Service law – Voluntary Retirement Scheme – Allotment of quarters – Voluntary Retirement Scheme (VRS) by a Steel Plant-unit of appellant – Respondents opted for VRS – Subsequently the Steel Plant floated a Scheme for allotment of quarters to such exemployees wherein employee’s allotted official quarters were allowed to occupy such quarters on license basis for a period of 22 months after taking VRS – Respondents allotted flats under the said Scheme – Thereafter, another Scheme of 2002 floated by the Steel Plant, contemplating allotment of houses on long term basis (33 years) to serving employees – Challenge to, by ex-employees – Issuance of direction to the Steel Plant to consider the case of the respondents for allotment of quarters in their occupation on long term basis – On appeal, held: Scheme of 2002 was valid for three months and its operation was not extended – It was applicable only to regular/serving employees and not to ex-employees – Respondents were not vested with any right for consideration of their cases for allotment on long term lease – In the additional affidavit dt. 22.1.2018, the appellant stated that today any long-term lease of quarters built/maintained by the Steel Plant was not feasible and there would be a shortage of quarters in immediate future and new constructions would have to be raised to meet the increasing demand for accommodation – In view thereof, appellant cannot be compelled to grant any long term lease of official quarters to the respondentsits ex-employees – Order of the High Court set aside – However, respondents directed to vacate the possession of the quarter on expiry of 33 months – Subsequent events.
Disposing of the appeals, the Court
HELD: 1.1 “Sail Scheme for Leasing of Houses to Employees, 2002” was valid for a period of three months. The operation of it had not been extended. Under the said Scheme of 2002, ex-employees, to which category the respondents–writ petitioners belong, were not vested with any right for consideration of their cases for allotment on long-term lease. In fact, the lease deed between the State of Orissa and the appellantSAIL makes it very clear that the lands can be used only for the Steel plant and for the purposes ancillary thereto and that the appellant shall not use the land for any other purpose except with the previous sanction of the Government. [Para 12][465-GH; 466-A]
1.2 “Sail Scheme for Leasing of Houses to Employees, 2002” was introduced in the year 2002. Considerable time has elapsed in the meantime. The Scheme of 2002 was applicable only to regular/serving employees and not to ex-employees. In the long period of interval that has been occasioned by the pendency of the instant litigation the very basis for introduction of the Scheme of 2002 has changed and the facts now stated in the additional affidavit of the appellant would indicate that today any long-term lease of quarters built/maintained by the RSP is not feasible. In fact, according to the appellant, there would be a shortage of accommodation/quarters in the immediate future and, perhaps, new constructions will have to be raised to meet the increasing demand for accommodation on account of increase of production levels of the RSP. [Para 13][466-B-D]
1.3 In a situation where no legal right can be understood to have been vested in the respondents-writ petitioners under the Scheme of 2002 and operation of the said Scheme of 2002 today is not considered feasible or necessary by the appellant on account of the reasons stated in the additional affidavit, it cannot be seem how the appellant can be compelled to grant any longterm lease of the official quarters in the RSP to the respondentswrit petitioners who are its ex-employees. Such subsequent facts and developments that have taken place during the interregnum would certainly be material in moulding the relief(s) and answering the issues arising before this Court. In view therof, no relief can be afforded to the respondents–writ petitioners, at this point of time. The order of the High Court is set aside but at the same time it is directed that the respondents-writ petitioners (53 in number) or their legal heirs, as may be, be allowed to remain in occupation of the quarters for a period of 33 (thirty three) months with effect from today, on the expiry of which they will handover vacant and peaceful possession of the said accommodation/quarter to the competent authority of the RSP. [Paras 14-15][466-E-F, G-H]
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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