The Government must have sufficient materials to justify the withdrawal of land from acquisition, and affected parties should be given notice and an opportunity for hearing before such withdrawal.

Satish K. Agnihotri, ACJ & K.K. Sasidharan, J.

The writ appeal and the writ petitions are at the instance of Mahindra World City Developers Limited and the challenge is primarily to the order passed by the Government in G.O.Ms.No.88, Industries (MIE 1) Department dated 30 July 2009 dropping the land in Survey Nos.405/1B2, 405/3, 405/4 and 405/5 in Chettipunniyam Village, Chengalpattu Taluk, Kancheepuram District from the acquisition proceedings at the instance of the land owners.

Writ Appeal No.564 of 2010:

2. The appellant is a Company registered under the Companies Act. The Company has been established, pursuant to the initiative taken by the Government of Tamil Nadu with the object of promoting an Industrial Park in the State. The appellant established an Industrial Park in an area of about 1400 acres on the east of National Highway 45 near Chengalpattu in the District of Kancheepuram. The main approach road to the Industrial Park had to be developed from NH-45 towards eastwards through the lands in Survey No.405 of Chettipunniyam Village and the lands of the Forest Department in Thirutheri Reserve Forest and more particularly in Survey No.108/1 of Thirutheri Village. The land in Survey No.405 situated at the entry point of the Industrial Park was included in the Master plan prepared for the project launched by the appellant. The lands owned by respondents 4 to 6 are situated adjacent to the Industrial Park. The appellant obtained permission from the Forest Department to use the forest land, after giving alternative land. The appellant wanted the land in Survey No.405 of Chettipunniam Village to connect the Industrial Park with the National Highway. The appellant made a proposal before the Government of Tamil Nadu to acquire the land in Survey No.405. The Government accorded permission for acquiring the land.

3. The Government issued a notification under Section 4(1) of the Land Acquisition Act, 1894 (hereinafter referred to as "the Act") in G.O.Ms.No.676, Industries (MID-I) Department, dated 1 September, 1999 in respect of the land in Survey Nos. 405/1A2 (Part), 405/1B2 (Part), 405/3, 405/4 and 405/5 measuring a total extent of 2.02.5 hectares situated at Chettipunniyam Village, Chengalpattu Taluk. The notification indicates that the land was acquired for Mahindra Industrial Park Limited for setting up an Auto Ancilliary Industrial Park. The Government followed the statutory requirements resulting in issuing a declaration under Section 6 of the Land Acquisition Act in G.O.Ms.No.334, Industries (MD-1) Department dated 20 September 2000.

4. While so, respondents 4 to 6 challenged the land acquisition proceedings in W.P.Nos.18114 to 18116 of 2000. The Government opposed the writ petition by filing counter affidavit indicating that the land is required for a larger purpose. The writ petitions were allowed by order dated 31 August 2001 quashing the Government Order in G.O.Ms.No.334 dated 20 September 2000 issued under Section 6 of the Act. However, liberty was granted to the Government to proceed afresh from the stage of enquiry under Section 5-A of the Act.

5. While the land acquisition proceedings were pending, the Government enacted the Tamil Nadu acquisition of Land for Industrial Purposes Act, 1997, (hereinafter referred to as "Industrial Purposes Act") which came into force on 21 September 2001. The Government issued an order in G.O.Ms.150, Industries (MIE-2) Department dated 30 November 2006 under Section 3(1) of the Industrial Purposes Act for acquiring 2.02.5 hectares of patta lands in Survey No.405/3,4 and 5 etc., in Chettipunniyam Village for setting up an Auto Ancilliary Industrial Park by the Mahindra World City Developers Ltd. In view of the notification under Section 3 (1) of the Industrial Purposes Act, the land sought to be acquired absolutely vests with the Government free from all encumbrances. The third respondent thereafter issued an order dated 5 February 2007 under Section 4(2) of the Industrial Purpo