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2024 Supreme(Mad) 1812

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, C. KUMARAPPAN, JJ.
The Tamil Nadu Housing Board, Represented by its Chairman - Appellant
Versus
A.L. Arumugam (Died) & Ors. - Respondents
W.A. No. 1131 of 2015 and M.P. No. 1 of 2015
Decided On : 13-06-2024

Advocates Appeared:
For the Appellant :Mr. P. Kumaresan Additional Advocate General Assisted by Dr. N. Moorthy.
For the Respondents: Mr. A. Selvendran Special Government Pleader, Mr. T. Sriram for Mr. B. Sanjay Balachander.

IMPORTANT POINT
Subsequent purchasers of land acquired under the 1894 Act cannot claim rights under the 2013 Act as their transactions are void.

Headnote:

Land Acquisition - Land Acquisition Act - Sections 4(1), 6, 7, 24(2) - The court interpreted the provisions of the Land Acquisition Act and the implications of void transactions post-acquisition, affirming that subsequent purchasers cannot claim rights under the new Act.

Fact of the Case:

The Tamil Nadu Housing Board challenged a Writ Court's order that quashed land acquisition proceedings initiated in 1975, arguing that the due process was not considered.

Finding of the Court:

The court found that the new Land Acquisition Act of 2013 did not apply, as the acquisition was completed before its enactment, and subsequent purchasers had no valid claim.

Issues: Whether the land acquisition proceedings were valid and if subsequent purchasers could claim rights under the new Land Acquisition Act.

Ratio Decidendi: The court held that transactions made after the Section 4 notification are void, and such purchasers cannot invoke rights under the new Act, as the land was already acquired.

Result: The Writ Appeal was allowed, and the Writ Court's order was set aside.

JUDGMENT :

S.M. Subramaniam, J.

[PRAYER: Writ Appeal filed under Clause 15 of Letters Patent to allow the writ appeal by setting aside the order passed by the learned Judge in W.P.No.28699 of 2014 dated 08.01.2015.]

The present Intra-Court appeal has been instituted challenging the order dated 08.01.2015 passed in W.P.No.28699 of 2014.

2. The land acquisition proceedings are quashed by the Writ Court and challenging the same, the Tamil Nadu Housing Board preferred the present writ appeal.

3. Mr. P. Kumaresan, learned Additional Advocate General appearing on behalf of the appellant would submit that by merely referring the acquisition proceedings of the adjacent land, the Writ Court quashed the land acquisition proceedings, which is untenable. The due process followed in the present case by the authorities competent are not considered by the Writ Court. Thus, the Housing Board preferred the present appeal.

4. The fact remains that Section 4(1) Notification under the Land Acquisition Act, was approved by the Government in G.O.Ms.No.412, Housing and Urban Development Department dated 09.05.1975. 4(1) Notification was published in Tamil Nadu Government Gazatte on 11.06.1975. Draft declaration under Section 6 and draft direction under Section 7 of the Land Acquisition Act were approved by the Government vide G.O.Ms.No.952, Housing dated 07.06.1978. The draft declaration under section 6 and direction under Section 7 of the Act were published in the Tamil Nadu Government Gazatte on 09.06.1978.

5. Award No.2 of 1984 was passed in respect of lands in survey No.69/1B measuring to an extent of 0.72 acres in Nesapakkam Village on 25.09.1984. Possession of the subject land was taken over by the Tamil Nadu Housing Board from the Land Acquisition Officer on 06.11.1984. Thereafter, the award amount was deposited before the Chennai City Civil Court under Sections 30 and 31 of the Land Acquisition Act on 25.09.1989.

6. After passing of award, Late. Mr. A.L. Arumugam / 1st respondent purchased the land through a Sale Deed dated 25.05.2007. Based on the purchase, the 1st respondent submitted an application seeking permission for building construction. However, the Board rejected the said application. Subsequently, the writ petition was filed for a direction not to insist for No Objection Certificate from the Tamil Nadu Housing Board. Another writ petition was filed for a declaration that the land acquisition proceedings are lapsed under Section 24(2) of Act 30 of 2013 (New Land Acquisition Act).

7. We are of the considered opinion that the new Land Acquisition Act of the year 2013 has no application with reference to the facts of the present case. The acquisition proceedings initiated in the year 1975 ended by passing an award on 25.09.1984. The award amount was deposited in the City Civil Court in the year 1989. Therefore, declaration under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 would not arise at all. More so, the respondent is a subsequent purchaser, who had purchased the acquired land after passing of the award. After passing award, the land absolutely vest with the Government and therefore, the sale will became invalid and non-est in law. The legal position regarding application of Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 has been settled by the Constitution Bench of the Hon’ble Supreme Court of India in the case of Indore Development Authority vs. Manoharlal and Others reported in (2020) 8 SCC 129. Subsequently, the three Judges Bench of the Hon'ble Supreme Court of India in the case of Shivkumar and Another vs. Union of India and Others reported in (2019) 10 SCC 229, held as follows;

    “18. Even otherwise, proviso to Section 24(2) does not recognise a purchaser after Section 4 notification inasmuch as it provides that where an award has been made, and the compensation in respect

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