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1995 Supreme(SC) 479

SUPREME COURT OF INDIA
BEFORE R.M. SAHAI AND S.B. MAJMUDAR, JJ.
BUTU PRASAD KUMBHAR AND OTHERS
Versus
STEEL AUTHORITY OF INDIA LTD. AND OTHERS
Writ Petition (C) No. 167 of 1992(Under Article 32 of the Constitution of India}
Decided on 303-1995
Advocates appeared:
Prashant Bhusan, Advocate, for the Petitioners; Dipankar P. Gupta, Solicitor General (S.K. Mehta, G.M. Mishra and Dhurv Mehta, Advocates, with him) for Respondents 1 and 2. Ms Kirti Mishra, Advocate, for Respondents 3 and 4. N.N. Goswami, Senior Advocate (Y.P. Mahajan and A.K. Sharma, Advocates, with him) for the Union of India.

Advocates:
A.K.SHARMA, Dhruv Mehta, DIPANKAR GUPTA, G.M.MISHRA, KIRTI MISHRA, N.N.GOSWAMY, Prashant Bhushan, S.K.MEHTA, Y.P.MAHAJAN

Headnote:

Land Acquisition Act, 1894 – Constitution of India - Article 32 - Articles 14 and 16 - Article 21 - Employment - Jobs In Steel Plant - Rourkela Steel Plant, one of largest steel plants - When project was in offing there was probably resistance by local residents, therefore, State Government issued statement that displaced persons would be given alternative sites for farming and they would be given jobs in steel plant - According to petitioners hopes of displaced persons were belied as after steel plant was constructed workers were employed from outside and no offer of employment was made to poor displaced tribals - Petitioners claim that when then President of India visited Rourkela to inaugurate first blast furnace of Rourkela Steel Plant a representation was made to him by Rourkela Displaced Persons Welfare Committee highlighting their grievances and explaining that alternative sites offered to them were just an eyewash as they were at a distance of about 20 miles from resettlement colonies and it was impossible for displaced persons to travel to and fro and undertake any agricultural operations - It was also pointed out that in these circumstances the only alternative was to afford gainful employment to displaced persons in steel plant – Held, Even though public sector undertaking because of being overstaffed is being put to great strain and even though Government of India had taken a policy decision as far back as 1986 not to give employment to anyone in future, yet respondent Steel Plant after verification has found 247 persons eligible for being given employment - They are willing to abide by it - He has pointed out that in meantime another dam has been constructed and persons who had been displaced have also been required to be accommodated and, therefore, a scheme has been framed in which 80% displaced in consequence of Mandira Dam and 20% out of 247 are being given employment since 1993 - He stated that nearly 50 persons out of 247 have already been absorbed – Court is of the opinion that giving employment to 20% may take longer time and since age bar has been put at 35 it would be appropriate if SAIL expedited absorption of these persons by increasing their number from 20% to 40% each year - Observations made in respect of 247 persons identified by respondents – Petition Dismissed.

JUDGMENT

R.M. SAHAI, J.- The question that arises for consideration in this petition filed under Article 32 of the Constitution of India, by the petitioners, who were residents of villages which formed part of Rourkela, is whether the respondents were bound to give employment to all the erstwhile residents and even their descendants and in any case to treat them preferentially for employment as they or their members of families were displaced due to setting up of Rourkela Steel Plant even though they were given market value for their land acquired.

2. Rourkela Steel Plant, one of the largest steel plants was conceived in the year 1954. It was decided to set it up at Rourkela which at that time consisted of small villages and for this purpose nearly 20,000 acres of land were acquired under the Land Acquisition Act. Compensation was paid. When the project was in offing there was probably resistance by local residents, therefore, the State Government issued statement that the displaced persons would be given alternative sites for farming and they would be given jobs in the steel plant. According to petitioners the hopes of the displaced persons were belied as after the steel plant was constructed workers were employed from outside and no offer of employment was made to the poor displaced tribals. The petitioners claim that when the then President of India visited Rourkela to inaugurate the first blast furnace of the Rourkela Steel Plant in 1959 a representation was made to him by the Rourkela Displaced Persons Welfare Committee highlighting their grievances and explaining that the alternative sites offered to them were just an eyewash as they were at a distance of about 20 miles from the resettlement colonies and it was impossible for the displaced persons to travel to and fro and undertake any agricultural operations. It was also pointed out that in these circumstances the only alternative was to afford gainful employment to the displaced persons in the steel plant. It is pointed out that in 1981 after prolonged discussions an agreement was reached between the Rourkela Steel Plant and the displaced residents of one of the resettlement colonies, namely, Jhirpani Resettlement Colony and it was agreed that the displaced persons would be given employment at the earliest under the T.N. Singh formula, yet the petitioners all of whom are of Jhirpani Resettlement Colony were not given any employment. According to petitioners the sympathetic sentiments were echoed even in the meeting held on 29-11-1988 but the petitioners and various other unemployed displaced persons numbering nearly 1500 whose list has been attached as Annexure A to the writ petition could not secure any employment. In the counter-affidavit filed by the Additional Chief Personnel Manager of Rourkela Steel Plant of Steel Authority of India Limited (for short SAIL) these allegations are denied and it is stated that the minutes dated 25-8-1981 have been fully implemented as even though only approximately 2900 families were affected by the land acquisition yet the Company has employed 4557 displaced persons. It is further averred that in accordance with the minutes of the meeting held on 25-8-1981, 171.50 acres of land was surrendered to the State Government for allotment to the residents of Jhirpani Resettlement Colony and had even been handed over by the respondents to the Government. It is stated that this petition was filed in 1952, that is, 30 to 35 years after the acquisition and now it is even the second and third generation who are seeking employment on the basis of descent which is violative of Articles 14 and 16 of the Constitution. The affidavit further states that the Company has shared to the extent of 50% the expenditure incurred in the resettlement/rehabilitation of the families in providing infrastructure and other amenities like roads, water supply, health care, education facilities, school etc. All the displaced persons were given additional amount as hous








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