Public purpose and lump sum compensation sustained the acquisition scheme; constitutional challenge to vesting of shares failed.

The acquisition and vesting of the company's shares under the 1986 Act was upheld as serving a public purpose, namely securing continued manufacture and distribution of cloth and yarn and advancing Article 39(b) and (c). The shares were treated as part of the assets connected with the undertakings, and Section 8 was read as providing lump sum compensation for the undertaking as a whole rather than separate valuation of each asset. The constitutional objections based on absence of public purpose or compensation were rejected, and the earlier decision upholding the scheme foreclosed re-agitation of the same challenge.

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Issues: Whether the acquisition and vesting of the company's shares under the 1986 Act lacked public purpose or compensation and was therefore constitutionally invalid.

Analysis: The challenge was rejected in light of the earlier decision upholding the scheme of the Act. The preamble and the structure of Sections 3, 4 and 8 showed that the acquisition served the public purpose of securing continued manufacture and distribution of cloth and yarn and of giving effect to Article 39(b) and (c) of the Constitution. The shares were treated as part of the assets connected with the undertakings, and the compensation provided under Section 8 was a lump sum compensation for the undertaking as a whole, not a separate valuation of each individual asset. The Court also held that the binding effect of the earlier decision foreclosed re-agitation of the same constitutional objections.

Conclusion: The acquisition of the shares was supported by public purpose and compensation and the constitutional challenge failed.

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