HIGH COURT OF KERALA
A. K. Jayasankaran Nambiar, Easwaran S., JJ
ABDUL SALAM – Appellant
Versus
STATE OF KERALA – Respondent
CO 191/2022
(A) Land Acquisition Act, 1894 - Section 18 - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 26 - Appeals regarding land acquisition compensation - Differing compensation amounts for lands acquired under the same notification due to reliance on different Acts - Reference court's findings on market value based on comparable sale deeds upheld. (Paras 1, 5, 12, 14, 26, 44)
(B) Belting system - Adoption of a belting system for land valuation deemed impermissible when large tracts are acquired for the same purpose under one notification, violating principles of fair compensation. (Paras 14, 18)
Facts of the case:
The appeals arise from the acquisition of 105.27 hectares for a Life Science Park, where claimants argue for higher compensation based on a sale deed, while the State contends the awarded amounts are excessive. (Paras 1, 2)
Findings of Court:
The court rejected the belting system for land valuation and upheld the market value of Rs.5,47,264/- per Are, applicable uniformly to all claimants. (Paras 44, 46)
Issues: The court addressed whether the reference court erred in adopting the belting system and the validity of the market value established based on comparability of land. (Paras 12, 14, 26)
Ratio Decidendi: The court ruled that the belting system is not permissible for contiguous lands acquired under one notification and emphasized the need for uniform compensation to uphold constitutional rights. (Paras 14, 44)
Result: Appeals dismissed; land value fixed at Rs.5,47,264/- per Are for all claimants, with costs imposed on the requisitioning authority.
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 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. | Catego ry | 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 of the Act 30 of 2013. The reference court enhanced the market value as follows:
| Category | Value (Rs.) |
| 2 | 5,47,264/- |
| 3 | 5,25,000/- |
| 4 | 5,21,000/- |
| 5 | 4,10,000/- |
| 6 | 4,56,000/- |
4. Altogether nine references were answered and the State as well as the requisitioning authority have preferred the following appeals:
| N o Sl | Appeal by State | Appeal by requisitioning Authority | LAR Nos. | Category | Awarded by LAO (in Ares) | Amount awarded by reference (in Ares) |
| 1 | LAA No. 560/2022 | Nil | LAR No. 24/2018 | II | 1,28,000/- | 5,47,264/- |
| 2 | LAA No. 524/2022 | Nil | LAR No. 25/2018 | V | 86,640/- | 4,10,000/- |
| 3 | LAA No .531/20 22 | N | ||||
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