U.P. STATE SUGAR & CANE DEVELOPMENT LTD. versus RAZA BULAND SUGAR CO.LTD. AND ORS

U.P. STATE SUGAR & CANE DEVELOPMENT LTD. versus RAZA BULAND SUGAR CO.LTD. AND ORS

The Court held that, under s.2(h)(vi) of the Act, the burden lies on the company to prove land was for cultivation or grove land, otherwise it vests in the Corporation. For buildings, the burden lies on the Corporation to prove they were for factory purposes. Shops constructed after 1971 out of the Sugar Undertaking's funds are covered by 'scheduled undertaking', thus vesting in the Corporation under s.3. The Corporation's appeals succeeded in relation to the nursery lands, shops at Nainital Road, and playground lands.

Parties
Appellant: U.P. State Sugar & Cane Development Ltd.; Respondent No.1: Raza Buland Sugar Co. Ltd.; Respondents: Others
Jurisdiction
India
Judgment Date
17 April 2009
Procedural Posture
Civil Appeal / Supreme Court Decision on Appeals From High Court
Outcome
Appeals filed by the Corporation are allowed; appeals filed by plaintiffs are dismissed.
Legal Topics
Acquisition of Undertakings, Vesting and Ownership of Property, Burden of Proof, Interpretation of U.p. Sugar Undertakings (acquisition) Act, 1971
Property Law Statutory Interpretation Acquisition of Undertakings Vesting and Ownership of Property Burden of Proof Interpretation of U.p. Sugar Undertakings (acquisition) Act, 1971

Case Brief

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Parties

U.P. State Sugar & Cane Development Ltd.

Appellant

Raza Buland Sugar Co. Ltd.

Respondent No.1

Others

Respondents

Procedural Posture

Civil Appeal / Supreme Court Decision on Appeals From High Court

Legal Issues

  1. 1 Whether the properties specified in para 10 of the plaint are covered by the definition of 'scheduled undertaking' under s.2(h) of U.P. Sugar Undertakings (Acquisition) Act, 1971 and therefore vested in the Corporation under s.3.
  2. 2 On whom does the burden of proof lie regarding the use and classification of lands and buildings under the Act?

Ratio Decidendi

The Court held that, under s.2(h)(vi) of the Act, the burden lies on the company to prove land was for cultivation or grove land, otherwise it vests in the Corporation. For buildings, the burden lies on the Corporation to prove they were for factory purposes. Shops constructed after 1971 out of the Sugar Undertaking's funds are covered by 'scheduled undertaking', thus vesting in the Corporation under s.3. The Corporation's appeals succeeded in relation to the nursery lands, shops at Nainital Road, and playground lands.

Court Disposition

Appeals filed by the Corporation are allowed; appeals filed by plaintiffs are dismissed.

Orders

  • Properties referred to as Nursery lands, shops at Nainital Road, and playground lands vest in the Corporation as part of the scheduled undertaking.
  • Appeals by the plaintiffs (Raza Buland Sugar Co. Ltd.) are dismissed.