Cultivation Is Going On For Many Years: Madras HC While Directing NLC To Pay ₹40,000 Per Acre As Compensation To Farmers For Damaged Crops
The Madras High Court has directed the NLC (Neyveli Lignite Corporation) to pay Rs. 40,000/- per acre as compensation to the affected farmers with regard to the damaged crops on account that the cultivation is going on for many years.
A Single Bench of Justice S.M. Subramaniam said, “There is no dispute on the legal proposition 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. However, in the present case, peculiarly cultivation is going on for many years and the farmers were also made to believe that it will take long time for the utilisation of the said land by Neyveli Lignite Corporation.”
The Bench considering that the petitioner claimed Rs. 80,000/- per acre and the respondents agreed to settle Rs. 30,000/- per acre, since fixed fifty-fifty liability for farmers and NLC, decided to fix Rs. 40,000/- per acre, for the damages caused to standing crops to mitigate the circumstances.
Advocate K Balu appeared for the Petitioner before the High Court.
In this case, the District Collector, Cuddalore District filed a counter affidavit stating that standing crops in the 264 Hectares of acquired land for which the compensation was duly paid from 2006 to 2013 will not be allowed to be disturbed by the fifth respondent before harvest. However, after harvest, the farmers, who cultivate the acquired land were to hand over the same to NLC. The District Collector stated that no further cultivation shall be permitted beyond the harvest and that the compensation at the rate of Rs. 30,000/- per acre would be paid by the fifth respondent to the concerned occupants whose standing crops were damaged during Paravanar Canal Diversion activities.
In the context of the above counter-affidavit filed by the District Collector, the counsel for the petitioner contended that the standing crops were in the advanced stage and nearing cultivation, and thus, the loss quantified by the Government was inappropriate and far less than that of the notional value if fixed in respect of the standing crops. Accordingly, the counsel for the petitioner made a submission that Rs. 80,000/- per acre would be reasonable and it was not in dispute that the subject lands were acquired by the Government by 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 land losers.
The High Court in the above context noted, “Under these circumstances, a test of reasonableness is to be adopted to strike a balance between the facts and the legal position and the fact that the fifth respondent in coordination with the State has come forward to pay compensation for the damages caused to standing crops. This Court could form an opinion that the liability is to be fixed equally on the farmers who trespassed into the acquired land and also on the fifth respondent, who had not taken adequate care to prevent the farmers from cultivating the land for many years.”
The Court observed that the conscious of erstwhile owners know that the land that belonged to them was acquired and they have either received compensation or refused to receive compensation.
“The fifth respondent in coordination with the State Government agreed to pay ex gratia compensation over and above the compensation fixed under the Land Acquisition Act. Therefore, this Court thought fit that 50% liability for the damage caused to standing crops is to be fixed on the farmers side and 50% liability fixed on the side of Neyveli Lignite Corporation, who failed to take effective measures to prevent the farmers from cultivating the lands”, also noted the Court.
The Court further directed the erstwhile landowners not to 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”, added the Court.
Accordingly, the High Court listed the matter for the next hearing on August 7, 2023.
Cause Title- Murugan v. The State of Tamil Nadu
