IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.Sathish Kumar, J.
Subban (Died) and ors. - Appellants
Versus
The Special Tahsildar, (Land Acquisition) and ors. - Respondents
Appeal Suit Nos.108, 109, 110, 111 & 113 of 2025
Decided On : 07-03-2025
JUDGMENT :
N.Sathish Kumar, J.
The claimant(s) in the references under Section 18 of the Land Acquisition Act, 1894 , have come up with the present appeal suits challenging the inadequacy of the enhanced compensation granted by the Reference Court (Principal Subordinate Court) at Namakkal.
2. No cross-objections either from the State/LAO or the requisitioning body.
3. For the sake of convenience and for easy reference, the appellant(s) in these appeal suits will be referred to as the claimants, while the 1st respondent will be referred to as the LAO, and the other official respondent will be referred to as the requisitioning body wherever the context so requires.
4. A total extent of 9.96.5 Hectares of land situated in Varagurampatty village in Namakkal Taluk and District, was acquired for the formation of a new Broad Gauge Railway Line between Salem – Karur (via Namakkal) under Award No.32 of 2000-2001 dated 12.05.2000. The details of the lands belonged to the respective claimants which were acquired for the railway project and the compensation awarded by the Land Acquisition Officer as well as the reference court are as follows: -
| Sl. No. | LAOP No. | AS No. | Name of the Claimant(s) | Survey Numbers | Extent |
| 2001 | 2025 | ||||
| 1. | 431 | 108 | 1.Subban (Died) 2.Kalaimani 3.Gowtham 4.Yuvaraj | 67/3A & 67/13B | 0.03.0 0.15.5 -------- |
| 2 | 432 | 109 | Srinivasan | 67/4A 67/15A2 109/7 | 0.12.5 0.11.5 0.08.5 0.32.5 |
| 3 | 434 | 110 | Kathirvel | 67/15B1 | 0.07.5 |
| 4 | 430 | 111 | 1.Durairaj 2.Palaniyandi Gounder (Died) 3.Periyasamy 4.Santhamani | 67/2 | 0.14.0 |
| 5 | 433 | 113 | 1.Palaniyandi Gounder (Died) 2.Periyasamy 3.Santhamani | 67/11B & 67/12B | 0.09.0 0.09.5 -------- 0.18.5 |
5. Brief facts that lead to the filing of these appeal suits are as follows: -
Notification under Section 4(1) of the Land Acquisition Act, 1894 , was published in the Tamil Nadu Government Gazette Extra-ordinary No.314 Part II, Section -2 at Pages 1-4 dated 21.04.1999 for the acquisition of a vast extent of land measuring 9.96.6 Hectares for the formation of the Salem-Karur Broad Gauge Railway Line. As the acquisition was made by invoking the emergency clause under Section 17 of the LA Act, 1894, after dispensing with the enquiry under Section 5-A of the LA Act, 1894 a declaration under Section 6 was published on 25.05.1999. On 12.06.2000, a final award was passed by the LAO and Special Tahsildar (L.A.), Salem-Karur Broad Gauge Railway Project.
6. The LAO assessed the compensation amount payable to the claimants as follows: -
| Sl. No. | LAOP No. | AS No. | Name of the Claimant(s) | Survey Numbers | Compensation determined by the LAO |
| 2001 | 2025 | ||||
| 1 | 431 | 108 | 1.Subban (Died) 2.Kalaimani 3.Gowtham 4.Yuvaraj | 67/3A & 67/13B | Rs.33,044.00 |
| 2 | 432 | 109 | Srinivasan | 67/4A 67/15A2 109/7 | Rs.58,051.00 |
| 3 | 434 | 110 | Kathirvel | 67/15B1 | Rs,13,396.00 |
| 4 | 430 | 111 | 1.Durairaj 2.Palaniyandi Gounder (Died) 3.Periyasamy 4.Santhamani | 67/2 | Rs.25,007.00 |
| 5 | 433 | 113 | 1.Palaniyandi Gounder (Died) 2.Periyasamy 3.Santhamani | 67/11B & 67/12B | Rs.33,044.00 |
7. Being aggrieved by the compensation awarded by the LAO/Special Tahsildar, the appellants sought reference(s) to the Principal Subordinate Judge/Reference Court at Namakkal to establish their claims for enhanced compensation. Accordingly, the LAO made reference under Section 18 of the Land Acquisition Act, 1894 .
8.0 The claim of the landowners before the reference court in brief is as follows: -
8.1 The lands belonging to the claimants, along with other lands, were acquired for the formation of the Salem to Karur Broad Gauge Railway Line Project. The LAO awarded a sum of Rs. 1,23,500/- per hectare. The market value fixed by the 1st Respondent for compensation towards the land acquired from the claimants is very low, and it does not reflect the correct and true market value.
8.2 The LAO, for the purpose of fixing the compensation, selected the value of the lands comprised in S.Nos.60/6, 60/7, 61/1, and 61/2 in Vagurampatty Village as data land. The said lands are situated far away from acquired lands. The LAO ought to have considered the sale transactions relating to the lands adjacent to the acquired lands.
8.3 The acquired lands are near and adja
Differential compensation for land acquisition is unjustifiable when lands are similar and acquired for the same purpose, ensuring equitable treatment for landowners.
The main legal point established in the judgment is the determination of fair compensation for acquired lands based on the prevailing market rate and the evidence presented to establish the market va....
The court upheld the Reference Court's enhanced compensation for acquired land, emphasizing the need for evidence-based valuation while modifying the interest rate to 9% per annum from the date of aw....
The determination of land compensation must consider comparable sales and surrounding development potential to ensure fair market value.
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