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JK Paper Ltd. v. Bipinchandra Natwarlal Shah & Ors.

Civil Appeal · 2026 INSC 1095Decided 7 Oct 2026
Civil Appeal No. 13477 of 2026
Justice Dipankar Datta · Justice Sheel Nagu

Background

This order does not decide the main case. Land in Gujarat was acquired for JK Paper, and a reference court increased its valuation from ₹124 to ₹950 per square metre, with statutory additions and interest. Both the company and the landowners appealed, and the High Court stayed the award and recovery proceedings subject to a deposit. Their cross-appeals to the Supreme Court concerned that interim arrangement while the final compensation dispute remained pending.

Decision Breakdown

This is not a final decision on the main case. The Supreme Court disposed of the cross-appeals while leaving valuation and disputed possession facts for the High Court to decide. It continued the stay for two months and required JK Paper to deposit an additional ₹15 crore with the High Court's Registrar General within that period, without prejudicing either side's arguments. A timely deposit would keep the stay in force until further High Court orders; failure would revoke it and allow the landowners to pursue enforcement. The Court rejected the company's argument that a known gorge and waterlogging reduced the usable area, and barred it from raising that issue before the High Court. It requested expedited disposal of the pending compensation appeals, taking account of delivery of the remaining land in November 2025.

Lesson Learnt

A party benefiting from a conditional stay must meet its deposit requirement or face enforcement. The additional ₹15 crore deposit secures the pending dispute; it does not settle the land's final compensation or amount to an immediate payment to the landowners.

Official source (sci.gov.in)View Judgment (PDF)

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