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2026 Supreme(Online)(Mad) 48542

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Hemant Chandangoudar, J
Rajammal – Appellant
Versus
Principal Secretary, Housing and Urban Development (UD4(2)) Department – Respondent
W.P.(MD)No.15238 of 2026



Advocates:
For the Appellants/Petitioners: S. Kadarkarai
For the Respondents: K.R. Shivashankari

Under Section 38 of the Tamil Nadu Town and Country Planning Act, 1971, land reserved for public purposes under a planning scheme automatically stands released from such reservation if the competent authority fails to initiate acquisition proceedings or acquire the land within the statutory time limit.

Headnote:The case involves a challenge to the continued reservation of private land under a Detailed Development Plan over two decades after its notification. The primary legal issue concerns the applicability of Section 38 of the Tamil Nadu Town and Country Planning Act, 1971, regarding the lapse of land reservation due to non-acquisition. The Court observed that since no acquisition proceedings were initiated within the statutory timeframe, the reservation is deemed to have lapsed by operation of law. The main issue is whether a land reservation persists indefinitely if the designated public authority fails to acquire the property within the statutory period stipulated in the governing Act. The Court held that Section 38 serves as a legislative safeguard preventing indefinite encumbrances on private property, and failure to act within the prescribed timeline results in the automatic release of the land from such designation. The writ petition is allowed, directing the authorities to reflect the release of the land in all relevant administrative and revenue records, allowing the owners to exercise their full property rights.

Table of Content
1. factual background regarding the long-standing reservation of land without acquisition action. (Para 2 , 3)
2. interpretation of statutory provisions regarding the lapsing of land reservation due to institutional inaction. (Para 4 , 5)
3. application of law establishing that lack of acquisition within time limits triggers automatic release. (Para 6 , 7)
4. direction to update official records to reflect the release of property and grant of relief. (Para 8 , 9 , 10)

PRAYER: Writ Petition filed under Article 226 of the Constitution of India for issuance of Writ of Declaration to declare that the lands belonging to the petitioner, comprised in S.Nos. 6/6, 6/5 and 6/3 (old Survey Number 278/6, 278/5 and 278/3 respectively), included in the Aruppukottai Eastern Extension Scheme (Part.3), which was reserved for proposal of laying of Road and Market, notified in the G.O. Ms. No.232, Housing and Urban Development, dated 25.07.2007, by the 1st Respondent herein, under Section 28 of Tamil Nadu Town and Country Planning Act, 1971, have lapsed and release from reservation/designation/allotment under Sections 37 and 38 of Tamil Nadu Town and Country Planning Act, 1971 and considering the the petitioners’ various representations including the latest one dated 30.03.2026.

O R D E R

2.Heard the learned counsel appearing for the petitioners and the learned counsel appearing for the respondents. The materials placed on record have also been perused.

3.The undisputed facts reveal that the subject property of the petitioners was reserved for the formation of a road and market under the Detailed Development Plan notified in the year 2007. The petitioner contends that, despite the lapse of more than two decades from the date of such notification, the respondents have neither acquired the subject land nor taken any effective steps for implementation of the proposed road scheme.

4.In this context, it would be apposite to refer to Section 38 of the Tamil Nadu Town and Country Planning Act, 1971, which reads as follows:

“38. Release of land.—If within three years from the date of publication of the notice in the Tamil Nadu Government Gazette under Section 26 or Section 27

(a) no declaration as provided in sub-section (2) of Section 37 is published in respect of any land reserved, allotted or designated for any purpose specified in a regional plan, master plan, detailed development plan or new town development plan covered by such notice; or

(b) such land is not acquired by agreement, such land shall be deemed to be released from such reservation, allotment or designation.”

5.A plain reading of the above provision makes it clear that where land reserved, allotted, or designated for a public purpose under a planning scheme is neither acquired nor subjected to acquisition proceedings within the time stipulated under the statute, the reservation automatically lapses by operation of law. The provision embodies a legislative safeguard intended to ensure that private property is not kept under indefinite reservation without acquisition.

6.In the present case, it is not disputed by the respondents that the petitioners’ lands were reserved for formation of a road and market under the Detailed Development Plan. It is equally undisputed that no acquisition proceedings have been initiated and no steps have been taken to acquire the subject property within the period contemplated under Section 38 of the Act. Nor is there any material placed before this Court to show that the land has been acquired by agreement or otherwise utilised for the purpose for which it was reserved.

7.In view of the admitted factual position and the statutory mandate contained in Section 38 of the Tamil Nadu Town and Country Planning Act, 1971, this Court has no hesitation in holding that the reservation of the petitioners’ properties for the proposed road and market under the Aruppukottai Eastern Extension Scheme (Part.3) has lapsed by operation of law and the land stands

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