Authority: High Court of Judicature at Madras (Justice P.T. Asha)

Order Date: 08-07-2026

Case Overview

  • Petitioners: A group of land‑losers (named K. Baskaran, P. Chandrasekaran, G. Mohan, K. Munusamy, V. Sampath, S. Malathi, K. Sujatha, A. Somasekar, D. Sriram, D. Murugan, K. Saranya) filed multiple writ petitions (WP No. 26212 of 2023, WP No. 4326 of 2025, WP No. 4415 of 2025, WP No. 26060 of 2024, and several WMPs) under Article 226.
  • Respondents: State of Tamil Nadu (Industries Department), District Collector, Ranipet, The Director/HR of Bharat Heavy Electricals Ltd (BHEL), Executive Director BAP/BHEL, Ranipet, and Indira Gandhi Industrial Complex Industrial Service Co‑op Society Ltd (the 5th respondent).
  • Relief sought: Quash the order dated 20‑July‑2023 issued by the 5th respondent and direct BHEL (the 4th respondent) to absorb the petitioners as permanent employees from 10‑June‑2019, on parity with employees already absorbed by the 5th respondent.
  • Historical background: In 1980, ~1,400 acres of land in Narasingapuram, Mukundarayapuram, Vadakkal, Lalapet and Seekkarajapuram (then North Arcot, now Ranipet) were acquired by BHEL for a Boiler Auxiliaries Plant under GO.Ms. 81 dated 27‑Jan‑1981, which promised compensation and a job for a family member of each land‑owner.
  • Earlier litigation: Employment of land‑losers was addressed in W.A. No. 1275 of 2008 (Batch) and W.P. No. 25480 of 2008, resulting in 124 applications, of which 109 were appointed by BHEL; 15 were rejected for lacking required qualifications.
  • On 05‑Mar‑2019, a meeting convened by the District Collector, Vellore, with BHEL representatives resolved that 8 of the 15 rejected applicants would be employed by the 5th respondent; the remaining 7 were over‑aged, physically challenged or deceased, and were to be considered for employment of their legal representatives.
  • The 5th respondent later became defunct after absorbing 37 of its employees into BHEL, leaving fewer than 25 members.
  • The 5th respondent issued an order on 20‑Jul‑2023 directing the petitioners to join other cooperative societies within the BHEL campus; the petitioners filed representations on 28‑Jul‑2023, 04‑Jul‑2024 and 23‑Sep‑2024 seeking permanent absorption by BHEL, which were not acted upon.
  • Counter‑affidavits by BHEL reiterated that the land acquisition was under GO.Ms. 81, that BHEL had previously employed 548 persons by 1991, and that the screening committee (constituted by the Court in 2008) had recommended employment only for those meeting qualification criteria.
  • The Court cited several prior orders: the 1997 Labour Court award (ID No. 93 of 1992) granting permanent status to BHEL canteen workers; the 2010 judgment (WP No. 10861 of 2000) upholding that award with a modified effective date of 17‑Dec‑1999 and 50 % differential wages; the 2008 common order (WP No. 4113 of 1998) establishing a Screening Committee; the 2010 Division Bench order (29‑Sep‑2010) directing the Committee to examine claims within six months.
  • The Court observed that the 15 petitioners did not satisfy the eligibility criteria, were placed with the 5th respondent (Indira Gandhi Industrial Complex Industrial Service Co‑op Society Ltd) under conditions that included minimum‑wages compliance, possible future preference for BHEL vacancies, and protection from ouster before superannuation.
  • The Court held that the petitioners were not employees of BHEL; their employment was with the 5th respondent, a separate legal entity, and therefore the relief sought—absorption by BHEL—could not be granted.

Final Outcome

  • The writ petitions (WP 26212 of 2023, WP 4326 of 2025, WP 4415 of 2025, WP 26060 of 2024 and related WMPs) are dismissed.
  • No costs are awarded.
  • The connected miscellaneous petitions are closed.

Topics: Employment Litigation, Land Acquisition Promises, BHEL Employment Policy