VidhiSangh

Supreme Court of India · 01/03/2021

PUNALUR PAPER MILLS LTD. versus WEST BENGAL MINERAL DEVELOPMENT AND TRADING CORPORATION LTD. & ORS.

[2021] 3 S.C.R. 1 · 2021 INSC 126

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Summary

The Supreme Court upheld the invalidation of an urgency acquisition of premises retained after a statutory requisition expired. The State’s long advance knowledge and inaction could not justify dispensing with objections, nor did a consent order permitting lawful acquisition supply urgency. The owner’s compensation appeals succeeded: the requisition statute’s compensation machinery did not cover subsequent unauthorised occupation. The Court arranged independent assessment of occupation damages, prescribed a conditional default rate and allowed four months to vacate on undertakings.

Issues

  1. Whether the State’s delay and an order allowing lawful acquisition justified invoking urgency powers after requisition expired.
  2. Whether compensation for occupation after requisition ended could be assessed through the requisition statute’s machinery.

Provisions considered

Held

Result

State’s appeals dismissed; owner’s appeals allowed on the compensation machinery. Independent damages assessment and conditional payment and vacation directions issued for both premises.

Judgment PDF: Supreme Court of India, [2021] 3 S.C.R. 1.