Case Note & Summary
The dispute pertains to the rehabilitation of land oustees whose lands were acquired between 1984-85 and 1992-93 for the Sambalpur-Talcher Rail Link Project. The Railway Board formulated policies on 24 November 1987, 10 November 1989, and 8 December 1989, providing for preferential treatment in employment to displaced persons. The Central Administrative Tribunal, Cuttack Bench, directed that land oustees who applied and met qualifications need not undergo the selection procedure. The High Court of Orissa affirmed this view. The Union of India appealed to the Supreme Court, arguing that the figures were erroneous and that the policy required fulfillment of conditions. The Supreme Court directed the appellants to provide details, and an additional affidavit revealed that out of 9036 families, 2805 applied, 652 were shortlisted, 553 appeared for written test, 110 cleared, 76 were offered employment, and 66 joined. The Court held that the policy does not exempt land oustees from the selection process; they must fulfill qualifications and be found suitable. The Tribunal exceeded its jurisdiction by substituting its own directions for the policy. The appeals were allowed, setting aside the Tribunal and High Court orders, but the Court directed that the 82 vacant posts be filled from the remaining eligible land oustees within six months, and that the appellants consider age relaxation for those who became overage.
Headnote
A) Service Law - Preferential Employment - Land Oustees - Railway Board Policy - The policy for preferential treatment in employment to land oustees does not exempt them from undergoing the selection process; they must fulfill qualifications and be found suitable by recruitment committees. (Paras 1-10) B) Administrative Law - Tribunal's Jurisdiction - Substituting Policy - The Tribunal exceeded its jurisdiction by directing that land oustees need not undergo selection, effectively substituting its own directions for the policy formulated by the Union Government. (Paras 9-10)
Issue of Consideration
Whether land oustees are entitled to employment without undergoing the selection process under the Railway Board's policy for preferential treatment.
Final Decision
The Supreme Court allowed the appeals, set aside the orders of the Tribunal and the High Court, and directed that the 82 vacant posts be filled from the remaining eligible land oustees within six months, with age relaxation for those who became overage.
Law Points
- Preferential treatment in employment does not exempt from selection process
- Policy conditions must be fulfilled
- Tribunal cannot substitute policy directions



