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The TAMIL NADU SLUM AREAS (IMPROVEMENT AND CLEARANCE ACT,1971)

Tamil Nadu · state statute
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1.THE TAMIL NADU SLUM AREAS 
(IMPROVEMENT AND CLEARANCE) 
ACT, 1971 
 
(ACT NO. XI OF 1971) 
An Act to provide for the improvement and clearance of 
slums in the State of Tamil Nadu. 
 
WHEREAS the number of slums in certain areas in the State of Tamil  Nadu is on  the 
increase and the slums are likely to become a source of danger to public health and sanitation 
of the said area. 
 
AND WHEREAS under the existing law, it has not been possible effectively to arrest 
the growth of slums, to eliminate congestion and to pr ovide for certain basic needs such as 
streets, water -supply and drainage in slums and to clear slums which are unfit for human 
habitation. 
AND WHEREAS to obviate this difficulty, it is expedient to provide for the removal of 
un-hygenic and insanitary condi tions prevailing in slums, for better accommodation and 
improved living conditions for slum dwellers, for the promotion of public health generally and 
for the acquisition of land for the purpose of improving or developing slum areas, re -
developing slum clearance areas and rehabilitating slum dwellers: 
AND WHEREAS it is Directive principle of State Policy embodied in the constitution 
that the State should regard the improvement of public health as among its primary duties. 
Be it enacted by the legislature of the State of Tamil Nadu in the Twenty-second year of 
the Republic of India as follows: 
CHAPTER 1 
PRELIMINARY 
 
1. Short title, extent and commencement: - This Act may be called Tamil Nadu Slum 
Areas (Improvement and Clearance) Act, 1971. 
 
2. It extends to the whole of Tamil Nadu. 
3. It should come in to force on such date as the Government may, by notification, 
appoint and different dates may be appointed for different areas and for different provisions of 
this Act: 
Provided that any reference in any such pr ovision to the commencement of this Act 
shall be construed as a reference to the coming into force of that provision. 
 
 
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2. Definitions.- In this Act, unless the context otherwise requires. 
(a) “Board” means the Tamil Nadu Slum Clearance Board, established u nder                      
section 34;  
(b) “Building” Includes a house, out-house, stable, latrine, shed, hut, wall and any other 
such structure, whether or masonry, bricks, wood, mud, metal or any other materials 
whatsoever, but does not include part or machinery comprised in a building; 
(c) “Court” means- 
(i) in the city of Madras, the Madras City Civil Court; 
(ii) elsewhere, the Subordinate Judge’s Court having jurisdiction and if  
            there is not such Subordinate Judge’s Court, the District Court having  
                          jurisdiction; 
 
(d) “erection” in relation to a building includes extension, alteration or  re-erection; 
(e) “Government” means the State Government;  
(f) ‘land’ includes building and benefits to arise out of land and th ings attached to the 
earth or permanently fastened to anything attached to the earth or permanently fastened to 
anything attached to the earth; 
(g) “occupier” includes- 
(i) any person who for the time being is paying or is liable to pay to the owner the re nt 
or any portion of the rent of the land or building in respect of which such rent is paid or is 
payable; 
(ii) an owner in occupation of, or otherwise using his land or building; 
(iii) a rent-free tenant of any land or building; 
(iv) a licensee in occupation of any land or building; and 
(v) any person who is liable to pay to the owner damages for the use and occupation of 
any land or buildings; 
 (h) “owner” includes any person, who is receiving or is entitled to receive the rent of 
any land or building whether on his own account or on behalf and others or as an agent, trustee, 
executor, administrator, receiver or guardian or who would so receive the rent or be entitled to 
receive the rent, if the land or building were let to a tenant; 
 (i) “person interested” in relation to any land or building, includes any person claiming, 
or entitled to claim, an interest in the compensation payable on account of the acquisition of 
that land or building under this Act; 
 
 
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 (j) “prescribed authority” means any authority or p erson authorized by the Government 
in this regard, by notification; 
 (k) “slum area” means any area declared to be a slum area under sub -section (1) of 
section 3; (1) of section 3; 
 (l) “slum clearance area” means any slum area declared to be a slum cleara nce area 
under section 11;  
 (m) “State Housing Board” means the Tamil Nadu State Housing Board constituted 
under the Tamil Nadu State Housing Board Act, 1961 Tamil Nadu Act XVII of1961); 
 (n) “work of improvement” in relation to any building in a slum are a includes the 
execution of any one or more of the following works, namely:- 
   (i) necessary repairs; 
   (ii) structural alterations; 
   (iii) provision of light points, water-taps and bathing places; 
   (iv) construction of drains, open or covered; 
   (v) provision of latrines, including conversion of dry latrines into 
                                water-borne latrines; 
 
   (vi) provision of additional or improved fixtures or fittings; 
 
   (vii) opening up or paving of Court-yards; 
   (viii) removal of rubbish; and 
   (ix) any other work including the demolition of any building or any part 
there of which in the opinion of the prescribed authority is necessary for executing any of the 
works specified above.  
 
 
 
 
 
 
 
 
 
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CHAPTER II 
DECLARATION OF SLUM AREAS. 
 
 3. Declaration of slum areas.- (1) Where the Government are satisfied that- 
 (a) any area is or may be a source of danger to the health, safety or convenience of the 
public of that area or of its neighborhood, by reason of the area being low -lying, insanitary, 
squalid, overcrowded or otherwise; or  
 (b) the buildings in any area, used or intended to be used for human habitation are- 
  (i) in any respect, unfit for human habitation; or 
  (ii) by reason of dilapidation, over -crowding, faulty arrangement and design of 
such buildings, narrowness or faulty arrangement of streets, lack of ventilation, light or 
sanitation facilities, or any combination of these factors, detrimental to safety, health or morals, 
they may by notification, declare such area to be a slum area. 
 (2) In determining whether a building is unfit for human habitation, for the purposes of 
this Act, regard shall be had to its condition in respect of the following matters, that is to say:- 
(i) repair, 
(ii) stability, 
(iii) freedom from damp, 
(iv) natural light and air. 
(v) water-supply 
(vi) drainage and sanitary conveniences, 
(vii) facilities for storage, preparation and cooking of food and for the  
         disposal of water waste; 
 
and the building shall be deemed to be unfit as aforesaid, if a nd only if it is so defective in one 
or more of the said matters that it is not reasonably suitable for occupation in that condition. 
 
NOTES 
There must be a notification declaring the particular area as slum area under Section 3 and as per Section 11 there  
must be declaration that such area comes under the slum clearance area without following the procedures under 
Section 3 © and 11 (notification and declaration, the Slum Clearance Board has no right to evict. The declaration 
under Section 11 and notification under Section 3 are mandatory. 
1984 (1) M.L.J. page 352 
The State is stopped form pleading the application of any other act with respect to the tenements taken possession 
under this Act. 
1984 (1) M.L.J. 352 
 
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CHAPTER III 
PREVENTION OF GROWTH OF SLUMS. 
 
 4. Registration of buildings- (1) (a) Within the period specified in clause (b) the owner 
or occupier of every building situated in any slum area shall send to the prescribed authority a 
statement in such form as may be prescribed. 
 (b) The statement under clause (a) shall be sent within such period as may be 
prescribed. 
 (2) On receipt of the statement under sub -section (1) the prescribed authority shall, on 
being satisfied about the correctness of the statement, register the building in a register 
maintained for the purpose and containing such particulars as may be prescribed and shall 
issue, in the prescribed form a registration certificate to the owner or occupier of the building. 
NOTES 
The building situated in Slum Area has to be Registered under Section  4 (1). This can be done either by the owner 
or the Occupier. See Rule No.3 and the form Appendix A Registration Certificate is                 Appendix B.  
 5. Restriction on buildings, etc., in slum areas. - (1) The prescribed authority may, by 
notification, direct that no person shall erect any building in a slum area except with the 
previous permission in writing of the prescribed authority. 
        (2) Every notification issued under sub -section (i) shall cease to have effect on the 
expiration of two ye ars from the date thereof except as respect things done or omitted to be 
done before such cesser. 
(3) Every person desiring to obtain permission referred to in sub -section (1) shall make 
an application in writing to the prescribed authority, in such form a nd containing such 
information in respect of the erection of the building to which the application, the prescribed 
authority, after making such enquiry as it considers necessary shall, by order in writing.- 
 (a) either grant the permission subject to such terms and conditions, if any, as may be 
specified in the order; or 
 (b) refuse to grant such permission; 
Provided that before making an order refusing such permission, the applicant shall be given a 
reasonable opportunity to show cause why the permission should not be refused. 
NOTES 
The permission from the Chairman of The Tamil Nadu Slum Clearance Board. See the form in  Appendix C. 
(4) Nothing contained in sub-section (1) shall apply to- 
 (a) any works of improvement required to be executed by a notice unde r sub-section (1) 
of section 6 or in pursuance of an undertaking given under sub-section (2) of Section 9; or 
 (b) the erection of any building in any area in respect of which a notification has been 
issued under sub-section (1) of Section 11. 
 
 
 
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CHAPTER IV 
IMPROVEMENT OF SLUM AREAS 
 
6. Power of prescribed authority to require execution of works of improvement to 
slum areas.- (1) Where the prescribed authority is satisfied that at a reasonable expense. 
  (a) any slum area or any part thereof is capable of be ing improved so as not to 
be a source of danger to the health, safety or convenience of the public of that area; or 
  (b) any building being unfit for human habitation in a slum area can be rendered 
fit for human habitation. 
It may serve upon the owner of the slum area or part thereof or of the building, as the 
case any be, a notice requiring him within such time not being less than sixty days, as may be 
specified in the notice, to execute the works of improvement specified therein: 
Provided that where the owner of the building is different from the owner of the land on 
which the building stands and the works of improvement required to be executed relate to 
provision of water-taps, bathing places, construction of drains, open or covered as the case may 
be, provision of water-borne latrines or removal of rubbish and such works are to be executed 
outside the buildings, the notice shall be served upon the owner of the land. 
(2) In addition to serving a notice under sub -section (1) on the other concerned, the 
prescribed authority may serve a copy of the notice on any other person having an interest in 
the slum area or part thereof or the building or the land on which the building stands, whether 
as lessee, mortgagee or otherwise. 
(3) In determining for the purpose s of this Act, whether at a reasonable expense the 
slum area or part thereof can be improved or the building rendered fit for human habitation, 
regard shall be had to the estimated cost of the works of improvement of the slum area or part 
thereof or of the  works necessary to render the building fit for human habitation and the 
estimated value that the slum area or part thereof or the building will have when such works are 
completed. 
7. Power to execute works of improvement to slum areas and to recover expen se.- 
(1) If a notice under sub-section (1) of section 6 is not complied with, then, after the expiration 
of the time specified in the notice, the prescribed authority may itself execute the works 
required to be executed by the notice. 
(2) All expenses incu rred by the prescribed authority under this section, together with 
interest, at such rate as the Government may, by order, fix from the date when a demand for the 
expenses is made under payment, may be recovered by the prescribed authority from the owner 
of the slum area or part thereof or of the building or of the land on which the building stands, as 
the case may be, as arrears of land revenue and all such expenses and interest shall constitute a 
charge upon the slum area or part thereof or the building o r the land on which the building 
stands, as the case may be; 
 
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Provided that if the owner proves that he- 
(a) is receiving the rent merely as agent or trustee for some other person; and 
 
(b) has not in his hands on behalf of that other person sufficient money to sat isfy the 
whole demand of the prescribed authority. 
his liability shall be limited to the total amount of the money which he has in his hands as 
aforesaid. 
8. Expenses of maintenance of works of improvements, etc., to be recoverable from 
the occupiers of the land or building.- (1) Where works of improvement have been executed 
in relation to any land or building in a slum area, in pursuance of the provisions of sections 6 
and 7, the expenses incurred by the prescribed authority, or as the case may be, by any local 
authority, in connection with the maintenance of such works of improvement or the enjoyment 
of amenities and conveniences rendered possible by such works, may be recovered from the 
occupier or occupiers of the land or buildings as arrears of land revenue. 
(2) The amount of expenses referred to in sub -section (1) shall be determined by order 
by the prescribed authority and in the case of expenses incurred by the local authority, the 
prescribed authority shall consult the local authority before passing an order determining the 
amount of expenses incurred by the local authority. 
9. Power of prescribed authority to order demolition of building unfit for human 
habitation.- (1) Where the prescribed authority on a report from the local authority concerned 
or the State Housing Board or the Board or an officer authorizes by the Government for this 
purpose is satisfied that any building being unfit for human habitation in a slum area is not 
capable at a reasonable expense of being rendered so fit, it shall serve upon the owner of the 
building and upon any other person having an interest in the building, whether as lessee, 
mortgagee or otherwise, a notice to show cause, within such time as may be specified in the 
notice, as to why an order of demolition of the building should not be made. 
(2) If any of the persons upon whom a notice has been served under sub -section (1) 
appears in pursuance thereof before the prescribed authority and gives an undertaking to that 
authority that such person shall, within such period a s may be specified by the authority, 
execute such works of improvement in relation to the building, as will in the opinion of the 
authority, render the building fit for human habitation or that it shall not be used for human 
habitation until that authority  on being satisfied that it has been rendered fit for that purpose 
cancels the undertaking, the authority shall not make any order of demolition of the building. 
(3) If no such undertaking as is mentioned in sub -section (2) is given, or if, in a case 
where any such undertaking has been given, any work of improvement to which the 
undertaking relates is not carried out within the specified period or the building is at any time 
used in contravention of the terms of the undertaking, the prescribed authority sha ll forthwith 
make an order of demolition of the building, or require that the building shall be demolished 
within such period as may be prescribed.   
 
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10. Procedure to be followed where demolition order has been made. - Where an 
order of demolition of buildi ng under section 9 has been made, the owner of the building or 
any other person having an interest therein shall demolish that building, within the period 
mentioned in sub -section (3) of section 9; and if the building is not demolished within that 
time, th e prescribed authority shall enter and demolish the building and subject to the 
provisions of section 61, sell the materials thereof. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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CHAPTER V 
SLUM CLEARANCE AND RE-DEVELOPMENT 
 
11. Power to declare any slum area to be a slum cleara nce area. - (1) Where the 
Government, on a report from the Board or the prescribed authority, or the local authority 
concerned or the State Housing Board or an officer authorized by the Government for this 
purpose are satisfied as respects any slum area tha t the most satisfactory method of dealing 
with the conditions in the area is the clearance of such area and the demolition of all the 
buildings in the area, they may, by notification, declare the area to be a slum clearance area, 
that is to say, an area to  be cleared of all buildings in accordance with the provisions of this 
Act: 
 
Provided that before issuing such notification the Government shall call upon the 
owners of the land and buildings in such slum area to show cause why such declaration should 
not be made and after considering the cause, if any, shown by such owners, the Government 
may pass such orders as they may deem fit. 
(2) Any part of the slum area or any building in the slum area which is not unfit for 
human habitation or dangerous or injuriou s to safety, health or morals may be excluded from 
the notification under sub section (1) if the Government consider it necessary. 
(3) The notification under sub -section (1) shall specify each of the buildings to be 
demolished and the area to be cleared. 
NOTES 
Tenant withdrawn the application and applied for refund deposited in the ejectment suit filed by the landlord.  
In the meanwhile notification was made under section 11 of Act 21 of 1971 declaring the area as slum clearance.  
There is no prohibition for transfer of land or building by the owner even after the area has been declared as a 
slum area.  
The question that was considered in that case was whether the respondent can withdraw the application filed under 
section 9 of the City Tenant Protection Act and claim refund of the amount deposited in court – Yes. 
(1979 (2) M L J page 463) 
In the Writ petition filed by the slum dwellers and pavement dwellers from evicting them by the authorities under 
the Tamil Nadu Slum Areas (Improvement and Clearance) Act, 1 972 it was held that the improving slums and 
providing alternative accommodation, the notification issued and the steps that are taken for improving the slum 
and for providing alternative accommodation is valid – no writ or direction issued except time for  eviction is 
extended following AIR 1986 SC 180 Bombay Pavement and Slum Dwellers. 
[AIR 1986 SC 204] 
Section 11 (1) of the Act reads as follows.- 
It is clear from the above provisions that there must be a notification declaring a particular area as a slum area 
under Section 3; and as per section 11 there must be a declaration that such areas come under the slum clearance 
area. Neither of these things has been done in this case, before the Slum Clearance Board launched its coercive 
proceedings to evict the a ppellants herein. No provision in the Act has been shown to us as to how such 
 
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proceedings are taken by the second respondent herein. Even assuming that the second respondent has power to 
evict the appellants under Act 11 of 1971, on account of the failure on the part of the second respondent to declare 
the area as a slum area, and the further failure to declare such area as a slum clearance area, the action taken by the 
second respondent to clear the appellants from the area cannot be sustained. These decla rations, in our view, are 
mandatory in nature and the failure to adhere to the procedure prescribed vitiates all the proceedings taken by the 
second respondent to evict the appellants. 
1984 T L N J Page 224 dated 11.4.1984. 
12. Obligation to clear area and  demolish buildings. - When a slum area has been 
declared to be a slum clearance area under sub -section (1) of section 11, the owners of the 
lands and the buildings in that area shall clear the area and demolish the buildings before the 
expiration of such period as may be prescribed. 
13. Power to clear slum clearance areas. - If any slum clearance area is not cleared or 
the buildings demolished before the expiration of the period mentioned in section 12, the 
prescribed authority shall enter and clear the area and demolish the buildings and subject to the 
provisions of section 61, sell the materials thereof. 
14. Owner may re -develop.- (1) Subject to the provisions of this Act, where a 
notification under sub-section (1) of section 11 has been issued, the owner o f the land to which 
the notification applies may re -develop the land in accordance with plans approved by the 
prescribed authority and subject to such restrictions and conditions (including a condition with 
regard to the time within which the re -development shall be completed), if any, as that 
authority may thing fit to impose: 
Provided that an owner who is aggrieved by a restriction or condition so imposed on the 
user of his land or by a subsequent refusal of the prescribed authority to cancel or modify an y 
such restriction or condition may, within such time as may be prescribed, appeal to the 
Government and the Government shall make such order in the matter as they think proper and 
their decision shall be final. 
(2) No person shall commence or cause to be commenced any work in contravention of 
a plan approved or a restriction or condition imposed under sub-section (1). 
15. Power of prescribed authority to re -develop clearance area. - (1) 
Notwithstanding anything contained in sub -section (1) of section 14, th e prescribed authority 
may, at any time, after the land has been cleared and the buildings have been demolished in 
accordance with the foregoing provisions of this Chapter but before the work of re -
development of that land has been commenced by the owner, by order, determine to re-develop 
the land if that authority is satisfied that it is necessary in the public interest to do so. 
(2) Where land has been cleared and the buildings have been demolished in accordance 
with the4 foregoing provisions of this Chapter, the prescribed authority, if it is satisfied that the 
land has been, or is being re -developed by the owner thereof in contravention of plans 
approved by the authority or any restrictions or conditions imposed under sub -section (1) of 
section 14, or ha s not been re -developed within the time, if any, specified under such 
conditions, may, by order, determine to re-develop the land: 
 
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Provided that before passing an order under sub -section (1) or sub -section (2), the 
owner shall be given a reasonable opportu nity to show cause why the order should not be 
passed. 
(3) All expense incurred by the prescribed authority under this section, together with 
interest at such rate as the Government may, by order, fix from the date when a demand for the 
expenses is made until payment, may be recovered by the prescribed authority from the owner 
of the land as arrears of land revenue and all such expenses and interest shall constitute a 
charge upon the land and the building. 
(4) The amount of expenses referred to in sub -section (3) shall be determined by order 
by the prescribed authority. 
16. Rules to provide for transfer to previous occupants.- Subject to the provisions of 
this Act, the Government may, by rules, provide for or regulate the transfer, to persons who 
immediately before the transfer, to persons who immediately before the declaration of any 
slum area to be a slum clearance e area, were occupying lands or buildings in that area, of lands 
or buildings in such slum clearance area after its re -development and the condi tions of such 
transfer. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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CHAPTER VI 
ACQUISITION OF LAND 
 
1[17. Power to acquire land .- (1) Where the Government are satisfied that, for the 
purpose of executing any work of improvement in relation to any slum area or any building in 
such area or for the purpose of re -developing any slum clearance area, or for the purpose of 
rehabilitating slum dwellers, it is necessary to acquire any land within, adjoining or surrounded 
by any such area or any other land not lying in such area, they may acqui re the land by 
published in the Tamil Nadu Government Gazette, a notice to the effect that they have decided 
to acquire the land in pursuance of this section. 
(2) Before publishing a notice under sub -section (1), the Collector, or any officer, 
authorized b y the Government in this behalf shall call upon the owner or any other person, 
who, in the opinion of the Collector or the officer so authorized, may be interested in such land, 
to show cause why it should not be acquired. The Collector or the officer shal l, after 
considering the cause, if any, shown by the owner or other person interested in the land, make a 
report to the Government containing his recommendations on the causes so shown, for the 
decision of the Government. After considering such report, the  Government may pass such 
orders as they deem fit.] 
18. Land acquired to vest in Government free from all encumbrances .- When a 
notice under section 17 is published in the Tamil Nadu Government Gazette, the land to which 
the said notice relates shall, on a nd from the date on which the notice is so published, vest 
absolutely in the government free from all encumbrances. 
19. Right to receive compensation .- Every person having any interest in any land 
acquired under this Act shall be entitled to receive and be  paid compensation as hereinafter 
provided. 
20. Compensation.- (1) The compensation payable in respect of any land acquired 
under this Act shall be the market -value of such land on the date of the publication of the 
notice referred to in section 17. 
(2) The prescribed authority shall, after holding an enquiry in the prescribed manner, 
determine by order the mount of compensation under sub-section (1) 1[***]. A copy of the said 
order shall be communicated to the owner of the land and every person interested therein. 
(3) Where the owner of the land and the owner of the building on such land are 
different, the prescribed authority shall apportion the amount of compensation between the 
owner of the land and the owner of the building (in the same proportion as th e market-value of 
the land bears to the market-value of the building on the date of the acquisition). 
 
 
 
 
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NOTES 
Acquisition Proceedings. – Determination of question quantum of compensation in view of the Judgment in W A 
No 1495 of 1979, dated 25 th of 1985 h olding that the compensation available could be only on the basis as 
determinable under the Land Acquisition Act.                                                                   (1984 (1) M L J page 352) 
 21. Matters to be neglected in determining compen sation.- In determining the 
amount of compensation under section 20. 
 (1) no solatium shall be payable in consideration of the compulsory nature of the 
acquisition; 
 (2) the following factors shall not be taken into account, namely:- 
  (a) the degree of urgency which has led to the acquisition: 
  (b) any disinclination of the person interested to part with the land acquired; 
  (c) any damage sustained by him which, if caused by a private person, would 
not render such person liable to a suit; 
  (d) any damage which is likely to be caused to the land acquired after the date of 
the publication of the notice under sub -section (1) of section 17, by or in consequence of the 
use to which it will be put; 
  (e) any increase to the value of the land acquired likely to accrue from the use to 
which it will be put when acquired; 
  (f) any increase to the value of the other land of the person interested likely to 
accrue from the use to which the land acquired will be put; 
  (g) any outlay or improvement on, or disposal of,  the land acquired, 
commenced, made or effected without the sanction of the prescribed authority after the date of 
the publication of the notice under sub-section (1) of section 17. 
22. Appeal against order of compensation .- Any person who does not agree t o the 
amount of compensation determined by the prescribed authority under sub -section (2) of 
section 20 may prefer an appeal to the Court within such period as may be prescribed. 
23. Apportionment of compensation .- (1) Where several persons claim to be 
interested in the amount of compensation determined, the prescribed authority shall determine 
the persons who in its opinion are entitled to receive compensation and the amount payable to 
each of them. 
(2) If any dispute arises as to the apportionment of the compensation or any part 
thereof, or as to the persons to whom the same or any part thereof is payable, the prescribed 
authority may refer such dispute to the decision of the Court and the Court shall, in deciding 
any such dispute follow as far as may be, the provisions of Part iii of the Land Acquisition Act, 
1894 (Central Act I of 1894). 
 
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 24. Payment of compensation .- (1) After the amount of compensation has been 
determined, the prescribed authority shall tender payment of the compensation to the persons 
entitled thereto and shall pay it to them. 
 (2) If the persons entitled to the compensation do not consent to receive it or if there be 
no person competent to alienate the land, or if there by any dispute as to the title to receive 
compensation, or as to t he apportionment of it, the prescribed authority shall deposit the 
amount of compensation in the Court, and the Court shall deal with the amounts so deposited in 
the manner laid down in sections 32 and 33 of the Land Acquisition Act, 1984 (Central Act I of 
1984). 
 25. Payment of interest .- When the amount of such compensation is not paid or 
deposited on or before taking possession of the land, the prescribed authority shall pay the 
amount with interest thereon at the rate of four percent, per annum from the  time of so taking 
possession until it shall have been so paid or deposited and such interest shall be paid or 
deposited by the prescribed authority in the same manner as provide for the amount of 
compensation. 
 26. Appeal to High Court .- Subject to the pr ovisions of the Code of Civil Procedure, 
1908 (Central Act V of 1908), applicable to appeals from original decrees, and notwithstanding 
anything to the contrary in any enactment for the time being in force, a second appeal shall 
only lie to the High Court from any decision of the Court under this Act if the amount of 
compensation as determined by the prescribed authority exceeds rupees twenty-five thousand. 
 27. Power of prescribed authority in relation to determination of compensation 
etc. – (1) The prescr ibed authority may, for the purpose of carrying out the provisions of 
sections 20, 21, 23, 24 and 25, by order, require any person to furnish such information in his 
possession relating to any land which is acquired under this Act as may be specified in su ch 
order. 
 (2) The prescribed authority shall, while holding an enquiry under this Act, have all the 
powers of a civil court, while trying a suit under the Code of Civil Procedure, 1908 (Central 
Act V of 1908), in respect of the following matters, namely:- 
  (a) summoning and enforcing the attendance of any person and examining him     
                          an oath; 
  (b) requiring the discovery and production of any document; 
  (c) reception of evidence on affidavits; 
  (d) requisitioning any public record from any Court or office; 
  (e) issuing commission for examination of witnesses. 
 
 
 
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 28. Use of land acquired . – (1) Where any land has been acquired under this Act, the 
Government may undertake or cause to be undertaken such measures as may be necessa ry for 
the improvement, development, clearance or re -development of the land, or the erection of 
buildings thereon, in accordance with such plan as may be approved by them. 
 (2) (i) For the purpose of undertaking the measures referred to in sub -section (1), the 
Government may either hold the land under their own control and management and undertake 
such measures themselves or through the Board on such terms and conditions as may be 
determined by them, or transfer the land to the local authority concerned or  the Board for the 
purpose of undertaking those measures. 
 (ii) Where the land is transferred as provided in clause (i), such land shall vest in the 
local authority concerned or the Board, as the case may be, and the local authority or the Board 
shall- 
(a) pay to the Government the cost of acquisition of the land or such portion thereof as 
the Government may determine in each case; and 
 
(b) undertake the measures referred to in sub -section (1) in accordance with such plans 
as may be approved by the governme nt, and subject to such directions as may, from time to 
time, be given by the Government. 
 
NOTES 
Chapter VI was struck down as unconstitutional (being violation of Article 14 of the Indian Constitution). Notice 
was served by the Tamil Nadu Slum Clearance B oard under Section 17 (2) to show cause why the lands 
mentioned in the Schedule should not be acquired. 
Writ of mandamus to quash the acquisition proceedings and to forebear the respondents from acquiring the lands 
for the purpose of Tamil Nadu Slum Clearance Board under the Act was issued. 
[1983 (2) MLJ P. 459] Dated 25th March 1983. 
NOTES – (Contd…) 
 
It cannot be gainsaid that at its heart the law enforcement problem has always been and will remain a 
human problem. In human living conditions lack of hygie ne and sanitation prevalent in slums produce serious 
crime problems. The day of the silent poor must come to an end. There is anger and bitterness in the contemporary 
slums. Slums in an affluent society constitute an anachronism. Many a children born in sl um are diseased at birth, 
stricken with hereditary illness, but the greatest of all illness is poverty, since it is the most deadly and prevalent 
disease. More often than not lack of job and money is not the cause of poverty but the symptom. The cause lies  
deeper in our failure to give fellow citizens a fair habitation and decent living. Provisions of Chapter VI of the Act 
are however clearly unconstitutional being violative of Article 14 of the Constitution of India. At the same time, 
there is no justifica tion for holding the other provisions of the Slum Clearance Act unconstitutional. The Act can 
exist even de hors of Chapter VI. 
Applying the doctrine of severance, chapter VI of the Act is struck down as unconstitutional. This 
decision was overruled in 199 5 W.L.R. P.781 the State of Tamil Nadu & Ors. V. Ananthammal 22.11.1994 CA 
No.3312 of 1991 and held that Chapter VI is constitutionally valid. The provision of Chapter VI of the Slum 
Clearance Act are held to be “intravires” the constitution. 
 
 
 
16 
 
1995 Writ L.R. 781 
 
 
SUPREME COURT OF INDIA 
22nd November, 1994/Civil Appeal No.3312 of 1981 
J.S. Verma, S.P. Bharucha and K.S. Paripoornan, JJ. 
The State of Tamil Nadu & Ors. 
Vs. 
Ananthi Ammal & Ors.                                                                                                                   …Respondents 
 Tamil Nadu Acquisition of Land for Harijan Welfare Schemes Act (31 of 1978), S.11(1), and 
Constitution of India, Arts. 14 and 31 -C- Tamil Nadu Act, held, intra vires, except a part of S.11(1),  in so far as it 
provides for payment of compensation in instalments – S.11(1) part, is severable and remaining part of the Section 
and the Act upheld, as not violative of Art.14 – Judgment of Madras High Court reversed. 
 No unreasonableness in S.20 enacti ng that provisions of Land Acquisition Act, shall save an expressly 
provided, cease to apply to the land. 
 Applicability of the Act according to S.22, to cases in which proceedings had been started under L.A. Act 
before the commencement of the said Act but no award has been passed – No unreasonableness. 
 Obligation of the prescribed authority under s.7(2) to award marked value plus 15% solatium – Appeal 
contemplated under 5.9 is in respect of the award for the land which comprises its market value and solat ium – 
Sx.7 and 9 should not be read so as to render S.9 an absurdity. 
 Compensation determined under the L.A. Act on the basis of “Market Value” of land on date of S.4 (1) 
Notification is on a specified principle – In the same way, it is of no great conseq uence when compensation is 
determined (under this enactment) on the basis of market value on a date anterior to the date of extinction of 
interest, which is still determined “on a principle specified’ within Art.31(2). Provisions of S.4 of the Act, held, 
substantially encapsulate provisions of Ss.4 to 6 of L.A. Act, and are not unreasonable or arbitrary.  
 Tamil Nadu Slum Clearance Act – Chapter VI, held to be intra vires the Constitution – See Tamil Nadu 
Acquisition of Land for Harijan Welfare Schemes Act ( 31 of 1978) etc.,                                                (para 26) 
Constitution of India, Arts. 14 and 31 -C, etc.,- See Tamil Nadu Acquisition of Land for Harijan Welfare Schemes 
Act (31 of 1978), S. 11(1), etc., 
 Held: “We do not find the provisio ns of the said Act, except for the provision as to instalments, in 
Section 11, violative of the provisions of Article 14 of the Constitution of India. It is therefore unnecessary to 
consider whether or not the said Act has the protection of Article 31-C of the Constitution”. 
Except of the provisions of Section 11(1) of the said Act, in so far they provide for payment of the compensation 
amount in instalments the said Act is intra vires the Constitution Section 11(1) is valid only to this extent.  
Paras 9,20 
 “We must, however, take account of the fact that the judgment under appeal striking down the said Act 
was delivered as far back as September, 1981, and no stay thereof, was obtained from the court. It is likely, 
therefore, that in cases where proceedings  under the Land Acquisition Act had already been started to acquire 
lands for Harijan Welfare Schemes, they might have been revived and completed in the interregnum. We, 
therefore, make it clear that the provisions of section 22 shall have no effect in suc h cases where awards have been 
made”. 
 
17 
Para 18. 
 “S. 22 makes the provisions of the said Act applicable also to cases in which proceedings have been 
started before the commencement of the said Act under the Land Acquisition Act for the purpose of Harijan 
Welfare Schemes, provided that no award has been made under the Land Acquisition Act. We see no 
unreasonableness in this provision”. 
 Para 18. 
 It is true that the said Act provides for matters which are to be ignored in determining the amount under 
Section 8, but does not make provision, as the Land Acquisition Act does, in determining the amount. It has, 
however, to be realized that the concept of market value and how it is to be determined is well established. Under 
the Land Acquisition Act compensation is determined on the basis of “market value” of the land on the date of the 
notification under Section 4(1) of  the Act. That is a specification of principle. Compensation determined on the 
basis of market value prevailing on a date anterior to the date of e xtinction of interest is still determined “on a 
principle specified”. It is therefore, of no great consequence that the said Act does not go on to specify what is to 
be taken into account in determining the amount payable as compensation for land that is a cquired there under.  
Para 11. 
 The provisions of Section 4, substantially encapsulate the provisions of Sections 4 to 6 of their Land 
Acquisition Act, the only major difference being that, under the said Act, it is the District Collector and not the 
State Government who must be satisfied that the land is required to be acquired. “It does not appear to us that this 
is a provision which is unreasonable or arbitrary”. 
Para 8. 
 When a statute is impugned under Article 14, what the Court has to decide is whethe r the statute is so 
arbitrary or unreasonable that it must be struck down. At best, a statute upon a similar subject which desires its 
authority from another source can be referred to, if  which desires its authority its authority from another source 
can be referred to, if its provisions have been held to be reasonable or have stood the test of time, only for the 
purpose of indicating what may be said to be reasonable in the context. “we proceed to examine the provisions of 
the said Act upon this basis”. 
Para 7. 
 “We have held the provisions of the said Act (TN Act.31 of 1978) to be valid legislation except in so far 
as they provide for payment of the compensation amount in instalments. The said Act being valid legislation, its 
provisions preclude the State f rom acquiring land for the purpose of a Harijan Welfare Scheme under the Land 
Acquisition Act. The appeal is allowed and the proceedings under the Land Acquisition Act to acquire the 
appellant’s land for the purpose of a Harijan Welfare Scheme are, therefore, quashed and set aside”. 
 Para 29. 
AIR 1954 S.C.493; 
AIR 1988 S.C.485; 
AIR 1969 S.C.64; 
1962-1-S.C.R.676; and 
1991-4-S.C.C.95; Referred to. 
 
 The provisions of Chapter VI of the Slum Clearance Act are held to be intra vires the Constitution.  
Para 26. 
 
Judgment of the Madras High Court reversed  
Civil Appeals allowed 
 
 
 
 
 
 
 
 
18 
CHAPTER VII 
PROTECTION OF [OCCUPANTS] IN SLUM AREAS FROM                                                            
EVICTION 
 29. Proceedings for eviction of [occupants] not to be take n without permission of 
the prescribed authority : - (1) Notwithstanding anything contained in any other law for the 
being in force, no person shall except with the previous permission in writing of prescribed 
authority- 
 (a) institute, after the commencement of this Act any suit or proceedings for obtaining 
any decree or order for the eviction 1[an occupant] from any building or land in such area: or 
 (b) where any degree or order is obtained in any suit or proceeding instituted before 
such commencement for  the eviction of 1[an occupant] from any building or land in such 
area, execute such decree or order. 
 (2) Every person desiring to obtain the permission referred to in sub -section (1) shall 
make an application in writing to the prescribed authority in suc h form and containing such 
particulars as may be prescribed. 
 (3) On receipt of such application, the  prescribed authority after giving an opportunity 
to the parties of being heard and after making such summary enquiry into the circumstances 
of the case a s it thinks fit shall, by order in writing, either grant or refuse to grant such 
permission. 
 (4) In granting or refusing to grant permission under sub -section (3), the prescribed 
authority shall take into account the following factors, namely:-- 
 (a) whether alternative  accommodation within the means of the 1[occupant] would be 
available to him if  he were evicted: 
 (b) whether the eviction is in the interest of improvement and clearance of the slum 
area; 
 (c) such other factors, if any, as may be prescribed. 
 (5) Where the prescribed authority refuses to grant the permission, it shall record a brief 
statement of the reasons for such refusal and furnish a copy thereof to the applicant. 
 2[Explanation.-In, this section and, in sections 31,32, and 33, ‘occup ant’ means an 
occupier, not bring an owner in occupation of, or otherwise using, his hand or building.] 
NOTES 
 The respondent, ‘K’ had obtained a decree for eviction against the petitioners and thereafter, 
filed execution petitions for taking delivery of p ossession of the disputed areas from the petitioners. 
One of the defences taken  by the petitioners in those execution petitions filed by the respondent 
decree-holder was that s the area, which was the subject -matter of the suit and from which they were 
sought to be ejected, had already b

Excerpt shown. Open the full act in Lexace.

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