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2024 Supreme(Mad) 2763

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.Sounthar, J.
R.Sreedher - Petitioner
Versus
Special District Revenue Officer, Land Acquisition and Management, Highways and ors. – Respondent
W.P.No.20972 of 2024
Decided On : 26-09-2024

Advocates Appeared:
For the Petitioner: Mr.R.Yashod Vardhan Senior Counsel for M/s.R.Sunil Kumar
For the Respondent:Mr.R.Ramanlal Additional Advocate General Assisted by Mr.A.Selvendran Special Government

The court affirmed that compensation for land acquisition must be based on legally established values, ensuring equity, and mandated interest payment from the date of possession, adhering to statutory provisions.

Headnote:(A) Tamil Nadu Highways Act, 2001 - Section 15(2) - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 26 and Section 80 - Writ petition filed challenging the acquisition notification and compensation fixing - The petitioner claimed inequity in compensation being lower for recently acquired land compared to adjacent land acquired earlier - Court found that market value was lawfully determined based on guideline value of the year 2022 and confirmed the right of the landowner to interest from date of possession as per Section 80 - Statutory provisions mandate the calculation method adopted for compensation determination. (Paras 2, 10, 12, 17)

(B) Land Acquisition - Justification of Compensation - The court emphasized adherence to statutory valuation criteria for market value estimation contrary to previous acquisitions and reaffirmed the legal basis under Section 26 of Act 30 of 2013. (Paras 4, 8, 14)

Facts of the case:
The petitioner, owner of land acquired for highway widening, contested the compensation set at Rs.4,000/- per sq.ft., citing an adjacent land's compensation of Rs.5,000/- per sq.ft. and the delay in formal notification process leading to a lesser amount due to revised guideline values in 2022.

Findings of Court:
The court directed that statutory interest should be paid from the date of possession, acknowledging the established inequities and emphasizing the legal framework for compensation evaluation.

Issues: The key issues included the appropriateness of compensation rates for lands acquired under different notifications and the basis of interest calculations for compensation.

Ratio Decidendi: The court ruled that compensation must be based on legislative standards, and interest on compensation should be calculated from the date of possession, ensuring that the public authority's earlier possession of the land did not disadvantage the landowner unduly.

Result: The writ petition is disposed of with directions for the payment of interest from the date of possession. The respondents are directed to disburse the amount within 12 weeks from the date of receipt of a copy of this order.

Table of Content
1. challenge to land acquisition compensation (Para 1 , 2)
2. arguments on compensation disparity (Para 3 , 4 , 5)
3. justification for compensation calculation methods (Para 6 , 7 , 8 , 9)
4. regulations on interest calculation on compensation (Para 10 , 11 , 12 , 13)
5. court’s decision on alternative remedy and compensation fairness (Para 14 , 15 , 16)
6. mandate for payment of statutory interest (Para 17)
7. final order on compensation payment timeline (Para 18)

ORDER :

S.Sounthar, J.

The Writ Petition is filed by the land owner affected by Land Acquisition Proceedings, challenging the Notification in Na.Ka.No.250/2022/A1, dated 06.10.2022 issued by the 1st respondent under Section 15(2) of TAMIL NADU HIGHWAYS ACT , 2001 and final award passed in Award No.21/2023 in Sl.Nos.1 and 2 dated 31.10.2023 fixing compensation at the rate of Rs.4,000/- per sq.ft., and calculating interest from 08.10.2022 and consequently, to direct the 1st respondent to pass final award by fixing compensation at the rate of Rs.5,000/- per sq.ft., in respect of subject lands in Survey Nos.432/1C and 452/1A1B with interest from31.12.2014.

2. The petitioner is the owner of the subject lands having purchased the same under a Sale Deed dated 29.12.2006 registered as Document No.6327/2007. For the purpose of widening Maduravoyal- Valasarawakkam Road, the respondents had acquired 50.30 cents of petitioner's land situated in the above mentioned survey numbers. At the time of issuing Section 15(2) notification in the year 2014, only the land of the petitioner with an extent of 33.57 cents was covered by the notification. The remaining extent of petitioner's land namely 16.73 cents (8.65 cents in S.No.432/1C and 8.08 cents in S.No.452/1A1B) was utilised by the respondents even though it was not covered by the Land Acquisition Notification. Later, it was found by the respondents that the above said land, subject matter of the present writ petition, was not covered by the earlier Land Acquisition Notification issued in the year 2014. Therefore, a fresh notification was issued under Section 15(2) of the TAMIL NADU HIGHWAYS ACT , 2001 on 06.10.2022 for acquisition of subject land, which was already taken possession by the respondents as early as 2018. Thereafter, the award was passed fixing compensation to subject land at the rate of Rs.4,000/- per sq.ft. However, in respect of the remaining extent of the petitioner's land, which was acquired even in the year 2014, compensation was fixed at Rs.5,000/- per sq.ft. Aggrieved by the same, the petitioner has come by way of this writ petition.

3. Mr.R.Yashod Vardhan, learned Senior Counsel appearing for the petitioner submitted that petitioner's land covered by the 2014 notification and impugned notification issued on 06.10.2022 are situated adjacent to each other and therefore, fixing Rs.4,000/- per sq.ft., as the compensation amount for the lands acquired in the year 2022 as against the compensation of Rs.5,000/- per sq.ft., fixed for adjacent land acquired in the year 2014 is highly inequitable. The learned Senior Counsel further submitted that the respondents calculated interest only from the date of fresh notification issued under Section 15(2) (i.e., from 06.10.2022). However, respondents have been in possession of the land even from 01.06.2018. In support of his contention, the learned Senior Counsel relied on the following judgments:-

(i) Chitrabai and another vs. Deputy Chief Engineer (Constructions) and another reported in (2021) 18 SCC 528 .

(ii) Noida Industrial Development Authority vs. Ravindra Kumar and others reported in (2022) 13 SCC 468 .

4. Mr.R.Ramanlal, learned Additional Advocate General appearing for the respondents submitted that if the petitioner is not satisfied with the compensation fixed in the award passed by the Competent Authority, he has alternative remedy of seeking reference under Section 64 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and

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