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Supreme Court of India 2021-03-01 partly_allowed

Punalur Paper Mills Ltd vs West Bengal Mineral Development and Trading Corporation Ltd. & Ors

Bench: 2 — R. F. Nariman

In Brief

The Supreme Court held that emergency acquisition powers under the Land Acquisition Act cannot be invoked merely to cure administrative delay and lethargy. A paper mill owner requisitioned their premises in 1973; when the 25-year statutory period ended in 1998, the State failed to return possession. It later invoked emergency powers to acquire the property without allowing objections. The Court quashed this acquisition as unjustified urgency, requiring the State to vacate and appoint an arbitrator to assess damages for 22 years of illegal occupation at Rs. 100 per square foot monthly if no agreement is reached within the stipulated timeframe.

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Land Acquisition Property Rights Requisition and Requisitioning Emergency Powers Administrative Law Constitutional Law Statutory Procedure Damages and Compensation

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