High Court of KeralaDivision BenchAppeal Allowed

State of Kerala rep. by Special Land Acquisition, Koyilandy v. Madathil Vasantha and others

Case / Petition Number:L.A.A.No.226 of 2015

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. The impugned judgment of the reference court is modified and the value of the land acquired is fixed at Rs. 2,12,860 per cent. The claimants are entitled to all other statutory benefits. No costs.
Final Disposition
Appeal Allowed

Parties to the Case

Appellants / Petitioners

  • State of Kerala rep. by Special Land Acquisition, Koyilandy

Respondents

  • Madathil Vasantha
  • Geetha K.A.
  • Preetha
  • Gireesh K.A.
  • Narayanan Nair
  • Managing Director, RBDC

Legal Representation & Advocates

Counsels for Respondents

  • • Sri B.V. Joy Sankar (for R2 to R5)
  • • Sri Shyson P. Manguzha (for R6)

Case Synopsis & Summary

This Land Acquisition Appeal arises from a reference under L.A.R. 2/2012 concerning 9.266 cents of garden land in Panthalayani village, acquired for a railway overbridge at Koyilandy. The notification under Section 4(1) of the Land Acquisition Act, 1894 was published on 30.07.2010. The Land Acquisition Officer fixed compensation at Rs. 68,897 per cent; the Reference Court enhanced it to Rs. 2,37,205 per cent plus Rs. 70,450 as injurious affection. The State challenges the Reference Court’s enhancement, arguing that reliance on Ext. R2 (a sale of nearby land) as the basis for market value was inappropriate because Ext.R2’s property had no public road access and was in a residential area, whereas the acquired land abutted a State Highway in a commercially important vicinity. The State also invokes Maya Devi v. State of Haryana to resist post-notification transactions (Exts A1, A2, A5) being used to determine value, and contends that Ext.A3 and Ext.A4 are similarly unsuitable. The court notes that the claimant bears the burden to prove inadequacy but may rely on some reasonable guesswork to balance equities, citing Trishala Jain. After considering the same, the court fixes the market value at Rs. 2,12,860 per cent in line with other appeals in the same village, and allows the appeal with no costs and all statutory benefits to claimants.

Provisions of Law Cited

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

Legal Doctrines & Maxims

  • Post-notification transactions cannot be considered for fixation of market value (Maya Devi v. State of Haryana, AIR 2018 SC 645)
  • Some amount of reasonable guesswork may be used to fix fair market value (Trishala Jain v. State of Uttaranchal, AIR 2011 SC 2458)
  • Balance the equities in determining compensation

Submissions & Arguments

Contentions of Appellants / Petitioners

State of Kerala contends that the Land Acquisition Officer misapplied valuation principles by relying on Ext.R2 and post-notification transaction values. It submits that the acquired land abutted a State Highway in a commercially important locality, deserving a higher rate than the nearby residential property cited in Ext.R2. Relying on Maya Devi, it argues post-notification transactions (Exts A1, A2, A5) should be excluded from fixing market value, and that the valuation must reflect high potential near the town, consistent with comparable cases in the same village. The State acknowledges the burden to show inadequacy but maintains some measured guesswork is permissible to balance equities toward fair compensation.

Contentions of Respondents

Claimants argue Exts A1–A5 reflect higher market values and that the reference court correctly relied on comparable transactions. They point to a sale of substantial land near the area (Ext.A2) and other post-notification deals to claim greater compensation, asserting that the property’s location—near a highway and in a relatively urban setting—demands a higher rate. They contend the LAC’s fixation on Ext.R2 undervalues the land and seeks just compensation per the established market realities.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Maya Devi v. State of HaryanaAIR 2018 SC 645PositivePost-notification transactions cannot be taken into consideration for fixing market value.
Trishala Jain v. State of UttaranchalAIR 2011 SC 2458PositiveSupports the use of reasonable guesswork to balance equities in determining fair market value.

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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. 226 of 2015** **AGAINST THE JUDGMENT AND DECREE DATED 14-01-2015 IN LAR 2/2012 of SUB COURT, KOYILANDY** ## **APPELLANT/1ST RESPONDENT IN L.A.R:** **STATE OF KERALA REP. BY THE SPECIAL LAND ACQUISITION, KOYILANDY** **SRI.A.K.SUKUMARAN-SR.GP** ## **RESPONDENTS/CLAIMANTS AND 2ND RESPONDENT IN L.A.R:** > 1 **MADATHIL VASANTHA, W/O.NARAYAN NAIR, PANTHALAYANI AMSOM, KOTHAMANGALAM DESOM, KOYILANDY TALUK (DIED) 673 305** 2 **GEETHA.K.A., D/O VASANTHA, “VASANTHAM”, MULIYAPURATH, KOTHAMANGALAM, KOYIILANDY 673 305** > 3 **PREETHA, D/O.VASANTHA, “VASANTHAM”, MULIYAPURATH, KOTHAMANGALAM, KOYIILANDY 673 305** 4 **GIREESH.K.A., S/O.VASANTHA, “VASANTHAM”, MULIYAPURATH, KOTHAMANGALAM, KOYIILANDY 673 305** **NARAYANAN NAIR, H/O. VASANTHA, “VASANTHAM”,** 5 **MULIYAPURATH, KOTHAMANGALAM, KOYIILANDY 673 305** 6 **THE MANAGING DIRECTOR, RBDC, (ROADS AND BRIDGES DEVELOPMENT CORPORATION), PALARIVATTAM, KOCHI 682 025.** **BY ADV. SRI.B.V.JOY SANKAR FOR R2 TO R5 SRI.SHYSON P.MANGUZHA FOR R6** **THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 17.01.2019, THE COURT ON 29.01.2019 DELIVERED THE FOLLOWING:** L.A.A.No.226 of 2015 2 ## **V.CHITAMBARESH &** **R.NARAYANA PISHARADI, JJ** ************************** L.A.A.No.226 of 2015 ---------------------------------------------Dated this the 29[th] day of January, 2019 ## **JUDGMENT** ## **R.Narayana Pisharadi, J** This appeal arises out of the judgment dated 14.01.2015 passed by the Sub Court, Koyilandy in L.A.R.No.2/2012. 2. An extent of 9.266 cents of garden land situated in Panthalayani Village, owned by respondents 1 to 5, was acquired for the purpose of construction of railway overbridge at Koyilandy. The notification under Section 4(1) of the Land Acquisition Act, 1894 was published on 30.07.2010. The Land Acquisition Officer granted compensation for land by fixing the value of the land at Rs.68,897/- per cent. The reference court enhanced the compensation by refixing the value of the land at Rs.2,37,205/- per cent. The reference court also granted Rs.70,450/- as compensation for injurious affection. Aggrieved by the award passed by the reference court, the State has filed L.A.A.No.226 of 2015 3 this appeal. 3. We have heard the learned Government Pleader and the learned counsel for the respondents/claimants and also the learned counsel for the requisitioning authority. We have also perused the records. 4. Ext.C1 is the report filed by the Advocate Commissioner after inspecting the land acquired. Ext.C1 report shows that the land acquired is situated abutting the State Highway. Ext.C1 report also shows that the land acquired is situated in a commercially important locality. 5. The Land Acquisition Officer adopted the value shown in Ext.R2 document as the basis for fixation of the market value of the land acquired. Ext.R2 document shows that on 07.06.2010, 4.10 Ares (10.127 cents) of land situated in Panthalayani Village was sold by its owner for a total consideration of Rs.7,00,000/-. The value of the land paid as per this document comes to Rs.69,122/- per cent. 6. The description of the property given in Ext.R2 document shows that there is no public road on any side of it and the access to that property is through the pathways lying on its eastern and northern sides. This property is located in a L.A.A.No.226 of 2015 4 residential area. 7. There was absolutely no justification for the Land Acquisition Officer to adopt the value of the land shown in Ext.R2 document as the basis for determination of the market value of the land acquired. The land acquired is situated very near to Koyilandy Town, abutting a State Highway, at a place having commercial importance. On the other hand, the land covered by Ext.R2 document has no access from any public road and it is situated in a residential locality, having no commercial importance. 8. Exts.A1 to A5 are the documents produced by the claimants before the reference court in support of their claim for enhancement of compensation for land. 9. Ext.A1 is the copy of document No.1257/2012. As per this document, on 28.05.2012, 01.31 Ares (3.23 cents) of property was purchased by a Co-operative Society for a total consideration of Rs.6,88,000/-. This is a post notification transaction. 10. Ext.A2 is the copy of document No.1010/2012. As per this document, on 16.04.2012, 21.49 Ares of property was sold for a total consideration of one crore and six lakhs and twenty L.A.A.No.226 of 2015 5 five thousand rupees. This is also a post notification transaction. 11. Ext.A3 is the copy of document No.611/2004. As per this document, on 08.03.2004, 25 cents of property was sold for a total consideration of Rs.35,90,000/-. This property consisted of the foundation and the pillars constructed for a shop room. The boundaries of the property shown in Ext.A3 document show that it has got no direct road access. 12. Ext.A4 is the copy of document No.1930/1997. As per this document, on 20.08.1997, 4.20 cents of property was sold for a total consideration of Rs.3,00,000/-. It is situated at a distance of 100 metres from the National Highway but it has got no direct road access. 13. Ext.A5 is the copy of document No.2988/2010. As per this document, on 01.11.2010, one-third right of a person in a property, having an extent of 04.29 Ares, was sold for a total consideration of Rs.6,87,000/-. The reference court has adopted the value of the land shown in Ext.A5 document, though it is a post notification transaction, as the basis for fixation of the market value of the land acquired. The reference court fixed the value of the land acquired at Rs.2,37,205/- granting increase by 25% on the value of the land covered by Ext.A5 document. L.A.A.No.226 of 2015 6 ## 14. 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 value of the land acquired for granting compensation. Therefore, the value of the land shown in Exts.A1, A2 and A5 documents, being post notification transactions, cannot be adopted as the basis for fixation of the market value of the acquired land. 15. The reference court has relied upon the value of the land shown in Ext.A5 document, though a post notification transaction, as the basis for fixation of the market value of the land acquired. The procedure adopted by the reference court appears to be not proper. Moreover, as per Ext.A5 document, the entire land was not sold. What was sold was only the fractional right of a person over the land. When fractional right over a property is only sold, the document may not reflect the real market value of the property. 16. The value of the land shown in Exts.A3 and A4 documents also cannot be adopted as the basis for fixation of the market value of the land acquired. In the property covered by Ext.A3 document, there was the foundation and the pillars L.A.A.No.226 of 2015 7 constructed for a shop room. This property had no road access. The transaction as per Ext.A4 document had taken place 13 years prior to the date of notification of acquisition. In such circumstances, it would not be proper to adopt the value of the land shown in Exts.A3 and A4 documents as the basis for fixation of the market value of the lands acquired. 17. The claimants are expected to lead cogent and proper 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 more amount. But, it cannot be said that there is no onus whatsoever upon the State in such reference proceedings. The court cannot lose sight of the fact that obligation to pay fair compensation is on the State. In the absence of any reliable documents to prove the market value of similar and similarly situated properties, the value of the lands acquired can be fixed on the basis of some guess work only. Depending on the facts and circumstances of the case, the court may have to take recourse to some guesswork while determining the fair market value of the land. The Court is entitled to apply some amount of reasonable guesswork to L.A.A.No.226 of 2015 8 balance the equities and fix a just and fair market value (See **Trishala Jain v. State of Uttaranchal : AIR 2011 SC 2458** ). An exercise of computation of the amount of compensation necessarily involves some amount of approximation and guesswork. 18. As per the common judgment in the appeals L.A.A.Nos.257 of 2015, 273 of 2015, 323 of 2015, 324 of 2015 and 344 of 2015, we have today found that the value of the land fixed by the reference court at Rs.2,12,860/- per cent is just and reasonable. The aforesaid appeals also relate to acquisition of land in the same village, under the same notification, for construction of railway overbridge at Koyilandy. The properties acquired in those cases were situated in the heart of Koyilandy Town. The property acquired in the instant case is situated in Koyilandy Town, but in a locality having lesser commercial importance. At the same time, it is to be noted that it is situated abutting a State Highway. In such circumstances, it is proper to fix the value of the land acquired in the instant case also at the same rate, that is, at Rs.2,12,860/- per cent. 19. Accordingly, the appeal is allowed. The impugned judgment of the reference court is modified and the value of the L.A.A.No.226 of 2015 9 land acquired is refixed at at Rs.2,12,860/- (Rupees two lakhs and twelve thousand and eight hundred and sixty only) per cent. The claimants are entitled to get all other statutory benefits. No costs in the appeal. (sd/-) **V.CHITAMBARESH, JUDGE** (sd/-) **R.NARAYANA PISHARADI, JUDGE** jsr/29/01/2019 True Copy PS to Judge