VidhiSangh

Supreme Court of India · 11/10/2022

M/S. M.S.P.L. LIMITED versus THE STATE OF KARNATAKA AND ORS.

[2022] 14 S.C.R. 591 · 2022 INSC 1060

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Summary

About 1,034 acres in Koppal were acquired under the Karnataka Industrial Areas Development Act, 1966 for a pellet plant (MSPL) and a steel plant (AISL, its wholly owned subsidiary). The projects had been cleared by the High Level Clearance Committee under the Karnataka Industries (Facilitation) Act, 2002. Landowners holding under 10% of the land sued, and the Division Bench quashed the whole acquisition. The Supreme Court reversed. Section 28(1) allows acquisition for any purpose furthering the Act's objects, including for a single company. Simultaneous notifications are lawful, and the statutory procedure was followed. Environmental clearance came later, and Shri Ramtanu was distinguishable. Courts must not decide on their own policy views, and a small minority cannot unsettle an acquisition the rest of the owners accepted.

Issues

  1. Whether land can be acquired under Section 28 of the Karnataka Industrial Areas Development Act, 1966 for a single private company.
  2. Whether the acquisition was vitiated by non-application of mind, haste, simultaneous notifications under Sections 1(3), 3(1) and 28(1), or non-compliance with Section 28.
  3. Whether the absence of prior environmental clearance, or the inclusion of a subsidiary that had not itself applied to the SHLCC, invalidated the acquisition.
  4. Whether the High Court could quash the whole acquisition at the instance of landowners holding under 10% of the land, relying on Shri Ramtanu and its own policy views.

Provisions considered

Held

Result

Appeals of MSPL, AISL, KIADB and the State allowed. The Division Bench's judgment was set aside and the Single Judge's dismissal of the writ petitions was restored. The connected landowner's appeal concerning a similar acquisition for BMM Ispat Ltd was dismissed. No costs.

Judgment PDF: Supreme Court of India, [2022] 14 S.C.R. 591.