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CDJ 2026 MHC 2290 print Preview print print
Court : High Court of Judicature at Madras
Case No : A.S. Nos. 498, 499 & 517 of 2020
Judges: THE HONOURABLE MR. JUSTICE N. SATHISH KUMAR & THE HONOURABLE MR. JUSTICE R. SAKTHIVEL
Parties : The Special Tahsildar (Land Acquisition) SIPCOT, Sriperumpudur Versus “Dhanalakshmi Real Estate” A Partnership Firm, Represented by its Managing Partner N.Prema Chennai & Others
Appearing Advocates : For the Appellant: G. Nanmaran, Special Government Pleader. For the Respondents: R1, A.S. Vijay Anand, R2, Ramesh Venkatachalapathy, Advocates.
Date of Judgment : 10-02-2026
Head Note :-
Land Acquisition Act, 1894 - Section 54 -
Judgment :-

(Prayers: Appeal filed under Section 54 of the Land Acquisition Act, 1894, against the judgment and decree dated 08.03.2016 passed in L.A.O.P.No.10 of 2015 on the file of the Additional Sub-Court, Chengalpattu.

Appeal filed under Section 54 of the Land Acquisition Act, 1894, against the judgment and decree dated 08.03.2016 passed in L.A.O.P.No.77 of 2007 on the file of the Additional Sub-Court, Chengalpattu.

Appeal filed under Section 54 of the Land Acquisition Act, 1894, against the judgment and decree dated 08.03.2016 passed in L.A.O.P.No.314 of 2007 on the file of the Additional Sub-Court, Chengalpattu.)

Common Judgement:

N. Sathish Kumar, J.

1. Challenging the common order of the Reference Court (Additional Sub-Court, Chengalpattu), dated 08.03.2016, in L.A.O.P.Nos.77 of 2007, 314 of 2007 and 10 of 2015, enhancing the compensation fixed by the Land Acquisition Officer (Special Tahsildar, SIPCOT, Siruseri Scheme, Sriperumpudur), from Rs.3,100/- per cent to Rs.52,320/- per cent, the above Appeals have been filed by the Land Acquisition Officer (State).

2. Brief facts of the case are as follows :

               The lands in question were required by the Government for establishment of an Information Technology Park by Electronics Corporation of Tamil Nadu Limited (ELCOT) in Siruseri and other villages of Chengalpattu Taluk, Kancheepuram District. The Government ordered that the development of the above park shall be taken up by SIPCOT Limited instead of ELCOT (hereinafter referred to as “requisition body”). On proposal submitted by the requisition body, the Government vide G.O.Ms.No.115, Industries (MID.II) Department, dated 22.03.2001, accorded approval for acquisition of 49.21.0 Hectares of land under urgency Clause 17(1) of the Land Acquisition Act, 1894, for formation of Information Technology Park at Siruseri and other villages. As a first phase, an extent of 20.20.5 Hectares was decided to be acquired with 4.24.0 Hectares in Egattur Village and 15.96.5 Hectares in Siruseri Village. After the enforcement of the Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997 (Act 10 of 1999) with effect from 21.09.2002, the acquisition proceedings were initiated under the said Act.

3. Accordingly, individual notices under Form-A and public notices under Form-B under Section 3(2) of the Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997 (Act 10 of 1999) were approved by the Government on 28.01.2004 and the individual notices under Form-A were sent to the land owners/interested persons under certificate of posting on 26.03.2004 and 27.03.2004. The public notices under Form-B were published in various Government offices and public places on 26.03.2004. Therefore, notification under Section 3(2) of the Act was published on 26.03.2004. After considering the objections raised by the land owners, the notification under Section 3(1) of the Act was published in the Government Gazette on 28.07.2004. Thereafter, on approval of notice under Section 4(2) of the Act by the Government on 07.10.2004, the District Collector issued directions to the land owners/interested persons to hand over the lands to the Land Acquisition Officer within a period of 30 days from the date of the order. Accordingly, possession was taken on 15.11.2004.

4. Thereafter, the Land Acquisition Officer proceeded to fix the compensation. After examination of 92 sale exemplars in respect of Siruseri Village, the Land Acquisition Officer has taken the sale deed registered as Doc.No.2924 of 200 before the Sub-Registrar’s Office, Thiruporur, dated 20.10.2003, pertaining to S.Nos.235/6B1 and 235/6, by which, 99 cents of dry land had been sold for Rs.3,06,900/-, as data sale, which works out to Rs.3,100/- per cent or Rs.7,657/- per Are, as the sale land was not only similar to the lands under acquisition on ground, but also on record in all other aspects. Accordingly, the Land Acquisition Officer fixed the compensation at the rate of Rs.3,100/- per cent as land value. The Special Commissioner of Land Administration, Chepauk, Chennai, has also approved the same vide proceedings dated 19.07.2006. Accordingly, the Land Acquisition Officer passed an Award in Award No.1/2006 (Rc.No.440/2002) dated 27.07.2006, fixing the land value at the rate of Rs.3,100/- per cent, along with solatium @ 30% on the market value with 12% additional market value to be paid from the last date of publication of notification under Section 3(2) of the Act.

5. Aggrieved by the quantum of compensation awarded, certain land owners/claimants preferred petitions before the Land Acquisition Officer for reference before the Civil Court to get just compensation. Accordingly, the Land Acquisition Officer referred the cases under Section 8 of the Act. The Reference Court took the cases on file in respect of the following lands as follows :

Sl. No.L.A.O.P.Nos.ClaimantSurvey No.Extent
1.77 of 2007M.M.Jaffar Sahib, S/o.M.A.Majeed Sahib231/34, 35400 sq.m.
2.314 of 2007Mohamed Hidayathulla, S/o.Mohamed Khudathulah231/45250 sq.m.
3.10 of 2015Sri Dhanalakshmi Real Estate, represented by M.M.Jaffar Sahib, S/o.M.A.Majeed Sahib231/1B1 etc.,58293 sq.m.
6. On the side of the claimants, C.W.1 to C.W.3 were examined and Exs.C1 to C6 were marked. On the side of the Referring Officer, R.W.1 was examined and no document was marked.

7.The Reference Court, on appreciation of evidence and materials on record, particularly, Exs.C3 to C5, wherein, the sale value was Rs.52,320/- per cent, held that no prejudice will be caused to the Land Acquisition Officer in relying upon them, and accordingly, enhanced the compensation from Rs.3,100/- to Rs.52,320/- per cent, by its common order dated 08.03.2016.

8. Aggrieved by the enhancement of the compensation by the Reference Court, the Land Acquisition Officer/Referring Officer has preferred the above Appeals.

9. It is brought to the notice of this Court by the learned counsel for the claimants/1st respondent in all these Appeals that this Court, on earlier occasion, in a batch of Appeals in A.S.Nos.361 to 372 of 2016, challenging the common order of the Reference Court enhancing the compensation from Rs.3,100/- to Rs.52,320/-, arising out of the same acquisition proceedings, confirmed the order of the Reference Court by its judgment dated 29.04.2022. Challenging the same, Special Leave Petition in S.L.P.(Civil) Diary No.13570 of 2025 was filed before the Hon'ble Supreme Court. The Hon'ble Supreme Court, taking note of the findings of this Court on facts that Exs.C5 to C7 dated 24.03.2004 were the most proximate in time and location to the acquisition notification reflecting the prevailing market value, has confirmed the judgment of this Court, by its order dated 16.09.2025. The Apex Court has also not interfered with the deduction at the rate of 20% towards development charges as approved by the High Court.

10. Since the matter has reached finality and the Apex Court has confirmed the compensation at the rate of Rs.52,320/- per cent with deduction at the rate of 20% towards development charges in respect of other lands acquired under the same acquisition proceedings, the same will be applicable to the present case also. Learned counsel on either side would also fairly submit that the order of the Hon'ble Supreme Court in S.L.P. (Civil) Diary No.13570 of 2025, dated 16.09.2025, confirming the enhanced compensation of Rs.52,320/- per cent along with deduction at the rate of 20% towards development charges, will govern the present cases also.

11. In view of the above, these Appeals are partly allowed. While confirming the enhanced compensation at the rate of Rs.52,320/- per cent, a deduction of 20% towards development charges is also ordered, and thereby, the land value, after deduction of 20% is fixed at Rs.41,856/- per cent. Except the above modification, the impugned order and decree of the Reference Court stands confirmed in all other aspects.

12. The appellant/State shall deposit the modified compensation at the rate of Rs.41,856/- (Rupees Forty One Thousand Eight Hundred and Fifty Six only) per cent in respect of the Survey Numbers which are the subject matter of these three Appeals, as extracted supra, along with solatium, interest and other components as ordered by the Reference Court, less the amount already deposited, if any, to the credit of respective L.A.O.Ps. before the Reference Court, within a period of four weeks from the date of this order. No costs.

 
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