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by sayum
17 February 2026 8:32 AM
In a significant judgment, the Punjab and Haryana High Court has directed UCO Bank to release an ex-gratia amount of ₹7 lakhs along with 6% interest per annum to the petitioner, in a case involving compassionate appointment.
Legal Point of Judgment: The judgment focused on the interpretation of compassionate appointment and ex-gratia payment schemes, emphasizing the need to read beneficial schemes in a holistic and pragmatic manner, rather than adhering to rigid procedural formalities.
Facts and Issues: The case revolved around the petitioner seeking redressal for the rejection of his claim for a compassionate appointment following his father's death, who was employed with UCO Bank. The bank rejected the petitioner's claim citing delay in application submission and insisted on a compassionate appointment rather than considering the ex-gratia payment.
Court Assessment and Observation: Justice Jagmohan Bansal observed the primary objective of compassionate appointment or ex-gratia payment is to protect families of deceased employees from destitution and financial hardship. The court criticized the bank's hyper-technical stand, stating, "The bank was supposed to look at the financial, social, and educational condition of the family and not to look at the mode or manner of the application."
Legal Principles and Law: The court referred to the policy of the bank regarding compassionate appointments and ex-gratia payments, underlining the intention behind such policies to offer immediate financial support to families of deceased employees. The judgment also highlighted the role of beneficial legislation in aligning with the goals set out by the Constitution.
Decision: The court directed UCO Bank to release an ex-gratia amount of ₹7 lakhs along with interest at 6% per annum from the date of filing the writ petition, to be paid to the widow of the employee.
Date of Decision: February 2, 2024
Vikas vs. UCO Bank and Others
