Case: Butu Prasad Kumbhar Vs. Steel Authority of India Ltd

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 20000 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 from and undertake any agricultural operations. It was also pointed out that in the 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 that the displaced persons would be given em- ployment 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 29th November 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 25th August 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 25th August 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 housing subsidy of Rs.200-400/- per family and reclamation subsidy of Rs.200/- per acre of land.company has further stated to have provided basic development facilities to the peripheral areas including the resettlement colonies and has incurred huge expenditure. It has been pointed out that due to all this pressure the company had to cm ploy 22538 persons as against the requirement of 19500.3. What is described as T.N. Singh Formula shall be clear from the letter dated 25th July 1973 which is extracted belowreference to the letter cited above, I am to say that there is no specific scheme of Govt. to provide employment to the displaced persons of Rourkela in the H.S.L. Rourkela. However , Shri T.N. Singh the then Steel Minister of Govt. of India during course of discussion, advised that atleast one person of each displaced family may be provided job in Rourkela Steel Plant. Accordingly Rourkela Land Organisation Rourkela has prepared family history of displaced after spot inquiry. Such list has also bow available to the local employment exchange as well as H.S.L. to consider their cases for appointment inwas thus no scheme for employing every displaced person. But in view of the press statement of the State Government the then Union Minister considered it reasonable that the respondents should employ in the Plant at least one member of each family. Whether such assurance or decision was legal and constitutional or not but it was certainly fair and in the larger interest of displaced persons. Its compliance as averred in the counter affidavit could not be seriously disputed.

Court's reasoning:
Needless to say that petitioners or their ancestors were not deprived of their land without following the procedure established in law. Their land was taken under the Land Acquisition Act. They were paid compensation for it. Therefore, the challenge raised on violation of Article 21 is devoid of any merit. Even otherwise the obligation of the State to ensure that no citizen is deprived of his livelihood does not extend to provide employment to every member of each family displaced in consequence of acquisition of land. Rourkela Plant was established for the growth of the country. It is one of the prestigious steel plants, It is established in public sector. The Government has paid market value for the land acquired. Even if the Government or the steel plant would not have offered any employment to any person it would not have, resulted in violation of any fundamental right yet considering the poverty of the persons who were displaced both the Central and the State Government took steps to ensure that each family was protected by giving employment to at least one member in the Plant. We fail to appreciate how such a step by the Government is violative of Article 21. The claim of the petitioners that unless each adult member is given employment or the future generation is ensured of a preferential claim it would be arbitrary or contrary with the constitutional guarantee is indeed stretching Article 21 without any regard to its scope and ambit as explained by this Court. Truly speaking it is just the otherwise. Acceptance of such a demand would be against Article 14.The learned Solicitor General however stated that even though the public sector undertaking because of being over- staffed is being put to great strain and even though the Government of India had taken a policy decision as far back as 1986 not to give employment to any one in future, yet the 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 die meantime another darn has been constructed and the 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. We are of the opinion that giving employment to 20% may take longer time and since the age bar has been put at 35 it would be appropriate if the SAIL expedited the absorption of these persons by increasing their number from 20% to 40% each year.