Authority: Supreme Court of India

Order Date: 24-07-2026

Case Overview

  • Petition for Special Leave to Appeal (C) No.26245/2025 filed by Metttur Dam Small Scale Industrialists Association against the State of Tamil Nadu & others, arising from the impugned final judgment and order dated 07-08-2025 in WA No.1951/2024 passed by the High Court of Judicature at Madras.
  • The High Court had allowed appeals filed by the State of Tamil Nadu and Respondent No.6, thereby permitting conversion of the industrial land at Salem Camp (situated on the banks of the Cauvery River) for residential purposes.
  • Petitioners contended that such conversion would disturb the functioning of hundreds of industries, especially chemical units, in the Salem Camp area which had been an industrial zone since 1937.
  • Senior counsel for the petitioner: Mr. Vinay Navare; senior counsel for Respondent No.6: Mr. V.P. Sengottuvel. The bench comprised Hon'ble Mr. Justice J.B. Pardiwala and Hon'ble Mr. Justice K. Vinod Chandran.
  • The Court examined whether any error of law was committed by the High Court and concluded that no such error existed.
  • The Court clarified that, since the Government has independently decided to change the land‑use and will permit residential colonies, residents cannot object to the functioning of the industries unless the industries are not operating in accordance with law. It further directed that if Respondent No.6 proceeds with residential development, it must publicly disclose its undertaking before the Supreme Court that it will not raise objections regarding the operation of the industries, including to purchasers of residential units.
  • The order also references pending applications IA No.307383/2025 and IA No.304488/2025 seeking permission to file additional documents/facts/annexures, which are disposed of along with the petitions.

Final Outcome

  • The Supreme Court disposed of the petitions filed by the Metttur Dam Small Scale Industrialists Association, finding the High Court’s judgment correct and stating that the Government’s decision to permit residential colonies stands, subject to compliance with law by the industries.
  • All pending applications, if any, are also disposed of.

Topics: Land Use Conversion, Industrial Regulation, Judicial Review