M/S ULTRA-TECH CEMENT LTD. versus MAST RAM & ORS.

M/S ULTRA-TECH CEMENT LTD. versus MAST RAM & ORS.

The Scheme of Arrangement was construed to hold that liabilities and proceedings arising before the Effective Date (29.06.2017) remained with JAL under Clause 7.1; the subject land was not included among assets transferred to the Appellant and therefore the Appellant could not be directed to pay liabilities for land not transferred. Section 101 did not apply because the land was utilized as a safety zone (not unutilised). The State and LAC failed in their duty under Section 38 and Article 300-A by allowing possession/transfer without ensuring payment of full compensation; accordingly the Supreme Court set aside the High Court order and directed Respondent Nos. 7 (State) and 10 (LAC) to...

Parties
Appellant: M/s Ultra-Tech Cement Ltd.; Respondent(s) (original Petitioners): Mast Ram & Ors.; Respondent No.11: M/s Jaiprakash Associates Limited (JAL); Respondent No.7: State of Himachal Pradesh; Respondent No.10: Land Acquisition Collector, Arki
Jurisdiction
India
Judgment Date
20 September 2024
Procedural Posture
Civil Appeal / Appeal to the Supreme Court Against High Court Judgment Dated 12.07.2022 in CWP No.2350 of 2018
Outcome
Appeal allowed; impugned High Court order set aside in part and substituted by directions to State and LAC to pay compensation
Legal Topics
Section 101 RTFCTLARR Act 2013 (return of Unutilised Land), Section 38 RTFCTLARR Act 2013 (possession/payment Precondition), Section 41 Land Acquisition Act, 1894 (agreement With Appropriate Government), Scheme of Arrangement (companies Act, 1956) Clause 7.1, Article 300 a of the Constitution (right to Property), Payment of Compensation, Return of Acquired Land

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Parties

M/s Ultra-Tech Cement Ltd.

Appellant

Mast Ram & Ors.

Respondent(s) (original Petitioners)

M/s Jaiprakash Associates Limited (JAL)

Respondent No.11

State of Himachal Pradesh

Respondent No.7

Land Acquisition Collector, Arki

Respondent No.10

Procedural Posture

Civil Appeal / Appeal to the Supreme Court Against High Court Judgment Dated 12.07.2022 in CWP No.2350 of 2018

  1. 1 Whether the subject land and all other liabilities associated with it were transferred to the Appellant in terms of the Scheme
  2. 2 Whether it was the Appellant or JAL who was legally obliged to pay the compensation amount determined under the Supplementary Award
  3. 3 Whether the land in terms of Section 101 of the 2013 Act can be returned to the Respondent Nos. 1-6 at this stage under the scheme of the Act; what is the scope of Section 101

Ratio Decidendi

The Scheme of Arrangement was construed to hold that liabilities and proceedings arising before the Effective Date (29.06.2017) remained with JAL under Clause 7.1; the subject land was not included among assets transferred to the Appellant and therefore the Appellant could not be directed to pay liabilities for land not transferred. Section 101 did not apply because the land was utilized as a safety zone (not unutilised). The State and LAC failed in their duty under Section 38 and Article 300-A by allowing possession/transfer without ensuring payment of full compensation; accordingly the Supreme Court set aside the High Court order and directed Respondent Nos. 7 (State) and 10 (LAC) to...

Court Disposition

Appeal allowed; impugned High Court order set aside in part and substituted by directions to State and LAC to pay compensation

Orders

  • Impugned order dated 12.07.2022 set aside
  • Respondent Nos. 7 (State of Himachal Pradesh) and 10 (Land Acquisition Collector, Arki) directed to pay Rs. 30531095 to Respondent Nos. 1-6 with 9% interest from 02.05.2022 until realization within 15 days