IN THE SUPREME COURT OF INDIA
T.S. THAKUR, JAGDISH SINGH KHEHAR, JJ.
State of U.P. - Appellant
Versus
M/s Lakshmi Sugar & Oil Mills Ltd. and Ors. - Respondents
CIVIL APPEAL NO. 8085 OF 2013
(Arising out of S.L.P. (C) No.3306 of 2011)
With
U.P. State Sugar Corporation - Appellant
Versus
M/s Lakshmi Sugar & Oil Mills Ltd. and Ors. - Respondents
CIVIL APPEAL NO. 8086 OF 2013
(Arising out of S.L.P. (C) No.3307 of 2011)
Decided on : September 12, 2013
U.P. Imposition of Ceiling on Land Holdings Act, 1960 - Section 6 - Charge or other encumbrance or lien - Private sugar manufacturing units in State of Uttar - Direction followed finding recorded by High Court that land in dispute being agricultural land had not vested in appellant Corporation provisions of U.P. Sugar Undertakings Acquisition Act - Mandamus issued by High Court includes further direction for delivery of possession disputed parcel of land respondent company within period of one month from date of presentation of certified copy of impugned judgment and order – Respondent Limited established sugar factory in District of State of Uttar Pradesh as early as in year - Several such sugar mills having gone sick in State of Uttar Pradesh State legislature enacted what is known as Uttar Pradesh Sugar Undertakings Acquisition Act - Held, Imposition of Ceiling on Land Holdings Act on ground that same was for industrial purposes being part of sugar factory - Land in question was indeed for cultivation purposes as alleged by company could not remain immune to rigors of Ceiling Act - It was excluded from application of Act only because it was treated as industrially attached to sugar factory - respondent-company has not been able to effectively refute that contention of appellant Corporation - Land had indeed been treated as industrial for purposes of Ceiling Act court find it difficult to see how same could be treated to be or occupied for cultivation for purposes of U.P. Sugar Undertakings Acquisition Act - Noticed earlier it is not the case of the respondent-company that although the land was non-agricultural and although the same was and occupied for industrial purposes industrial purpose for which it was by company was un-related to sugar factory No such plea having been raised or urged at any stage subject land has been rightly taken as vested in Corporation - Land in question is situate in immediate vicinity of sugar factory – Appeal allowed
JUDGMENT
T.S. THAKUR, J.
1. Leave granted.
2. These appeals arise out of a Judgment and Order dated 30th April, 2010 passed by the Lucknow Bench of the High Court of Judicature at Allahabad, whereby writ petition No.187 of 2007 filed by the respondent- company has been allowed with a direction to respondents 4 to 6 to delete the name of the appellant-U.P. State Sugar Corporation from the relevant revenue records and restore that of the respondent-Company. That direction followed a finding recorded by the High Court that the land in dispute being agricultural land had not vested in the appellant-Corporation under the provisions of The U.P. Sugar Undertakings (Acquisition) Act, 1971. The mandamus issued by the High Court includes a further direction for delivery of possession of the disputed parcel of land to the respondent-company within a period of one month from the date of presentation of a certified copy of the impugned judgment and order.
3. The respondent-Lakshmi Sugar and Oil Mills Limited established a sugar factory in District Hardoi of the State of Uttar Pradesh as early as in the year 1933. Several such sugar mills having gone sick in the State of Uttar Pradesh, the State legislature enacted what is known as Uttar Pradesh Sugar Undertakings (Acquisition) Act, 1971. Twelve private sugar manufacturing units in the State of Uttar Pradesh were acquired by the State Government under the said Act and vested in the appellant-Corporation so as to revive such sick mills and, thereby, protect the interest of cane growers in the State. Section 3 of the Act, inter alia, provided that “on the appointed day, every scheduled undertaking shall, by virtue of this Act, stand and be deemed to have stood transferred and vested in the Corporation free from any debt, mortgage charge or other encumbrance or lien, trust or similar obligation (excepting any, lien or other obligation in respect of any advance on the security of any sugar stock or other stock in trade) attaching to the undertaking.” The expression “scheduled undertaking” was defined in Section 2(h) of the Act, inter alia, to mean an undertaking engaged in the manufacture or production of sugar by means of vacuum pans and with the aid of mechanical power in a factory specified in any of the Schedules to the Act and comprising plants, machinery and other equipments and assets enumerated thereunder.
4. The respondent-sugar factory, it is common ground, figured at Item-7 of the Second Schedule to the Act and, therefore, stood vested in the appellant-Corporation with effect from 28th October, 1984, the date appointed for vesting of undertakings specified in the said schedule in terms of notification dated 27th October, 1984. Possession of the respondent-Sugar Mill was taken over by District Magistrate, Hardoi on 28th October, 1984 and handed over to the appellant-Corporation.
5. Consolidation proceedings appear to have started in Village Nanakganj Grunt, Pargana Gopamau, Tehsil and District Hardoi sometime in June, 1986 and a mutation in respect of land held by the respondent-Company and situated at Dheer Maholia passed by the SDO, Sadar, Hardoi on 14th February, 1987. A similar order of mutation was passed for another parcel of land situated at Nagheta by the SDO, Sadar, Hardoi on 19th February, 1987. In regard to the third parcel of land situate in village Nanakganj Trust, the appellant-Corporation acting through its General Manager addressed a letter dated 26th August, 1992 to the Consolidation Officer, Hardoi requesting him to record the name of the appellant-Corporation in place of the respondent-Company. The letter pointed out that the said parcel of land had been acquired by the State Government and stood vested in the appellant-Corporation with effect from 28th October 1984 under the provisions of the U.P. Sugar Undertakings (Acquisition) Act, 1971 read with the Amendment Act of 1985.
6. The Consolidation Officer registered the request as Case No.9760 and initiated proceedings in
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