1. The legality of the ceiling proceedings initiated under the Kerala Land Reforms Act, 1963 ['the Act' for short] against HMT (Machine Tools) Ltd. ['HMT' for short] falls for consideration in this Civil Revision Petition filed under Section 103 of the Act.

2. The ceiling proceedings earlier initiated in the year 1976 were dropped on accepting the ceiling return of HMT whereunder exemption as a Central Government undertaking was claimed. The proceedings to re-open the ceiling case in the year 1990 were dropped when HMT obtained exemption from the Act by notification issued by the State Government. The notification bearing No.48499/N2/89/RD dated 29.7.1991 stipulated that HMT should utilise the entire extent of land allotted for industrial purpose within four years. The State Government noticed that large tracts of land had been transferred to Naval Armament Depot and the Kerala State Electricity Board and that vast area was kept unutilised by HMT. Proceedings were therefore initiated to resume possession of about 400 acres of land which was challenged by HMT in O.P.No.19718/1995 on the file of this Court. Later the writ petition was withdrawn when HMT handed over 300 acres of land to KINFRA (The Kerala State Industrial Infra Structure Development Corporation). This was on the request of the State Government who issued the notification G.O (MS) No.207/2000 dated 4.7.2000 granting exemption from the Act in respect of 100 acres of land held by HMT. The ceiling case was later re-opened in the year 2002 by the Taluk Land Board, Kanayannur calling upon HMT to surrender lands allegedly held by it in excess of the ceiling area.

3. The authorised officer deputed by the Taluk Land Board under Section 105A of the Act reported that an extent of 251.40.000 acres of land is held by HMT as in excess and liable to be surrendered. It was also reported that 240 acres in R.S.No.321/1 and 60 acres in R.S.No.321/1 had been handed over to KINFRA and Cooperative Academy of Education respectively. HMT filed an objection to the report of the authorised officer pointing out that 20.77 acres acquired for Irumpanam - Kalamassery road is liable to be exempted. HMT contended that the remaining land in their possession is liable to be excluded under Section 81(1)(c), (m), (o), (p) and (u) of the Act. This statutory exemption is in addition to the exemption of 100 acres earlier granted by the State Government which lead to the withdrawal of O.P.No.19718/1995. HMT added that the proceedings initiated under the Act is actuated by malice at the instance of the District Collector for refusal to surrender land for a Satellite Township.

4. The Taluk Land Board has by the order impugned dated 27.4.2002 directed HMT to surrender 101.74.10 hectares (251.40.000 acres) as in excess of its ceiling area under the Act. HMT has filed this Civil Revision Petition specifically urging in ground 'B' of the memorandum that the proceedings are without authority of law and contrary to the Act. It appears that HMT later sold 70 acres out of the 100 acres of land exempted by the Government to Blue Star Realtors (P) Ltd. allegedly to wipe off its liability. The sale was questioned in a public interest litigation wherein a Division Bench of this Court by judgment dated 11.8.2009 in WP (C) No.8172/2008 observed as follows:-

“We make it clear that none of our observations made in the judgment other than on 100 acres of land covered by Ext.R1(i) notification shall have any bearing on the ceiling proceedings initiated against the HMT and which is pending before this Court in CRP.No.1026 of 2002.”

The Supreme Court in Special Leave to Appeal therefrom however removed all restrictions in the disposal of this Civil Revision Petition and the relevant part of the order dated 8.1.2010 is extracted hereunder:

“(2) That the impugned order of the High Court will not have any bearing on the ceiling proceedings initiated against HMT pending in the High Court in CRP.No.1026 of 2002.”

Theref