MADRAS HIGH COURT
T. Raja, J.
IGATE Global Solutions Limited - Petitioner
Versus
State of Tamil Nadu represented by its Secretary to Government Housing and Urban Development Department & Ors. - Respondents
W.P. No. 25791 of 2010
Decided On : 02-07-2014
LAND ACQUISITION - RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013 - SECTION 24(2) - LAPSE OF ACQUISITION PROCEEDINGS - SUBSEQUENT PURCHASER - LOCUS STANDI - SECTION 48-B OF THE LAND ACQUISITION ACT, 1894 - RECONVEYANCE OF LAND - SECTION 16-A OF THE LAND ACQUISITION (TAMIL NADU AMENDMENT) ACT, 1996 - NULL AND VOID TRANSFER - SECTION 31 OF THE LAND ACQUISITION ACT, 1894 - PAYMENT OF COMPENSATION - DEPOSIT IN COURT.
Fact of the Case:
The petitioner, a subsequent purchaser of the land in question, challenged the impugned order rejecting his request for re-conveyance of the land under Section 48-B of the Land Acquisition Act, 1894. The petitioner argued that the land acquisition proceedings had lapsed as per Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, since the compensation had not been paid or deposited in the court and the physical possession of the land had not been taken.
Finding of the Court:
The court held that the petitioner had locus standi to challenge the acquisition proceedings as a subsequent purchaser, as per the rulings of the Full Bench of the High Court and the Supreme Court. The court also held that the transfer of the land in favor of the petitioner was not null and void under Section 16-A of the Land Acquisition (Tamil Nadu Amendment) Act, 1996, as it did not prohibit the transfer of land by the land owner during the acquisition proceedings. The court further held that the deposit of compensation in the government treasury was not equivalent to the payment of compensation to the landowners/persons interested, as per the ruling of the Supreme Court in Agnelo Santimano Fernandes. Therefore, the court held that the land acquisition proceedings had lapsed under Section 24(2) of the 2013 Act and set aside the impugned order.
Issues: 1. Whether the petitioner, as a subsequent purchaser, had locus standi to challenge the land acquisition proceedings? 2. Whether the transfer of the land in favor of the petitioner was null and void under Section 16-A of the Land Acquisition (Tamil Nadu Amendment) Act, 1996? 3. Whether the deposit of compensation in the government treasury was equivalent to the payment of compensation to the landowners/persons interested? 4. Whether the land acquisition proceedings had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013?
Ratio Decidendi: 1. A subsequent purchaser has locus standi to challenge the land acquisition proceedings, as per the rulings of the Full Bench of the High Court and the Supreme Court. 2. The transfer of the land in favor of the petitioner was not null and void under Section 16-A of the Land Acquisition (Tamil Nadu Amendment) Act, 1996, as it did not prohibit the transfer of land by the land owner during the acquisition proceedings. 3. The deposit of compensation in the government treasury is not equivalent to the payment of compensation to the landowners/persons interested. 4. The land acquisition proceedings had lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, since the compensation had not been paid or deposited in the court and the physical possession of the land had not been taken.
Final Decision: The court allowed the writ petition, set aside the impugned order, and directed the respondents to consider the petitioner's representation under Section 48-B of the Land Acquisition Act, 1894, and pass appropriate orders on merits.
T. Raja, J.
The present writ petition has been filed challenging the impugned letter No. 33023/LA(1)/2005-22 dated 9.3.2009 issued by the Secretary to Government, Housing and Urban Development Department, Chennai, the first respondent herein, wherein the request of the petitioner for re-conveyance of the land in question was rejected, to quash the same with a further direction to the respondents to re-convey the property measuring 4.33 acres comprised in Survey Nos. 612/5, 612/7, 612/8, 612/9, 612/10 at Sholinganallur Village from acquisition proceedings with one another direction to transfer the property to the petitioner herein. During the pendency of the writ petition, on the arrival of the new Act, namely, The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, which came into force on 1.1.2014, M.P.No.1 of 2014 was filed seeking to amend the prayer, as follows:-
"To issue a Writ of Declaration, declaring that the land acquisition proceedings in respect of the land comprised in S. Nos. 612/5, 612/7, 612/8, 612/9, 612/10 and 612/12A of Shozhinganallur Village, Shozhinganallur Taluk, Kancheepuram District as having lapsed as per Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013."
Similarly, M.P.No.2 of 2012 was filed seeking to raise additional grounds, as follows:-
"(i) No compensation has so far been paid for the lands acquired by an award that was passed in the year 1997 even after the lapse of almost of 17 years. Therefore, on coming into force of the Act 30 of 2013, the land acquisition proceedings in respect of the petitioner's land shall be deemed to have lapsed as provided under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
(ii) The physical possession of the petitioner's property has not been taken by the respondents though the award was passed in the year 1997 as this Hon'ble Court has held that the petitioner is in possession of the property. Therefore, on coming into force of the Act 30 of 2013, the land acquisition proceedings in respect of the petitioner's land shall be deemed to have lapsed as provided under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
(iii) The entire land acquisition proceedings by which the land acquisition proceedings were initiated as against the petitioner's land has been quashed by an order passed in W.P.No.6432 of 1998 and affirmed by the Division Bench as well by the Hon'ble Supreme Court. Therefore, the title of property is vested with the petitioner company consequent upon the quashing of entire notification.''
2. Mr. R. Muthukumarasamy, learned senior counsel appearing for the petitioner placed four arguments in support of the prayer. The petitioner, originally known as Mascot Systems Limited, had subsequently changed the name of the company as IGATE Global Solutions Limited with effect from 23.6.2003 and has been engaged in the business of information technology and information technology enables services. With an intention to set up a software unit in the State of Tamil Nadu, the petitioner purchased land admeasuring 4.98 acres comprised in S. Nos. 612/5, 612/7, 612/8, 612/9, 612/10 & 612/12 at Sholinganallur village, Tambaram Taluk, Kancheepuram District from Mr. Sujith Cherian and others under sale deeds dated 1.6.2001. Even before purchasing the property, an agreement was reached between the petitioner and the vendor Mr. Sujith Cherian and others for getting NOC from the appropriate authority, Income Tax Department under chapter XX-C of the Income Tax Act by filing Form 37-I on 26.2.2001. Only after accepting the petitioner's request, an order was passed under Section 269 UL(1) of the Income Tax Act granting no objection to the transfer of the property in terms of the agreement for
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