High Court of KeralaDivision BenchAppeals preferred by the Requisitioning Authori...

Yoosuf Kunju & Abdul Vahab v. State of Kerala and Secretary, Punalur Municipality

Case / Petition Number:LA.A. No. 1262 of 2009 (A)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Pius C. KuriaKose
  • N. K. Balakrishnan
Judgment Date
2011-06-02
Court Decision / Holding
The appeals filed by the Requisitioning Authority are allowed to the extent noted, while the claimants’ appeals are dismissed. The court re-fixes the market value: Rs. 8,500 per cent for properties with frontage to the Kollam–Shenkotta road (Exts A4, A5, A6) and Rs. 6,500 per cent for other properties. The claimants are entitled to statutory benefits under Sections 23(2), 23(1A) and 28 of the Land Acquisition Act on the total re-fixed compensation, and costs are awarded as per receipts/certificates already produced. An explicit modification of the impugned judgments/decrees is ordered accordingly.
Final Disposition
Appeals preferred by the Requisitioning Authority are allowed to the extent; appeals preferred by the claimants are dismissed; compensation re-determined as stated; statutory benefits and costs directed as noted by the court.

Parties to the Case

Appellants / Petitioners

  • YOOSUF KUNJU
  • ABDUL VAHAB

Respondents

  • THE STATE OF KERALA, REP. BY ITS DISTRICT COLLECTOR, KOLLAM
  • THE SECRETARY, PUNALUR MUNICIPALITY

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri KKM. Sherif
  • • Sri P.M. Kunjimoideen Kutty
  • • Sri A.A. Ziyad Rahman
  • • Sri LAL K. Joseph
  • • Smt. Sheena Samuel

Counsels for Respondents

  • • Sri B. Krishna Mani
  • • Sr. Govt Pleader Smt. Latha T. Thankappan

Case Synopsis & Summary

This is a Land Acquisition Appeal arising from notifications issued under Section 4(1) of the Land Acquisition Act for lands in Punalur town within the Punalur Municipality. The Land Acquisition Officer awarded different compensation rates depending on frontage to the Kollam–Shenkotta interstate road and other land characteristics. The claimants sought enhanced compensation, relying on Exts A1–A9 and oral witnesses, while the Requisitioning Authority (Punalur Municipality) countered with rival valuations. The Reference Court initially re-fixed market value at Rs. 12,000 per cent for frontage lands and Rs. 10,000 per cent for other lands, a decision later set aside by this Court on appeal by the Requisitioning Authority in the wake of a guiding precedent. After Steel Authority of India Ltd. v. State of Kerala (1995(2) KLT, 683), the Requisitioning Authority participated in the enquiry with Exts R1–R3 and RW1–RW3, and the Reference Court re-fixed frontage lands at Rs. 9,000 per cent and others at Rs. 7,500 per cent. On appeal, the High Court held that post-notification documents (Exts A4–A6) could not be relied on and that Exts A7–A8 carried more probative value. It concluded that frontage lands should be valued at Rs. 8,500 per cent and non-frontage lands at Rs. 6,500 per cent, and modified the judgments accordingly. The claimants are entitled to statutory benefits under Sections 23(2), 23(1A) and 28, with costs awarded.

Provisions of Law Cited

Section 4(1) of the Land Acquisition ActSection 9(3) of the Land Acquisition ActSection 23(2) of the Land Acquisition ActSection 23(1A) of the Land Acquisition ActSection 28 of the Land Acquisition Act

Submissions & Arguments

Contentions of Appellants / Petitioners

The claimants contended that the localities of the lands were commercially significant within Punalur town, with Ext. A1 evidencing a shopping complex project and other material evidence showing frontage benefits. They argued that post-notification documents (Exts A4–A6) should be excluded as they were not contemporaneous with the notification, while Exts A7 and A8 bore greater probative value. The subordinate court’s market-value fixation was criticized as being based on guess work, and the court was urged to re-determine compensation with due regard to locality, frontage, and the evidence on record; Exts A4–A6 were argued to overstate or misstate value if relied upon. They urged enhancement consistent with the evidence and the plus/minus factors for each property. respondents:

Contentions of Respondents

The respondents challenged reliance on post-notification documents (Exts A4–A6), arguing they could not be used to determine fair market value. They asserted that the subordinate judge’s valuation rested on guess work rather than robust appraisal of admissible evidence. They maintained that Exts A7 and A8 have limited probative value and that the court should consider the entire evidence on record, along with the statutory provisions, to determine just compensation. They supported re-fixation of values that would reflect the evidentiary record and the relevant factors, and sought to determine an enhanced compensation within the framework of the Land Acquisition Act, while stressing that claimants be provided statutory benefits where applicable.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Steel Authority of India Ltd. v. State of Kerala1995(2) KLT 683PositiveCited to support the course of action for re-determination of compensation and participation of the Requisitioning Authority in the enquiry following a controlling precedent.

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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 N.K.BALAKRISHNAN THURSDAY, THE 2ND JUNE 2011 / 12TH JYAISHTA 1933 LA.App..No. 1262 of 2009 (A) --------------------------------LAR.12/1995 of SUB COURT,KOTTARAKKARA .................... APPELLANT(S)/CLAIMANTS B, C: ------------------------------------ 1. YOOSUF KUNJU, SALINA MANZIL, PUNALUR. 2. ABDUL VAHAB, RAJINA MANZIL, PUNALUR. BY ADV. SRI.KKM.SHERIF SRI.P.M.KUNJIMOIDEENKUTTY SRI.A.A.ZIYAD RAHMAN SRI.LAL K.JOSEPH SMT.SHEENA SAMUEL ## RESPONDENT(S)/RESPONDENTS: ------------------------------------- 1. THE STATE OF KERALA, REP. BY ITS DISTRICT COLLECTOR, KOLLAM. 2. THE SECRETARY, PUNALUR MUNICIPALITY. ADV. SRI.B.KRISHNA MANI FOR R2 SR. GOVT. PLEADER SMT.LATHA T. THANKAPPAN THIS LAND ACQUISITION APPEAL HAVING BEEN FINALLY HEARD ON 02/06/2011 A/W LAA.1147/09 & CON. CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ## PIUS C. KURIAKOSE & N. K. BALAKRISHNAN, JJ. ------------------------------------------------ L. A. A. Nos.1262, 1147, 1109, 1089, 1055, 1029, 1011, 997, 988, 967, 880, 888, 916, 917, 918, 920, 989, 990, 1086 and 1087 of 2009 -----------------------------------------------Dated this the 2[nd] day of June, 2011 ## **JUDGMENT** ## _Pius C. Kuriakose, J_ L.A.A. Nos.1262, 1147, 1109, 1089, 1055, 1029, 1011, 997, 988, 967 of 2009 are preferred by the claimants and the other LA.A Nos.880, 888, 916, 917, 918, 920, 989, 990, 1086 and 1087 of 2009 are preferred by the Requisitioning Authority namely the Punalur Municipality. The lands under acquisition were in Punalur village within the area of Punalur Municipality. The acquisition was on the basis of Section 4(1) notification published on 03/12/91 and 23/07/92. In the initial notification as well as in the notices issued under Section 9 (3) to the claimants, the properties were described as “Nilam”. But going by the Mahazars prepared and going by L.A.A.1262/09 & con. cases -2- the evidence adduced, it has been brought out that substantial portions of those properties were already reclaimed at the time of acquisition. The Land Acquisition Officer awarded two rates for the properties under acquisition. For properties which were enjoying the direct frontage of Kollam - Shenkotta interstate road, he awarded value at the rate of ` 2816/- per Are. For the other properties he awarded value at the rate of ` 2347/- per Are. Before the Reference Court, the claimants relied on in support of the claim for enhanced value, Exts.A1 to A9 and oral evidence of AWs.1 to 7. The court on appreciating the evidence, in the first instance would re-fix the land value at the rate of ` 12,000/- per cent for properties enjoying frontage of the Kollam - Shenkotta interstate road and for other properties at the rate of ` 10,000/- per cent. These awards were set aside by this Court on appeal by the Requisitioning Authority L.A.A.1262/09 & con. cases -3- following the judgment in _Steel Authority of India Ltd. v. State of Kerala (1995(2) KLT, 683)_ . Pursuant to that judgment, the Requisitioning Authority came on record before the Reference Court and participated in the enquiry. On the side of the Requisitioning Authority Exts.R1 to R3 sale documents were produced and three witnesses RW1 to RW3 were examined. The Reference Court on appreciating the entire evidence which was available on record has re-fixed the value of properties enjoying frontage of Kollam - Shenkotta road involved in LAA.920/09 corresponding to LAR.4/96, L.A.A No.918/09 corresponding to LAR.11/96 and LAA. No.1086/09 corresponding to LAR.12/96 at ` 9,000/- per cent. For all the other properties the court would re-fix the land value at Rs.7,500/- per cent. 2. In the appeals preferred by the claimants they have raised grounds challenging what they describe as the -4- L.A.A.1262/09 & con. cases inadequacy in the compensation re-determined by the Reference Court whereas in the appeals preferred by the Requisitioning Authority they challenge what they describe as the excessiveness of the compensation determined by the court below. 3. Sri.Ziayad Rahman, the learned counsel for the appellant/claimants and Sri.B.Krishna Mani, the learned Standing Counsel for the Requisitioning Authority addressed us in detail on the basis of the grounds raised in the appeal memoranda respectively filed by them. According to Sri.Ziayad Rahman the court below has not taken into account the importance of the locality where the properties were situated. The properties, according to the learned counsel, were situated in commercially the most important area of Punalur town. The learned counsel highlighted before us Ext.A1, a notification published by the local authority in -5- L.A.A.1262/09 & con. cases respect of a shopping complex put by them on the acquired property. We notice that the said property is situated in one of the most important localities of Punalur town. The so called minus factors referred to by the learned Subordinate Judge were not minus factors. If these were minus factors they were offset well by the plus factors. Sri.Krishna Mani per contra would resist all the submissions of Sri.Ziayad Rahman. According to Sri.Krishna Mani, the learned subordinate Judge after discussing the various items of evidence available on record has fixed the market value purely on guess work. Exts.A4, A5 and A6, according to the learned counsel should have been discarded straight away as they were post notification documents. Ext.A7, according to Sri.Krishna Mani is the one document which can have some relevance. But then Ext.A7 is in respect of dry land and the value reflected in Ext.A7 is only Rs.3,200/- per cent. -6- L.A.A.1262/09 & con. cases Ext.A8 document, which is in respect of original dry land having frontage of two roads, reflects the value of ` 6,000/per cent only. At any rate, the value fixed by the Reference Court is excessive. 4. We have very anxiously considered the rival submissions addressed at the Bar. We have made a quick survey of the evidence available on record. We find force in the submission of Sri.Krishna Mani that the post notification documents could not have been relied on. We also find force in his submission that the learned Subordinate Judge after appraising the documents and scrutinizing them thoroughly in the judgment has proceeded to fix the market value purely on guess work. We notice some force in the submission of Sri.Ziayad Rahman that the properties were situated in one of the important localities of the Punalur town. We are convinced that the market value awarded by L.A.A.1262/09 & con. cases -7- the Land Acquisition Officer in his award was grossly inadequate and there was justification for enhancing the market value. The question is as to what extent enhancement is justifiable. As observed by us, documents Exts.A4, A5 and A6, the documents very much relied on by the claimant, could not have been relied on as post notification documents. Exts.A7 and A8 are the two documents which have more probative value and decisive force in this particular case in the matter of re-determination of the market value. Relying on those documents and keeping in mind the plus and minus factors pertaining to the properties under acquisition, we come to the conclusion that the market value of ` 9,000/- per cent fixed by the learned Subordinate Judge for properties involved in Exts.A4, A5 and A6 at ` 9,000/-, is slightly excessive. According to us, based on the available legal evidence and doing some guess work -8- L.A.A.1262/09 & con. cases on the basis of the oral evidence available in the case, the market value of the properties involved in those cases can be re-fixed at Rs.8,500/- per cent. In the same way, we feel that the market value of Rs.7,500/- per cent fixed by the learned Subordinate Judge for the properties involved in the other cases which are not enjoying direct frontage at all is excessive. In modification of the impugned judgments and decrees, we re-fix the market value of those properties at Rs.6,500/- per cent. 5. The appeals preferred by the Requisitioning Authority are allowed to the above extent. The appeals preferred by the claimants are dismissed. It is needless to mention that the claimants will be entitled for all statutory benefits admissible under Sections 23(2), 23(1A) and under Section 28 of the Land Acquisition Act on the total re-fixed compensation to which they become eligible by virtue of the -9- L.A.A.1262/09 & con. cases judgment. In the facts and circumstances of the cases, we order that all the claimants will be entitled to the cost on the trial side as per receipts and certificates already produced by them. PIUS C. KURIAKOSE JUDGE N. K. BALAKRISHNAN JUDGE kns/-