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2025 Supreme(Mad) 5112

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
V. LAKSHMINARAYANAN, J.
The Tamil Nadu Housing Board - Appellant
Vs.
The District Legal Services Authority - Respondent
Writ Petition (MD) No.5540 of 2022 & WMP(MD).No.4482 of 2022
Decided On : 14-07-2025

Advocates:
Advocate Appeared:
For the Appellant : Mr.R.Shivakumar
For the Respondent: Mr.S.Shaji Bino, Special Government Pleader, Mr.S.Balasubramaniam

A participant in Lok Adalat proceedings is estopped from challenging the award on procedural or technical grounds post-execution, particularly when no fraud is substantiated.

Headnote:(A) Legal Services Authorities Act, 1987 - Sections 1 and 2 - Land Acquisition Act, 1894 - Sections 28A and 31 - Challenge to Lok Adalat award on grounds of fraud and lack of authority in signing - The Housing Board participated in Lok Adalat proceedings and raised challenges regarding the validity of the award post-execution notice which was deemed unreasonable. (Paras 12, 27, 31)

(B) Laches - A writ petition filed after a considerable delay (five years) from the date of the Lok Adalat award was dismissed on the grounds of laches, emphasizing the importance of timely legal action. (Para 25)

(C) Estoppel - The principle of estoppel applies as the Executive Engineer participated in the proceedings and no objections were raised until the execution petition was filed. The individual's participation precludes later challenges based on the absence of signatures from other parties. (Paras 32, 36)

(D) Fraud - Allegations of fraud were not substantiated to the required standard, and the challenge to the Lok Adalat award lacks merit without proper evidence. (Paras 30, 60)

Facts of the case:
The Tamil Nadu Housing Board sought to quash the Lok Adalat award for the enhancement of land compensation originally set at Rs.295.45 per cent, leading to a settlement of Rs.1,11,20,307.77 based on a calculation memo contested post-factum.

Findings of Court:
The writ petition was dismissed as the Board was deemed to have consented to the terms set forth in the Lok Adalat award and failed to establish a case for setting it aside.

Issues: The Court examined the questions of laches, validity of the Lok Adalat award, and the applicability of estoppel in the context of fraud allegations.

Ratio Decidendi: The court held that individuals who participated in Lok Adalat proceedings cannot later challenge its findings on technical grounds when they were fully involved. Delay in filing the writ petition was unreasonable.

Result: Writ petition dismissed with costs of Rs.1,00,000 to be paid by the Tamil Nadu Housing Board to the third respondent.

Table of Content
1. introduction to land acquisition facts. (Para 1 , 2 , 3 , 4 , 5)
2. settlement terms of lok adalat. (Para 6 , 8 , 9)
3. issues concerning enforcement of award. (Para 10 , 11 , 12)
4. court's consideration of records and affidavits. (Para 13 , 14 , 19)
5. arguments regarding authority and consent. (Para 15 , 22 , 24)
6. discussion on laches in legal proceedings. (Para 25 , 26 , 27)
7. impact of estoppel in agreeing parties. (Para 28 , 30 , 34 , 41)
8. legal provisions regarding compensation. (Para 43 , 44 , 45 , 46)
9. executive authority in representation. (Para 50 , 51 , 52)
10. judicial precedents relevant to the case. (Para 56 , 57 , 60)
11. final judgment and costs awarded. (Para 61)

ORDER :

V. LAKSHMINARAYANAN, J.

The petitioner is the Tamil Nadu Housing Board. It seeks for a Writ of Certiorari to call for the records on the file of the first respondent in L.A.O.P.No.83 of 2008 dated 08.04.2017, and to quash the same as illegal.

Facts leading to the writ petition

2. The Housing Board had decided to develop a Housing Scheme for Madurai. It did so under the name and style of 'Ellis Nagar Housing Scheme'. For the purpose of development of this scheme, lands were acquired in Madakullam Village, Madurai South Taluk, Madurai. The third respondent had lands in the said Village. It was the owner of the following properties:

(i) Survey Nos.13/2, 14/2, both to an extent of 0.88 Acre;

(ii) Survey No.15/1 to an extent of 1.18 Acre; and

(iii) Survey No.15/7 to an extent of 1.10 Acre.

3. Notification under Section 4(1) of the erstwhile LAND ACQUISITION ACT , 1894 was issued on 04.04.1979. The acquisition proceedings were completed. An award was passed in Award No.5/82-83 on 21.05.1982. In terms of the award, the compensation fixed was at Rs.295.45/- per cent. The compensation was deposited with the III Additional Subordinate Judge at Madurai. It is stated that the amount paid as compensation appropriated towards Income Tax dues. The claimant was not satisfied with the amounts fixed under the award. Hence, he requested the first respondent to make a reference under Section 18. As no petition was available on the file, reference was not made.

4. Insofar as the acquisition of land in Survey No.12/2 to an extent of 1.16 Acre of the same village is concerned, a reference had been made in L.A.O.P.No.23 of 1988 to the file of the I Additional Sub Court at Madurai. By way of a judgment and decree dated 26.04.1993, the compensation was fixed for the land at Rs.4166/- per cent. Consequently, the third respondent invoked Section 28A of the LAND ACQUISITION ACT . He pleaded that Survey No.12/2 is covered by the same notification and same award covering his lands. Along with the printed copy of the judgment in L.A.O.P.No.23 of 1988, he sought for enhancement.

5. The Special Tahsildar (LA), Ellis Nagar Scheme, rejected the petition seeking enhancement on 11.11.1998. He opined that the lands in L.A.O.P.No.23 of 1988 are not similar in all respects with the property, which belonged to the third respondent. The third respondent filed a petition under Section 28A(3) of the LAND ACQUISITION ACT before the Special Tahsildar seeking for reference to the Court. The Special Tahsildar referred the matter to the I Additional Subordinate Judge at Madurai in his proceedings SSR.No.8/82 dated 07.05.1999. This reference was taken on file as L.A.O.P.No.83 of 2008 before the III Additional Subordinate Judge at Madurai.

6. In the said petition, he arrayed the acquisitioning authority, the Special Tahsildar (LA), Ellis Nagar Scheme and the requisitioning body, Housing Board – the writ petitioner herein - as respondents. The prayer in the proceedings was to pass an award and fix the compensation at the rate of Rs.4166/- per cent with 30% solatium, 12% additional amount and interest at the rate of 15% per annum from the date of notification till the payment of compensation. The said proceedings were taken on file and notice was issued to the respondents.

7. The matter was

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