Supreme Court rules summary eviction not allowed in bona fide title dispute

The case concerns a dispute over 40.65 acres of land in Nellore District, where the State claimed the land was 'assigned land' that reverted to the Government due to unauthorized transfer, while the appellants (a company in liquidation and its auction purchaser) argued they held valid title and possession.

Who it concerns: Appellants: M/s Circar Paper Mills Ltd. (represented by Official Liquidator) and J.K. Sugar Mills (purchaser); Respondents: District Collector, Nellore District & Ors. (State); Bench: Justice K. Vinod Chandran.

What the court decided

• The Court noted that the State's claim of the land being 'assigned' was contradicted by its own admission that the land was assigned to B.J. Rao, who was not a landless person.
• The Court observed that the State failed to substantiate its claim with evidence beyond a tabular statement in a counter affidavit.
• The Court noted that the State did not approach the Company Court to challenge the auction sale despite the sale being conducted under the Company Court's orders.
• The Court expressed doubt as to whether the claim of reversion of assigned lands could be adjudicated in proceedings dealing with company liquidation and auction.

Also in the document

• The judgment is marked as 'Non-Reportable'.
• The Court noted that the State issued a telegram to exclude the land from auction without approaching the Company Court, which was found to be belated.
• The Court noted that the State's counter affidavit admitted the land was 'private patta lands' in earlier proceedings.