DIWAN SUGAR MILLS vs STATE OF UP .

The Supreme Court upheld the interpretation of Section 7 of the U.P. Sugar Undertakings (Acquisition) Act, 1971 by the Tribunal, which denied the appellant's claim for Rs. 12 lakhs as compensation for the acquisition of a sugar factory. The Court clarified that compensation must be determined in accordance with the provisions of the Act, specifically noting that any liabilities of the lessee must be deducted from the compensation amount. The appeal was dismissed, affirming the Tribunal's decision and the statutory framework governing compensation.