High Court of KeralaDivision BenchAppeal Allowed; award modified to grant 12% inc...

P. Saraswathy v. State of Kerala and The Managing Director, Thiruvananthapuram International Airport Development Society

Case / Petition Number:LA.App. No. 1344 of 2008

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Pius C. KuriaKose
  • K. Surendra Mohan
Judgment Date
2010-07-22
Court Decision / Holding
The appeal is allowed; the Reference Court’s award is modified to grant the 12% per annum increase under Section 23(1A) for the period from 4/3/1999 to 21/5/2001. The appellant is entitled to the additional compensation along with all statutory benefits including interest; there will be no order as to costs.
Final Disposition
Appeal Allowed; award modified to grant 12% increase under Section 23(1A) for the specified period; appellant entitled to statutory benefits including interest; no costs.

Parties to the Case

Appellants / Petitioners

  • P. Saraswathy

Respondents

  • State of Kerala, represented by the District Collector, Thiruvananthapuram
  • The Managing Director, Thiruvananthapuram International Airport Development Society, Thiruvananthapuram

Legal Representation & Advocates

Counsels for Petitioners

  • • Gopakumar R. Thaliyal

Counsels for Respondents

  • • Smt. Latha T. Thankappan
  • • Basanth Balaji

Case Synopsis & Summary

This is a Land Acquisition Appeal (LA App. No. 1344 of 2008) arising from LAR 211/2003 before the II Addl. Sub Court, Thiruvananthapuram, heard by a Division Bench of the Kerala High Court. The appellant, P. Saraswathy, owner of 3.30 ares in survey No. 448/2, Pettah village, Thiruvananthapuram taluk, alleges that the State of Kerala acquired land for the construction of the new International Passenger Terminal at Chackai and that the compensation awarded and the method of calculation were inadequate. Notification under Section 4(1) of the Land Acquisition Act was issued on 4 February 1999, possession taken on 13 August 2002, and the Land Acquisition Officer awarded Rs. 91,867 per are, totalling Rs. 4,71,402, which the appellant challenged. The Reference Court enhanced the value to Rs. 2,00,000 per are. The appellant sought further enhancement and argued for the 12% per annum increase under Section 23(1A) for 810 days (4 March 1999 to 21 May 2001), contending that she was not a party to writ petitions that stayed dispossession. The respondents opposed the 12% increase, invoking the stay orders. The court relied on Noormohamed v. State of Gujarat and a Kerala case (LAA 1644/2007) holding that non-parties to stay orders should not be deprived of Section 23(1A) benefits. The High Court ultimately held that denial was erroneous and allowed the appeal, directing the Reference Court to grant the 12% increase for the specified period, with all statutory benefits including interest, and no costs.

Provisions of Law Cited

Section 4(1) of the Land Acquisition ActSection 23(1A) of the Land Acquisition ActExplanation to Section 23(1A) of the Land Acquisition ActSection 6 of the Land Acquisition Act

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that she is entitled to the 12% per annum increase on the market value under Section 23(1A) for a period of 810 days (4/3/1999 to 21/5/2001). The denial rests on interim stay orders in writ petitions that stayed dispossession, but she argues she was not a party to those petitions. Relying on Noormohamed v. State of Gujarat (1992) (1) KLT 335 and the Kerala High Court’s decision in LAA 1644/2007, she asserts that the Explanation to Section 23(1A) applies to those not bound by stays, and thus she should receive the benefit despite not being a party to the stay orders. She asks for enhancement of land value and restoration of statutory benefits, including interest.

Contentions of Respondents

The respondents contend that the stay orders on dispossession, even if not involving the appellant, justify denial of the 12% increase under Section 23(1A) during the stay period. They submit that the award and its calculation were shaped by interim orders and consent letters, and hence the stay period should not count for Section 23(1A) benefits. They rely on the statutory scheme and the interpretation that beneficiaries under Section 23(1A) must be parties to the stay orders or otherwise affected by them. They argue that the Reference Court’s award should stand unless the stay-related denial is properly reiterated, and that there is no basis to grant enhancement under the Explanation to Section 23(1A) for a non-party to stay orders.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Noormohamed v. State of Gujarat1992(1) KLT 335PositiveThe Supreme Court’s discussion on the scope of the Explanation to Section 23(1A) supports that landholders who did not obtain a court order delaying the award or possession may still be eligible for the benefit.
LAA 1644/2007LAA 1644/2007PositiveThe Kerala court’s decision extending additional compensation for the stay period to non-parties to the stay order is applied to the present case to grant the benefit under Section 23(1A).

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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 PIUS C.KURIAKOSE** **& THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN** **THURSDAY, THE 22ND JULY 2010 / 31ST ASHADHA 1932** **LA.App..No. 1344 of 2008()** **-------------------------LAR.211/2003 of II ADDL.SUB COURT,TRIVANDRUM** **....................** **APPELLANT(S): CLAIMANT:** **------------------------------------------** **P.SARASWATHY, T.C. 36/121, KIDANGIL VEEDU, VALLAKKADAVU P.O., THIRUVANANTHAPURAM.** **BY ADV. SRI.GOPAKUMAR R.THALIYAL** **RESPONDENT(S): RESPONDENTS:** **----------------------------------------------------** **1. STATE OF KERALA, REPRESENTED BY THE DISTRICT COLLECTOR, THIRUVANANTHAPURAM.** **2. THE MANAGING DIRECTOR, THIRUVANANTHAPURAM INTERNATIONAL AIRPORT DEVELOPMENT SOCIETY, THIRUVANANTHAPURAM.** **R1 BY GOVERNMENT PLEADER SMT. LATHA T. THANKAPPAN BY ADV. BASANTH BALAJI** **THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 23/12/2009, THE COURT ON 22/07/2010 DELIVERED THE FOLLOWING:** **Kss** **PIUS C. KURIAKOSE & K. SURENDRA MOHAN, JJ. -----------------------------------------------------------------------L.A.A. NO:1344 OF 2008 A ----------------------------------------------------------------------Dated this the 22[nd ] July, 2010.** ## **JUDGMENT** ## SURENDRA MOHAN, J. This is an appeal by the claimant in LAR 211/2003 of the Additional Sub Court, Thiruvananthapuram. An extent of 3.30 ares of land comprised in survey No: 448/2 of Pettah village, Thiruvananthapuram taluk belonging to the appellant was acquired by the respondents for construction of the new International Passenger Terminal at Chackai, Thiruvananthapuram on the requisition of the second respondent. Notification under Section 4 (1) of the Land Acquisition Act in this case was published on 4/2/1999. But, the land was taken possession of only on 13/8/2002. The Land Acquisition Officer passed an award fixing the land value at the rate of Rs.91,867/- per are. On the above basis, an amount of Rs.4,71,402/- was paid to the appellant as compensation. Since the appellant was dissatisfied with the amount awarded, she sought a reference to the Sub Court and accordingly, the case was referred to the court. The appellant claimed an amount of Rs.1,00,000/- per cent as compensation, with all statutory benefits. The Reference Court considered the matter LAA 1344/2008 2 in the light of the evidence on record and enhanced the land value to Rs.2,00,000/- per are. 2. According to the appellant, the land value awarded by the Reference Court was low and therefore has sought further enhancement in the land value. The appellant also complains that the court below has not granted the 12% increase per annum on the market value of the property acquired for the period from 4/3/1999 to 21/5/2001 under Section 23(1A) of the Land Acquisition Act (the 'Act' for short). Therefore, the petitioner claims the said 12% increase on the market value of the acquired property for a total number of 810 days. The reason for denying the said benefits as per the note to the award is that in certain writ petitions this Court had granted stay of dispossession of the property. Subsequently the award was passed after receiving consent letters from the land owners. According to the petitioner, she was not a party to any of the writ petitions referred to above and therefore, the petitioner claims that she is entitled to the benefit of Section 23(1A) of the Act. 3. We have heard Adv. Thaliyal R.Gopakumar for the appellant and Smt. Latha T.Thankappan, Senior Govt. Pleader for the LAA 1344/2008 3 respondents. We have also given our anxious consideration to the rival contentions of the parties. 4. The only complaint of the appellant in this case is regarding denial of the benefit under Section 23(1A) of the Act to her. According to the appellant, for a period of 810 days from 4/3/1999 to 21/5/2001 the appellant has not been given the benefit of 12% increase on the market value. The reason for denying the said benefit is that as per interim orders granted in some writ petitions, this Court had stayed the dispossession of the property. Thereafter, awards have been passed only after obtaining consent letters from the parties. Therefore, relying on the explanation to Section 23(1A), the benefit has been denied to the appellant. According to the appellant, she was not a party to any of the petitions. Therefore, denial of the said benefit to her is without any justification. 5. In **Noormohamed v. State of Gujarat {1992(1) KLT 335}** the Supreme Court has concluded the discussion on the scope of the above explanation in the following words:- “In order to get the benefit of the said provision what is required, is that the land-holder who seeks the benefit must not have obtained any order from a Court restraining any action or proceeding in LAA 1344/2008 4 pursuance of the declaration under S.6 of the said Act so that the Explanation covers only the cases of those land-holders who do not obtain any order from a Court which would delay or prevent the making of the award or taking possession of the land acquired.” In view of the above observation, it is clear that a person who was not a party to the writ petition in which the interim order had been passed cannot be penalised by denying the benefits of Section 23 (1A) to her. The counsel for the claimants drew our attention to the judgment of this Court dated 19/3/2008 in LAA 1644/2007 and cross objection No: 11/2008 wherein the cross objectors were held entitled to additional compensation on land value for the period during which the stay order of this Court was in operation. The said benefit has been extended to them for the reason that the cross objectors therein were not parties to the original petitions in which the stay order had been passed. The same dictum applies to the facts of the present case also. 5. It is not disputed that the appellant in this case was not a party to the writ petition in which the order of stay had been passed by this Court. Therefore, there are no grounds to deny to the appellant the benefit of 12% increase in the market value of the acquired property for the period from 4/3/1999 to 21/5/2001. We LAA 1344/2008 5 find that both the Land Acquisition Officer as well as the court below have erred in denying to the appellant the said benefit. 6. In the result this appeal is allowed holding that the appellant is entitled to the additional compensation under Section 23(1A) of the Act for the period from 4/3/1999 to 21/5/2001. The award of the Reference Court is modified to the above extent. It is needless to observe that the appellant would also be entitled to all statutory benefits including interest on the amount. In the circumstances of the case there will be no order as to costs. PIUS C.KURIAKOSE Judge ## K. SURENDRA MOHAN Judge jj LAA 1344/2008 6