Page 25 - Banking Finance February 2026

LEGAL UPDATE

Can't deny job benefits to

adopted child: HC
In a significant ruling on compassion- L L L L Lee ee egg gg gaa aa all ll l
ate appointments, the Orissa high
court has held that an adopted child
cannot be denied employment ben-
efits if the adoption was completed News
before the death of the employee,
even if formal documentation or rec-
ognition followed later.
A division bench of Justice Dixit Krishna
Shripad and Justice Sibo Sankar Mishra
on Jan 6 dismissed a petition filed by
the Centre and railways challenging an While acknowledging that compassion- Masih ruled that the High Court had
order of the Central Administrative ate appointment is not a matter of erred in vacating interim relief granted
Tribunal (CAT), Cuttack, which had di- right and is governed by policy, the under Section 9 of the Act on the
rected reconsideration of a compas- bench said employers are bound by ground that arbitration had not com-
sionate appointment claim. their own rules. The Railway Board's menced within the prescribed period.
The case related to Late K. Sadhu policy requires adoption to be com- The court clarified that Section 21 of
Patra, an ex-technician (C&W) with pleted before the employee's death-a the Act exhaustively defines the com-
the railways, who died in harness on condition satisfied in the present case. mencement of arbitration as the date
April 2, 2008. His widow, K. Subhadra "If the policy stipulation is complied with, on which a request to refer disputes to
Patra, and adopted son K. Adamma there is no justification for denying reha- arbitration is received by the respon-
Patra sought compassionate appoint- bilitative appointment when the bread- dent, and this definition cannot be dis-
ment. The railways rejected the claim winner dies in harness," the bench said, placed by reference to proceedings
in Dec 2021, arguing that no valid endorsing the CAT's reasoning. under Sections 9 or 11.
adoption existed and that the adop- The Bench cautioned that treating a
tion deed was executed only in Feb Arbitration begins with Section 11 petition, filed for the ap-
2010, after the employee's death. pointment of an arbitrator, as the trig-
notice, not court filing,
The HC rejected this stand, pointing ger for commencement would distort
out that a civil court decree dated Feb says SC the statutory framework and dilute
27, 2013 conclusively declared K. The Supreme Court has reaffirmed that the role assigned to Section 21.
Adamma Patra as the adopted son of arbitration legally begins when the Emphasising the settled position of
the deceased employee and his wife. notice invoking arbitration is received law, the court observed that the start
The decree had attained finality, as all by the opposing party, and not when a of arbitral proceedings is a statutory
rival claimants were parties to the suit court is approached for the appoint- event and does not depend on the ini-
and no appeal was filed. ment of an arbitrator. Setting aside a tiation of any court process.
Crucially, the bench noted that the civil contrary view taken by the Karnataka The ruling arose from a dispute stem-
court judgment recorded the date of High Court, the court held that linking ming from a 2019 franchise agree-
adoption as July 4, 2003, well before the start of arbitral proceedings to a ment for the operation of a hotel in
the employee's death. "The question judicial filing would run counter to the Srinagar between Regenta Hotels Pri-
of adoption is no longer open to dis- structure and intent of the Arbitration vate Limited and Hotel Grand Centre
pute," the court observed, adding that and Conciliation Act, 1996. Point. After alleging interference in
the railways could not disregard a bind- A Bench comprising Justice Dipankar hotel operations by certain partners of
ing judicial declaration. Datta and Justice Augustine George the firm, Regenta obtained ad interim

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