30 Years Of Inaction By Employer Cannot Defeat Compassionate Appointment; Age Bar Can't Be Invoked After Management's Delay: Calcutta HC

Holding that an employer cannot defeat a dependent's claim for compassionate appointment by sitting over the matter for decades and then raising an age bar, the Calcutta High Court refused to interfere with an Industrial Tribunal award directing employment to the son of a deceased coal worker. The Court observed that keeping a dependent waiting for nearly 30 years without either granting or rejecting his claim was arbitrary and contrary to the duties of a “model employer”.Justice Shampa Dutt Paul upheld the award of the Central Government Industrial Tribunal-cum-Labour Court, Asansol, which had directed Eastern Coalfields Limited (ECL) to provide compassionate employment to Ranjit Mahali, son of a deceased wagon loader, and had imposed damages for further delay. The Court, however, modified the relief regarding service benefits and notional seniority.Ranjit Mahali's mother, an employee of ECL, died in harness on 21 June 1993. Within three months, he applied for compassionate appointment as her nominee and dependent. Though the company issued a letter for initial medical examination in 1996 and he was later declared “fit for any job in mine”, his case was not processed further.Years later, after no decision was communicated, an industrial dispute was raised through the union, culminating in a reference under the Industrial Disputes Act to the CGIT in 2006. In 2023, the Tribunal allowed the claim and directed employment within two months, failing which damages of ₹10,000 per month were to be paid.ECL challenged the award before the High Court, arguing primarily that the claim suffered from delay and that under the National Coal Wage Agreement (NCWA), no employment could be granted after a male dependent crossed 35 years of age. It relied on the Supreme Court's ruling in Rourkela Steel Plant v. Union of India, where belated compassionate appointment was declined.Court's FindingsThe Court rejected the employer's contentions, noting that there had never been any rejection of the application. Instead, the management kept the matter pending for decades despite medical fitness and eligibility being established.It held that the delay was entirely attributable to the employer and not to the dependent, who had been “diligently pursuing” his claim through appropriate forums. In such circumstances, the company could not rely on the age bar to defeat the claim.Distinguishing the Rourkela Steel Plant decision, the Court said that in the present case there was no prior rejection of compassionate appointment.Relying on the Supreme Court's judgment in Canara Bank v. Ajithkumar G.K., the Bench observed that age or lapse of time cannot be determinative where the claimant is not at fault and the delay arises from prolonged proceedings or employer inaction. A bona fide claimant cannot be denied relief merely because of the time consumed in litigation or administrative processing.The Court also took note of the socio-economic background of the family and held that a public sector undertaking, being an Article 12 authority, must act as a model employer and cannot take advantage of its own wrong. The fact that the petitioner had been called for medical examination and declared fit itself established his eligibility and status as the deceased's dependent.While upholding the Tribunal's decision on entitlement, the Court modified the relief. It directed that the petitioner's seniority be notionally counted from the date of reference (24 May 2006), with notional pay fixation, increments and consequential benefits under the applicable NCWA. Arrears based on notional pay fixation were ordered to be paid within one month.Finding no merit in the writ petition, the Court dismissed it and vacated the interim orders.Case: Eastern Coalfields Limited v. Union of India & Ors.Case No.: WPA 8325 of 2024Click here to read order

30 Years Of Inaction By Employer Cannot Defeat Compassionate Appointment; Age Bar Can't Be Invoked After Management's Delay: Calcutta HC

Srinjoy Das

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