Case Background

This disclosure is in continuation of earlier letters dated August 14, 2023, February 27, 2024, and June 19, 2025. The matter pertains to Writ Appeal WA(MD) 1436/2025 filed by the Government of Tamil Nadu challenging the Madras High Court Madurai Bench Order dated February 26, 2024, passed in W.P(MD) No.11192 of 2017.

Case Developments and Court Orders

Following the February 26, 2024 order, DCW Limited filed a fresh request with the Government specifying survey numbers of lands sought to be allotted and awaited a hearing. The Government subsequently filed the writ appeal seeking stay and challenging the High Court order.

The Madras High Court (Madurai Bench) Division Bench issued several orders:

  • June 13, 2025: Directed that DCW Limited shall not be evicted till disposal of the Writ Appeal and granted interim stay.
  • November 03, 2026: Order uploaded on court website on November 10, 2026 (physical copy awaited), which dismissed the government's appeal with several key findings:
  • If lands are resumed, it will have adverse impact on the company
  • Company would suffer detriment if government went back on their "precise and unambiguous" promise
  • Government blamed for inactivity and cannot take advantage of their own wrong
  • Company must pay market value for lands as determined by government, with company to be associated in valuation process
  • All ingredients of proprietary estoppel principle fulfilled with unequivocal government promise
  • Permitting resumption would lead to unjust result applying test of unconscionability
  • Bench endorsed reasons assigned by the single judge
  • Rejected government's additional argument about company possessing other nearby lands

Financial Impact

The court has determined that DCW Limited must pay the market value for the lands as determined by the government, with the company to be involved in the valuation process. The exact financial impact will depend on the final valuation determination.

Reason for Delay in Disclosure

The order was intimated by the plant to head office on November 10, 2026. Disclosure was delayed due to November 10, 2026 being a Diwali holiday at the company's head office, followed by time required for reviewing the order and assessing its implications and impact on the company.