In Brief
The Supreme Court held that a concluded negotiated compensation agreement under Section 7(2) of the Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997 is binding and excludes statutory interest under Section 12. Landowners in Coimbatore agreed to fixed compensation rates (Rs. 1500/sq.ft. for residential, Rs. 900/sq.ft. for agricultural land) in 2018 for acquired leasehold lands. The High Court upheld the agreement as a complete package but also granted interest from the acquisition notice date until judgment. The Supreme Court reversed the interest grant, holding that voluntary acceptance of negotiated compensation precludes invoking statutory interest provisions. Parties cannot approbate and reprobate by first accepting an agreement, then later claiming statutory benefits excluded by that agreement.
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