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2024 Supreme(Mad) 1547

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.VELMURUGAN, J.
K.Kodeeswaran – Appellant
Versus
The Special District Revenue Officer/ Land Acquisition Officer
W.P.No.35385 of 2023 and W.M.P.Nos.35355, 35356 and 35359 of 2023 and 4023 and 4024 of 2024
Decided on : 08-07-2024

Advocates:
Advocate Appeared
For the Appellant : Mr.N.Subramaniyan
For the Respondents:Mr.J.Ravindran, Addl. Advocate General assisted by Mr.T.Arun Kumar, Addl.G.P.

The court clarified that under the relevant Land Acquisition Act, compensation must include both land and structures, and both should accrue 12% interest, rejecting any limitations imposed by government orders.

Headnote:(A) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Sections 26, 30(3), and 3(p) - Tamil Nadu Highways Act, 2001 - Violation of compensation and interest provisions - Petitioner challenged Award for failing to include structures in compensation calculations and seeking quashing of G.O.(Ms) No.29 dated 24.01.2019. (Paras 2, 3, 4, 12, 44)

(B) Principle of 'just compensation' - The court emphasizes that compensation under the Act must factor in both the land and any structures, reaffirming that interest at 12% should apply to both elements, contrary to the G.O. limiting it only to land. (Paras 41, 44)

(C) Diligence in procedure - Authorities must ensure compliance with statutory provisions in passing compensation awards and notifying affected parties timely to facilitate justice. (Paras 39, 40)

Facts of the case:
Petitioners contested the acquisition of land and structures for a road over-bridge, alleging that the final Award disregarded their entitlements as per the applicable laws and previous court directives. Award was served long after issuance, creating hardship. (Paras 1, 3, 4)

Findings of Court:
The impugned G.O. was quashed, and the Award deemed non-compliant with the Central Act, requiring a recalculated award to include structural values and appropriate interest. (Paras 45(1), 45(2))

Issues: Whether the Award adhered to statutory requirements regarding structure inclusion in compensation calculations, and whether the G.O. imposing restrictions on compensation was valid. (Paras 2, 41)

Ratio Decidendi: The court held that all components of the land, including structures, must be compensated under the Act, and interest provisions apply equally, emphasizing the need for adherence to legislative directives for fair compensation. (Paras 30(3), 44)

Result: Writ Petition partly allowed; impugned G.O. quashed, and directions issued for a fresh Award reflecting correct compensation principles. (Paras 45)

Table of Content
1. writ petition filed challenging land acquisition process. (Para 1 , 2)
2. chronology of notifications and awards related to land acquisition. (Para 3 , 4 , 5)
3. implications of g.o.ms.no.29 regarding compensation. (Para 6 , 7 , 8)
4. arguments regarding calculation of interest on additional compensation. (Para 9 , 10 , 11)
5. counter-arguments from respondents regarding legality of awards. (Para 12 , 13 , 14)
6. allegations regarding delay and inadequacies in the compensation process. (Para 15 , 16 , 18 , 19)
7. court's directive on quashing prior orders and calculating compensation. (Para 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45)

ORDER :

The petitioner(s) had filed the present Writ Petition seeking to issue a Writ of Certiorarified Mandamus to call for the records from the fifth respondent relating to the issue of G.O.(Ms).No.29, Revenue and Disaster Management Department, Land Administration Wing (LA-1(1)) Section, dated 24.01.2019 and from the first respondent relating to the issue of the Award No.4/2017 (L.C.No.184) in No.878/B4/2022, dated 15.09.2022, (actually served on the petitioner on 30.05.2023), in respect of the petitioners lands having an extent of 80 Sq.Mt. situated in T.S.No.J/29/2-3 in Maravaneri Village, Salem Taluk and District, acquired by the first respondent, quash the same and consequently to direct the first respondent to pass a fresh award truly in accordance with the mandate of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 and to pay the petitioners the Award amount so passed afresh along with appropriate interest in accordance with the said Act and compounding the same for every 6 months period after a year of taking possession, till the date of payment after deducting the amounts already paid to the petitioners on 17.02.2023 and 20.10.2023 within a time frame as may be fixed by this Court and also to direct the fifth respondent to initiate appropriate disciplinary and criminal proceedings against the second respondent and others whose names are not known to the petitioners who are party to the passing of the impugned Award. (Prayer amended as per order dated 28.03.2024 in W.M.P.No.4022 of 2024 in W.P.No.35385 of 2024).

2. The petitioners have filed this Writ Petition challenging the impugned Award passed by the first respondent with consequential relief on the ground that the impugned Award has been passed in blatant violation of the mandate of Sections 26 to 28 and 80 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Act No.30 of 2013) as well as specific order of this Court, dated 03.08.2022, as it causes huge financial loss to the petitioners, thereby denying them the guarantee mandated under Article 300-A of the Constitution of India.

3. Notice under Section 15(2) of the TAMIL NADU HIGHWAYS ACT , 2001 for acquiring a portion of petitioners' land situated in Block No.29, Ward No.J, T.S.No.2/3 to an extent of 140 Sq.Mtr., situated at Periyeri Village, Salem, was issued on 02.07.2016, which was also published in Daily Thanthi newspaper on 18.07.2016. Objections were made pointing out illegality in acquiring lands under the State Act instead of the said Central Act of 2013, on 07.08.2016, 23.08.2016 and 08.02.2017. However, on 14.09.2016, enquiry was conducted pursuant to notice dated 02.09.2016 under Section 15(3) of the State Act and signatures were obtained in the prescribed format, wherein, it was made as if the consent was given to receive the highest compensation that may be arrived at as mandated under the Central Act of 2013. On 01.02.2017 and 25.05.2017, Section 15(1) Notification was issued in Government Gazette and subsequently, on 14.06.2017, an Errata was issued to the original Notification reducing the extent of land to be acquired from 140.50

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