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2005 Supreme(Ker) 257

Judges : K.S.RADHAKRISHNAN,S.SIRI JAGAN
M.Far Hotels Ltd. - Appellant
Versus
Union of India - Respondent
Case No : W.A.No.1796 of 2004 & W.P.(C) No.28270 of 2004
Decided On : 04/08/2005
Advocates Appeared :
For the Appellant: L. Nageswara Rao, (Sr. Advocate), K.P. Dandapani & E.M. Sadrul Anam, Advocates. For the Respondents: P.P. Rao, S.V.S. Iyer (Sr. Advocates), K. Ramkumar, Asst. Solicitor General (John Varghese), Pirappancode V. Sreedharan Nair & S. Ajayakumar, Advocates.

The main legal point established in the judgment is that the State Government cannot deprive a person of his property through executive orders and that such power can only be exercised by authority of law. The court emphasized the need for the State Government to act in accordance with the Constitution and the laws of the country, and not to be carried away by pressure groups or vested interests.

Headnote:

Possession - Kovalam Palace - Art. 162 of the Constitution, Public Premises (Eviction of Unauthorised Occupants) Act, 1971 - The court discussed the legality of the Government order G.O.(P) No.302/2004/RD dated 25.9.2004 and the notice issued by the District Collector for repossessing the property from the writ petitioner. The court held that the State Government acted arbitrarily and without authority of law, and that the possession of the property can only be disposed through a process known to law and not through executive fiat. The Government order and the notice were quashed, and the State of Kerala and its Revenue Officials were directed to put the petitioner back in possession of the properties taken from them.

Fact of the Case:

The case involved the possession of the Kovalam Palace and the land appurtenant thereto by the writ petitioners, who had acquired the property through a legal process known to law. The State of Kerala attempted to repossess the property through an order and notice, which the court found to be arbitrary and without authority of law.

Finding of the Court:

The court found that the State Government acted arbitrarily and without authority of law in attempting to repossess the property from the writ petitioners. It held that the possession of the property can only be disposed through a process known to law and not through executive fiat. The Government order and the notice were quashed, and the State of Kerala and its Revenue Officials were directed to put the petitioner back in possession of the properties taken from them.

Issues: The main issue was the legality of the Government order and the notice issued by the District Collector for repossessing the property from the writ petitioner. The court also considered the possession of the property by the writ petitioners and the actions of the State Government and its officials in attempting to dispossess them.

Ratio Decidendi: The court held that the State Government cannot deprive a person of his property through executive orders and that such power can only be exercised by authority of law. It emphasized that even an unauthorized occupant can be evicted only in a manner authorized by law, which is the essence of the rule of law. The court also highlighted the need for the State Government to act in accordance with the Constitution and the laws of the country, and not to be carried away by pressure groups or vested interests.

Final Decision: The Government order and the notice were quashed, and the State of Kerala and its Revenue Officials were directed to put the petitioner back in possession of the properties taken from them. The Writ Appeal and Writ Petition were allowed with a cost of Rs.10,000/- to be paid to the first petitioner by the State Government. The judgment, however, would not stand in the way of the State of Kerala to proceed through a known process of law, in respect of which the court expressed no opinion.

Judgment :-

K.S. Radhakrishnan, Ag.C.J.

Possession is nine points of the law is a precept. Every Claimant must succeed by strength of his own title not be weakness of the antagonist. Rightful owner cannot use force to put the person in possession out, but appeal to law; lest it may encourage lawlessness in the society.

2. Writ petitioners are aggrieved by an order G.O. (P) No.302/2004/RD dated 25.9.2004 issued by the Government of Kerala directing the District Collector to repossess from the writ petitioners the Kovalam Palace and the land appurtenant thereto measuring 4.13.30 hectares in Vizhinjam Village. The order was served on the first petitioner at 6.45. p.m. on 25.9.2004 (Saturday) directing the petitioner to deliver possession by 10 a.m. on (Monday) 27th September, 2004. Petitioners then filed W.P.(C) No.28270 of 2004 on 27.9.2004 itself and highlighted the urgency of the matter before the Hon’ble Chief Justice and got the matter posted on 28.9.2004. On a request made by the State the matter was posted at 1.45 p.m. Learned Single Judge ordered that the takeover of the Kogalam Hotel Complex covered by Ext.P13 would be subject to the result of the Writ Petition. Aggrieved by the interim order passed by the learned Single Judge W.A.No.1796 of 2004 was filed by the petitioners. In the Writ Appeal, a Bench of this Court ordered status quo and restrained the third respondent from taking possession of the remaining buildings and the premise until further orders.

3. Petitioners are aggrieved by the manner in which the land and the buildings are sought to be repossessed by the State of Kerala and Revenue Officers with the help of the police. Petitioners submitted that the executive action taken by the State and its officers by extra judicial methods is destructive of the basic principles of the rule of law. Petitioners pray that they shall be put back in possession of the properties forcibly taken possession of by the State through its machinery. We may deal with those contentions of the petitioners in detail in the later part of the judgment after dealing with the essential facts.

4. India Tourism Development Corporation (I.T.D.C.) was set up as a wholly owned Government of India Company in the year 1966 for the development and promotion of tourism in India. It is functioning under the aegis of Union of India. I.T.D.C. had identified various tourist places in the country of which one was at Kovalam, which it wanted to develop as a major international tourist destination. I.T.D.C., through Union of India made a request to the State of Kerala to acquire some land for the construction of a five star hotel and related tourist facilities for the purpose. State Government responded to the proposal and agreed to hand over the Kovalam Palace and adjoining land for that purpose. Kovalam Palace and the adjoining land originally belonged to the Travancore Royal Family, which were on 2.5.1964, as per L.A.C.No.207 of 1964 the Kovalam Palace acquired by the State of Kerala, after paying land acquisition compensation of Rs.5,26,431/-. For a few years the K.T.D.C. had operated a hotel in the acquired palace. Pursuant to the proposal made by I.T.D.C., a series of deliberations and correspondence enured between the I.T.D.C. and the State Government. Later the first respondent vide its letter dated 26.3.1970 conveyed sanction of the President of India for payment of Rs.9,50,534.39 to the State Kovalam. Request was made to the State Government to transfer the ownership of the property. Later the State of Kerala responded to the request made by the Government of India. Government of Kerala vide Order G.O. (MS) No.242/70/PD dated 18th July, 1970 had accorded sanction to hand over possession of the Kovalam Palace and the adjacent property, measuring 43 acres acquired for the Kovalam Project, to the Department of Tourism, Government of India pending finalization of the Terms and conditions of transfer. Government of Kerala then through K.T.D.C. transferr






















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