In Durgapur Steel Plant & Ors. v. Bidhan Chandra Chowdhury & Ors. (Civil Appeals of 2026, arising out of SLP (Civil) No. 41 of 2020 and SLP (Civil) No. 14491 of 2021, 2026 INSC 459), the Supreme Court of India set aside orders directing the recruitment of candidates who challenged a public employment selection process. The Central Administrative Tribunal and the Calcutta High Court had previously directed the appellant to appoint the respondents because the management failed to produce or preserve the physical marks and answer sheets of the written test during litigation.
A Division Bench comprising Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe ruled that an adverse legal inference cannot be drawn against an employer for destroying examination scripts when no statutory retention period is prescribed and the test was outsourced to an independent body. The Court emphasized that simply because a candidate is “not shown to have failed,” it cannot be presumed that they passed the exam. Furthermore, since the minimum technical recruitment qualifications were legally revised during the interim period, no retroactive appointment order could be sustained. However, taking note of Respondent No. 1’s persistent single-handed litigation since 2008, the Court invoked its discretionary equity to direct a lump-sum ex-gratia compensation of ₹5,00,000/- in lieu of employment.
Details
1. Key Parties and Bench
- Appellants: Durgapur Steel Plant (a subsidiary unit of the Public Sector Enterprise, Steel Authority of India Limited – SAIL) and its management.
- Respondents (Original Writ Petitioners): Bidhan Chandra Chowdhury & Others (Unsuccessful selection candidates).
- Bench: Hon’ble Justice Pamidighantam Sri Narasimha and Hon’ble Justice Alok Aradhe.
- Judgment Delivered By: Hon’ble Justice Alok Aradhe.
2. Factual Matrix and Recruitment History
- The Advertisement: On October 16, 2007, Durgapur Steel Plant issued a public notification to recruit Plant Attendants. The vacancies dynamically expanded from an initial 90 seats up to 200 posts.
- The Examination: The selection process layout required a written examination followed by an interview and subsequent medical validation. The administrative handling of the written examination was fully outsourced to an independent evaluation agency. Out of 52,000 initial applicants, 29,459 candidates sat for the test, and 1,530 ultimately qualified for the secondary phase.
- Shortlisting and Joining: Following the publication of a structured shortlist on June 17, 2008, a total of 194 candidates ultimately accepted appointment offers and joined the enterprise across the multi-tier selection cycle.
- The Legal Challenge: In January 2009, the respondents approached the court via a writ petition, demanding full disclosure of their individual marks and the production of the absolute score sheets of the written test, while trying to halt further job deployments. The case was subsequently transferred to the Central Administrative Tribunal (CAT) in 2012.
3. Procedural History and Directives of Lower Forums
A. The Central Administrative Tribunal (CAT) Order
On March 27, 2018, the Tribunal ruled against the Durgapur Steel Plant. It underscored that:
- The actual numerical marks of the written evaluation were never openly disclosed or brought into evidence.
- The administration had failed to preserve the raw evaluation data while the legal challenge was active.
- No definitive documentary evidence was available to verify that the respondents had actually failed the examination.
Consequently, the Tribunal directed the management to issue appointment offers to the respondents for the post of Plant Attendant (or an equivalent vacancy) with necessary age relaxations, placing them at the bottom of the seniority ladder.
B. The High Court Judgment
The management challenged the CAT directive before the Calcutta High Court. By an interim order on July 19, 2019, the High Court directed the management to assess the respondents’ current credentials. Ultimately, on September 27, 2019, the High Court dismissed the writ petition and affirmed the Tribunal’s decision, which led to the filing of the present appeals before the Supreme Court.
4. Primary Legal Controversies Addressed
- Whether an employer’s failure to preserve or produce outsourced raw examination answer records during a pending challenge justifies an automatic legal presumption that the contesting applicants passed the examination.
- Whether public sector entities are legally obligated to publish the absolute score sheets and individual marks of all participating candidates when neither the governing recruitment rules nor the tender advertisements mandate such action.
- Whether a court can issue an order for employment when the mandatory minimum eligibility qualifications for that specific post were legally altered or updated by the company during the course of the litigation.
5. Observations and Landmark Rulings of the Supreme Court
A. Right to Selection and Burden of Proof
The Supreme Court reiterated the fundamental principle that the state and its instrumentalities must strictly abide by comparative merit. However, the inclusion of a person’s name in a broad selection registry does not generate an unassailable or indefeasible right to clear an appointment. The Bench pointed out that the respondents never formally asserted or demonstrated that they had actually passed the examination. The Court held that a candidate cannot be legally presumed to have passed a competitive exam simply because there is an absence of formal documentation explicitly proving they failed.
B. Bona Fide Record Destruction vs. Adverse Inference
The Court observed that because the written examination was outsourced to an outside agency and there was no internal guideline prescribing a minimum duration to retain evaluation scripts, the company’s explanation that the old files were destroyed appeared completely genuine (bona fide). Thus, drawing an adverse legal inference against the employer solely based on the non-production of these old documents was entirely unjustified.
C. Regulatory Impediments due to Altered Job Qualifications
The Court highlighted a structural barrier to granting employment: the baseline criteria and technical qualifications for the post of Plant Attendant were formally modified and updated by the enterprise back in 2008. Because of this structural revision, the judiciary cannot issue a directive forcing the employer to hire individuals under obsolete standards. Therefore, the core appointment directives issued by the Tribunal and the High Court were declared legally unsustainable.
D. Grant of Equitable Compensation
The Court observed that Respondent Nos. 2 and 3 had abandoned the litigation. However, Respondent No. 1 had single-handedly pursued the legal battle since 2008. While setting aside the employment mandates, the Court noted that the specific circumstances warranted a fair remedy. Relying on equity, the Court directed the appellants to pay a financial award of ₹5,00,000/- (Rupees Five Lakhs) to Respondent No. 1 within two months.
6. Final Order
The Supreme Court allowed the appeals in part, setting aside the prior judgments of the Central Administrative Tribunal and the Calcutta High Court regarding actual employment placement. The appeals were resolved with a directive to pay the specified ₹5,00,000/- ex-gratia amount to Respondent No. 1, with no order as to costs.
2026 INSC 459
Durgapur Steel Plant & Ors. V. Bidhan Chandra Chowdhury & Ors. (D.O.J. 07.05.2026)




