In a significant development in the Tata Motors vs State of West Bengal case, the high court has said that it can lay down the basic principles of compensation based on section 23 and 24 of the Land Acquisition Act, 1894. It has also asked advocate general Anindya Mitra to find out whether the state will oppose any such observation.

Justice IP Mukherjee on Wednesday said that if the observation is opposed by the state then the court will withdraw it eventually. Mitra said that the state government has always been in favour of paying compensation to Tata Motors according to the Singur Act. He is likely to respond to the court on Thursday after discussing it with the state government. Justice Mukherjee has asked Mitra to take instruction from the state government on the proposal of the court.

Tata Motors took the Mamata government to court after it accused the auto giant of abandoning the Nano project in Bengal. Tata Motors argued that it was forced to exit the state because of the agitation, which was spearheaded by the Mamata Banerjee-led Trinamool Congress.

Tata Motors counsel Samaraditya Pal argued that his client is opposed to the constitutionality of the Singur Act and the high court cannot decide a compensation amount on the basis of the Land Acquisition Act, 1894. While citing Supreme Court orders he said that the court does not have the jurisdiction to lay down principles or quantum unless it?s mentioned in the Act itself.

Terming the taking over of the Singur land by the state government as ?a ploy? Pal said that it is about getting the land and never paying Tata Motors. ?My leasehold interest taken. I am deprived of a valuable asset. What goes with that deprivation is only known to my client,? he said.

He also argued that any absence of compensation itself is in conflict with the Central Act and the Bill has to be reserved before it becomes an act. While the state government had earlier acquired the land under Land Acquisition Act, 1894, it was taken over from Tata Motors under the Singur Act which the new government instituted after it came to power.