Bombay Burmah Trading Corporation Completes Land Handover as Supreme Court Lease Rent Dispute Continues

Bombay Burmah Trading Corporation Completes Land Handover as Supreme Court Lease Rent Dispute Continues​

The Bombay Burmah Trading Corporation Limited (BBTC) has completed the handover of remaining plantation land and associated structures to the State Forest Department, marking a significant operational milestone in the long-running legal dispute regarding its tea estate in Singampatti, Tamil Nadu. The corporation recently filed an Interlocutory Application before the Supreme Court seeking to expunge specific lease rent observations from the court’s order dated May 29, 2026.

The Corporation had operated a tea estate on the land under a 99-year lease agreement dating back to February 12, 1929. In December 2023, BBTC determined that continued leasehold operations were unviable and subsequently ceased all plantation and factory activities starting June 16, 2024.

Completion of Operations and Land Transition​

The cessation of operations led to the introduction of a Voluntary Retirement Scheme for 534 workers, and all payable dues under the VRS have been duly settled or deposited with the Assistant Commissioner of Labour (Plantation).

The legal battle surrounding the operation closure was challenged by workmen in various Writ Petitions before the Madurai Bench of the Madras High Court. These petitions were dismissed by the Madras High Court through a judgment dated December 3, 2024. One workman, A John Kennedy, subsequently appealed this decision to the Supreme Court (Civil Appeal No. 6395-6397 of 2025).

During the pendency of these appeals, BBTC had previously handed over 8,152.13 acres out of a total of 8,373.57 acres on May 8, 2025, retaining 221.44 acres which included bungalows and factory buildings while the Corporation arranged time for property entry and removal of movable assets.

The Supreme Court reviewed the matter in Civil Appeal Nos. 6395 -6397 of 2025 on May 29, 2026. The Court noted BBTC's efforts toward dismantling factory structures and its substantial progress in handing over possession of the leased plantation land to the State Forest Department. Furthermore, the Supreme Court recorded the completion of the VRS settlement through disbursements made via the office of the Assistant Labour Commissioner, Nagercoil.

Final Handover and Lease Rent Dispute​

BBTC subsequently demobilized all movable assets, dismantled machinery, and demolished the factory buildings standing on the retained 221.44 acres. Possession of this final area was formally handed over to the Forest Department on July 11, 2026, on an 'as is where is basis'.

While the Supreme Court’s order addressed several aspects of the estate's handover, including forest land restoration and plantation area transfer, a separate issue regarding lease rent arose. The Supreme Court, based on a report prepared by the Central Empowered Committee (CEC), recorded that certain lease rentals "remain to be recovered" by the State Government from the Corporation.

BBTC stated that this particular issue does not pertain to the Civil Appeals before the Supreme Court. The corporation countered that the CEC's internal calculation of Rs 4,655 crs was derived from an unapproved departmental calculation which BBTC maintains lacks jurisdiction and has never received any communication or demand based on such a sum.

The Supreme Court order, however, referenced earlier rulings by the Madras High Court concerning lease rent demands made by the State Government, which amounted to Rs 231.9 crs. The SC Order directed the State to follow the orders of the Madras High Court regarding these matters.

In response to the sustained dispute over the rental calculation and lack of official demand or opportunity for objection, BBTC filed a detailed Interlocutory Application before the Hon'ble Supreme Court on July 21, 2026, seeking an order recalling and expunging the observations pertaining to lease rent contained in the court’s ruling.

BBTC Stock Price Movement​

The Bombay Burmah Trading Corporation Limited shares settled lower today, shedding 0.53% and closing at ₹1491.4 after trading down by ₹8.00. The stock traded within a range throughout the session, with 16,193 shares accounted for in the total volume.