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G.S.Shah vs The Special Tahsildar
2021 Latest Caselaw 17678 Mad

Citation : 2021 Latest Caselaw 17678 Mad
Judgement Date : 31 August, 2021

Madras High Court
G.S.Shah vs The Special Tahsildar on 31 August, 2021
                                                                            W.P.No.24297 of 2017

                                   IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED: 31.08.2021

                                                    CORAM:

                           THE HONOURABLE MR.JUSTICE G.K.ILANTHIRAIYAN

                                               W.P.No.24297 of 2017

                 G.S.Shah                                                   ... Petitioner

                                                       Vs.


                 1. The Special Tahsildar,
                    Land Acquisition Unit,
                    SIPCOT UNIT (4),
                    Irungattukottai,
                    Sriperumbudur Taluk,
                    Kanchipuram District.

                 2. The Chairman & Managing Director,
                    State Industries Promotion Corporation of
                      Tamil Nadu Ltd (SIPCOT)
                    No.19-A, Rukmani Lakshmipathi Road,
                    Egmore, Chennai – 600 008.

                 3. M/s.Flextronics Technologies (India) Private Ltd.,
                    Rep.by its Managing Director,
                    Plot No.3, Phase II, Sipcot Industrial Park,
                    Sandavellur Village, Sriperumbudur,
                    Kanchipuram District – 602 105.                       ... Respondents

                 PRAYER: Writ Petition filed under Article 226 of the Constitution of India, to
                 issue a writ of declaration, to declare that the land acquisition proceedings


                 1/11
https://www.mhc.tn.gov.in/judis/
                                                                              W.P.No.24297 of 2017

                 initiated under the Land Acquisition Act, 1894, in respect of the land more
                 fully described in the schedule to the petition, belonging to the petitioner,
                 situate at Santhavelur Villatge, Block XI of Sriperumbudur Taluk,
                 Kanchipuram District, as lapsed in view of the Section 24(2) of the Right to
                 Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
                 Resettlement Act, 2013 (Act 30 of 2013).


                                      For Petitioner    : Mr.R.Prabhakaran

                                      For Respondents : Mr.Richardson Wilson
                                                        Government Advocate (for R-1)
                                                      : Mrs.Sudarshana Sunder (for R-2)
                                                      : Mr.Srinath Sridevan (for R-3)


                                                       ORDER

This petition has been filed to declare that the land acquisition

proceedings initiated under the Land Acquisition Act, 1894, in respect of the

land, more fully described in the schedule to the petition, belonging to the

petitioner, situate at Santhavelur Village, Block XI of Sriperumbudur Taluk,

Kanchipuram District, as lapsed in view of Section 24(2) of the Right to Fair

Compensation and Transparency in Land Acquisition, Rehabilitation and

Resettlement Act, 2013 (hereinafter referred to as 'the New Act' for short).

https://www.mhc.tn.gov.in/judis/ W.P.No.24297 of 2017

2. The writ petition has been filed on the following grounds that

acquired land has not been allotted to the beneficiary and not utilized till the

date and the land is kept idle and as such, the petitioner is entitled to seek

reversion by virtue of Section 24(2) the New Act. The purpose of very

acquisition has not been effected and as such, the entire acquisition

proceedings deemed to have been lapsed. The first and second

respondents/SIPCOT did not pay any compensation till date as per the

enhancement order passed in the LAOP for part of the land and for another

part of the land, no amount had been paid till date. No physical possession of

the land has also been taken.

3. Heard Mr.R.Prabhakaran, learned counsel for the petitioner,

Mr.Richardson Wilson, learned Government Advocate appearing for the first

respondent, Mrs.Sudarshana Sunder, learned counsel appearing for the second

respondent and Mr.Srinath Sridevan, learned counsel appearing for the third

respondent/company.

https://www.mhc.tn.gov.in/judis/ W.P.No.24297 of 2017

4. The subject property was acquired for setting up an industrial unit.

After acquisition, the award has also been passed and the same was referred in

LAOP.Nos.305 and 306 of 2007 along with other land owners before the Sub

Court, Kanchipuram for enhancement of compensation. The Court below, by

its judgment and decree dated 21.05.2008, in the said LAOP is enhanced the

compensation amount from Rs.350/- per cent to Rs.5,300/- per cent with 30%

solatium, along with 9% interest. Accordingly, the compensation amount has

also been deposited in the Court. Insofar as the possession of the subject

property is concerned, on 15.09.1999 itself, the possession of the property was

taken over and handed over to the third respondent. It is also evident from the

records produced by the respondents that after passing award, the possession

of the property had also been taken over and handed over to the third

respondent/company, which is evident from the possession certificate dated

15.09.1999. In turn, by the lease dated 09.03.2007, the second

respondent/SIPCOT had also leased out the property in favour of the third

respondent. Therefore, the petitioner failed to prove the grounds as

contemplated under Section 24(2) of the New Act in this writ petition.

5. That apart, the grounds raised by the petitioner in this Writ Petition

https://www.mhc.tn.gov.in/judis/ W.P.No.24297 of 2017

have already been settled by the Hon'ble Supreme Court of India in the

judgment reported in (2020) 8 SCC 129 in the case of Indore Development

Authority Vs. Manoharlal and ors etc., which held as follows :-

“366. In view of the aforesaid discussion, we answer the questions as under:

1. Under the provisions of Section 24(1)(a) in case the award is not made as on 1.1.2014 the date of commencement of Act of 2013, there is no lapse of proceedings. Compensation has to be determined under the provisions of Act of 2013.

2. In case the award has been passed within the window period of five years excluding the period covered by an interim order of the court, then proceedings shall continue as provided under Section 24(1)(b) of the Act of 2013 under the Act of 1894 as if it has not been repealed.

3. The word or used in Section 24(2) between possession and compensation has to be read as nor or as and. The deemed lapse of land acquisition proceedings under Section 24(2) of the Act of 2013 takes place where due to inaction of authorities for five years or more prior to commencement of the said Act, the possession of land has not been taken nor compensation has been paid. In other words, in case

https://www.mhc.tn.gov.in/judis/ W.P.No.24297 of 2017

possession has been taken, compensation has not been paid then there is no lapse. Similarly, if compensation has been paid, possession has not been taken then there is no lapse.

4. The expression 'paid' in the main part of Section 24(2) of the Act of 2013 does not include a deposit of compensation in court. The consequence of non-deposit is provided in proviso to Section 24(2) in case it has not been deposited with respect to majority of land holdings then all beneficiaries (landowners) as on the date of notification for land acquisition under Section 4 of the Act of 1894 shall be entitled to compensation in accordance with the provisions of the Act of 2013. In case the obligation under Section 31 of the Land Acquisition Act of 1894 has not been fulfilled, interest under Section 34 of the said Act can be granted. Non-deposit of compensation (in court) does not result in the lapse of land acquisition proceedings. In case of non-deposit with respect to the majority of holdings for five years or more, compensation under the Act of 2013 has to be paid to the "landowners" as on the date of notification for land acquisition under Section 4 of the Act of 1894.

5. In case a person has been tendered the compensation as provided under Section 31(1) of the

https://www.mhc.tn.gov.in/judis/ W.P.No.24297 of 2017

Act of 1894, it is not open to him to claim that acquisition has lapsed under Section 24(2) due to non- payment or non-deposit of compensation in court. The obligation to pay is complete by tendering the amount under Section 31(1). Land owners who had refused to accept compensation or who sought reference for higher compensation, cannot claim that the acquisition proceedings had lapsed under Section 24(2) of the Act of 2013.

6. The proviso to Section 24(2) of the Act of 2013 is to be treated as part of Section 24(2) not part of Section 24(1)(b).

7. The mode of taking possession under the Act of 1894 and as contemplated under Section 24(2) is by drawing of inquest report/ memorandum. Once award has been passed on taking possession under Section 16 of the Act of 1894, the land vests in State there is no divesting provided under Section 24(2) of the Act of 2013, as once possession has been taken there is no lapse under Section 24(2).

8. The provisions of Section 24(2) providing for a deemed lapse of proceedings are applicable in case authorities have failed due to their inaction to take possession and pay compensation for five years or more before the Act of 2013 came into force, in a proceeding

https://www.mhc.tn.gov.in/judis/ W.P.No.24297 of 2017

for land acquisition pending with concerned authority as on 1.1.2014. The period of subsistence of interim orders passed by court has to be excluded in the computation of five years.

9. Section 24(2) of the Act of 2013 does not give rise to new cause of action to question the legality of concluded proceedings of land acquisition. Section 24 applies to a proceeding pending on the date of enforcement of the Act of 2013, i.e., 1.1.2014. It does not revive stale and time-barred claims and does not reopen concluded proceedings nor allow landowners to question the legality of mode of taking possession to reopen proceedings or mode of deposit of compensation in the treasury instead of court to invalidate acquisition.”

6. The Hon'ble Supreme Court of India settled all proposition of law in

the above judgment including the grounds raised by the petitioner. That apart,

the acquisition proceedings have been completed and the subject land was also

taken over by the Government on 15.09.1999 itself. The petitioner also

received part of the compensation from the Land Acquisition Officer.

Therefore, the petitioner failed to satisfy the twin requirements under Section

24 (2) of the New Act, i.e., the physical possession of the land was not taken

https://www.mhc.tn.gov.in/judis/ W.P.No.24297 of 2017

and the compensation has not been paid/tendered/deposited in accordance with

law. In view of the above dictum laid down by the Hon'ble Supreme Court of

India, the issues raised by the petitioner was settled and therefore, the

acquisition proceedings had not lapsed by operation of law under Section 24

(2) of the new Act i.e., Right to Fair Compensation and Transparency in Land

Acquisition, Rehabilitation and Resettlement Act, 2013. In view of the settled

position of law, the writ petition is devoid of merits and liable to be dismissed.

7. In the result, the Writ Petition stands dismissed. No costs.

31.08.2021 Internet : Yes / No Index : Yes / No Speaking / Non Speaking order kv

To

1. The Special Tahsildar, Land Acquisition Unit, SIPCOT UNIT (4), Irungattukottai, Sriperumbudur Taluk, Kanchipuram District.

2. The Chairman & Managing Director, State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT),

https://www.mhc.tn.gov.in/judis/ W.P.No.24297 of 2017

No.19-A, Rukmani Lakshmipathi Road, Egmore, Chennai – 600 008.

3. The Managing Director, M/s.Flextronics Technologies (India) Private Ltd., Plot No.3, Phase II, Sipcot Industrial Park, Sandavellur Village, Sriperumbudur, Kanchipuram District – 602 105.

G.K.ILANTHIRAIYAN, J.

kv

W.P.No.24297 of 2017

https://www.mhc.tn.gov.in/judis/ W.P.No.24297 of 2017

31.08.2021

https://www.mhc.tn.gov.in/judis/

 
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