Chhattisgarh High Court

Policy prevalent at the time of acquisition governs rehabilitation and employment rights of land oustees.

DEVASHISH vs SOUTH EASTERN COALFIELDS LIMITED

Chhattisgarh High CourtJUDGMENT: March 17, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

In 2005, the State Government initiated land acquisition for the 'Saraipali Open Cast Project' of South Eastern Coalfields Limited (SECL).

Source reference: para 2

An award was passed on September 6, 2007

Source reference: para 2

The petitioners' land, originally recorded in the name of Late Madhosay, was among the acquired properties

Source reference: para 3

SECL had initially agreed to provide employment to one family member of each land oustee as per the Rehabilitation Policy of 1991

Source reference: para 2

SECL later processed employment claims under the 2012 Rehabilitation and Resettlement Policy of Coal India Limited, which disqualified land oustees holding less than 2 acres of land

Source reference: para 2

consequently, the petitioners' applications were rejected, leading them to seek a direction for employment under the 1991 Policy

Source reference: para 2
02

Issues

Whether the rehabilitation and employment of land oustees should be governed by the policy prevalent at the time of land acquisition (1991 Policy) or a policy introduced subsequently (2012 Policy)

Source reference: para 2, 7

Whether the denial of employment to land losers based on land-size criteria introduced retrospectively is violative of the Constitution of India

Source reference: para 8, 10
03

Law Applied

Rehabilitation Policy of 1991 issued by the erstwhile State of Madhya Pradesh

Source reference: para 2

fundamental rights enshrined in Articles 14, 15, and 21 of the Constitution of India

Source reference: para 8

precedent set in Pyarelal vs. South Eastern Coalfields Ltd. and Others (WPC No. 3076 of 2016), which held that the right to rehabilitation is an extension of the right to life under Article 21 and that accrued rights regarding employment cannot be extinguished by subsequent changes in policy

Source reference: para 3, 8
04

Reasoning

The Court observed that since the acquisition proceedings were initiated in 2005 and the award was passed in 2007, the 1991 Policy was the applicable framework.

Source reference: para 7

The 2012 Policy was introduced long after the petitioners' rights had accrued and therefore could not be applied to their detriment.

Source reference: para 7

Applying the reasoning from Pyarelal, the Court noted that the benefit of rehabilitation is a "logical corollary" of Article 21, and its denial is discriminatory under Articles 14 and 15.

Source reference: para 8

The Court further highlighted that the Pyarelal judgment, which mandated consideration based on the policy active at the time of acquisition, had attained finality as it was not challenged by SECL.

Source reference: para 9

the respondents' reliance on the 2-acre minimum landholding requirement of the 2012 Policy was legally unsustainable.

Source reference: para 10
05

Holding

The Court quashed the orders passed by SECL rejecting the petitioners' claims.

It held that the petitioners are entitled to have their claims considered under the 1991 Policy.

Source reference: para 10

The Court directed the respondents to consider the petitioners' claims for rehabilitation/employment strictly in light of the Pyarelal judgment within 45 days from the receipt of the order.

Source reference: para 10

The writ petition was disposed of with no costs.

Source reference: para 11
Chhattisgarh High Court

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DEVASHISHvsSOUTH EASTERN COALFIELDS LIMITED

Chhattisgarh High Court · March 17, 2026

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