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2008 Supreme(Mad) 4495

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE M. JAICHANDREN
R. Sundaramurthy & Another
Versus
The Assistant Commissioner, (Urban Land Tax)
W.P.No.2189 of 2003
Decided on: 04-12-2008

Advocates Appeared:
For the Petitioners:A. Muthuraman, Advocate.
For the Respondent:P. Muthukumar, Government Advocate.

The central legal point established in the judgment is the application of the Repeal Act, 1999, and its impact on pending proceedings under the Tamil Nadu Urban Land (Ceiling and Regulation) Act, 1978.

Headnote:

Urban Land - Property Acquisition - Tamil Nadu Urban Land (Ceiling and Regulation) Act, 1978 - Section 9(5), Section 21, Section 3(1)(b), Section 4 - The court discussed the application of the Tamil Nadu Urban Land (Ceiling and Regulation) Act, 1978, and its subsequent Repeal Act, 1999, particularly focusing on the validity of orders granting exemption and the effect of the repeal on pending proceedings. The court emphasized the principles of natural justice and jurisdiction in the context of property acquisition under the Act.

Fact of the Case:

The petitioners, who were in possession and enjoyment of a property, received an order from the respondent for acquisition under the Tamil Nadu Urban Land (Ceiling and Regulation) Act, 1978. The petitioners contended that the order was passed without affording them an opportunity to present their case and was contrary to the law due to the application of the Repeal Act, 1999.

Finding of the Court:

The court quashed the impugned order of the respondent, dated 112. 2002, based on the submission that it should be quashed in view of a subsequent Government Order, G.O.Ms.No.111 Revenue (ULC I(1) Department, dated 3. 2007.

Issues: The issues revolved around the validity of the acquisition order, the application of the Repeal Act, 1999, and the principles of natural justice and jurisdiction in the context of property acquisition under the Tamil Nadu Urban Land (Ceiling and Regulation) Act, 1978.

Ratio Decidendi: The court's decision was influenced by the subsequent Government Order, G.O.Ms.No.111 Revenue (ULC I(1) Department, dated 3. 2007, and the application of the Repeal Act, 1999, in abating the actions taken under the Act.

Final Decision: The impugned order of the respondent, dated 112. 2002, was quashed, and the writ petition was allowed with no costs.

Judgment :-

1. Heard the learned counsel appearing for the petitioner and the learned counsel appearing for the respondent.

2. It has been stated that the second petitioner is the daughter of the first petitioner. The first petitioner had purchased the property measuring 3645 Sq.ft comprised in Survey Nos.163 (Part), 164 (Part), 165/2 (part 2) in Athipattu Village, Chengalpattu Taluk from M. Shanmugam, under a registered sale deed, dated 3. 97, as Document No.976/97, in the office of the Sub Registrar, Konnur. The first petitioner and his daughter S.Priya, the second petitioner herein had started an industry in the said property in the name and style of `Sivakami Engineering Works in the year 1999. The first petitioner had obtained electricity service connection for running the said industry and he has also been paying the property tax. Thus, it is clear that the petitioners are in possession and enjoyment of the said property. While so, the first petitioner had received an order from the respondent, on 112. 2002, stating that 35,355 Sq.Mts in Athipattu Village, comprised in Survey Nos.162, 163, 164, 165/2, 168/1 & 2, 169, 170/3, 174/1 & 2 and 175 are excess vacant lands and therefore, they were to be acquired under Section 9(5) of the Tamil Nadu Urban Land (Ceiling and Regulation) Act, 1978. From the said communication, it was gathered that the Government had granted exemption to M/s.Friends Brick Industries under sub-Section (1) of Section 21 of the Tamilnadu Urban Land (Ceiling and Regulation) Act, 1978, for retaining 35,355 Sq.Mts. of excess vacant land in Athipattu Village. As per the said communication, a show cause notice is alleged to have been issued to the said Brick Industries, on 30.8.2000, and it had been served, on 1. 2001. Since the said Brick Industries did not respondent the Government had passed an order in G.O.Ms.No.466, Revenue (ULC) Department, dated 11. 2001, withdrawing the exemption already granted and to acquire the excess vacant land, as per Section 3 (1)(b) of the Tamil Nadu Urban Land (Celing and Regulation) Repeal Act, 1999.

3. It has been further stated that from the said communication it was noted that a notice under Section 9(4) and a draft statement under 9(1) of the Tamil Nadu Urban Land (Ceiling and Regulation) Act, 1978, had been issued to one Vasudevan of Sivagami Engineering Company. Even though the first petitioner is owner of the land and the second petitioner is the proprietrix of the Sivagami Engineering Works established in the said land, no notice had been served on the petitioners either under Section (4) or under section 9(1) of the Tamil Nadu Urban Land (Ceiling and Regulation) Act, 1978. However, the impugned order, dated 112. 2002, had been passed without affording an opportunity to the petitioners to put forth their case. Further, as per Section 4 of the Tamil Nadu Urban Land (Ceiling and Regulation) Repeal Act, 1999, all proceedings pending on the date of the commencement of the said Act would stand abated. In the present case, since the petitioners were in possession and enjoyment of the property in question, the benefit of Section 4 of the Repeal Act, 1999, would be applicable to the petitioners and therefore, the impugned order of the respondent, dated 112. 2002, would be without jurisdiction and contrary to the law applicable to the case. It would also be arbitrary, as it is in violation of the principles of natural justice.

4. At this stage of the hearing of the writ petition, a copy of G.O.Ms.No.111 Revenue (ULC I(1) Department, dated 3. 2007, has been placed before this Court by the learned counsel appearing on behalf of the respondent. The said Government Order, dated 3. 2007, reads as follows:

"ORDER

The Tamil Nadu Urban Land (Ceiling and Regulation) Act, 1978, was enacted with a view to imposing ceiling on vacant land in urban agglomerations and to prevent the concentration of urban land in the hands of a few persons. The said Act was implemented in Chennai, Coimbat









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