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1957 Supreme(Ker) 304

HIGH COURT OF KERALA
G.KUMARA PILLAI,C.A.VAIDIALINGAM, JJ.
N. C. Johns Trust
Versus
State of Kerala
A. S. Nos. 111 and 140 of 1954 E, from order of Di
Decided On : 10-11-1957

Advocates:
Mathew Muricken, Mani J. Meenattoor and V. S. Moothathu, for Appellant (in A. S. 111/54 and 1st Respondent (in A. S. 140/54); Government Pleader, for the State Respondent (in A. S. 111/54) and Appellant (in A. S. 140/54) and P. Govindan Nair, G. B. Pai and K. V. R. Shenoi, for 2nd Respondent (in A. S. 140/54).

The main legal point established in the judgment is the reliance on suspicion surrounding the transaction, knowledge of acquisition proceedings, and independent evidence for valuation to determine the market value of the acquired land.

Headnote:

Land Acquisition - Valuation of Property - Travancore Act XI of 1089 - S. 6, S. 13 - Sketch filed to determine the situation of the acquired plot - Transaction suspicion and knowledge of acquisition proceedings - Independent evidence for valuation - Market conditions and prevailing prices - Limitation for reference - Conflict in High Courts - Final decision on valuation and costs

Fact of the Case:

The case involved the acquisition of land by the Government for the construction of quarters. The claimants disputed the valuation of the land and made a reference to the court. The court considered the sketch of the acquired plot, transaction suspicion, knowledge of acquisition proceedings, independent evidence for valuation, market conditions, prevailing prices, and limitation for reference.

Finding of the Court:

The court found that the transaction between the claimant and the Tata Oil Mills Co., Ltd., was suspicious and entered into with knowledge of the acquisition proceedings. It also considered independent evidence for valuation and the rise in property prices over time. The court dismissed the appeals and determined the costs to be paid by the parties involved.

Issues: The issues included the valuation of the acquired land, suspicion surrounding the transaction, knowledge of acquisition proceedings, independent evidence for valuation, market conditions, prevailing prices, and the limitation for reference.

Ratio Decidendi: The court relied on the suspicion surrounding the transaction, knowledge of acquisition proceedings, and independent evidence for valuation to determine the market value of the acquired land. It also considered the rise in property prices over time and the conflict in High Courts regarding the limitation for reference.

Final Decision: The appeals were dismissed, and the costs were determined to be paid by the parties involved. The court left open the question regarding the right of the original landowners to receive a sum from the government.

Judgement

C. A. VAIDIALINGAM, J. :-

These appeals arise out of the acquisition by the Government of 96 cents of land in Survey No. 515/3A-11 of Alleppey Pakuthy, Ambalapuzha Taluk for the construction of quarters of the Resident Medical Officer, District Hospital, Alleppey.

2. The relevant date for purpose of computing the market value is 30-6-1947, being the date of notification under S. 6 of the Travancore Act XI of 1089.

3. The claim before the Land Acquisition Officer was at Rs. 350/- per cent and the Award was at Rs. 80/- per cent. Being dissatisfied with the Award, the claimants made a reference to court and in the court they restricted their claim to Rs. 250/- per cent. The learned Judge increased the valuation and awarded at the rate of Rs. 120/- per cent.

4. A. S. No. 111 of 1954 has been filed by the claimants desiring the value to be fixed at Rs. 250/- per cent. A. S. No. 140 of 1954 has been filed by the State against the increase awarded by the court. The State also takes a point that the reference itself is barred by limitation under S. 13 of Act XI of 1089.

5. There is a sketch filed in this case Ext. 4 which gives us a fair idea of the situation of the plot acquired as also the plots covered by the sale-deeds relied upon by the claimants and the State.

6. Mr. Mani J. Meenattoor, learned counsel for the claimants contended that his client is entitled to get at least the amount of Rs. 25,000/- for which he has purchased the properties from the owners, The Tata Oil Co., Ltd., Tatapuram. According to the claimants, there were negotiations between him and the owners and that he has paid the substantial consideration of about Rs. 24,000/- and the balance of Rs. 1,000/- is to be paid by him.

7. It is no doubt, seen from Exts. A to E and H to N that the claimant has purchased the property from the Tata Oil Mills Co., Ltd., and that he has been put in possession of the property.

8. But the learned District Judge has come to the conclusion that there is a lot of suspicion about this transaction. He has held that either the transaction has been entered into with the knowledge of the acquisition proceedings or that the claimant paid a fancy price for the property and that this price is quite unrelated to the prevailing market conditions.

9. Ordinarily, a party will be generally entitled to get at least the amount that he actually paid for a particular property provided he is able to satisfy the court that the transaction is a genuine one and was entered into having due regard to the market conditions prevailing at about that time. In this case, we feel that the criticism of the learned Judge is perfectly well founded. The letter Ext. N dated 3rd July, 1947 from the Tata Oil Mills Co., Ltd., to the claimant clearly shows that the claimant has made a point in his letter dated 6th June, 1947 that the acquisition proceedings were taken up some two years back.

10. Even Ext. M a letter written by Tata Oil Mills Co., Ltd., to the claimant on 5th June, 1947 refers to a letter of the party dated 29th May, 1947. In Ext. M it is seen that the Tata Oil Mills Co., Ltd., are advising the claimant to file any objections before the Government for acquisition. It will be seen that on the date of Ext. 1VI the S. 6 Notification has not been issued. It was issued only on 30-6-1947. Both Exts. M and N indicate to our mind that the owners and purchaser of the properties were aware of the steps taken by the St"te for acquisition of the property.

It is not certainly reasonable to expect a party to be anxious to purchase a property when he knows that Government have already decided to acquire the property. Further, the evidence of D. W. 1, the Proverthicar, is clear that before declaration is published, notice will be given to the owner of the land proposed to be acquired and the Tahsildar will make an inspection of the land. Though the Head Office of the Tata Oil Mills Co., Ltd., may not have been informed by their local branch, it is very clear that the off









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