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2025 Supreme(Online)(Ker) 41325

IN THE HIGH COURT OF KERALA AT ERNAKULAM
M.A. ABDUL HAKHIM, J
STATE OF KERALA – Appellant
Versus
SADASIVAN NAIR – Respondent
LA.APP. NO. 78 OF 2022 | LA.APP. NO. 88 OF 2022 | LA.APP. NO. 119 OF 2022 | LA.APP. NO. 455 OF 2022



Advocates:
For the Appellants/Petitioners: SMT. REKHA C. NAIR
For the Respondents: A.KRISHNAN, M.S.IMTHIYAZ AHAMMED, KRISHNADAS P.NAIR

The court determines appropriate land compensation rates based on established methodologies, revising arbitrary authority valuations.

Headnote:(A) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 - Section 74 - Land Acquisition Act, 1894 - The State Government appeals against the common Award dated 09/03/2020 by the Reference Authority regarding land acquisition for railway track doubling. The District Level Purchase Committee fixed the land value based on negotiation, but the Reference Authority's valuation was deemed arbitrary. (Paras 1-9)

(B) Appeals - Modification of Award - The Reference Authority incorrectly added 200% to the basic land value, while the earlier fixed market value included a 100% addition, necessitating a reduction in compensation. (Paras 6-7)

Facts of the case:
The State initiated land acquisition for railway expansion, appealing compensation determinations. Market and basic land values were disputed, with previous awards guiding the appeals.

Findings of Court:
The Appeals are allowed in part, fixing new compensation rates consistent with established standards.

Issues: Key issue revolves around the rationale of land value addition and compensation calculation methodology.

Ratio Decidendi: The court highlighted previous rulings that necessitated adherence to established valuation standards while determining compensation.

Result: Appeals allowed in part, with adjustments to land valuation.

Table of Content
1. state appeals against land acquisition award. (Para 1 , 2)
2. details on land acquisition proceedings and initial valuations. (Para 3 , 4 , 5)
3. evaluation criticized for arbitrary valuation adjustments. (Para 6 , 7)
4. court affirms established standards for compensation. (Para 8)
5. revised compensation reflects prior standards. (Para 9)

JUDGMENT

[LA.App. Nos.78/2022, 88/2022, 119/2022, 455/2022]

1. The State Government has filed these Land Acquisition Appeals under Section 74 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (hereinafter referred to as ‘the LA Act, 2013’).

2. These Appeals arise from the Land Acquisition References disposed of by the Land Acquisition Rehabilitation and Resettlement Authority, Alappuzha (hereinafter referred to as ‘the Reference Authority’) by a common Award dated

09/03/2020.

3. The State Government initiated land acquisition proceedings under the Land Acquisition Act, 1894 (hereinafter referred to as ‘the LA Act, 1894’) to acquire 21.580 hectares of land spread in 9 villages, namely, Karumady, Karuvatta, Cheruthana, Haripad, Thakazhi South, Thakazhi North, Kumarapuram, Ambalappuzha and Veeyapuram in Karthikappally, Ambalappuzha and Kuttanad Taluks for doubling the railway track between Haripad and Ambalappuzha. Later, the total extent of land required for acquisition was reduced to 19.24.33 Hectares. The lands involved in the present References are dry land in category No.C situated in Cheruthana village. The description of category No.C is ‘dry land with pathway access’.

4. Section 4(1) Notification under the LA Act, 1894 is dated

24.06.2010. When the LA Act, 2013 came into force with effect from 01.01.2014, on the direction of the Government, the Land Acquisition Officer passed temporary Awards, fixing the land value @ Rs.74,823/- per Are, as the Rules under LA Act, 2013 were not framed. After framing the Rules, the Land Acquisition Officer passed final Awards fixing land value @ Rs.77,623/- per Are.

5. The District Level Purchase Committee (DLPC) had fixed the market value of the land after conducting a detailed negotiation with landowners. The DLPC had fixed the land value @ Rs.2,47,594/- per Are. The formula adopted by DLPC was to take 200% of the basic land value with 30% solatium and 12% additional land value [Basic Land value + 30% Solatium +12% Addl Land Value) X 200%]. The market value fixed by the DLPC was approved by the State Level Empowered Committee (SLEC). Several landowners settled their claims by accepting the market value fixed by the DLPC.

6. The Reference Authority awarded enhanced compensation fixing the land value @ Rs.2,24,469/- per Are. The Reference Authority fixed the land value relying on the basic land value fixed by the DLPC and fixed market value, adding 200% of the basic land value to the basic land value [Basic Land Value + 200% of Basic Land Value]. In effect, 300% of the basic land value of Rs.74,823/- per Are fixed by the DLPC was taken to arrive at the market value of Rs.2,24,469/- per Are fixed by the Reference Authority.

7. In the Judgment dated 02.07.2025 in L.A.Appeal No.252/2021 & connected cases arising from the very same Section 4(1) Notification, this Court has found that there is no rationale to add 200% to the basic land value by the Reference Court instead of 100% added by the DLPC and that such an addition of 200% by the Reference Authority is arbitrary and without any material to support the same and accordingly fixed land value by taking 200 % of the Basic Land Value fixed by DLPC.

The same criteria is applicable in these appeals also.

8. In these cases, DLPC had fixed the Basic Land Value at Rs.74,823/- per Are and 200% of the same is Rs.1,49,646/- per Are.

9. Accordingly, these Appeals are allowed in part without costs, modifying the impugned Awards so far as it relates to the fixation of market value of the land, by fixing land value @ Rs.1,49,646/- per Are for the

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