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2023 Supreme(SC) 353

M. R. SHAH, KRISHNA MURARI
Anil Agarwal Foundation Etc. Etc. – Appellant
Versus
State of Orissa – Respondent


Advocates appeared:
For the Parties : Mr. P. S. Sudheer, AOR Mr. Abhisth Kumar, AOR Mr. Prashant Bhushan, Adv. Mr. Pranav Sachdeva, Adv. Mr. Chinamaya Mishra, Adv. Mr. Ajit Pudussery, AOR Mr. Milind Kumar, AOR Mr. Rutwik Panda, AOR Ms. Nikhar Berry, Adv. Ms. Anshu Malik, Adv. Mr. Raj Kumar Mehta, AOR Mr. Arvind Kumar Sharma, AOR Ms. Ruchi Kohli, AOR Mr. Shibashish Misra, AOR

Judgement Key Points

What is the status of Anil Agarwal Foundation as a public company under the Companies Act, 1956 for land acquisition purposes? (!) (!) Whether the State Government can acquire land under Part VII of the Land Acquisition Act, 1894 for a private company in favor of establishing a non-existent university? (!) (!) Whether the acquisition proceedings complied with mandatory provisions of Sections 39, 40, 41 of the Land Acquisition Act, 1894 and Rules 3(2), 4 of Land Acquisition (Companies) Rules, 1963? (!) (!)

Key Points: - Supreme Court dismissed appeals, upholding High Court order quashing land acquisition proceedings for ~6000 acres in favor of Anil Agarwal Foundation due to non-compliance with Land Acquisition Act, 1894 and rules (!) (!) (!) - Acquisition initiated by private company (Vedanta/Anil Agarwal Foundation) identifying land, with MoU signed on 19.07.2006 when it was private, violating Section 44B (!) (!) (!) (!) (!) - No proper Land Acquisition Committee under Rule 3; Core Committee not substitute; no inquiry/report under Rule 4 on suitability, negotiations, excessiveness (!) (!) (!) - Beneficiary not valid public company; conversion from Section 25 private limited by guarantee lacked compliance with Companies Act sections like 23, 31 (!) (!) (!) - Section 6 declarations issued without Section 41 agreement or Rule 4(4) compliance; notifications violated Sections 39, 40 (!) (!) (!) - PIL maintainable for marginalized landowners (6000 families, 30,000 affected); public interest due to environmental impact near Wildlife Sanctuary, rivers under public trust (!) (!) (!) (!) - State offered undue favors/largesse to company (tax exemptions, autonomy, infrastructure); arbitrary, violative of Article 14 (!) (!) (!) - Non-application of mind on environmental aspects (rivers Nuanai/Nala, proximity to Balukhand Sanctuary); affects ecology, public trust doctrine (!) (!) (!) - High Court findings on 15 issues affirmed; entire proceedings vitiated from initiation, including awards, possession (!) (!) (!) - Costs of Rs. 5 lakhs imposed on Anil Agarwal Foundation (!)

What is the status of Anil Agarwal Foundation as a public company under the Companies Act, 1956 for land acquisition purposes? [p_121][p_159]

Whether the State Government can acquire land under Part VII of the Land Acquisition Act, 1894 for a private company in favor of establishing a non-existent university? [p_123][p_164]

Whether the acquisition proceedings complied with mandatory provisions of Sections 39, 40, 41 of the Land Acquisition Act, 1894 and Rules 3(2), 4 of Land Acquisition (Companies) Rules, 1963? [p_125][p_169]


Table of Content
1. introduction to the case and parties involved. (Para 1 , 2)
2. overview of the land acquisition request and agreement process. (Para 3)
3. arguments against high court’s decision and grounds for appeal. (Para 4)
4. arguments from the plaintiffs focusing on public interest. (Para 5)
5. judicial review of the land acquisition proceedings. (Para 6 , 8)
6. final decision and directives issued by the court. (Para 9)

M.R. SHAH, J.

2. At the outset, it is required to be noted that before the High Court, two writ petitions were filed by the original landowners whose lands have been acquired and one writ petition was filed by way of public interest litigation on behalf of the small landholders, who could not approach the Court and also on behalf of the people of the locality.

3. The facts leading to the present appeals in nutshell are as under:-

3.2 That a Private Limited Company incorporated in the name and style of Sterlite Foundation changed its name to Vedanta Foundation under section 25 of the COMPANIES ACT , 1956 and accordingly fresh Certificate of Incorporation conseq

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