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2026 Supreme(Online)(Ker) 26864

IN THE HIGH COURT OF KERALA AT ERNAKULAM
S.MANU, J
STATE OF KERALA REPRESENTED BY DISTRICT COLLECTOR – Appellant
Versus
JAMES GEORGE @ GEORGE JAMES – Respondent
LA.APP. NO. 24 OF 2026|L.A.R No.132 of 2013|L.A.A.No.132 of 2013|L.A.A.No.1063 of 2004|L.A.A. No.24 of 2024



Advocates:
For the Appellants/Respondents in LAR: REKHA C NAIR, SR.GOVERNMENT PLEADER
For the Respondent/Claimant in LAR:

15% land value escalation reduced to 10% to align with precedent in identical acquisition cases.

Headnote:The Land Acquisition Act, 1894, Section 18 governs references challenging compensation awards. Land measuring 0.0110 hectares was acquired for road widening, with initial compensation enhanced by the reference court to Rs.2,76,602/- per Are using a post-notification sale deed (Ext.A5), later set aside on remand. The court on remand applied 15% escalation from a prior judgment (Ext.A2) without specifying base year. The High Court determined 15% escalation excessive, scaling it to 10% per precedent. Issues framed include propriety of escalation rate and base year omission. Ratio: Escalation must align with identical cases; 15% reduced to 10%, base year omission upheld as non-interferable. Appeal disposed by reducing escalation to 10%; claimant entitled to statutory benefits.

Table of Content
1. land acquisition history and prior court determinations. (Para 1)
2. reducing escalation from 15% to 10% per precedent. (Para 2)

J U D G M E N T

Challenge in this appeal is against the judgment and decree dated 11.04.2025 in L.A.R No.132 of 2013 of the Sub Court, Thodupuzha. For widening of Thodupuzha Ramamangalam Road (Reach – II), an extent of 0.0110 Hectors of land in Block No.11 of Manakkadu village was acquired from the respondent. Dissatisfied with the compensation granted by the Land Acquisition Officer, respondent sought reference under Section 18 of the Land Acquisition Act, 1894 . The reference court enhanced the land value and fixed it at Rs.2,76,602/- per Are relying on Ext.A5 sale deed. Claimant was not satisfied with the enhancement granted by the reference court. L.A.A.No.132 of 2013 was filed before this Court by the claimant. This Court found that the reference court relied on a post notification sale deed for the purpose of fixing the land value and set aside the judgment and decree for the said reason. After the remand, the learned Sub Judge considered the reference afresh. The market value was determined by applying 15% escalation on the land value fixed in Ext.A2 judgment in L.A.A.No.1063 of 2004 of this Court. The base year was omitted for the purpose of applying escalation.

2. In L.A.A. No.24 of 2024 and connected cases, this Court held that escalation granted in identical cases at the rate of 15% was excessive. It was scaled down to 10%. Therefore, following the judgment in L.A.A. No.24 of 2024 , the escalation granted in the instant case at the rate of Rs.15% is scaled down to 10%. The reference court has omitted the base year for the purpose of applying escalation. Hence no interference is warranted regarding the same. In the result, the appeal is disposed of by reducing the escalation granted by the reference court to 10%. The respondent shall be entitled for all the statutory benefits.

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