The Chairman, Neyveli Lignite Corporation Limited vs D. Visweswaran and The Collector

D. Murugesan, J.—All these Writ Appeals raise a common question as the Writ Petitions were allowed almost on identical grounds. The

Chairman, Neyveli Lignite Corporation is the appellant in all these Writ Appeals.

The lis arises under the following circumstances: The appellant Corporation is a public sector undertaking and its main activity is mining lignite

and generation of power. Land is in the nature of raw material for the Corporation. Over the periods, a total extent of 30000 acres of land have

been acquired from time to time for mining and other allied activities under the aegis of Government of Tamil Nadu under the Land Acquisition Act.

To soothe the land owners and to render the acquisition proceedings smooth, speedy and successful, the Corporation framed a scheme for offering

employment to one person for one family who is displaced by acquisition of land. The offer of employment is subject to the minimum eligibility for a

post and further subject to availability of vacancy. As the Corporation requires large extent of land for expansion of mining activities, the

Government of Tamil Nadu in the year 1981, acquired the lands in Aziz Nagar village. Insofar as the lands owned by the individuals, the provisions

of the Land Acquisition Act 1894 were invoked and the land owners apart from the payment of compensation, were made entitled to employment

opportunity in the Corporation subject to the conditions of the scheme framed for such employment.

It appears that forefathers, numbering approximately 100 families of the first respondent in each of the Writ Appeals were ex-criminal Tribes

and in order to rehabilitate them, a scheme was framed in the year 1911 by the British Government and under the said Scheme, they were settled

in an extent of 37.20 acres of land in R.S. No. 1 of Aziz Nagar a decade ago. During the course of the years, when the number of families

increased, the descendants of the original settlers started occupying the adjoining Government lands in R.S. Nos. 2 and 4 and raise some

superstructure. Major portion of the lands so acquired were not only in possession of the settlers but also in possession of the descendants and

outsiders who have encroached the adjoining lands.

Though the request of the erstwhile land owners whose lands were acquired under the provisions of the Land Acquisition Act and the settlers in

R.S. No. 1 was conceded by the Corporation for employment subject to the conditions of the Scheme, the request of the descendants of the

settlers who had occupied the adjoining lands in R.S. No. 2 and 4 of Aziz Nagar, was not accepted for employment. Hence, they approached this

Court for appropriate directions to the Corporation to appoint them as unskilled workers in the Corporation with all attendant benefits on the

ground that they belonged to families which were displaced from their land and building on account of the expansion of the mining activities of the

appellant Corporation.

By orders on various dates, the Writ Petitions were allowed almost with the following directions:

i. The petitioners shall submit their applications within two months from the date of receipt of copy of this order to the District Collector, Cuddalore

District and thereafter the District Collector with the assistance of the Land acquisition Tahsildar shall verify and scrutinize and forward the list of

eligible family members and names of the members with qualifications to the first respondent within a period of two months from the date of receipt

of the applications.

ii. The District Collector shall intimate the reasons to such of those persons, whose claims have not been accepted as bona fide and whose family

members is not eligible for the benefit under the displaced persons category.

iii. On receipt of the list sent by the District Collector, the first respondent shall make every effort to provide them suitable employment and

wherever necessary the first respondent-Corporation shall relax the age and qualification in favour of such member of the displaced family taking

into consideration of their long waiting and also the appointment is only for unskilled position.

Aggrieved by those orders, the appellant-Corporation has filed the above Writ Appeals.

We have heard Mr. N.A.K. Sarma, learned Counsel appearing for the appellant and Mr. P. Rajendran, learned Counsel appearing for the first

respondent in all the Writ Appeals.

Assailing the order passed in the Writ Petitions, Mr. N.A.K. Sarma, contended:

a) that the Writ Petitioners were occupants of certain lands in R.S. Nos. 2 and 4 in an area known as ""Aziz Nagar"", Vridhachalam Taluk;

b) that the lands in R.S. Nos. 2 and 4 are poromboke lands into which the Writ Petitioners and their forefathers had encroached more than 30

years ago and also put up constructions thereon;

c) that when the lands in R.S. Nos. 1, 2 and 4 in ""Aziz Nagar"" were sought to be acquired by the appellant-Corporation, proposals for

rehabilitation of the persons who would be displaced on account of such expansion activity were formulated;

d) that under the said proposals, persons in occupation of patta lands in R.S. No. 1 were granted certain benefits including the benefit of

employment for one member of each family, while persons displaced from R.S. Nos. 2 and 4 were given all the benefits except the benefit of

employment for one member, as they were only encroachers;

e) that persons who were displaced from patta lands in R.S. No. 1 could not be treated on par with those displaced from encroached land in R.S.

Nos. 2 and 4 and that therefore, the refusal to provided employment to one member of those families, was well founded:

To substantiate his contention, Mr. N.A.K. Sarma, learned Counsel appearing for the appellant relied upon a position of the Notes on the

discussions held by the Hon''ble Minister for Electricity on 20.3.1981 which reads as follows:

The MLA''s pleaded that in view of the agricultural background of the displaced persons, the number of educationally qualified persons will be

much less and that this condition might be relaxed and they may be considered for employment for earth work or similar jobs. If they cannot be

employed in Neyveli Lignite Corporation directly, they should be employed for such works by the contractors. They also pleaded that the 102

persons who were interviewed but not selected should be given special consideration for employment. They agreed that persons who occupy the

poromboke lands will not have claim for employment.

According to the learned Counsel for the appellant, there was a clear agreement and understanding, even under the Notes of discussions held

by the Hon''ble Minister for Electricity on 20.3.1981 that persons who occupied poromboke lands will not have claim for employment. Therefore,

the words ""displaced persons"" used in the said Notes of discussions could only be taken to mean those displaced from patta lands.

It is the further submission of the learned Counsel for the appellant that the finding of the learned single Judge that the Writ Petitioners were

displaced from their possession of the property in view of the acquisition proceedings, was also incorrect since acquisition proceedings were

initiated only against those who held patta lands and that no acquisition proceedings were initiated against the Writ Petitioners as they were only in

possession of encroached lands.

Learned Counsel for the appellant further submitted that the learned Judge was in error in taking judicial notice of an order of the Government

of Tamil Nadu in G.O.Ms. No. 656 Labour and Employment Department, dated 29.6.1978, which provided for employment assistance to

families displaced from their lands, as the same is not applicable to Public Sector Undertakings of the Government of India and that even if any

useful reference could be made to the same, the Government Order related only to those displaced on account of acquisition of land, as seen from

paragraph 2 of the Government Order.

Mr. N.A.K. Sarma, learned Counsel for the appellant also drew our attention to para 10 of the common counter affidavit filed by the appellant

Corporation in the Writ Petitions, to highlight the fact that in respect of families displaced from patta lands, compensation, as determined under the

Land Acquisition Acat, was paid after an award was passed by the Special Tahsildar and that in respect of poromboke lands, the appellant-

Corporation, paid an ex-gratia equivalent to the compensation paid to patta lands, only out of compassion and sympathy though no acquisition

proceedings were initiated against them. In para 15 of the another common counter affidavit filed by the appellant-Corporation, it is pointed out

that out of 42 Writ Petitioners, the parents of 23 petitions are/were in the permanent employment either in NLC or in the State Government and

that therefore, it is not as though they were deprived of the only source of sustenance, on account of displacement. The facilities provided by the

appellant-Corporation to the families of those displaced from poromboke lands, are also listed out in the letter No. 2210/CE/C/LA dated

29.4.1991 addressed to the Collector of South Arcot, Cuddalore and they are as follows:

The Aziz Nagar settlers were re-settled at Edaikkal near Ulundurpet during 1984, under special rehabilitation package.

1361 acres of land in Edaikkal was levelled and removed of all vegetation and each settler was given developed free house-sites of 5 cents each

with all back amenities.

Each settler irrespective of whether they were evicted from Natham or AWD lands were given cultivatable lands of 2 acres each, so that they

should not suffer without any income.

Each settler family who were living in AWD lands were paid ex-gratia for houses and house sites son par with those in the Natham lands and

they were allowed to take freely all the salvaged building materials.

Each settler family who were living in AWD lands and who have surrendered conditionally assigned lands to NLC were also paid ex-gratia at

the rate of Rs. 3,000/- acre for the lands. This is apart from the cost of lands deposited to the State Government. They were also paid housing

grant difference to make Rs. 6,000/- in each case.,

NLC has constructed two Training Centres, one carpentry unit and another weaving center unit so that they can engage themselves in such work

so as to earn their livelihood.

NLC has spent enormous amount on rehabilitation from 1984 upto 1990.

In the light of the above factual matrix, it is the contention of the learned Counsel for the appellant that poromboke lands were not covered by

the Minutes dated 20.3.1981 and 18.11.1993 and that persons displaced from patta lands cannot be equated with persons displaced from

poromboke lands and that the job opportunity is not a matter of right. Learned Counsel for the appellant also relied upon a judgment of a Division

Bench of this Court in The Chairman, Tamil Nadu Electricity Board and The Chief Engineer, North Chennai Thermal Power Project Vs.

Arulnathan and Others, for the proposition that "" the petitioners do not have any fundamental right to be provided with employment solely on the

ground that their lands have been acquired"".

Per contra, Mr. P. Rajendran, learned Counsel appearing for the first respondent in all the Writ Appeals contended:

a) that the forefathers of the Writ Petitioners belonged to a criminal tribe known as ""Kutra parambarai"" who were actually settled in the area in

question by the British Government, with a view to rehabilitate the tribe;

b) that the Government chose to issue patta in favour of some of them who were settled in R.S. No. 1, but the others settled in R.S. Nos. 2 and 4

could not be given patta;

c) that therefore, the Writ Petitions could not be termed as ""encroachers"" but could only be described as ""settlers"",

d) that neither the Writ Petitioners nor their forefathers were sought to be evicted from the land in question either under the Tamil Nadu Land

Encroachment Act, 1905 or under any other legislation, only on account of the fact that they were settlers and not encroachers;

e) that they had occupied the land and built houses and were in possession and enjoyment of the same for over 40 years, thereby acquiring

prescriptive title;

f) that the scheme for rehabilitation framed by consensus, aimed at providing relief to all ""displaced persons"" and that no distinction can be made

between one group and another within such a homogenous class;

g) that the Writ Petitioners were paid compensation, solatium and additional solatium etc., on par with the other persons displaced from patta lands

and that they were never treated differently;

h) that in the minutes of the meeting held on 18.11.1983, no distinction was sought to be made among the displaced persons on the ground now

raised by the appellant;

i) that from a list of 138 persons displaced from R.S. Nos. 2 and 4 furnished by the Rehabilitation Officer, 11 persons have already been provided

employment and that therefore, the remaining persons cannot be discriminated.

He drew our attention to para 7 of the common counter affidavit filed by the appellant in the Writ Petitions, which reads as follows:

The forefathers of the Writ Petitioners belonged to ex-criminal tribes from Veppur Village of Cuddalore District. During the British Regime, with

a view to rehabilitate these tribes, 100 such families were settled in a village called"" Aziz Nagar"" of Vridhachalam Taluk in the year 1911 and they

were looked after by a Deputy Superintendent of Police and a Special Tahsildar designated for the purpose. In course of time, some of the settlers

were allotted with lands to an extent of 37.20 acres in R.S. No. 1 of the said ""Aziz Nagar"" village. Gradually, the number of families in Aziz Nagar

increased to 450. Even though the original settlement was in respect of 100 families in an extent of 37.20 acres in R.S. No. 1, when the number of

families increased, the descendants of the original settlers spread out to adjoining Government lands viz., in R.S. Nos. 2 and 4 and built their super

structures.

Mr. P. Rajendran, also placed reliance on the judgment of the Apex Court in Dwarka Prasad and Others Vs. Union of India (UOI) and

Others, for the proposition that right to be considered for appointment/promotion on fair and equal basis without discrimination may be claimed as

a legal and fundamental right under Articles 14 and 16 of the Constitution (para 24)

We have carefully considered the submissions of the respective counsel. At the outset, we may point out that in matters of employment of the

persons displaced by acquisition of lands, no right is conferred on such persons to seek for employment either under the Constitution or under any

law. Even the land owners, whose lands are acquired under the provisions of Land Acquisition Act, are only entitled to compensation. Considering

the fact that for speedy, smooth as well litigation free acquisition, the Corporation had formulated a scheme for employment of one person from

one family of the land owners whose lands are acquired under the Central Act. Right for consideration of employment could be derived only from

the Scheme and not otherwise. Barring the scheme, nobody has a right muchless fundamental right for employment, solely on the ground that

his/her land had been acquired. As the families which were settled in an extent of 472.75 acres of land in R.S. No. 2 and 4 of Aziz Nagar village

under rehabilitation measure, also made a claim for employment, a meeting was convened for a discussion by the Hon''ble Minister for Electricity

on 20.3.1981. As much reliance is placed on the said meeting, we propose to extract entire minutes which reads as follows:

Notes on the discussions held by the Hon''ble Minister for Electricity on 20.3.1981.

Present: Hon''ble Minister for Electricity

Chief Secretary

Commissioner and Secretary

Industrial Department

Collector,

South Arcot District

Shri Thyagarajan, MLA

Cong(I)

Shri Thangaraju MLA

AIADMK

Chairman

Neyveli Lignite Corporation

Chief Personnel Manager

Neyveli Lignite Corporation

Senior Industrial Relations Manager

Neyveli Lignite Corporation Limited

Manager (Technical)

Neyveli Lignite Corporation Limited

Chairman, Neyveli Lignite Corporation, explained that the work in the II Thermal is disrupted from 26.2.1981 as the villagers have obstructed the

workers entering the work site. Similarly, the Neyveli Lignite Corporation wanted a portion of the poromboke land in Vadakkuvellur to be fenced

to store the machinery and equipment that are being received for the II Mine. This fencing work could not also be carried on due to obstruction by

the villagers. These obstructions are affecting time schedules of II Mine and Thermal station.

The Chief Secretary enquired about the implementation of the assurance given by Neyveli Lignite Corporation for employment of displaced

persons in Neyveli Lignite Corporation at the rate of one member from each family.

The Chairman, Neyveli Lignite Corporation, said that from the records of earlier discussions, it is seen that at no time there was a commitment for

employment of displaced persons at the rate of one from each family. The number of displaced families by the acquisition of lands for the two

projects, viz., II Thermal and II Mine and also the Mines Expansion Scheme is of the Order of 4826. This does not include those who have been

employed in Neyveli Lignite Corporation or elsewhere and those who were in occupation of assigned poromboke lands. The total number of

unskilled posts for the II Thermal and II Mine spread over 4 years will be only 1409 and 60% of this under the agreed reservation formula for

displaced persons would work out to 845.

We have already given employment to 312 displaced persons (upt) in 1980-81. The problem should have been considered on a long term basis

taking into account the overall position of the number of displaced persons, number of posts that might be available in the two projects

simultaneously coupled with the programme for rehabilitation. Even though there was no need for any post presently as activities on II Mines are

yet to start for want of land, we have recruited 312 persons from the displaced families belonging to the 3 villages of Therkumelur, Ammeri and

Koonankurichi.

Chairman, Neyveli Lignite Corporation also said that the work in the poromboke lands in the II Mines area to store the machinery and equipment

and also the diversions of the drain has to be completed before the monsoon as otherwise the project would get further delayed by atleast one

year. The revised schedule dates of II Mine and II Thermal station already stand shifted from October, 1983 to September, 1984.

The Hon''ble Minister said that this issue was discussed with the Corporation officials by him earlier when it was stated that the immediate problem

was with reference to the immediate need involving the three villages instead of taking all the villages together. There was also need to deal with the

situation in such a manner as not to escalate to a larger area in view of the agitation organised by the Agriculturists Association to avoid a law and

order problem. It was, therefore, decided that the cases relating to the displaced persons belonging to the three villages referred to above, might be

settled first and those belonging to the 1st and 2nd priorities were therefore considered for employment. The commitments made by Neyveli

Lignite Corporation, even not their record, should have been fulfilled at that time itself.

It was explained by Neyveli Lignite Corporation that out of 269, 102 persons were not selected as they did not satisfy even the relaxed

educational standards. Chairman, Neyveli Lignite Corporation, observed that the educational standard prescribed for the unskilled posts in Neyveli

Lignite Corporation is VIII Std., which itself is below the normal standard fixed in other organisation. Even this standard was diluted to that of V

Std., originally and relaxed further to ""ability to read and write"" in respect of this group.

The M.L.As pleaded that in view of the agricultural background of the displaced persons, the number of educationally qualified persons will be

much less and that this condition might be relaxed and they may be considered for employment for earth work or similar jobs. If they cannot be

employed in Neyveli Lignite Corporation directly, they should be employed for such works by the Contractors. They also pleaded that the 102

persons who were interviewed, but not selected should be given special consideration for employment. They agreed that persons who occupy the

poromboke lands will not have claim for employment.

The Minister and the Chief Secretary also suggested that special dispensation may be given to those 102 persons in view of the earlier assurance

given to them and in future recruitment the minimum educational qualification of V Std., may be insisted. Both the M.L.As. Agreed to this and that

those who do not satisfy this standard may be considered for employment under the contractors.

At this stage, Chairman, Neyveli Lignite Corporation, observed that the number of vacancies in unskilled posts that would be available during this

year, that is, 1981-82 for displaced persons will be only 247 and that if these 102 persons are to be considered, there will be only 143 posts

available for the balance part of this year i.e., 1981. The displaced persons who will be affected by the taking over of the lands for II Mine before

June,1981is about 839. Priorities will have, therefore, to be prescribed for employment of only 145 against the displacement of 839. This will also

leave only 286 jobs for the remaining large number of persons to be displaced subsequently in the remaining 2-3 years.

The Minister said that the Collector in consultation with the local people would furnish the priority list to Neyveli Lignite Corporation for

appointment against these 143 positions in Priority-I and II only. Priorities-III and IV ned not be taken up now. Those who were not given

departmental employment by Neyveli Lignite Corporation could be considered for employment under the Contractors in II Mine and II Thermal

Station works.

Summing up, the following conclusions have been arrived:

i) Neyveli Lignite Corporation cannot give employment to all the displaced persons, as the number of posts in the unskilled category for the II

Thermal and II Mine is only 1409 and the number available for displaced persons at 60% agreed quota will be only 845 which is to be spread

over a period of 4-5 years.

ii) The cases of the 102 persons who were not selected in the last batch will be reviewed for employment on the basis of recommendations from

the Collector.

iii) The minimum educational standard for further recruitment from displaced persons will be V standard.

iv) The Collector would prepare the priority list of displaced persons who satisfy that standard from the I and II priorities in respect of those who

will be displaced during 1981 in the five affected villages.

Vadakkuvellore.

Veppankurichi

Aziz Nagar

U. Mangalam

Uthangal.

v) The number of posts available for consideration, during this year is about 247, including the 102 to be reviewed.

vi)Those who are below the educational standard and could not be employed in Neyveli Lignite Corporation directly, could be considered for

employment under Contractors.

A perusal of the minutes of the said meeting would show that at that time there was possibility of employment of 1409 unskilled employees for

II Thermal and II Mine spread over four years and 60% of the said posts for the displaced persons would work out to 845 and the Corporation

had already given employment to 312 displaced persons upto 1980-81 from three villages of Therkumelur, Ammeriand Koonankurichi only. It

was also agreed that persons who occupy the porombokle land will not have claim for employment.

As the employment is governed by the Scheme, there is no automatic right for employment, even for the family member whose lands are

acquired and in that event, the encroacher cannot have a better right to seek for an automatic right for appointment in the Corporation. From the

materials placed, it is seen that the total extent of land in which the ex-criminal tribes were settled in the year 1911 is 37.20 acres that too in R.S.

No. 1, Aziz Nagar village. Pattas were also issued in respect of those lands. Of course, over the period of years, the descendants of the settlers

had encroached a vast extent of land nearly 472.75 acres of Government poromboke land in R.S. Nos. 2 and 4. Factually, no patta was granted

to any of them and their right to possess the land was not recognised by the Government. Even as per the Government, the lands encroached upon

by the descendants of the settlers and other outsiders were vest with the Government as they were poromboke lands. Hence, the Government did

not invoke the provision of the Central Act for acquiring those lands. As a Scheme was framed for rehabilitation, not even the provision of the

Tamil Nadu Land Encroachment Act was invoked to evict them. It is the specific case of the appellant Corporation and in fact it is not in dispute

that in respect of the families displaced from patta lands, compensations for the lands were paid and Displaced Persons occupied the lands settled

in R.S. No. 1 were paid ex-gratia equivalent to the compensation paid to patta lands. In addition to the above, the settlers and all other displaced

persons were re-settled at Ulundurpet during the year 1984 under special rehabilitation package. 1361 acres of land in Edaikkal village was

levelled and removed of all vegetation and each settler was given developed free house sites of 5 cents each with all basic amenities and each

settler were given cultivable lands of 2 acres each and each settler family who were living in AWD lands were paid ex-gratia for houses and house

sites on par with those in the natham lands and they were allowed to take freely all the salvaged building materials and each settler family who were

living in AWD lands and who have surrendered conditionally assigned lands to Neyveli Lignite Corporation were also paid ex-gratia at the rate of

Rs. 3,000/- acre for the lands and they were also paid housing grant difference to make Rs. 6,000/- in each case. Rehabilitation Package also

included construction of two training centres, one carpentry unit and another weaving center unit ;so that the settlers can engage themselves in such

work so as to earn their livelihood.

Our attention was drawn by the learned Counsel appearing for the first respondent to the order of the Government made in G.O.Ms. No. 656,

Labour and Employment Department dated 29.6.1978, directing that all Public Sector Undertaking may recruit without reference to Employment

Exchange atleast one member of each family which is displaced on account of acquisition of land for any project of such Public Sector

Undertakings etc., provided that the acquired land should have been only or major source or sustance for that family and contended that the first

respondent in each of the Writ Appeal are entitled to employment as per the said Government Order. The said Government Order relates to

Public Sector Undertakings under the control of the Government of Tamil Nadu and the same is not applicable to the Corporation. That apart, the

Government Order is only directory and not mandatory as the employment in the Corporation is only governed by the Scheme. Reference was

also made to the meeting held on 18.11.1983 by the Commissioner and Secretary to Government, Industries Department regarding rehabilitation

of families displaced by acquisition of lands in Aziz Nagar for the Corporation. Even in the said meeting it was only suggested that the ex-criminals

cannot be thrown out without making alternate arrangements as in total 400 and 0dd families would be affected and hence, the Corporation may

provide houses for them. Such a Scheme was framed and they were settled. The meeting does not discuss or suggest any provision for

employment of occupants of lands in R.S. Nos. 2 and 4.

Our attention is also drawn to the proceedings of the District Collector dated 25.3.1991 addressed to the Chief Engineer(Civil and Land

Acquisition) Neyveli Lignite Corporation for offer employment to the families of the displaced persons in R.S. Nos. 2 and 4 of Aziz Nagar village.

That was only a recommendation of the District Collector and the same has no binding force on the Corporation. The law is well settled that

nobody has a right muchless fundamental right for employment solely on the ground that they were displaced from the land in their occupation. The

land owners whose patta lands were acquired under Central Act form a separate category and the settlers who were settled in R.S. No. 1 of Aziz

Nagar village form another category and in addition to the above, the descendants and outsiders who have encroached the adjacent land viz., R.S.

Nos. 2 and 4 form a different and distinct category, and consequently, they cannot plead violation of Article 14 and discrimination. Moreover, the

judgment relied on by the learned Counsel appearing for the first respondent in each of the Writ Appeal in Dwarka Prasad and Ors. v. Union of

India and Ors. relates to appointment/promotion on fair and equal basis without discrimination. In that case, different quotas were fixed for

different and distinct classes of feeder posts for balancing the chances of promotion and the challenge was not entertained by the Supreme Court

and in our considered view, the said judgment cannot be made applicable in a case where the patta land holders, settlers and the encroachers form

a different and distinct categories for their entitlement to employment.

For all the above reasons, we are of the view that except the family members of the owners of patta lands and the settlers, the displaced

persons from the lands in R.S. Nos. 2 and 4 are not entitled to the benefit of the scheme for employment as a matter of right in the Corporation.

Accordingly, all the Writ Appeals are allowed and the orders in Writ Petitions are set aside. No costs. Consequently, all connected Writ

Miscellaneous Petitions are closed.