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Vijay Foundation (P)... v. The Principal Commis...
Structured Summary of the Opinion
Factual and Procedural Background
The petitioner is a company claiming title and continuous possession of land in Survey No. 429/1C, Perumbakkam village (stated extent 3550 sq. mts / 1 acre) purchased in parts in 1995 from one Krishnan and three purchasers who had earlier bought from Krishnan. The Tamil Nadu Urban Land (Ceiling and Regulation) Act ("the Act") was introduced in 1978 but, according to the opinion, its application to Perumbakkam village was notified on 09.08.1995.
The respondents initiated ceiling/ acquisition-like proceedings against Krishnan: a notice under Section 9(5) dated 24.02.1998 (served by affixture), and subsequent actions under Sections 10(1) and 11(5) on 15.04.1998 and 30.11.1998 respectively (served by affixture). The petitioner alleges it had been in possession since its purchases in 1995 and only became aware of the Krishnan proceedings in 1999.
The petitioner filed an earlier writ petition (W.P. 930 of 2001) which was dismissed on 18.01.2001 with liberty to appeal. The petitioner filed an appeal under Section 33 of the Act on 20.02.2001; the appellate authority refused to entertain the appeal on the ground that the Act had been repealed (the opinion records a repeal date as 01.06.1999 in one paragraph and elsewhere refers to repeal on 16.09.1999). The petitioner challenged the appellate authority's order dated 22.02.2003 and the ceiling proceedings by filing the present writ petition seeking certiorari and mandamus to quash the proceedings and records (including Proceedings Na.Ka.S.R 154/98 dt. 24.2.1998, the Form VII notice dated 30.11.1998, and Endt. R.C 2896/2001-J1 dated 20.2.2003) and to declare that all proceedings shall abate under Section 4 of the Repeal Act.
Legal Issues Presented
- Whether acquisition/ceiling proceedings initiated under the Act against Krishnan can, consistently with statutory procedure, affect the petitioner's rights as a purchaser and person in possession of the land.
- Whether the statutory procedural requirements in Sections 7 to 12 of the Act (notice, opportunity to file statements/objections, final statement, notification, consideration of claims, and surrender/possession) were complied with by the authorities in the proceedings against the land in question.
- Whether possession said to have been taken by the respondents (invoking Section 11(5)) is vitiated where the statutory conditions for acquisition were not followed or where proceedings were initiated against a person who was not the owner on the date the Act applied to the village.
- Whether the repeal of the Ceiling Act affects the respondents' ability to proceed in respect of the petitioner's land and whether appeals arising from pre-repeal proceedings could still be entertained by the appellate authority.
Arguments of the Parties
Petitioner's Arguments (as presented by Mr. R. Muthukumarasamy)
- All proceedings were initiated only against Krishnan, who had sold major portions of the land before the Act was extended to Perumbakkam; on the date the Act was extended (09.08.1995) Krishnan did not hold land in excess of the ceiling limit.
- The purchasers (including the petitioner) obtained registered sale deeds in 1995 and have been in possession since the dates of purchase; therefore proceedings against Krishnan cannot affect petitioner's rights.
- Petitioner retained possession by erecting fencing from the date of purchase; consequent actions (including purported action under Section 11(5)) are invalid since they were initiated against a person who did not hold the land at the relevant time.
- The petitioner only became aware of the Krishnan proceedings in 1999 and promptly sought relief by writ petition and by appeal as directed by the Court.
Respondents' Arguments (as presented by Mr. M. Dhandapani, Additional Government Pleader)
- Section 4 prohibits holding vacant land in excess of the ceiling limit; authorities learned Krishnan was holding excess land and that he failed to file the statement required under Section 7 of the Act, so proceedings against him were appropriate.
- Notices under Section 9(5) (24.02.1998), and orders under Sections 10(1) and 11(5) (15.04.1998 and 30.11.1998 respectively) were issued and served by affixture in accordance with the respondents' account of compliance with the law.
- The respondents assert they took possession of the alleged excess land on 01.06.1999 and handed it over to the revenue department; therefore the writ petition should be dismissed.
Table of Precedents Cited
The opinion does not cite any judicial precedents; it refers to statutory provisions only.
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The court examined the statutory scheme laid out in the Act (as described in the opinion): Section 4 (prohibition on holding vacant land in excess of the ceiling), the duty to file statements (Section 7), the authority's function of preparing a draft statement and serving it (Sections 7(5) and 9), disposal of objections and making a final statement (Section 10), publication of a notification and consideration of claims (Section 11), vesting on publication (Section 11(3)), power to require surrender of possession under Section 11(5) and, if necessary, to take possession by force, and the statutory framework for compensation (Section 12 and Rule 11).
Applying that framework to the facts before it, the court found:
- The Act was extended to Perumbakkam by notification dated 09.08.1995; on that date, according to the court's recounting, Krishnan was not the owner of the land in question and the petitioner had already acquired major portions of the land in 1995.
- The statutory process contemplates notice to the person who is liable to file a statement and an opportunity to be heard before surplus is determined against any person. Because "person" includes companies and other entities (per Section 3(j)), the ceiling limit and related determinations must be specified to the correct person after opportunity is given.
- Surplus varies person to person; therefore, before declaring surplus and taking possession, the authorities must give an opportunity to the person actually liable to file a statement. The authority's power to prepare a draft statement and invite objections is central (Sections 7(5) and 9); the final statement under Section 10 must be served, and the statutory notification and claim process under Section 11 must follow before any vesting or possession is valid.
- In this case the respondents initiated proceedings against Krishnan (a person who, on the date the Act applied, was not the owner of the disputed land) and did not follow the mandatory conditions in Sections 7 to 12 vis-à-vis the petitioner as owner/possessor. The court characterized these conditions as mandatory and concluded that the respondents did not comply with them in respect of the petitioner's land.
- Because the statutory conditions were not followed and the proceedings were initiated against the wrong person, the alleged possession taken by the respondents was vitiated. The court rejected the respondents' contention that mutation entries naming Krishnan made initiation of proceedings against the petitioner unnecessary: the court held that mutation entries alone do not substitute for the statutory notice and opportunity provisions and are not a valid ground to acquire the petitioner's lands.
- The court also noted that the petitioner had been in continuous possession since purchase and that interim protection of possession was granted by the court at the time of admission of the writ petition and remained in force.
- The opinion records that the Ceiling Act was repealed; the opinion contains two different dates in different places (it states in one paragraph that the Act "was repealed on 01.06.1999" and elsewhere refers to repeal on "16.09.1999"). The court treated the repeal as a relevant factor in concluding that respondents could not proceed against the petitioner.
Holding and Implications
Holding: The court quashed the entire acquisition/ceiling proceedings initiated by the respondents in respect of the petitioner's land and allowed the writ petition. The court ordered no costs.
Implications: The direct effect of the decision is to nullify the respondents' proceedings (including the notices and orders referenced in the petition) insofar as they concern the petitioner's land; the petitioner's possession remains protected by the court's interim order (which remained in force at the time of the decision). The opinion does not articulate or announce any broader novel precedent beyond the application of the statutory scheme to the facts before the court; it grounds relief on non-compliance with the mandatory procedural provisions of the Act and on the fact that proceedings were initiated against a person who, according to the court's findings, was not the owner when the Act extended to the village.
VCJ/VCS
This writ petition is filed for the issuance of a writ of certiorarified mandamus to call for the connected records of the second respondent issued in his Proceedings Na.Ka.S.R 154/98 dt. 24.2.1998 under Section 9(5) of the Principal Act declaring the petitioner's land in S. No. 429/1C of Perumbakkam village measuring to an extent of 3550 sq.mts as excess vacant and the notice issued by him in 2nd respondent's proceedings R.C No. 154/98 in Form VII dated 30.11.1998 under Section 11(5) of the said Act requiring to surrender possession of the said land with the Tahsildar, Tambaram and the proceedings of the 1st respondent in his Endt. R.C 2896/2001-J1 dated 20.2.2003, quash the same in so far as the petitioner is concerned and direct the second respondent to declare that all proceedings taken by the second respondent to acquire the lands as excess vacant land shall abate under Section 4 of the Tamil Nadu Urban Land (Ceiling and Regulation) Repeal Act (Act 20 of 1999).
2. The petitioner is a company incorporated under the Companies Act. The property comprised in Survey No. 429/1C Perumbakkam Village to an extent of 1 acre is the subject matter of the writ petition. The said land was originally belonged to one Krishnan. The said Krishnan sold 75 cents by executing three sale deeds dated 21.12.1984 each 25 cents to one J. Venkata Subba Reddy, Sudha and Balakrishna Reddy. The said three persons sold their respective 25 cents of land under separate sale deed in favour of the petitioner on 21.07.1995, 08.08.1995 and 18.07.1995 respectively. The said Krishnan also sold 25 cents retained by him to the petitioner on 18.08.1995 Though The Tamil Nadu Urban Land (Ceiling and Regulation) Act (hereinafter referred to as ‘the Act’) was introduced in the year 1978, the same was extended to Perumbakkam village only on 09.08.1995 by a notification in Government gazette under Section 48(2) of the Act. After extending the application of the said Act to Perumbakkam village, the respondents issued notice under Section 9(5) of the Act to the said Krishnan on 24.02.1998 It is stated that the said Krishnan was not available and hence it was served by affixure. Similarly, notices under Sections 10(1) and 11(5) were also served on the said Krishnan on 15.04.1998 and 30.11.1998 respectively by way of affixure. It is stated by the petitioner that despite the issuance of the said notices and the orders passed by the respondents, the property has been in the possession of the petitioner ever since from the date of purchase in the year 1995 from their vendors. The petitioner came to know about the proceedings initiated by the respondents against the said Krishnan only in the year 1999 and immediately they filed a writ petition in W.P 930 of 2001 seeking a writ of mandamus directing the respondents to declare that all proceedings taken to acquire the said land shall abate as per the provisions of Section 4 of the Tamil Nadu Urban Land (Ceiling and Regulation) Repeal Act, 1999. The said writ petition was dismissed on 18.01.2001 permitting the petitioner to file an appeal before the appellate authority invoking Section 33 of the said Act. The petitioner also filed an appeal under Section 33 of the Act before the appellate authority on 20.02.2001 It is to be remembered that the said Act was repealed on 01.06.1999 Hence the appellate authority found that the appeal cannot be entertained in view of the fact that the Act was already repealed, by order dated 22.02.2003 The present writ petition is filed seeking to quash the order of the appellate authority dated 22.02.2003 and ceiling proceedings.
3. The learned senior counsel Mr. R. Muthukumarasamy appearing for the petitioner submitted that all the proceedings were initiated only against the said Krishnan, who sold major portion of the property as early as in the year 1984 and also the property retained by him to an extent of 25 cents on 18.08.1995 to the petitioner herein. The persons purchased from the said Krishnan under three separate sale deeds to an extent of 25 cents each also sold the said property to the petitioner by registered sale deeds dated 21.07.1995, 08.08.1995, 18.07.1995 respectively. The application of the Act was extended to Perumbakkam village only on 09.08.1995 On the said date, the said Krishnan was not holding any land or land in excess of the ceiling limit as mentioned in the Act. Hence the proceedings initiated against the said Krishnan are not in any way interfere with the rights of the petitioner. Though the respondents have claimed that they have taken possession on 01.06.1999 invoking Section 11(5) of the Act, the petitioner retained possession of the property by erecting necessary fence from the date of the purchase from their vendors. In view of the fact that the proceedings initiated by the respondents against the person, who has not held the land, the pursuant action including the action taken under Section 11(5) are invalid. The petitioner came to know about the proceedings initiated by the respondents against the said Krishnan only in the year 1999. Immediately they filed a writ petition and this Court directed them to file an appeal, which was also done. The appellate authority refused to entertain the appeal on the ground that the Act itself was repealed on 16.06.1999 Hence it is necessitated them to file the present writ petition and prayed for allowing the same.
4. Learned Additional Government Pleader Mr. M. Dhandapani appearing for the respondents submitted that under Section 4, no person shall be entitled to hold any vacant land in excess of the ceiling limit. The authorities came to know that the said Krishnan was holding excess land and also he failed to file necessary statements required under Section 7 of the Act. Hence proceedings were initiated against the said Krishnan and notice under Section 9(5) of the Act was issued on 24.02.1998, which was served by way of affixure alone, and orders were passed under Section 10(1) and 11(5) of the Act on 15.04.1998 and 30.11.1998 respectively. Thus the respondents had complied with the provisions of the law and took possession of the said land, which was found excess, on 01.06.1999 and handed over the same to the revenue department and prayed for dismissal of the writ petition.
5. I have carefully considered the submissions made by the learned senior counsel for the petitioner and the learned Additional Government Pleader for the respondents.
6. No doubt, under Section 4 of the Act, no person shall be entitled to hold any vacant land in excess of the ceiling limit. The person holding vacant land in excess of ceiling limit must file a statement under Section 7(2) of the Act. On receipt of the statement, the authorities shall consider it under Section 9 of the Act, pass order under Section 9(5) of the Act and proceed further issuing final statement under Section 10 of the Act and taking possession under Section 11(5) of the Act. In this case, though the Act was introduced in the year 1978, the same was extended to Perumbakkam village only on 09.08.1995, the date on which the notification was issued by the Government of Tamil nadu. On the date of issuing the said notification, the said Krishnan was not the owner of the said land. On the said date, no doubt, the petitioner purchased major portion of the land comprised in S. No. 429/1C, Perumbakkam village. In this case, the petitioner has not filed the statement as required under Section 7 (1) of the Act and in such cases, the competent authority is of opinion that person holding vacant land in excess of the ceiling limit at the commencement of this Act, it may serve a notice upon such person under Section 7 (2) of the Act requiring him to file within such period mentioned therein and on whom such notice is served shall be bound to comply with such notice. Subclause (5) of Section 7 contemplates that if any person who is liable to file a statement under this Act fails to file the statement within the period within which it has to be filed, the competent authority, may obtain necessary information in such manner as it thinks fit. Surplus of land varies from person to person, hence, before deciding surplus, the person, who is the owner of the property has to be given opportunity. As defined under Section 3 (j) of the Act, a person includes a individual, a family, a firm, a company or an association or body of individual whether incorporated or not Similarly, ceiling limit has been fixed under Section 5 of the Act in cases of every person (other than family and industrial undertaking) the ceiling limit shall be to a particular extent. Until notice is served to the person, the ceiling limit cannot be specified, hence, notice to the person is very much required. The authority is empowered under Section 7 (5) and Section 9 to prepare a draft statement and serve it on the person liable to file and inviting his objection. Under Section 9 (5), the competent authority shall duly consider any objection received, within the period specified in the notice and shall after giving the objector a reasonable opportunity of being heard pass such orders as it deems fit. Under Section 10, after disposal of the objections, if any, the competent authority shall make necessary alteration in the draft statement in accordance with the order passed on the objections and shall determine the vacant land held by the person concerned in excess of ceiling limit and cause a copy of statement as so altered to be served in the manner referred to in sub-section (4) of Section 9 and such statement shall be deemed to be the final statement. As soon as after service of final statement under Section 10, the competent authority shall cause notification giving the particulars of the vacant land held by such person in excess of the ceiling limit stating that such vacant land is to be acquired by the State Government and claims of all persons interested in such vacant land may be made by them personally or by their agents giving particulars of the nature of their interests in such land, be published for the information of the general public in Government Gazzette and in such manner as may be prescribed under Section 11. Section 11 (2) says that after considering the claims of all persons interested in such land, the competent authority has to determine the nature and extent of such claims and pass such orders as it deems fit. Under Section 11(3), at any time after the publication of the notification under sub-section (1), the land be deemed to have been acquired by the state Government and vests absolutely in it free from all encumbrances. Section 11(5) says that the State Government, by notice in writing, order any person, who may be in possession of it to surrender or deliver possession thereof to State Government or to any person duly authorised by the State Government in this behalf within 30 days of the service of the notice. If any such person fails to comply with the order made under sub-section (5) of Section 11, the competent authority may take possession of the vacant lands by using such force as may be necessary. Section 12 sets out the quantum of compensation payable to the person having interest in the vacant land. Basis of compensation and also guidelines for computing compensation is also mentioned. Expeditious payment of compensation within one year has been prescribed in Rule 11, which reckoned from the date of acquisition.
7. The respondents herein have initiated acquisition proceedings against the person who is not at all owner of the lands. The above quoted mandatory conditions mentioned in Sections 7 to 12 were not followed by the respondents. The statutory conditions for the purpose of acquiring the lands has not been followed at all in this case, hence, the alleged possession taken by the respondents is vitiated. The Ceiling Act is not like Land Acquisition Proceedings where the authorities are required to serve notice upon the owner or occupier of the land and on such person known or believed to be interested thereon to show cause within 30 days from the date of service of notice as to why the lands should not be acquired, hence, based on the entries in the mutation proceedings, the opportunity be given to the owner or occupier or person interested in the land be sufficient because the notification specifies the intention of the Government to acquire the land for public purpose, which is mandatory. So, the defence that mutation proceedings contain only name of Krishnan, hence, the proceedings were not initiated against the petitioner is not a valid ground. Based on the proceedings initiated against the wrong person, the lands of the petitioner cannot be acquired by the respondents.
8. Admittedly, the possession of the land is with the petitioner ever since the date of purchase continuously and this Court considering it at the time of admission of this writ petition protected the same by issuing interim order, which is also in force till date. Moreover, the above said Act was also repealed on 16.09.1999, hence, it is not open to the respondents to proceed against the petitioner.
9. In view of the above discussion, the entire acquisition proceedings initiated by the respondents in respect of the petitioner's land is quashed. The writ petition is allowed. No costs.
VCJ/VCS
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