State Government acted within its rights. No colourable exercise of power.

Common Judgment: (D. Murugesan, J.)

The appellants, who are engaged in the business of manufacturing and marketing cement, and whose lands were sought to be acquired by the Government of Tamilnadu to enable Tamilnadu Cements Limited (in short known as TANCEM) to conduct operations for mining limestones, lost their challenge to the land acquisition proceedings and hence, are before us in the present appeals.

2. The brief facts leading to the above appeals are as follows:-

(a) The Tamilnadu Industrial Development Corporation Ltd., a statutory corporation, wholly owned by the Government of Tamilnadu, obtained an industrial license to set up a cement factory in Ariyalur Taluk, of erstwhile Trichy District, in the year 1975. The State Geological branch conducted detailed prospecting operations in the area and submitted a report, based upon which, the Tamilnadu Industrial Development Corporation Ltd., requested the sanction of the Government for the acquisition of patta lands of an extent of Acres 1868.96 and poromboke lands of an extent of 444.07 acres, in the area, for the purpose of carrying out mining operations, setting up a factory, providing a Railway siding etc. By an order in G.O.Ms.No.679, Industries Department, dated 26-5-1977, the Government accepted the request of Tamilnadu Industrial Development Corporation Ltd., for the acquisition of the said lands.

(b) The said Government order also identified both the private patta lands as well as Government poromboke lands, required for mining operations, in the villages of Perianagalur, Aminabad, Kallankurichi, Kairalbad, Ariyalur and Valajanagar, in Ariyalur Taluk.

(c) In the meantime, a company known as TAMILNADU CEMENTS CORPORATION LIMITED, (hereinafter referred to as TANCEM) was incorporated under the Companies Act, 1956, both for the purpose of taking over the cement factory of Tamilnadu Industrial Development Corporation Ltd., at Alangulam, Ramand District and for the purpose of production, manufacture, process and sale of cement, Portland cement, alumina cement, lime and limestone, clinker and other bye products.

(d) Thereafter, the Government of Tamilnadu issued a notification in G.O.Ms.No.921, Industries (M2) Department, dated 25-8-1986, reserving an extent of 1283.62 acres of lands in Kairulabad, Perianagalur, Valajanagaram, Ameenabad, Pudupalayam and Reddypalayam villages in Ariyalur Taluk, for exploitation of limestones by TANCEM. The notification was issued by order of and in the name of the Governor under Rule 58 of the Mineral Concession Rules,1960.

(e) After such reservation of the lands M/s.Dalmiya Cements (Bharat) Ltd., applied to the Government in Revenue Department, in the year 1990, for the grant of permission under Section 37-A of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961, to acquire and hold lands in excess of the ceiling limit in Velur-Valajanagar and Anandavadi villages of Ariyalur Taluk. By an order in G.O.Ms.No.1255, Revenue Department dated 19.9.1991, the Government accorded permission to M/s.Dalmiya Cements to acquire and hold an extent of 620.51 acres in Valajanagaram village and 238.50 acres in Anandavadi village (totaling to 859.01 ordinary acres = 286.337 standard acres), for mining lime stone for the manufacture of cement within a period of two years subject to the other conditions stipulated in the said order.

(f) At about the same time, TANCEM also requested the State Government to acquire 252.36 acres of patta land in Valajanagar village, from out of the lands already reserved. The Government issued the first notification in G.O.(2D)No.255, Industries (MIA.I) Department, dated 21.9.1993, under Section 4(1) of the Land Acquisition Act, 1894, in respect of certain lands in Valajanagaram village and the said notification was published in the Tamil Nadu Government Gazette No.40-A dated 13.10.1993 in Part II Section 2 (Supplement). The said notification was followed by several subsequent notifications in respect of