Ex Gratia Settlement: Anjanabai Zode Kanya Vidyalaya v. Enquiry Committee

In a significant ruling by the Supreme Court of India, the case of Anjanabai Zode Kanya Vidyalaya v. Enquiry Committee has been resolved with the granting of an ex gratia payment. The court’s decision brings closure to a contentious legal battle surrounding the termination of services of the former headmistress of the school. Stay tuned for more details on this impactful judgment. #LegalCase #SupremeCourt #JusticeServed

Facts

  • The original respondent was engaged as a Head Mistress at Anjanabai Zode Kanya Vidyalaya.
  • A total of 53 charges, including a charge of misappropriation, were leveled against the employee.
  • A disciplinary enquiry was initiated, and an Enquiry Committee was constituted under Rule 36 of the Maharashtra Employees of Private Schools (Conditions of Service) Rules 1981.
  • The Enquiry Committee submitted a combined report on 29 June 1998, with one member expressing a dissenting view.
  • A charge-sheet was issued to the employee on 15 January 1998.
  • The services of the employee were terminated on 3 July 1998.
  • The High Court’s judgment was assailed, and it was claimed that the requirements of Rule 37(6) of the 1981 Rules were duly fulfilled.
  • The order of termination was eventually set aside, but as the employee had retired and passed away, the management was directed to pay arrears of salary for the specified period.
  • The High Court’s decision was based on the absence of evidence showing the Enquiry Committee members had convened and deliberated before submitting their reports.
  • The Tribunal rejected the appeal, leading to a writ petition filed by the respondent.
  • The failure to follow Rule 37(6) constituted a breach in the process.

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Arguments

  • Learned counsel for the petitioner argued for full and final settlement through payment of ex gratia amount by the management.
  • Opposing counsel for the respondents mentioned that remanding the case now, after the demise of the employee, would not be just as the legal representatives are pursuing the case.
  • Retiral dues of approximately Rupees eight lakhs were duly paid to the deceased employee.
  • The deceased employee was gainfully employed after her termination.

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Analysis

  • The High Court’s decision to allow the writ petition was deemed misconceived and set aside.
  • The High Court did not address all contentions as it relied on a previous court decision.
  • The facts of the present case were found to be distinguishable from the case referenced by the High Court.
  • Normally, the case would have been remanded, but the present decision does not warrant it.
  • In the case of Vidya Vikas Mandal v. Education Officer, a different scenario with Rule 37(6) was presented.
  • The requirement of Rule 37(6) of the 1981 Rules was deemed fulfilled in this case.
  • The Enquiry Committee’s meetings and findings were detailed to support the fulfillment of Rule 37(6).
  • An affidavit by the third member of the Committee raised objections, but the rules were considered met.
  • The Report of the Enquiry Committee, including the dissent by the third member, was duly completed.
  • The fulfillment of Rule 37(6) was clearly established based on the documented proceedings.

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Decision

  • An ex gratia payment of Rupees one lakh fifty thousand will be made to the respondents.
  • The appeals have been disposed of accordingly.
  • Proceedings in the above terms are closed as per the request.
  • Leave has been granted in this case.
  • The payment must be made to the respondents within one month of receiving a certified copy of this order.
  • No costs are to be ordered in this matter.
  • The payment is a humanitarian gesture and is considered a full and final settlement.

Case Title: SHRI YOGIRAJ SHIKSHAN PRASARAK MANDAL Vs. VIDYA (DEAD) THRU LR

Case Number: C.A. No.-005296-005297 / 2019

Click here to read/download original judgement

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