A R C CEMENT LIMITED Vs. STATE OF UTTAR PRADESH
LAWS(SC)-1991-11-47
SUPREME COURT OF INDIA (FROM: ALLAHABAD)
Decided on November 20,1991

A R C Cement Limited Appellant
VERSUS
STATE OF UTTAR PRADESH Respondents

JUDGEMENT

- (1.) The petitioner is a private cement manufacturing concern. It was located within the Mussoorie and Dehradun Development Authority's jurisdiction. In terms of the court's decision that the said area would not be used for any manufacturing process which would affect the environment by pollution, under court's orders the manufacturing process has been stopped. As there was already a huge investment, we agreed to monitor the shifting of the factory and made detailed directions on September 20, 1991. Pursuant to those directions possibility of shifting to other areas has been explored and now UPSMDC - a Corporation of the State of U. P. and the petitioner have come to a general understanding on some aspects and these have been placed before us. On our suggestion, a written memorandum has been submitted and the points of agreement are : (i) UPSMDC shall supply limestone to the petitioner of a minimum of 1.7 lakh tons per year, for a period of 20 years from their limestone mines lying in the district of Mirzapur, Sonbhadra locally known as Khajrahat, Blocks 6 and 7 to their units. These areas are already on lease with the UPSMDC under the Mining Development and regulation Act of 1967 and the lease, as we understand, is expiring in 2002 A. D. Since we are of the view that a Fixed term. below 20 years would not be viable and the UPSMDC does not have a lease for that period, we are inclined to require the U. P. State government to give arenewal of the existing lease to UPSMDC, which is a State owned concern for a further term of 20 years from the date of expiry of the lease. That would enable our order to work out.
(2.) In the event of failure on the part of the UPSMDC to supply the minimum assured quantity per year, the company would be entitled to operate the mines on behalf of the UPSMDC to the extent of the shortfall or to a point of approximation thereto. The parties will have liberty to apply to this court in the event of non-supply or the alternative not working out satisfactorily.
(3.) Upsmdc shall make such other modifications and amendments in the terms and conditions of the agreement for the supply of limestone to the petitioner company as may be required by the financial institutions having contracts or agreements with the petitioner company. In the event of there being any particular difficulty, the matter may be consider-red by the court, if moved.;


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