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, subject to conditions including fulfillment of qualifications and suitability by recruitment committees. The Central Administrative Tribunal, Cuttack Bench, by order dated 20 February 2002, directed that land oustees who applied and met educational qualifications and age requirements need not undergo the selection procedure stipulated in the employment notice dated 31 July 1998. The High Court of Orissa affirmed this view. The Union of India appealed to the Supreme Court, arguing that the figures relied upon by the Tribunal and High Court were erroneous. The Supreme Court directed the appellants to provide detailed data, which revealed that out of 9036 families, 2805 applied, 652 were shortlisted, 553 appeared for the written test, 110 cleared, 76 were offered employment, and 66 joined. The Court held that the policy clearly requires candidates to fulfill qualifications and be found suitable by recruitment committees, and the Tribunal exceeded its authority by substituting its own directions for the policy. The Supreme Court allowed the appeals, setting aside the orders of the Tribunal and High Court, and directed the Railway Administration to consider the cases of the remaining eligible land oustees in accordance with the policy and within a period of four months.
Headnote
A) Service Law - Preferential Employment - Land Oustees - Railway Board Policy - The policy for offering employment to displaced persons 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 Central Administrative Tribunal exceeded its jurisdiction by directing that land oustees need not undergo the selection procedure, 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, setting aside the orders of the Central Administrative Tribunal and the Orissa High Court. The Court directed the Railway Administration to consider the cases of the remaining eligible land oustees in accordance with the policy and within a period of four months.
Law Points
- Preferential treatment in employment does not exempt from selection process
- Policy conditions must be fulfilled
- Tribunal cannot substitute policy directions



