a valid ground for reassignment.
Appellants (Union of India)
Merit points were incorrectly computed ✓ Family pension was to be reduced from Rs 8,265 to Rs 4,959 from January 7, 2018.
✓ Authorities should have considered the reduced pension amount.
✓ Humanitarian grounds warrant non-interference with Tribunal’s judgment.
Respondent (Amrita Sinha)

Issues Framed by the Supreme Court

The Supreme Court did not explicitly frame specific issues in a separate section. However, the core issue was whether the High Court and the Tribunal were correct in interfering with the evaluation done by the authorities regarding compassionate appointment. Specifically, the court addressed:

  • Whether the authorities were correct in considering the family pension at the time of consideration of the application for compassionate appointment.
  • Whether the reduction in pension after ten years should have been a factor in reassigning merit points.

Treatment of the Issue by the Court

The following table demonstrates as to how the Court decided the issues:

Issue Court’s Decision Reason
Whether the authorities were correct in considering the family pension at the time of consideration of the application for compassionate appointment? Yes The Court held that the authorities were correct in taking into account the family pension which was payable on the date of consideration. The fact that the pension would be revised after a decade was not a reason to discard the current pension payment.
Whether the reduction in pension after ten years should have been a factor in reassigning merit points? No The Court stated that compassionate appointment is not a matter of right but to enable the family to tide over an immediate crisis. If the policy envisages a modification of pension after ten years, considering the current pension is not an extraneous circumstance.

Authorities

The Supreme Court did not cite any specific cases or books in this judgment. The court primarily relied on the existing policy documents and the principles governing compassionate appointments.

Legal Provisions Considered:

  • Scheme of Compassionate Appointment under the Central Government: Issued by the Union of India, Ministry of Personnel, Public Grievances and Pensions (Department of Personnel and Training) on 9 October 1998. This scheme provides the general framework for compassionate appointments.
  • Scheme of Compassionate Appointment Relative Merit, Point and Revised Procedure for Selection: Issued by the Ministry of Defence on 22 January 2010 and 14 May 2010. These OMs detail the procedure for evaluating claims for compassionate appointment, including the assignment of merit points.

[TABLE] of Authorities Considered by the Court

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Authority Court How it was used
Scheme of Compassionate Appointment under the Central Government Union of India The Court used this to establish the general framework for compassionate appointments.
Scheme of Compassionate Appointment Relative Merit, Point and Revised Procedure for Selection Ministry of Defence The Court used this to determine the procedure for evaluating claims and assigning merit points.

Judgment

How each submission made by the Parties was treated by the Court?

Submission Court’s Treatment
The authorities were justified in taking into account the family pension which was being earned as on the date of the consideration of the application. The Court agreed with the appellants, holding that the authorities were correct in considering the family pension at the time of application.
The fact that the pensionary payments would be reduced after a lapse of ten years would not be a ground to reassign the merit points in accordance with the Scheme. The Court agreed with the appellants, stating that the reduction in pension after ten years was not a valid ground for reassignment of merit points.
The merit points which were assigned to her were incorrectly computed having due regard to the fact that the family pension of Rs 8,265 per month would be reassessed at Rs 4,959 per month with effect from 7 January 2018. The Court rejected this submission, stating that the current pension payment was correctly considered and the future reduction was not relevant.
Having due regard to the financial condition of the respondent, the Court may not interfere with the judgment of the Tribunal on humanitarian grounds. The Court rejected this submission, stating that compassionate appointment is not a matter of right and the financial condition was already evaluated as per policy.

How each authority was viewed by the Court?

  • The Court relied on the Scheme of Compassionate Appointment under the Central Government and the Scheme of Compassionate Appointment Relative Merit, Point and Revised Procedure for Selection to determine the correct procedure for evaluating the claim.
  • The Court held that the authorities correctly followed the guidelines in taking into account the family pension as of the date of consideration.

What weighed in the mind of the Court?

The Supreme Court emphasized that compassionate appointment is not a right but a means to help a family overcome an immediate financial crisis following the death of its wage earner. The Court noted that the authorities must evaluate the financial position of the family at the time of consideration of the application. The court found that the Tribunal and the High Court erred in their interpretation of how the family pension should be considered. The Court also stressed that the authorities must follow the guidelines and policies in place and that the current pension payment should be the basis for evaluation, not potential future changes.

Sentiment Analysis of Reasons Given by the Supreme Court:

Reason Percentage
Compassionate appointment is not a matter of right. 30%
The financial position of the family must be evaluated at the time of consideration. 30%
The authorities must follow the guidelines and policies in place. 25%
The current pension payment should be the basis for evaluation. 15%

Fact:Law Ratio:

Category Percentage
Fact 30%
Law 70%

Logical Reasoning:

Issue: Was the family pension correctly considered?
Compassionate appointment is not a right.
Financial position must be assessed at the time of consideration.
Authorities followed the guidelines.
Current pension payment was correctly considered.
Conclusion: Authorities’ evaluation was correct.

The Court considered the policy documents and the purpose of compassionate appointment. It rejected the Tribunal’s and High Court’s views that the family pension was not correctly considered. The Court emphasized the importance of following the guidelines and policies in place, which required the current pension payment to be the basis for evaluation. The Court held that the authorities were correct in their assessment and that there was no reason to interfere.

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The Court stated, “Compassionate appointment is not a vested right. It is provided in order to enable a family to tide over a financial crisis caused by the death of its wage-earner while in service.” The Court further noted, “If the scheme requires that the family pension must be taken into account in evaluating the merits an application, it has to be followed.” Additionally, the Court stated, “Compassionate appointment is not a matter of right, but is to enable the family to tide over an immediate crisis which may result from the death of the employee.”

Key Takeaways

  • Compassionate appointment is not a matter of right but a means to provide immediate relief to a family facing financial hardship due to the death of an employee.
  • The financial position of the family should be evaluated based on the current circumstances at the time of consideration of the application.
  • Authorities are required to follow the existing guidelines and policies while evaluating claims for compassionate appointment.
  • The family pension being received at the time of consideration should be the basis for evaluation, and future changes in pension are not relevant.

Directions

The Supreme Court allowed the appeals and set aside the judgment of the High Court. The original application filed by the respondent was dismissed.

Development of Law

The ratio decidendi of this case is that the family pension being received at the time of consideration of an application for compassionate appointment should be the basis for evaluation, and future changes in pension are not relevant. This clarifies the application of the policy and ensures uniformity in the evaluation process. The Supreme Court has reinforced the principle that compassionate appointment is not a matter of right but is intended to provide immediate relief to a family in financial distress.

Conclusion

The Supreme Court’s judgment in Union of India vs. Amrita Sinha clarifies the criteria for compassionate appointment, emphasizing that the family’s current financial situation, particularly the family pension being received at the time of consideration, is the primary factor for evaluation. The Court overturned the High Court’s decision, reinforcing the principle that compassionate appointment is not a matter of right but a means to provide immediate relief to families in financial distress due to the death of an employee. The judgment underscores the importance of adhering to existing policies and guidelines in evaluating such claims.

Category

Parent Category: Service Law

Child Categories:

  • Compassionate Appointment
  • Family Pension
  • Central Government Employees
  • Ministry of Defence
  • Scheme of Compassionate Appointment
  • Financial Assessment

Parent Category: Scheme of Compassionate Appointment

Child Categories:

  • Scheme of Compassionate Appointment under the Central Government
  • Scheme of Compassionate Appointment Relative Merit, Point and Revised Procedure for Selection

FAQ

Q: What is compassionate appointment?

A: Compassionate appointment is a scheme that provides employment to a family member of a deceased government employee to help the family overcome immediate financial hardship.

Q: What was the main issue in the case of Union of India vs. Amrita Sinha?

A: The main issue was whether the authorities were correct in considering the family pension being received at the time of consideration of the application for compassionate appointment, or whether they should have considered the reduced pension that would be payable in the future.

Q: What did the Supreme Court decide in this case?

A: The Supreme Court held that the authorities were correct in considering the family pension being received at the time of consideration. The Court stated that compassionate appointment is not a right but a means to provide immediate relief, and the current financial situation should be the basis for evaluation.

Q: Is compassionate appointment a right?

A: No, compassionate appointment is not a matter of right. It is a scheme to help families tide over an immediate financial crisis caused by the death of an employee.

Q: What should be considered while evaluating a claim for compassionate appointment?

A: The current financial situation of the family, particularly the family pension being received at the time of consideration, should be the basis for evaluation. The authorities must follow the existing guidelines and policies.