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  • Section 48-B of the Land Acquisition Act in view of Section 16-B of the Land Acquisition Act.8.2
  • provisions of Section 48-B of the Land Acquisition Act.2.1
  • Section 4(1) of the Land Acquisition Act, 1894
  • Section 48-B of the Land Acquisition Act.13.
  • Section 16-B of the Land Acquisition Act,
  • Section 48-B of the Land Acquisition Act,
  • Section 4(1) of the Land Acquisition Act
  • sub-section (1) of Section 4
  • LAND ACQUISITION ACT
  • Section 48-B
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Citation Codes
Equivalent Citations
citation codes
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Advocates
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  • Section 48-B of the Land Acquisition Act in view of Section 16-B of the Land Acquisition Act.8.2
  • provisions of Section 48-B of the Land Acquisition Act.2.1
  • Section 4(1) of the Land Acquisition Act, 1894
  • Section 48-B of the Land Acquisition Act.13.
  • Section 16-B of the Land Acquisition Act,
  • Section 48-B of the Land Acquisition Act,
  • Section 4(1) of the Land Acquisition Act
  • sub-section (1) of Section 4
  • LAND ACQUISITION ACT
  • Section 48-B
Smart Summary

Factual and Procedural Background

The petitioner seeks a writ of Certiorarified Mandamus to quash records of land acquisition proceedings connected with lands measuring 4.54 acres in Survey Nos. 588/1 and 588/2 in Thirumullaivoyal Village (said to form part of Ambattur Taluk). The lands were acquired by notification under Section 4(1) of the Land Acquisition Act, 1894 (Fort St. George Gazette dated 17.7.1963) for construction of quarters for workers under the Subsidized Industrial Housing Scheme. An award (No. 19 of 1963 dated 25.3.1968) was passed. Possession was taken over by the Housing Board on 7.2.1979 for construction of labour quarters, but the lands remained unutilized up to 1997 and beyond.

The petitioner pursued various remedies: W.P No. 10481 of 1997 (dismissed on the basis that compensation was deposited in the petitioner's name), W.A No. 904 of 1997 (the Division Bench permitted the petitioner to make a further representation to the Government for reconveyance), a representation to the third respondent dated 29.9.2000 under Section 48-B seeking reconveyance, and further representations (including one on 5.5.2004). The petitioner also filed W.P No. 26850 of 2004, where this Court directed disposal of the representation within three months. Alleging inaction and non-consideration of representations, the petitioner filed the present writ petition.

Legal Issues Presented

  1. Whether non-utilisation of land acquired under Section 4(1) of the Land Acquisition Act for an extended period (42 years as alleged) entitles the original owner to reconveyance of the land under Section 48-B of the Land Acquisition Act.
  2. Whether the Government can or should exercise powers under Section 48-B to reconvey land that has been vested in and possession taken by the Housing Board, particularly where the land has remained unutilized.
  3. What is the legal effect of prior decisions (both High Court and Apex Court) on relief by way of restitution/reconveyance when land has vested in a public authority and compensation has been deposited or paid.
  4. Whether the Court can compel the Government to withdraw acquisition proceedings or to return possession of land to the original owner when the land remains vested with a public authority.

Arguments of the Parties

Petitioner's Arguments

  • The lands acquired for construction of labour quarters remained unutilized for about 42 years, demonstrating that the acquiring authority (5th respondent/Housing Board) had no real proposal to utilize the land for the purpose for which it was acquired.
  • The petitioner (described as petitioner/Trust) did not receive any compensation and therefore sought reconveyance under Section 48-B of the Land Acquisition Act and withdrawal of acquisition proceedings.
  • The respondents' failure to consider multiple representations — despite orders of this Court — is arbitrary and mala fide, causing irreparable loss because the petitioner was dispossessed of the lands without utilization and without receiving compensation.
  • The petitioner relied on earlier orders permitting reconveyance or quashing of acquisition where lands remained unused for long periods and argued that their case stands on better footing because the award amount is still deposited with the Government and not received by the petitioner.

Respondents' (State Government and Housing Board) Arguments

  • The lands were acquired by valid procedure; possession was taken and handed over to the Housing Board, and the lands vest with the Housing Board.
  • Because the lands vest with the Housing Board, the Government cannot straightaway exercise power under Section 48-B to reconvey the lands to the original owners.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
W.P No. 13552 of 1995 (A.R. Lakshmanan, J.) Held that where respondents have not taken steps even after two decades, acquisition proceedings are liable to be quashed. The Court followed this line of authority to support the proposition that long non-use can justify quashing acquisition proceedings.
W.P No. 4600 of 1999 (S. Jagadeesan, J.), order dated 20.7.1999 Stated that the relevant date for assessing whether the acquiring authority required the land is the date on which the transfer was sought under Section 48-B; if on that date there was no proposal to utilize the land for public purpose, relief under Section 48-B may be granted. The Court quoted and relied on this reasoning to emphasize that the requisitioning body's position on the date of the owner's request is decisive for Section 48-B relief.
W.P No. 8283 of 1999 (P. Sathasivam, J.), order dated 30.8.1999; confirmed by Division Bench in W.A No. 2430 of 1999 (judgment dated 18.2.2000) Directed restitution (set aside acquisition) and required landowners to return compensation with 9% simple interest where lands were not utilized for the purpose of acquisition. The Court noted these decisions and contrasted them with the present case, observing that the present petitioner is in a better position because the award amount is still with the Government (so repayment by petitioner is not an issue).
W.P Nos. 5717 and 5718 of 2003 (P.K. Misra, J.), order dated 16.10.2003 Held that the Government cannot straightaway exercise power under Section 48-B where possession has been taken and the land vests with the Housing Board, in view of Section 16-B. The Court cited this decision to recognize the limitation on immediate exercise of Section 48-B when land vests with a public authority, and to highlight the relevance of Section 16-B.
Chandragauda Ramgonda Patil & Anr. v. State of Maharashtra & Ors., 1996 (6) SCC 405 Apex Court held restitution of land to erstwhile owners was not appropriate where land had been taken long back, vested in a municipality free from encumbrances, and adequate compensation had been paid. The Court relied on this Apex Court authority to emphasize the general rule that reconveyance is not granted where land has vested and compensation paid; however, the Court distinguished the present case because compensation had not been received by the petitioner.
S.P. Subramaniachetty v. K.S.R.T.C., AIR 1997 SC 2076 Held that while Government must consider withdrawal of acquisition on merits, courts cannot compel the Government to withdraw acquisition proceedings or restore possession to the owner. The Court cited this authority to underscore the limitation on judicial compulsion directed at the executive regarding withdrawal of acquisition.
Northern Indian Glass Industries v. Jaswant Singh & Ors., 2003 (1) SCC 335 Held that even if land was not used for the purpose for which it was acquired, it was open to the State Government to take action, but this did not confer a right on the former owners to ask for restitution. The Court relied on the principle to show that non-use alone does not automatically entitle the owner to restitution; it recognized the State's discretion and legal limitations.
C. Padma v. Dy. Secy. to the Govt. of T.N., 1997 (2) SCC 627 Held that where acquired land vested in the State and compensation had been paid to the claimant, restitution of possession was not warranted even if original public purpose ceased or land could not be used for that purpose. The Court cited this case as a supporting Apex Court authority for the proposition that vesting and compensation generally preclude restitution.
Govt. of A.P. v. Syed Akbar, 2004 (5) CTC 506 Held that where land acquired vested in the State Government free from encumbrances, reconveyance claimed by former owners could not be accepted. The Court applied the case to show the settled position that reconveyance is generally not permitted once land vests in the State; this was balanced against the factual distinction that the petitioner here had not received compensation.

Court's Reasoning and Analysis

The Court considered the petitioner's factual claim of prolonged non-use (about 42 years) and the sequence of procedural steps taken by the petitioner (representations, prior writ petitions and appeals). It gave careful consideration to authorities both from this Court and the Apex Court.

Key elements of the Court's analysis as stated in the opinion:

  • The Court of this High Court has in earlier orders (W.P No. 13552 of 1995 and W.P No. 4600 of 1999) held that where the acquiring authority has not acted to utilize land for long periods (decades), acquisition proceedings may be quashed; the decisive criterion is the position of the requisitioning authority on the date when the owner sought transfer under Section 48-B.
  • Decisions such as W.P No. 8283 of 1999 demonstrate that courts have set aside acquisitions and, in some cases, directed repayment of compensation with interest where land remained unutilized; the present petitioner is in a stronger factual position because the award amount remains deposited with the Government (so the issue of repayment by the petitioner does not arise).
  • The Court recognized the constraint posed by prior decisions (including orders in W.P Nos. 5717 and 5718 of 2003) that the Government cannot straightaway exercise Section 48-B where possession has vested in and remains with the Housing Board, particularly in light of Section 16-B which empowers the Government to forfeit land vested in it if unused and requires reasonable opportunity of being heard before such forfeiture.
  • The Court also noted Apex Court authorities (Chandragauda Ramgonda Patil; Northern Indian Glass Industries; C. Padma; Govt. of A.P v. Syed Akbar; S.P. Subramaniachetty) that establish the general principle that reconveyance or restitution is not routinely granted where land has vested in public bodies and compensation has been paid, and that courts cannot compel the Government to withdraw acquisition proceedings.
  • Balancing these authorities and the particular facts (notably that the award money is still with the Government and the petitioner had not received compensation), the Court concluded that the appropriate course was to permit the petitioner to make a representation and to require the Government to consider exercising its statutory powers under Section 16-B (forfeiture where land remains unutilized) and Section 48-B (reconveyance) on merits.

The Court did not order immediate reconveyance itself nor did it compel the Government to withdraw acquisition proceedings; instead, it directed administrative consideration of the petitioner's representation within a specified timeframe.

Holding and Implications

Holding:

The writ petition is disposed of with directions that the petitioner be permitted to make a representation to the Government requesting exercise of powers under Section 16-B (forfeiture where land vested with the Housing Board has not been used for the purpose acquired) and under Section 48-B (reconveyance and handing over to the land owners), and that the Government shall pass appropriate orders on that representation on merits within twelve weeks from the date of receipt of the representation. No costs. Consequentially, W.P.M.P Nos. 10414 and 10415 of 2005 are closed.

Implications

  • Direct effect on the parties: The Court did not order immediate reconveyance or quash the acquisition in this judgment; instead it mandated administrative consideration by the Government of the petitioner's representation, with timelines. The petitioner retains the right to seek reconveyance administratively under Sections 16-B and 48-B.
  • The Court applied and followed existing High Court and Apex Court authorities on the subject of reconveyance and restitution; it did not lay down a novel legal principle but required the executive to consider the petitioner's representation and decide on merits within the prescribed period.

This summary reproduces and structures the information contained in the provided opinion only. No facts or legal propositions have been added beyond those explicitly contained in the opinion text.

    Prithvi Trust Private Ltd. Rep. By Its Power Of Attorney, Mr. R. Perumal, No. 72, Luz Church Road, Mylapore, Chennai 600 004 Petitioner v. The State Of Tamil Nadu, Rep. By Its Secretary To Government, Industries, Labour & Cooperation (Housing), Fort St. George, Chennai600 009 And Others S

    1. The petitioner seeks a writ of Certiorarified Mandamus to call for the records of the first respondent connected with the land acquisition proceedings in respect of the lands measuring 4.54 Acres in Survey Nos. 588/1 and 588/2 in Thirumullaivoyal Village, Saidapet Taluk which now forms part of Ambattur Taluk, which has remained unutilized after acquisition by notification under Section 4(1) of the Land Acquisition Act, 1894 published in the Fort St. George Gazette Part II, Section 1 dated 17.7.1963, to quash the same and to direct the first respondent to deliver the lands to the petitioner as per the provisions of Section 48-B of the Land Acquisition Act.

    2.1 According to the petitioner, their lands measuring 4.54 acres in Survey Nos. 588/1 and 588/2 in Thirumullaivoyal Village, Saidapet Taluk, which now forms part of Ambattur Taluk, were acquired by the respondents pursuant to the notification issued under Section 4(1) of the Land Acquisition Act published in the Fort St. George Gazette Part II, Section 1 dated 17.7.1963 for construction of quarters to workers under Subsidized Industrial Housing Scheme and an award was also passed in Award No. 19 of 1963 dated 25.3.1968

    2.2 It is further stated that even though the impugned lands were taken over by the Housing Board on 7.2.1979 for construction of Labour Quarters, the same were not utilized till 1997, which necessitated the petitioner to file W.P No. 10481 of 1997 to direct the respondents therein to assign the impugned lands, viz., 4.54 acres in Survey Nos. 588/1 and 588/2 to the petitioner, but the said writ petition was dismissed by this Court on the basis of the submission of the Housing Board that the entire compensation has been deposited in the name of the petitioner long back. Hence, the petitioner filed W.A No. 904 of 1997, whereunder, the Division Bench of this Court, appreciating the fact that the petitioner has not received compensation till date, permitted the petitioner to make a further representation to the Government for reconveyance of the impugned lands as the Housing Board has not utilized the same.

    2.3 The learned counsel for the petitioner further submits that he also sent a representation to the third respondent on 29.9.2000 praying for reconveyance of the said lands, which were not utilized for the past 42 years, under Section 48-B of the Land Acquisition Act, explaining that the petitioner/Trust had not received any compensation for the lands for the past 42 years and therefore, sought to withdraw the entire land acquisition proceedings.

    2.4 Pursuant to the request made by the petitioner seeking reconveyance of the impugned lands, it is also alleged that the third respondent had also recommended to the Secretary to the Government, Revenue Department to consider the request of the petitioner for reconveyance of land favourably and had also requested the Government to issue orders for the award amount Rs. 29,585.47 kept under Revenue Deposit to be remitted in the appropriate account, and based on the said recommendation of the third respondent, the petitioner submits that the lands were not utilized by the respondents till date for the purpose for which they were acquired.

    2.5 The learned counsel for the petitioner further submits that the lands were taken over at the rates prevailing in the 1960s and even though it is returned now, nothing can compensate for the loss of the utilization of the lands by the petitioner for over 4 decades. Hence, the petitioner made a further representation on 5.5.2004

    2.6 Contending that in spite of several representations, the respondents have not considered his request for reconveyance of the impugned lands favourably, the petitioner preferred W.P No. 26850 of 2004, and this Court directed to dispose the representation within three months and since no orders were passed on the representation of the petitioner, referred to above, the petitioner has preferred this writ petition.

    2.7 The main contention of Mr. R. Natesan, learned counsel for the petitioner is that the non-utilisation of the land acquired for the purpose of construction of labour quarters for a period of 42 years would itself reveal that the 5th respondent does not have any proposal to utilize the land for the purpose it was acquired. That apart, it is also contended that the non-consideration of several representations of the petitioner, in spite of the orders of this Court, is arbitrary and mala fide, and that the petitioner who had been dispossessed of their lands by the acquisition proceedings of the first respondent, at the instance of the fifth respondent, even without any scheme or proposal for constructing the labour quarters in the impugned lands, has been put to irreparable loss and hardship.

    3. The learned counsel appearing for the State Government and the Housing Board submitted that since the impugned lands were acquired by valid procedure and possession was taken and handed over to the fifth respondent/Board and the land vests with the Housing Board, the Government cannot pass orders under Section 48-B of the Land Acquisition Act, reconveying the same.

    4. I have given careful consideration to the submissions of both sides.

    5. This Court, by order made in W.P No. 13552 of 1995 of A.R Lakshmanan, J. (as His Lordship then was), which was confirmed by the Division Bench; and also in the decision of S. Jagadeesan, J. in W.P No. 4600 of 1999, dated 20.7.1999, held that in a case where the respondents have not taken steps even after two decades, the acquisition proceedings itself are liable to be quashed. The relevant portion of the said order dated 20.7.1999 made in W.P No. 4600 of 1999 reads as follows:

    “11. Hence it has to be considered whether on the date when the petitioners sought for the transfer the second respondent required the acquired land for the public purpose for which it was acquired or any other public purpose. It may not be open to the requisitioning body to change its mind after a request for the transfer of the land under Section 48-B is made. In that case it will be an after thought and always it may be open to the requisitioning authority to proclaim that the particular land is required for any public purpose in future. That is why the criteria for consideration is the date on which the transfer was sought for by the owner of the land, which means on that date the requisitioning body required the land for the public purpose for which it was acquired or for any other public purpose.

    12. In this case, I am of the view that the petitioners filed their writ petition challenging the acquisition on the ground that the land is vacant and the second respondent admittedly did not require the land for the purpose for which it was acquired and subsequently the public purpose had been challenged, i.e the proposal for construction of the flats by converting the site as a residential one. Hence it is clear that when the petitioners made a request, the second respondent had no proposal for utilization of the land for a public purpose and as such the petitioners are entitled for the relief under Section 48-B of the Land Acquisition Act.

    13. Moreover in paragraph 6 of the counter affidavit at page 6, the second respondent has stated that the Tamil Nadu Housing Board has developed the above land and allotted to the public, whereas in the impugned order it is clearly stated that tenders have been called for the construction of HIG Flats on 7.9.1997 and when the contract about to be entered into on 8.10.1997, the High Court has granted stay and hence nothing to be proceeded with thereafter. The report sent by the Housing Board to the first respondent on which basis the impugned order has been passed is to the effect that the Housing Board still requires the land for the construction of the HIG flats which decision has been taken after the filing of the writ petition. But, whereas, in the counter affidavit it is stated that the land have been already allotted to the public which is totally contradictory to the report mentioned in the impugned order. Hence, the second respondent is not clear as to whether the land has been put to use for the public purpose for which it was already acquired or whether the land is required for the proposed public purpose. In view of the contradictory versions of the second respondent, I have a doubt as to whether the second respondent has made up his mind to utilise the land for any public purpose at all.”

    6. Following the said decisions, P. Sathasivam, J., in W.P No. 8283 of 1999, by order dated 30.8.1999, in a similar case where the lands were not utilized for the purpose they were acquired, directed the land owners to return the compensation received by them with 9% simple interest per annum, and set aside the acquisition proceedings; and the said order dated 30.8.1999 was also confirmed by the Division Bench of this Court, by judgment dated 18.2.2000 made in W.A No. 2430 of 1999, and the same had become final.

    7. Of course, it is needless to mention that the case of the petitioner, in the instant case, stands in a better footing than those in W.P No. 8283 of 1999, as the award amount still lies with the Government and the same was not received by the petitioner and therefore, the question of directing the petitioner to repay the same with interest does not arise.

    8.1 By order dated 16.10.2003 made in W.P Nos. 5717 and 5718 of 2003, wherein the properties were acquired and possession of the lands had been taken over by the Housing Board and remains vested with the Housing Board, it is held by P.K Misra, J., that the Government cannot straight-away exercise the power under Section 48-B of the Land Acquisition Act in view of Section 16-B of the Land Acquisition Act.

    8.2 In this connection it is apt to refer to Section 16-B of the Land Acquisition Act, which reads as follows:

    “Section 16-B: Land to be forfeited in certain cases.— Where the Government are satisfied that the land acquired under this Act for any public purpose as referred to in sub-section (1) of Section 4 is not used for the purpose for which it was acquired, they may, by an order, forfeit the land as penalty and the land shall vest in the Government in Revenue Department free from all encumbrances:

    Provided that no order under this Section, shall be made unless the person or authority aggrieved has had a reasonable opportunity of being heard.”

    9. In the case of Chandragauda Ramgonda Patil & Anr. v. State of Maharashtra & Ors., 1996 (6) SCC 405, the claim of the petitioner for restitution of the possession of the land acquired pursuant to the resolution of the State Government was rejected. The Apex Court held as follows:

    “..2. We do not think that this Court would be justified in making direction for restitution of the land to the erstwhile owners when the land was taken way back and vested in the Municipality free from all encumbrances. We are not concerned with the validity of the notification in either of the writ petitions. It is axiomatic that the land acquired for a public purpose would be utilized for any other public purpose, though use of it was intended for the original public purpose. It is not intended that any land which remained unutilized, should be restituted to the erstwhile owner to whom adequate compensation was paid according to the market value as on date of the notification. Under these circumstances, the High Court was well justified in refusing to grant relief in both the writ petitions.”

    10. It is well settled in law that the Government has to consider the withdrawal of acquisition only on merits, but the Court cannot compel the Government to withdraw the acquisition proceedings or to restore the possession to the owner of the land, as held by the Apex Court in S.P Subramaniachetty v. K.S.R.T.C, AIR 1997 SC 2076.

    11. In Northern Indian Glass Industries v. Jaswant Singh & Ors., 2003 (1) SCC 335, it was held that “if the land was not used for the purpose for which it was acquired, it was open to the State Government to take action but that did not confer any right on the respondents to ask for restitution of the land”. Paragraphs 10 and 11 of the said judgment read thus:

    “10. In Chandragauda Ramgonda Patil v. State of Maharashtra, 1996 (6) SCC 405, it is stated that the acquired land remaining unutilized was not intended to be restituted to the erstwhile owner to whom adequate compensation was paid according to the market value as on the date of notification.

    11. Yet again in C. Padma v. Dy. Secy. to the Govt. of T.N, 1997 (2) SCC 627, it is held that acquired land having vested in the State and the compensation having been paid to the claimant, he was not entitled to restitution of possession on the ground that either original public purpose has ceased to be in operation or the land could not be used for other purpose.”

    12. The Apex Court in Govt. of A.P v. Syed Akbar, 2004 (5) CTC 506, while deciding the question of reassignment of land vested with the Government, which arises from the State of Andhra Pradesh, held that:

    “15. … When the land is acquired under the Land Acquisition Act which is vested in the State Government free from all encumbrances, the question of reconveying the land as claimed by the respondent could not be accepted in view of the clear position of law stated in the decisions of this Court aforementioned. Whether the unused remaining land out of the acquired land was sufficient or not for the purpose of construction of Mandal Revenue Office could not be decided by the High Court.”

    13. Under such circumstances, except to permit the petitioner to make a representation to the Government requesting the Government to exercise the power under Section 16-B of the Land Acquisition Act, which empowers to forfeit the lands which remain vested with the Housing Board, but not used for the purpose it was acquired for the past 42 years, and also to request the Government to pass appropriate orders under Section 48-B of the Land Acquisition Act, which provides for reconveyance and handing over of the impugned lands to the land owners; and to direct the Government to pass appropriate orders on the above representation, on merits, within twelve weeks from the date of receipt of the representation, no further orders are required in this writ petition.

    The writ petition is disposed of with the above directions. No costs. Consequently, W.P.M.P Nos. 10414 and 10415 of 2005 are closed.

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