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2025 Supreme(Mad) 3610

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. SATHISH KUMAR, J.
The Special Tahsildar (LA) TACID Oragadam Scheme - Appellant 
Versus
B.Jayalakshmi - Respondent 
Appeal Suit Nos.710 to 870, 872 to 883, 889, 891 to 902, 909, 912, 916, 918 of 2024 Appeal Suit Nos.556, 557, 558, 559, 560, 561, 562, 563, 564, 566, 567, 568 of 2023 and C.M.P.Nos.22834, 22835, 22836, 22837, 22840, 22841, 22842, 22844, 22846, 22847, 22848, 22849, 22851, 22854, 22855, 22857, 22859, 22861, 22862, 22863, 22864, 22865, 22866, 22867, 22868, 22869, 22871, 22872, 22873, 22874, 22875, 22877, 22878, 22879, 22880, 22881, 22883, 22884, 22885, 22887, 22888, 22889, 22891, 22894, 22895, 22896, 22899, 22900, 22901, 22903, 22904, 22906, 22907, 22909, 22911, 22912, 22913, 22914, 22915, 22916, 22917, 22918, 22919, 22920, 22921, 22923, 22925, 22926, 22928, 22929, 22931, 22933, 22936, 22937, 22938, 22939, 22943, 22944, 22945, 22946, 22947, 22948, 22949, 22950, 22951, 22952 22953, 22954, 22955, 22956, 22957, 22958, 22959,22962, 22963, 22964, 22965, 22966, 22968, 22969, 22970,  22971, 22972, 22975, 22979, 22980, 22983, 22984, 22986, 22990, 22993, 22996, 22998, 23000, 23005, 23006, 23007 23008, 23011, 23012, 23014, 23020, 23028, 23029,23031, 23032, 23033, 23034, 23035, 23036, 23038, 23039 23040, 23041, 23042, 23045, 23046, 23047, 23048, 23049, 23050, 23051, 23052, 23053, 23055, 23056, 23058, 23060, 23061, 23062, 23063, 23064, 23065, 23067, 23070, 23073, 23077, 23080, 23098, 23204, 23208, 23213, 23219, 23224, 23227, 23228, 23230, 23234, 23236, 23239, 23240, 23244, 23461, 23267, 23466, 23468, 23471, 23474, 23476, 23477, 23480, 23482, 23483, 23485, 23486, 23487, 23826, 24032, 24094 & 24144 of 2024 
Decided on : 07-02-2025

Advocates:
Advocate Appeared:
For the Appellant : Mrs.R.Anitha, Special Government Pleader, Mr.T.Arunkumar, Mr.P.Gurunathan, Mr.C.Sathish, Mr.V.Ramesh, Mr.R.Siddarth, Mr.N.Muthuvel, Mr.J.Daniel, Mr.D.Gopa
For the Respondent: Ms.A.Jagadeeswari, Ms.S.Magarani, (Standing Counsel)

Market value in land acquisition must reflect fair compensation by considering local comparable sales despite development charges; enhancements by tribunal upheld as reasonable.

Headnote:(A) Land Acquisition Act, 1894 - Sections 4(1), 6, and 17 - Appeal by State against enhancement of compensation for acquired land from Rs.300/- to Rs.4,754/- per cent by Tribunal - Tribunal considered various sale transactions and established market value based on comparable sales. (Paras 1-4, 9.1-9.2)

(B) Compensation assessment - Market value of land must reflect true value considering proximity to developed infrastructure, with examples of prior sales cited as well as deduction being justifiable when properly supported (e.g., 20% deduction applied) - Fair market value principle upheld. (Paras 18-23)

Facts of the case:
The State acquired approximately 113.35.5 Hectares of land in Oragadam village for industrial development, invoking emergency provisions under the Land Acquisition Act. Claimants challenged the awarded compensation of Rs.300/- per cent as inadequate, asserting higher market values based on local transactions.

Findings of Court:
The Tribunal granted compensation at Rs.4,754/- per cent, having determined the market value based on several recent sales after applying a deduction for development charges.

Issues: Whether the enhancement of compensation awarded by the Tribunal was supported by sufficient evidence and whether the deduction for development charges was justified.

Ratio Decidendi: The Court held that the previous sales in the locality constituted valid comparables for assessing the market value of the acquired land, thus affirming the Tribunal's assessment of compensation as reasonable and fair. The deduction of 20% towards development charges was adequately justified.

Result: Appeals dismissed, Tribunal's order confirmed.

Table of Content
1. overview and background of land acquisition (Para 1 , 2 , 3 , 4)
2. arguments presented regarding compensation details (Para 5 , 6 , 11 , 12)
3. contentions of the parties involved in the appeals (Para 7 , 8 , 10)
4. evidence considerations affecting compensation adjustments. (Para 13 , 14 , 15)
5. court's affirmation of tribunal's compensation determination. (Para 16 , 17)
6. court's views on the reasonability of compensation determination (Para 18 , 19 , 21 , 22)
7. discussion on admissibility of development charges (Para 24 , 26 , 27)
8. final judgment and dismissal of appeals (Para 32 , 33)

JUDGMENT :

The appellant in these appeals is the State. All these Appeal Suits arise out of the common judgement dated 30.09.2021 and individual decree (s) passed by the Land Acquisition Tribunal (Principal Subordinate Jude) at Kancheepuram [for short, “the Tribunal”] in L.A.O.P.No.192 of 2008 and batch of cases enhancing the compensation to Rs.4,754/- per cent from Rs.300/- per cent fixed by the LAO for the land(s) acquired from the land owner(s).

2. The appellant in these appeal suits is the Referring Officer - Special Tahsildar (LA), TACID, Oragadam Scheme, Irungattukottai, Kanchipuram District. The private respondent(s) are claimants and the Managing Director, SIPCOT TACID Division, the official respondent is the requisitioning body.

3. For the sake of convenience and for easy reference, the appellant in these appeals will be referred to as the State while the private respondent(s) will be referred to as the claimants and the official respondent will be referred to as the requisitioning body wherever the context so requires.

4. The brief facts leading to the filing of the present Appeal Suits in common are as follows:-

(a) Each of the claimant(s) either individually or jointly owned/possessed varying extents of land at various survey numbers located in Orgadam village, Sriperumbudur Taluk, Kanchipuram District.

(b) A total extent of 113.35.5 Hectares of land in the said village were proposed to be acquired by the State under the LAND ACQUISITION ACT , 1894 (for short, “the LA Act, 1894”) at the instance of State Industries Promotion Corporation of Tamil Nadu (SIPCOT) for setting up of Industrial Development Complex by the SIPCOT and for setting up of Special Economic Zones by TACID.

(c) For the purpose of acquisition of lands, notifications under Section 4(1) of the LA Act, 1894 were issued in the Tamil Nadu Gazette in the instant cases between 01.06.1998 and 28.04.2000. The acquisition was made by invoking the emergency clause under Section 17 of the LA Act, 1894, and hence, after dispensing with the enquiry under Section 5-A of the LA Act, 1894 a declaration under Section 6 was issued on various dates between 18.06.1998 and 11.02.2000. The details of Notifications issued under Section 4(1) and Declarations issued under Section 6 of the LA Act, 1894 in respect of the 113.35.5 Hectares of land situated at Oragadam village and acquired form the claimants covered under different awards are as follows:

Award No.1/2000 dated 15.03.20004(1) Notification dated 08.06.1998 Sec.6 declaration dated 09.07.1998
Award No.2/2000 dated 21.01.20004(1) Notification dated 01.06.1998 Sec.6 declaration dated 18.06.1998
Award No.4/2000 dated 28.02.20004(1) Notification dated 14.07.1998 Sec.6 declaration dated 21.07.1998
Award No.5/2000 dated 30.06.20004(1) Notification dated 05.06.1999 Sec.6 declaration dated 09.07.1998
Award No.6/2000 dated 20.04.20004(1) Notification dated 19.03.1999 Sec.6 declaration dated 02.06.1999
Award No.7/2000 dated 22.05.2004(1) Notification dated 27.01.1999 Sec.6 declaration dated 24.12.1998
Award No.8/2000 dated 31.08.20004(1) Notification dated 13.01.1999 Sec.6 declaration dated 08.02.1999
Award No.9/2000 dated 06.09.20004(1) Notification dated 24.08.1998 Sec.6 declaration dated 28.12.1998
Award No.1/2001 dated 30.04.20014(1) Notification dated 05.02.1999 Sec.6 declaration dated 05.05.1999
Award No.2/2001 dated 02.05.20014

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