High Court of KeralaDivision BenchAppeal partly allowed; enhanced compensation fi...

K. HRISHIKESAN AND LETHA DEVI v. STATE OF KERALA

Case / Petition Number:L.A.A.No.221/2018

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • V. Chitambaresh
  • R. Narayana Pisharadi
Judgment Date
2019-01-29
Court Decision / Holding
Appeal allowed in part. The value of the land acquired is refixed at Rs. 47,86,127 per Are (Rupees forty-seven lakhs eighty-six thousand one hundred twenty-seven only) with all statutory benefits on the enhanced amount. No costs in the appeal.
Final Disposition
Appeal partly allowed; enhanced compensation fixed at Rs. 47,86,127 per Are with statutory benefits; no costs.

Parties to the Case

Appellants / Petitioners

  • K. Hrishikesan
  • Letha Devi

Respondents

  • State of Kerala represented by the District Collector, Thiruvananthapuram, Collectorate, Kudappanakkunnu, Thiruvananthapuram-695043
  • Sri. T.K. Shajahan - Senior Government Pleader

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. Harikumar J.

Counsels for Respondents

  • • Adv. T.K. Shajahan - Sr. GP

Case Synopsis & Summary

This High Court of Kerala, Thiruvananthapuram, heard LA Appeal No. 221/2018 challenging the Reference Court’s award in L.A.R. No. 222/2012 for 7.95 acres acquired for the development of the Super Specialty Block of the Medical College Hospital, Thiruvananthapuram. The notification under Section 4(1) of the Land Acquisition Act was published on 24 February 2010. The Land Acquisition Officer fixed compensation at Rs. 7,40,404 per Are; the reference court enhanced to Rs. 30,00,000 per Are. The appellants contended that, despite the hospital’s proximity, the sale of adjacent property two years after notification (Ext. A1) should be excluded under Maya Devi v. State of Haryana, and that the comparables in Ext. A6 and other judgments show higher potential for development and thus higher market value. The Advocate Commissioner’s Ext. C1 noted the land lies near the hospital; however, the court found Ext C1’s statement that the land is inside the hospital compound incorrect and relied on boundary and road details indicating its adjacency to hospital premises. The court applied Pehlad Ram’s principle of 10-15% annual increase, considered nearby comparables, and ultimately refixed the land value at Rs. 47,86,127 per Are, while granting statutory benefits on the enhanced amount. The appeal was allowed in part; no costs.

Provisions of Law Cited

Section 4(1) of the Land Acquisition Act, 1894

Legal Doctrines & Maxims

  • Post-notification sale transactions cannot be taken into consideration for determining compensation (Maya Devi v. State of Haryana, AIR 2018 SC 645)
  • Cumulative increase of 10-15% per year on the market value of the land can be accepted unless proven otherwise (Pehlad Ram v. Haryana Urban Development Authority, AIR 2014 SC 793)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argue that the compensation fixed by the Reference Court does not reflect true market value given the land’s location and development potential, being in front of the Medical College Hospital with good access and proximity to future development. They contend Ext. A6 (a nearby comparable) and other judgments support a higher valuation than the Reference Court’s Rs. 30,00,000 per Are. Ext. A1’s post-notification sale (Rs. 3.10 Crores for 6.34 Ares in 2012) should be excluded per Maya Devi, and Ext. C1 shows the land’s boundary context, not inside the hospital compound. They rely on Ext. A4/A6 judgments and the two-year eight-month gap from notification to justify a 10-15% per year increase, yielding about Rs. 47,86,127 per Are. They request enhancement to that level and corresponding statutory benefits.

Contentions of Respondents

The respondents contend compensation should be guided by robust nearby comparables (Ext. A6) and that Ext. A1 post-notification sale should be excluded per Maya Devi. They argue the land’s location, while near a hospital, does not automatically raise value beyond the established comparisons, and Ext. A6 (different village) provides a more consistent benchmark. They emphasize the need to rely on similar localities and caution against extrapolating beyond comparable data, seeking to limit increases and retain the Reference Court’s framework unless a modest uplift is justified.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Maya Devi v. State of HaryanaAIR 2018 SC 645PositivePost-notification sale transactions cannot be taken into consideration for determining compensation, guiding exclusion of Ext. A1.
Pehlad Ram v. Haryana Urban Development AuthorityAIR 2014 SC 793PositiveAffirms a cumulative increase of 10-15% per year on market value, used to adjust value over time between notification and valuation.

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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** **TUESDAY ,THE 29TH DAY OF JANUARY 2019 / 9TH MAGHA, 1940** **LA.App..No. 221 of 2018** **AGAINST THE JUDGMENT AND DECREE IN LAR 222/2012 of SECOND ADDITIONAL SUB COURT,THIRUVANANTHAPURAM DATED 27-01-2018** ## **APPELLANTS/CLAIMANTS:** **1 K.HRISHIKESAN AGED 86 YEARS POURNAMI, VIKAS LANE 66, T.C 12/1309, KUNNUKUZHY, VANCHIYOOR, THIRUVANANTHAPURAM-695035.** **2 LETHA DEVI AGED 82 YEARS W/O. HRISHIKESAN, POURNAMI, VIKAS LANE 66, T.C 12/1309, KUNNUKUZHY, VANCHIYOOR, THIRUVANANTHAPURAM695035.** **BY ADV. HARIKUMAR J.** ## **RESPONDENT/RESPONDENT** **STATE OF KERALA REPRESENTED BY THE DISTRICT COLLECTOR, THIRUVANANTHAPURAM, COLLECTORATE, KUDAPPANAKKUNNU, THIRUVANANTHAPURAM-695043.** **SRI. T.K.SHAJAHAN-SR.GP** **THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 21.01.2019, THE COURT ON 29.01.2019 DELIVERED THE FOLLOWING:** L.A.A.No.221/2018 2 ## **V.CHITAMBARESH &** ## **R.NARAYANA PISHARADI, JJ.** ************************** L.A.A.No.221 of 2018 ---------------------------------------------Dated this the 29[th] day of January, 2019 ## **JUDGMENT** ## **R.Narayana Pisharadi, J** This appeal arises out of the judgment dated 27.01.2018 passed by the Sub Court, Thiruvananthapuram in L.A.R.No.222/2012. 2. An extent of 7.95 Ares of land, owned by the appellants, situated in Cheruvaykal Village in Thiruvananthapuram Taluk, was acquired for the development of the Super Specialty Block of the Medical College Hospital, Thiruvananthapuram. The notification under Section 4(1) of the Land Acquisition Act, 1894 was published on 24.02.2010. The Land Acquisition Officer granted compensation by fixing the value of the land at Rs.7,40,404/- per Are. The reference court enhanced the amount of compensation by refixing the value of L.A.A.No.221/2018 3 the land at Rs.30,00,000/- per Are. Dissatisfied with the award passed by the reference court, the claimants have filed this appeal. 3. We have heard the learned counsel for the appellants and the learned Government Pleader. We have also perused the records. 4. In the proceedings before the reference court, AW1 and AW2 were examined and Exts.A1 to A7 and Exts.C1 and C1(a) documents were marked on the side of the appellants/claimants. No evidence was adduced by the respondents. 5. Ext.C1 is the report filed by the Advocate Commissioner after inspecting the property acquired and some other properties. It is stated in Ext.C1 report that the property acquired is situated inside the compound of the Medical College Hospital, Thiruvananthapuram. This observation made by the Advocate Commissioner cannot be correct. Even the claimants have no case that the property acquired is situated inside the compound of the Medical College Hospital. When examined as L.A.A.No.221/2018 4 AW1, the first appellant has stated before the reference court that the property acquired is situated in front of the Super Specialty Block of the Medical College Hospital as its boundary. The very fact that the property was acquired for the development of the Super Specialty Block would also indicate that it was lying adjacent to the Medical College Hospital. 6. Ext.C1 report of the Advocate Commissioner shows that there is a tarred road having a width of 8 metres on the western boundary of the property acquired. It is also stated in Ext.C1 report that the aforesaid road joins Medical College – Ulloor road which is situated at a distance of 75 metres from the acquired property. There is also another road having a width of 4 metres which starts from the north-eastern corner of the property acquired. 7. Ext.A1 is the copy of sale deed No.155/2012. This document shows that on 12.01.2012, an extent of 6.34 Ares of land (15.670 cents) was sold for a total consideration of three crores and ten lakhs rupees. However, the fact remains that the transaction as per Ext.A1 document took place nearly two years L.A.A.No.221/2018 5 after the date of publication of the notification of acquisition. In **Maya Devi v. State of Haryana : AIR 2018 SC 645** , the Apex Court has categorically held that post notification sale transactions cannot be taken into consideration for determining compensation of the acquired land. Therefore, Ext.A1 document cannot be taken into consideration for determining the market value of the acquired property. 8. Ext.A2 is the copy of the notification fixing the fair value of the lands in Cheruvaykal Village. This document shows that the fair value of the property for the purpose of stamp duty has been fixed by the Government depending upon the nature of the property. The claimants do not rely upon this document for fixing the market value of the land acquired. 9. Ext.A3 is the copy of the judgment of the reference court in L.A.R.No.417/2009. Ext.A4 is the copy of the judgment of this Court in the appeal L.A.A.No.232/2012. This appeal was preferred against the award passed by the reference court in L.A.R.No.417/2009. Ext.A4 judgment would show that in respect of the property acquired for the widening of Pattom – Medical L.A.A.No.221/2018 6 College road, this Court had fixed the value of the land at Rs.24,17,100/- per Are. The date of publication of the notification of acquisition in that case was 24.12.2004. The aforesaid property is situated in a different village. Therefore, it is not proper to fix the market value of the land acquired in the instant case on the basis of Ext.A4 judgment. 10. Ext.A5 is the copy of the judgment of the reference court in L.A.R.No.958/2009. Ext.A6 is the copy of the judgment of this Court in L.A.A.No.162/2013. This appeal was preferred against the award passed by the reference court in L.A.R.No.959/2009. Ext.A6 judgment relates to acquisition of property for the purpose of widening of Ulloor – Akkulam – Kuzhivilla National Highway Bypass road. The value of the land in that case was fixed by this Court at Rs.32,90,000/- per Are. The land acquired in the aforesaid case is situated in the same village. Ext.C1 report of the Advocate Commissioner shows that the land acquired in that case is situated at about 600 metres from the property acquired in the instant case. Considering the fact that the property acquired in the aforesaid case is situated in L.A.A.No.221/2018 7 the same village and in the nearby locality, the market value of the land acquired in the instant case can be fixed on the basis of the value of the land fixed by this Court in Ext.A6 judgment. 11. The date of notification of acquisition in respect of the property covered by Ext.A6 judgment was 01.06.2007. In the instant case, the date of publication of the notification of acquisition is 24.02.2010. There is a gap of two years and eight months between the two dates. A cumulative increase of 10 to 15% per year on the market value of the land can be accepted unless the State agencies or the acquiring authority prove otherwise (See **Pehlad Ram v. Haryana Urban Development Authority : AIR 2014 SC 793)** . If the value of the land fixed by this Court in Ext.A6 judgment is increased by 15% per year on cumulative basis for a period of two years and eight months, it would come to Rs.47,86,127/- per Are. We are of the view that awarding compensation for the land acquired at this rate would be just and reasonable. 12. Learned counsel for the appellants contended that the property acquired was a land having more commercial L.A.A.No.221/2018 8 importance than the land involved in Ext.A6 judgment and therefore, the value of the land acquired in the instant case has to be increased and fixed at one crore rupees per Are. We are not convinced of this argument. Ext.C1 report of the Advocate Commissioner only states that the potential for development of the land acquired is more than the land covered by Ext.A6 judgment. We take note of the fact that the land covered by Ext.A6 judgment was lying on the side of a National Highway Bypass road and it was acquired for the purpose of widening that road. The land acquired is situated just in front of the Medical College Hospital. It cannot have the commercial importance of a land which is situated on the side of a National Highway Bypass road. We also take note of the fact that being a property situated just in front of a hospital, the land acquired has got its own disadvantages also. Many persons may not prefer to purchase such a property. 13. At this juncture, we also take note of the fact that even in respect of the property covered by Ext.A1 document, which was sold almost two years after the date of publication of L.A.A.No.221/2018 9 the notification of acquisition and which is lying only at a distance of 100 metres from the acquired property, the consideration paid was only Rs.48,89,589/- per Are. 14. Accordingly, the appeal is allowed in part. The value of the land acquired is refixed at Rs.47,86,127/- (Rupees forty seven lakhs eighty six thousand one hundred and twenty seven only) per Are. The appellants/claimants are also entitled to get all other statutory benefits on the basis of the enhanced amount of compensation for land. No costs in the appeal. (sd/-) ## **V.CHITAMBARESH, JUDGE** (sd/-) **R.NARAYANA PISHARADI, JUDGE** jsr/23/01/2019 True Copy PS to Judge