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2016 Supreme(SC) 674

V.GOPALA GOWDA, ARUN MISHRA
KEDAR NATH YADAV – Appellant
Versus
STATE OF WEST BENGAL – Respondent


Advocates Appeared:
For the Appellant :- B.P. Yadav, Anindo Mukherjee, Mrs Sarla Chandra, Dr. M.P. Raju, Ashwani Bhardwaj, Joydeep Mukherjea, Anip Sachthey, Ms. Jyoti Mendiratta, Prashant Bhushan, Dharam Bir Raj Vohra, Advocates.
For the Respondents:- Sunil Kumar Verma, Parijat Sinha, Parijat Sinha, Gopal Jain, Sr. Adv., Mrs. Nandini Gore, Abhishek Roy, Ms. Tahira Karanjawala, Sidharth Sharma, Arjun Sharma, Mrs. Manik Karanjawala, Ms. Devina Sehgal, (For M/s. Karanjawala & Co.), Mrs Manik Karanjawala, Avijit Bhattacharjee, Advocates.

Judgement Key Points

Key Points: - The acquisition is held to be for a public purpose, not for the company, but the Court ultimately quashes the acquisition and returns land to landowners. (!) (!) - Section 6(1) and the mandatory Part VII procedures, including compliance with Rule 4 and Sections 39-41, were not properly followed, rendering the acquisition invalid. (!) (!) (!) - The Court notes that even in a public purpose, if funded partly by public funds, Part II can apply; but in this case, the entire cost was borne by WBIDC (a state corporation), leading to complex treatment under Part II vs Part VII. (!) (!) (!) - The judgment emphasizes proper adherence to natural justice requirements under Section 5-A(2) and the need for objective consideration of objections; failure leads to invalidation. (!) (!) - The final order directs restoration of possession to landowners within 12 weeks and that compensation already paid shall not be recovered; survey to identify portions to be returned; quashing of the impugned acquisition proceedings; appeals allowed. (!) (!) - The decision discusses the broader principles of "public purpose" and eminent domain, including the distinction between public purpose and Part VII, and the role of funds source in determining applicability of Part II vs Part VII. (!) (!) (!)

What is the main issue: whether the land acquisition in Singur was for public purpose or for Tata Motors (a company), and whether Part II or Part VII of the Land Acquisition Act applies?

What is the Court's holding regarding compliance with Part VII of the L.A. Act and the mandatory nature of Rule 4 and Section 39-41 procedures for company acquisitions?

What are the remedies and orders issued by the Court, including quashing the acquisition and returning land to landowners, and the handling of compensation?


JUDGMENT :

V. Gopala Gowda, J. –

Delay condoned in SLP (C) CC No. 13645 of 2008. Leave granted in all the special leave petitions.

2. The present appeals arise out of the impugned final common judgment and order dated 18.01.2008 in W.P. No. 23836 (W) of 2006 and connected petitions, passed by the High Court of Calcutta, wherein the Writ Petitions filed challenging the proceedings of the acquisition of land to an extent of about 1000 acres within the mouzas Gopalnagar, Singherberi, Beraberi, Khaserberi and Bajemelia, P.S. Singur, District Hooghly were dismissed.

3. The relevant facts which are required for us to appreciate the rival legal contentions advanced on behalf of the parties are stated in brief as hereunder:

The State of West Bengal formulated an industrial policy to establish automobile industries in the State to cater to the needs of the people and to solve the problem of unemployment in the State. In pursuance of the same, the respondent, Tata Motors Ltd. (hereinafter referred to as "TML"), entered into discussions with the State Government of West Bengal regarding the i














































































































































































































































































































































































































































































































































































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