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2024 Supreme(Mad) 2605

IN THE HIGH COURT OF JUDICATURE AT MADRAS 
S.Sounthar, J.
T.Venkatesh @ T.Chinnabbiah and ors. - Petitioners
Versus
State of Tamil Nadu Rep by its, Secretary to Government, Housing and Urban Development Department and ors. – Respondents
W.P.No.19766, 21708, 21709, 21710, 25027, 30993, 30994, 30995 and 30996 of 2017, W.P.Nos.1449, 2946, 2947, 11869, 11870, 19927 and 19928 of 2018, W.P.No.11283 of 2019 and W.P.Nos.4898, 4899 and 4900 of 2021 and W.M.P.No.11639 of 2019 
Decided On : 23-09-2024

Advocates:
Advocate Appeared:
For the Petitioner: Mr.R.Bharath Kumar
For the Respondent:Mr.P.Kumeresan, Additional Advocate General, Assisted by M/s.R.L.Karthiga, Mr. S.Ramachandran

Land acquisition proceedings under the 1894 Act lapse when both possession is not taken and compensation remains unpaid, as established in the Indore Development Authority case.

Headnote:(A) Land Acquisition Act, 1894 - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 24(2) - Land acquisition proceedings lapsed due to failure to take possession and non-payment of compensation - Petitioners asserted that possession was not taken and compensation was not paid - Respondents unable to provide evidence for either - Cited Indore Development Authority case for legal criteria applicable to lapsing of acquisition proceedings - Twin conditions of possession and compensation not satisfied, resulting in lapse of acquisition. (Paras 1-20)

(B) Court held that possession certificates presented by respondents lacked independent witness signatures and thus failed to establish lawful possession - Mere deposit of compensation in treasury did not constitute valid tender - Both essential criteria under law unmet, leading to conclusion that proceedings lapsed. (Paras 8, 14, 19)

Facts of the case:
Petitioners owned land targeted for acquisition since 1991, claimed they remained in possession and received no compensation - Previous legal actions had hindered acquisition procedures.

Findings of Court:
Petitioners established that neither possession was taken nor compensation paid, validating claims for lapse of acquisition.

Issues: Whether land acquisition proceedings should be deemed lapsed under Section 24(2) due to non-taking of possession and non-payment of compensation.

Ratio Decidendi: The court emphasized that valid possession requires witness signatures on possession documentation, and that compensation must be tendered directly to landowners for satisfaction of statutory conditions leading to a lapse of acquisition proceedings under the new act.

Result: All Writ Petitions are Allowed. No costs.

Table of Content
1. land acquisition proceedings sought to be declared lapsed. (Para 1 , 2)
2. contention regarding physical possession and compensation. (Para 3 , 4)
3. legal criteria for lapsing of acquisition proceedings. (Para 5 , 6)
4. mode of establishing possession is through witness-backed panchnama. (Para 7 , 8 , 11 , 12)
5. indore case outlines conditions leading to lapse of acquisition proceedings. (Para 9)
6. lack of independent witness in possession claims undermines validity. (Para 10)
7. requirement for tendering compensation to landowners. (Para 13 , 14 , 15)
8. satisfaction of twin conditions leading to lapse confirmation. (Para 18 , 19)
9. final order allowing the writ petitions. (Para 20)

ORDER :

S. Sounthar, J.

1. These Writ Petitions are filed seeking a declaration that Land Acquisition Proceedings initiated under the LAND ACQUISITION ACT , 1894 in respect of the petitioners land situated in Survey Nos.863, 864 and 844 of Chennathur Village, Hosur Taluk, Krishnagiri District, covered by Notification issued under Section 4(1) of the LAND ACQUISITION ACT ,1894, in G.O.Ms.No.890, Housing and Urban Development Department, dated 29.05.1991 and Section 6 Declaration in G.O.Ms.No.691, Housing and Urban Development Department, dated 09.10.1992 deemed to have lapsed in view of Section 24 (2) of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

2. It is the case of the petitioners that they purchased house sites with small extent in a layout called as ‘Ragavendra Nagar’ situated in Survey Nos.863, 864 and 844 situated at Chennathur Village of Hosur Taluk, Krishnagiri District during the year 1988 and 1989 through registered Sale Deeds from previous owners. The 1st respondent issued 4(1) notification for acquisition of lands situated in Survey Nos.863, 864 and 844 for formation of Housing Scheme to be promoted by 2nd respondent. The 4(1) notification was issued on 29.05.1991. Subsequently, Section 6 declaration was made on 09.10.1992. The acquisition proceedings were challenged by the petitioners through an association called as ‘Sri Ragavendra Nagar Residents Welfare Association’ in W.P.No.13943 of 1994 and an interim stay of dispossession was also obtained. The writ petition came to be dismissed on 20.07.2001. Sri Ragavendra Nagar Residents Welfare Association filed W.A.No.2832 of 2004 and the same was disposed on 02.08.2004 with the following observation:-

“4. Mr.Subba Reddy, learned counsel for the appellant submitted that as yet the possession has not been taken over even though twelve years have passed after the notification was issued and that he is still in possession of the property. It is for the appellant to choose to file a proper application under Section 48B of the Land Acquisition Land and if such an application is filed it is for the authority to consider it in accordance with law.”

3. It is asserted by the petitioners that though 6 declaration was made as early as 09.10.1992, physical possession has not been taken over by the respondents and petitioners continued to be in possession of their property. It is also averred in the affidavit filed in support of these writ petitions that though award was passed on 10.10.1994 vide Award No.27/1994, the compensation amount has not been paid to the petitioners. Therefore, it is the contention of the learned counsel appearing for the petitioners that the twin conditions laid down in the case of Indore Development Authority vs. Manoharlal and others ,2020 SCC Online SC 316 had been satisfied and as a consequence, land acquisition proceedings got lapsed under Section 24 (2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

4. Per contra, Mr.P.Kumeresan, learned Additional Advocate General appearing for the respondents 1 and 4 and Mr.S.Ramachandran, learned counsel appearing for the respondents 2 and 3 by taking this Court to the Possession Certificate da

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