High Court of KeralaDivision BenchAppeal partly allowed; cross objection dismisse...

Geetha Viswanathan v State of Kerala & The Chief Executive Officer, Technopark

Case / Petition Number:LA.A.No.267/2015
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • V. Chitambaresh
  • R. Narayana Pisharadi
Judgment Date
2019-01-16
Court Decision / Holding
Appeal allowed in part. The land value is refixed at Rs. 2,40,433 per Are for the Category No.2-adjacent land; the claim for enhancement of compensation for improvements and structures is rejected. The appellant is entitled to statutory benefits under Sections 23(1A) and 23(2) calculated on the land value per the Amarjit Singh decision; cross objection is dismissed. The judgment clarifies that, in this case, land value may dictate the valuation of trees separately where applicable, and not as part of the orchard yield. No costs. The decision is not to be treated as a precedent for other cases.
Final Disposition
Appeal partly allowed; cross objection dismissed; land value refixed; improvements/structures not enhanced; 23(1A) and 23(2) benefits applied to land value; not to be treated as precedent.

Parties to the Case

Appellants / Petitioners

  • Geetha Viswanathan W/o Viswanathan

Respondents

  • State of Kerala represented by District Collector, Thiruvananthapuram
  • The Chief Executive Officer, Technopark, Thiruvananthapuram

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. V. Suresh
  • • Sri. G. Sudheer

Counsels for Respondents

  • • Sri. A.K. Sukumaran, Sr.GP
  • • Smt. Rashmi K.V.

Case Synopsis & Summary

This Land Acquisition Appeal arises from a 2010 Sub Court Attingal decree awarding compensation for 338.73 acres of land acquired for the Electronic Technology Park development. The notification under Section 4(1) of the Land Acquisition Act, 1894 was published on 05.12.2006. The Land Acquisition Officer fixed land value at Rs. 1,17,978 per Are, plus Rs. 1,22,664 for improvements and Rs. 3,26,822 for structures. The Reference Court enhanced land value by 65% to Rs. 1,94,664 per Are and improvements to Rs. 7,00,000, while not allowing any enhancement for structures. The appellant contends the land should have been categorized under Category No.2 (or higher) due to proximity to the national highway, supported by Advocate Commissioner Ext. C1 which shows a public road to the east and a panchayat road to the south connecting to the highway; the land lies behind properties abutting the highway. The Court re-evaluates the category and fixes the land value at Rs. 2,40,433 per Are (98% over the Category No.2 base of Rs. 1,21,431 per Are), accordingly allowing land compensation and rejecting enhancement for structures/improvements, while upholding statutory benefits under Sections 23(1A) and 23(2) as per Amarjit Singh. The cross-objection by the State is dismissed. The judgment, delivered by a Division Bench on 16.01.2019, clarifies that land value, not orchard fruit, determines compensation in this case.

Provisions of Law Cited

Section 4(1) of the Land Acquisition Act, 1894Section 3(a) of the Land Acquisition Act, 1894Section 23(1A) of the Land Acquisition Act, 1894Section 23(2) of the Land Acquisition Act, 1894

Legal Doctrines & Maxims

  • Gurcharan Singh principle: compensation is for the land value; strict separation of land value and fruit-bearing trees generally not allowed; trees to be valued with reference to land yield and multiplier.
  • Ambya Kalya Mhatre v. State of Maharashtra: when land value is determined on sale statistics or for an orchard, trees may be valued separately; if value is determined on capitalized income by yield, separate addition for land or trees may not arise.
  • State of Punjab v. Amarjit Singh: additional amount under Section 23(1A) and solatium under Section 23(2) are payable only on the market value of the land.

Submissions & Arguments

Contentions of Appellants / Petitioners

Appellants contended that proximity to the national highway and the connecting roads justify placing the land in Category No.2 (or higher) and thus a higher land value. Ext. C1 shows the eastern public road and southern panchayat road linking to the highway, with the subject land just behind the highway-adjacent property. They urged fixation of land value at Rs. 2,40,433 per Are (96–98% uplift over the LAC base for Category No.2), and argued for an enhanced valuation of rubber trees, as well as the applicability of Sections 23(1A) and 23(2) on land value per the Amarjit Singh decision. They relied on LAAs 637/2012, 644/2012 and 764/2011 for proximal comparables and sought rejection of the lower enhancements for structures.

Contentions of Respondents

Respondents contended that the reference court correctly classified the land under Category No.4 and that the cross-claim for Rs. 7,00,000 for improvements (rubber trees) was excessive, arguing that trees should be valued only as timber from the land value context. They relied on Gurcharan Singh to support the view that land value should not double-count tree yield, and asserted that 23(1A) and 23(2) benefits apply solely to the market value of land as per Amarjit Singh. They emphasized that the land value fixation at Category No.4 was appropriate and that the improvements valuation should not be enhanced.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
State of Haryana v. Gurcharan Singh1995 Supp (2) SCC 637Partly Overruled / LimitedAmbya Kalya Mhatre clarifies that the Gurcharan Singh framework is not absolute; separate valuation of trees may be appropriate depending on how land value is determined.
Ambya Kalya Mhatre v. State of Maharashtra(2011) 9 SCC 325PositiveProvides the controlling principle that trees may be valued separately when land value is determined as orchard or on sale statistics; applied to the present case.
State of Punjab v. Amarjit SinghAIR 2011 SC 982PositiveSupports that Section 23(1A) and 23(2) are payable only on market value of land; used to determine statutory benefits in this case.
L.A.A.No.764 of 2011L.A.A.No.764 of 2011PositiveReferenced as a comparable where the Court fixed land value at a higher rate; used to justify the uplift to Rs. 2,40,433 per Are.

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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 V.CHITAMBARESH** **&** **THE HONOURABLE MR. JUSTICE R. NARAYANA PISHARADI** **WEDNESDAY,THE 16TH DAY OF JANUARY 2019 / 26TH POUSHA, 1940** **LA.App..No. 267 of 2015** **AGAINST THE COMMON JUDGMENT AND DECREE DATED 23-07-2014 IN LAR 40/2010 of SUB COURT,ATTINGAL** ## **APPELLANT/CLAIMANT:** **GEETHA VISWANATHAN W/O.VISWANATHAN, RESIDING AT BHASKARA/SREEVALSAM, 37A, BELHAVEN GARDENS, KOWDIAR THIRUVANANTHAPURAM, REPRESENTED BY HER POWER OF ATTORNEY HOLDER S.VISWANATHAN, RESIDING AT BHASKARA/SREEVALSAM, 37A, BELHAVEN GARDENS, KOWDIAR, THIRUVANANTHAPURAM.** **BY ADVS. SRI.V.SURESH SRI.G.SUDHEER** ## **RESPONDENTS/RESPONDENTS:** **1 STATE OF KERALA REPRESENTED BY DISTRICT COLLECTOR, THIRUVANANTHAPURAM – 695 001 2 THE CHIEF EXECUTIVE OFFICER TECHNOPARK, THIRUVANANTHAPURAM – 695 001** **BY ADVS.** **SRI. A.K.SUKUMARAN, SR.GP FOR R1** SMT.RASHMI.K.V. FOR R2 **THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 14.01.2019, ALONG WITH CO.97/2018, THE COURT ON 16.01.2019, DELIVERED THE FOLLOWING:** L.A.A.No.267/2015 & CO No.97/2015 2 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE V.CHITAMBARESH** **&** **THE HONOURABLE MR. JUSTICE R. NARAYANA PISHARADI** **WEDNESDAY,THE 16TH DAY OF JANUARY 2019 / 26TH POUSHA, 1940 CO.No. 97 of 2018 IN LA.App.. 267/2015** **AGAINST THE COMMON JUDGMENT AND DECREE DATED 23-07-2014 IN LAR 40/2010 of SUB COURT,ATTINGAL** ## **CROSS OBJECTOR/1ST RESPONDENT IN LAA** **STATE OF KERALA REPRESENTED BY DISTRICT COLLECTOR, THIRUVANANTHAPURAM – 695 001** **BY SRI. A.K.SUKUMARAN, SR.GP** ## **RESPONDENTS/APPELLANT & 2ND RESPONDENT IN LAA:** > 1 **GEETHA VISWANATHAN W/O.VISWANATHAN, RESIDING AT BHASKARA/SREEVALSAM, 37A, BELHAVEN GARDENS, KOWDIAR THIRUVANANTHAPURAM, REPRESENTED BY HER POWER OF ATTORNEY HOLDER S.VISWANATHAN, RESIDING AT BHASKARA/SREEVALSAM, 37A, BELHAVEN GARDENS, KOWDIAR, THIRUVANANTHAPURAM. -695 003** **THE CHIEF EXECUTIVE OFFICER** 2 **TECHNOPARK, THIRUVANANTHAPURAM – 695 001** **BY ADVS. SRI.G.SUDHEER FOR R1 SMT.K.V.RESHMI FOR R2** **THIS CROSS OBJECTION HAVING BEEN FINALLY HEARD ON 14.01.2019, ALONG WITH LA.App..267/2015, THE COURT ON 16.01.2019 DELIVERED THE FOLLOWING:** L.A.A.No.267/2015 & CO No.97/2015 3 ## **V.CHITAMBARESH &** ## **R.NARAYANA PISHARADI, JJ.** ************************** L.A.A.No.267 of 2015 & Cross Objection No.97 of 2015 ---------------------------------------------Dated this the 16[th] day of January, 2019 ## **JUDGMENT** ## **R.Narayana Pisharadi, J** This appeal arises out of the judgment dated 23.07.2014 passed by the Sub Court, Attingal in L.A.R.No.40 of 2010. 2. An extent of 338.73 Ares of land, owned by the appellant, in Pallippuram Village was acquired for the purpose of development of Electronic Technology Park. Notification under Section 4(1) of the Land Acquisition Act was published on 05.12.2006. The Land Acquisition Officer fixed the value of the land at Rs.1,17,978/- per Are and granted compensation for land at the aforesaid rate. The Land Acquisition Officer also granted an amount of Rs.1,22,664/- towards value of improvements and an amount of Rs.3,26,822/- towards value of the structures in the acquired property. The reference court enhanced the value of the land by 65% and fixed it at the rate of Rs.1,94,664/- per L.A.A.No.267/2015 & 4 CO No.97/2015 Are. The reference court also enhanced the compensation towards the value of the improvements to Rs.7,00,000/-. The reference court did not allow any enhancement with regard to the value of the structures in the acquired property. Dissatisfied with the award passed by the reference court, the claimant has filed this appeal. 3. The State has field cross objection contending that the reference court should not have granted an amount of Rs.7,00,000/- as compensation for the value of the improvements (value of the rubber trees) in the acquired property. 4. We have heard learned counsel for the appellant and the learned Government Pleader and also the learned counsel for the second respondent. We have also perused the records. 5. The land acquired for the development of the Techno Park had been classified into several categories by the Land Acquisition Officer. The dry land lying adjacent to national highway was included in category No.1. The reclaimed land lying adjacent to national highway was included in category No.2. The land lying behind the property situated adjacent to the national highway was included in category No.3. The lands lying adjacent to certain public roads were included in category No.4. L.A.A.No.267/2015 & CO No.97/2015 5 6. The land acquired in the instant case was included in category No.4 for the purpose of fixation of market value of the land. The appellant had raised a plea before the reference court that her land should have been included in any of the other categories for which compensation was granted at a higher rate. This plea was negatived by the reference court finding that the land owned by the claimant had no facilities of such other properties. 7. Learned counsel for the appellant has contended that the land acquired in the instant case should have been atleast included in category No.2 though not in category No.1. Learned counsel has pointed out that the land acquired in the instant case is situated just behind the property lying adjacent to the national highway. Learned counsel would point out that there is a public road on the eastern side of the land acquired and that there is a panchayat road on its southern side which connects the aforesaid public road with the national highway on the western side. 8. Ext.C1 is the report filed by the Advocate Commissioner after inspecting the property acquired. Ext.C1 report and the sketch contained therein show that there is a public road on the eastern boundary of the property acquired and that there is a panchayat road on the southern side which L.A.A.No.267/2015 & 6 CO No.97/2015 connects the aforesaid public road with the national highway on the western side. The sketch contained in Ext.C1 report also shows that the property acquired in the instant case is situated just behind the property abutting the national highway. 9. Considering the proximity of the acquired land to the national highway and also the fact that there exists a panchayat road on the southern boundary of it which connects the public road on the eastern side to the national highway, we are of the considered view that the land acquired in the instant case should be granted compensation at the rate at which it is granted for lands included in Category No.2. 10. The compensation granted by the Land Acquisition Officer for the properties acquired and included in category No.2 is at the rate of Rs.49,063/- per cent which is equivalent to Rs.1,21,431/- per Are. L.A.A.Nos.637 of 2012 and 644 of 2012 relate to the land acquired for the same purpose under the same notification. This Court has refixed the value of the land in those cases based on the judgment of this Court in L.A.A.No.764 of 2011. The land involved in L.A.A.No.764 of 2011 was also in the same village and it was also acquired for the same purpose under the same notification. After evaluating the evidence in L.A.A.No.764 of 2011, this Court had found that the claimant L.A.A.No.267/2015 & 7 CO No.97/2015 therein was entitled to get compensation for land at Rs.1,98,600/- per Are, thereby fixing the value of the land at 98% over and above the rate at which the value of the land was fixed by the Land Acquisition Officer. Therefore, the value of the land in the present case also can be determined at the same rate, that is, at 98% over and above the value of the land fixed by the Land Acquisition Officer for the lands included in category No.2. 11. The value of the land fixed by the Land Acquisition Officer in respect of the lands included in category No.2 is Rs.1,21,431/- per Are. When the value of the land is refixed at 98% above it, it would come to Rs.2,40,433/- per Are. The appellant is entitled to get compensation for land at the aforesaid rate. 12. The appellant has also challenged the finding of the reference court that she is not entitled to get enhancement of compensation in respect of the structures in the acquired property. The appellant had not adduced any evidence before the reference court to substantiate the claim that the value of the building in the acquired property would be more than the amount awarded by the Land Acquisition Officer. In such circumstances, we do not find any ground to interfere with the finding made by L.A.A.No.267/2015 & 8 CO No.97/2015 the reference court that the appellant is not entitled to get enhancement of compensation in respect of the building in the property. 13. The State has filed cross objection contending that the amount of Rs.7,00,000/- awarded by the reference court as compensation for value of the improvements in the acquired property is excessive and exorbitant. On the other hand, the appellant has raised a plea that the rubber trees in the property would have fetched more income. 14. Learned Government Pleader would contend that when compensation is awarded for the land acquired, the owner of the land is entitled to get only the timber value of the trees standing in the property. Learned Government Pleader has relied upon the decision of the Apex Court in **State of Haryana v. Gurcharan Singh : 1995 Supp (2) SCC 637** in support of this contention. 15. In **Gurcharan Singh** (supra), the Hon'ble Supreme Court has held as follows: _“It is settled law that the Collector or the court who determines the compensation for the land as well as fruit-bearing trees cannot determine them separately. The compensation is to the value of the acquired land. The market value is determined on the basis of the yield. Then necessarily applying_ L.A.A.No.267/2015 & CO No.97/2015 9 _suitable multiplier, the compensation needs to be awarded. Under no circumstances the court should allow the compensation on the basis of the nature of the land as well as fruit-bearing trees. In other words, market value of the land is determined twice over; once on the basis of the value of the land and again on the basis of the yield got from the fruitbearing trees. The definition of land includes the benefits which accrue from the land as defined in Section 3(a) of the Act. After compensation is determined on the basis of the value of the land as distinct from the income applying suitable multiplier, then the trees would be valued only as firewood and necessary compensation would be given.”_ 16. However, in **Ambya Kalya Mhatre v. State of Maharashtra** : **(2011) 9 SCC 325** , the Hon'ble Supreme Court has taken note of the aforesaid dictum laid down in **Gurcharan Singh** (supra) and proceeded to hold as follows: _“We are afraid that the High Court has misread the said decision in regard to valuing the land and trees separately. If the land value had been determined with reference to the sale statistics or compensation awarded for a nearby vacant land, then necessarily, the trees will have to be valued separately. But if the value of the land has been determined on the basis of the sale statistics or compensation awarded for an orchard, that is land with fruit-bearing trees, then there is_ L.A.A.No.267/2015 & CO No.97/2015 10 _no question of again adding the value of the trees. Further, if the market value has been determined by capitalising the income with reference to yield, then also the question of making any addition either for the land or for the trees separately does not arise.”_ 17. In the instant case, the value of the acquired land is determined and compensation is awarded for the land only and not as an orchard. Therefore, the trees in the acquired land have to be valued separately. Considering this aspect, the amount of Rs.7,00,000/- awarded by the reference court as value of the rubber trees cannot be found to be excessive. We find that the amount awarded in this regard is just and reasonable. 18. Learned Government Pleader has contended that additional amount under Section 23(1A) and solatium under Section 23(2) of the Land Acquisition Act, 1894 are payable only on the market value of the land and not on any other amount. There is merit in this contention. In **State of Punjab v. Amarjit Singh : AIR 2011 SC 982** , the Apex Court has held so. 19. Consequently, the appeal is allowed in part. The value of the land acquired is refixed at Rs.2,40,433/- (Rupees two lakhs forty thousand four hundred and thirty three only) per Are. The appellant/claimant is entitled to get compensation for land at L.A.A.No.267/2015 & 11 CO No.97/2015 the aforesaid rate. The claim for enhancement of compensation for the improvements and structures in the property acquired is rejected. The appellant is entitled to get the statutory benefits under Sections 23(1A) and 23(2) of the Land Acquisition Act, 1894 but calculated in accordance with the decision of the Supreme Court in **State of Punjab v. Amarjit Singh : 2011(1) KLT 845 (SC)** : **AIR 2011 SC 982** . The cross objection is dismissed. No costs. 20. We make it clear that this judgment shall not be treated as a precedent or basis for claiming compensation for land in any other case. (sd/-) ## **V.CHITAMBARESH, JUDGE** (sd/-) ## **R.NARAYANA PISHARADI, JUDGE** jsr/15/01/2019