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2025 Supreme(Mad) 3096

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. ANAND VENKATESH, J.
United India Insurance Company Ltd. - Petitioner 
Versus
The State of Tamil Nadu, rep. by the Secretary to Government, Revenue Department and Ors. – Respondents
Writ Petition No.33116 of 2024 & WMP. No.35874 of 2024
Decided On : 11-03-2025

Advocates Appeared:
For the Petitioner: Mr. Vijay Narayan, SC for Mr. Keerthikiran Murali.
For the Respondents: Mr. P.S. Raman, AG assisted by both Mr. A. Selvendran, SGP, & Mr. B. Vijay, Standing Counsel, Mrs. P. Veena Suresh, Standing Counsel, Mr. Ramamoorthy.

The principle of promissory estoppel binds authorities to uphold previous assurances, ensuring fairness in public decision-making, particularly in land acquisition matters.

Headnote:(A) Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997 - Section 3(2) - Challenge to notice for land acquisition - Petitioner contested the acquisition, claiming legitimate expectation based on prior NOC issued by CMRL - The notice deemed a formalistic procedure post-decision, violating natural justice principles. (Para 43)

(B) Constitutional Law - Article 14 and Promissory Estoppel - Court emphasized that assurances given by authorities must be adhered to, promoting fairness and preventing abuse of power. Failure to consider objections raised violated fairness principles in decision-making, leading to the conclusion that the notice was arbitrary and unlawful. (Paras 20, 21, 43)

Facts of the case:
The petitioner, having constructed a new head office after obtaining approval from CMRL, faced land acquisition notice without being party to prior proceedings. The CMRL's aimed at utilizing the site for a metro station prompted petitions concerning alterations in plans. (Para 2)

Findings of Court:
The court determined the notice under Section 3(2) was unjust and an abuse of power, allowing the petitioner to continue its operations unfettered. (Paras 43, 46)

Issues: The court addressed overarching issues of adherence to procedural fairness and the legal application of the doctrine of promissory estoppel in public law. (Para 20)

Ratio Decidendi: The court underscored that prior approvals and representations made by public bodies are binding, and any subsequent deviations must observe fairness and due process, emphasizing the significance of listening to affected parties. (Paras 21, 43)

Result: Writ petition allowed, and the impugned notice quashed.

Table of Content
1. background on land acquisition and parties involved. (Para 1 , 2 , 3 , 4 , 5)
2. arguments presented by both parties. (Para 6 , 7 , 8)
3. discussion on alignment change and original project plans. (Para 9 , 10 , 11 , 12 , 13 , 14)
4. relocation of temple deities as part of project impact. (Para 15 , 16 , 17 , 18 , 19)
5. principles of promissory estoppel and government obligations. (Para 20 , 21 , 22 , 23 , 24)
6. reliance on the authorities' undertakings and noc. (Para 25 , 26 , 27 , 28 , 29 , 30)
7. fairness and arbitrariness in executive decisions. (Para 31 , 32 , 33 , 34 , 35)
8. legal precedent on land acquisition of religious properties. (Para 36 , 37 , 38 , 39 , 40 , 41)
9. court's conclusion on promissory estoppel and project legitimacy. (Para 42 , 43 , 44 , 45)
10. final order and implications for cmrl. (Para 46)

ORDER :

(N. ANAND VENKATESH, J.)

This a petition filed under Article 226 of The Constitution of India challenging a notice dated 26.9.2024 issued by the second respondent - the Chennai Metro Rail Limited (CMRL) under Sub-Section (2) of Section 3 of the TAMIL NADU ACQUISITION OF LAND FOR INDUSTRIAL PURPOSES ACT , 1997 (for short, the Act), calling upon the petitioner to show cause within 30 days as to why the property situated at T.S.No.329/2 measuring an extent of 837 sq.meters should not be acquired.

2. The challenge arises in the backdrop of the following facts:

(i) M/s.United India Insurance Company Limited - the petitioner has constructed a new head office, which has the unique feature of having double curvature profile both vertically and horizontally and it is the first of its kind in terms of a structural steel diagrid construction. The building consists of 14 floors with sufficient parking space and the total built up area is approximately 25,000 sq.meters.

(ii) The petitioner has obtained three-star green building certification. Such construction was put up after getting necessary approval from the fourth respondent namely the Chennai Metropolitan Development Authority (CMDA) and since this construction was put up within 50-meter radius of the route map of Phase II of the project of the CMRL, a no objection certificate (NOC) was also obtained from the CMRL before the CMDA granted approval.

(iii) Initially, a decision was taken to have an entry/exit point of the Metro Station within the premises of Arul Mighu Sri Rathina Vinayagar and Durgai Amman Temple, Whites Road, Chennai-14 (hereinafter referred to as the temple). At that stage, a public interest litigation (PIL) was instituted before this Court in W.P.No.18163 of 2024, pursuant to which, the entry and exit point of the Metro Station was proposed to be shifted to the other side of the road at the entrance tower inside the United India Insurance Company Building.

(iv) It appears that the said PIL before the First Bench was disposed on the basis of an undertaking given by the learned Standing Counsel appearing for the CMRL that the entry/exit point of the Metro Station would be shifted to the site of the petitioner. On the basis of the said undertaking, the said PIL was disposed on 08.8.2024 and the impugned notice has, thereafter, been issued by the CMRL on 26.9.2024. It is, however, an admitted fact that the petitioner was not even made a party nor was heard before orders were passed in WP.No.18163 of 2024.

3. Respondents 2 and 3 have filed a counter affidavit wherein they took a stand that the reasons given by the fifth respondent were considered, that a decision was taken to change the alignment plan, that the proposal was submitted before the First Bench of this Court, that it was recorded and that thereafter, the said PIL was disposed of by order dated 08.8.2024. According to them, pursuant to that, a revised land plan schedule was prepared by the Technical Wing of the CMRL and thereafter, the public notice was published in the local dailies on 27.9.2024 in Form B under Section 3(2) of the Act proposing to acquire an extent of 837 sq.meters

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