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2024 Supreme(Mad) 1420

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, C. KUMARAPPAN, JJ.
Tamil Nadu Housing Board, Represented by the Chairman cum Managing Director - Appellant
Versus
R. Ravichandran & Ors. - Respondents
W.A.Nos.2292 to 2298 of 2011 and M.P.Nos.1,1,1,1,1,1 & 1 of 2011
Decided On : 02-08-2024

Advocates Appeared:
For the Appellant :Mr. P. Kumaresan Additional Advocate General Assisted by Mr. M. Arunkumar Standing Counsel.
For the Respondents: Mr. A. Selvendran Special Government Pleader.

IMPORTANT POINT
Third-party purchasers of land acquired under the Land Acquisition Act do not possess an absolute right to 'No Objection Certificates', and the title of acquired land vests with the government, limiting the rights of original owners.

Headnote:

NO OBJECTION CERTIFICATE - LAND ACQUISITION - The court held that third-party purchasers of land acquired under the Land Acquisition Act cannot claim a 'No Objection Certificate' as an absolute right. The court emphasized that once land is acquired, the title vests with the government, and the original owners lose their rights to reconveyance unless the acquisition is quashed by the courts. The decision reinforced the need for verification of ownership and pending litigations before issuing any certificates.

Fact of the Case:

The Tamil Nadu Housing Board challenged the order directing them to issue 'No Objection Certificates' for properties acquired for housing development, arguing that subsequent purchasers cannot contest land acquisition proceedings.

Finding of the Court:

The court found that third-party purchasers do not have an inherent right to claim 'No Objection Certificates' for acquired lands, as the title transfers to the government upon acquisition. The court also noted the necessity of verifying ownership and pending litigations before issuing such certificates.

Issues: Whether third-party purchasers of acquired land can claim 'No Objection Certificates' and the implications of land acquisition on ownership rights.

Ratio Decidendi: The court established that under the Land Acquisition Act, once land is acquired, the original owners cannot seek reconveyance as a matter of right, and the issuance of 'No Objection Certificates' is contingent upon the status of the acquisition proceedings.

Result: The court disposed of the writ appeals, affirming that 'No Objection Certificates' should not be issued unless the acquisition proceedings are quashed, and directed the competent authorities to verify details of the properties and pending litigations before considering applications for such certificates.

JUDGMENT :

S.M. Subramaniam, J.

[PRAYER: Writ Appeal filed under Clause 15 of Letters Patent to set aside the order in W.P.No.538 of 2009 dated 07.10.2009.]

The intra-Court appeals on hand have been instituted challenging the order passed in the writ petitions directing the appellants to issue 'No Objection Certificate' in respect of the properties, which were acquired for the benefit of the Tamil Nadu Housing Board.

2. The Tamil Nadu Housing Board is the appellant herein.

3. Mr. P. Kumaresan, the learned Additional Advocate General would submit that by citing one order of no objection in a single writ petition, the third party purchasers are attempting to secure 'No Objection Certificate' by filing writ petitions. The petitioners, admittedly are not the original owners and subsequent purchasers. Subsequent purchasers cannot challenge the land acquisition proceedings. The land acquisition proceedings challenged by the original owners were either rejected in the writ petition stage or in the writ appeal in some cases, where acquisition proceedings are confirmed.

4. Several writ petitions and writ appeals are filed. Therefore, the Tamil Nadu Housing Board and the Government has to verify the details of the properties acquired with reference to the ownership/title and decisions are to be taken accordingly.

5. 'No Objection Certificate' cannot be claimed as an absolute right by the third party purchasers of acquired land. Once the lands are acquired by following due process under the Land Acquisition Act, the land absolutely vest with the Government and the title transferred. Thereafter, the owners have no right to claim reconveyance.

6. Section 48-B of the old Land Acquisition Act is an enabling provision, where the Government has to take decision to reconvey the land. However, the erstwhile owner of the acquired land cannot seek reconveyance as a matter of right.

7. In the present case, the lands were acquired for the benefit of the Housing Board. By citing one writ petition, several other writ petitions are filed without reference to the identical facts and those third party purchasers are attempting to secure 'No Objection Certificate' in order to secure the lands, which were already acquired. Such a practice cannot be encouraged by the Courts. Verification of facts are imminent. Therefore, we are inclined to pass the following orders :

(i) Wherever the land acquisition proceedings are concluded and confirmed by the Courts, the competent Authorities/Government is not obligated to issue 'No Objection Certificate' to the original owners or the subsequent purchasers.

(ii) If the land acquisition proceedings are quashed by the Courts, in such cases, the competent Authorities/Government has to issue 'No Objection Certificate' to the owners concerned.

(iii) If any writ appeal or other proceedings are pending before the Courts, a decision to consider the case of the application for grant of 'No Objection Certificate' is to be considered after disposal of all those cases.

8. Accordingly, the cases of the respondents herein also shall be considered by the competent Authorities/Government for issuance of 'No Objection Certificate' by verifying the details of the property acquired and the pending litigations before the Courts.

9. With the above directions, all the Writ appeals are disposed of. No costs. Consequently, connected miscellaneous petitions are closed.

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