The conversion of exempted land into non-exempted categories does not automatically render the land as excess liable for surrender under S.87 of the Kerala Land Reforms Act.

1. A rather interesting question has arisen for decision in this case. That concerns the construction of S.87 of the Kerala Land Reforms Act and may be of importance as a question of common occurrence in future. When any land is exempt from the provisions of Chapter III of the Kerala Land Reforms Act, 1963, as land falling within the exempted categories specified in S.81(1) of the Act, whether a subsequent conversion of that land into a non-exempt category obliges the owner to surrender land as excess under S.87 of the Act denning such land as a quired on the date of conversion? Private forest is a category of land exempted from the ceiling provisions of the Act. If on 1-1-1964 the land was private forest it is exempt from the ceiling provisions on 1-1-1970 and therefore irrespective of the extent of such private forest held by a person on 1-1-1970 he can hold other land to the extent of the maximum permissible ceiling area. If such a person subsequently acquires land other than that in the exempted category he is liable under S 87 of the Act to surrender the excess arising by reason of such acquisition. That is provided for in order to prevent accumulation of lands in the hands of a person after 1-1-1970 though on 1-1-1970 he is permitted to hold only the land within the ceiling area. But a person holding land within the ceiling area on 1-1-1970 may convert land in the exempted category such as private forest into a coconut garden after 1-1-1970 and thereby may come to hold land other than that in the exempted category at a subsequent point of time in excess of the ceiling area. Has he an obligation to surrender the excess land? Cases may arise where persons may hold exempted rubber estates and feeling that it may be uneconomic to continue to hold them as rubber estates may convert them into coconut gardens. In such a case will they have any obligation to surrender any excess land by reason of conversion of the rubber estates into coconut gardens? This is illustrative of the questions that may call for answer in this case.

2. I will now refer to the relevant provisions of the Kerala Reforms Act (in short, the Act). Chapter III starts with S.81 which in sub-clause (1) enumerates various categories of lands saved from the operation of the provisions of Chapter III. Sub-section (3) of that section enables Government to exempt any specific land from the provisions of Chapter III. The ceiling area of land is defined in S.82 of the Act. The prohibition against owning or holding land in excess of the ceiling area is in S.83 of the Act That prohibits any person owning or holding or possessing under a mortgage land in the aggregate in excess of the ceiling area with effect from such date as is notified in the Gazette. Though S.81, 82 and 84 came into force on 1-4-1964 S.83 came into force only on 1-1-1970. The date notified under S.83 was also 1-1-1970. S 84 deals with certain voluntary transfers and provides for treating them as null and void for the purpose of the Act The obligation to surrender excess land arises by reason of the provision in S.85 (1) of the Act. That obliges any person owning or holding land in excess of the ceiling area on the date notified under S.83 to surrender such excess. Therefore S 85 creates only an obligation to surrender if excess is held on 1-1-1970 and holding of excess land after that date is not covered by that section. The procedure for surrender and other matters relating to such surrender are provided for in subsections (2) to (9) of S.85, S.85A deals with filing statement by certain persons and for the purpose of this case I am not concerned with that section. Vesting of excess land in Government on the determination of the extent and other particulars of land, ownership or possession or both of which is to be surrendered under S 85 is provided in S.86 of the Act. S.87 is relevant for our purpose and it is necessary to quote that section here. That section runs thus:

"87. Excess land o