The Supreme Court on September 05, 2022 in the matter of Ahmednagar Mahanagar Palika v. Ahmednagar Mahanagar Palika Kamgar Union held that the appointment of the heirs of the employees on their retirement and/or superannuation is contrary to the object and purpose of appointment on compassionate grounds and is hit by Article 14 of the Constitution of India.

In the instant matter an appeal was filed against the order of High Court of Judicature at Bombay dismissing writ petitions challenging the order of an Industrial Court directing Ahmednagar Mahanagar Palika to give appointment to the heirs of the employees on their retirement and/or superannuation. The direction was based on a settlement award between the Employees Union and the Mahanagar Palika in which one of the demands by the Union was that legal heirs of the employees must be employed on retirement.

The Supreme Court held that appointment to the heirs of the employees on their retirement/superannuation is violative of Articles 14 and 15 of Constitution of India and that no one can claim to have a vested right for appointment on compassionate grounds. The appointment on compassionate grounds is not automatic and shall be subject to the strict scrutiny of various parameters including the financial position of the family, the economic dependence of the family upon the deceased employee and the avocation of the other members of the family. The court further observed that

“If such an appointment is permitted, in that case, outsiders shall never get an appointment and only the heirs of the employees on their superannuation and/or retirement shall get an appointment and those who are the outsiders shall never get an opportunity to get an appointment though they may be more meritorious and/or well educated and/or more qualified. Even otherwise, such an appointment to the heirs of the employees on their retirement and/or superannuation shall be contrary to the object and purpose of appointment on compassionate grounds and is hit by Article 14 of the Constitution of India. As observed and held by this Court in a catena of decisions, compassionate appointment shall always be treated as an exception to the normal method of recruitment.”

Thus, the Court allowed the appeal, setting aside the impugned order passed by the High Court and held that the employees of the Mahanagar Palika /Municipal Corporation shall be governed by the scheme of the State Government at par with the government employees, which does not provide for appointment on compassionate grounds to the heirs of the employees on their retirement and/or superannuation.