T. Udaykumar vs Ravichandran And Ors
- Neutral2025 INSC 510
Ratio decidendi
The rule this decision rests on
Where land has been lawfully acquired by a statutory authority under compulsory acquisition proceedings, a subsequent ratification deed executed by persons who were not owners of the land at the time of acquisition carries no legal weight to divest the statutory authority of its ownership or to confer title upon the ratifying parties. A clerical error in the quantification of acquired land (stating 4.05 acres instead of 4.95 acres) in a compulsory acquisition order does not vitiate the acquisition or the authority's title, and may be corrected by reference to the compensation awarded, which reflects the true extent acquired. Where a statutory authority has permitted unauthorized occupation and construction on land it lawfully acquired, and innocent third parties have purchased constructed flats in good faith and completed their transactions before the authority asserts its title, the court may, in the exercise of equitable jurisdiction and to balance competing interests, permit such third-party purchasers to retain ownership of the flats while treating payments made as consideration for the land, notwithstanding the authority's legal entitlement to the underlying property. An allotment or sale of property executed in breach of an interim order of the Supreme Court, after the order was passed and after the breach was made apparent to the court, will not be recognized, and the purchasers' remedies lie only in contract against the party who received their payments.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE SUPREME COURT OF INDIA 2025 INSC 510
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NOS. 5414-5415/2010
T. UDAYKUMAR ..... APPELLANT(S)
VERSUS
RAVICHANDRAN AND ORS. ..... RESPONDENT(S)
WITH
CIVIL APPEAL NOS. 5420-5422/2010
CIVIL APPEAL NOS. 5423-5425/2010
CIVIL APPEAL NOS. 5444-5445/2010
CIVIL APPEAL NO. 5437/2010
O R D E R
Having heard the learned counsel for the parties at some
length, we do not find any good ground and reason to interfere with
the reasoning of the High Court and the findings recorded with
regard to the acquisition of the land whereupon the Tamil Nadu
Housing Board1 became the owner of the subject extent of 0.90 cents
of land located in Survey No. 297/1 of Kodambakkam Village,
Mambalam, Guindy Taluk, Chennai.
2. Signature Not Verified We would like to add that the confusion has probably arisen Digitally signed by babita pandey Date: 2025.04.17 on 19:25:26 IST Reason: account of the incorrect mention of the total area of the
1 For short, “TNHB”.
1 acquired land in the order/judgment dated 13.03.1981 passed in
CROP. No. 145/1976. In this order, by mistake, the extent of land
has been written as 4.05 acres instead of 4.95 acres. It is clear
to us, as the awarded compensation mentioned in the order dated
13.03.1981 is ₹62,209.82 (Rupees sixty two thousand three hundred
nine and ninety two paisa only), the figure which matches with the
amount of compensation payable to the then owners, S. Velu Mudaliar
and Rajalakshmi Ammal.
3. Reliance placed by the appellant, T. Udaykumar, on the
Ratification Deed dated 19.01.2004, in our opinion, does not carry
weight because what was ratified thereunder were the sale deeds
executed in the year 1996. This will be of no consequence, as the
sellers were not the owners of the land in question.
4. This is so, once we reject the argument that the land
acquired was not 4.05 acres. In fact, as held above, the total land
acquired was 4.95 acres. We agree with the findings recorded by
the Division Bench of the High Court with regard to the letter
dated 19.01.2001, which has not been accepted.
5. Nevertheless, we must comment that the TNHB is also not
blameless, as it not only allowed the land in question to be
occupied but even gave permission for construction, as a result of
which several flats were constructed, and as many as 54 flats have
been sold to third parties, some of whom were impleaded as
respondent Nos. 12 to 64 before the High Court.
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6. In fact, the Revenue authority, obviously with the knowledge
of the TNHB, had issued Patta dated 10.06.2004 in the name of the
predecessors from whom, the appellant, T. Udaykumar, had purchased
the property. This Patta was cancelled on 15.06.2006. We uphold
the cancellation of the Patta dated 10.06.2004. Patta was also
issued in favour of the appellant, T. Udaykumar, after he had
purchased the rights from the erstwhile Patta holder, which too has
been cancelled by the cancellation deed dated 15.06.2006.
7. This Court, while issuing notice in the present appeals, vide
order dated 02.11.2007, had directed that the appellant, T.
Udaykumar, shall deposit ₹5 crores within six weeks with the TNHB,
without prejudice to his rights and contentions. This Court had
also directed that, out of 58 flats constructed in the disputed
properties, 54 of which were allotted to the purchasers, who had
also filed appeals before this Court, they would be permitted to
occupy the flats, subject to the condition that they would
undertake to abide by the result of the appeals, and would not
alienate or part with the possession of the respective flat(s).
Another direction given by the same order was that the remaining
four flats, which had not yet been allotted, should remain with the
appellant, T. Udaykumar.
8. It is apparent that the appellant, T. Udaykumar, in violation
of the order passed by this Court, allotted two out of the four
flats to C.S. Jayaraman and Kalavalli Selvaraj. On a pointed
3 question being put, it is accepted that payments for these two
flats were received after the judgment of the High Court dated
05.10.2007 and the order of this Court dated 02.11.2007. We,
therefore, reject the prayer for allotment of these two flats to
the legal representatives or successors-in-interest of C.S.
Jayaraman and Kalavalli Selvaraj. However, they are be at liberty
to enforce their rights and claims against the appellant, T.
Udaykumar, in accordance with law.
9. To balance out equities and keeping in view the fact that the
TNHB itself is partly responsible for this imbroglio, and in order
to protect the interests of innocent flat buyers whose transactions
were completed long ago, we permit the said 54 flat buyers to
continue to occupy and use their flats. They will be treated as
absolute owners thereof. The sum of ₹5 crores deposited by the
appellant, T. Udaykumar, shall be treated as sale consideration
paid to the TNHB for the land on which the flats have been
constructed.
10. In addition, the TNHB will be entitled to sell the remaining
four flats, which have not yet been transferred and sold.
11. We are informed that there may be more flats, which have been
constructed in the property. It will be open to the TNHB to deal
with the said flats and the remaining land, if any, in the manner
it deems appropriate.
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12. We also make it clear that we have not pronounced on or
examined the question of the rights/claims, if any, of the
appellant, T. Udaykumar, against the persons who had sold or
transferred the land to him.
13. Recording the aforesaid and on the above terms, the appeals
are disposed of.
14. Pending application(s), if any, shall stand disposed of.
..................CJI.
(SANJIV KHANNA)
..................J. (SANJAY KUMAR) NEW DELHI;
MARCH 27, 2025.
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