2025 Supreme(Mad) 3040
IN THE HIGH COURT OF JUDICATURE AT MADARS
N. SATHISH KUMAR, J.
The Special Tahsildar (Land Acquisition), Nallathangal Odai Reservoir Scheme, Dharapuram and Ors. – Appellants
Versus
Rajamani and Ors. – Respondents
Appeal Suit No.330 of 2022 and C.M.P. No.12101 of 2022
Decided On : 28-03-2025
For the Appellants : Mrs. R. Anitha, Special Government Pleader
For the Respondents: Ms. A. Pramila.
Land owners must receive fair compensation that reflects market value, guided by sale transactions and local land pricing, as outlined in the Land Acquisition Act.
Headnote:(A) Land Acquisition Act, 1894 - Section 4(1), Section 17(1), Section 18, Section 23(1-A) and Section 28 - Appeal against enhancement of compensation for acquired land - Compensation for agricultural land increased from Rs.29,000/- per Are to Rs.1,00,000/- per Are; compensation for manavari dry land increased from Rs.9,986/- per Are to Rs.70,000/- per Are - Higher compensation awarded due to failure to adequately value land by the Land Acquisition Officer, as prevailing market conditions warrant just compensation for land owners. (Paras 2, 4, 17-22)
Facts of the case:
The appeal pertains to land acquisition for a reservoir, with claimants asserting undervaluation of their fertile land. The reference court reassessed the compensation based on comparative sales prior to acquisition.
Findings of Court:
The reference court found that the compensation fixed by the Land Acquisition Officer was inadequate and not representative of the market value, leading to an upward adjustment of compensation.
Issues: Whether the reference court appropriately enhanced the market value of the agricultural land and manavari dry land.
Ratio Decidendi: The court upheld the principle that rightful compensation must reflect market value, which requires consideration of bona fide sale transactions and local pricing, rejecting comparables without adequate justification.
Result: Appeal dismissed; reference court’s order upheld.
| Table of Content |
|---|
| 1. land acquisition appeal and compensation details. (Para 1 , 2 , 3) |
| 2. claimants assert undervalued compensation. (Para 4 , 5) |
| 3. details of land acquisition and compensation claims. (Para 6) |
| 4. court assesses arguments for compensation enhancement. (Para 8 , 12 , 14) |
| 5. arguments presented by both parties on valuation. (Para 10) |
| 6. court's assessment of evidence and legal standards. (Para 15 , 16) |
| 7. court confirms market value determination for compensation. (Para 17 , 18 , 19) |
JUDGEMENT :
The Special Tahsildar (Land Acquisition), Nallathangal Odai Reservoir Scheme, Dharapuram; the Revenue Divisional Officer, Dharapuram; and the Executive Engineer, Water Resources Organisation, Amaravathi Water and Drainage Division, Public Works Department, Karur, have preferred this appeal suit. The respondents are claimants.
2. This appeal suit is against the order passed by the learned Subordinate Judge (Reference Court) at Dharapuram enhancing the compensation from Rs.29,000/- per Are (Rs.62,160/- per Hectare) for the agricultural land and Rs.9,986/- per Are (Rs.24,443/- per Hectare) for the manavari dry land as fixed by the LAO to Rs.1,00,000/- per Are (Rs.2,47,000/- per Hectare) for the agricultural land and Rs.70,000/- per Are (Rs.1,72,900/- per Hectare) for the manavari dry land, respectively.
3. Brief facts that lead to the filing of these appeal suits are as follows: -
(a) A total extent of 6.74.10 hectares of land in S.Nos.714/1A, 714/1B, 714/2A, 714/2B, 714/3, 714/4, 714/5A, 714/5B, 714/6 part, 715/1, 715/2, 716/1, 717/1,717/3, 718/1, 719/1, 720, 723/1 and 982/3 of Ponnivadi Village, Dharapuram Taluk, was proposed to be acquired at the request of the Tamil Nadu Public Works Department for the purpose of constructing a reservoir dam across Nallathangal Idai in Ponnivadi village. The administrative sanction was granted by G.O.No.360 dated 10.06.1998 and a notification under Section 4(1) of the LAND ACQUISITION ACT , 1894 (fort short “the LA Act,1984”) was issued in the Office Gazette No.362 dated 25.09.2020 and publications were effected in Tamil and English daily newspapers having wide circulation in the area. As it became necessary to acquire immediate possession of the lands specified in the schedule to the respective 4(1) Notifications, the Government invoked urgency provision under the provisions of sub-section (1) of Section 17 of the LA Act and as such, enquiry under Section 5-A of the LA Act, 1894, was dispensed with, invoking the emergency clause under Section 17(4) of the LA Act, 1894. Thereafter, notifications under Section 6 declarations as required under the LA Act, 1894, came to be issued. After due enquiry an award came to be passed under Section 11 of the LAND ACQUISITION ACT , 1884, vide Award No. 4 of 2003 dated 01.04.2003.
(b) The details of the land acquired from the respective claimants, compensation awarded by the LAO and the reference court are as follows :
| Sl. No. | Claimant’s Name | Survey Number | Extent | |
| In Hectare | In Acre | |||
| 1 | Rajamani | 714/1 714/1B 714/A3 | 1.35.0 | 2.98 |
(a) Superstructure and (b) 25 Nos. of coconut trees In S.No.714/1B | ||||
| 2 | 1.Samoornam 2.Natarajan 3.Palaniammal | 714/2B | 1.56 | 3.85 |
(a) Superstructure and (b) Trees | ||||
| 3 | Senniappagounder | 1.17.0 2.89 | ||
(a) Superstructure and (b) Trees | ||||
| 4 | 1.Valliyaathaal 2.Pongiaathaal | 0.07.5 | 0.18 | |
| Superstructure | ||||
| 5 | 1.Eshwaramoorthy 2.Tamilarasi 3.Palanichamy | 1.83.0 | 4.52 | |
| 6 | Sivasamy | 0.56.0 | 1.38 | |
(c) The 1st respondent/Land Acquisition Officer (LAO) took into consideration a total of 57 sale transactions that had taken place three years preceding the issuance of the 4(1) Notification (between 03.07.1997 02.07.2000) and, based on a sale transaction that took place on 26.05.2000, whereby an extent of 2.58Acres of land comprised in S.Nos.397/3 and 397/5 of Ponnivadi village was sold for Rs.72,380/- vide Doc.No.1624 of 2020, the 1st respondent had determined the market value for the acquired land at Rs.29,000/- per Are or in other words, Rs.62,160/- per Hectare. Similarly, in respect of manavari dry land, the 1st responden