LexASSAM SILLIMANITE LIMITED AND ANR. versus UNION OF INDIA AND ORS.
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- ASSAM SILLIMANITE LIMITED AND ANR. v. UNION OF INDIA AND ORS. DECEMBER 10, 1991 [KULDIP SINGH AND M. FATHIMA BEEVI, JJ.) The Assam Si/limanite Ltd. (Acquisition & Transfer of Refractory Plant) Act, 1976--0bject,purpose and legislative intent of-Whether governed under the Constitution of India after the Twenty fifth Amendment and prior to the Fourty-Second and Fourtyfourth Amendments. Constitution of India, 1950: A B c Articles 31, 31C, 39(b)(c), 14 and 19-The Assam Sillimanite Ltd. (Ac- quisition & Transfer of Refractory Plant) Act, 1976-Enactment to implement directions in Article 39 (b) and ( c) of the Constitution-Constitutional validity ~ . . D Constitution of India, 1950-Articles 31, 31C, 39 (b)(c), 14 and 19- lnvalidating a law in Article 31(2)-Court' s power-Scope of when Article 31C attracts, Court's interference-Scope of Constitution of India, 1950-Articles 31, 31C, 39(b)(c}-Judicial review of Court-Scope and limit of-Nexus between an enactment and the policy of State declared in Article 39(b)(c}-Test of. Constitution of India, 1950-Article 39(b)(c}-The Assam Sillimanite E Ltd. (Acquisition & Transfer of Refractory Plant) Act, 1976-Enacted under- F Plant and manufactured refractories whether constitute material resources of communitrWhether there is nexus between the objective of the Act and the policy of State contained in Article 39(b)(c). Constitution of India, 1950-Article 31C-When auracted, effect of. Constitution of India, 1950-Chapter IV~irective Principles-Pur- pose of. The appellant-company, a public .limited company-was carrying on mining business and export of Natural Khasi Sillimanite. It established G a Refractory Plant for manufacturing sillimanite corrundum. and other H 273 274 SUPREME COURT REPORTS [1991) SUPP. 3 S. C. R. A connected minerals, as per the lease deed 'dated 10.4.1963 by investing initially Rs. 1.75 crores. Though in 1964 the plant was started its operation it was closed down in July 1972. B With effect from 1.11.1972, under section l8A of the Industries (De- velopment & Regulation) Act, the Central Government-Respondent took over the plant for a .period or three years. Later it. was extended for another period of one year. Under the Assam Sillimanite Ltd. (Acquisition & Transfer of Re- C fractory plant) Act, 1976, the Government acquired the Plant. The appellant-company challenged the Constitutional validity of the Act in a Writ Petition before· the High Court. A Division Bench of the High Court dismissed the writ petition, D applying the ratio or the decision in Kesavananda Bharati' s case, (1973) Suppl. SCR 1 and holding that the object of the Act had a nexus to the policy underlying Article 39(b) or the Constitution and the Act was protected by Article 31C of the Constitution. E F In this appeal by special leave, the appellant-company challenged the High Court's judgment contending that the High Court did not apply the ratio of the decision in Kesavananda Bharati' s. case; that if the amount given in lieu or acquisition of property was illusory, arbitrary or could not be reg•ded as compensation, ·that the amount fixed in the case was illusory, as after paying the liabilities, the appellant would not only get nothing but would continue to be under liabilities; that the determination of the amount was based on no norms; that a manufacturing plant could not be said to be a material resource; that the appellant's fundamental rights guaranteed under Articles 14, 19 (l)(f) and 31 of the Constitution were violated by the Act, as it made discr~~ination between persons similarly situated and it deprived the appellant'Or the property without the G authority of a valid law and the Act was passed without following the provisions or Article 31; and that the protection of Article 31C was not available to the Act as it did not further the directive Principles in Article 39(b) or (c). Dismissing the appeal, this Court, H ~··- ASSAM SILLIMANTI'E v. U.OJ. . 275 HELD: 1.01. The Act provides for the acquisition and transfer or the A right, title and interest of the Assam Sillimanite Limited in respect or its Refractory Plant and for a matters connected therewith or incidental thereto. (278 G-H] 1.02. Articles 19(1)(1) and 31 guaranteeing right to property had been deleted from the Chapter of Fundamental Rights by the Constitution B (Fourty-Fourth Amendment) Act, 1978 and a new provis,on, Article 300A had bee
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