Providing temporary relief to Tata Motors, the Supreme Court on Wednesday stayed the return of Singur land to the farmers by the West Bengal government.
The apex court, in its interim order, said the state government will hold the land and maintain status quo till further orders from Calcutta high court.
The SC directed the parties to argue the merits of the case before the high court.
Tata Motors had filed two special leave petitions requesting the Supreme Court to stay the Singur Land Rehabilitation and Development Act passed by Bengal Assembly after Trinamool Congress came to power.
It had urged the court to stop the return of land to the farmers, a process initiated by the state government after the act was passed.
The lawyer representing the state government clarified before the court that no land had been returned to farmers till now.
Mamata welcomes SC order on Singur land
Welcoming the Supreme Court's interim order on the Singur land case, West Bengal Chief Minister Mamata Banerjee on Wednesday said the apex court did not stop land survey and the "process of distribution of land".
"We welcome the Supreme court order. It will go in favour of the farmers and in favour of the people," she told reporters commenting on the apex court order.
The Chief Minister, who had a talk with government lawyer Kalyan Banerjee on the apex court order, said the Supreme Court had not stopped the land survey and process of distribution of land in Singur.
"The apex court only said that distribution of land would be stopped till the Calcutta High Court passes its judgement on the case," she said.
The Supreme Court directed the West Bengal government not to go ahead with distribution and return of land in Singur to farmers which was acquired for Tata Motors' small car project Nano.
"As an interim order, we direct state government not to hand over or return land to farmers concerned until further order passed by the Calcutta High Court," a vacation bench comprising justices P Sathasivam an A K Patnaik said.
The court was hearing a petition filed by Tata Motors challenging the order of Calcutta High Court which refused to grant any relief to it.