Citation : 2026 Latest Caselaw 2580 Ori
Judgement Date : 18 March, 2026
IN THE HIGH COURT OF ORISSA AT CUTTACK
W.A. No.851 of 2025
In the matter of an Appeal under Section 10 of the Letter Patent of
the Patna High Court, read with Article-4 of the Orissa High Court
Order, 1948.
....
Sri Bhaskar Rout ... Appellant
-Versus-
1. State of Odisha, represented through
Secretary, Housing & Urban Development
Department.
2. Chairman-cum-Labour Commissioner,
Odisha Tenement Committee, Bhubaneswar.
3. Member Convenor, Director, Housing-cum-
Joint Secretary to Government, H & U.D.
Department, Bhubaneswar.
4. Collector-cum-Member, Tenement Committee,
Cuttack.
5. Bishnu Charan Sutar ... Respondents
Advocates who have appeared in this case:
For Appellant - Mr. Prafulla Ku. Rath, Sr. Advocate
M/s. Prasanta Ku. Satapathy,
B.K. Das, T. Panda & S. Pati
Advocates
For Respondents - Mr. S.B. Panda, AGA,
For R.1 to 4
Ms. Depali Mahapatra
Advocate for R.5
CORAM :
HON'BLE MR. JUSTICE KRISHNA SHRIPAD DIXIT
HON'BLE MR. JUSTICE CHITTARANJAN DASH
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Date of Hearing : 16.03.2026 Date of Judgment : 18.03.2026
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PER KRISHNA S. DIXIT, J.
This Intra-Court Appeal seeks to lay challenge to a learned Single Judge's order dated 26.03.2025, whereby Appellant's WP No.35944 of 2021 has been negatived. In the said WP, he had called in question Tenement Committee Proceeding dated 14.12.2020 by which the Collector-cum-Housing Commissioner was directed to evict him by cancelling the allotment of the subject Industrial Tenement on the ground that he had ceased to be an industrial worker as provided under Section 6(c) of the Orissa Industrial Housing Act 1966. He had also sought for a direction to the Official Respondents to transfer the ownership of said Tenement in his favour in terms of Government Resolution dated 24.06.1987.
2. FACTS IN BRIEF:
2.1. Appellant, an industrial worker had secured allotment of the subject Tenement at the hands of Labour Commissioner vide letter dated 24.09.1977 under the provisions of 1966 Act read with Odisha Industrial Housing Rules 1969. He was put in possession vide letter dated 28.12.1977. However, the said allotment came to be cancelled by the Assistant Housing Commissioner vide order dated 05.01.1990 and further the subject tenement came to be allotted in favour of Resp-5.
2.2. The above order dated 05.01.1990 was impugned by the Appellant in OJC No.5862 of 1991. A Coordinate Bench of this Court favoured the same vide order 12.05.1995, relevant part whereof reads as under:
"Recording such submissions, we cancel the order of allotment made in favour of Opposite Party No.4 in terms of Annexure-5. Possession of the tenement should be restored to the Petitioner thereafter, after opposite party no.4 vacate by the end of October, 1995. It is made clear, that this order will not prevent the authorities concerned to initiate proper proceeding for cancellation for any act committed by the Petitioner after the possession is restored to him. The Petitioner after the possession is restored to him. The Petition is disposed of accordingly. No costs. It is made further clear that both the Petitioner and opposite Party No.4 will appear before the Commissioner, of fresh notice."
(Emphasis supplied) In terms of said order, Appellant was given possession on 03.04.1996.
2.3. In terms of Coordinate Bench order dated 12.05.1995, a proceeding was initiated afresh with the participation of Appellant who appeared before the Tenement Committee and submitted representation on 26.03.2002. The Committee, after hearing the stakeholders, handed order dated 05.07.2002 cancelling the allotment made in favour of the Appellant and allotting the subject tenement in favour of Resp-5. Accordingly, notice dated 16.08.2002 was issued asking him to vacate. He filed Misc. Appeal No.131/2002 under Section 14 of the Act, 1966 challenging the said order and the same came to be negatived by the learned District Judge, Cuttack on 21.02.2005. This was challenged in WP(C) No.3274/2005 that was allowed on 03.01.2008. The order in Appeal and the cancellation of allotment were quashed and matter was remitted to the Committee for consideration afresh with an observation that Tenement Committee's decision is unreasoned; consequently the confirming order passed in the Appeal is also unreasonable.
2.4. The Committee headed by the Labour Commissioner as Chairman having considered all aspects of the matter, again took a decision on 14.12.2020 cancelling the allotment of tenement made in favour of the Appellant and further to evict him. Appellant did not avail the statutory remedy of Appeal against the same unlike the way he did earlier. He filed WP(C) No.35944/2021 challenging the decision of the Committee. The same came to be dismissed by the impugned order, which is now put at our hands for examination.
3. Having heard learned counsel for the parties and having perused the Appeal papers, we decline indulgence in the matter for the following reasons:
3.1. The first submission of learned Sr. Advocate Mr. Rath appearing for the Appellant that all throughout his client has been in the occupation of the property on allotment dated 24.09.1977 and this fact is vouched by the Division Bench order dated 12.05.1995 entered in OJC No.5862/1991 is only a half truth.
Firstly, allotment cannot be disputed is true. However, that was cancelled vide order dated 05.01.1990 and the tenement was allotted to Resp-5, is also not in dispute. The Appellant secured possession only on 03.04.1996, on the basis of OJC order that too subject to initiation of proper proceeding for cancellation, as has been specifically observed in the very said order itself, which is reproduced above. It also cannot be disputed that during the interregnum between 05.01.1990 & 03.04.1996, it was Resp-5, who was in the occupation of the subject property. There is another aspect to this observation, which we discuss a bit later.
3.2. The Industry had allegedly laid off the Appellant and other workmen vide order dated 16.08.1984, that came to be set at naught by the award dated 06.11.1986 entered by the Industrial Tribunal. During this interregnum, the Appellant was not in the occupation of the subject tenement, presumably because he had lost the means of livelihood because of Lay Off. There is sufficient justification for assuming that he had put Resp-5 in the occupation of the tenement soon after the Lay Off and went away to his native place. That is the reason as to why the said Resp-5 had applied for allotment in the year 1988 mentioning the factum of his occupation. The report of the Assistant Labour Officer, Cuttack dtd. 29.08.1989 addressed to the Assistant Labour Commissioner- cum-Housing Commissioner reported that Resp-5 was staying in the subject Industrial Tenement since 1985. In the absence of any evidentiary material to the contrary, it cannot be assumed that the said Resp. was given sub-tenancy and therefore, there was violation of terms of allotment so also Rule-12(5)(e) of the Industrial Housing Rules,1969 to that extent.
3.3. There is a wealth of evidentiary material to the effect that before restoration of possession pursuant to OJC order, Appellant was not in the occupation of the property whereas it was Resp-5 who was holding the same since January,1985. Therefore, the Committee's decision of cancelling Appellant's allotment and allotting the subject tenement to Resp-5 cannot be assailed. In fact, even the OJC order in unmistaken words stated about the same when it directed restoration of possession to the Appellant from the hands of Resp-5. There is absolutely no explanation
whatsoever as to why the Appellant was away from the occupation of the tenement during the said period. There is not even a whisper about the finding recorded by the officials of the Department as also in the report of the Assistant Labour Officer. Possession has been restored pursuant to OJC order, does not preclude an appropriate enquiry conducted by the Committee based on spot inspection coupled with other evidentiary material. We repeat that the very OJC order permitted such an exercise.
3.4. The next contention of Mr. Rath that the allotment of tenements of the kind is governed by the provisions of 1966 Act and 1969 Rules, is true. It is also true that the Government issued Resolution dated 24.06.1987 for further regulating transfer of ownership these tenements. He pressed into service Section 6 of the Act, which has the following text:
"6. Occupation when deemed to be unauthorised-For the purposes of this Act a person shall, save as otherwise provided in this Act, be deemed to be in unauthorised occupation of any house-
a) where he has entered into possession of a house otherwise than in pursuance of any allotment made by the Housing Commissioner;
(b) where being an allottee he has by reason, of cancellation of an allotment under Section 8 ceased to be entitled to occupy the house, or
(c) has ceased to be an industrial worker.
Explanation-A person shall not merely by reason of the fact that he has paid any amount as rent be deemed to have entered into possession of the house as allottee."
The contention advanced on behalf of Appellant that the occupation of the Resp-5 prior to his very application of 1988 that is with effect from 1985 has to be treated as unauthorized occupation cannot be countenanced for the simple reason that the Appellant's allotment was cancelled and in view of eventual
vacancy, allotment was made in favour of Resp-5 vide order dated 05.01.1990. This was pursuant to application made by the said Resp. in the year 1988. It is not the case of Appellant that the said Resp. was not an industrial worker within the meaning of Section 2 (e) of the Act during the relevant period.
3.5. Fairly enough, it is not the case of Appellant that the Act, 1966 does not confer power to cancel the allotment once made. Section 8 of the Act specifically provides for cancellation. Very notably it begins with Henry VIII Clause. The provision reads as under:
"Cancellation of allotment-Notwithstanding anything contained in any other law for the time being in force, the Housing Commissioner may after notice to the occupier and considering his explanation, if any, for reasons to be recorded, cancel any allotment under which a house is held or occupied by any person and upon an order cancelling the allotment being made a copy thereof shall be served upon such person."
The Housing Commission has the advantage of accumulated expertise in matters like this. Even the Tenement Committee is headed by the said Commissioner. Spot inspection was undertaken. There is an independent report of the Assistant Labour Officer. There is a very important fact that supports the view that the Appellant was away from the occupation of the property, inasmuch as he alleged suffered Lay Off order in August, 1984 and that was held to be illegal by the Industrial Tribunal only on 26.09.1986. Not even an iota of material is produce by the Appellant to vouch his contention that he was not away. During the said period, the vinculum juris of employer-employee had evaporated, cannot be disputed. The stand of the Appellant that
Lay Off is held to be illegal although long after it was affected does not advance case of the Appellant that he should be deemed to be an industrial worker during the said period, for the purpose of this special Act of the kind. A fiction created by the Award of the Industrial Tribunal cannot be stretched too far enough to accommodate contention to the contrary.
3.6. Learned Sr. Advocate Mr. Rath fervently pressed into service the Government Resolution dated 24.06.1987 in support of his case and therefore, relevant part of the same is reproduced below:
"3. Government, after careful consideration, have been pleased to decide to transfer the ownership of the tenements free of cost to eligible and bona fide occupants subject to the following terms and conditions.
(a) The ownership of the tenements shall be transferred to the industrial labourers free of cost subject to payment of all outstanding arrear rent by the occupants.
(i) Such ownership of tenements will be transferred even to those who were industrial labourers at the time of original allotment but have subsequently been promoted in the same or any other industrial organization and do not come in the category of industrial labourer at the time of transfer of ownership, provided further that such a person should be in continuous possession of the tenement allotted to him...
(iv) If an eligible industrial worker has retired from active service, his case will be considered for transfer of ownership by the Committee on merit.
(b) For transfer of ownership, a Committee will be formed to recommend the names of eligible Industrial labourers or their legal heirs, as the case may be, to the Government for final decision.
(i) The Committee will consist of Labour Commissioner, as Chairman, the concerned Collector of district under whoso jurisdiction the tenements are located, or his nominated representative as member and the Director, Housing-cum-
Deputy Secretary to Government, Housing & Urban Development Department as member-convener...
(l) The transfer of ownership in case of illegal occupants of the tenements will be decided with due regard to the provisions of this resolution by the Committee so appointed by this Resolution subject to approval of the Government in Housing & Urban Development Department.
(n) The illegal occupants of the tenements will be evicted under the provisions of Orissa Industrial Housing Rules, 1969..."
3.7. The very first part of paragraph of the above Resolution contemplates there being bona fide occupants who are in industrial employment. As already observed above, during the relevant period, the Appellant had ceased to be an industrial worker on account of his alleged Lay Off till the same was held to be illegal by the Tribunal in September, 1986. Clauses (e) & (p) of Rule 12 of 1969 Rules in this regard assume relevance and therefore, are reproduced:
"(e) The allottee shall not assign his right of tenancy and shall not sub-let or under-let or part-with possession of the house or any part thereof....
(p) The allottee being an industrial worker within the meaning of Section 2
(e) of the Act the tenancy shall cease forthwith as soon as he ceases to be an industrial worker:
Provided that where a worker dies while in service or goes on transfer, or retires or resigns, or goes on medical leave or where services are terminated by his employer, the allotment may, with the previous approval of the Housing Commissioner continue up to the period as detailed below:
(i) in the case of death or transfer, a period not exceeding two months;
(ii) in the case of retirement, resignation or termination of service, a period not exceeding one month; and
(iii) in the case of medical or ordinary leave, for the period of leave..."
(Emphasis supplied) It is not the case of Appellant again to say that Resp-5 had suffered any retrenchment, lay off or the like during the said period, unlike himself. What way the occupation of the tenement by Resp-5 can be termed as unauthorized occupation is difficult to visualize.
3.8. The above apart, as is revealed from the Counter filed by the Resp-5 in W.P.(C) No.35944 of 2021, a specific contention was taken before the learned Single Judge that the stand of Appellant regarding passing of award in I.D. Case No.4 of 1986 is a product of afterthought and it does not reflect that the Appellant was a concerned workman in the said Case. It is further revealed from the record that, pursuant to the order of Coordinate Bench dated 01.11.1995 passed in O.J.C. No.5362 of 1991, a notice dated 14.03.2002 (Annexure-18) was issued by the Additional District Magistrate, Cuttack to the Assistant Commissioner Housing-cum- Assistant Labour Commission, Cuttack. The present Appellant so also the Resp-.5 were asked to participate in the meeting that was scheduled to be held on 23.2.2022 at 3:00 P.M. in the Office Chamber of the Collector. Appellant accordingly participated in the said meeting and submitted his Written Statement along with documents, on 26.03.2022 vide Anneuxre-19. As is revealed from the said written submission of the Appellant, no such stand was taken in the said proceeding before the Tenement Committee constituted under the Act, 1966 regarding division of Orissa Textile & Steel Limited (OTS) and formation of M/s. Kalinga
Textile Corporation(KTS) in February, 1982 and direction of the employer to the Appellant to work in the newly formed Corporation ,i.e., M/s. KTS, so also lay off and passing of the award by the Industrial Tribunal in I.D. Case No.4 of 1986 declaring such lay off to be illegal and unjustified directing the Management to pay salary to the concerned workmen from 1984- 1987. As it appears from the record in W.P.(C) No.35944 of 2021, for the first time such a stand was taken before the learned Singe Judge.
3.9. Further, it is also revealed from the record that in all the earlier proceedings, prior to preferring W.P.(C) No.35944 of 2021, the issue before the Tenement Committee , the learned District Judge, Cuttack so also this Court was regarding the legality of order of cancellation of subject tenement as against the Appellant and it's re-allotment in favour of the Respondent No.5. In none of the said proceedings, the present Appellant had ever claimed his right for transfer of ownership in terms of Government Resolution dated 24.06.1987. For the first time, apart from praying for the quashment of Tenement Committee decision dated 14.12.2020, a prayer was made in W.P.(C) No.35944 of 2021 to direct the Opposite Parties to transfer the ownership of Tenement in favour of the Appellant in terms of the said Resolution dated 24.06.1987.
3.10. It is further revealed from the record that, the learned Single Judge, before passing the impugned judgment, passed an order dated 04.03.2024 in W.P(C) No.35944 of 2021 directing the learned Counsel for the Writ Petitioner to satisfy the Court as to whether the report of the Assistant Labour Officer dated 29th
August, 1989, which was submitted on being directed by the Assistant Labour-cum-Housing Commissioner, Cuttack vide his letter dated 21st July, 1989, was the subject matter of challenge in any proceeding. Being so directed, the present Appellant (Petitioner in W.P.(C) No.35944 of 2021) failed to meet the said query. Accordingly, vide impugned judgment, the learned Single Judge, confirmed the finding of Housing Committee that the Appellant ceased to be an industrial worker because of closure of the Industry with effect from 16.08.1984. The learned Single Judge also confirmed the said finding of the Tenement Committee that the Appellant was not in the occupation of subject tenement during the period when the gazette notification of Resolution dated 24.06.1987 was issued and that the Assistant Labour Officer's report dated 29th August, 1989 was not assailed by the Appellant.
3.11. Mr. Rath, learned Sr. Counsel for the Appellant, relying on certain documents annexed to I.A. No.4118 of 2025, argued before this Court that the finding of the learned Single Judge vide the impugned judgment that his client ceased to be an industrial worker because of the closure of the Company with effect from 16.08.1984 is erroneous and deserves to be set aside. In response, Ms. Mahapatra, learned Counsel for the Resp-5 vehemently opposed the admissibility of such documents in an Intra-Court appeal on the ground that the said documents have never seen the light of the day, as they were not made part of the record in any of the earlier proceedings. Ms.Mahapatra is also right in telling us that no explanation has been offered by the Appellant in this regard, either. The act of Appellant in pressing all these documents
for the first time before us in support of his case, appears to be an afterthought and therefore, they cannot be much relied upon.
3.12. Added to the above, admittedly those documents now sought to be produced along with the subject I.A. do pertain to some money claims made by the Appellant along with other workmen under Section 33-C(2) of 1947 Act. The claim is in respect of wages and bonus. All that cannot be the basis for seeking voiding of the impugned order asserting that even after the closure of OTS with effect from 16.08.1984, the Appellant continued to be an workman under M/s. KTS, which is allegedly a sister concern of M/s. Orissa Textile and Steel Ltd., Nuabazar, Cuttack, more particularly, in the absence of any such stand taken before the Tenement Committee so also before this Court prior to preferring W.P(C) No.35944 of 2021. That apart, the order passed in the 33-C (2) proceeding has been obtained ex-part in the year 2012,which is much after clouser of the said industry and the letter of the Labour Commissioner to recover the said amount under Section 33-C (1) is of July,2025.
3.13. There is force in the submission of learned counsel Ms. Mahapatra that a foundational finding of fact on which allotment of the tenement is cancelled eventually resulting into allotment in favour of Resp-5 cannot be re-adjudicated by the Writ Court whilst exercising a limited supervisory jurisdiction under Article
227. This submission becomes more plausible, inasmuch as the finding of fact recorded while cancelling the allotment having been examined by the learned Single Judge has attained finality
leaving no scope for us to undertake deeper examination of the evidentiary material that has entered the record of case. A mere error of law or fact is not sufficient for the Intra Court Appeal to grant interference, subject to all just exceptions into which argued case of the Appellant does not fit. Despite vociferous submissions, how the impugned order in unsustainable has not been substantially demonstrated.
In the above circumstances, the Appeal being unworthy of merits is liable to be dismissed and accordingly it is, costs having been made easy.
(Krishna Shripad Dixit) Judge
(Chittaranjan Dash) Judge
Signature NotOrissa Verified High Court, Cuttack, Digitally Signed Signed by: BASUDEV NAYAK The 18th day of March, 2026/Basu Designation: ADDL. DY. REGISTRAR-CUM-ADDL. PRINCIPAL SECRETARY Reason: Authentication Location: HIGH COURT OF ORISSA : CUTTACK Date: 24-Mar-2026 11:55:26
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