Madras High Court Orders Neyveli Lignite Corporation to Compensate Farmers with Rs 40,000 Per Acre for Crops Damaged on Acquired Land

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Synopsis

Court noted that despite the completion of the acquisition process, the farmers were cultivating on the acquired land and NLC had also not made enough efforts to stop them. 

The Madras High Court recently ordered the Neyveli Lignite Corporation to settle the compensation of Rs.40,000 per Acre to the farmers for the crops damaged on account of Paravanar Canal Diversion activities.

Court further ordered that the erstwhile landowners shall not carry on any further cultivation activities in the acquired lands after harvesting the existing crops on or before September 15, 2023. 

"There should not be any further cultivation or otherwise and the Neyveli Lignite Corporation is entitled to guard the acquired lands in the manner known to law," directed the bench of Justice SM Subramaniam.

During the period from 2006 to 2013, the NLC undertook the acquisition of farmlands for the Mine II expansion, specifically for the Paravanar Canal Diversion Project. This acquisition was conducted in accordance with the provisions of the Tamil Nadu Acquisition of Land for Industrial Purposes Act 1997, and the affected farmers received enhanced compensation for their lands.

In a recent turn of events, bulldozers began demolishing standing crops to make way for the canal, sparking massive protests. In response to this situation, a farmer approached the high court to restrict NLC from seizing the fertile lands until the ongoing harvest was completed.

The single judge bench of Justice SM Subramaniam held that the land in question was acquired by the Government following the procedures as contemplated under the Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997.

The compensation determined by the Competent Authorities was already settled in favour of the landlosers, court further noted.

In view of the same, court held, "Once the lands are acquired by following the procedures as contemplated under the Land Acquisition Act, the landowners cannot claim for any right over the property nor enter into the property and cultivate the same. Such an entry, if any, made is to be construed as trespass".

However, the court underscored that NLC was also on fault in the present matter. It said, "in the present case, the fifth respondent has not effectively prevented the erstwhile landowners from cultivating the land and it is brought to the notice of this Court that such cultivation activities are going on for the past many years."

Therefore, the court held that a balanced approach is required in such circumstances.

Court referred to the judgment passed by the Supreme Court of India in the case of Land and Building Department Through Secretary and Another vs. ATTRO Devi and Others [2023] and held that on the completion of the process of acquisition proceedings, the land absolutely vests with the Government and thereafter the erstwhile owners of the land has no right to enter into the property.

Further, while noting that both, the farmers and NLC, were at fault, court thought fit that 50% liability for the damage caused to standing crops to be fixed on the farmers' side and 50% liability fixed on the side of NLC.

Considering the fact that the petitioner had claimed Rs.80,000 per acre and the respondents agreed to settle Rs.30,000 per acre, this Court fixed fifty-fifty liability for farmers and NLA and decided to fix Rs.40,000 per acre, for the damages caused to standing crops. "...which would be reasonable and to mitigate the circumstances," opined the court. 

Accordingly, court ordered that the affected farmers/petitioners will be at liberty to approach the Office of the Special Tahsildar-II, Land Acquisition, Neyveli Lignite Corporation Limited, who in turn in coordination with the Authorities of the Neyveli Lignite Corporation will settle the compensation as directed by the court. 

Case Title: Murugan v State of Tamil Nadu and others