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2026 Supreme(Online)(Chh) 16068

HIGH COURT OF CHHATTISGARH AT BILASPUR
Rakesh Mohan Pandey, J
KRISHNA KUMAR – Appellant
Versus
SOUTH EASTERN COALFIELDS LIMITED – Respondent
WPS No. 3786 of 2022



Advocates:
For the Appellants/Petitioners: Chandresh Shrivastava
For the Respondents: Sudhir Kumar Bajpai

Land oustees are entitled to rehabilitation and employment benefits based on the policy in force at the time of land acquisition; subsequent policy changes cannot extinguish these accrued rights, as such rights are linked to Articles 14, 15, and 21 of the Constitution.

Headnote:The case involves land acquisition under the Coal Bearing Areas (Acquisition and Development) Act, 1957, where the petitioner sought employment benefits based on the Rehabilitation Policy of 1991, which was prevalent at the time of acquisition in 2004. The respondents rejected the claim by applying the Rehabilitation and Resettlement Policy of Coal India Limited, 2012, which required a minimum land holding of 2 acres for employment eligibility. The court found that the policy in force at the time of acquisition must govern the claims of land oustees. The primary issue is whether a subsequent change in rehabilitation policy can extinguish the accrued rights of land oustees to receive employment based on the policy active during the acquisition of their land. The court reasoned that the right to rehabilitation and employment is a logical corollary of Article 21 of the Constitution of India, and denying such rights based on a later policy is violative of Articles 14, 15, and 21 of the Constitution. The order dated 16.02.2022 passed against the petitioner by the SECL is hereby quashed. The SECL/respondents are directed to consider the claim of the petitioner within a period of 45 days from the date of receipt of a copy of this order.

Table of Content
1. land acquisition process and the dispute over which rehabilitation policy (1991 vs 2012) applies to the land oustee. (Para 1 , 2)
2. competing arguments regarding the applicability of the policy prevalent at the time of acquisition versus the current policy. (Para 3 , 4)
3. determination that the policy in force on the date of acquisition governs the rights of the land oustee. (Para 5 , 6 , 7 , 9)
4. rehabilitation rights as a corollary of article 21 and protection against arbitrary policy changes under articles 14 and 15. (Para 8)
5. quashing of the rejection order and direction to reconsider the claim based on the applicable acquisition-date policy. (Para 10 , 11)

Order on Board

1. The petitioner has filed this petition seeking the following relief(s):-

“10.1 The Hon’ble Court may kindly be pleased to call for the entire record pertaining to the case of the petitioner.

10.2 The Hon’ble Court may kindly be pleased to quash the impugned order dated 16.02.2022 (Annexure P-1) issued by the respondent no. 4.

10.3 The Hon’ble Court may kindly be pleased to direct the respondent authorities to consider the case of the petitioner for grant of employment in lieu of his land acquired by the respondents as per nomination.

10.4 Any other relief, which this Hon’ble Court may deems fit and proper may also be awarded to the petitioner including the cost of the petition.”

2. The Central Government had initiated land acquisition proceedings in the year 2004 for extension of Dipka Project of the respondent/SECL. The lands of village Malgaon Tehsil- Katghora District Korba was acquired by the Central Government under the Coal Bearing Areas (Acquisition and Development) Act, 1957 (in short CBA Act) for the Dipka Expansion Coal Mines Project of Dipka Area SECL. In this regard for the said acquisition a notification u/s 4 of the C.B.A. Act, 1957 was issued on 12.02.2001 and notification u/s 7 of the C.B.A. Act, 1957 was issued on 17.02.2004 and notification u/s 9 of the C.B.A. Act, 1957 was issued on 24.11.2004 by the Central Government and those notifications were published in the official gazette.

Upon publication of the notification in the official gazette u/s 9 of the said Act, the land and right over the land vested absolutely with the Central Government, free from all encumbrances. In terms of Section 11 of the above Act, the above referred land and right vested with the company i.e. S.E.C.L.

It was agreed by the SECL to provide employment to one of the family members of each land oustee as per the Rehabilitation Policy of 1991 issued by the erstwhile State of Madhya Pradesh. However, subsequently employment was offered according to the Rehabilitation and Resettlement Policy of Coal India Limited, 2012 and authorities failed to consider claims of land oustees according to Rehabilitation Policy of 1991, which was prevalent at the time of land acquisition.

According to the Policy of 2012, the land oustees having land less than 2 acres would not be entitled to get employment.

The petitioner as such preferred WPS No. 6359/2021 which was disposed of by the High Court directing the respondents to consider the claim of the petitioner in accordance with rules, regulations and policy governing the field.

The application/representation of the petitioner has been rejected by the SECL authorities. The petitioner has filed this petition seeking a direction to the respondent authorities to provide employment according to the Rehabilitation Policy of 1991, which was in existence at the time of land acquisition. The petitioner has also sought relief to quash the order passed by the SECL authorities, whereby his claim has been rejected.

3. Mr. Chandresh Shrivastava, learned counsel appearing for the petitioner would submit that the issue involved in the present case is no more res integra. He would contend that a similar issue was raised in the matter of Pyarelal vs. South Eastern Coalfields Ltd. and Others and connected matters pass

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