Rival claims to deposited acquisition compensation must be resolved before the court holding the funds.

The first respondent, RMC Traders, obtained a Single Judge’s order permitting it to submit a representation with a copy of the land-acquisition award and directing the authorities to consider and disburse compensation

The appellants challenged that direction, submitting that competing claims had been made to the compensation and that the award amount had already been deposited before the Principal District Judge, Chengalpattu, in L.A.O.P. Nos. 173 and 174 of 2025

Respondents 2 to 11, stated to be legal heirs of a partner in the firm, also asserted a claim to the compensation and agreed that the parties should pursue their claims before the court holding the deposit

1. Whether the direction to the acquisition authorities to disburse compensation should stand when rival claims to the amount exist and the amount has been deposited before the Principal District Judge, Chengalpattu

2. Whether the competing claimants should pursue their entitlement to the deposited award amount before the court holding the deposit

The judgment cites no specific statutory provision or precedent

It proceeds on the principle that where competing claims exist to land-acquisition compensation and the amount has been deposited before a competent court, the claimants should work out their respective rights before that court; the acquisition authorities should not be directed to disburse the amount in a manner that may prejudice those claims

The Court accepted that the compensation had already been deposited in the pending L.A.O.P. proceedings and that both RMC Traders and respondents 2 to 11 claimed entitlement to it

Since deciding which claimant was entitled to the amount required the parties’ rival claims to be worked out before the court holding the deposit, the Single Judge’s direction to the authorities to disburse compensation was set aside

The Single Judge’s disbursement direction was set aside; the writ appeal was disposed of without costs, and the interim application was closed