The land at Singur, which the Singur Land Rehabilitation and Development Act 2011 sought to reclaim, was one of Banerjee's first major move after she became chief minister last year empowering her government to take back 400 acres of land from Tata Motors for the Nano small car project.
A number of farmers had not accepted the compensation for their land at Singur. The Trinamool Congress chief had promised to return their land to them.
It was also part of her campaign ahead of the assembly elections in the state, which she won with a landslide ending three decades of Marxist rule.
A division bench comprising Justices Pinaki Chandra Ghosh and Mrinal Kanti Chaudhury, on an appeal by Tata Motors Ltd, observed that President's assent had not been taken for the Act and as such it was void and unconstitutional.
The court also observed that what was done in Singur was acquisition of land by the said Act and as such it was void.
The implementation of the order was, however, stayed for two months by the division bench to allow the aggrieved party to appeal to the Supreme Court.
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The division bench set aside the order of Justice I P Mukerji who had held the Act to be constitutional.
Banerjee said she will continue to fight for the cause of the farmers. The state has decided to appeal against the verdict in the Supreme Court.
In Mumbai, a Tata Motors Spokesperson said "Tata Motors will study the judgement of the Calcutta High Court." (MORE)