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2019 Supreme(SC) 1090

K. H. Nazar – Appellant
Versus
Mathew K. Jacob – Respondent


Advocates Appeared:
For the Petitioner(s):K.V. Vishwanathan, Bechu Kurian Thomas, P. Vinay Kumar, Mukunda Rao, Martin Chacko, Enoch David, Advocates
For the Respondent(s):Romy Chacko, Prashant Kumar, Shakti Chand Jaidwal, Pallav Shishodia, G. Prakash, Jishnu M.L., Priyanka Prakash, Beena Prakash, Advocates

Judgement Key Points

Key Points: - The term "commercial site" is defined as land used principally for trade, commerce, industry, manufacture or business, and is distinct from vacant land; the judgment holds that quarrying land does not fall within "commercial site" (!) (!) (!) . - Section 81 enumerates exemptions for various land types and clarifies that "sites" (like house sites, temples, buildings) are exempt, and that "commercial sites" cannot include vacant land or quarrying activities, per the majority view (!) (!) (!) . - The Court upholds the majority Full Bench decision that quarry land used for quarrying is not a commercial site and thus does not get exempted under Section 81(1)(q); the broad interpretation to include quarrying would defeat the Act’s object (!) (!) (!) . - The Act is a beneficial legislation intended to impose ceiling on land holdings and distribute excess land to landless, requiring purposive/ liberal construction to promote its objects; the Court rejects extending "commercial site" to quarry operations on the ground of environmental considerations not guiding interpretation of Sections 2(5) and 81(1)(q) (!) (!) (!) . - Government exemption under Section 81(3) cannot be used to interpret Section 81(1)(q); the overriding power cannot override the statutory definition when interpreting exemptions (!) . - The dominant principle is to avoid Procrustean literalism in welfare statutes; interpret in light of mischief addressed and desired remedy (!) (!) . - The appeals are dismissed; the majority view is upheld (!) (!) .

What is the interpretation of "commercial site" under Section 2(5) and Section 81(1)(q) of the Kerala Land Reforms Act, 1963?

What is the distinction between ‘land’ and ‘site’ in the context of section 81, and does quarrying land qualify as a commercial site exempt from the Act?

What is the correct approach to interpreting a beneficial statute like the Kerala Land Reforms Act—strict construction of exclusionary provisions versus purposive construction—to avoid evasion and promote its objects?


JUDGMENT :

L. NAGESWARA RAO, J.

Leave granted.

1. The width and amplitude of the expression ‘commercial site’ in Section 2(5) and Section 81 (1) (q) of the Kerala Land Reforms Act, 1963 (for short “the Act”) falls for our consideration in these Appeals. Commercial sites are exempted from the purview of the Act. The question whether a rocky land which is used for quarrying purposes can be treated as a ‘commercial site’ and thereby excluded from the applicability of the Act was answered by a learned Single Judge of the Kerala High Court by holding that mere blasting of rocks and conversion into metals does not render the area a commercial site. K. Krishnankutty vs. State of Kerala and Others, CRP No. 1245/1975. Twenty years after the said judgment, a Division Bench of the Kerala High Court took a different view. Quarrying was held to be a commercial operation involving the process of manufacture. Hence, it was held that a quarry falls within the ambit of ‘commercial site’ and is exempted from the applicability of the Act. State of Kerala vs. Mohammedali Haji, (1996) 1 KLT 584 (DB).

2. The Appellant requested environmental clearance for his quarry which was recommended in his favour by th

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