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2025 Supreme(Mad) 3227

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

Advocates:
Advocate Appeared:
For the Appellant : Mr.C.Jagadish
For the Respondent:Mr.C.Sathish, Government Advocate

Differential compensation for land acquisition is unjustifiable when lands are similar and acquired for the same purpose, ensuring equitable treatment for landowners.

Headnote:(A) Land Acquisition Act, 1894 - Section 18 - Appeal against inadequacy of compensation - Claimants challenged the compensation awarded by the Reference Court for land acquired for railway project - The LAO assessed compensation at Rs.1,23,500/- per hectare, which was deemed inadequate by claimants - The Reference Court awarded Rs.40/- per square foot, which claimants contested as discriminatory compared to nearby landowners receiving Rs.106/- per square foot - Court found no justification for differential treatment and awarded Rs.106/- per square foot including additional market value. (Paras 12, 18, 26, 27)

(B) Discrimination in Compensation - The court emphasized that when lands are similar and acquired for the same purpose, it is unjustifiable to discriminate between landowners without compelling reasons. (Paras 21, 26)

Facts of the case:
The claimants' lands were acquired for the Salem-Karur Broad Gauge Railway Line, with the LAO awarding compensation deemed inadequate by the claimants, leading to appeals for enhanced compensation.

Findings of Court:
The court found that the claimants were entitled to Rs.106/- per square foot, including additional market value, as the lands were similar to those of other landowners who received higher compensation.

Issues: Whether the claimants are entitled to enhanced compensation on par with other landowners for the same railway project.

Ratio Decidendi: The court ruled that differential compensation is unjustifiable when lands are similar and acquired for the same purpose, reaffirming the principle of equitable treatment in compensation.

Result: Appeals allowed.

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 NumbersExtent
20012025
1.431108

1.Subban (Died)

2.Kalaimani

3.Gowtham

4.Yuvaraj

67/3A &

67/13B

0.03.0

0.15.5

--------
0.18.5

2432109Srinivasan

67/4A

67/15A2

109/7

0.12.5

0.11.5

0.08.5

0.32.5

3434110Kathirvel67/15B10.07.5
4430111

1.Durairaj

2.Palaniyandi Gounder (Died)

3.Periyasamy

4.Santhamani

67/20.14.0
5433113

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 NumbersCompensation determined by the LAO
20012025
1431108

1.Subban (Died)

2.Kalaimani

3.Gowtham

4.Yuvaraj

67/3A &

67/13B

Rs.33,044.00
2432109Srinivasan

67/4A

67/15A2

109/7

Rs.58,051.00
3434110Kathirvel67/15B1Rs,13,396.00
4430111

1.Durairaj

2.Palaniyandi Gounder (Died)

3.Periyasamy

4.Santhamani

67/2Rs.25,007.00
5433113

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

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