Compassionate Appointment Denied as Family Income Exceeded Eligibility Limit

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  • Last Updated on 16 June, 2026

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Compassionate Appointment Income Eligibility Criteria

Case Details: Sarvesh Kumar vs. General Manager, Punjab National Bank - [2026] 186 taxmann.com 873 (HC - Allahabad)

Judiciary and Counsel Details

  • Ajay Bhanot, J.
  • Ashok Kumar Nigam, Smt. Rekha Singh & Satya Niwas Prasad, Counsels for the Petitioner.
  • Sanjai Singh for the Respondent.

Facts of the Case

In the instant case, the Petitioner’s father, an employee of the respondent Bank, died in harness – Petitioner applied for a compassionate appointment under the Bank’s Scheme, which under Clause 8 permitted appointment only if the family’s monthly income from all sources was less than 60% of the deceased employee’s last drawn monthly salary (net of taxes).

The Competent authority rejected claim after computing, per Clause 8, monthly income from interest on net terminal dues and other investments at 6.30% p.a., family pension, and son’s income, aggregating to about Rs. 0.31 lakhs, which exceeded 60% of deceased’s notional net monthly salary of about Rs. 0.26 lakhs (with notional gross monthly salary being about Rs. 0.43 lakhs). The petitioner challenged the rejection before the High Court.

High Court Held

The High Court held that since the income of the family of the deceased so calculated was more than 60% of the last salary drawn by the deceased, the family did not face financial destitution as a result of the death of the employee and, thus, the petitioner did not fulfil the criteria for grant of compassionate ground appointment as per provisions of compassionate ground appointment scheme applicable to bank. Therefore, there was no infirmity in the impugned order, and the writ petition was to be dismissed.

List of Cases Referred to

  • Umesh Kumar Nagpal v. State of Haryana [1994] 1994 taxmann.com 2427 (SC) (para 8)
  • Director of Education (Secondary) v. Pushpendra Kumar (1998) 5 SCC 192 (para 9)
  • Roopam Mishra v. State of U. P. [Writ Appeal No. 15512 of 2019] (para 10)
  • Director of Treasuries in Karnataka v. Somyashree [Civil Appeal No. 5122 of 2021] (para 11)
  • Ipsita Chakrabarti v. State of West Bengal 2018 (2) Cal LT 177 (para 12)
  • Sri Bijon Mukherjee v. State of West Bengal 2018 (3) Cal LT 136 (para 13)
  • Ankita Saha v. State of West Bengal [WPA No. 12287 of 2019] (para 14)

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied