Kerala High Court Orders Enhanced Compensation For Lands Acquired For Construction Of Brahmapuram Waste Treatment Plant Phase II

The Division Bench of Justice Amit Rawal and Justice Easwaran S has fixed a uniform rate of rupees 10 lakhs per are as enhanced compensation.

“..the award of the Reference Court is hereby modified and the compensation is enhanced in respect of entire land consisting of different categories by applying uniform rate of Rs.10,00,000/- (Rupees ten lakhs only) per Are. Land owners will be entitled to other benefits awarded by the reference court, including statutory interest, along with proportionate cost. Accordingly the appeals preferred by the State are dismissed. Claimants' appeals are allowed in the aforementioned terms.”

The Court was considering appeals preferred by the State Government to set aside the amount awarded by the Reference Court by which it enhanced the compensation awarded by the Land Acquisition Officer. There were also appeals preferred by land owners for enhancement of compensation awarded by the Land Acquisition Officer.

The first notification was issued in the year 2007 for land acquisition. The possession of the land was taken in the year 2010 and the compensation amount was awarded by Land Acquisition Officer in 2012. The Land Acquisition Officer relied upon a sale deed where some lands were acquired by a construction company for a lesser value. The Land Acquisition Officer divided the land into eight categories and awarded compensation amounts ranging from rupees 1,74,042 to rupees 4,56,555. The Land Acquisition Officer relied upon a sale deed where similar land was sold for a lesser value.

Aggrieved by the compensation amounts, appeals were preferred by the land owners before the Reference Court under the Land Acquisition Act. The appeals were preferred by the land owners relying upon a sale deed by which similar land was sold for an amount of rupees Rs.10,09,227.

Further, the Court stated that awarding compensation by dividing land into different categories, called as belting system, was impermissible in law when the lands were acquired for the same purpose.

Court relying upon Apex Court decision in Besco Limited v State of Kerala (2023) said, “Thus once the belting system is impermissible, one price is required to be determined for all the land owners, for, it would not be conducive to cause discrimination among when the purpose for which it was acquired is one ie., Phase II of the Solid Waste and Treatment Plan.”

As such, the Court noted that the Reference Court must have determined a uniform rate while determining the compensation.

As such, the appeals were disposed of.

Case Number: LA.APP. No. 147 of 2021 & Connected Cases

Case Title: State of Kerala V Aysha & Connected Cases

Citation: 2024 LiveLaw (Ker) 659