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2024 Supreme(Ker) 1336

IN THE HIGH COURT OF KERALA AT ERNAKULAM
NITIN JAMDAR, C.J., S. MANU, J.
T.N. MUKUNDAN S/O NARAYANAN – Petitioner
Versus
STATE OF KERALA – Respondent
WP (C) Nos. 26592, 35561 of 2022
Decided On : 28-11-2024

Advocates:
Advocate Appeared:
For the Petitioners: RENJITH THAMPAN, V.M. KRISHNAKUMAR, MAYA M.
For the Respondents: N. MANOJ KUMAR, S. RENJITH

IMPORTANT POINT
The State must deposit all funds collected under Section 27A(3) into the Agricultural Promotion Fund and utilize them according to the Act's provisions, ensuring accountability and transparency.

Headnote:

(A) Kerala Conservation of Paddy Land and Wetland Act, 2008 - Sections 2(1), 3, 13, 27A, 27D - Public Interest Litigation regarding non-utilization of Agricultural Promotion Fund - Petitioner contended that funds collected under Section 27A(3) were not deposited into the Fund, violating statutory provisions - Court directed that all amounts collected under Section 27A(3) must be credited to the Fund and utilized as per Rule 14 of the Rules of 2008. (Paras 1, 30)

(B) Accountability and Transparency - Court emphasized the need for a yearly audit of the Agricultural Promotion Fund by the State Audit Department to ensure proper utilization of funds collected for the conservation of paddy lands. (Paras 30)

Facts of the case:

The Petitioner filed writ petitions alleging that the State failed to account for and utilize funds collected under the Kerala Conservation of Paddy Land and Wetland Act, 2008, for the restoration of paddy lands, despite significant amounts being collected.

Findings of Court:

The Court found that the State had not deposited the collected funds into the Agricultural Promotion Fund as mandated by the Act, and directed immediate compliance with the statutory provisions regarding fund management.

Issues: The main issues were the accountability of the State in managing the Agricultural Promotion Fund and the proper utilization of funds collected under Section 27A(3) of the Act.

Ratio Decidendi: The Court ruled that the amounts collected under Section 27A(3) must be deposited into the Agricultural Promotion Fund and utilized according to the provisions of the Act and Rules, emphasizing the importance of adhering to statutory mandates.

Result: Writ petitions disposed of with directions for compliance.

JUDGMENT :

NITIN JAMDAR, C.J.

1. The Kerala Conservation of Paddy Land and Wetland Act, 2008 (Act of 2008) is an Act to conserve the paddy land and wetland and to restrict the conversion or reclamation thereof in order to promote growth in the agricultural sector and to sustain the ecological system, in the State of Kerala. For the conservation of paddy lands and wetlands in the State of Kerala, the Agricultural Promotion Fund is constituted under Section 27D of the Act of 2008, which fund is utilised for various purposes, including the restoration of paddy fields. The Fund is generated by the State by charging a fee for permission to use the paddy lands for commercial purposes. The non-utilisation of this Agricultural Fund for the conservation of paddy lands and their restoration is the issue raised in these two Public Interest Litigations.

2. These writ petitions are filed in the public interest by the same Petitioner. The Respondents are the State of Kerala, represented by the Chief Secretary; the Secretaries of the Departments of Revenue and Finance; the Agricultural Production Commissioner; the Land Revenue Commissioner; the Accountant General; the District Collector, Thrissur, and the Principal Agricultural Officer, Thrissur.

3. In W.P. (C) No. 26592 of 2022, the Petitioner has sought to place before the Court the action of the Respondents in not accounting for the amounts received from the persons who have obtained sanction for changing the character of their lands from paddy lands to other purposes such as paramba pursuant to the orders under Section 27A of the Act of 2008. It is the contention of the Petitioner that though crores of rupees are collected under Section 27A of the Act, they are not accounted for and not even 3% of the amount is transferred to the Agricultural Promotion Fund. By making this grievance, the Petitioner in W.P. (C) No. 26592 of 2022 has sought for direction to the Respondents to ensure that the amounts received as fee under Section 27A(3) of the Act of 2008 are directly sourced to the account of the Agricultural Promotion Fund constituted under Section 27D of the Act. The Petitioner has also sought for a writ directing the Respondents to transfer the entire amount from 2018 to till date as a Fee under Section 27A(3) of the Act of 2008 to the Agricultural Promotion Fund of which the Land Revenue Commissioner - Respondent No. 5 therein is the State Level Officer, within such time as may be fixed by this Court. The Petitioner has also sought for a further direction to the Respondents to ensure that the amounts received under Section 27A(3) is utilised only for the purposes mentioned under Rule 14(2)(a) to (e) of the Rules of 2008. In W.P. (C) No. 35561 of 2022, the grievance made by the Petitioner is that the Respondents are not enforcing the order passed under Section 13 of Act of 2008 on the ground that adequate funds are not available for restoration of paddy land, directed to be restored under Section 13.

4. These two petitions are heard together. Heard Mr. Renjith Thampan, learned Senior Advocate appearing for the Petitioner and Mr. S. Renjith, learned Special Government Pleader appearing for the State.

5. Section 2(1) of Act of 2008 defines the change in nature of unnotified land as an act or series of acts that changes the nature of unnotified land irreversibly, making it impossible to revert to the original condition by ordinary means. The Fund referred to in Act of 2008 is the Agricultural Promotion Fund constituted under Section 27D. The paddy land, as defined in Section 2(xii), refers to all types of land in the State where paddy is cultivated at least once a year or is suitable for paddy cultivation but is uncultivated and left fallow. This definition includes related constructions like bunds, drainage channels, ponds, and canals. Wetland is defined under Section 2(xviii) of Act of 2008 as land lying between terrestrial and aquatic systems, where the water table is usually at or near the s

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