Supreme Court Dismisses Contempt Proceedings Against Steel Authority of India Ltd. — Employment Scheme for Displaced Persons Clarified. The court found that the employment scheme for displaced persons had been withdrawn in 1986, and the Steel Authority was only required to consider category (ii) persons for employment.

In Favour of Accused
  • 0
Judgement Image
Font size:
Print

Case Note & Summary

The dispute arose from the Steel Authority of India Ltd.'s alleged non-compliance with court orders regarding the employment of displaced persons from the Bokaro Steel Plant project. The High Court of Jharkhand had issued contempt notices against the Steel Authority for not adhering to earlier judgments that mandated employment for displaced families. The Supreme Court noted that the land for the project was acquired with an understanding that one member from each displaced family would be employed. However, it was revealed that a government memorandum from 1986 had withdrawn this employment scheme, a fact that had not been presented in previous litigations. The court highlighted that despite the project being completed over 40 years ago, litigation continued, which was deemed an abuse of the court process. The Supreme Court directed that the 970 persons in category (ii) would be considered for employment, emphasizing that this did not guarantee them appointments but would give them preference when vacancies arose. The court dismissed the contempt proceedings and set aside the High Court's earlier order, aiming to conclude the ongoing disputes regarding employment for displaced persons.

Headnote

A) Contempt of Court - Non-compliance with Court Orders - Steel Authority of India Ltd. not in contempt for employment scheme - Contempt proceedings dismissed - The Supreme Court clarified that the employment scheme for displaced persons was withdrawn in 1986, and the company was only required to consider category (ii) persons for employment, not guarantee it. The court emphasized the need to end ongoing litigation regarding employment claims from displaced persons (Paras 10-14).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the Steel Authority of India Ltd. was in contempt for not complying with earlier court orders regarding employment of displaced persons.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court set aside the High Court's judgment and order dated 3/10.01.2007, dismissed the contempt proceedings, and directed that the 970 persons in category (ii) be considered for employment, with preference given when vacancies arise.

Law Points

  • Contempt of Court
  • Employment Rights
  • Public Sector Employment
  • Rehabilitation of Displaced Persons
Subscribe to unlock Law Points Subscribe Now

Case Details

2008 LawText (SC) (03) 153

Appeal (civil) 1774 of 2008

2008-03-05

A.K. Mathur, Altamas Kabir

Steel Authority of India Ltd.

Deby Lal Mahato & Ors.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Contempt proceedings regarding employment of displaced persons.

Remedy Sought

Steel Authority of India Ltd. sought to dismiss contempt proceedings.

Filing Reason

Alleged non-compliance with court orders regarding employment.

Previous Decisions

High Court issued contempt notices for non-compliance with earlier orders.

Issues

Whether the Steel Authority of India Ltd. was in contempt for not complying with earlier court orders regarding employment of displaced persons.

Submissions/Arguments

Appellant argued that the employment scheme was withdrawn in 1986 and they were not obligated to provide employment. Respondents contended that the Steel Authority failed to comply with court orders regarding employment.

Ratio Decidendi

The court held that the employment scheme for displaced persons was withdrawn in 1986, and the Steel Authority was only required to consider category (ii) persons for employment, not guarantee it.

Judgment Excerpts

The Steel Authority shall prepare a list containing names of displaced persons in accordance with clause (1) of the proposed scheme within two months of the receipt of the certified copy of this judgment. Preference will be given to local displaced persons of Bokaro as per Company’s policy.

Procedural History

The appeal was filed against the High Court's contempt order regarding employment of displaced persons, following earlier judgments that mandated employment for displaced families.

Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows Reinstatement of Technician Grade-II Employees in UPPCL — CCC Certificate Possession at Interview Sufficient. The Court held that the requirement of possessing a CCC certificate at the time of interview, as per the amended regu...
Related Judgement
High Court Madras High Court Allows Bank's Writ Petition for Registration of SARFAESI Sale Certificate Despite Prior Sale Deeds by Mortgagor. Sub-Registrar Directed to Register Sale Certificate as Unauthorised Sales by Mortgagor Do Not Bind Secured Creditor.