Land Ownership and Public Purpose: Supreme Court Verdict on Nachimuthu Nagar Dispute

The case of Pradhan Babu & Others v. Nachimuthu Nagar Kudiyiruppor Nala Sangam & Others addresses a long-standing dispute over land ownership and public purpose. The Supreme Court was asked to decide whether a plot reserved for public use in a residential layout could be privately sold decades later, given that the government had not acquired or utilized it within the statutory timeframe.

The dispute centers around land in Nachimuthu Nagar, which was earmarked for public purpose in 1978 but remained unutilized. The legal heirs of the original landowner sold it in 2009, prompting objections from a local welfare association, which sought an injunction against private ownership.

Arguments Presented

Appellants’ Arguments

The appellants contended that:

• Under Section 38 of the Tamil Nadu Town and Country Planning Act, 1972, if land reserved for public use is not acquired within three years, it is automatically released from such designation.
• The government had not taken any steps to acquire or utilize the land since its designation in 1978, meaning the land should have reverted to private ownership.
• The welfare association had no legal right to claim the land as public property, as ownership remained with the heirs of the original owner.

Respondents’ Arguments

The respondents, representing the local welfare association, argued that:

• Land designated for public use in a government-approved layout cannot be privately owned or sold.
• The sale of the land in 2009 was illegal because it was still designated for public purpose.
• The welfare association represented the residents who were entitled to the land for community welfare purposes.

Supreme Court’s Observations

The Supreme Court examined the provisions of the Tamil Nadu Town and Country Planning Act and noted:

• Section 38 clearly states that if the government does not acquire the land within three years of reservation, it is deemed to be released.
• The government had made no efforts to acquire or use the land for public purposes since 1978.
• The local welfare association had no legal standing to claim ownership over the land.

Final Judgment

The Supreme Court ruled that:

• The land was legally owned by the heirs of the original owner and could be sold privately.
• The local welfare association had no legal claim over the land.
• The earlier High Court ruling in favor of the welfare association was incorrect and was overturned.

This judgment reinforces that land designated for public purpose but not acquired within the statutory period cannot be indefinitely reserved and must revert to private ownership if the government fails to act.

Read also: https://judgmentlibrary.com/consumer-rights-in-real-estate-supreme-court-orders-refund-in-omkar-realtors-case/

Petitioner Name: Pradhan Babu & Others.
Respondent Name: Nachimuthu Nagar Kudiyiruppor Nala Sangam & Others.
Judgment By: Justice Vikram Nath, Justice Ahsanuddin Amanullah.
Place Of Incident: Tamil Nadu.
Judgment Date: 27-08-2024.

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