Supreme Court Pulls Up Tamil Nadu for repeatedly seeking adjournments in a long-pending dispute over compensation for business and property losses caused by the 1996 communal riots in Thoothukudi, and has listed the matter again for Tuesday.
New Delhi: The Supreme Court on Monday (October 26) expressed strong displeasure at the Tamil Nadu government’s conduct in an appeal over compensation to those who lost property and businesses in the 1996 communal riots in Thoothukudi (Tuticorin), refusing to grant the State two more weeks to file a rejoinder and asking it to say what consequences should follow from the prolonged delay [The Government of Tamil Nadu v. D.G. Rajan @ Gnanaraj].
A Bench of Justice S.V.N. Bhatti and Justice N.V. Anjaria was told that a letter seeking an adjournment had been circulated on the preceding Saturday. The Court was also informed that the State has already deposited 50 per cent of the compensation amount.
How the case reached here
After the riots caused damage to businesses and properties, the State appointed a former District Judge as a one-man commission to assess the losses and recommend compensation. The commission recommended compensation based on the actual losses suffered. The State government then issued G.O.Ms. No. 1834, granting a uniform compensation of Rs 2 lakh to all affected persons.
The affected persons challenged that Government Order before the Madras High Court. Both the Single Judge and the Division Bench favoured compensation in line with the recommendations of the one-man commission. The State then appealed to the Supreme Court, where the matter has been listed repeatedly.
What the Bench said
When the State’s counsel sought two weeks to file a rejoinder, Justice Bhatti pointed out that the incident dates to 1996 and that the matter has remained unresolved for decades. He questioned how many times the Court must prepare for a hearing only to see it postponed, and referred to the repeated adjournments recorded in the proceedings.
“It is a simple matter; the State ought not to be dragging its feet.”
The Bench observed that, even if the prayers were accepted in their entirety, the compensation would not amount to full justice after so long. Justice Bhatti also remarked on the practice of appointing commissions after communal violence and arson, saying that people come to expect that their grievances will be addressed, and that the State must ensure the promised relief actually reaches them.
Next hearing
The Court adjourned the matter to Tuesday (October 27) and asked the State to specify what exemplary consequences should follow from the prolonged delay in disbursing compensation. Justice Bhatti told the State’s counsel that in matters of this kind, if the State fails, the Court will not extend a helping hand. The appeal has not been decided on merits, and the State’s position on the validity of the uniform Rs 2 lakh grant remains to be argued.
Case Title: The Government of Tamil Nadu v. D.G. Rajan @ Gnanaraj
Bench: Justice S.V.N. Bhatti and Justice N.V. Anjaria, Supreme Court of India
Date of Hearing: October 26, 2026