Supreme Court invalidates installment land compensation provision, upholds Tamil Nadu land welfare and slum clearance laws.

The Supreme Court upheld the constitutionality of the Tamil Nadu Acquisition of Land for Harijan Welfare Schemes Act, 1978, except for the provision allowing payment of compensation in instalments under Section 11(1), which was deemed unreasonable and violative of Article 14. The Court set aside the High Court's judgment, declaring the Act valid but striking down the installment payment provision. The appeals related to similar judgments were also dismissed, and the relevant provisions of the Tamil Nadu Slum Clearance Act were upheld as constitutional. Each party was directed to bear its own costs.

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Issues Involved:
1. Constitutionality of the Tamil Nadu Acquisition of Land for Harijan Welfare Schemes Act, 1978.
2. Applicability of Articles 14, 19, and 300A of the Constitution.
3. Protection under Articles 31-A and 31-C of the Constitution.
4. Provisions for compensation and payment in instalments.

Summary:

Constitutionality of the Act:
The Supreme Court reviewed the Tamil Nadu Acquisition of Land for Harijan Welfare Schemes Act, 1978, which was previously struck down by the High Court of Madras as being ultravirus the Constitution of India. The High Court found the Act violative of Articles 14, 19, and 300A and not protected by Articles 31-A or 31-C.

Applicability of Articles 14, 19, and 300A:
The appellants argued that the Act was not violative of Articles 14, 19, or 300A and was protected by Article 31-A. The respondents contended that the Act was discriminatory and harsher compared to the Land Acquisition Act, 1894. The Supreme Court examined whether the Act was arbitrary or unreasonable under Article 14 and found that the provisions of the Act were not unreasonable or arbitrary.

Protection under Articles 31-A and 31-C:
The Act contained a declaration u/s 2 that it was enacted to give effect to the policy of the State towards securing the principles laid down in Part IV, particularly Article 46 of the Constitution. The Supreme Court found it unnecessary to consider the protection under Article 31-C since the Act, except for the provision regarding instalments, was not violative of Article 14.

Provisions for Compensation and Payment in Instalments:
The Act provided for the acquisition of land by the District Collector, vesting of land in the government free from encumbrances, and determination of compensation based on market value. However, Section 11(1) of the Act, which allowed payment of compensation in instalments, was found to be unreasonable and violative of Article 14. The Supreme Court struck down the provision for payment in instalments, stating that compensation should be paid in a lump sum.

Conclusion:
The Supreme Court allowed the appeal in part, setting aside the judgment and order of the High Court. The Tamil Nadu Acquisition of Land for Harijan Welfare Schemes Act, 1978, was held to be intra vires the Constitution, except for the provision in Section 11(1) regarding payment of compensation in instalments. The relevant part of Section 11(1) was declared ultra vires the Constitution. The appeals arising from similar judgments were also set aside, and the provisions of Chapter VI of the Tamil Nadu Slum Clearance Act were held to be intra vires the Constitution. Each party was ordered to bear its own costs.

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