Ceiling Act, an Expropriatory Legislation, is to be Strictly Construed: Supreme Court

07 May 2024 8:19 AM

By: Admin

In a significant ruling, the Supreme Court of India has pronounced that the Ceiling Act, described as an "expropriatory legislation," must be interpreted with utmost strictness. The judgment was delivered by a bench comprising Hon'ble Justice Surya Kant and Hon'ble Justice Dipankar Datta on October 9, 2023.

The case in question revolved around the interpretation of Section 2(q)(i) of the Ceiling Act and its application in the context of expropriatory legislation. The Court noted a discrepancy in various decisions related to this issue and emphasized the need for a strict interpretation of the Ceiling Act, considering its expropriatory nature.

In the judgment, the Court observed, "Ceiling Act, an expropriatory legislation, is to be strictly construed."

The Court further examined the payment under Section 11 of the Ceiling Act and pointed out that it should not be based solely on the fair market value. The importance of the words "in an area" in Section 2(g) and 2(q) of the Act was also highlighted.

Due to the significance of the issues raised in the case, the Court referred the matter to the Hon'ble Chief Justice for appropriate directions, indicating the need for authoritative determination of related issues by a Larger Bench.

This ruling is expected to have far-reaching implications on the interpretation and application of the Ceiling Act in land-related matters. It provides valuable guidance on how expropriatory legislations should be construed by the courts.

Prominent advocates, including Shri Jaideep Gupta, learned Senior Counsel for the appellants, and Shri Rakesh Dwivedi, learned Senior Counsel for the respondents, were involved in presenting their arguments before the Supreme Court.

Date of Decision: October 9, 2023

M/s. Kewal Court Pvt. Ltd. and Anr. vs The State of West Bengal and Ors.