High Court of KeralaDivision BenchAppeals and cross objections dismissed; no costs

L.A.A.Nos. 557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos. 69 of 2012, 13 of 2013 and 14 of 2013, High Court of Kerala at Ernakulam

Case / Petition Number:LA.App. No. 557 of 2011; LA.App. No. 563 of 2011; LA.App. No. 565 of 2011; CO. No. 69 of 2012; CO. No. 13 of 2013; CO. No. 14 of 2013
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • V. Chitambaresh
  • R. Narayana Pisharadi
Judgment Date
2019-02-04
Court Decision / Holding
Appeals and cross objections dismissed. No costs.
Final Disposition
Appeals and cross objections dismissed; no costs

Parties to the Case

Appellants / Petitioners

  • George, S/o Kalaparam Bath Joseph
  • Shamsha Begum W/o Subair
  • Habbebullah S/o Saidu Mohammed Madathipparambil
  • Shamsa Beegum W/o Subair
  • Jasmine W/o Mohammed Iqbal Madathipparambil

Respondents

  • The District Collector, Thrissur
  • The Secretary Mala Grama Panchayat, Mala P.O

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. T. N. Manoj

Counsels for Respondents

  • • Sri. T. K. Shajahan
  • • Sri. Philip T. Varghese
  • • Sri. Thomas T. Varghese
  • • Sri. Achu Subha Abraham
  • • Sri. V. T. Litha

Case Synopsis & Summary

These land acquisition appeals involve land in Vadama Village, Mala acquired for a public market by Mala Grama Panchayat. Notification under Section 4(1) of the Land Acquisition Act, 1894 was issued on 09.04.2006. The Land Acquisition Officer fixed compensation at Rs. 1,17,000 per Are, which the Reference Court enhanced to Rs. 1,85,250 per Are (Rs. 75,000 per cent). The claimants challenged the award, relying on Exts. A1 and A3 to show higher values (with Ext A3 being a post-notification sale) and Ext A4 showing a 2003 sale for 12 cents at Mala Junction. The Mala Grama Panchayat filed cross-objections challenging the enhancement. The court noted that the claimants did not bring commissions to prove locality and similarity of the basic land, and that Ext A3 (post-notification) cannot be used as a basis for market value in light of Maya Devi v. State of Haryana. Ext A4’s value at Rs. 47,500 per cent was treated as the baseline. Citing Pehlad Ram v. Haryana Urban Development Authority, the court applied a cumulative 15% per year increase over two years and four months (approx. Rs. 65,174 per cent). The reference court’s higher award was not held to be justified, and the appeals and cross-objections were dismissed with no costs.

Provisions of Law Cited

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

Legal Doctrines & Maxims

  • Maya Devi v. State of Haryana (AIR 2018 SC 645) - post-notification transactions cannot be taken into consideration for fixation of market value
  • Pehlad Ram v. Haryana Urban Development Authority (AIR 2014 SC 793) - cumulative increase of 10-15% per year in market value may be accepted; used to compute permissible enhancement

Submissions & Arguments

Contentions of Appellants / Petitioners

The claimants contended that the compensation fixed by the Land Acquisition Officer was inadequate and urged enhancement based on comparable pre-notification values. They produced Exts A1 and A3 and Ext A4 to show higher land values and argued the basic land’s proximity to Mala Junction conferred greater value. They acknowledged the need for credible evidence and criticized the use of post-notification transactions (Ext A3) as basis. They argued the lands were commercially significant and within a locality with greater importance, which warranted higher compensation. They did not effectively prove similarity of basic lands via commission.

Contentions of Respondents

The respondents contended that the reference court correctly judged the evidence, emphasizing that Ext A3 is post-notification and Maya Devi requires exclusion of such data. They argued that Ext A4’s baseline of Rs. 47,500 per cent was appropriate and that the claimants failed to prove locality comparables with commissions. They invoked the 10–15% per year doctrine (Pehlad Ram) to justify the level of permissible enhancement while noting the cross-objections challenge the enhancement.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Maya Devi v. State of HaryanaAIR 2018 SC 645PositivePost-notification transactions cannot be considered for fixation of market value; court applies this principle to reject reliance on Ext A3.
Pehlad Ram v. Haryana Urban Development AuthorityAIR 2014 SC 793PositiveApex Court permits a cumulative 10-15% per year increase in market value; used to cap permissible enhancement to Rs. 65,174 per cent.

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Extracted Judgment Text

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## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE V.CHITAMBARESH** ## **&** **THE HONOURABLE MR. JUSTICE R. NARAYANA PISHARADI** **MONDAY ,THE 04TH DAY OF FEBRUARY 2019 / 15TH MAGHA, 1940** **LA.App..No. 557 of 2011** **AGAINST THE DECREE AND JUDGMENT DATED 18-03-2011 IN LAR 15/2008 of THE ADDITIONAL SUB COURT,IRINJALAKUDA** ## **APPELLANT/CLAIMANT** **GEORGE, S/O.KALAPARAMBATH JOSEPH, MALA DESOM, VADAMA VILLAGE,, MUKUNDAPURAM TALUK, THRISSUR DISTRICT.** **BY ADV. SRI.T.N.MANOJ** ## **RESPONDENTS/RESPONDENTS:** **1 THE DISTRICT COLLECTOR,THRISSUR** **2 THE SECRETARY MALA GRAMA PANCHAYAT, MALA P.O** **SR.GOVERNMENT PLEADER SRI.T.K.SHAJAHAN FOR R1 SRI.PHILIP T.VARGHESE FOR R2 SRI.THOMAS T.VARGHESE FOR R2 SMT.ACHU SHUBHA ABRAHAM FOR R2 SMT.V.T.LITHA FOR R2** **THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 28.01.2019, ALONG WITH LA.App..563/2011, LA.App..565/2011, CO.14/2013, CO.13/2013, CO.69/2012, THE COURT ON 04.02.2019 DELIVERED THE FOLLOWING:** 2 L.A.A.Nos.557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos.69 of 2012, 13 of 2013 and 14 of 2013 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE V.CHITAMBARESH** ## **&** **THE HONOURABLE MR. JUSTICE R. NARAYANA PISHARADI** **MONDAY ,THE 04TH DAY OF FEBRUARY 2019 / 15TH MAGHA, 1940** **LA.App..No. 563 of 2011** **AGAINST THE DECREE AND JUDGMENT DATED 18-03-2011 IN LAR 16/2008 of THE ADDITIONAL SUB COURT,IRINJALAKUDA** ## **APPELLANTS/CLAIMANTS:** - **1 SHAMSHA BEGUM W/O SUBAIR, CHEENIKAPURATH HOUSE,, THEKKUMURI VILLAGE,, PUTHENCHIRA.** - **2 HABBEBULLAH S/O SAIDU MOHAMMED MADATHIPARAMBIL HOUSE,, THOTTAKKATTUKARA, ALUVA. BY ADV. SRI.T.N.MANOJ** ## **RESPONDENTS/RESPONDENTS:** - **1 DISTRICT COLLECTOR,THRISSUR THRISSUR-680 001, AYYANTHOLE.P.O** - **2 THE SECRETARY MALA GRAMA PANCHAYAT MALA PO,, PIN-680236.** **SR.GOVERNMENT PLEADER SRI.T.K.SHAJAHAN FOR R1 SMT.V.T.LITHA FOR R2** **SRI.PHILIP T.VARGHESE FOR R2 SRI.THOMAS T.VARGHESE FOR R2 SMT.ACHU SUBHA ABRAHAM FOR R2** **THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 28.01.2019, ALONG WITH LA.App..557/2011, LA.App..565/2011, CO.14/2013, CO.13/2013 AND CO.69/2012, THE COURT ON 04.02.2019 DELIVERED THE FOLLOWING:** 3 L.A.A.Nos.557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos.69 of 2012, 13 of 2013 and 14 of 2013 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE V.CHITAMBARESH** ## **&** **THE HONOURABLE MR. JUSTICE R. NARAYANA PISHARADI** **MONDAY ,THE 04TH DAY OF FEBRUARY 2019 / 15TH MAGHA, 1940** **LA.App..No. 565 of 2011** **AGAINST THE DECREE AND JUDGMENT DATED 18-03-2011 IN LAR 17/2008 of THE ADDITIONAL SUB COURT,IRINJALAKUDA** ## **APPELLANTS/CLAIMANTS:** - **1 SHAMSA BEEGUM, W/O.SUBAIR, CHEENIKAPURATH HOUSE, THEKKUMURI VILLAGE,, PUTHENCHIRA.** **2 JASMINE W/O MOHAMMED IQBAL MADATHIPARAMBIL HOUSE, TOTTAKKATTUKARA, ALUVA. BY ADV. SRI.T.N.MANOJ** ## **RESPONDENTS/RESPONDENTS:** - **1 DISTRICT COLLECTOR THRISSUR PIN 678001.** - **2 THE SECRETARY MALA GRAMA PANCHAYAT MALA P.O., 678503.** **SR.GOVERNMENT PLEADER SRI.T.K.SHAJAHAN FOR R1 SMT.V.T.LITHA FOR R2** **SRI.PHILIP T.VARGHESE FOR R2 SRI.THOMAS T.VARGHESE FOR R2 SMT.ACHU SUBHA ABRAHAM FOR R2** **THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 28.01.2019, ALONG WITH LA.App..563/2011, LA.App..557/2011, CO.14/2013, CO.13/2013, CO.69/2012, THE COURT ON 04.02.2019 DELIVERED THE FOLLOWING:** 4 L.A.A.Nos.557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos.69 of 2012, 13 of 2013 and 14 of 2013 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE V.CHITAMBARESH** ## **&** ## **THE HONOURABLE MR. JUSTICE R. NARAYANA PISHARADI** **MONDAY ,THE 04TH DAY OF FEBRUARY 2019 / 15TH MAGHA, 1940** ## **CO.No. 69 of 2012 IN LA.App.. 565/2011** (AGAINST THE DECREE AND JUDGMENT DATED 18/03/2011 IN LAR NO.17/2008 OF THE ADDITIONAL SUB COURT, IRINJALAKKUDA) ## **CROSS OBJECTOR/RESPONDENT NO.2:** **THE SECRETARY, MALA GRAMA PANCHAYAT MALA.P.O.** **SMT.V.T.LITHA SRI.PHILIP T.VARGHESE SRI.THOMAS T.VARGHESE SMT.ACHU SUBHA ABRAHAM** ## **RESPONDENTS/APPELLANTS & 1ST RESPONDENT:** **1 SHAMSA BEEGUM W/O.SUBAIR, CHEENIKAPURATH HOUSE, THEKKUMURI VILLAGE, PUTHENCHIRA.** - **2 JASMINE W/O MOHAMMED IQBAL MADATHIPARAMBIL HOUSE, TOTTAKKATTUKARA, ALUVA.** - **3 THE DISTRICT COLLECTOR, THRISSUR** **SRI.T.N.MANOJ FOR R1 AND R2 SR.GOVERNMENT PLEADER SRI.T.K.SHAJAHAN FOR R3** **THIS CROSS OBJECTION HAVING BEEN FINALLY HEARD ON 28.01.2019, ALONG WITH LA.App..557/2011, LA.App..563/2011, LA.App.565/2011, CO.14/2013, CO.13/2013, THE COURT ON 04.02.2019 DELIVERED THE FOLLOWING:** 5 L.A.A.Nos.557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos.69 of 2012, 13 of 2013 and 14 of 2013 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE V.CHITAMBARESH** ## **&** ## **THE HONOURABLE MR. JUSTICE R. NARAYANA PISHARADI** **MONDAY ,THE 04TH DAY OF FEBRUARY 2019 / 15TH MAGHA, 1940** **CO.No.13 of 2013 IN LA.App.. 563/2011** **AGAINST THE JUDGMENT AND DECREE DATED 18.03.2011 IN LA.R.16/2008 of ADDITIONAL SUB COURT, IRINJALAKKUDA** ## **CROSS OBJECTOR/RESPONDENT NO.2:** **THE SECRETARY, MALA GRAMA PANCHAYAT MALA.P.O.** **SMT.V.T.LITHA SRI.PHILIP T.VARGHESE SRI.THOMAS T.VARGHESE SMT.ACHU SUBHA ABRAHAM** ## **RESPONDENTS/APPELLANT & 1ST RESPONDENT:** **1 THE DISTRICT COLLECTOR, THRISSUR – 680 003. 2 SHAMSA BEEGUM W/O.SUBAIR, CHEENIKAPURATH HOUSE, THEKKUMURI VILLAGE, PUTHENCHIRA 680 743 3 HABBEBULLAH, S/O.SAIDU MOHAMMED, MADATHIPARAMBIL HOUSE, THOTTAKKATTUKARA, ALUVA – 683101.** **SR.GOVERNMENT PLEADER SRI.T.K.SHAJAHAN FOR R1 SRI.T.N.MANOJ FOR R2 AND R3** **THIS CROSS OBJECTION HAVING BEEN FINALLY HEARD ON 28.01.2019, ALONG WITH LA.App..557/2011, LA.App..563/2011, LA.App.565/2011 CO.69/2012, CO.14/2013, THE COURT ON 04.02.2019 DELIVERED THE FOLLOWING:** 6 L.A.A.Nos.557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos.69 of 2012, 13 of 2013 and 14 of 2013 **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE V.CHITAMBARESH** ## **&** ## **THE HONOURABLE MR. JUSTICE R. NARAYANA PISHARADI** **MONDAY ,THE 04TH DAY OF FEBRUARY 2019 / 15TH MAGHA, 1940** **CO.No. 14 of 2013 IN LA.App.. 557/2011** **AGAINST THE JUDGMENT AND DECREE DATED 18.03.2011 IN LA.R.15/2008 of ADDITIONAL SUB COURT, IRINJALAKKUDA** ## **CROSS OBJECTOR/RESPONDENT NO.2:** **THE SECRETARY, MALA GRAMA PANCHAYAT MALA.P.O.** **SRI.PHILIP T.VARGHESE SRI.THOMAS T.VARGHESE SMT.ACHU SHUBHA ABRAHAM SMT.V.T.LITHA** ## **RESPONDENTS/APPELLANT & 1ST RESPONDENT:** **1 GEORGE, S/O.KALAPARAMBATH JOSEPH, MALA DESOM, VADAMA VILLAGE,, MUKUNDAPURAM TALUK, THRISSUR DISTRICT - 680 732 2 THE DISTRICT COLLECTOR, THRISSUR – 680 003.** **3 SR.GOVERNMENT PLEADER SRI.T.K.SHAJAHAN FOR R2 SRI.T.N.MANOJ FOR R1** **THIS CROSS OBJECTION HAVING BEEN FINALLY HEARD ON 28.01.2019, ALONG WITH LA.App..557/2011, LA.App..563/2011, LA.App.565/2011 CO.69/2012, CO.13/2013, THE COURT ON 04.02.2019 DELIVERED THE FOLLOWING:** 7 L.A.A.Nos.557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos.69 of 2012, 13 of 2013 and 14 of 2013 ## **V.CHITAMBARESH &** ## **R.NARAYANA PISHARADI, JJ.** ************************** L.A.A.Nos.557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos.69 of 2012, 13 of 2013 and 14 of 2013 ---------------------------------------------Dated this the 4[th] day of February, 2019 ## **J U D G M E N T** ## **R.Narayana Pisharadi, J** These appeals are filed challenging the common judgment dated 18.03.2011 passed by the Sub Court, Irinjalakkuda in L.A.R.Nos.15/2008 to 17/2008. 2. The lands owned by the appellants, situated in Vadama Village, were acquired for the purpose of construction of a public market for Mala Grama Panchayat. Notification under Section 4(1) of the Land Acquisition Act, 1894 was published on 09.04.2006. The Land Acquisition Officer granted compensation for land by fixing the value of the land at Rs.1,17,000/- per Are. The reference court enhanced the compensation by refixing the value of the land at Rs.75,000/- per cent (Rs.1,85,250/- per Are). Dissatisfied with the L.A.A.Nos.557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos.69 of 2012, 13 of 2013 and 14 of 2013 8 award passed by the reference court, the claimants have filed these appeals. The Mala Grama Panchayat has filed cross objections in the appeals challenging the enhancement of compensation made by the reference court. 3. We have heard the learned counsel for the appellants and the learned Government Pleader and also the learned counsel for the requisitioning authority. We have also perused the records. 4. At the outset, we may notice that the claimants did not take out any commission to bring to the notice of the court the nature and location of the acquired lands and also the properties covered by the documents relied upon by them in support of their plea for enhancement of compensation. 5. The Land Acquisition Officer adopted the value of the land shown in Ext.A4 document (which has also been marked as Ext.R6) as the basis for fixation of the market value of the lands acquired. Ext.A4 is the copy of the document No.2675/2003. It shows that on 29.12.2003, 12 cents (29.64 Ares) of land situated in Vadama Village was sold by its owner for a total consideration of Rs.5,70,000/-. The land value paid as per this document comes to Rs.47,500/- per cent. The description of the property given in Ext.A4 document shows that 9 L.A.A.Nos.557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos.69 of 2012, 13 of 2013 and 14 of 2013 there is a public road on its northern side. 6. Exts.A1 and A3 are the documents produced by the claimants before the reference court in support of their claim for enhancement of compensation for land. 7. Ext.A1 is the copy of document No.516/2005. As per this document, on 03.03.2005, 12 cents of property in Vadama Village was sold for a total consideration of Rs.8,75,000/-. This property consisted of a building and a well and a motor. The value of the land alone shown in this document is Rs.6,00,000/-, that is, Rs.50,000/- per cent. 8. Ex.A3 is the copy of document No.2623/2007. As per this document, on 07.08.2007, 30 cents of property situated in Vadama Village was sold for a total consideration of Rs.30,00,000/-. The land value paid as per this document would come to Rs.1,00,000/- per cent. This is a post notification transaction. The reference court deducted the land value shown in this document by 25% and fixed the market value of the lands acquired. 9. In **Maya Devi v. State of Haryana (AIR 2018 SC 645)** , the Apex Court has categorically held that post notification transactions cannot be taken into consideration for fixing the market L.A.A.Nos.557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos.69 of 2012, 13 of 2013 and 14 of 2013 10 value of the land acquired for granting compensation. Therefore, the value of the land shown in Ext.A3 document, it being a post notification transaction, cannot be adopted as the basis for fixation of the market value of the lands acquired. The reference court has relied upon the value of the land shown in Ext.A3 document, though it is a post notification transaction, as the basis for fixation of the value of the lands acquired. The procedure adopted by the reference court appears to be not proper in the light of the decision of the Supreme Court in **Maya Devi** (supra). 10. The value of the land shown in Ext.A1 document also cannot be adopted as the basis for fixation of the market value of the lands acquired. Even in examination-in-chief, one of the claimants who was examined as AW1, has stated that the property covered by Ext.A1 document is situated at a distance of three kilometres from Mala Junction. The owner of the land mentioned in Ext.A1 document was examined as AW2. He has also stated that his property is lying at a distance of three kilometres from Mala Town. It will not be proper to adopt the value of a land situated at such a distance as the basis for fixation of the market value of the lands acquired. 11. The claimants are expected to give cogent and proper L.A.A.Nos.557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos.69 of 2012, 13 of 2013 and 14 of 2013 11 evidence in support of their claim for enhancement of compensation. The burden is on the claimants to establish that the amount awarded to them by the Land Acquisition Officer is inadequate and that they are entitled to get more amount. In the instant cases, the claimants did not even take out a commission to prove that the basic land (land covered by Ext.A4 document) is not similar and similarly situated. 12. On the other hand, when examined as AW1, one of the claimants has admitted that the basic land is situated in a locality having importance. He would even say that the basic land is situated in a locality having more importance than the locality in which the acquired lands are situated. True, he has stated in examination-inchief that the basic land is situated at a distance of one kilometre away from Mala Junction. As noticed earlier, he did not take out a commission to prove that fact. His statement in examination-in-chief that, the basic land is situated at a distance of one kilometre from Mala Town, has been successfully challenged in the cross-examination. AW1 has stated in cross-examination that the basic land is situated at Mala Junction. In such circumstances, the value of the basic land, as shown in Ext.A4 document, can be adopted as the basis for fixation of the market value of the lands acquired. L.A.A.Nos.557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos.69 of 2012, 13 of 2013 and 14 of 2013 12 13. The value of the land shown in Ext.A4 document is Rs.47,500/- per cent. The date of the transaction mentioned in Ext.A1 document is 29.12.2003. The date of publication of notification in the instant case is 09.04.2006. There is an interval of two years and three months between the two dates. In **Pehlad Ram v. Haryana Urban Development Authority (AIR 2014 SC 793)** , the Apex Court has held that a cumulative increase of 10 to 15% per year in the market value of the land may be accepted unless the State agencies or acquiring authority prove otherwise. In the instant case, if the value of the land shown in Ext.A4 document is enhanced by 15% on a cumulative basis for two years and four months, it would come to Rs.65,174/- per cent. The reference court has awarded more than this amount as compensation. The claimants are not entitled to get any further enhancement of compensation. 14. True, the requisitioning authority has filed cross objections in the appeals challenging the enhancement of compensation made by the reference court. The difference between the amount calculated as above and the amount awarded by the reference court cannot be considered as very huge. At this juncture, we also take note of the fact that the parties may not show the actual consideration paid for 13 L.A.A.Nos.557 of 2011, 563 of 2011 and 565 of 2011 & Cross Objection Nos.69 of 2012, 13 of 2013 and 14 of 2013 the land in the documents with a view to avoid stamp duty. The lands acquired are situated in a commercially important locality, in a semiurban area. Considering these aspects, we do not intend to reduce the amount of compensation. 15. The discussion above would show that the appeals as well as the cross objections are liable to be dismissed. Accordingly, the appeals and the cross objections are dismissed. No costs. ## (sd/-) **V.CHITAMBARESH, JUDGE** (sd/-) **R.NARAYANA PISHARADI, JUDGE** jsr/30/01/2019 True Copy PS to Judge