IN THE HIGH COURT OF KERALA AT ERNAKULAM
P. SOMARAJAN, J.
Satheesan, S/o. Narayanan Pillai – Petitioner
Versus
The Deputy Collector And Competent Authority (Kerala) Gail (India) Limited and Anr. – Respondents
CRP No. 26 Of 2022, CRP NO. 17 OF 2022, CRP NO. 24 OF 2022, CRP NO. 453 OF 2019, CRP NO. 452 OF 2019, CRP NO. 458 OF 2019, CRP NO. 457 OF 2019, CRP NO. 460 OF 2019, CRP NO. 461 OF 2019, CRP NO. 462 OF 2019, CRP NO. 641 OF 2019, CRP NO. 633 OF 2019, CRP NO. 642 OF 2019, CRP NO. 643 OF 2019.
Decided On : 12-07-2023
Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 – Section 10(2), 3(1), 14 – Liability – Adequacy of compensation payable – Pertaining to legal sanctity –Fixation of compensation.
Finding of the court: matter is remanded back to District Court for fresh disposal – District Court directed to fix compensation taking into account mandate under Section 10 of special enactment viz., PMP Act and also by applying general and normal principle governing area – Parties shall appear before District Court for said purpose.
Result: Revision Petitions allowed.
JUDGMENT :
1. C.R.P.No.452/2019, 453/2019, 457/2019, 458/2019, 460/2019, 461/2019 and 462/2019 are by GAIL INDIA LIMITED, the respondent before the District Court, wherein the proceedings were initiated under Section 10(2) of Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 (hereinafter referred to as 'PMP Act' for short). Notification under Section 3(1) of the Act was issued on 12/03/2010 and notification under Section 6(1) of the Act was issued on 3/9/2010. The competent authority notified under the Act thereon passed an award fixing the compensation, against which the respective owners of the property had taken up the matter before the District Court under Section 10 of PMP Act for enhancement of compensation in accordance with the provisions contained in the Act. The District Court in turn re-assessed the compensation under Section 10(3) of PMP Act as ten times of notified fair value of the land by relying on the State Government notification - G.O.(Rt)No.5165/2017/RD dated 01/12/2017, by a common order, against which, the petitioner - M/s GAIL (INDIA) Ltd. came up in C.R.P.No.452/2019, 453/2019, 457/2019, 458/2019, 460/2019, 461/2019 and 462/2019 against the order in O.P.(PMP) 397, 276, 283, 253, 233, 277 and 166 of 2012 respectively. The respective claimants preferred C.R.P.Nos.642/2019, 24/2022, 26/2022, 633/2019, 643/2019, 17/2022 and 641/2019 respectively, dis-satisfied with the quantum of compensation.
2. Earlier, W.P.(C)No.2133/2020 was filed by the land holders, whose lands were acquired under notification dated 03/09/2010 claiming that the above mentioned Government Order dated 01/12/2017 should be made applicable to their lands also. The writ petition was dismissed by judgment dated 16/03/2022 holding that the G.O. cannot be made applicable to the lands covered under notification dated 03/09/2010.
3. The question came up for consideration is pertaining to the legal sanctity of the abovesaid State Government Order in the matter of fixation of compensation under Section 10 of the PMP Act. The abovesaid notification was issued based on a decision taken in a meeting chaired by Honourable Chief Minister on 11/11/2017 in partial modification of earlier orders issued viz., (1) G.O.(Rt) No.7325/2012/RD dated 29/12/2012 (2) G.O. (Rt) No.3195/2013/RD dated 04/06/2013 (3) G.O.(Rt) No.5436/2016/RD dated 16/12/2016 (4) G.O.(Ms) No.45/2017/RD dated 06/02/2017, by which the market value for the purpose of computing land compensation under Section 10 of PMP Act, 1962 has to be taken as ten times of the notified fair value of the land. Clause (IV) of the said Government Order says that compensation at the above rates shall be payable in respect of all property through which the GAIL Pipeline passes in Kerala right from the beginning of construction activity in January, 2012. The relevant portion of the order are extracted below for reference:
“I. The market value for the purpose of computing land compensation under Section 10(4) of the Petroleum and Mineral Pipelines Act, 1962 shall be taken as 10 times the notified fair value of the land.
II. *************
III. *************
IV. Compensation at the above rates shall be payable in respect of all property through which the GAIL Pipeline passes in Kerala right from the beginning of construction activity in January, 2012.”
4. It is Section 10 of PMP Act, 1962, which governs the area to determine the compensation payable or adequacy of compensation payable to the parties or liability thereof, which is extracted below for reference:
“Section 10 - Compensation
(1) Where in the exercise of the powers conferred by section 4, section 7 or section 8 by any person, any damage, loss or injury is sustained by any person interested in the land under which the pipeline is proposed to be, or is being, or has been laid, the Central Government, the State Government or the corporation , as the case may be , shall be liable to pay compensation to such person for such damage,
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