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Supreme Court of India

PRADHAN BABU AND OTHERSversusNACHIMUTHU NAGAR KUDIYIRUPPOR NALA SANGAM AND OTHERS

Citation
2024 INSC 1047
Decided
28 August 2024
Disposal
Appeal(s) allowed

Holding

The land was deemed released from public‑purpose reservation under Section 38(b) of the Tamil Nadu Town and Country Planning Act, the original owner retained title and could lawfully transfer it, and the respondents’ suit lacked any cause of action.

Summary

The dispute concerned a 11,200 sq ft parcel in Nachimuthu Nagar that was earmarked for public purpose in a layout plan approved in 1978 and revised in 1981 under the Tamil Nadu Town and Country Planning Act. After the original owner, Nachimuthu Mudaliar, died in 2004, his heirs sold the land to the appellants in 2009 and subsequent deeds transferred portions to various appellants. The respondents, office-bearers of the resident welfare association, sued for a permanent injunction to stop construction, alleging the land remained subject to public‑purpose reservation. The Supreme Court examined Sections 36‑39 of the Act and held that because no acquisition declaration or agreement was made within three years of the layout notification, the land was released from reservation under Section 38(b), leaving the original owner free to transfer title. Consequently, the suit had no viable cause of action and the First Appellate Court’s dismissal was affirmed. The Court set aside the trial and High Court judgments and restored the First Appellate Court’s order.

Issues considered

  • Whether land earmarked for public purpose under the Tamil Nadu Town and Country Planning Act, 1972, becomes released from reservation after the lapse of the three‑year period prescribed in Section 38(b).
  • Whether the original owner retained title and could validly transfer the suit property in 2009 despite its earlier reservation.
  • Whether the respondents’ suit for permanent injunction was maintainable in view of the release of the land from reservation.

Legislation cited

Headnote

Issue for Consideration Whether the suit land was under any sort of legal encumbrance so as to make it unfit for transfer of right, title and interest thereon in light of the Layout Plan notified by the Deputy Director, Town and Country Planning, Thanjavur region in the revised in the year 1981. Headnotes† Tamil Nadu Town and Country Planning Act, 1972 – ss.37 and 38 – For a creation of a Nagar various plots were formed by one N – In a Layout plan, a portion of land was earmarked for public purpose for welfare of the residents –

Subjects

Layout planLand earmarked for public purposeMixed residential areaTitleInterest in propertySuitPermanent injunctionConstruction on landPower to acquire land under the Land AcquisitionPower to purchase or acquire lands specified in development plan

Judgment

                [2024] 8 S.C.R. 1673 : 2024 INSC 1047

              Pradhan Babu and Others
                          v.
 Nachimuthu Nagar Kudiyiruppor Nala Sangam and Others
                        (Civil Appeal No. 5875 of 2023)
                                 28 August 2024
           [Vikram Nath and Ahsanuddin Amanullah,* JJ.]


                            Issue for Consideration
       Whether the suit land was under any sort of legal encumbrance
       so as to make it unfit for transfer of right, title and interest thereon
       in light of the Layout Plan notified by the Deputy Director, Town
       and Country Planning, Thanjavur region in the year 1978 and later
       revised in the year 1981.

                                    Headnotes†
       Tamil Nadu Town and Country Planning Act, 1972 – ss.37 and
       38 – For a creation of a Nagar various plots were formed by
       one N – In a Layout plan, a portion of land was earmarked for
       public purpose for welfare of the residents – That earmarked
       site is the suit land/property – N died on 29.04.2004 – Appellants
       case that after the death of N, the suit property was sold by
       his legal heirs to appellants – The cause of action arose when
       appellant no.1 started construction of a building on the suit
       property – Respondents no.1 and 2/original plaintiffs are the
       office-bearers of the Resident Welfare Association, who filed
       suit and sought relief of permanent injunction, restraining
       the defendants from encroaching upon the suit property
       and putting up construction – Trial Court decreed suit – The
       First Appellate Court dismissed the suit – However, the High
       Court restored the judgment and decree of the Trial Court –
       Correctness:
       Held: In the case at hand, although the Layout (originally 1978
       and revised in 1981) shows that it has been earmarked for a
       public purpose – However, admittedly, nothing happened thereafter
       in terms of Section 37 of the Act, namely, neither was the land
       acquired under land acquisition laws nor any agreement was made
       with the person(s)/owners – Neither the State Government nor
* Author
1674                                                          [2024] 8 S.C.R.

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    Respondent no.3 acted to takeover or gain ownership of the suit
    property – No steps were taken either by the planning authority
    or the State Government to acquire the land which as per the Act
    was required to be done within 3 years from publication – This
    apart, ultimately in the year 2005, the Layout itself was revised
    showing it as a mixed residential area – Be that as it may, on the
    core issue, the original owner of the suit property, never lost right,
    title, interest and usage therein – The deeming provision under
    Section 38(b) of the Act would operate to release the suit property,
    as the 3-year period would have lapsed, latest in 1984, counted
    from the year of revision i.e., 1981, after the initial Layout in the
    year 1978 – The original owner, thus, was competent in law to
    transfer the suit property to any other person on 20.04.2009 (date
    of the first Sale Deed) – Thus, the suit filed by the respondents
    had absolutely no cause of action evincible from a reading of the
    plaint – The First Appellate Court rightly interfered and dismissed
    the suit – The reasoning given by the Trial Court as well as the
    High Court, is erroneous, and cannot be sustained. [Paras 22, 24]

                             Case Law Cited
    Pillayar P.K.V.K.N. Trust v. Karpaga N.N.U.S. [2010] 11 SCR 1 :
    (2010) 9 SCC 344 – referred to.

                                List of Acts
    Tamil Nadu Town and Country Planning Act, 1972; Constitution
    of India.

                             List of Keywords
    Layout plan; Land earmarked for public purpose; Mixed residential
    area; Title; Interest in property; Suit; Permanent injunction;
    Construction on land; Power to acquire land under the Land
    Acquisition; Power to purchase or acquire lands specified in
    development plan.

                            Case Arising From
    CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5875 of 2023
    From the Judgment and Order dated 24.01.2022 of the High Court
    of Judicature at Madras in SA No. 794 of 2019
[2024] 8 S.C.R.                                                        1675

                    Pradhan Babu and Others v.
       Nachimuthu Nagar Kudiyiruppor Nala Sangam and Others

                         Appearances for Parties
     R Nedumaran, Sr. Adv., Beno Bencigar, Parijat Kishore, Advs. for
     the Appellants.
     T. Harish Kumar, Navneet Dugar, Subham Kothari, Bharathi
     Subramaniayan, V Balachandran, Siddharth Naidu, M/S. Ksn &
     Co., Advs. for the Respondents.

                Judgment / Order of the Supreme Court

                                   Order

     Ahsanuddin Amanullah, J.

     Heard learned counsel for the parties.
2.   The present appeal arises from the Final Judgment and Order
     dated 24.01.2022 (hereinafter referred to as the “Impugned Order”),
     passed by a learned Single Judge of the High Court of Judicature at
     Madras (hereinafter referred to as the “High Court”) in S.A. No.794
     of 2019, whereby the appeal filed by the respondents was allowed
     setting aside Judgment and Decree dated 25.04.2019 passed in A.S.
     No.71 of 2017 on the file of the Principal Sub-Court, Mayiladuthurai
     (hereinafter referred to as the “First Appellate Court”) and confirming
     Judgment and Decree, dated 13.09.2017, passed in O.S. No.265 of
     2013 (hereinafter referred to as the “suit”) on the file of the Principal
     District Munsif Court, Mayiladuthurai (hereinafter referred to as the
     “Trial Court”).

     A FACTUAL APPRECIATION:
3.   For the creation of Nachimuthu Nagar, plots were formed in T.S.
     No.1000/1, & 2, 1002, 1003/1 & 2, 1004 of Thirumanjanaveethi,
     Koorainadu, Mayiladuthurai Town by one Nachimuthu Mudaliar. This
     was approved by the Regional Deputy Director of Town Planning,
     Thanjai, Trichy and the Municipal Commissioner, Mayiladuthurai.
     The layout was approved in 1978 and later revised in 1981. In the
     Layout, a portion was earmarked for public purpose for the welfare
     of the residents of Nachimuthu Nagar. That earmarked site is the
     suit land/property admeasuring 11200 square feet.
1676                                                                             [2024] 8 S.C.R.

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4.    It is the case of the appellants that Nachimuthu Mudaliar died on
      29.04.2004 and the suit property was sold by his legal heirs through
      a Sale Deed on 20.04.2009 to the Appellants No.6-10. Thereafter,
      vide an Exchange Deed dated 27.03.2013, Appellants no.4 & 5
      (parents of Appellant no.1) were put in possession of a total area of
      6145 square feet of the suit property. On the same day, through a
      Sale Deed, the Appellants no.2 & 3 (brother and father-in-law of the
      Appellant no.1, respectively) purchased the remaining 5055 square
      feet in the suit property. The cause of action is said to have arisen
      in October 2013, when Appellant no.1 made clear his intention of
      constructing a building on the suit property.
5.    Respondents no.1 and 2 are the office-bearers of Nachimuthu
      Nagar Resident Welfare Association (hereinafter referred to as
      the “Society”), which is registered with the District Registrar,
      Mayiladuthurai. They are the original plaintiffs in the suit, which was
      originally filed against Appellant No.1 (later on, Appellants no.2-10
      were impleaded1 in the suit). The suit sought the grant of “relief of
      permanent injunction, restraining the defendants, their men, from
      in any manner, encroaching upon the suit property and put up any
      construction or disturbing in any manner.” (sic).
6.    The Trial Court, after hearing the parties and perusing the evidence
      on record, noted that permission should have been obtained from
      the Joint Director for changing the public purpose site and to sell the
      same, in the manner in which approval was obtained for Nachimuthu
      Nagar layout. In the absence of such permission, the legal heirs of
      Nachimuthu Mudaliar did not have a right to change the character
      of the suit property. Further, it was noted that the Family Partition
      Deed dated 31.07.1980, on the basis of which Sale Deed dated
      20.04.2009 was created, was not produced before the court. The Trial
      Court opined, hence, that the Sale Deed 20.04.2009 was not legally
      proved. Consequently, the subsequent Sale Deed and Exchange
      Deed (mentioned supra) made in favour of the appellants was also
      held not to have been proved. On this basis, the Trial Court decreed



1    Appellant nos.2-5 were impleaded vide Order of the Trial Court dated 21.02.2014. Appellant nos.6-10
     were impleaded vide Order of the Trial Court dated 17.12.2014.
[2024] 8 S.C.R.                                                      1677

                    Pradhan Babu and Others v.
       Nachimuthu Nagar Kudiyiruppor Nala Sangam and Others

     the suit and granted permanent injunction against the appellants,
     as was sought.
7.   Aggrieved by the decision of the Trial Court, the appellants filed
     an appeal viz. A.S. No.71 of 2017 before the First Appellate Court.
     On consideration of the issues that fell before it, the First Appellate
     Court allowed the appeal and dismissed the suit of the respondents.
     While doing so, it was noted that though the suit property was
     reserved for public purpose, since it was neither in the possession
     of the respondents or the Municipal Authority nor was it seized, the
     character of the suit property was not maintained as such. Further,
     on perusal of the documentary evidence produced before it, the First
     Appellate Court took the view that transfer of title had taken place
     in favour of the appellants and the suit was bad for non-joinder of
     necessary parties and in the absence of a prayer for declaration.
8.   Against the decision rendered by the First Appellate Court, the
     respondents preferred a second appeal, namely S.A. No.794 of 2019
     before the High Court, which was allowed vide the Impugned Order
     and the Judgment and Decree of the Trial Court dated 13.09.2017
     was restored.

     SUBMISSIONS BY THE APPELLANTS:
9.   At the outset, learned senior counsel for the Appellants submitted
     that the High Court fell in error in reversing the well-reasoned order
     of the First Appellate Court and holding that, in the absence of
     permission under Section 38 of the Tamil Nadu Town and Country
     Planning Act, 1972 (hereinafter referred to as the “Act”), the Sale
     Deed made by the legal heirs of Nachimuthu Mudaliar would be illegal,
     without correct appreciation of the provision in its true sense. It was
     contended that under the said provision, if the land which is reserved
     for Public Purpose is not utilized/acquired by the Government within
     3 years of the reservation, the same stands released automatically
     from reservation.
10. It was submitted that the suit property in the present case was
    reserved for ‘public purpose’ in the year 1978 in the Layout,
    which reservation was continued in the year 1981. However, since
    thereafter, no steps were taken by the Municipality for putting up the
1678                                                       [2024] 8 S.C.R.

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     suit property for public purpose and in fact, the said land was lying
     as vacant land, for which the owners were paying tax also. It was
     urged that as such, by virtue of Section 38(b) of the Act, the suit
     property is deemed to be released from the Development Plan of the
     Municipal Council and there is no question for the owners to obtain
     any permission before selling the suit property. It was submitted that
     the above provision came into force even before the notifying of the
     Master Development Plan for Mayiladuthurai Municipality; later the
     modified Master Development Plan for Mayiladuthurai Municipality,
     which was notified by the State Government in GO(Ms) No.100
     issued by the Housing and Urban Development Department dated
     21.03.2005.
11. It was argued that in the present case, the suit property has not
    acquired the character of public property so as to be owned by
    all the public of Nachimuthu Nagar but the same was reserved for
    “Public Purpose” in the Layout Plan by the Municipality. As such
    the ownership of the property always remained with the family of
    Nachimuthu Mudaliar and they always had the right to sell the same,
    after the suit property was deemed to be released under Section
    38(b) of the Act. It was contended that seeking permission is a
    mere administrative act and seeking such permission is not made
    mandatory by the Act.
12. Next, it was submitted that Section 38 of the Act is a directory
    provision and not obtaining previous permission of the Municipal
    Authorities would not render the Sale Deeds in question invalid. Since,
    no consequence is provided in Section 38 or any other provision in
    the Act to treat the transaction in violation of Section 38 as void, the
    transfer in favour of Appellants no.2 to 10 cannot be regarded as
    ineffective or invalid. Such a transfer would at best be voidable, that
    too only at the instance of the Municipality concerned and none else.
13. It was submitted that respondents have no right or interest in the
    suit property as the same is still a private property in the hand of
    the original owners, even though reserved for Public Purpose at one
    point of time. And admittedly, till date the suit property was/is not
    utilised for Public Purpose (even after a lapse of more than 30 years)
    by the Municipality concerned. Therefore, reservation in respect of
    the same stood lapsed long back in terms of Section 38 of the Act.
[2024] 8 S.C.R.                                                                                  1679

                     Pradhan Babu and Others v.
        Nachimuthu Nagar Kudiyiruppor Nala Sangam and Others

     It was pointed out that undisputed possession and enjoyment of the
     suit property, based on registered documents, for over three and
     a half decades had remained with the appellant(s) concerned and
     their predecessors-in-title, and they had acquired rights thereupon
     by way of adverse possession. Thus, the claim made by a newly-
     formed Society [Respondents no.1 and 2] after 35 years is barred
     by limitation.
14. It was further submitted that the suit filed by the original plaintiffs/
    respondents without seeking the relief of declaration as to title is
    not maintainable in view of the fact that the suit property is not a
    public property, but a private property reserved for public purpose
    whose character has changed over the years. The further contention
    was that the suit filed by the original plaintiffs/respondents is not
    with bonafide intention which is evident from the fact that the
    sangam-society was formed just prior to the filing of the suit and that
    too without following the requisite procedure. For all these reasons,
    the learned senior counsel prayed for allowing the appeal and sought
    setting aside of the Impugned Order.

     SUBMISSIONS BY RESPONDENTS NO.1 AND 2/SOCIETY:
15. Learned counsel for the Society began by submitting that there is no
    question of law, much less, a substantial question of law involved in
    the present case under Article 1362 of the Constitution of India and
    therefore the appeal is liable to be dismissed in limine. He submitted
    that the Trial Court has given a just, fair and cogent judgment based
    on reliable evidence, which has been affirmed by the High Court,
    and as such, does not require interference by this Court.
16. It was submitted that the Act provides for planning the development
    and use of rural and urban land in the State of Tamil Nadu and for
    purposes connected therewith. The suit property was part of the
    Housing Layout and it was earmarked for public purpose when the
    Layout was formed in 1978 or when it was revised in 1981. The


2   ‘136. Special leave to appeal by the Supreme Court.—(1) Notwithstanding anything in this Chapter,
    the Supreme Court may, in its discretion, grant special leave to appeal from any judgment, decree,
    determination, sentence or order in any cause or matter passed or made by any court or tribunal in the
    territory of India.
    (2) Nothing in clause (1) shall apply to any judgment, determination, sentence or order passed or made
    by any court or tribunal constituted by or under any law relating to the Armed Forces.’
1680                                                      [2024] 8 S.C.R.

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     land was not acquired as required under the Act and Section 38
     of the Act is not applicable to the suit property, submitted learned
     counsel.
17. It was canvassed that once, as per the Layout Plan, the area is
    notified as being for public purpose while forming the Layout, the
    same cannot be converted into personal property. It was contended
    that the suit property is not acquired by the Government under the Act
    and therefore the provisions in the Act cannot be invoked in respect
    of Nachimuthu Nagar. The Act will apply in a case where acquisition
    is made, and property is kept vacant without construction. Therefore,
    the Trial Court and High Court correctly appreciated the distinction
    and decreed the suit as prayed for. Learned counsel prayed for the
    dismissal of the appeal.

     RE RESPONDENT NO.3/THE MUNICIPALITY:
18. Respondent no.3 was impleaded under our Order dated 16.05.2024
    for a limited purpose. In view of the discussion infra, nothing more
    needs to be noted.

     ANALYSIS, REASONING AND CONCLUSION:
19. Having given our anxious thought to the lis, after perusing the
    materials and in view of the submissions advanced, we find that
    the moot question involved is whether the suit land was under any
    sort of legal encumbrance so as to make it unfit for transfer of right,
    title and interest thereon in light of the Layout Plan notified by the
    Deputy Director, Town and Country Planning, Thanjavur region in
    the year 1978 and later revised in the year 1981.
20. On this, the admitted fact is that at the time when the Layout Plan
    was originally notified in the year 1978, the suit property reflected
    as being in private hands as per the record of the land registry, not
    belonging to the State Government nor to the Municipality/Respondent
    no.3. At the relevant time i.e., in 1978, only the intention of the
    competent authority under the relevant statute was discernible that
    it had formed an opinion with regard to the suit land/property being
    required to be kept reserved for ‘public purpose’. It would be useful
    to extract Chapter IV of the Act containing Sections 36 to 39 titled
    ‘Acquisition and Disposal of Land’:
[2024] 8 S.C.R.                                                           1681

                    Pradhan Babu and Others v.
       Nachimuthu Nagar Kudiyiruppor Nala Sangam and Others

           ‘36. Power to acquire land under the Land Acquisition
           Act.—Any land required, reserved or designated in a
           regional plan, master plan, detailed development plan or
           a new town development plan, as the case may be, shall
           be deemed to be land needed for a public purpose within
           the meaning of the Land Acquisition Act, 1894 (Act 1 of
           1894) and may be acquired under the said Act as modified
           in the manner provided in this Act.
           37. Power to purchase or acquire lands specified
           in development plan.—(1) Where after the publication
           of the notice in the Tamil Nadu Government Gazette of
           preparation of a regional plan, master plan, detailed
           development plan or a new town development plan,
           as the case may be, any land is required, reserved or
           designated in such plan the appropriate planning authority
           may, either enter into agreement with any person for the
           acquisition from him by purchase of any land which may
           be acquired under Section 36 or make an application to
           the Government for acquiring such land under the Land
           Acquisition Act, 1894 (Act 1 of 1894):
           Provided that if the value of such land exceeds fifty
           thousand rupees, the appropriate planning authority shall
           not enter into such agreement without the previous approval
           of the Government.
           (2) On receipt of an application made under sub-section
           (1), if the Government are satisfied that the land specified
           in the application is needed for the public purpose specified
           therein, they may make a declaration to that effect in
           the Tamil Nadu Government Gazette, in the manner
           provided in Section 6 of the Land Acquisition Act, 1894
           (Act 1 of 1894), in respect of the said land. The declaration
           so published shall notwithstanding anything contained in
           the said Act, be deemed to be a declaration duly made
           under the said Section 6 of the said Act:
           Provided that no such declaration in respect of any
           particular land covered by a notice under Section 26 or
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        Section 27 shall be made after the expiry of three years
        from the date of such notice.
        (3) On the publication of such declaration, the Collector
        of the district within whose jurisdiction the land is situate
        shall proceed to take order for the acquisition of such
        land under the said Act; and the provisions of that Act
        shall, so far as may be apply to the acquisition, of the
        said land, with the modification that the market value
        of the land shall be the market value prevailing on the
        date of the publication of the notice in the Tamil Nadu
        Government Gazette under Section 26 or Section 27, as
        the case may be.
        38. Release of land.—If within three years from the date of
        the publication of the notice in the Tamil Nadu Government
        Gazette under Section 26 or Section 27—
        (a) no declaration as provided in sub-section (2) of Section
        37 is published in respect of any land reserved, allotted
        or designated for any purpose specified in a regional
        plan, master plan, detailed development plan or new town
        development plan covered by such notice; or
        (b) such land is not acquired by agreement such land
        shall be deemed to be released from such reservation,
        allotment or designation.
        39. Right to compensation.—(1) Any person whose
        property is injuriously affected by virtue of any of the
        provisions contained in any regional plan, master plan,
        detailed development plan or a new town development plan
        made under this Act shall, if he prefers a claim for the purpose
        to the Tribunal with such particulars and within such period
        as may be prescribed, be entitled to obtain compensation
        in respect thereof as determined by the Tribunal:
        Provided that property shall not be deemed to be injuriously
        affected by reason of any of the provisions inserted in any
        development plan which impose any condition or restriction
        in regard to any of the matters specified in clause (f) of
        sub-section (2) of Section 15, or in clauses (k) and (f) of
[2024] 8 S.C.R.                                                          1683

                    Pradhan Babu and Others v.
       Nachimuthu Nagar Kudiyiruppor Nala Sangam and Others

           sub-section (2) of Section 17 or in clauses (m) and (n) of
           sub-section (1) of Section 20, as the case may be.
           (2) If at any time after the day on which any regional
           plan master plan, detailed development plan or a new
           town development plan has come into force, such plan
           is varied, or revoked, any person who has incurred any
           expenditure for the purpose of complying with such plan,
           shall, if he prefers a claim for the purpose to the Tribunal
           with such particulars and within such time as may be
           prescribed, be entitled to obtain compensation in respect
           thereof as determined by the Tribunal, if by reason only of
           the variation or revocation of such plan, such expenditure
           has ceased to be in any way beneficial to him.’
21. A perusal of Chapter IV of the Act brings to the fore the scheme
    thereunder. For the present, we are unbothered by Section 39 of the
    Act. Section 36 of the Act states that any land required, reserved or
    designated in a regional plan, master plan, detailed development plan
    or a new town development plan shall be deemed to be land needed
    for a ‘public purpose’ and can be acquired under the land acquisition
    laws as modified under the Act. Section 37(1) of the Act permits the
    appropriate planning authority to enter into an agreement with a
    person to acquire such land by way of purchase, or to apply to the
    Government for acquisition of such land under the land acquisition
    laws in force. Section 38 of the Act mandates that if, within three
    years from the date of publication in the Tamil Nadu Government
    Gazette under Sections 26 or 27 of the Act, (a) no declaration under
    Section 37(2) is published, or (b) the land in question is not acquired
    by agreement, such land would be deemed released from reservation/
    allotment/designation. At this juncture, we may also examine the
    meaning and scope of the term ‘public purpose’ employed in the
    Act. The relevant definitional clause reads as under:
           ‘2. Definitions.—In this Act, unless the context otherwise
           requires,—
           …
           (36) “public purpose” means any purpose which is useful
           to the public or any class or section of the public;’
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22. The position under the Act is that law permits a planning authority to
    come out with a Layout Plan or a Master Plan for an area in which
    certain area may be reserved for public purposes. Given how our
    cities are fast expanding, the salutary purpose and objective behind
    Section 36 of the Act is obvious. Read with Section 2(36), ‘public
    purpose’ has been given a very wide connotation and could even
    include keeping the identified land as open spaces to act as lungs
    for the city in view of environmental considerations. However, the
    caveat is that though the planning authority can include private land,
    the way ahead to acquire the land, either by way of resort to land
    acquisition laws as modified by the Act or by way of agreement with
    the person(s) concerned [Section 37], but in accordance with the
    procedure as laid out in Chapter IV of the Act. In the case at hand,
    although the Layout (originally 1978 and revised in 1981) shows that
    it has been earmarked for a public purpose. However, admittedly,
    nothing happened thereafter in terms of Section 37 of the Act,
    namely, neither was the land acquired under land acquisition laws
    nor any agreement was made with the person(s)/owners. Neither the
    State Government nor Respondent no.3 acted to takeover or gain
    ownership of the suit property. Clearly, no steps were taken either
    by the planning authority or the State Government to acquire the
    land which as per the Act was required to be done within 3 years
    from publication. This apart, ultimately in the year 2005, the Layout
    itself was revised showing it as a mixed residential area. Be that
    as it may, on the core issue, we find that the original owner of the
    suit property, never lost right, title, interest and usage therein. The
    deeming provision under Section 38(b) of the Act would operate to
    release the suit property, as the 3-year period would have lapsed,
    latest in 1984, counted from the year of revision i.e., 1981, after the
    initial Layout in the year 1978. This Court in Pillayar P K V K N
    Trust v Karpaga N N U S, (2010) 9 SCC 344, in the facts of that
    case, concluded ‘that the land is not acquired by agreement till the
    date of the judgment of the High Court, the deeming clause would
    certainly come into force and, therefore, the land concerned would
    certainly be deemed to have been released.’ The original owner,
    thus, was competent in law to transfer the suit property to any other
    person on 20.04.2009 (date of the first Sale Deed). Obviously, nemo
[2024] 8 S.C.R.                                                     1685

                    Pradhan Babu and Others v.
       Nachimuthu Nagar Kudiyiruppor Nala Sangam and Others

     dat quad non habet3 and any transfer of property would carry with it
     inherently the same restrictions which were existing/passed on to the
     vendor at the time of passing of the title to the concerned vendee.
23. It is not, and has not ever been, the case of the private respondents
    that the appellants, who had originally bought the suit land and later
    transferred it have violated the conditions of the Layouts of the
    years 1978 and 1981 by constructing over it or using it other than
    for a ‘public purpose’. The only cause of action on which the suit
    was filed by the private respondents was that the appellants had
    started construction of the boundary wall. This has been explained
    by the appellants, who have stated that it was for demarcation of
    the land in question and no further construction has been made on
    the suit property. Moving further, even if it is accepted for the sake
    of argument that some of the appellants, who were now claiming
    ownership in their favour by way of Registered Sale Deed(s) in the
    suit property, had made any construction and had started using the
    land, there could, perhaps, be a cause of action for the respondents
    to move before the appropriate forum for preventing such appellants
    from either continuing with the construction or using it for a purpose
    other than ‘public purpose’. The same would then have been required
    to be decided by the appropriate forum after considering what was
    the Layout/Master Plan applicable to the area on the date of such
    consideration and whether the proposed construction or usage was
    in conformity with the Plan operative on such date. However, as we
    are informed, by way of the 2005 Layout, the suit property lies in a
    mixed residential area.
24. Thus, for and upon a totality of reasons aforesaid, we find that the
    suit filed by the respondents had absolutely no cause of action
    evincible from a reading of the plaint. We hold that rightly the First
    Appellate Court interfered and dismissed the suit. The reasoning
    given by the Trial Court as well as the High Court, is erroneous,
    and cannot be sustained. Accordingly, the order of the Trial Court as
    well as the Impugned Order passed by the High Court are set aside.
    The Judgment and Decree of the First Appellate Court is restored.



3   No one can give what they do not possess.
1686                                                   [2024] 8 S.C.R.

                        Digital Supreme Court Reports


25. The appeal is allowed.
26. Parties are left to bear their own costs.
27. Pending applications are closed.


     Result of the case: Appeal allowed.



     †
         Headnotes prepared by: Ankit Gyan


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PRADHAN BABU AND OTHERS versus NACHIMUTHU NAGAR KUDIYIRUPPOR NALA SANGAM AND OTHERS — 2024 INSC 1047 - Legal Desk AI