Acc Limited v. State Of Tamilnadu Represented By Its Secretary
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated : 28.01.2026
CORAM
THE HONOURABLE Ms. JUSTICE P.T. ASHA W.P.No. 8619 of 2025 & W.M.P.Nos. 9639 & 9641 of 2025 ACC Limited Represented by its Plant Manager Mr.Suresh Nagur Madukkarai Cement Works P.O. Madukarai Coimbatore - 641 105
...Petitioner
Vs.
1. State of Tamil Nadu Represented by its Secretary Industries Department Fort St. George Chennai - 600 009.
2. The Commissioner of Geology and Mining Department of Geology and Mining Government of Tamil Nadu Guindy Chennai - 600 32 1/7
3. The District Collector Office of the District Collector District Collectorate Coimbatore
4. The Assistant Director Department of Geology and Mining Coimbatore - 8
5. The Tahsildar Coimbatore South Taluk Office Coimbatore
...Respondents
Prayer: Writ Petition is filed under Section 226 of the Constitution of India for issue of Writ of Certiorari, to call for the records of the 3rd respondent pertaining to impugned order in Na.Ka.No.291/2012/X-1 dated 12.12.2024 directing the petitioner to pay a sum of Rs.91,53,76,114/- as consolidated Annual Compensation for the period 2019 - 2020 to 2023 - 2024 and quash the same. For Petitioner :
Mr. Srinath Sridevan Senior Counsel For Mr. A.R.Ramanathan For Respondents :
Mr. Stalin Abimanyu Additional Government Pleader.
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O R D E R
This writ petition is filed for the following relief: "To call for the records of the 3rd respondent pertaining to impugned order in Na.Ka.No.291/2012/X-1 dated 12.12.2024 directing the petitioner to pay a sum of Rs.91,53,76,114/- as consolidated Annual Compensation for the period 2019 - 2020 to 2023 - 2024 and quash the same."
2. The issue of computation of compensation has been considered by the Division Bench of this Court in a batch of writ appeals in WA.Nos.1228 of 2023 etc. batch dated 10.09.2025. After extracting the arguments, various provisions of the Mines and Minerals (Development and Regulation) Act and Mineral Concession Rules as also the various Government Orders and Circular, the Division Bench ultimately held that the demand notices were arbitrary, unilateral and incorrect and had quashed the said demands.
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3. The Division Bench has observed as follows: "73.The above notice is incorrect for so many reasons:
(i) It seeks to raise a demand in respect of a period close to 17 years. Even if there were no limitation provided for raising of a demand, it is necessary that some reasonable time frame be adhered to when a demand is raised. This is a settled position of law which has been given a go-by in the present cases.
(ii) The basis of the demand is guideline value of adjacent patta lands, which is contrary to the stipulation under Rules 72(2) and 72(3).
(iii) The classification of the lands does not appear to have taken note of the requirements under Rule 72(2) and 72(3).
(iv) The demand comes under the head 'estimated amount from 01.04.1997 to 31.03.2014'. It baffles the Court as to how a statutory demand, which is what the notice purports to raise, can be raised on an estimated basis.
(v) No opportunity has been granted to the noticees calling for their response or for any particulars prior to the issuance of these demands.
74. The impugned demands, are also, for the above reasons, arbitrary, unilateral and incorrect in law, and we 4/7
quash the same. Consequently, attachments, if any, will stand raised.
75. In light of the above detailed discussion, the Writ Appeals and the Writ Petitions are allowed. No costs. Connected Miscellaneous Petitions are closed."
4. The facts and the dicta laid down in the above judgement would squarely apply to the facts of the present case.
5. Accordingly, this writ petition is allowed in line with the judgement passed in W.A.Nos.1228 of 2023 etc. batch dated 10.09.2025. Consequently, the connected miscellaneous petitions are closed. No costs.
28.01.2026 kan 5/7
To
1. State of Tamil Nadu Represented by its Secretary Industries Department Fort St. George Chennai - 600 009.
2. The Commissioner of Geology and Mining Department of Geology and Mining Government of Tamil Nadu Guindy Chennai - 600 32
3. The District Collector Office of the District Collector District Collectorate Coimbatore
4. The Assistant Director Department of Geology and Mining Coimbatore - 8
5. The Tahsildar Coimbatore South Taluk Office Coimbatore 6/7
P.T. ASHA, J kan 28.01.2026 7/7