ORIENTAL GAS CO. LTD. & ORS. vs STATE OF WEST BENGAL

The Supreme Court upheld the validity of Section 8(1)(b) and Section 9(2) of the Oriental Gas Company Act, 1970, which provided for the determination of compensation for the acquisition of a public utility undertaking based on capitalisation of net income. The Court ruled that the method of calculating compensation was not arbitrary and that the principles of compensation were consistent with the obligations of public utility services. The writ petition challenging the vires of these sections was dismissed, affirming the legislative intent behind the compensation framework.