Supreme Court Bars Landowners From Claiming Statutory Benefits After Voluntary Settlement

The Supreme Court held that landowners who voluntarily accepted negotiated compensation under Sections 7(2) and 7(4) of the Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997 could not later invoke statutory remedies to claim additional benefits, including interest under Section 12.

The Court ruled that once parties entered into a binding settlement covering all dues, the contractual terms superseded statutory entitlements, leaving no scope to reopen claims after accepting payment without protest.

The Court found the Madras High Court erred in permitting reliance on Section 12 despite a concluded agreement. The Supreme Court allowed the State’s appeal and restored the settled compensation package.

[The Government of Tamil Nadu v P.R. Jaganathan & Ors.]