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BALBIR KAUR AND ANR. versus STEEL AUTHORITY OF INDIA LTD. AND ORS.

Citation: [2000] 3 S.C.R. 1053 · Decided: 05-05-2000 · Supreme Court of India · Bench: S.B. MAJMUDAR · Disposal: Appeal(s) allowed

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Judgment (excerpt)

BALBIR KAUR AND ANR. 
v. 
STEEL AUTHOij.ITY OF INDIA LTD. AND ORS. 
MAYS, 2000 
[S.B. MAJMUDAR AND UMESH C. BANERJEE, JJ.] 
\; 
Service·Law: 
·Compassionate appointment to dependent of deceased employee-Intro-
duction of Family Benefit Scheme by Tripartite Agreement-Effect of on com-
passionate appointment-Held, said agreement expressly preserved circular 
pertaining to compassionate appointment-Family Benefit Scheme cannot be 
equated with benefit of compassionate appointments-Compassionate appoint-
ment cannot be denied in view of objectives of social and economic justice 
enshrined in the Constitution-Constitution of India, 1950-Article 12. 
Employees Provident.Found & Miscellaneous Provisions Act, 1952 & 
Payment of Gratuity Act, 1972-Beneficial Legislation-Family Benefit Scheme 
requiring deposit of lump sum provident fund and gratuity amount in lieu of 
regular income per month-Validity of deposit-Held, such deposit counter to 
statutory provisions of the said Beneficial Legislations-Purpose of Scheme 
appreciated-Option between compassionate appointment and Family Benefit 
Scheme ought to have been taken ftvm employees-No option taken-Under 
the facts employer directed to consider dependants of deceased employee for 
compassionate appointment-Compassionate Appointment. 
Appellants are defendants of deceased employee and when their 
request for compassionate employment was not considered by respondent. 
employee, appellants tiled writ petition seeking enforcement of their right 
for being considered for compassionate appointment. High Court dis· 
missed writ petition holding that question of compassionate appointment 
would not raise on account of introduction of NJSC Tripartite Agreement 
in 1989. Aggrieved by the judgment of the High Court, appellants have 
pref erred these appeals. 
Appellants contended that obligation of compassionate appointment 
provided in 1983 Agreement has been expressly saved by clause 8 : 14.1 of 
1989 Agreement; that the issue of compassionate appointment cannot be 
1053 
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1054 
SUPREME COURT REPORTS 
[2000] 3 S.C.R. 
trifled with in view of constitutional obligation towards Egalitarian soci-
ety; and that deposit of lump sum gratuity and provident fund amounts 
under the Family Benefit Scheme runs coun\er to mandatory statutory 
obligations. 
Respondent contended that Family Benefit Scheme provided as-
sured/regular income per month to family of decea,sed employee equiva-
lent to basic pay together with dearness allowance last drawn till normal 
v 
date of Superannuation of concerned employee upon deposit of lump sum 
provident fund and gratuity amount with the management and therefore, 
was more beneficial; that family oflarge number of employees have availed 
the scheme; and that any finding against validity of scheme would create 
problems for respondent-employer. 
Allowing the appeals, the Court 
HELD : 1. The socialistic pattern of society as envisaged in the 
Constitution has to be. attributed its full meaning. The employer being 
admittedly an authority within the meaning of Article 12 has thus an 
obligation to act in terms of the avowed objective of.social and economic 
justice as enshrined in the Constitution. Having due regard to the constitu-
tional philosophy to deny a compassionate employment opportunity would 
neither be fair nor reasonable. [1059-C; E] 
Dharwad Disst. PWD Literate Daily Wage Employees Assn. & Ors. v. 
State of Karnataka & Ors., [1990] 2 SCC 396, relied on. 
2. The NJCS Agreement being a Tripartite Agreement expressly 
preserves the 19982 circular pertaining to appointments on compassionate 
grounds to the effect that any benefit conferred by the earlier circular shall 
continue to be effective and in the wake of the same there is no reason to 
deny the relief sought for in the writ petition. [1065-F] 
3. The Family Benefit Scheme cannot be in any way equated with the 
benefit of compassionate appointments. The sudden jerk in the family by 
reason of the death of the bread earner can only be absorbed by some 
lump sum amount being made available to the family. This is rather 
unfortunate but this is a reality. The feeling of security drops to zero on the 
death of the bread earner and insecurity thereafter reigns and it is at that 
juncture if some lump sum amount is made available with a compassionate 
appointment, the grief stricken family may find some solace to the mental 
+ 
BALBIR KAUR v. SAIL 
105

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