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2025 Supreme(Mad) 4977

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
N. SENTHILKUMAR, J.
Tuticorin Alkali Chemicals and Fertilizers Limited – Petitioner
Versus
The Land Commissioner, Office of the Land Commissioner and Principal Secretary, Commissioner of Land Reforms and Ors. – Respondents
C.R.P.(MD)(PD) Nos.2094 and 2229 of 2015 and M.P.(MD)Nos.2 and 2 of 2015 
Decided On : 31-01-2025

Advocates Appeared:
For the Petitioner: Mrs. A.L. Ganthimathi Senior Counsel for Mr. C. Mahadevan.
For the Respondents:Mr. J. Ravindran Additional Advocate General assisted by Mr. K.S. Selvaganesan, Additional Government Pleader, Mr. G. Rajaraman, Central Govt. Standing Counsel.

Industrial undertakings cannot hold or alienate land beyond statutory ceiling without government permission under Section 37-A; statutory law overrides conflicting government letters and illegal possession must be rectified.

Headnote:(A) Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 - Section 37-A and Section 20 - Industrial land ceiling and exemption - Application by industrial undertakings for permission to hold excess land and Government's power to grant or refuse such permission - No legal provision allows alienation or ratification of land beyond ceiling without Government permission - Estoppel cannot operate against statute. (Paras 5, 7, 11, 16)

Facts of the case:
A fertilizer manufacturing complex was established in Tamil Nadu involving SPIC and Tuticorin Alkali Chemicals and Fertilizers Limited (Revision Petitioners). Lands in two villages, including Government poramboke lands, were held by SPIC and partially transferred to other industrial establishments. The Government issued exemption notices and acquisition proceedings under Section 20 of the Act for lands exceeding the ceiling limit. The main contention arose over the validity of exemption and alienation of these lands without Government sanction.

Findings of Court:
The court held that the Government's refusal to exempt or ratify lands transferred without permission under Section 37-A is lawful and binding. The land holdings beyond the ceiling without proper Government approval are illegal. The revising petitions were dismissed, affirming the orders transferring surplus lands to the Government and directing their retrieval. (Paras 12, 16, 22)

Issues: Whether the alienation or holding of lands beyond the ceiling limit by industrial undertakings without Government permission under Section 37-A is permissible and whether estoppel can be claimed based on Government letters contrary to the Act.

Ratio Decidendi: No exemption or ratification can be granted by the Government under Section 37-A for land alienated without sanction. Statutory provisions prevail over inconsistent Government letters or representations. Illegal possession of Government poramboke lands by industrial entities without lawful title must be rectified by Government retrieval. (Paras 11, 16, 18, 21)

Result: Civil Revision Petitions dismissed and impugned orders confirmed.

Table of Content
1. overview of land acquisition, industrial land use and statutory ceiling under the act (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10)
2. statutory provisions under section 37-a and confirmation of orders refusing exemption (Para 11 , 12)
3. parties' contentions regarding government permission and estoppel arguments (Para 13 , 14 , 15)
4. court’s discussion rejecting exemption claims and emphasizing statutory supremacy (Para 16 , 17 , 18 , 19 , 20 , 21)

ORDER :

N. SENTHILKUMAR, J.

The present Civil Revision Petitions have been filed challenging the impugned order passed in Appeal No.A1/112 of 2007 in Na.Ka.No.D4/3645/2013 on the file of the Agricultural Land Tribunal (District Revenue Officer), Tuticorin confirming the order, dated 20.04.2007 in Order Ref.A3/MR-1/264/S-TUT, on the file of the Assistant Commissioner (Land Reforms), Tirunelveli.

2. The petitioner/Tuticorin Alkali Chemicals and Fertilizers Limited in C.R.P.(MD)No.2094 of 2015 is the fourth respondent in C.R.P.(MD)No.2229 of 2015 and the petitioner/M/s.Southern Petrochemical Industries Corporation Limited (hereinafter referred as “SPIC”) in C.R.P.(MD)No.2229 of 2019 is the 7th respondent in C.R.P.(MD)No.2094 of 2015.

The brief facts of the case is as follows:-

3. The Tamil Nadu Government in the year 1960 to uplift the agricultural activities and in order to promote and develop the agricultural activities including machineries and chemical and fertilizers, which are primary need and requirements for bring up the agricultural in the State of Tamil Nadu and in furtherance of the same, a fertilizer manufacturing complex was the need of the hour, constituted a High Level Committee. Thereafter, the Tamil Nadu Industrial Development Corporation Limited (TIDCO) undertook a joint promoters with SPIC at Tuticorin for supply of adequate fertilizers to the farmers.

4. They identified the manufacturing unit to be established at Tuticorin and it was originally decided for manufacturing Urea and Di-Ammonium Phosphate. The SPIC Limited produces the by-products of chemicals, which can be used for other industries. M/s.Tuticorin Alkali Chemicals and Fertilizers Limited was jointly promoted in the process of manufacturing soda ash and ammonium chloride by TIDCO and SPIC. In the process of establishing manufacturing unit, two villages, namely, Mullaikadu and Korampallam were identified. In the said village, the lands were earmarked for Tamil Nadu Electricity Board, Baba Atomic Research Centre-BARC (an undertaking unit of the Union Government) and for SPIC. On the aforesaid facts, the Revision Petitioner in C.R.P.(MD)No.2094 of 2015 in their grounds in para-6 a. and b., had stated the following details:

5. The lands, as stated above, were identified to an extent of 1232.51 acres in which 811.10 acres of lands were purchased by SPIC by way of private land acquisition/negotiation and the lands measuring to an extent of 421.21 acres of lands, which are Government poramboke land, were entrusted with SPIC. Pending assignment, this extent of 421.21 of lands was maintained by SPIC. The Revision Petitioner had contended that as the lands in both villages, namely Mullaikadu and Korampallam were converted as non-agricultural purpose as contemplated under Section 3 (22) of the Tamil Nadu Land Reforms (Fixation of Ceiling on land) Act, 1961 (hereinafter referred to as “the Act”)

6. The SPIC in the year 1979 had transferred certain extent of lands to the Revision Petitioner in C.R.P.(MD)No.2094 of 2015, BARC, Heavy Water Plant (HWP) and SPIC Electric Power Corporation Limited (SEPC). In paragraph 10 of the grounds filed in support of C.R.P.(MD)No.2094 of 2015, the Revision Petitioner has stated as follows:

“10.However, pending reply from the Government and with the knowledge of the Government, the 7th respondent has transferred portion of their lands to the revision petitioner, HWP and TNEB for their industrial activities as follows:

7. The SPIC had transferred 30.40 acres of lands to Tamil Nadu Alkali

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