Supreme Court Resolves 52-Year Legal Battle Over Share Valuation With Landmark Verdict

The Supreme Court has settled a 52-year legal dispute concerning share valuation between I K Merchants Pvt Ltd and the Rajasthan government. The court modified the interest rate for delayed payments, instructing the state to pay an enhanced valuation amount with revised interest, balancing fair compensation and financial impact.

In a significant ruling on Tuesday, the Supreme Court resolved a protracted 52-year legal battle over share valuation between private entities, including I K Merchants Pvt Ltd, and the Rajasthan government. The dispute, dating back to 1973, involved the transfer of shares of Rajasthan State Mines and Minerals Ltd.

The bench, comprising Justices J B Pardiwala and R Mahadevan, clarified the courts' authority to determine suitable interest rates on delayed payments. Justice R Mahadevan highlighted the need for courts to consider the totality of facts when setting interest rates, emphasizing discretion based on specific case details.

The court's decision also revised past rulings, granting a 6% simple interest from July 8, 1975, until the decree date, and a 9% interest thereafter until payment realisation. The court emphasized balancing fairness and financial impact, rejecting excessively high interest demands while ensuring reasonable compensation.

(With inputs from agencies.)