Diwan Sugar Mills And Ors vs State Of U.P. And Ors

The Supreme Court addressed the interpretation of Section 7 of the U.P. Sugar Undertakings (Acquisition) Act, 1971, in the context of a claim for compensation by M/s. Diwan Sugar Mills. The Court held that the compensation for the acquisition of sugar stocks must be calculated based on the ex-factory market price, and that the claim for Rs. 12 lakhs was not valid as it did not account for the liabilities of the lessee. The appeal was dismissed, affirming the Tribunal's decision that the claim could not be accepted under the provisions of the Act.