In Brief
Ultra-Tech Cement Ltd acquired a cement project from Jaiprakash Associates Limited (JAL) in 2017 through a Scheme of Arrangement. Land for a safety zone around the cement plant had been acquired by the State in 2008, and after award of compensation in 2018, a supplementary award of over 3 crores was passed in 2022 for additional compensation owed to landowners. The High Court directed Ultra-Tech to pay; Ultra-Tech appealed, arguing liability remained with JAL under the Scheme. The Supreme Court held that since acquisition proceedings commenced before the scheme's effective date and compensation remained undetermined then, liability stayed with JAL under the scheme's explicit terms. However, the Court held the State of Himachal Pradesh, as a welfare state, could not avoid its constitutional duty under Article 300-A to ensure prompt payment of determined compensation after taking possession. The Court directed the State to pay the landowners immediately and recover the amount from JAL, as ultimate acquisition cost liability fell on JAL.
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