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M/S. Mohan Breweries And Distilleries ... vs The Government Of Tamil Nadu
2025 Latest Caselaw 4183 Mad

Citation : 2025 Latest Caselaw 4183 Mad
Judgement Date : 20 March, 2025

Madras High Court

M/S. Mohan Breweries And Distilleries ... vs The Government Of Tamil Nadu on 20 March, 2025

Author: S. M. Subramaniam
Bench: S. M. Subramaniam
                                                                                       WA No. 1231 of 2024



                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED: 20-03-2025

                                                         CORAM

                           THE HONOURABLE MR JUSTICE S. M. SUBRAMANIAM
                                              AND
                             THE HONOURABLE MR.JUSTICE K.RAJASEKAR

                                               WA No. 1231 of 2024
                                                      and
                                               CMP.No.9053 of 2024

                1. M/s. Mohan Breweries and Distilleries Ltd.,
                Rep by its Executive Chairman,
                Mr. M. Nandagopal, 3 rd Floor,
                No.605 and 606, Sundaram Avenue, Chennai 6.

                                                                                       Appellant(s)

                                                              Vs

                1. The Government of Tamil Nadu
                Rep by the Secretary to Government
                Housing Department, Fort St.George,
                Chennai 9.

                2.The Tamil Nadu Housing Board
                Rep by its Chairman, No.493, Anna
                Salai, Nandanam, Chennai 35.

                                                                                       Respondent(s)




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                                                                                          WA No. 1231 of 2024



                PRAYER
                To allow the Writ Appeal by setting aside the Order dated 06.11.2023 passed in
                WP No.748 of 2017.



                                  For Appellant(s):       Mr.Kuberan For Rank Associates


                                  For Respondent(s):      Mr.R.Ramanlaal Aag Vii Asst By
                                                          Mr.T.Arunkumar Agp For R1

                                                    JUDGMENT

(Judgment of the Court was made by S.M.Subramaniam J.)

Under assail is the order dated 06.11.2023 passed in W.P.No.748 of 2017.

2. The Writ Petition has been instituted by the appellant before this

Court to declare that the land acquisition proceedings initiated under the Land

Acquisition Act, 1894 in respect of the land belonging to the petitioner

comprised in,

Survey No. Extent Sale Deed No 33 0.66 1612 of 1988 33 0.66 1614 of 1988 34 1.62 5744 of 2002 44/1(44/1A) 3.77 5744 of 2002 45/3 1.15 5744 of 2002 (45/3C1)

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Survey No. Extent Sale Deed No 31 0.30 2502 of 1993 94/1A 0.70 492 of 1987 94/2A 0.44 492 of 1987 99/3 0.85 492 of 1987 104 4.24 492 of 1987 213/1 0.75 2464 of 1984 213/2 2.10 2464 of 1984 217/2 0.28 621 of 1984

All in Valasarawakkam Village, Chennai, as lapsed, in view of Section

24(2) of Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation and Resettlement Act 2013 (Act 30/2013).

3. The uncontroverted facts are that land acquisition proceedings

under the Old Act commenced in respect of the subject property in the year

1975. The Government in G.O.Rt.No.136, Housing Department, dated

14.05.1975, approved the Draft Notification under Section 4(1) of the Land

Acquisition Act for an extent of 248.18 Acres of land in Valasaravakkam

Village, Maduravoyal Taluk, Thiruvallur District, for the formation of New

Ramapuram Neighbourhood Scheme by Tamil Nadu Housing Board. It was also

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published on 11.06.1975. The Draft Declaration and Direction under Sections 6

and 7 of the Land Acquisition Act was approved by the Government in

G.O.Ms.No.963, Housing Department, dated 07.06.1978 and published in Tamil

Nadu Government Gazette, dated 09.06.1978. After observing all the formalities

under the Land Acquisition Act, Award Nos.4/86 dated 05.09.1986 and 12/86

dated 29.09.1986 were passed. The subject lands comprised in S.Nos.213/1,

213/2 and 217/2 are covered in the aforesaid awards passed by the Land

Acquisition Officer. The possession of the said lands were taken by competent

authorities and handed over to the Tamil Nadu Housing Board on 13.11.1986

and 15.12.1986 and since then the subject land vests with Tamil Nadu Housing

Board.

4. Particulars such as ownership, extent, compensation amount etc., in

respect of the subject land are categorically stated in the counter affidavit filed

by the Tamil Nadu Housing Board in W.P.No.748 of 2017 as under,

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SI.No Survey No Total Extent in Extent cover in Award No & Name of Award Amount Possessio Patta Name & Patta Award this Present date Owner as per & Nature of n taken No. Court case Award Deposit over date

1 31/2 2.19 0.30 5/86 Eastern Clay Rs.581.05 24.04.2007 Mohan Brewaries & 16.9.86 Works and Civil Court Distilleries Ltd.,

persons & 3699) 2 33 1.32 1.32 5/86 Rs.350.20 24.04.2007 Dhanakoti 16.9.86 Civil Court Ammal, Rathna deposit Naicker & Narayana Naicker

3 34 1.62 1.62 6/86 M/s.Sudarsan Rs.93,387.10 24.04.2007 Mohan Brewaries & 19.9.86 Trading Civil Court Distilleries Ltd.,

& 3699)

4 44/1A 3.86 3.77 8/86 Rs.8,36,189.85 24.04.2007 Mohan Brewaries & 19.9.86 Civil Court Distilleries Ltd.,

& 3699)

5 45/3C1 1.15 1.15 7/86 Rs.48,837.10 24.04.2007 M/s.Sudarsan 17.9.86 Civil Court Trading Company Deposit (Patta No.119)

6 94/1A 0.70 0.70 9/86 V.Samasiva Rs.50,036.00 Not taken TNHB (Patta 10.9.86 Rediyar Civil Court over No.1462) Deposit 14.11.1986 7 104 4.24 4.24

8 99/3 0.85 0.85 19/86 V.Samasiva Rs.225.60 23.1.1987 23.9.86 Rediyar Civil Court Deposit

9 94/2A 0.44 0.44 8/86 Rs.116.35 14.11.1986 20.8.86 Civil Court Deposit

10 213/1 0.75 0.75 4/86 Venkata Rathina Rs.755.15 13.11.1986 5.9.86 Naidu, Civil Court Subbammal; Deposit Palavalli 11 213/2 2.10 2.10 Rajeswari, M/s.Mohan Brewaries

12 217/2 0.82 0.28 12/86 Govindaraja Rs.217.50 15.12.1986 S.Govindaraja Pillai 22.9.86 Naicker Revenue & Others (Patta D.Divakar, Deposit No.1104) Muthulakshmi Ammal & M/s.Mohan Breweries

5. Batch of Writ Petitions filed challenging the land acquisition by the

erstwhile owner was allowed by the learned Single Judge of this Court on

08.10.1991. The Writ Appeal in W.A.No.707 of 1995 filed by the Requisitioning

authority, Tamil Nadu Housing Board against the order of the learned Single

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Judge was allowed by the Division Bench of this Court on 26.07.2001 and thus,

the land acquisition proceedings in respect of land in Valasaravakkam Village

attained finality.

6. After a lapse of about 42 years from the date of land acquisition

proceedings, the appellant filed in WP.No.748 of 2017, on the ground that the

acquisition proceedings lapsed in view of Section 24(2) of the New Land

Acquisition of the year 2013. The Writ Court dismissed the Writ Petition,

recording the facts relating to the acquisition proceedings and formed an

opinion that the claim of the appellant is stale. Thus, the present Writ Appeal

came to be instituted.

7. Learned counsel for the appellant would mainly contend that the

possession still remains with the appellant. Admittedly, the appellant is the

subsequent purchaser purchased the land after 4(1) notification issued by the

Government under the Land Acquisition Act. The Housing Board project is

dropped, and the possession is presently with the petitioner. The Distilleries

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Company is running in the name of M/s.Mohan Breweries and Distilleries

Limited. As per the Government Order issued in G.O.Ms.No.180, Housing

Board, dated 04.10.2024, the petitioners are also eligible to avail the benefit for

re-conveyance of the acquired land. Therefore, the appellant is entitled for the

relief.

8. Learned Additional Advocate General appearing on behalf of the

State would oppose by stating that the claim of the appellant is stale. The 4(1)

notification under the Old Act was issued in 1975, and the award was passed in

1986. The possession was taken and handed over to the Tamil Nadu Housing

Board by the Land Acquisition Officer, and the compensation amount was

deposited in the Civil Court deposit. Therefore, the twin conditions

contemplated under Section 24(2) of the New Land Acquisition Act had been

complied and thus, the learned Single Judge has rightly dismissed the Writ

Petition.

9. Section 44(A) of the Land Acquisition Act, 1894 provides

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restriction on transfer etc and reads as under,

“No Company for which any land is acquired under this Part shall be entitled to transfer the said land or any part thereof by sale, mortgage, gift, lease or otherwise except with the previous sanction of the appropriate Government.”

10. In view of the express bar imposed under Section 16(A) of the

Land Acquisition Act, the subsequent purchase of the property under land

acquisition is null and void. Consequently, the purchase of the subject property

by the petitioner is rendered invalid.

11. In respect of Section 24(2) of the New Land Acquisition Act, in the

present case, even as per the counter filed by the State in the Writ Proceeding,

the Civil Court deposit was made, and particulars are clearly given. Though

possession was taken and handed over to the Tamil Nadu Housing Board, the

petitioner's claim of being in possession cannot be construed as legal

possession, but rather amounts to an encroachment of the property belonging to

the Tamil Nadu Housing Board, which is the requisitioning body.

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12. As per the ratio laid down by the Constitution Bench of the Hon'ble

Supreme Court of India in the case of Indore Development Authority Vs.

Manoharlal And Others1, settled cases cannot be reopened after the lapse of

many years. It is sufficient if any one of the conditions contemplated under

Section 24(2) of the New Land Acquisition Act has been applied with.

13. Regarding the compensation, it was deposited in the Civil Court

deposit. As for the possession of a subsequent purchaser, it amounts to an

encroachment of public property. Therefore, a subsequent purchaser, whose

purchase is expressly barred under Section 16(A) of the Old Land Acquisition

Act, cannot claim to the benefit of Section 24(2) of the New Land Acquisition

Act.

14. Regarding the claim of the petitioner, who is a subsequent

purchaser and purchase of the property barred under Section 16(A) of the Old

Act, the Hon'ble Supreme Court of India in the case of Land and Building

1 2020 (8) SCC 129

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Department through Secretary and Another Vs Attro Devi and Others2 held as

follows,

“12......The vesting of land with the State is with possession. Any person retaining the possession thereafter has to be treated trespasser. When large chunk of land is acquired, the State is not supposed to put some person or police force to retain the possession and start cultivating on the land till it is utilized. The Government is also not supposed to start residing or physically occupying the same once process of the acquisition is complete. If after the process of acquisition is complete and land vest in the State free from all encumbrances with possession, any person retaining the land or any re-entry made by any person is nothing else but trespass on the State land....”

15. Therefore, the case of the petitioner is not falling within the ambit

of the conditions stipulated under Section 24(2) of the New Land Acquisition

Act. The occupation of the petitioner is illegal, and the respondents are bound to

initiate all appropriate actions to remove the encroachers and utilize the land for

the purpose for which it was acquired or for any other public purpose, subject to

obtaining necessary orders from the Government.

2 2023 SCC ONLINE 396

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16. Consequently, the Writ Appeal stands dismissed. No costs.

Consequently, the connected Miscellaneous Petition is closed. Post the matter

on 21.04.2025 under the caption 'for reporting compliance'.

(S.M.SUBRAMANIAM J.)(K.RAJASEKAR J.) 20-03-2025

gd Index:Yes/No Speaking/Non-speaking order Internet:Yes Neutral Citation:Yes/No

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To

1.The Government of Tamil Nadu Rep by the Secretary to Government Housing Department, Fort St.George, Chennai 9.

2.The Tamil Nadu Housing Board Rep by its Chairman, No.493, Anna Salai, Nandanam, Chennai 35.

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S.M.SUBRAMANIAM J. AND K.RAJASEKAR J.

gd

20-03-2025

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