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M/S. United Spirits Limited vs State Of West Bengal And Others
2023 Latest Caselaw 1125 Cal

Citation : 2023 Latest Caselaw 1125 Cal
Judgement Date : 10 February, 2023

Calcutta High Court (Appellete Side)
M/S. United Spirits Limited vs State Of West Bengal And Others on 10 February, 2023
194   10.02.                       WPLRT 106 of 2012
      2023                                 With
                        IA No. CAN 1 of 2018 (Old No. 2360 of 2018)
      Ct. No. 04
                        IA No. CAN 2 of 2018 (Old No. 2361 of 2018)
         Ab                        IA No. CAN 6 of 2022


                                M/s. United Spirits Limited
                                               Vs.
                              State of West Bengal and others.
                                          ---------------

Mr. Joydip Kar, Mr. Ajay Gaggar, Mr. Uttiyo Mallick.

... for the petitioner/applicant.

Mr. Soumitra Bandyopadhyay, Mr. Aniruddha Sen.

... for the State respondents.

Re: CAN 6 of 2022

The instant application has been taken out on the subsequent development of the events during pendency of the instant writ petition and an immediate protection so that the highhanded of the State instrumentality may not cause serious injury to the petitioner/applicant.

The instant writ petition was filed challenging the order of the Tribunal dismissing the application wherein the challenge was made to the decision of the competent authority under Section 14T of the West Bengal Land Reforms Act, 1956 (hereinafter referred to as 'said Act'). By the said order, the authorities declared 9.42 acres of land being excess of the ceiling limit and to be vested to the State of West Bengal.

At the time of entertaining the writ petition, an interim order was passed on 30th April 2012 by the Co- ordinate Bench of this Court directing the authorities to maintain status quo with regard to the actual physical possession of the land in question as on the date. During

pendency of the instant writ petition, a suo motu proceeding was initiated by the competent authority under Section 14T of the said Act afresh and by the said order, 11.44 acres of land has been declared as excess to ceiling limit and vested to the State of West Bengal. A direction was further passed to take steps under Section 14S of the said Act i.e. to take possession of the vested land.

Our attention is drawn to a judgment of the Division Bench of this Court in case of Paschim Banga Bhumijibi Krishak Samiti and Ors. vs. State of West Bengal and Ors., reported in (1996) 2 Calcutta High Court Notes 212, wherein the Division Bench held that the provisions contained in Section 14V vis-à-vis the definition of the land as contained in Section 2(7) and Section 3A(3) of the Act is ultra vires to Article 300A of the Constitution of India.

It is not in dispute that the said order/judgment has been assailed before the Apex Court and an interim order of stay of the operation of the said order had been passed therein. The matter is still pending before the Supreme Court.

In the meantime, the State taking advantage of the order of stay was proceeding under Section 14T of the said Act in determining the excess land owned and possessed by the raiyat over and above the ceiling limit.

One of such matter came before the Division Bench of this Court in case of Niranjan Chatterjee and Ors. vs. State of West Bengal and Ors., reported in (2007) 3 Calcutta High Court Notes 683, wherein an argument was advanced by the State that the moment the judgment rendered in Paschim Banga Bhumijibi Krishak Samiti and Ors. (Supra) had been stayed, there is no fetter on the part of the State Government to proceed for determining the excess land under Section

14T of the said Act. The Division Bench held that the moment the provisions contained in Section 14V of the Act has been declared ultra vires on the score that there cannot be any vesting without making any lawful provision for the compensation, the State cannot be permitted to proceed on the said provision of vesting against the petitioner so long the adequate provision for compensation is not incorporated in the statute. A plea was sought to be taken by the State that once the operation of the judgment and order of the High Court is stayed by the Supreme Court, it effaces the binding efficacy of the said judgment and cannot be said to be a law applicable in this regard. The Division Bench dispelled the aforesaid contention in the following:

"After hearing the learned Counsel for the parties and after going through the aforesaid position of fact, we find that the Supreme Court by those interim order has not doubt, stayed the operation of the order of the Division Bench of this Court by directing the parties to maintain status quo but at the same time, has even restrained the State from inducting the third parties on the lands which were the subject matters before the Apex court. Such interim order is binding upon the parties to the proceedings but the law is equally settled that by mere passing of an interim order staying the operation of a judgment with certain further conditions, the existence of the said judgment is not wiped out and at the same time, for such interim order inter parties, the authority of a decision as a precedent is never undermined. Unless a decision is set aside by the Superior Court, the said decision remains effective as a superior Court has granted interim order. Moreover, once a provision has been declared ultra vires the Constitution of India, the State cannot invoke the said 'ultra vires provision' against the citizens of the country simply because an interim order of stay of operation of the order declaring the provision as ultra vires has been passed in an appeal against such order. The object of granting interim order is to see that the relief claimed in the appeal may not become in appropriate or the appeal does not become infructuous for not

granting such interim order; but by mere grant of interim stay, the effect of a binding precedent is not destabilized. Over and above, the interim orders of the stay granted by the Supreme Court clearly indicate that the said Court never intended that notwithstanding the decision of the High Court declaring a part of the provisions of vesting as ultra vires the Constitution, the State would nevertheless be free to proceed with the process of vesting during the pendency of the proceedings before the Supreme Court and that is why status quo as regards possession had been maintained and even, the State has been restrained from creating any 'third party interest' in the lands in question."

The identical issue raised in another case before the Division Bench in relation to the case Pijush Kanti Chowdhury vs. State of West Bengal and Ors., reported in (2007) 3 Calcutta High Court Notes 178 where the Division Bench reiterated and restated the proposition as laid down in Niranjan Chatterjee and Ors. (Supra). The cumulative effect of the ratio laid down in the aforesaid decision leaves no ambiguity in our mind that the provision relating to vesting without adequate provision for compensation having provided in the statute is impermissible.

We are informed that the State Government taking advantage of the lack of any specific order has proceeded on the basis of a letter dated 3rd January 2022 and put a placard/board on the conspicuous part of the land. By putting such placard/board, the information is impliedly circulated in the mind of the general public that the aforesaid land belongs to the Government of West Bengal and the physical possession of the said person is illegal and wrongful.

In view of the facts emanate from the instant case, we find that the petitioner has been able to make out a prima facie case for an interim order.

The State Government is directed to remove the

placard/board put on the land in question immediately and is further restrained from giving effect to or any further steps on the basis of the purported order dated 17th December 2021 until disposal of the application.

The State respondents are directed to file affidavit- in-opposition to the instant application within four weeks from date; reply thereto, if any, shall be filed within a week thereafter and the application is made returnable after five weeks.

Put up the matter as directed above.

(Harish Tandon, J.)

(Prasenjit Biswas, J.)

 
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