STEEL AUTHORITY OF INDIA versus MADHUSUDAN DAS & ORS.

Citation: [2008] 14 S.C.R. 824 · Decided: 20-10-2008 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Appeal(s) allowed
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Judgment (excerpt)

[2008] 14 S.C.R. 824 
A 
STEEL AUTHORITY OF INDIA LTD. 
J<< 
II. 
MADHUSUDAN DAS & ORS. 
(Civil Appeal No. 6159 of 2008) 
B 
OCTOBER 20, 2008 
\• 
[S.8. SINHA AND CYRIAC JOSEPH, JJ.] 
Service law - Appointment - Compassionate appoint-
?(_ 
-~ 
ment- Claim of, by dependent son of employee dying in har-
c ness - Rejected by employer as a/so Single Judge of High 
Court - However, allowed by Division Bench - Sustainability 
of - Held: Appointment on compassionate ground is a con-
cession and not a right - As per the terms of Settlement, in 
case of death due to accident arising out of and in course of 
D employment, compassionate appointment was to be provided 
to one of his/her direct dependents - Division Bench of High 
Court erred in holding that employer was bound to provide 
compassionate appointment in all cases involving death of 
--+--· 
employee - Parties had not pleaded or proved before the 
E courts below that death occurred due to an accident or was 
result of stress in work or work was hazardous in nature - A/so 
post mortem report did not suggest that death was due to an 
accident - Thus, order of Division Bench of High Court not 
sustainable and set aside - Memorandum of Settlement of 
F 
Wages and Benefits, 1989. 
BD was working in the mines belonging to the ap-
pellant. He was on the shift duty and was asked to con-
tinue the morning duty. BO collapsed while working and 
died. Respondent no 1-dependent son of BO sought ap-
G pointment on compassionate ground but the same was 
rejected. He filed writ petition. The Single Judge of High 
Court dismissed the writ petition. However, the Letters 
~ 
Patent Appeal was allowed. Hence the present appeal. 
H 
824 
The question which arose for consideration in this A 
appeal was whether employee died in an accident aris-
ing out of and in course of employment. 
Allowing the appeal, the Court 
HELD: 1.1 The provisions for appointment on com-
B 
passionate ground is provided in Para 8.9.4 of the Memo-
randum of Settlement of Wages and Benefits, 1989 that in 
case of death due to accident arising out of and in course 
of employment, employment to one of his/her direct de-
pendents will be provided. [Para 7] [829-C-D] 
c 
1.2 Appellant being a State within the meaning of Ar-
ticle 12 of the Constitution of India, while making recruit-
ments, it is bound to follow the rules framed by it. Appoint-
ment of a dependant of a deceased employee on com-
passionate ground is a matter involving policy decision. D 
It may be a part of the service rules. In the instant case, it 
would be a part of the settlement having the force of law. 
A Memorandum of Settlement entered into by and be-
tween the Management and the employees having regard 
to the provisions contained in Section 12(3) of the Indus-
E 
trial Disputes Act is binding both on the employer and the 
employee. In the event, any party thereto commits a 
breach of any of the provisions thereof, ordinarily, an in-
dustrial dispute is to be raised. [Para 14] [832-E-H] 
1.3 The Division Bench of the High Court proceeded F 
on the premise that the employer was bound to provide 
appointment on compassionate appointment in all cases 
involving death of an employee. The Division Bench was 
not correct in its view. The appointment on compassion-
ate ground cannot be claimed as a matter of right. It is a -G 
· -~oncession. It must be provided for in the rules. The cri-
teria laid down therefor, viz., that the death of the sole 
bread earner of the family, must be established. It is meant 
to provide for a minimum relief. When such contentions 
are raised, the constitutional philosophy of equality be-
H 
826 
SUPREME COURT REPORTS 
(2008] 14 S.C.R. 
A 
hind making such a scheme be taken into consideration. 
j(-
Articles 14 and 16 of the Constitution of India mandate 
that all eligible candidates should be considered for ap-
pointment in the posts which have fallen vacant. Appoint-
ment on compassionate ground offered to a dependant 
B of a deceased employee is an exception to the said rule. 
It .may be that a provision for appointment on com pas-
sionate ground was made as a measure of social benefit 
but it does not lay down a legal principle that the court 
shall pass an order to that effect despite the fact that the 
. c conditions precedent therefor have not been satisfied. 
[Paras 14 and 16] [833-A-D; 834-C] 
General Manager, State Bank of India and Others v. Anju 
Jain (2008) 8 sec .475 - relied on. 
D 
Balbir Kaur and Another
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