High Court of KeralaSingle JudgeWrit petition disposed of; directions issued to...

Holiday Ayurvedic Resorts Pvt. Ltd. v. State of Kerala and Others

Case / Petition Number:WP(C).No. 30926 of 2016 (M)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Shaji P. Chaly
Judgment Date
2016-10-17
Court Decision / Holding
4th respondent is directed to pass a supplementary award in accordance with the provisions of Act 30 of 2013 within four months from the date of receipt of a copy of this judgment. Writ petition disposed of accordingly.
Final Disposition
Writ petition disposed of; directions issued to pass a supplementary award under the 2013 Act within four months; case discusses applicability of the 2013 Act to existing awards under the 1894 Act.

Parties to the Case

Appellants / Petitioners

  • M/S. Holiday Ayurvedic Resorts Pvt. Ltd.

Respondents

  • State of Kerala
  • District Collector, Ernakulam
  • Kochi Metro Rail Ltd
  • Special Tahsildar (LA), No. II, Kochi Metro Rail Project, Ernakulam

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri V. Rajendran (Perumbavoor)
  • • Sri George Varghese Kizhakkambalam
  • • Sri N. Rajesh

Counsels for Respondents

  • • Govt Pleader Sri Jafar Khan Y
  • • Sri K. Jaju Babu, Senior SC
  • • Sri M. U. Vijayalakshmi, SC

Case Synopsis & Summary

Holiday Ayurvedic Resorts Pvt. Ltd. filed a writ petition in the Kerala High Court seeking direction to Respondents 2 (District Collector) and 4 (Special Tahsildar LA) to award compensation for lands acquired for the Kochi Metro Rail Project at the price fixed by the DLPC for the remaining properties—Rs 1,02,000 per cent—and for related reliefs. The petition concerns a dispute over the survey number of 12.75 acres; acquisition proceedings were initiated under the Land Acquisition Act, 1894 and referred to the Sub Court, North Paravur under Section 31(2). The award for the disputed 12.75 acres was lower than the settled price for the adjacent land. After involvement of DLPC, the petitioner’s properties were assigned to the 3rd respondent. The petitioner contends that, in view of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Act 30 of 2013), compensation should be determined under the 2013 Act, and that respondents have acted with inaction by not awarding the amount. The Respondents rely on Varghese MV v. State of Kerala (Division Bench 2015), which held that supplementary awards under the 2013 Act are permissible and that determination must be under Sections 26–30 of Chapter IV and Section 24(1) of the 2013 Act. The court disposed of the petition by directing the 4th respondent to pass a supplementary award under the 2013 Act within four months from the date of receipt of a copy of the judgment, thereby disposing of the writ petition.

Provisions of Law Cited

Land Acquisition Act, 1894Section 31(2) of the Land Acquisition Act, 1894Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Act 30 of 2013)Section 24(1) of the 2013 ActSections 26 to 30 of Chapter IV of the 2013 ActFirst Schedule of the 2013 ActSection 26(2) of the 2013 ActSection 109(2) of the 2013 ActSections 4 and 6 of the 2013 Act

Submissions & Arguments

Contentions of Appellants / Petitioners

Petitioner contends that compensation for the disputed 12.75 acres and other lands should be fixed at the rate determined by the DLPC for the remaining property and argues for applying the 2013 Act to determine compensation, asserting inaction by respondents in awarding the amount. It requests a supplementary award under Act 30 of 2013 and relies on the need to rectify disparity between the 1894 Act award and the 2013 Act framework.

Contentions of Respondents

Respondents contend that compensation must be determined under the 2013 Act where notification under Sections 4 and 6 preceded enforcement, citing the need to follow Sections 26–30 of Chapter IV and Section 24(1) of the 2013 Act. They rely on the Division Bench decision in Varghese MV v. State of Kerala to support a supplementary award under the 2013 Act and argue that rules need not delay the computation of compensation under the Act.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Varghese.M.V. v. State of Kerala and others2015(4) KHC 200PositiveDivision Bench held that compensation determination for lands and supplementary awards under the 2013 Act are permissible after enforcing the Act; the present court follows this approach to direct a supplementary award under the 2013 Act.

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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 SHAJI P.CHALY** **MONDAY, THE 17TH DAY OF OCTOBER 2016/25TH ASWINA, 1938** ## **WP(C).No. 30926 of 2016 (M)** **----------------------------** ## **PETITIONER(S):** **-----------------------** **M/S. HOLIDAY AYURVEDIC RESORTS PVT. LTD., HIG PANAMPILLY NAGAR, KOCHI, REPRESENTED BY ITS DIRECTOR C.C. THAMPI, AGED 58, S/O CHATHUTTY, CHERUVATTOOR, KOTTAL DESOM, THALAPPILLY TALUK.** ## **BY ADVS.SRI.V.RAJENDRAN (PERUMBAVOOR), SRI.GEORGE VARGHESE KIZHAKKAMBALAM, SRI.N.RAJESH.** - **RESPONDENT(S): -------------------------** **1. STATE OF KERALA, REP. BY PRINCIPAL SECRETARY, LOCAL ADMINISTRATION DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695 001.** **2. DISTRICT COLLECTOR, ERNAKULAM, CIVIL STATION, KAKKANAD -682 030.** **3. KOCHI METRO RAIL LTD, REP. BY MANAGING DIRECTOR, REVENUE TOWER, KOCHI-11.** **4. SPECIAL TAHSILDAR (LA), NO.II, KOCHI METRO RAIL PROJECT, ERNAKULAM, KAKKANAD -682 030.** - **R1, R2 & R4 BY GOVT. PLEADER SRI.JAFAR KHAN. Y. R3 BY SRI.K.JAJU BABU , SENIOR SC, ADV. SMT.M.U.VIJAYALAKSHMI, SC.** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17-10-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** rs. **WP(C).No. 30926 of 2016 (M)** ## **APPENDIX** ## **PETITIONER'S EXHIBITS:-** **EXHIBIT P1 TRUE COPY OF THE JUDGMENT IN LAR.20/14 DATED 30.07.2015 OF SUB COURT, NORTH PARAVUR.** - **EXHIBIT P2 TRUE COPY OF THE JUDGMENT IN LAR.47/14 DATED 30.07.2015 OF SUB COURT, NORTH PARAVUR.** - **EXHIBIT P3 TRUE COPY OF PETITION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT ON 29.12.2015.** - **EXHIBIT P4 TRUE COPY OF RECEIPT NO.7630/15 DATED 29.12.2015 ISSUED FOR RECEIVING EXHIBIT P3 PETITION.** **RESPONDENT'S EXHIBITS:NIL.** ## **//TRUE COPY//** ## **P.S. TO JUDGE** rs. ## **SHAJI P. CHALY, J.** ----------------------------------------------- ## **W.P.(C). No.30926 of 2016 ----------------------------------------------Dated this the 17[th] day of October, 2016** ## **JUDGMENT** This writ petition is filed by the petitioner seeking direction to respondents 2 and 4 either to award compensation for properties covered by Exts.P1 and P2, of petitioner company on the basis of the price fixed by DLPC and paid to the petitioner for the remaining properties of the company at the rate of Rs.1,02,000/- per cent and for other related reliefs. 2. Material facts for the disposal of the writ petition are as follows; a portion of the property of the petitioner company was proposed to be acquired by Metro Rail Project. Acquisition proceedings were initiated under Land Acquisition Act, 1894. There arose some dispute regarding survey number of an extent of 12.75 Ares of property and the matter was referred to Sub Court, North Paravur under Section 31(2) of the Act. The matter was settled in the reference case and the award amount was received from the court. Even though W.P.(C). No.30926 of 2016 2 acquisition proceedings were taken with respect to remaining properties, later by interference of DLPC, a purchase price was fixed and the properties were assigned by the company to the 3[rd] respondent. The award passed regarding the disputed 12.75 Ares was much lower than the settled price for the remaining property even though the properties are lying contiguous. Petitioner company filed a petition before the 2[nd] respondent for awarding compensation at the rate fixed by the DLPC for the remaining property. It is thereupon contended, there is total inaction on the part of respondents for awarding the amount. That apart it is also contended, in view of introduction of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, [hereinafter called “Act 30 of 2013”], petitioner is entitled to get compensation as per the provisions of the new Act. It is in this background seeking appropriate direction this writ petition is filed. 3. Heard learned counsel for petitioner, learned Senior Government Pleader and perused the documents on record W.P.(C). No.30926 of 2016 3 and the pleadings put forth by the petitioner. 4. Learned counsel for petitioner reiterated the contentions raised in the writ petition. However, learned Government Pleader has brought my attention to the judgment rendered by a Division Bench of this court in **Varghese.M.V. v. State of Kerala and others** [2015(4) KHC 200], wherein, similar question was considered and held that, petitioner therein is entitled for a supplementary award as per the provisions of Act, 2013. In paragraph 7 to 9, the Division Bench held as follows: “7. We have considered the submission of the learned counsel for the parties and perused the records. In the present case, notification under Sections 4 and 6 having been issued prior to enforcement of Act 2013, determination of amount of compensation has to be made as per Section 24(1) of 2013 Act. Thus, the provisions for determination of amount of compensation are contained in Sections 26 to 30 of Chapter IV of 2013 Act. There cannot be any dispute to the submission of the learned counsel for the appellant that determination of the amount of compensation with regard to petitioner's land has W.P.(C). No.30926 of 2016 4 to be made as per 2013 Act. Now, an award has been declared by the State Government dated 29.01.2014. A perusal of the content of the award clearly indicates that the said award is not on the basis of the provisions for determination of the amount of compensation as per Sections 26 to 30 of the 2013 Act. The learned Government Pleader is also not disputing the factual position that the award Ext.P1 is not in accordance with the 2013 Act. He submits that difficulty was being faced by the State in preparing the award as per the 2013 Act on account of the non-framing of the rules and non-notification of multiplier factor. Section 26(2), reference of which has been made by the parties, is extracted below: **“26(2).** The market value calculated as per subsection (1) shall be multiplied by a factor to be specified in the First Schedule.” 8. The First Schedule refers to compensation for land owners and a perusal of item Nos.3 to 7 of the First Schedule indicates that there is no requirement of any notification or any multiplier factor for determining the compensation. There is no dispute between the parties about the fact that the petitioner's land is situated in the urban area. Section 109 of the 2013 Act gives power to the State Government to make rules for carrying out W.P.(C). No.30926 of 2016 5 the provisions of the Act. Sub-section (2) of Section 109 enumerate the matters on which rules can be framed 9. The Act 2013 having been enforced, all provisions of the Act have to be given effect to. That the State has not framed rules cannot be the reason for not carrying out the provisions of the Act nor for taking away the right accrued to the owner under the 2013 Act under the pretext that rules have not been framed by the State. In any view of the matter, for the determination of the amount of compensation in the present case, there is no necessity for awaiting the framing of the rules by the State and the determination of the amount of compensation as per the 2013 Act could have been very well carried out by the respondents.” 5. On a reading of the said judgment, it is evident that, without setting aside the award, the authority is given the liberty to pass a supplementary award. This may be also due to the fact that as per the award passed under the Land Acquisition Act, 1894, petitioner therein received money. Here also, the case is similar. Therefore, in spite of the W.P.(C). No.30926 of 2016 6 passage of award under the provisions of Act, 1894, the 4[th] respondent is directed to pass a supplementary award taking note of the provisions contained under Act 30 of 2013. Since the matter is pending long, I think it is only appropriate that, a time limit is fixed to pass the supplementary award in terms of the directions contained above. 6. Therefore, 4[th] respondent is directed to pass the supplementary award in accordance with the directions contained above and as directed by the Division Bench of this court quoted above, within a period of four months from the date of receipt of a copy of this judgment. Writ petition is disposed of accordingly. Sd/- **SHAJI P. CHALY JUDGE** smv 17.10.2016