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1991 Supreme(Mad) 845

High Court of Judicature at Madras
The Honourable Mr. Justice K.S.Bakthavatsalam
N.Subramaniam and others - Appellant
Versus
State of Tamil Nadu and another - Respondents
W.P.No.6082 of 1991
Decided On : 12 November 1991

Appearing Advocates:N.Ganapathy, for S.M.Kalyanasundaram and K.A.Ravindran, for Petitioners. N.G.Kalaiselvi, Government Advocate, for Respondents.

A declaration issued under Sec. 37(2) of the Tamil Nadu Town and Country Planning Act, 1971, is invalid if the entire compensation for the acquisition is to be paid out of public revenue, as the acquisition is for a local authority.

Headnote:

LAND ACQUISITION - DECLARATION - PUBLIC PURPOSE - COMPENSATION - LOCAL AUTHORITY - PUBLIC REVENUE - VALIDITY OF DECLARATION - TAMIL NADU TOWN AND COUNTRY PLANNING ACT, 1971 (35 OF 1972), SECS. 36, 37, 65 - LAND ACQUISITION ACT, 1894 (1 OF 1894), SEC. 6.

Fact of the Case:

The petitioners challenged the declaration issued under Sec. 37(2) of the Tamil Nadu Town and Country Planning Act, 1971, for the acquisition of their lands for the construction of a bus stand, alleging that the declaration was illegal as it violated the provisions of the Land Acquisition Act, 1894, and the principles of natural justice.

Finding of the Court:

The court held that the declaration issued under Sec. 37(2) of the Tamil Nadu Town and Country Planning Act, 1971, was invalid as it violated the provisions of Sec. 6 of the Land Acquisition Act, 1894. The court found that the entire compensation for the acquisition was to be paid out of public revenue, which was not permissible under Sec. 6 of the Land Acquisition Act, as the acquisition was for a local authority.

Issues: 1. Whether the declaration issued under Sec. 37(2) of the Tamil Nadu Town and Country Planning Act, 1971, was valid. 2. Whether the acquisition of the petitioners' lands for the construction of a bus stand was for a public purpose.

Ratio Decidendi: The court held that the declaration issued under Sec. 37(2) of the Tamil Nadu Town and Country Planning Act, 1971, was invalid as it violated the provisions of Sec. 6 of the Land Acquisition Act, 1894. The court found that the entire compensation for the acquisition was to be paid out of public revenue, which was not permissible under Sec. 6 of the Land Acquisition Act, as the acquisition was for a local authority. The court relied on the decisions of the Supreme Court in Valjibhai v. State of Bombay and the Madras High Court in Madan Sundararaj v. The Government of Tamil Nadu to support its conclusion.

Final Decision: The court allowed the writ petition and set aside the impugned declaration. It held that the State could take proceedings afresh rectifying the defects.

Judgment :-

The petitioners challenge G.O.Ms.No.977, Housing and Urban Development Department, dated 17.8.1990, published in the Tamil Nadu Government Gazette,

12.9.1990 and quash the publication issued under Sec.37(2) of the Town and

Planning Act 1971, in so far as the petitioners are concerned in respect of their

comprised in Survey Nos.107 and 136 in No.156, in Mamallapuram Village, Chingleput

Chengai-Anna District.

2. The short facts which lead to the filing of the writ petition follows:

The subject matter of the lands are situate in Mamallapuram village and Mamallapuram celebrated port-town, drawing a large number of tourists and pilgrims. The growth population and the influx of tourists were considered by the New Town Development Authority, Mamallapuram, the second respondent herein and since the existing bus a small one the second respondent suggested that the lands in S.Nos.107 and 136 suitable for constructing a new bus-stand. The New Town Development Authority, acting accordance with the provisions of the Tamil Nadu Town and Planning Act, 1971 prepared New Town Development Plan and submitted the same to the Government. Sec.49 of Tamil Nadu Town and Country Planning Act, 1971 provides for the enforcement of the plan so prepared from the date of consent accorded by the Government to the Plan. When Member Secretary, Mamallapuram New Town Development Authority requested Government for acquiring the above mentioned lands for construction of Bus Stand, the New Town Development Plan for Mamallapuram New Town was consented by Government under sub-sec.(2) of Sec.24 of the Town and Country Planning Act in G.O.Ms.No.968. Housing and Urban Development, dated 29.9.1989, and it was published in the Tamil Nadu Government Gazette on 15.11.1989 as required under Sec.26 of the Town and Country Planning Act, 1971. The two survey numbers in question have been reserved for Bus Stand in the above said New Town Development Plan. This was selected by the Task Force, chaired by the Chief Secretary to Government on 21.3.1988. The Committee of Town and Country Planning Board has sanctioned a sum ofRs.12.11 lakhs for the acquisition of land for the Bus Stand. In view of the provisions under Sec37(1) of the Town and Country Planning Act, a proposal was sent by the Director of Town and Country Planning to the Government for acquiring above mentioned lands under Sec.37(2) of the Town and Country Planning Act. After verifying the facts as to whether the provisions of the Act have been complied with, a draft declaration under Sec.37(2) has been approved by the Government by the impugned Government Order. The declaration as published in the Gazette reads as follows:

".....No.II(2)HOU/4461/90-Whereas, a notice was published with Mamallapuram New Town Development Authority Notification No.VI(1) 1964 of 1989, dated the 30th September, 1989, at page 597 of Part Vl-Sec.1 of the Tamil Nadu Government Gazette, dated the 15th November, 1989 of preparation of a New Town Development Plan for Mamallapuram New Town under Sec.26 of the Tamil Nadu Town and Country Planning Act, 1971 (Tamil Nadu 35 of 1972) and the Government of Tamil Nadu having been satisfied that the lands specified in the schedule below have to be acquired for a public purpose, viz., for formation of a bus-stand, and it having already been decided that the entire amount of compensation to be awarded for the lands is to be paid out of the public revenues, the following declaration is issued under Sub-sec. (2) of Sec.37 of the Tamil Nadu Town and Country Planning Act, 1971 (Tamil Nadu 35 of 1972): DECLARATION Under Sub-sec.(2) of Sec.3 of the Tamil Nadu Town and Country Planning Act, 1971 (Tamil Nadu Act 35 of 1972), the Governor of Tamil Nadu hereby declares that the lands specified in the schedule below and measuring 3.09 0 hectares, be the same, a little more or less, needed for a public purpose, to wit, for construction of a bus-stand as required in the New Town Development Plan of Mamallapuram b























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