High Court of KeralaSingle JudgeAppeals and cross-objections allowed; remanded ...

State of Kerala (represented by District Collector, Kottayam) v. C.V. John Kavalam Puthupparambil; cross objects by Molly John, etc. (LA.App. Nos. 405 of 2017; 443 of 2015; CO Nos. 115 of 2018; 79 of 2017)

Case / Petition Number:LA.App. Nos. 405 of 2017; 443 of 2015; CO Nos. 115 of 2018; 79 of 2017

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P.B. Suresh Kumar
Judgment Date
2019-07-02
Court Decision / Holding
Appeals and cross objections allowed; matters remitted for fresh disposal to the reference court; cross-objection court fees to be refunded; parties to appear before the reference court on 12.08.2019 for fresh disposal; interlocutory applications closed.
Final Disposition
Appeals and cross-objections allowed; remanded to Reference Court for fresh disposal; court fees on cross-objections to be refunded; appearance fixed on 12.08.2019 for fresh disposal.

Parties to the Case

Appellants / Petitioners

  • State of Kerala represented by the District Collector, Kottayam
  • Executive Engineer, Kerala State Transport Project (KSTP), Muvattupuzha

Respondents

  • C.V. John Kavalam Puthupparambil
  • Molly John

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri.T.K.ShaJAHAN, Sr. Government Pleader

Counsels for Respondents

  • • Adv. James Kurian

Case Synopsis & Summary

This is a batch of Land Acquisition Appeals and Cross Objections arising from two references under Section 18 of the Land Acquisition Act, 1894, concerning lands acquired for widening the Muvattupuzha–Ettumanoor–Chengannoor State Highway following a 15 December 2007 notification. The Land Acquisition Officer fixed the land value, which the Reference Court enhanced (from Rs. 1,96,456 per Are to Rs. 3,20,754 per Are). The State (as appellants) and the claimants (C.V. John Kavalam Puthupparambil and Molly John) contest the fixation, arguing the reference court treated the lands as “better lands,” applying locational premium and annual escalation, which could yield higher compensation than the base document Ext. R1 and precedents. The claimants urge that lands’ comparative superiority may justify higher value, while the State emphasizes the ONGC principle limiting cost escalation to 10–15% and relies on a prior settlement (W.P.(C) No.17103 of 2008) that Rs. 3,00,000 per cent was paid for similar lands. The High Court assesses the methodology, notes potential betterment, and remits the matters to the Reference Court for fresh disposal, allowing refund of cross-objection court fees, and directs appearance on 12.08.2019 for re-evaluation. The judgment indicates that if lands are superior, compensation may be higher, but the resolution must come from the reference court on remand.

Provisions of Law Cited

Section 18 of the Land Acquisition Act, 1894

Legal Doctrines & Maxims

  • Betterment/locational premium doctrine in land valuation (locational premium of 30%)
  • Cost escalation principle (cap of 10–15% as cited from ONGC v. Patel)
  • Settlement endorsement doctrine (endorsement of earlier settlements in W.P.(C) No.17103 of 2008)

Submissions & Arguments

Contentions of Appellants / Petitioners

The State and KSTP submitted that the Reference Court arbitrarily treated the acquired lands as better lands and loaded the base valuation with a locational premium (30%) and annual escalation (15%). They argued the ONGC principle caps escalation to 10–15% and that, even after such adjustment, the compensation cannot exceed the value justified by Ext.R1 and prior settlements. They relied on the 2004 acquisition precedent where a district collector fixed Rs.3,00,000 per cent and urged a proximity-based, lower fixation, contending that the lands here may not be superior as claimed.

Contentions of Respondents

The claimants contended that, by reason of location and other factors, lands could be better or on par with comparables, justifying higher compensation, and pointed to the earlier W.P.(C) No.17103/2008 settlement as a benchmark. They urged that the reference court’s fixation should be read in light of comparable lands and potential improvements, and that a remand is necessary to confirm the true nature and value of the lands.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
The General Manager, Oil and Natural Gas Corporation Limited v. Rameshbhai Jivanbhai Patel and another(2008) 14 SCC 745PositiveCited as the controlling doctrine for the permissible cost escalation (10–15%) in urban land compensation determinations.
W.P.(C) No.17103 of 2008W.P.(C) No.17103 of 2008PositiveSettlement endorsed by this Court in the related matter, used to assess the reasonableness of land values and settlement benchmarks.

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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 P.B.SURESH KUMAR** **TUESDAY, THE 02ND DAY OF JULY 2019 / 11TH ASHADHA, 1941** **LA.App..No.405 of 2017** **AGAINST THE JUDGMENT AND DECREE IN LAR NO.12/2011 of the PRINCIPAL SUB COURT,KOTTAYAM DATED 18-12-2013** ## **APPELLANTS/RESPONDENTS IN L.A.R:** **1 STATE OF KERALA REPRESENTED BY DISTRICT COLLECTOR,KOTTAYAM. 2 THE EXECUTIVE ENGINEER K.S.T.P MUVATTUPUZHA. BY SRI.T.K.SHAJAHAN, SR. GOVERNMENT PLEADER** **RESPONDENT/CLAIMANT IN L.A.R:** **C.V. JOHN KAVALAM PUTHUPARAMBIL, VAZHAPPALLY EAST VILLAGE, CHANGANACHERRY, PIN – 686 106.** **BY ADV. SRI.JAMES KURIAN** **THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 02.07.2019, ALONG WITH CO.115/2018, LA.App.443/2015 & CO.79/2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 2 L.A.A Nos.405 of 2017, 443 of 2015 & C.O.Nos. 115 of 2018 & 79 of 2017 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR** **TUESDAY, THE 02ND DAY OF JULY 2019 / 11TH ASHADHA, 1941** **CO.No.115 of 2018 IN LA.App.. 405/2017** **AGAINST THE JUDGMENT AND DECREE IN LAR NO.12/2011 of the PRINCIPAL SUB COURT,KOTTAYAM DATED 18-12-2013** ## **CROSS OBJECTOR/RESPONDENT/CLAIMANT:** **C.V.JOHN,** **KAVALAM PUTHUPARAMBIL, VAZHAPPALLY EAST VILLAGE, CHANGANACHERRY, KOTTAYAM-686 106.** **BY ADV. JAMES KURIAN** ## **RESPONDENTS/APPELLANTS/RESPONDENTS:** **1. THE STATE OF KERALA REPRESENTED BY THE DISTRICT COLLECTOR, KOTTAYAM-686 001.** **2. THE EXECUTIVE ENGINEER, KERALA STATE TRANSPORT PROJECT (KSTP), MUVATTUPUZHA, ERNAKULAM, PIN – 686 661. R1 & R2 BY SRI.T.K.SHAJAHAN, SR.GOVERNMENT PLEADER** **THIS CROSS OBJECTION/CROSS APPEAL HAVING BEEN FINALLY HEARD ON 02.07.2019,ALONG WITH LA.App.405/2017, LA.App.443/2015 & CO.79/2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 3 L.A.A Nos.405 of 2017, 443 of 2015 & C.O.Nos. 115 of 2018 & 79 of 2017 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR** **TUESDAY, THE 02ND DAY OF JULY 2019 / 11TH ASHADHA, 1941** ## **LA.App..No.443 of 2015** **AGAINST THE JUDGMENT AND DECREE IN LAR 11/2011 of the PRINCIPAL SUB COURT,KOTTAYAM DATED 18-12-2013** ## **APPELLANTS/RESPONDENTS IN L.A.R:** - **1 STATE OF KERALA REPRESENTED BY THE DISTRICT COLLECTOR, KOTTAYAM.** - **2 THE EXECUTIVE ENGINEER, K.S.T.P MUVATTUPUZHA** - **BY SRI.T.K.SHAJAHAN, SR.GOVERNMENT PLEADER** ## **RESPONDENT/CLAIMANT IN L.A.R:** - **MOLLY JOHN, D/O.ANNAMMA, KAVALAN PUTHUPARAMBIL, VAZHAPPALLY EAST, CHANGANACHERRY – 686 103.** ## **BY ADV. SRI.JAMES KURIAN** **THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 02.07.2019, ALONG WITH LA.App.405/2017,CO.79/2017 & CO.115/2018 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** L.A.A Nos.405 of 2017, 443 of 2015 & C.O.Nos. 115 of 2018 & 79 of 2017 4 ## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR** **TUESDAY, THE 02ND DAY OF JULY 2019 / 11TH ASHADHA, 1941** **CO.No.79 of 2017 IN LA.App.. 443/2015** **AGAINST THE JUDGMENT AND DECREE IN LAR 11/2011 of the PRINCIPAL SUB COURT,KOTTAYAM DATED 18-12-2013** ## **CROSS OBJECTOR/RESPONDENT/CLAIMANT:** **MOLLY JOHN, D/O. ANNAMMA, KAVALAM PUTHUPARAMBIL,VAZHAPPALLY EAST, CHANGANAASERY,PIN - 686 103.** **BY ADV. SRI.JAMES KURIAN RESPONDENTS/APPELLANTS/RESPONDENTS:** **1 STATE OF KERALA REPRESENTED BY DISTRICT COLLECTOR, KOTTAYAM - 686 002. 2 THE EXECUTIVE ENGINEER K.S.T.P,MUVATTUPUZHA - 686 661.** **R1 & R2 BY SRI.T.K.SHAJAHAN, SR.GOVERNMENT PLEADER** **THIS CROSS OBJECTION/CROSS APPEAL HAVING BEEN FINALLY HEARD ON 02.07.2019, ALONG WITH LA.App.443/2015, LA.App.405/2017 & CO.115/2018,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 5 L.A.A Nos.405 of 2017, 443 of 2015 & C.O.Nos. 115 of 2018 & 79 of 2017 ## **J U D G M E N T** These appeals and cross objections are preferred against the decrees and judgments in two references under Section 18 of the Land Acquisition Act, 1894 (the Act) in respect of the lands acquired for widening of Muvattupuzha – Ettumanoor – Chengannoor State Highway, pursuant to a notification issued under the Act on 15.12.2007. The appeals are by the State and cross objections are by the claimants in the proceedings. 2. 0.24 Ares of land held by the claimant in L.A.R No.12 of 2011, which is the subject matter of LAA No.405 of 2017 and 0.19 Ares of land held by the claimant in L.A.R No.11 of 2011, which is the subject matter of LAA No.443 of 2015 were acquired for widening of Muvattupuzha – Ettumanoor – Chengannoor State Highway, pursuant to the notification referred to above. The Land Acquisition Officer fixed the land value for the acquired lands at Rs.1,96,456/- per Are and on reference, the reference court 6 L.A.A Nos.405 of 2017, 443 of 2015 & C.O.Nos. 115 of 2018 & 79 of 2017 enhanced and re-fixed the land value at Rs.3,20,754/- per Are. The State as also the claimants are aggrieved by the land value fixation made by the reference court. Hence these appeals and cross objections. 3. Heard the learned Government Pleader as also the learned counsel for the claimants. 4. The learned Government Pleader submitted that the reference court has assumed arbitrarily that the acquired lands are better lands when compared to the basis document at least by 30% and fixed the land value for the acquired lands on that basis adding 20% cost escalation per year. It was pointed out by the learned Government Pleader that the maximum cost escalation that could be reckoned by the reference court in a case of this nature, in the light of the decision of the Apex Court in **The General Manager, Oil and Natural Gas Corporation Limited v. Rameshbhai Jivanbhai Patel and another** [(2008) 14 SCC 745], is 10-15% in the case of urban areas. It was contended that the 7 L.A.A Nos.405 of 2017, 443 of 2015 & C.O.Nos. 115 of 2018 & 79 of 2017 acquired lands being lands situated at Changannassery, even if 10% escalation is worked out after adding 30% from the land value shown in the basis document for the locational importance, the compensation payable would have been much less than the land value now fixed by the reference court. Per contra, the learned counsel for the claimants pointed out that in respect of an acquisition made for the very same purpose, pursuant to an earlier notification issued on 05.12.2004, after negotiation, the District Collector fixed the land value at Rs.3,00,000/- per cent. According to the learned counsel, the lands involved in the instant case are better lands when compared to the land, for which the District Collector has fixed the land value at Rs.3,00,000/- per cent and if the said land value at least is fixed, the claimants would have got much more compensation than what is granted by the reference court. The learned counsel has placed reliance on the judgment of this court in W.P(C). No.17103 of 2008, in support of the contention. 5. I have considered the contentions advanced by the 8 L.A.A Nos.405 of 2017, 443 of 2015 & C.O.Nos. 115 of 2018 & 79 of 2017 learned counsel on either side. It is seen that the land value fixation has been made by the Collector based on Ext.R1 document dated 21.01.2011. The land value shown therein would work out to be Rs.1,88,679.25 per Are. If 30% addition is made for the locational importance, the land value would come to Rs.2,45,283/- per Are. Even if the land value is arrived at on that basis applying 15% cost escalation cumulatively for the period in between the notifications, the land value would come to Rs.3,73,044/- per Are, which is more than the land value awarded by the reference court. 6. Be that as it may. It is seen from the Judge’s Papers in W.P.(C)No.17103 of 2008 that a bit of land which was part of SB College, Changanassery including a monumental arch was acquired by the State for widening of the very same road pursuant to an earlier notification dated 05.12.2004. There was some dispute as regards the acquisition of the monumental arch as also the land value fixed for the said purpose. It appears that the said issue has been resolved amicably between the parties, and in terms of the 9 L.A.A Nos.405 of 2017, 443 of 2015 & C.O.Nos. 115 of 2018 & 79 of 2017 settlement arrived at in this regard, the State has agreed to pay Rs.3,00,000/- per cent by way of land value. The settlement arrived at as referred to above has been endorsed by this court in the judgement rendered in the said case. If the acquired lands are better lands when compared to the land referred to in W.P.(C)No.17103 of 2008, as submitted by the learned counsel for the claimants, they are entitled to more compensation. But, there is nothing on record to make a comparison between the acquired lands and the land, which is the subject matter of W.P.(C)No.17103 of 2008. In the light of the decision of this court in W.P.(C)No.17103 of 2008, according to me, interest of justice demands that the claimants shall be given an opportunity to establish that the acquired lands are better lands or at least lands of the same nature when compared to the subject matter of the land involved in W.P.(C)No.17103 of 2008. In the result, the land acquisition appeals and cross objections are allowed and the matters are remitted for fresh disposal to the reference court. As the matters are remitted for fresh L.A.A Nos.405 of 2017, 443 of 2015 & C.O.Nos. 115 of 2018 & 79 of 2017 **==> picture [13 x 8] intentionally omitted <==** disposal, the claimants will be entitled to refund of the court fee paid in the cross objections. The parties are directed to appear before the reference court on 12.08.2019. All interlocutory applications in the appeals and cross objections are closed. **Sd/P.B.SURESH KUMAR, JUDGE.** DK