The fragmentation and sale of plantation lands without adherence to the Kerala Land Reforms Act's provisions is illegal, as such actions violate legislation aimed at agricultural land preservation.

1. A voluntary organization by name 'one earth one life' registered under the Travancore Cochin Scientific Literary and Charitable Societies Act has come up with Writ Petition (C)No.28496/2016 for a declaration that the fragmentation and sale of Kinalur estate, (hereinafter referred to as the estate) a rubber plantation for non - plantation purposes, by the 10th respondent, M/s.Cochin Malabar and Industries Ltd., (hereinafter referred to as the 'company'), is illegal as it will defeat the purpose of the Kerala Land Reforms Act. The petitioner is also challenging a Notification of the State Government dated 27/11/2015 granting exemption of stamp duty for registration of sale deeds in respect of private sale causing a loss of Rs.2,39,56,220/- to the State Exchequer.

2. Facts, relevant, are stated in brief: -
The estate is a rubber plantation having a total extent of 2438 acres (987.27 hectares) comprised in re - survey Nos.94, 95/1, 102/2, 103,104,105/1, 105/4, 108, 109, 110, 111, 112, 113, 114/1, 114/3 of Kinalur village, R.S.No.2000/2, 2000/5, 1996/2, 1985/2, 1981/1, 1981/3, 1640/3, 1644, 1648/2, 1670/3, 1671/2, 1522/2, 2026/4 of Kanthalad village, R.S. 1/1, 1/3, 1/5,3, 117/1, 118 / A of Unnikulam Village. R.S.No.1/2, 1/3 of Raroth Village, R.S.No.81, 83/1, 83/4, 83/5, 84, 85 of Kozhikode District. Respondent No.10, the company is the owner of the estate. This estate comes under the exempted category under the provisions of Kerala Land Reforms Act (for short 'KLR Act')as it is a rubber plantation. Due to some financial problems in the year 2001 the company decided to sell 450 acres which constitute the Thamarassery Division of Kinalur estate and the said idea was conveyed to one Sri. Jose Kynadi, the 12th respondent who is engaged in the real estate business and his business partner Sri. P. K. C. Ahammedkutty. The company appointed the 12th respondent as a labour consultant to the company, for a period of one year on 01/02/2002 as per Ext.P1 to advise the company in the matters regarding the settlement of dues of its employees The respondents 14 to 17 are the recognized workers Union of the estate. Later the company decided to sell the entire estate as per its resolution dated 07/09/2002. Consequently, on 27/07/2003 the company entered into an agreement with Sri P. K. C. Ahammedkutty, he being the highest bidder for sale of the entire estate for a sale consideration of Rs.31.10 Crores. The dispute of the laborers with the company was also amicably settled on 28/02/2003 as per Ext.P2 settlement agreement. As per Ext.P2, the company has to pay all the statutory liabilities of the permanent workers, including gratuity as the workers agreed to resign voluntarily from the estate. In addition to the above the company has to pay to all permanent workers 10 days' salary per year for the number of completed years of service per worker as ex - gratia. All permanent workers will be paid ex - gratia at the rate of 25 days' salary for every year for the remaining service up to the completion of the age of 58 years. It was also agreed by the purchaser Sri P. K. C. Ahammedkutty that the permanent workers on the rolls of the estate staying in the labor line will be given an extent of 3 cents of land in the labour line and 100 cents of land elsewhere and permanent workers who do not stay in labour line will be given 103 cents. The workers have to bear the stamp duty, registration and documentation charges to register the land as per the settlement. This agreement itself is illegal as it was made with an intention to fragment the estate and to sell it to strangers under the guise of settling the dispute of the workers. On 28/02/2003, 10th respondent issued Ext.P3 letter to the Regional Joint Labour Commissioner, Calicut stating that the company decided to sell the estate after settling all the liabilities of the workers as per law and the compensation will be paid by Sri P. K. C. Ahammedkutty, who is the proposed purchaser of the estate. Thereaf