The hearing on the petition filed by Tata Motors challenging the constitutional validity of the Singur Land Rehabilitation and Development Act 2011 commenced in the Calcutta High Court on Friday.
While the Supreme Court had granted Tata Motors “interim protection” by restraining the West Bengal government from distributing the land of the now relocated Tata Nano small car factory, the petition along with amendments has been admitted in the Calcutta High Court.
During the day, Samaraditya Pal, counsel for Tata Motors, emphasised that there was an indemnity and compensation clause in the lease agreement between the State and the company.
“The State has entered into valid agreements and is bound to honour them,” Mr. Pal said, adding that the indemnity clause “makes it [indemnity] mandatory for the lessor [the State] to the lessee [Tata Motors],” if the Company is unable to set up the small car plant.
Mr. Pal also said that the first “attack” on the factory site began through a Public Interest Litigation petition followed by several others and the State had “defended the acquisition of land” all through. He said that he was making a distinction between the “State” and the “Government.”
The Singur Land Rehabilitation and Development Act 2011 was enacted last month.
