High Court of KeralaDivision BenchAppeal Allowed; Enhanced compensation; Costs to...

A.T. George (Georgekutty) v. State of Kerala and The Executive Engineer, KSTP, Ponkunnam Division

Case / Petition Number:LA.A. No. 958 of 2010

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Pius C. KuriaKose
  • N.K. Balakrishnan
Judgment Date
2011-03-09
Court Decision / Holding
The appeal is allowed; the compensation is refixed at Rs. 2,23,437 per Are. The appellant is entitled to enhanced compensation on that basis, along with all statutory benefits under Sections 23(2), 23(1A) and 28 of the Land Acquisition Act, and costs to both sides.
Final Disposition
Appeal Allowed; Enhanced compensation; Costs to both sides; statutory benefits under LA Act.

Parties to the Case

Appellants / Petitioners

  • A.T. George @ Georgekutty S/O Thomas, Edayilamuriyil House Mangaram, Konni, Pathanamthitta District

Respondents

  • The State of Kerala represented by the District Collector Pathanamthitta
  • The Executive Engineer KSTP Ponkunnam Division

Legal Representation & Advocates

Counsels for Petitioners

  • • Jacob P. Alex
  • • Joseph P. Alex

Counsels for Respondents

  • • Smt. T.T. Josephina

Case Synopsis & Summary

This is a Land Acquisition Appeal (LA.A. No. 958 of 2010) arising from an acquisition in Konni village for up-gradation of the Punalur–Moovattupuzha Road under Section 4(1) of the Land Acquisition Act. The Land Acquisition Officer divided the land into categories B and C, fixing values of Rs. 1,02,057 per Are for category B and Rs. 84,040 per Are for category C. The Reference Court later refixed the market value at Rs. 1,50,000 per Are for the entire land treated as category B. The appellant challenged this, relying on Exts A3 (pre-notification, Rs. 65,761 per cent) and Ext A4 (post-notification, Rs. 1,79,104 per cent), which he argued demonstrate higher values and a trend of escalation. He contended Ext A3 and Ext A4 are comparable to the acquired land and warrant consideration, noting their proximity (about 27 metres) and that the Commissioner’s reports show relevance to pricing. The respondents argued Ext A4 should be excluded as post-notification and Ext A3 cannot be located with reference to the acquired property; they also asserted the Commissioner’s report did not fix a rate, leaving no firm basis for enhancement. The High Court allowed Ext A3 to be considered for comparability, rejected Ext A4, and, applying a Supreme Court precedent (2008 SAR 894), refixed the compensation at Rs. 2,23,437 per Are, granting statutory benefits under Sections 23(2), 23(1A) and 28, with costs to both sides.

Provisions of Law Cited

Land Acquisition Act, 1894, Section 4(1)Land Acquisition Act, 1894, Section 23(2)Land Acquisition Act, 1894, Section 23(1A)Land Acquisition Act, 1894, Section 28

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contended that the Reference Court erred in discarding Exts A3 and A4. Ext A3 (pre-notification) and Ext A4 (post-notification) collectively indicate a higher value pattern and should be given weight; Ext A3 shows Rs.65,761 per cent (three years and nine months before notification) and Ext A4 shows Rs.1,79,104 per cent (post-notification). The closeness of Ext A3 to the acquired property (27 metres) and its comparability in nature make Ext A3 relevant for determining value, despite the lack of explicit adjacency evidence. The appellant argued against reliance on guesswork and urged use of pre-notification comparables and time-adjusted escalation within the limit acknowledged by jurisprudence. He also pressed for treating the entire land as comparably valued rather than splitting categories and noted escalation trends to justify a higher rate.

Contentions of Respondents

The respondents argued Ext A4 cannot be considered as it is post-notification and Ext A3 cannot be located with reference to the acquired property. The advocate-Commissioner’s report did not enable locating Ext A3; in the absence of a firm basis, the court should not enhance the value and must rely on evidence such as oral testimony and Commissioner reports. They emphasized that the Commissioner’s report does not fix any rate and urged against using post-notification figures or making guesswork-based enhancements.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
General Manager, Oil and Natural Gas Corporation Ltd. v. R. Jivan Bhai Patel & another2008 SAR 894PositiveCited with approval to support a time-based enhancement limit (10% per year) for land value adjustments, guiding the present court’s approach to escalation.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** **PRESENT :** **THE HONOURABLE MR. JUSTICE PIUS C.KURIAKOSE** **& THE HONOURABLE MR. JUSTICE N.K.BALAKRISHNAN** **WEDNESDAY, THE 9TH MARCH 2011 / 18TH PHALGUNA 1932** **LA.App..No. 958 of 2010(D)** **-------------------------LAR.23/2007 of SUB COURT, PATHANAMTHITTA** **....................** ## **APPELLANT(S)/CLAIMANT:** **------------------------------** **A.T.GEORGE @ GEORGEKUTTY S/O.THOMAS, EDAYILAMURIYIL HOUSE MANGARAM,KONNI, PATHANAMTHITTA DISTRICT.** **BY ADV. SRI.JACOB P.ALEX SRI.JOSEPH P.ALEX** ## **RESPONDENT(S)/RESPONDENT:** **---------------------------------------** **1. THE STATE OF KERALA REPRESENTED BY THE DISTRICT COLLECTOR PATHANAMTHITTA.** **2. THE EXECUTIVE ENGINEER KSTP PONKUNNAM DIVISION.** **BY GOVERNMENT PLEADER SMT. T.T. JOSEPHINA** **THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 09/03/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **PIUS C. KURIAKOSE & N.K. BALAKRISHNAN, JJ. = = = = = = = = = = = = = = = = L.A.A. NO. 958 OF 2010 = = = = = = = = = = = = = = = = Dated this the 9[th] day of March, 2011.** ## **J U D G M E N T** ## **Pius C. Kuriakose, J.** The claimant is the appellant. His property in Konni village was acquired for the purpose of up-gradation of Punalur-Moovattupuzha Road. The acquisition was pursuant to Section 4 (1) notification published on 11.8.2005. The Land Acquisition Officer included a portion of the properties in category B and awarded land value at the rate of Rs.1,02,057/- per Are. The remaining portion was included in category 'C' and awarded a land value of Rs.84,040/-. Before the Reference Court the appellant placed reliance on Exts.A3 and A4 documents. Ext.A3 was a pre-notification document executed on ## **L.A.A. NO. 958 OF 2010** -:2:- 8.11.2001(3 years and 9 months prior to the notification u/s 4(1)). Ext.A3 reflected a land value of Rs.65,761/- per cent. Ext.A4 was a post notification document executed on 19.10.05 (about 2 months subsequent to the notification u/s 4(1)]. Ext.A4 reflected a land value of Rs.1,79,104/- per cent. 2. One of the contentions which was raised by the appellant before the Reference Court was that there was no justification for including a portion of his properties in category B and balance portion in category C, and that the entire property should have been included in category B itself. 3. The learned Reference Court did not place reliance on Ext.A4. It did not place reliance on Ext.A3 either. Ultimately by doing guess work and also taking into account Ext.C1 ## **L.A.A. NO. 958 OF 2010** -:3:- series of Commissioner's report and the oral evidence of the parties the learned Subordinate Judge would refix the market value of the land (treated to be the entire land in category B at Rs.1,50,000/- per Are). 4. In this appeal several grounds are raised assailing what is described as the inadequacy in the compensation redetermined by the Reference Court. Sri. Joseph P. Alex, learned counsel for the appellant addressed strenuous and persuasive arguments before us on the basis of the various grounds raised. He submitted that the Court below was not justified in discarding Exts.A3 and A4. 5. As regards Ext.A4 he submitted that though the document is a post-notification one, nothing was brought out in the evidence to show that higher value shown in Ext.A4 is on account ## **L.A.A. NO. 958 OF 2010** -:4:- of the widening of the road pursuant to the present acquisition. He argued that Exts.A3 and A4 read jointly will show that the percentage of escalation per area in the year was at least 21% per year. According to him the observation of the learned Subordinate Judge that the Commissioner has not reported that the property covered by Ext.A3 and the property under acquisition are not adjacent and that the Commissioner's report will not enable the Court to locate the relevant position of the acquired property and the property under Ext.A3 is incorrect. He drew our attention to page 8 of the Commissioner's report where the Commissioner has clearly reported that the distance between Ext.A3 property and the acquired property is just 27 meters. ## **L.A.A. NO. 958 OF 2010** -:5:- 6. All the submissions of the learned counsel, Joseph P. Alex were resisted very strongly by Smt.Josephina, the learned Government Pleader. According to her Ext.A4 cannot be taken into account at all. Even Ext.A3 cannot be taken into account as the advocate Commissioner's report does not enable the court to locate the same with reference to the acquired property. In the absence of any document justifying enhancement of the value, what the Court below could have done is to do guess work and refix the value based on other evidence available and the other evidence available is only the oral evidence and the Commissioner's report. Though the Commissioner has reiterated that the property is situated in a commercially important area significantly the Commissioner does not recommend any particular ## **L.A.A. NO. 958 OF 2010** -:6:- rate for the property. 7. We have very anxiously considered the rival submissions addressed before us. We have also applied our mind to the judgment of the Courts below, Exts.A3 and A4 documents and the Commissioner's report. We are of the view that the learned Subordinate Judge was not justified in discarding Ext.A3 on the reason that there was nothing to show that Exts.A3 property and the acquired property were adjacent. First of all, insistence of the property covered by Ext.A3 to be situated adjacent to the acquired property is not justifiable. Ext.A3 document will become relevant if the property covered by the same is comparable in nature to the acquired property and is situated within a reasonable distance. The learned Subordinate Judge has observed that even Ext.C1 series of ## **L.A.A. NO. 958 OF 2010** -:7:- Commissioner's reports does not enable her to locate Ext.A3 with reference to the acquired property. But we find from the Commissioner's report that Ext.A3 property is situated at a distance of 27 meters from the acquired property. We are sure that as properties covered by Ext.A3 are comparable to the acquired property situated within a distance of hardly 27 meters, the acquired property and the property covered by Ext.A3 had the same value. Ext.A3 was executed three years and nine months prior to S.4(1) notification. Though it was argued before Court below and before us also, that the escalation in land value in Konni village during the relevant period was about 15% per year, we do not find any material justifying the same. Of course Exts.A3 and A4 read together may indicate that escalation in the area during the ## **L.A.A. NO. 958 OF 2010** -:8:- period between Exts.A3 and A4 document is more than 15%. But we are not inclined to look into Ext.A4 as the same is a post notification document especially in this case where the basis document and Ext.A3, both pre-notification documents are available before us. For deciding as to what should be the proper percentage to be taken to provide for passage of time, we notice judgment of the Hon'ble Supreme Court reported in **2008 SAR 894 (General Manager, Oil and Natural Gas Corporation Ltd. v. R.Jivan Bhai Patel & another).** Though Mr. Joseph Alex argued that Konni is an urban area, we are of the view that the area of the acquired property was only semi-urban and the maximum addition that can be granted due to passage of time is 10% per year. Making additions on the value reflected in Ext.A3 that way, the value of the property at ## **L.A.A. NO. 958 OF 2010** -:9:- the relevant time will be found to be Rs.2,23,437/- per Are. We refix the value of the acquired property also at Rs.2,23,437/- per Are. 8. The appeal is allowed as above and the compensation will be refixed at the rate of Rs.2,23,437/- per Are. The appellant will be entitled to enhanced compensation on the basis of the above refixation. He will be entitled to all statutory benefits which are provided under Sections 23(2), 23(1A) and S.28 of Land Acquisition Act. Parties will suffer their respective costs. ## **Sd/- PIUS C. KURIAKOSE,JUDGE.** ## **Sd/-N.K. BALAKRISHNAN,JUDGE.** ul/- [ True copy ] _P.A. to Judge._