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STATE OF U.P. versus M/S LAKSHMI SUGAR & OIL MILLS LTD. AND ORS.

Citation: [2013] 9 S.C.R. 345 · Decided: 12-09-2013 · Supreme Court of India · Bench: T.S. THAKUR · Disposal: Appeal(s) allowed

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Judgment (excerpt)

[2013] 9 S.C.R. 345 
STATE OF U.P. 
v. 
M/S LAKSHMI SUGAR & OIL MILLS LTD. AND ORS. 
(Civil Appeal No. 8085 of 2013 etc). 
SEPTEMBER 12, 2013. 
[T.S. THAKUR AND JAGDISH SINGH KHEHAR, JJ.] 
UTTAR 
PRADESH 
SUGAR 
UNDERTAKINGS 
(ACQUISITION) ACT, 1971: 
A 
B 
c 
s.2(h)(vi) read with s.3 -
'Scheduled undertaking' -
Vesting of, in Sugar Corporation - Land of $Ugar factory 
shown in revenue records as "Parti Kadim Tilla" (land not 
cultivated for a long time and in the form of hillock), held by 
consolidation authorities as vested in the Corporation - High o 
Court directing to restore the name of sugar Company in 
revenue records - Held: All the three statutory authorities 
concurrently held that there was no evidence on record to 
show that the subject land was ever held or occupied by the 
respondent-Company for agricultural purposes or that any 
E 
agricultural activity was ever carried out on the same -- These 
concurrent findings of fact could not have been reversed by 
the High Court in its writ jurisdiction -- Therefore, the subject 
land has been rightly taken as vested in the Corporation. 
CONSTITUTION OF /NOIA 1950: 
F 
Art. 226 - Writ jurisdiction of High Court - Scope of -
High Court reversing the concurrent findings of all the three 
consolidation authorities -
Held: Whether or not the 
respondent-company held or occupied the subject land for G 
cultivation was essentially a question of fact, answered against 
the company -- High Court failed to appreciate that it was not 
sitting in appeal over the findings recorded by the authorities 
below -- It could not reappraise the material and hold that the 
345 
H 
346 
SUPREME COURT REPORTS 
[2013] 9 S.C.R. 
A land was held or occupied for cultivation and substitute its own 
finding for that of the authorities -- High Court, thus, committed 
an error - Uttar Pradesh Sugar Undertakings (Acquisition) 
Act, 1971. 
B 
The sugar-factory belonging to the respondent-
company stood vested in the appellant-U.P. Sugar 
Corporation w.e.f. 28.10.1984, in terms of s.3 of the U.P. 
Sugar Undertakings (Acquisition) Act, 1971. The 
Consolidation Officer by an order dated 2.9.1992 directed 
that the subject land belonging to sugar-factory be 
C recorded in the name of the appellant-Corporation in the 
revenue records. The appeal of the respondent was 
dismissed by the S9ttlement Officer, Consolidation and 
its revision was dismissed by the District Consolidation 
Director/Collector. However, the High Court in writ 
D petition reversed the orders of the consolidation 
authorities and directed to delete the name of the 
appellant-Corporation and restore that of the respondent-
sugar-Company in the revenue records. 
E 
Allowing the appeals, the Court 
HELD: 1.1. Section 2(h)(vi) of the U.P. Sugar 
Undertakings (Acquisition) Act, 1971 lays down that all 
lands, other than those held or occupied for purposes of 
F cultivation and grovelands, are treated as being part of 
the 'scheduled undertaking' which would upon 
acquisition vest in the appellant-Corporation, provided 
such lands and buildings are "held or occupied for 
purposes of the sugar factory". The test is whether the 
asset or any interest therein is held or occupied 'for 
G purpose of a sugar factory'. If the answer is in the 
affirmative, the same is treated to be a part of the 
scheduled undertaking that would vest in the appellant-
Corporation upon acquisition. [para 14] [354-G-H; 355-C] 
H 
1.2. It is evident not only from a plain reading of s:2(h) 
STATE OF U.P. v. LAKSHMI SUGAR & OIL MILLS 
347 
LTD. 
but also the interpretation placed upon the same by thisβ€’ A 
Court that grovelands and lands held for cultivation are 
excluded from the definition of undertaking. But all other 
lands and buildings if held or occupied for the purpose 
of the sugar factory would comprise the undertaking and 
would upon acquisition vest in the Corporation. [para 16] B 
[356-B] 
1.3. In the case at hand, it was not the case of the 
respondent-company that the land in question was 
groveland nor was it the case of the company that the 
land even though not meant for cultivation was held for C 
a purpose other than the sugar factory. All the three 
statutory authorities concurrently held that there was no 
evidence on record to show that the subject land was 
ever held or occupied by the respondent-company for 
agricultural purposes or that any agricultural activity was D 
ever carried out on the same. These concurrent findings 
of fact coul

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