High Court of KeralaDivision BenchAppeals allowed; remanded to reference court fo...

LA.App. Nos. 467 of 2014 & 788 of 2014, State of Kerala v Jain Raj S/o Devadanam (Grace Blossom)

Case / Petition Number:LA.App. Nos. 467 of 2014 & 788 of 2014

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • V. Chitambaresh
  • R. Narayana Pisharadi
Judgment Date
2018-12-19
Court Decision / Holding
Appeals allowed; the impugned judgment in L.A.R. No. 2/2010 is set aside. The matter is remanded to the reference court for fresh consideration, with liberty to both parties to adduce further evidence. Reference court to dispose within two months from 14.01.2019. Lower court records to be returned; court-fee in LA.A. No. 788 of 2014 to be refunded. No costs.
Final Disposition
Appeals allowed; remanded to reference court for fresh determination with directions to dispose within two months; no costs; records to be returned; court fee refunded for 788/2014.

Parties to the Case

Appellants / Petitioners

  • State of Kerala represented by the District Collector, Thiruvananthapuram
  • Jain Raj S/o Devadanam (Late) 'Grace Blossom', Edakkode Desom, Nemom P.O., Pallichal Village, Thiruvananthapuram

Respondents

  • Jain Raj S/o Devadanam (Late) 'Grace Blossom', Edakkode Desom, Nemom P.O., Pallichal Village, Thiruvananthapuram-695020
  • The State of Kerala represented by the District Collector, Thiruvananthapuram 695001

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri A.K. Sukumaran
  • • Sri M. Balagovindan
  • • Sri T.K. Ananda Padmanabhan

Counsels for Respondents

  • • Sri M. Balagovindan

Case Synopsis & Summary

These LAAs arise from a Land Acquisition for Tsunami Rehabilitation in Vizhinjam Village. The Sub Court, Neyyattinkara, had awarded compensation of Rs 1,50,000 per Are after reference under LAR 2/2010, though the original Land Acquisition Officer had fixed Rs 62,987 per Are. The claimant (Jain Raj) contends the award reflects true market value and is supported by Exts A1 and A2, including a sale deed of the land after notification. The State challenges the higher fixation, contending the Ext A1 judgment relates to a different village and that Ext A2 reveals far lower consideration for the extent acquired; thus the value of Rs 1,50,000 per Are is unwarranted. The High Court notes the absence of a direct mutatis mutandis comparability between the Ext A1 land and the present land, and the sale price in Ext A2 (Rs 7,00,000 for 13.06 Ares) casts doubt on the reference court’s estimate. It relies on principles that (i) price as of notification governs compensation, (ii) a purchaser after notification buys at his own peril but steps into the owner’s shoes for compensation, and (iii) if a sale is not disclosed, the court may not protect a dishonest purchaser. The matter is remanded to the reference court for fresh evidence and reassessment, with directions to dispose within two months; no costs.

Provisions of Law Cited

Section 4(1) of the Land Acquisition ActSection 16 of the Land Acquisition ActSection 23(1) of the Land Acquisition Act

Legal Doctrines & Maxims

  • Price prevailing as on the date of the publication of the notification under Section 4(1) of the Act is the price to which the owner or person having an interest is entitled.
  • On taking possession of land, all rights, titles and interests vest in the State under Section 16 of the Act, free from encumbrances; absolute title is acquired.
  • A purchaser after notification can claim compensation but remains bound by the Act; post-notification transfers do not bind the Government except as provided by the Act.
  • Dishonest vendee protection: if the sale proceeds do not reveal the exact consideration, such a purchaser is not protected by the Court (Pehlad Ram v. Haryana Urban Development Authority, AIR 2014 SC 793).
  • The purchaser, as a person interested in compensation, steps into the shoes of the owner and is entitled to payment of compensation under the Act (UP Jal Nigam v. M/s Karla Properties, AIR 1996 SC 1170).
  • Rights and values must be considered under Act, not merely by isolated sale figures (Sneh Prabha v. State of U.P, AIR 1996 SC 540).

Submissions & Arguments

Contentions of Appellants / Petitioners

The State contends that the reference court erred in fixing land value at Rs 1,50,000 per Are, relying on a different village’s Ext. A1 judgment; Ext. A2 shows the claimant purchased after notification for Rs 7,00,000 for 13.06 Ares, indicating a far lower market value. The State submits that post-notification purchases occur at the buyer’s risk and should not drive compensation; the price on the notification date should guide valuation; the reference court’s reliance on Ext. A1 lacks proper comparability and a remand for fresh evidence is warranted. Cites Pehlad Ram to reject protection for dishonest purchasers; prays for remand, fresh evidence, and no costs.

Contentions of Respondents

Jain Raj argues that compensation as fixed by the reference court reflects locality-specific values and that Ext. A1 supports higher valuation; Ext. A2 shows the sale after notification at a much lower price, yet does not negate the need to compensate the landowner for the public purpose. The claimant seeks fair valuation under Section 23(1) of the Act and asserts the right to be compensated adequately; requests consideration of market data and) maintenance of the enhanced rate or improved valuation after proper comparables; asserts remand only for proper assessment with fresh evidence.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Pehlad Ram v. Haryana Urban Development AuthorityAIR 2014 SC 793PositiveCited to justify that a purchaser who withholds exact consideration is not protected by court protection.
Sneh Prabha v. State of U.PAIR 1996 SC 540PositiveCited for principle that possession vests rights in the State under Section 16 and that compensation relates to the notification date.
UP Jal Nigam v. M/s Karla PropertiesAIR 1996 SC 1170PositiveCited to support that a purchaser steps into the shoes of the owner and is entitled to compensation under the 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 V.CHITAMBARESH** **&** **THE HONOURABLE MR. JUSTICE R. NARAYANA PISHARADI** **WEDNESDAY,THE 19TH DAY OF DECEMBER 2018 / 26TH AGRAHAYANA, 1940** **LA.App..No. 467 of 2014** **AGAINST THE JUDGMENT AND DECREE DATED 31-10-2013 IN LAR 2/2010 of SUB COURT,NEYYATTINKARA** ## **APPELLANT/RESPONDENT:** **STATE OF KERALA REPRESENTED BY THE DISTRICT COLLECTOR, THIRUVANANTHAPURAM.** **BY SR.GOVERNMENT PLEADER SRI.A.K.SUKUMARAN** ## **RESPONDENT/CLAIMANT:** **JAIN RAJ S/O. DEVADANAM(LATE), 'GRACE BLOSSOM', EDAKKODE DESOM, NEMOM P.O., PALLICHAL VILLAGE, THIRUVANANTHAPURAM-695 020.** **ADV.SRI.M.BALAGOVINDAN** **THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 11.12.2018 ALONG WITH LA.App.788/2014, THE COURT ON 19.12.2018 DELIVERED THE FOLLOWING:** L.A.A.Nos.467/2014 & 788/2014 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 19TH DAY OF DECEMBER 2018 / 26TH AGRAHAYANA, 1940 LA.App..No. 788 of 2014** **AGAINST THE JUDGMENT AND DECREE DATED 31-10-2013 IN LAR 2/2010 of SUB COURT,NEYYATTINKARA** ## **APPELLANT/RESPONDENT:** **JAIN RAJ S/O.DEVADANAM(LATE)'GRACE BLOSSOM, EDAKKODE DESOM, NEMOM P O, PALLICHAL VILLAGE, THIRUVANANTHAPURAM** **BY ADV. SRI.M.BALAGOVINDAN** **SRI.T.K.ANANDA PADMANABHAN** ## **RESPONDENT/RESPONDENT:** **THE STATE OF KERALA REP BY THE DISTRICT COLLECTOR, THIRUVANANTHAPURAM 695 001.** **THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 11.12.2018 ALONG WITH L.A.A.NO.467 OF 2014, THE COURT ON 19.12.2018 DELIVERED THE FOLLOWING:** 3 L.A.A.Nos.467/2014 & 788/2014 ## **V.CHITAMBARESH &** ## **R.NARAYANA PISHARADI, JJ.** ************************** L.A.A.Nos.467 of 2014 & 788 of 2014 ---------------------------------------------Dated this the 19[th] day of December, 2018 ## **JUDGMENT** ## **R.Narayana Pisharadi, J** These appeals arise out of the judgment dated 31.10.2013 passed by the Sub Court, Neyyattinkara in L.A.R.No.2/2010. 2. An extent of 13.06 Ares of land in Vizhinjam Village was acquired for the purpose of Tsunami Rehabilitation Project. Notification under Section 4(1) of the Land Acquisition Act was published on 11.04.2008. The Land Acquisition Officer granted compensation for land fixing the value of the land at Rs.62,987/per Are. 3. Dissatisfied with the compensation granted by the Land Acquisition Officer, the owner of the land initiated reference L.A.A.Nos.467/2014 & 4 788/2014 proceedings. During the trial of the reference case, AW1 was examined and Exts.A1 to A3 documents were marked on the side of the claimant. No oral evidence was adduced by the State but Ext.R1 series documents were marked on its side. The reference court refixed the value of the land acquired at Rs.1,50,000/- per Are and enhanced the compensation accordingly. Aggrieved by the award passed by the reference court, the State has filed the appeal L.A.A.No.467 of 2014. Dissatisfied with the award passed by the reference court, the claimant has filed the appeal L.A.A.No.788 of 2014. 4. We have heard the learned Government Pleader and also the learned counsel for the claimant. We have also perused the records. 5. The claimant had produced Exts.A1 and A2 documents before the reference court in support of his plea for enhancement of compensation. Ext.A1 is the copy of the judgment of the reference court in the case L.A.R.No.82/2005. Ext.A2 is the copy of sale deed No.2263/08 by which the claimant purchased the L.A.A.Nos.467/2014 & 788/2014 5 property acquired. 6. Ext.A1 judgment relates to acquisition of land in a different village for a different purpose. The value of that land fixed by the reference court as per Ext.A1 judgment is Rs.2,00,000/- per Are. In the instant case, the reference court found that the land involved in the case in which Ext.A1 judgment was delivered is situated in the same locality. However, there was no material before the reference court to find that the property involved in that case and in the present case are similar or similarly situated. But, ultimately, on the finding that the property covered by Ext.A1 judgment is situated near the property involved in the present case, the reference court fixed the compensation for land at Rs.1,50,000/- per Are. 7. Ext.A2 is sale deed No.2263/08 by which the claimant purchased the land which was acquired. He purchased the property on 06.09.2008, after publication of the notification under Section 4(1) of the Land Acquisition Act. The total consideration of the entire extent of 13.06 Ares of land paid by L.A.A.Nos.467/2014 & 788/2014 6 the claimant is only Rs.7,00,000/-. Though the reference court has taken note of these aspects, the court failed to note the significance of the transaction covered by Ext.A2 document. When the claimant had purchased the property after publication of the notification and the total consideration for the property paid by him was only Rs.7,00,000/-, there is no basis or logic for awarding compensation of Rs.19,59,000/- for the same property at Rs.1,50,000/- per Are (1,50,000 x 13.06) . It is to be noted that in case a purchaser has not shown the exact amount of consideration paid by him in the sale deed to save the stamp duty under the Registration Act, 1908, such a dishonest vendee is not required to be protected by the Court (See **Pehlad Ram v. Haryana Urban Development Authority : AIR 2014 SC 793** ). 8. The claimant is a person who purchased the property after publication of the notification under Section 4(1) of the Land Acquisition Act. Any person who purchases land, after publication of the notification under Section 4(1) of the Land L.A.A.Nos.467/2014 & 788/2014 7 Acquisition Act, does so at his/her own peril. Any alienation of land after the publication of the notification under Section 4(1) does not bind the Government or the beneficiary under the acquisition. On taking possession of the land, all rights, titles and interests in land stand vested in the State, under Section 16 of the Act, free from all encumbrances and thereby absolute title in the land is acquired thereunder. If any subsequent purchaser acquires land, his/her only right would be subject to the provisions of the Act and/or to receive compensation for the land (See **Sneh Prabha v. State of U.P : AIR 1996 SC 540** ). The original owner has the right to the compensation under Section 23(1) of the Act. Consequently, though the subsequent purchaser acquires no title to the land, he would be entitled to step into the shoes of the owner and claim payment of the compensation, but according to the provisions of the Act. It is settled law that the price prevailing as on the date of the publication of the notification under Section 4(1) of the Act is the price to which the owner or person who has an interest in the land is entitled to. L.A.A.Nos.467/2014 & 788/2014 8 Therefore, the purchaser, as a person interested in the compensation, since he steps into the shoes of erstwhile owner, is entitled to claim compensation (See **U.P Jal Nigam v. M/s Karla Properties : AIR 1996 SC 1170** ). 9. As noticed earlier, when the claimant purchased the property after publication of the notification under Section 4(1) of the Land Acquisition Act, the total amount of consideration paid by him was only Rs.7,00,000/-. The value of the land at the time of notification cannot be, normally, higher than the amount shown in Ext.A2 document. In such circumstances, we find that the matter requires reconsideration by the reference court. The case has to be remanded to the reference court for fresh consideration. 10. In the result, the appeals are allowed and the impugned judgment in L.A.R.No.2/2010 of the Sub Court, Neyyattinkara is set aside. The case is remanded to the reference court for fresh consideration. The claimant as well as the State is entitled to adduce further evidence in the case. The L.A.A.Nos.467/2014 & 9 788/2014 parties shall appear before the reference court on 14.01.2019. The reference court shall dispose of the case within a period of two months from that date. The registry shall send back the lower court records forthwith. The court fee paid in L.A.A.No.788 of 2014 shall be refunded. No costs in the appeals. (sd/-) **V.CHITAMBARESH, JUDGE** (sd/-) **R.NARAYANA PISHARADI, JUDGE** jsr/18/12/2018 True Copy PS to Judge