Search By Topic: Service Matters

205. (P&H HC) 17-11-2022

A. Employees’ Compensation Act, 1923 (8 of 1923), Section 3(5), 10, 19 – Code of Civil Procedure, 1908 (V of 1908), Section 9, 100 -- Death/ injury to employee -- Compensation to employee -- Jurisdiction of civil Court – Substantial question of law -- Whether provisions of Section 3(5) and 19 the Employee’s Compensation Act, 1923, bar jurisdiction of civil Courts to entertain a suit for damages/compensation on account of death or injury suffered by an employee during the course of employment – Held, civil Court has jurisdiction to entertain a suit for damages/compensation with respect to an injury or death of an employee, if no claim for compensation before a Commissioner under the Act of 1923 has been instituted in that regard.

(Para 12-14)

B. Employees’ Compensation Act, 1923 (8 of 1923), Section 3(5), 10, 19 -- Code of Civil Procedure, 1908 (V of 1908), Section 9, 100 -- Death of employee -- Compensation to employee -- Suit for recovery of compensation -- Assessment of damages – Courts below assessed the damages on the basis of principles laid down under the Motor Vehicles Act, 1988 -- Keeping in view the age, income and number of dependents of the deceased and by applying adequate multiplier of ‘14’, an amount of Rs.20,15,600/- was awarded as compensation, to be paid by the Insurance company along with interest at the rate of 6% per annum from the date of filing the suit till its realisation – No exception can be taken to the assessment of compensation on the basis of principles laid down under the Motor Vehicles Act, 1988, as done by the Courts below. Paramjit Kaur’s case 2008 (4) RCR (Civil) 772 (P&H DB) relied -- No ground to interfere with the concurrent findings of the Courts below -- Appeal dismissed.

(Para 8, 14-17)

211. (SC) 30-09-2022

A. Constitution of India, Article 14, 16 -- Compassionate appointment – Concession not a right -- Appointment on compassionate ground, for all the government vacancies equal opportunity should be provided to all aspirants as mandated under Articles 14 and 16 of the Constitution -- However, appointment on compassionate ground offered to a dependent of a deceased employee is an exception to the said norms -- Compassionate ground is a concession and not a right.

(Para 6)

B. Compassionate appointment -- Object of -- Compassionate appointment is an exception to the general rule of appointment in the public services and is in favour of the dependents of a deceased dying in harness and leaving his family in penury and without any means of livelihood, and in such cases, out of pure humanitarian consideration taking into consideration the fact that unless some source of livelihood is provided, the family would not be able to make both ends meet, a provision is made in the rules to provide gainful employment to one of the dependants of the deceased who may be eligible for such employment -- Whole object of granting compassionate employment is, thus, to enable the family to tide over the sudden crisis -- Object is not to give such family a post much less a post held by the deceased.

(Para 7)

C. Compassionate appointment to married daughter – Right of – Effect of delay -- Claim rejected on 18.08.2011/ 23.4.2013 – Respondent-daughter cannot be said to be dependent on the deceased employee, i.e., her mother -- Even otherwise, she shall not be entitled to appointment on compassionate ground after a number of years from the death of the deceased employee.

(Para 2.1-2.3, 7.1)

214. (SC) 26-09-2022

A. Rajasthan Non-Government Educational Institutions (Recognition Grant-In-Aid and Service Conditions, Etc.) Rules, 1993, Rule 5(viii), 10, 13, 14 -- Absorption of Aided School employee in State service – Undertaking by employees -- Leave encashment benefits -- Leave encashment is part of salary – State cannot shrug its responsibility to shoulder its part of the responsibility to pay the appellants the share of leave encashment benefits, and hide behind either Rule 5 (viii) or the undertaking executed by them -- Appellants are held entitled to privilege leave entitlement benefits -- Such benefit shall be calculated from the date they entered the service of the establishment till the date of their absorption, by the State, in 2016 -- State shall pay the benefits due to the extent of 70%, and the balance 30% shall be payable by the management establishment – Interest @ 10% from the date(s) of their entitlement, till the date of payment awarded.

(Para 21, 23)

B. Rajasthan Non-Government Educational Institutions (Recognition Grant-In-Aid and Service Conditions, Etc.) Rules, 1993, Rule 82 -- Absorption of Aided School employee in State service – Gratuity – Liability of Aided School/ Establishment -- Scheme of the 1993 Rules, categorically cast the liability to pay gratuity on the employer, i.e., the aided establishment – Neither has Rule 82 changed, nor has any other material been brought to the notice of the court, to say that the management are absolved of their liability to pay gratuity, upon termination of their relationship with the appellants as their employers -- Rule 82 is a condition of grant, which meant that the management establishment was conscious and aware of its liability when it applied and was granted aid, under the 1993 Rules -- Therefore, it cannot escape its liability on that score -- Respondent-Management to pay the amount of gratuity, to the appellants till the date of order of absorption, by the State -- Interest @ 10% from the date(s) of their entitlement, till the date of payment awarded.

(Para 22, 23)

216. (SC) 19-09-2022

A. Constitution of India, Article 14, 16 – Arbitrariness violates Article 14, 16 -- State is bound by the fundamental rights of its employees under Articles 14 to 16 of the Constitution of India -- Arbitrariness violates the right to equality under Articles 14 to 16 of the Constitution of India.

(Para 12)

B. Constitution of India, Article 14, 16 – Rajasthan Civil Services (Pension) Rules, 1996, Rule 25(2) – Resignation/ appointment after seeking permission -- Resignation from service may entail forfeiture of past service -- However, sub-rule (2) of Rule 25 of the Rules carves out an exception, clarifies that a resignation with proper permission to take up another appointment, whether temporary or permanent, under the Government shall not entail forfeiture of past service -- Respondent was selected through Rajasthan Public Service Commission on the Assistant Director (Agro-Industries), while he was still in service of the Rajasthan State Agro Industry Corporation, which is also an entity fully controlled by the State of Rajasthan -- Respondent having retired after working for about 26 years, the Petitioner-State cannot raise the question of proof of prior permission before resignation, more so when the appointment had been made through the RPSC to a Government post -- It is to be deemed that there has been disclosure of past service and the application has been made through proper channel by obtaining the requisite approvals -- It is to be presumed that prior permission had been taken unless the contrary could be established by the State.

(Para 23-26)

C. Constitution of India, Article 226 – Delay of six years in filing the Writ Petition – Limitation -- Laws of limitation do not apply to exercise of jurisdiction under Article 226 of the Constitution of India -- Relief being discretionary, the Courts might in their discretion refuse to entertain the Writ Petition, where there is gross delay on the part of the Writ Petitioner, particularly, where the relief sought would, if granted, unsettle things, which are already settled – Pension is a lifelong benefit, denial of pension is a continuing wrong -- Court cannot also be oblivious to the difficulties of a retired employee in approaching the Court, which could include financial constraints.

(Para 26-27)

D. Interpretation of pension rules – It is settled law that when financial rules framed by the Government such as Pension Rules are capable of more interpretations than one, the Courts should lean towards that interpretation which goes in favour of the employee.

(Para 28)

223. (SC) 11-08-2022

A. Industrial Disputes Act, 1947 (14 of 1947), Section 25F, 25FFA – Closure of business -- Bonafide of Management -- Retrenchment of employees -- Re-employment thereafter – Continuity of service with backwages – Right of -- 55 drivers/employee went on strike over claiming pay hike and permanency of casual employees -- Soon after employees joined services, appellant through individual letters ‘retrenched’ the services of all 55 employees, on the ground of closure of business – Later, appellant started offering re-employment to all employees on new terms and conditions – Retrenchment of all drivers followed by an offer of re-employment on new terms and conditions was not bona fide -- Once the orders of retrenchment set aside, the workmen naturally became entitled to continuity of service with order of back wages.

(Para 15, 16)

B. Industrial Disputes Act, 1947 (14 of 1947), Section 25F, 25FFA –Constitution of India, Article 136 – Closure of business -- Retrenchment of employees -- Setting aside of -- Backwages – Right of -- Whether award of 75% back-wages to employees was justified, after their retrenchment orders were set aside – Tribunal has considered the matter in detail and after appreciating the oral and documentary evidence directed reinstatement of the employees with only 75% back wages -- Whether a workman was gainfully employed or not is a question of fact, and the finding of the Tribunal as upheld by the High Court, cannot be interfered with by the Supreme Court in exercising its power under Article 136 of the Constitution of India.

(Para 18)

227. (SC) 19-07-2022

A. Army Rules, 1954, Rule 14(b) -- Disability pension – Delay in medical examination -- Question of entitlement of soldier to disability pension cannot be determined on the basis of medical examination conducted 20 years after his discharge.

(Para 15)

B. Army Rules, 1954, Rule 13(3) III(v) 14(b) -- Disability pension – Disability related to army service -- Medical Expert opinion -- Discharge was on administrative grounds and not medical grounds -- Mere fact that an ailment or disease may have arisen in service does not mean that the ailment or disease is attributable to service conditions -- Review Medical Board only assessed the extent of the disability of the Respondent and the approximate duration of the disability, but not the cause thereof -- Reliance would necessarily have to be placed on expert medical opinion -- Tribunal patently erred in law in proceeding on the basis of a misconceived notion that any ailment or disability of a soldier, not noted at the time of recruitment but detected or diagnosed at the time of his discharge or earlier, would entitle the soldier to disability pension on the presumption that the disability was attributable to military service, whether or not the disability led to his discharge, and the onus was on the employer to prove otherwise, which the Appellants in this case had failed to do – Claim of the Respondent for disability pension should not have been entertained and that too, 20 years after his discharge -- Impugned judgment and order is set aside.

(Para 23-27)

230. (SC) 14-07-2022

A. Constitution of India, Article 32, 226 -- Judicial review -- Action against employee -- Opinion of Authority – Doctrine of reasonableness -- Where an Act or the statutory rules framed thereunder left an action dependent upon the opinion of the authority concerned, by some such expression as ‘is satisfied’ or ‘is of the opinion’ or ‘if it has reason to believe’ or ‘if it considered necessary’, the opinion of the authority is conclusive, (a) if the procedure prescribed by the Act or rules for formation of the opinion was duly followed, (b) if the authority acted bona fide, (c) if the authority Itself formed the opinion and did not borrow the opinion of somebody else and (d) if the authority did not proceed on a fundamental misconception of the law and the matter in regard to which the opinion had to be formed -- Courts will not readily defer to the conclusiveness of the authority’s opinion as to the existence of matter of law or fact upon which the validity of the exercise of the power is predicated -- Doctrine of reasonableness thus may be invoked -- Where there are no reasonable grounds for the formation of the authority’s opinion, judicial review in such a case is permissible.

(Para 28-30)

B. Constitution of India, Article 32, 226 -- Judicial review -- Action against employee -- Opinion of Authority – Court can inquire whether the facts and circumstances so found to exist have a reasonable nexus with the purpose for which the power is to be exercised.

(Para 34)

C. Constitution of India, Article 32, 226 -- Judicial review -- Action against employee -- Opinion of Authority – Court can interfere if the constitutional or statutory term essential for the exercise of the power has either been misapplied or misinterpreted -- The Courts have always equated the jurisdictional review with the review for error of law and have shown their readiness to quash an order if the meaning of the constitutional or statutory term has been misconstrued or misapplied.

(Para 35)

D. Constitution of India, Article 32, 226 -- Judicial review -- Action against employee -- Opinion of Authority – It is permissible to interfere in a case where the power is exercised for improper purpose -- If a power granted for one purpose is exercised for a different purpose, then it will be deemed that the power has not been validly exercised.

(Para 36)

E. Constitution of India, Article 32, 226 -- Judicial review -- Action against employee -- Opinion of Authority – Grounds which are relevant for the purpose for which the power can be exercised have not been considered or grounds which are not relevant and yet are considered and an order is based on such grounds, then the order can be attacked as invalid and illegal -- On the same principle, the administrative action will be invalidated if it can be established that the authority was satisfied on the wrong question.’

(Para 37)

F. Constitution of India, Article 32, 226 -- Assam Rifles Regulation, 2016, Regulation 107(c), 108 – Assam Rifles Manual, Rule 24 – Four red ink entries – Discharge from service -- Entry 1 (1996) For staying back to take care of his ailing mother – ‘without sufficient cause over staying leave granted’. Sentenced to 14 days of rigorous imprisonment with deduction in salary -- Entry 2 (1998) For being on the way out to make a phone call, but stopped before he could leave the compound – “visited out of bound areas as specified in unit BRO Part I Ser No 202 dated 30 Aug 96 without permission from his superior officers”. Sentenced to 28 days of rigorous custody and 14 days of Military Custody -- Entry 3 (1999) For losing his luggage while coming back from home – “lost his identity card bearing machine No. 078550 by neglect the property of the Government issued to him for his use”. Sentenced to 28 days of rigorous imprisonment and 14 days of detention in AR custody -- Entry 4 (2004) For playing cards all alone by himself – ‘to obey unit standing orders and was found Gambling in unit line’. Sentenced to 28 days of rigorous imprisonment and 14 days of fine -- Having regard to the nature of the misconduct alleged against the appellant, ends of justice would be met if order of discharge set aside and treat the appellant to have been in service till the time, he could be said to have completed the qualifying service for grant of pension – Nothing on record to indicate that the nature of the misconduct leading to the award of four Red Ink entries was so unacceptable that the competent authority had no option but to direct his discharge to prevent indiscipline in the force -- Order of discharge against the appellant set aside -- Benefit of continuity of service for all other purpose shall be granted to the appellant including pension.

(Para 39, 40)

239. (SC) 05-05-2022

A. Constitution of India, Article 14 -- Additional explanation -- State must not be allowed to bring in additional explanation to justify their actions when those are conspicuous by their absence, in the government decision.

(Para 26)

B. Constitution of India, Article 14, 16(1) – Doctrine of legitimate expectation -- Intelligible differentia -- Contention that the +2 lecturers have no semblance of similarity with the BSES, to enable assimilation into the BES -- No intelligible differentia could be pointed out by the state’s counsel to sustain such arbitrary classification between +2 lecturers and the BSES secondary level teachers, posted in government schools -- High Court declared that the +2 lecturers, both in the Government and the nationalized (taken over) secondary schools, appointed pursuant to Advertisement No.1/87, have always been part of the Bihar Subordinate Education Service (“BSES”) and thereby, they are entitled to be merged with the Bihar Education Service Class II (“BES”), pursuant to the Government decision dated 07.07.2006 – Manifest departure smacks of arbitrariness and the government action, to selectively protect the interest of the BES cadre, does not conform to rules of justice and fair play -- Where the substantive legitimate expectation is not ultra vires the power of the authority and the court is in a position to protect it, the State cannot be allowed to change course and belie the legitimate expectation of the respondents -- Regularity, Predictability, Certainty and Fairness are necessary concomitants of Government’s action and the Bihar government failed to keep to their commitment by the impugned decision, which was rightly interdicted by the High Court – Appeal by State dismissed.

(Para 2, 27, 33, 34, 38)

241. (SC) 02-05-2022

A. Constitution of India, Article 14 – Excess payment to employee – Recovery thereof -- If the excess amount was not paid on account of any misrepresentation or fraud or if such excess payment was made by the employer by applying a wrong principle for calculating the pay/allowance or on the basis of a particular interpretation of rule/order which is subsequently found to be erroneous, such excess payment of emoluments or allowances are not recoverable – Relief against the recovery is granted not because of any right of the employees but in equity, exercising judicial discretion to provide relief to the employees from the hardship that will be caused if the recovery is ordered -- If it is proved that an employee had knowledge that the payment received was in excess of what was due or wrongly paid, or in cases where error is detected or corrected within a short time of wrong payment, the matter being in the realm of judicial discretion, the courts may on the facts and circumstances of any particular case order for recovery of amount paid in excess.

(Para 9)

B. Constitution of India, Article 14 – Excess payment to employee – Recovery thereof -- Not a case of misrepresentation or fraud played by the appellant-employee -- Appellant retired on 31.03.1999 -- Case of the respondents is that excess payment was made due to a mistake in interpreting Kerala Service Rules which was subsequently pointed out by the Accountant General – Held, attempt to recover the said increments after passage of ten years of his retirement is unjustified -- Appeal allowed, recovery notice set aside.

(Para 14-16)