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2025 Supreme(Ker) 99

IN THE HIGH COURT OF KERALA AT ERNAKULAM
A.K.JAYASANKARAN NAMBIAR, EASWARAN S., JJ.
The State Of Kerala - Appellant
Versus
SARASAMMA - Respondent
[LA.App. Nos.558/2022, 587/2022, 614/2022, 603/2022, 98/2019, 200/2019, 531/2022, 522/2022, 524/2022, 560/2022, 27/2022, 555/2022, 571/2022, 97/2023, 98/2023, 106/2021, 131/2021, 617/2022, 296/2021 & 597/2022 and Cross Objection No.191/2022 in L.A.App No.555/2022]
Decided on : 12-02-2025

Advocates Appeared:
For the Appellant : ADV.T.K.SHAJAHAN, SR.GOVERNMENT PLEADER
For the Respondent: J.G.SYAMNATH, SHRI.P.U.SHAILAJAN, SC, KSIDC

Landowners are entitled to equal compensation for lands acquired under the same notification, regardless of the act under which the acquisition is processed, ensuring compliance with constitutional rights.

Headnote:(A) Land Acquisition Act, 1894 - Section 18 - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 26 - Compensation for land acquisition - Differentiation in compensation for similar lands acquired under different acts is impermissible - The reference court's reliance on sale deed No.925/2008 was justified, and the belting system adopted by the land acquisition officer was rejected as unsustainable. (Paras 14, 24, 44)

(B) Constitutional Law - Article 14 and Article 300A - Right to equality and property - Landowners are entitled to equal compensation for lands acquired under the same notification, irrespective of the act under which the acquisition is processed. (Paras 42, 43)

Facts of the case:
The appeals arose from land acquisition for a Life Science Park, with differing compensation amounts fixed under the erstwhile Land Acquisition Act and the new Act. The claimants contended that the compensation awarded was inadequate compared to market values established by sale deeds. (Paras 1, 2)

Findings of Court:
The court found that the market value of the land should be uniformly fixed at Rs.5,47,264/- per Are for all claimants, ensuring parity in compensation. The appeals by the State and requisitioning authority were dismissed. (Paras 45, 46)

Issues: The main issues included the validity of the belting system for compensation determination and the appropriateness of the reference court's reliance on specific sale deeds for market value assessment. (Paras 12, 18)

Ratio Decidendi: The court ruled that the belting system is impermissible when lands are acquired under a single notification, and all landowners are entitled to the same compensation based on comparable market values. (Paras 14, 44)

Result: Appeals dismissed with costs; land value fixed at Rs.5,47,264/- per Are for all claimants.

JUDGMENT :

Easwaran S., J.

These appeals have presented before us certain unique facts. On the one hand, the State as well as the requisitioning authority contend that the amount of compensation granted by the reference court is on the higher side, whereas on the other hand, the claimants contend that the amount fixed by the land acquisition officer is dismally low and it was therefore that the reference under Section 18 of the erstwhile Land Acquisition Act, 1894 was sought and the same was answered in their favour. The facts are unique in the sense that in respect of a single cause for land acquisition covered by one notification, land owners are differentiated on two different criteria;

(a) the award passed under the erstwhile Land Acquisition Act, 1894 and (b) the award passed under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 [Act 30 of 2013]. Different market values are fixed for the same category of lands acquired for the very same purpose albeit under two different enactments.

Facts of the case

2. A total extent of 105.27 hectares of land was sought to be acquired for establishment of a “Life Science Park” on request of the Kerala State Industrial Development Corporation ('KSIDC', for short). Section 4(1) notification was published on 14.10.2008 and award was passed on 21.11.2011. Possession was taken on 16.01.2012. The land acquisition officer categorised the land into six categories as follows:

Category

Nature

1

Dry land on the side of National Highway

2

Dry Land with PWD road

3

Dry Land with Panchayat road

4

Dry land with Pathway

5

Reclaimed land without access

6

Reclaimed land with access

The land acquisition officer relied on the basic document, Sale Deed No.2083/2008 dated 15.4.2008. In these appeals, we are concerned with category Nos. 2, 3, and 5. The land value fixed by the land acquisition officer for these categories is Rs.1,88,461/-, Rs.1,38,273/- & Rs.88,149/-, respectively. The reference court relied on sale deed No.925/2008 dated 15.4.2008 and refixed the land value at Rs.3,83,083/- for category No.2 and Rs.3,55,730/- for category No.3. The appeals arising out of the proceedings under the erstwhile Land Acquisition Act, 1894 are detailed as below:

Sl No

Appeal by state

Appeal by Requisition Authority

LAR Nos.

Category

Amount fixed by LAO per Are

Amount fixed by Reference Court per Are

1

LAA No. 558/2022

Nil

133/2012

II

1,88,461/-

3,83,084/-

2

LAA No. 555/2022

LAA No. 597/2022 & CO No 191/2022

128/2012

V

88,149/-

2,73,631.50

3

LAA No. 571/2022

LAA No. 97/2023

132/2012

II

1,38,273/-

3,55,730/-

4

LAA No. 131/2021

Nil

139/2012

III

1,38,273/-

3,55,730/-

5

LAA No. 200/2019

Nil

1/2013

III

1,38,273/-

2,16,049/-

6

LAA No. 98/2019

Nil

138/2012

III

1,38,273/-

2,90,123/-

7

LAA No. 106/2021

NIL

134/2012

III

1,38,273/-

2,90,123/-

3. As stated above, certain tracts of land were not subjected to any proceedings under the erstwhile Land Acquisition Act, 1894, but award was passed after the promulgation of Act 30 of 2013 on 3.11.2017. The land acquisition officer followed the categorization for the purpose of the acquisition under the new Act as well and determined the compensation, accordingly. In these appeals, we are concerned about category Nos.2, 3, 4, 5 & 6. The value fixed by the land acquisition officer for these categories is as follows:

Category

Value (Rs.)

2

1,28,000/-

3

96,000/-

4

91,200/-

5

86,640/-

6

35,000/-

Dissatisfied with the fixation of the market value, the claimants sought reference under Section 64

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