The fair value fixed by the government is not the market value, and the market value should be determined based on the value of the property in the neighboring locality at which a prudent seller may sell his property.

This writ petition is filed challenging Exts.P4 and P6 and for a direction to the 2nd respondent, the District Collector to refix the market value of the property by estimating the probable market value during August, 2008 after hearing the petitioner and for other reliefs.

2. Ext.P4 is an order passed by the District Collector pursuant to directions issued by the Court in WP(C) No. 22501/2006 fixing the value of the property at Rs.1,75,000/- per Are and the petitioner was called upon to remit the said amount, failing which, petitioner was informed that action would be taken under Section 44 of the Kerala Revenue Recovery Act. Ext.P6 is a letter dated 25/10/2011 informing the petitioner that his request for remitting the value of property and the fair value fixed by the Government cannot be accepted.

3. The short facts which arises for consideration in the writ petition are as under:-

Petitioner is a company which purchased 25 cents of land in Sy.No.1276/3 of Karikode Village as per sale deed dated 3/12/1998. The petitioner also constructed factory building, office and other structures and has established a curry powder factory. On 30/11/2001, petitioner received a notice from the District Collector stating that the original owner of the property, viz., the 5th respondent, was liable to pay sales tax dues. The amount payable was Rs.45,20,997/-. Though the petitioner filed a suit as OS No.57/2002 challenging the revenue recovery proceedings, the same came to be dismissed. Petitioner therefore filed WP(C) No. 22501/2006 challenging the revenue recovery proceedings. During the pendency of the revenue recovery proceedings, further proceedings were stayed on condition of the petitioner providing a bank guarantee for Rs.10,00,000/-. Petitioner had submitted the bank guarantee which is still in force. The writ petition was disposed of directing the District Collector to inspect the property and estimate the present value of the property excluding the value of building and machinery. It was made clear that if the petitioner offers the market value, the same will be collected and the attachment lifted. Ext.P3 is the judgment dated 29/8/2008. Petitioner submits that though the judgment was delivered in the year 2008, no action was taken by the 2nd respondent for a long time. However, as per letter dated 6/12/2010, petitioner was served with Ext.P4. Petitioner filed an objection stating that he is willing to pay the fair value fixed by the Government, which came to be rejected in terms of Ext.P6.

4. Petitioner further stated that he purchased another 18.20 ares in the very same survey number at the rate of Rs.28,626/- per Are. Ext.P8 is the said document. It is also submitted that the petitioner is willing to surrender 25 cents of land from the extent of property which he had purchased in lieu of the property against which the revenue recovery proceedings are initiated. It is in the said circumstances that this writ petition has been filed inter alia contending that the revenue authorities have not complied with the directions issued by this Court in judgment dated 29/8/2008 in WP(C) No. 22501/2006 and that the value of the property was highly inflated and has no relationship whatsoever with the fair value fixed for the property in the year 2010. According to the petitioner, the value of the property prevailing during 2008 ought to have been fixed pursuant to the judgment in WP(C) No. 22501/2006. It is stated that the valuation had been made at Rs.1,75,000/- per Are without any basis.

5. Counter affidavit has been filed wherein it is contended that the property originally belonged to Ms/.High Range Agencies, Thodupuzha which became liable for payment of Rs.45,20,997/- as sales tax dues during the period 1994-95. Revenue recovery proceedings were taken against the defaulters, Sri.Shaji Sebastian and Sri.Avirachan George. The property of Sri.Shaji Sebastian was also attached. On enquiry it was revealed that Sri.Avirachan George had tr