Relevant Provisions of Kerala Land Reforms Act – on Purchase Certificate,  Plantation Exemption & Ceiling Area – in a Nutshell

Saji Koduvath, Advocate, Kottayam.

Objects of Kerala Land Reforms Act, 1964

It is clear that the object of the Kerala Land Reforms Act, 1964 is –

  • to distribute excess land among landless people by taking it from landlords/persons holding beyond the ceiling limits.
  • It is also to help cultivation process in a most economic manner as well to promote agricultural growth. Needless to say that land reforms imparted drastic changes to economic and social outlook of the country.
  • (Shircy, J. in One Earth One Life V. State of Kerala : 2019 2 KHC(SN) 10; 2019 1 KLT 985)

PART I

CHAPTERS II & III, KLR Act – Outline

Chapter II.

  • Chapter II (Sections 3 to 80G) of the KLR Act speaks about ‘Provisions Regarding Tenancies’. It deals, among other things, with:
    • fixity‘ (to tenants),
    • vesting of property in Govt.,
    • purchase of landlord’s rights by cultivating tenants,
    • issuance of ‘certificate of purchase‘,
    • rights and liabilities of Kudikidappukars.
  • Sec. 3(1) says that nothing in Chapter II shall apply to:
    • leases of lands belonging to or vested in the Government, Leases-of private forests, tenancies in respect of plantations exceeding thirty acres in extent, etc.

Chapter III.

  • Chaptr III (Sections 81 to 98A) of the KLR Act deals with ‘Restriction on Ownership and Possession of Land in Excess of Ceiling Area and Disposal of Excess Lands’.
  • Among other things, it procures provisions as to:
    • ceiling limit,
    • exemptions from ceiling limit,
    • filing ceiling return,
    • determining extent to be surrendered,
    • surrender,
    • taking possession by TLB,
    • effect of conversion of exempted land.
  • Sec. 81(1) says that the provisions of Chapter III shall not apply to –
    • lands owned or held by the Government, private forests, plantations, etc.

PART II Chapter II

‘Provisions Regarding Tenancies’

S. 3(1)(viii) Reads as under:

  • “3. Exemptions – (1) Nothing in this Chapter shall apply to -…. ….
    • (viii) Tenancies of plantations exceeding 30 acres.
      • “Provided that the provisions of this chapter, other than sections 53 to 72S, shall apply to tenancies in respect of agricultural lands which are treated as plantations under sub clause (c) of clause (44) of Section 2”.
    • “Provided that the provisions of this chapter, other than sections 53 to 72S, shall apply to tenancies in respect of agricultural lands which are treated as plantations under sub clause (c) of clause (44) of Section 2”.
  • Sec. 2(44)(c) reads:
    • agricultural lands interspersed within the boundaries of the area cultivated by the said person with plantation crops, not exceeding such extent as may be determined by the Land Board [or the Taluk Land Board, as the case may be] as necessary for the protection and efficient management of such cultivation.”

Analysis of S. 3(1)(viii)

  1. S. 3(1)(viii) deals with exemption of Plantation-Tenancy(above 30 acres).
    • land should have been a plantation when it was leased;
    • that is, plantation must have been developed by the landlord.
  2. S. 3(1)(viii) exempt from Chapter II
    • plantation-tenancy (plantation developed by the landlord) above 30 acres.
  3. If tenant raised plantation on bare land leased: They are not excluded by the Exemption under S. 3(1)(viii)
    • Therefore, such tenants (who put up plantation on the bare land) have the rights and benefits provided under Chapter II – such as
      • fixity under Sec. 13 and
      • vesting in Government under Sec. 72
      • (But not purchase certificate under Sec. 72B, for it is not allowable above ceiling limit.)
  4. S. 3(1)(viii) provides benefit (fixity under Sec. 13) to
    • plantation-tenancy below 30 acres.
    • See: Rev. Fr. Jerome Fernandes Vs. Be Be Rubber Estate, 1972 KLT 613; Poddar Plan. Ltd v. Thekkemariveettil Madhavi Amma, 2014 1 ILR(Ker) 813; 2013 4 KLJ 781; 2014 1 KLT 439 .
  5. Therefore:
    • Contract applies to termination of tenancy, above 30 acre plantation–tenancy (land must have been a plantation when it was leased).
    • Land lord is entitled Sec. 81 exemption over such plantation.

Analysis of S. 3(1)(viii) Proviso

Proviso speaks about “agricultural lands interspersed within the plantation”. In Poddar Plantations Limited v.  Thekkemariveettil Madhavi Amma, 2014-1 ILR(Ker) 813; 2013-4 KLJ 781; 2014-1 KLT 439, it is held:

  • “Section 2(44) (c) cannot be read in isolation of Sec. 3(1)(viii) of the KLR Act. Reading the two provisions together, what can be discerned is only that if the tenant is entitled to fixity over the plantation (not being in excess of 30 acres), then, the land referred to in Sec. 2 (44)(c) of the KLR Act should also be counted and the tenant shall not be evicted from that land though he is not entitled to fixity over such land. This view is supported by the decisions in State of Kerala v. Amalgamated Tea Estates Co. (1980 KLT 728) and State of Kerala v. Hope Plantations Ltd. (1985 KLT SN 4 (Case No.6). If such an interpretation is not given, the result will be anomalous in that even if a person is liable to be evicted from the plantation, he can cling on to the land referred to in Sec.2(44)(c) of the KLR Act though not entitled to fixity. The intention of the Legislature was only to avoid eviction of the tenant from the land coming under Sec.2(44)(c) which is necessary for the proper management of area of plantation over which he is entitled to fixity.”

Fixity, Vesting in Govt. and Purchase Certificate:

  • Sec. 13 says every tenant has fixity. But, holdings held by cultivating tenants alone will vest in Govt., under Section 72(1).
  • Sec. 72 provides for automatic vesting of leasehold properties held by ‘cultivating tenants’ in Govt.  ILR 2010(2) Ker. 845. 
  • Sec. 72 K provides that LT shall issue purchase certificate.  It shall be conclusive proof of assignment.
  • Assignment of Purchase certificate
    • Sec. 72B provides for cultivating tenant’s rights to get assignment  – purchase certificate (through LT) – within ceiling area. [Tenant had to apply for it within 2 years from 1-1-1970. Effect of not applying for assignment, See: Balanur Plantations case. 2018(3) KLT 283. This decision also deals with effect of ‘no bona fide claim’ as to cultivating-tenancy, ‘no vested right to continue’, etc.]
    • Sec. 72 C provides for suo moto action by LT. (No time limit,)
  • Rule 5 of the Vesting & Assignment Rules provides – LT may suo moto – notwithstanding no application – assign to cultivating tenant. (See  S.72C also). 

Provisions as to Fixity, Purchase Certificate,  Plantation-Exemption, Ceiling Area, etc.

  1. Tenant & Fixity
    • Section 13(1) reads as under:
    • 13. Right of tenants to fixity of tenure.  (1) Notwithstanding any thing to the contrary contained in any law, custom, usage or contract or in any decree or order of court, every tenant, shall have fixity of tenure in respect of his holding, and no land from the holding shall be Limited except as provided in Sections 14 to 22.”
    • Tenant is defined in Sec 2 (57) as under:
    • (57) tenant moans any person who has paid or has agreed to pay rent or other consideration for his being allowed to possess and to enjoy any land by a person entitled to lease that land, and includes- …. ….. ….. “
  2. Cultivating Tenant & Vesting of land in Government
    • Section 72(1) reads:
    • 72. Vesting of landlord’s rights in Government: (1) On a date to be notified by the Government in this behalf in the Gazette, all right, title and interest of the landowners and intermediaries in respect of holdings held by cultivating tenants (including holders of kudiyirippus and holders karaimas) entitled to fixity of tenure under Section 13, and in respect of which certificates of purchase under Sub-section (2) of Section 59 have not been issued, shall, subject to the provisions of this section, vest in the government free from all encumbrances created by the landowners and intermediaries and subsisting thereon the said date”
    • It provides (automatic) vesting of leasehold properties in Govt. Conditions thereof are:
      • (i) the land must be held by cultivating tenants;
      • (ii) they should be entitled to fixity of tenure under Sec. 13.
    • Sec. 2(8) defines cultivating tenant as under:
    • cultivating tenant means a tenant who is in actual possession of, and is entitled to cultivate, the land comprised in his holding.”
  3. Issue of Purchase Certificate
    • Section 72B(1), 72C and 72K(1) & (2) read as under:
    • “72B. Cultivating tenants right to assignment.  (1) The cultivating tenant of any holding or part of a holding, the right, title and interest in respect of which have vested in the Government under Section 72, shall be entitled to assignment of such right, title and interest: Provided that …. ….”
    • “72C. Assignment where application is not made by cultivating tenant.  Notwithstanding anything contained in Sub-section (3) of Section 72B [or Section 72BB], the Land tribunal may, subject to such rules as may be made by the Government in this behalf, at any time after the vesting of the right, title and interest of the landowners and intermediaries in tile Government under Section 72, assign such right, title and interest to the cultivating tenants entitled thereto, and the cultivating tenants shall be bound to accept such assignment.”
    • “72K. Issue of certificate of purchase. – (1) As soon as may be after the determination of the purchase price under Section 72F [or the passing of an order under Sub-section (3) of Section 72MM] the Land Tribunal shall issue a certificate of purchase to the cultivating tenant, and thereupon the right, title and interest of the landowner and the intermediaries, if any, in respect of the holding or part thereof to which the certificate relates, shall vest in the cultivating tenant free from all encumbrances created by the landowner or the intermediaries, if any.
    • (2) The certificate of purchase issued under Sub-section (1) shall be conclusive proof of the assignment to the tenant of the right, title and interest of the landowner and the intermediaries, if any, over the holding or portion thereof to which the assignment relates.”
    • Note: Sec. 72F speaks as to ‘Land Tribunal to issue notices and determine the compensation and purchase price; and Sec. 72MM provides for jointly applying, by the cultivating tenant, the landowner, the intermediary, the holders of encumbrances, etc, to the Land Tribunal, for an order for ‘assignment by mutual agreement’ to the cultivating tenant.

Prohibition of future tenancies.

  • Sec. 74 provides for Prohibition of future tenancies.

Chapter III

Excess, Ceiling Return, Surrender, Exemption Etc.

  1. Section 81:
    • S. 81, the first Section in Chapter III deals with exemption from ceiling limit of plantation, industrial land, etc. Sec. 81(1)(e) reads as under:
    • Exemptions: (1) The provisions of this Chapter shall not apply to–
      • (a) lands owned or held by the Government ….
      • …… ……
      • (e) plantations;
      • …………”
  2. Section 82 & 83:
    • S. 82 & 83 deal with ceiling area and bars holding land excess of ceiling fixed.
    • Section 2 (3) defines ceiling area as under:
      • Ceiling area” means the extent of land specified in section 82 as the ceiling area”.
  3. Sec. 82 reads as under:
    • 82. Ceiling area. – [(1) The ceiling area of land shall be,
    • (a) in the case of an adult unmarried person or a family consisting of a sole surviving member, five standard acres, so however that the ceiling area shall riot be less than six and more than seven arid a half acre in extent;
    • (b) in the case of a family consisting of two or more, but not more than five members, ten standard acres, so however that the ceiling area shall not be less than twelve and more than fifteen acres in extent.
    • (c) in the case of a family consisting of more than five members, ten standard acres increased by one standard acre for each member M excess of five, so however that the ceiling area shall not he less than twelve and more than twenty acres in extent; and
    • (d) in the case of any other person, other than a joint family, ten standard acres, so however that the ceiling are shall not be less than twelve and more than fifteen acres in extent.]
  4. Sec. 83 reads as under:
    • “83. No person to hold land in excess of the ceiling area. With effect from such dates as may be notified by the Government in the Gazette, no person shall be entitled to own or hold or to possess under a mortgage lands in the aggregate in excess of the ceiling area.”
  5. Section 85(1) reads as under:
    • 85. Surrender of excess land. (1) Where a person owns or holds land excess of the ceiling area on the date notified under Section 83, such excess land shall be surrendered as hereinafter provided: …. ….”

Plantation: Definition

  • “S.2.(44)” plantation” means any land used by a person principally for the cultivation of tea, coffee, cocoa, rubber, cardamom or cinnamon (hereinafter in this clause referred to as ‘plantation crops’) and includes.-
    • (a) land used by the said person for any purpose ancillary to the cultivation of plantation crops or for the preparation of the same for the market;
    • [(b) xxxx]
    • (c) agricultural lands interspersed within the boundaries of the area cultivated by the said person with plantation crops, not exceeding such extent as may be determined by the Land Board [or the Taluk land Board, as the case may be] as necessary for the protection and efficient management of such cultivation.
  • Explanation:- Lands used for the construction of office buildings, godowns, factories quarters for workmen, hospitals, schools and play grounds shall be deemed to be lands used for the purposes of sub-clause (a).

Relevant Provisions: Excess, Ceiling Return, Surrender, Exemption Etc.

  • Sec. 85 (1) provides for Surrender excess.
  • Sec. 85 (2) provides – Owners and Tenants of plantation (who owns and hold properties) should furnish statement (ceiling return) to Land Board before March 31, 1971, before the Land Board (including lands exempted under S. 81).
  • Sec. 85 (3) provides – Excess shall be surrendered.
  • Sec. 85 (5) provides – LAND BOARD shall DETERMINEextend to be surrendered
  • Sec. 85 (7) provides – Whereon a person fails to file statement (ceiling return) under 85(2), LAND BOARD shall intimate Taluk Land Board (TLB), TLB shall determine land to be surrendered.
    • “The statute prescribes liability on the person who owes or hold the land in excess of the ceiling limit and if such a person fails to file the statement in accordance with law, the Board is enjoined to proceed against such person.” State of Kerala Vs. Varkey Mathew, AIR 1996 SC 1009.
    • [TLB not to do, suo motu, without direction from LB. State Of Kerala Vs Idiculla, 1980 KLT 120, referred to Shircy, J. in One Earth One Live Vs. State of Kerala, 2019(1) KLT 985.]
    • The effect of not filing ceiling return can be equated to ‘not applying for assignment’ of purchase certificate, See: Balanur Plantations case. 2018(3) KLT 283.
  • Sec. 85A provides – File ceiling return/statement within March  2, 1973 before Land Board.
  • Sec. 86(1) provides – On determination of the extent to be surrendered (by LB) under S. 85- Excess vests in Govt. and Taluk Land Board shall issue an order accordingly.
  • Sec. 86(3) provides – Where any person fails to surrender as demanded, the TLB may order an officer to take possession.
  • Sec. 86(4) provides – Where any land, vests in the Govt, under s. 86(1) (including that of cultivating tenant) the ownership of such land shall vest in the Govt.
  • Sec. 86(6) provides – Nothing applies to property of Govt. under KLC Act.
  • Sec. 87 Exp. II  provides – If CONVERTED TO ANY OTHER CLASS and the person owns excess of ceiling area – the excess shall be deemed to be land acquired.
  • Sec. 87(1A) provides – Person referred to above (transferee) also should file statement (Return).

PART III PLANTATIONS

Analysis of S. 81, 82 and 83

CHAPTER III of the KLR Act deals with Ceiling Area and Excess Lands.

  • Sec. 81 provides for ‘Exemptions’. Sec. 81 reads as under:
    • Exemptions: (1) The provisions of this Chapter shall not apply to –
      • (a) lands owned or held by the Government ….
      • …. …..
      • (e) plantations;
      • …………
  • Plantation: Under Sec. 2, clause (44), plantation means any land used by a person principally for the cultivation of tea, coffee, cocoa, rubber, cardamom or cinnamon.

Ceiling area 

  • Sec. 82 provides for ceiling.
  • Sec. 83 provides – No person can hold or possess excess of ceiling area. (Holding is by tenant.)  
  • It is a total bar. 
    • Apply to tenant also. 1980 KLT 259 (Gopalan Nair Vs. State), 1976 KLT 306  (Thomas Mariamma Vs. TLB),
    • The policy of the Act – no person –“be permitted to hold any land in excess of the ceiling area.” Raghunath Laxman Wani v. The State of Maharashtra (AIR 1971 SC 2137) – quoted in 2008(1) KLJ 571 (State Vs. Puliyangattu). Followed in State vs Civil Judge, Nainital, AIR 1987 SC 16; Bhikoba S. Vs. ML Punchand Tathed, AIR 1982 (SC) 865.

Plantation Exemption, Fixity & Purchase Certificate for a Tenant below 30-acres-plantation

  • By virtue of S. 3(1)(viii), a Tenant (below 30-acres-plantation) will get fixity (Sec. 13) and can continue possession.
    • And, under Chapter III, Sec. 81(1)(e), he can also avail benefits of exemption for plantation (without being affected by the ceiling limit – Sec. 82 & 83).
    • Note: For getting benefits under Sec. 81 exemption, the tenant should have filed ceiling return (under Sec. 85(2); 85A).
  • Purchase Certificate being provided within ceiling limit alone under Sec. 72B or 72C, it is legitimate to state that a tenant cannot get Purchase Certificate on the plantation land, under Sec. 72B or 72C.

Combined Impact of Sec. 3(1)(viii) and Sec. 81 on tenancy-land

  1. ‘Plantation-Tenancy’ (ie. ‘tenancies of plantations’) below 30 acres:
    • By virtue of S. 3(1)(viii) Chapter II applies to ‘plantation-tenancy’ below 30 acres. It stands contradistinct to ‘leased-lands-upon-which-plantation-was-put-up’ by the tenant.
    • S. 3(1)(viii) being declare that provisions of Chapter II apply to ‘Plantation-Tenancy’ below 30 acres, benefits for tenants under Chapter II apply to such plantations (as far possible), such as:
      • fixity (Sec. 13) upon ‘Plantation-Tenancy’.
    • Such tenants also get benefit of exemption under Sec. 81 and they can continue without being affected by the ceiling limit under Sec. 82 and 83.
    • For getting benefits of Sec. 81 exemption ceiling return (Sec. 85(2); 85A). should have been filed.
  2. ‘Plantation-Tenancy’ (ie. ‘tenancies of plantations’) above 30 acres:
    • By virtue of Sec. 3(1)(viii) the provisions of KLR Act relating to Tenancies (Chapter II) will not apply to ‘Plantation-Tenancy’ above 30 acres.S. 3(1)(viii) being exclude (from Chapter II) ‘Plantation-Tenancy’ above 30 acres, provisions of Chapter II does not apply to such plantations.Hence, No ‘fixity’ under Sec. 13, for the tenants of ‘Plantation-Tenancy’ above 30 acres.Contract applies to termination of tenancy, above 30 acre plantation–tenancy.But, until evicted lawfully, such tenants get benefit of exemption under Sec. 81 and they can continue without being affected by the ceiling limit under Sec. 82 and 83.
    • Land lord is entitled Sec. 81 exemption over such plantation.
    • For getting benefits of Sec. 81 exemption, ceiling return [Sec. 85(2); 85A] should have been filed.
  3. If tenant raised plantation on bare land leased: S. 3(1)(viii) does not apply.
    • S. 3(1)(viii) does not deal with plantations put up on bare land leased by the tenants. (Such property is not excluded from Chapter II, also.)
    • That is, the protection or benefits given to tenants (fixity) can be availed by such tenants (who put up plantation on land leased).
    • No purchase Certificate can be obtained, for, fragmentation of plantation will not be allowed (Sec. 87).
    • Under Sec. 81, such tenants can avail exemption and they can also continue without being affected by the ceiling limit under Sec. 82 and 83.
    • Such lands also vest in Government under Sec. 72.
    • For getting benefits of Sec. 81 exemption ceiling return [Sec. 85(2); 85A]. should have been filed.

In N. K. RAJENDRA MOHAN Vs. THIRVAMADI RUBBER CO.  LTD, AIR 2015 SC 2556; 2015-4 KLT 6, it is held as under:

  • “That the legislature had construed it to be unfair and improper to deny the benefit of the fixity of tenure to a lessee who might have taken the lease of extensive parambus or waste lands and in course of time by hard toil had developed those into plantations.
Plantation leased
(Time when land leased itself, it was a plantation).
Land leased
Tenant made plantation.
Sec. 81 applies.
Plantation above 30 Acre. 
Will there be fixity to tenant?

No. 
Sec. 3 (1)(viii) (negatively) applies. (Poddar Plan. Ltd v. Thekkemariveettil Madhavi Amma, 2014 1 ILR(Ker) 813; 2013 4 KLJ 781; 2014 1 KLT 439,)
Yes. 
(Note – No difference between 30 acre plantation and above 30 acre, for any matter.)
Sec. 13, fixity is there for every tenant, if tenant toiled a plantation – See: Rev. Fr. Jerome Fernandes Vs. Be Be Rubber Estate, 1972 KLT 613.
Plantation below 30 Acre.  Can a tenant get purchase certificate for 5 or 10 acres?
May be.
No specific provision. So, by virtue of Chapter II, a tenant can get Purchase Certificate; but, within ceiling limit – Sec. 13 under Sec. 72B, 72C.
(See notes just below also)
No. 
No specific provision.
Fragmentation of plantation will not be allowed (Sec. 87).
Plantation below 30 Acre. Will there be fixity to tenant?
Yes.
By virtue of S. 3(1)(viii), a Tenant has fixity (Sec.13). It is reasonable to say, a tenant cannot claim fixity and Purchase Certificate, simultaneously.
Yes.
Sec. 13 fixity, applies.
Who gets Sec. 81 exemption – land-owner or tenant – above 30 acre.
Land owner – For, plantation itself was leased.
Tenant
Can landlord recover possession –
above 30 acre – from the tenant?

Yes.
No express provision.
But, contract holds the field (because no protection to tenant, under Chapter II).
No.
Sec. 13 fixity, applies. See:
N. K. Rajendra Mohan Vs Thirvamadi Rubber Co.  Ltd.: AIR 2015 SC 2556; 2015-4 KLT 6

(Not applicable)
Will a tenant get Fixity (S. 13) or Purchase Certificate (S. 72) on “tenancies…”, ‘interspersed within the plantation’Sec, S. 3(1)(viii)
Yes. But, within ceiling limit – Sec. 13 under Sec. 72B, 72C.
Proviso refers to a special category on independent-tenancy [from the plantation-tenancy, mentioned in the main Section, S. 3(1)(viii)].
Will there be vesting of land below 30 acres in Govt?
Yes.
Then what is the relation between Govt. and the original tenant? Landlord-Tenant relationship.
Yes (for both above and below 30 acres).

Then what is the relation between Govt. and the original tenant? Landlord-Tenant relationship.

Analysis of Sec 87 & Conversion

Effect of Conversion of A Portion of Exempted Land into a Non-exempted Category

Section 87 reads as under:

  • “S.87. Excess land obtained by gift, etc. to be surrendered – (1) Where any person acquires any land dafter the date notified under Section 83 by gift, purchase, mortgage with possession, lease, surrender or any other kind of transfer inter vivos or by bequest or inheritance or otherwise and in consequence thereof the total extent of land owned or held by such person exceeds the ceiling area, such excess shall be surrendered to such authority as may be prescribed.
  •        Explanation 1 – Where any land is exempted by or under Section 81 and such exemption is in force on the date notified under Section 83, such land shall, with effect from the date on which it ceases to be exempted, be deemed to be land acquired after the date notified under Section 83.
  •        Explanation II – Where, after the date notified under Section 83, any class of land specified in Schedule II has been converted into any other class of land specified in that Schedule or any land exempt under Section 81 from the provisions of this Chapter is converted into any class of land not so exempt and in consequence thereof the total extent of land owned or held by a person exceeds the ceiling area, so much extent of land as is in excess of the ceiling area, shall be deemed to be land acquired after the said date.

Explanation II is explained by the Full Bench of the Kerala High Court in Mathew K. Jacob v. District Environmental Impact Assessment Authority, 2018-4 KLT 913, as under:

  • “The consequence is that the benefit of the exemption would be lost and the extent added to the account of the assessee or the declarant in determination of his ceiling area.”

That is, if a person converts any portion of his exempted land to any other class, that converted extent will be added to his account in determining his ceiling limit; and the Taluk Land Board can proceed upon that (excess) land. In short, the exemption will be lost for that portion.

Effect of Fragmentation for Non-exempted Category

The decision in One Earth One Life v. State of Kerala, 2019-2 KHC(SN) 10; 2019-1 KLT 985, arose from the Writ Petition filed for a declaration that the fragmentation and sale of a Rubber Plantation for non-plantation purposes was illegal as it defeated the purpose of the Kerala Land Reforms Act. When the matter was placed before the Taluk Land Board under Sec 87, KLR Act, it found that there was no change in classification of the land and therefore dropped the proceedings. The Court held as under:

  • “34. Section 81 of the KLR Act is in pith and substance a special provision, with its main objective of giving exemption to certain lands including the lands maintained as plantations is to prevent fragmentation of the land and to keep it as plantation itself to improve the economy of the state for welfare of people as a whole while the Act creates a regime, the State is under an obligation to safeguard, the intended purpose of the provisions of the Act in its spirit. ….. …… It could be gathered from the records that the proposal to transfer 1.03 acres of land to each workers in discharge of their service or retrenchment benefits will definitely divide the plantation into separate slots and that would definitely change the character/nature of the plantation, which could be termed as ‘conversion’ and that will be against the provisions of the Act.”

Can a Tenant of Plantation Transfer his Rights, Fragmenting the Plantation

Possession is a heritable and transferable right. [See: Nallammal Vs. Ayisha Beevi, 2017-5 Mad LJ 864; Phirayalal Kapur Vs. Jia Rani, AIR 1973 Delhi 186]. Therefore, a tenant of plantation having rights of fixity (Sec. 13) may have the right to transfer it to another. In any case, the change of character or nature of the plantation by fragmentation being amount to ‘conversion’ that will be against the provisions of the Act, as pointed out in One Earth One Life v. State of Kerala, 2019-2 KHC(SN) 10; 2019-1 KLT 985.

PART IV

VESTING OF LAND IN GOVT. & RIGHT OF GOVT. TO COLLECT RENT

Vesting of lands in Govt. under the KLR Act, mainly, as directed under Sec. 72 and 86. (Sec. 86 does not apply to Plantations, it being exempted from Chapter III)

  • Section 72(1) reads:
  • 72. Vesting of landlord’s rights in Government: (1) On a date to be notified by the Government in this behalf in the Gazette, all right, title and interest of the landowners and intermediaries in respect of holdings held by cultivating tenants (including holders of kudiyirippus and holders karaimas) entitled to fixity of tenure under Section 13, and in respect of which certificates of purchase under Sub-section (2) of Section 59 have not been issued, shall, subject to the provisions of this section, vest in the government free from all encumbrances created by the landowners and intermediaries and subsisting thereon the said date”

Section 81 exemptions do not apply to Government lands

Section 81(1)(a) Proviso says that there will be no exemption upon Government lands.

Section 81(1)(a) Proviso reads as under:

  • “Provided that the exemption under this clause shall not apply to lands owned by the Government of Kerala and held by any person under lease whether current or time expired or otherwise.”

It is made clear in H M T (Machine Tools) Limited vs Taluk Land Board, 2009 (3) KLJ 110, in the following words:

  • “The lands in question were obviously Government lands ….  to which the provisions of Section 81** falling under Chapter III of the Act do not apply.”
    • ** Provisions of Sec. 81 is pertaining to exemption.
  • It is also pointed out in H M T (Machine Tools) Limited vs Taluk Land Board, 2009 (3) KLJ 110 as under:
  • “The lands so held by a person under grant from the Government otherwise than by way of lease of licence is declared to be a Government land under Section 2(1)(d) and (e) of the Assignment Act. The lands in question were very much a Government land till it was assigned in favour of HMT by Patta No.10015 dated 30.10.1973 …. “

In M.T. Joseph v.  State of Kerala, AIR 1974 Ker 28, it is held-

  • “Clause (a) of Sub-section (1) of Section 81 by which “Government lands held under a lease current or time expired or otherwise” can be understood only as referring to such lands which are held by persons in permissive possession. The word “otherwise” must be understood as a permissive occupation otherwise than under a lease. The word “otherwise” has no wider meaning in the context. So understood, the exemption to Clause (a) of that Section is perfectly legal and in that limited sense we uphold that provision as valid.”

Section 86 reads:

  • 86. Vesting of excess lands in Government. (1) On the determination of the extent and other particulars of the lands, the ownership or possession or both of which is or are to be surrendered under Section 85, the ownership or possession or both, as the case may be of the land shall, subject to the provisions of this Act, vest in the Government free from all encumbrances and the Taluk Land Board shall issue an order accordingly.
  • (2) On receipt of [the order of the Taluk Land Board under Sub-section (1)] such person shall make the surrender demanded, in such manner as may he prescribed.
  • (3) Where any person fails to make the surrender demanded, the [Taluk Land Board] may authorise any officer to take possession or assume ownership of the land in such manner as may be prescribed.
  • [(4) Where the ownership of any land vests in the Government under Sub-section (1), the rights of the intermediary, if any, in respect of the land shall stand extinguished, and where possession of any land which was in the possession of a cultivating tenant vests in the Government under that Sub-section, the ownership of such land shall vest in the Government and the rights of the intermediary, if any, in respect of such land shall stand extinguished.]

Who is the Owner/Title-holder of Plantation (exceeds ceiling limit) Vested u/S. 72?

  • It is Government itself.
  • Because,
    • Under Sec. 72B(2) a cultivating tenant is entitled to get assigned the area within the ceiling limit under Section 82 alone. That is:
      • (a) in the case of an adult unmarried person or a family consisting of a sole surviving member, five standard acres, so however that the ceiling area shall riot be less than six and more than seven arid a half acre in extent;
      • (b) in the case of a family consisting of two or more, but not more than five members, ten standard acres, so however that the ceiling area shall not be less than twelve and more than fifteen acres in extent.
      • (c) in the case of a family consisting of more than five members, ten standard acres increased by one standard acre for each member excess of five, so however that the ceiling area shall not he less than twelve and more than twenty acres in extent; and
      • (d) in the case of any other person, other than a joint family, ten standard acres, so however that the ceiling are shall not be less than twelve and more than fifteen acres in extent.]
    • Plantation land cannot be fragmented to give purchase certificate (Sec. 87 Explanation II) within the ceiling limit.
    • Title is declared to be vested in Government under Sec. 72.
    • The cultivating tenant is liable to pay to the Government the rent of holdings vested in Government under Section 72 and the cultivating tenant is not entitled to the assignment of such right.

The Govt. is Entitled Reasonable ‘Rent and Land Tax

The land being vest in Govt., it can collect reasonable ‘rent’. Sec. 72E reads as under:

  • 72E. Rent of holdings vested in Government but not assigned to cultivating tenants. – Where in respect of any holding or part thereof, the right, title and interest of the landowner and intermediaries have vested in the Government under Section 72 and the cultivating tenant is not entitled to the assignment of such right, title and interest by virtue of Sub-section (1) of Section 72, the cultivating tenant shall be liable to pay to the Government the rent payable under this Act from the date of vesting under Section 72.

With respect to payment of tax it is stated as under in Sec. 72S:

  • 72S. Liability for assessment alter the date of vesting under Section 72. (1)] Notwithstanding anything contained in the Kerala Land Tax Act, 1961, or in any other law for the time being in force, or in any contract, where the right, title and interest of the landowner and the intermediaries, if any, in respect of a holding have vested in the Government under Section 72, the cultivating tenant of that holding shall be liable to pay the basic tax payable in respect of that holding under the said Act and other taxes and cesses due in respect of that holding.
  • (2) In the case of a holding or part of a holding in respect of which an application for resumption under the provisions of this Act is rejected, the cultivating tenant shall be liable to pay the basic tax and other taxes and cesses in respect of such holding or part of the holding, as the case may be, with effect on and from the date notified under Sub-section (1) of Section 72.

PART V

Civil Court Jurisdiction : Decisions

Supreme Court Decision – Plantation put up by tenant on land leased.

The Supreme Court held in Rt. Rev. Jerome Fernandez vs. Be Be Rubber Estate, 1972 KLT 613.  It is observed as under:

  • “It may well be that the legislature thought that it will not be fair or proper to deny the benefit of fixity of tenure to lessees who might have taken on lease extensive parambas or waste land and might have in course of time by their hard toil developed them into plantations.”

When Civil Court can Interfere

  • Even when a tribunal is provided for redressal of remedies, the civil courts will have jurisdiction to examine the allegation of non-compliance of the provisions of the statute or of any of the fundamental principles of judicial procedure. If the challenge is only as to the ‘erroneous’ character of the order, other than ‘jurisdictional error’, the suit will not be maintainable. (South Delhi Municipal Corporation v. Today Homes and Infrastructure Pvt.  Ltd.  2019-4 CivCC 150 (SC); 2019-3 CurCC 370(SC); 2019-11 Scale 33).
  • When an order is passed by a statutory Land-Tribunal violating a mandatory provision, the order will be illegal, without jurisdiction and a nullity. The civil courts which are courts of “general jurisdiction” can decide whether a tribunal or authority exercising statutory jurisdiction has acted in excess or beyond the statutory powers. The civil courts can interfere when the order of the statutory tribunal or authority is really not an order under the Act conferring jurisdiction on it. In other words, if a tribunal abuses its power or does not act under the Act but in violation of its provisions (Firm Seth Radha Kishan v. Ludhiana Municipality AIR 1963 SC 1547), the jurisdiction of the civil court will not be excluded. The ultimate decision can be challenged, in spite of finality and exclusionary clauses (or provision for appeal/revision), since the jurisdiction had been assumed by the tribunal, where it did not exist, and the decision was not a decision under the Act, but a nullity(Muhammad Haji v. Kunhunni Nair, AIR  1993 Ker 104).

Civil court to declare and decide on title

  • Civil court alone has the jurisdiction to make the declaration and decide on title. [2014(2) Ori. LJ 1008, 1969 P& H 397, 2016(6) AIR Bomb. R. 466]  

Taluk Land Board cannot initiate action of its own, otherwise than directed by Land Board

  • State Of Kerala Vs. Varkey Mathew, AIR1996 SC 1009:
  • “Section 85(7) provides that where any person fails to file the statement, the Land Board shall intimate the fact to the Taluk Land Board and thereupon the Taluk Land Board shall, after necessary enquiries, determine the extent and other particulars of the land or lands which is or are to be surrendered. In other words, the statute prescribes liability on the person who owes or hold the land in excess of the ceiling limit and if such a person fails to file the statement in accordance with law, the Board is enjoined to proceed against such person.”

Question Whether Private Land or Government Land – Outside jurisdiction of TLB

  • The Kerala High Court, in Jagadeesachandran Nair Vs. Mamomohanan Pandarathil, 2013 (4) KLT 584, refused to call for the TLB proceedings in the Writ Petition filed by the State of Kerala before the High Court for calling for the records of the Taluk Land Board constituted under the Kerala Land Reforms Act to quash certain proceedings, claiming that the large extent of land held by the respondent was liable to be forfeited under the Kerala Escheats and Forfeitures Act, 1950. The State contended that there was gross violation of the land laws and FERA. The State also asserted a fraud on the Constitution of India, warranting immediate action in public interest and based on public policy as enjoined under Article 296 of the Constitution.
  • Analysing this decision it is pointed out in Harrisons Malayalam Ltd, v. State of Kerala, 2018 (2) Ker LT 369, that in Jagadeesachandran’s case it was noticed that the question whether the land was a private land or a government land was totally outside the scope of the proceedings pending before the TLB.

Ancillary relief could also be granted by the civil court

  • In law, when the main relief, title declaration, is cognisable by civil court the ancillary relief would be immaterial for determination of proper forum; and in such cases the ancillary relief could also be granted by the civil court.  [Ram Awalamb v. Jata Shankar, 1969 All. 526, 1982 Raj. 91, 2011(3) ARC 279

Is the Tenant of a Plantation a Cultivating Tenant?

  • Yes.
  • Sec. 2(8) defines cultivating tenant as under:
  • Cultivating tenant means a tenant who is in actual possession of, and is entitled to cultivate, the land comprised in his holding.”

Can Purchase-Certificate be given to Plantation-Land, over & above Ceiling-Limit?

  • No.
  • Because, under Sec. 72B(2) a cultivating tenant is entitled to get assigned the area within the ceiling limit under Sec. 82 alone.

Sec. 72B reads as under:

  • “72B. Cultivating tenants right to assignment. – (1) The cultivating tenant of any holding or part of a holding, the right, title and interest in respect of which have vested in the Government under Section 72, shall be entitled to assignment of such right, title and interest:
  • Provided that
  • (a) no cultivating tenant shall be entitled to assignment of the right, title and interest in respect of any holding or part of a holding under this Section if he, or if he is a member of a family, such family, owns an extent of land not less than-the ceiling area.
  • (b) where the cultivating tenant or, if he is a member of a family, such family, does not own any land or owns an extent of land which is less than the ceiling area, he shall be entitled to the assignment of the right, title and interest in respect of only such extent of land as will, together with the land, if any, owned by him or his family, as the case may be, be equal to the ceiling area.
  • Explanation. – In calculating the extent of land owned by the cultivating tenant or, where he is a member of a family, by such family, for the purposes of clauses (a) and (b) of the foregoing proviso, the portion of the land owned by such cultivating tenant or by the family, which is liable to be assigned to the cultivating tenants holding under him or such family, shall not be taken into account.
  • (2) The provisions of Section 82 shall, so far as may be, apply to the calculation of the ceiling area for the purposes of the proviso to Sub-section (1);
  • Provided that if no date has been notified under Section 83, the date notified under Section 72 shall be deemed to be the date notified under Section 83.
  • (3) Any cultivating tenant entitled to assignment of the right, title and interest in respect of a holding or part of a holding under Sub-section (1) may apply to the Land Tribunal within whose jurisdiction such holding or part is situate within two years from the dote of vesting of such right, title and interest in the Government under Section 72, or such further time as may be allowed by the Government in this behalf, for such assignment to him.
  • (4) An application under Sub-section (3) shall contain the following particulars, namely:
  • (a) the village, survey number and extent of the holding or part to which the assignment relates.
  • (b) the name and address of the landowner and intermediaries and also of every other person interested in the land and the nature of their interest so far as they arc known to him;
  • (c) the particulars regarding the other lands owned or held by him or if he is a member of a family; by such family; and
  • (d) such other particulars as may be prescribed.
  • (5) Where a cultivating tenant is entitled to the assignment of the right, title and interest in respect of only a portion of the holding held by him, he may indicate in the application under Sub-section (3) his choice of the portion to which the assignment shall relate.”

Who is the Owner of Plantation (lease) Lands ? Do such Lands VEST in GOVT. ?

  • 1. Plantation (lease) lands VEST in GOVT, automatically: For the reasons –
    • Tenants (who put up plantation on the bare land) have the rights and benefits provided under Chapter II – including, fixity under Sec. 13.
    • Sec. 72 provides for mandatory and involuntary vesting of leasehold lands in Govt. – if the conditions in Sec. 72 are satisfied; that is,
      • (i) held by cultivating tenants;
      • (ii) tenants thereof are entitled to fixity of tenure under Sec. 13.
  • 2. Govt. is the Owner
    • For the reasons –
      • Title is declared to be vested in Government (Sec. 72).
      • The plantation land cannot be assigned to the tenants for the area being above ceiling limit [Sec. 72B(2)]; and no purchase certificate can be issued.
      • Plantation land cannot be fragmented (Sec. 87 Explanation II).
      • Such tenant is liable to pay rent to the Government (Sec. 72E).
  • 3. ‘Exemption’ in Chapter III Cannot be read into Sec. 72B(2)
    • Sec. 72B(2) specifies that the provisions of Section 82 as to ceiling shall apply (when assignment is given).
    • The exemption provision in Sec. 81 (Chapter III) cannot be brought-forth or read-into Sec. 72B.
    • Because:
      • Sec. 82 itself is not applicable to plantation lands (as Sec. 81 exempts plantation from the provisions of Chapter III).
      • That is, Sec. 82 is an independent provision, not controlled by the exemption provision in Sec. 81.
      • When an independent provision in a Chapter is relied on, it cannot be said – the entire Chapter wherein it is contained is attracted.
  • Further:
    • Chapter II of the KLR Act is exclusive and exhaustive as to ‘fixity’ and ‘vesting’ of land in Government.
    • Proviso to Sec. 72B(1) also show it is an an independent provision.
    • It is not stated anywhere in the Act – the right and title of the (leased-plantation) land vested in Government under Sec. 72, will be divested in any manner (to the previous owner, or to the tenant or to anybody else).
    • Sec. 72E provides for collection of rent‘ from the holders of the plantation, for the reason that the land vests in Govt.
    • In other words, under the KLR Act, the holders of such ‘Plantation-Lease-Lands’ are only ‘Tenants of Government’.
    • Proceedings initiated by Taluk Land Board under Chapter III do not confer title.
    • Therefore,
      1. The Government Need Not Pay ‘Land-Value’, as such, if such Lands are Acquired.
      2. A tenant who got ‘fixity’ over such land cannot ‘sell’ this land as his absolute property.
      3. Purchase certificate cannot be given by the Land Tribunal for land beyond ceiling limit.

End Notes

Relevant provisions of KLR Act, in a Nutshell

Section Provisions in a Nutshell
Chap. II 
3
Exemptions – (i) Nothing in this Chapter shall apply to – (viii) Tenancies of plantations exceeding 30 acres.
“Provided that the provisions of this chapter, other than sections 53 to 72S, shall apply to tenancies in respect of agricultural lands which are treated as plantations under sub clause (c) of clause (44) of Section 2”.
7 EPersons acquired lands (before 2005 amendment in KLR Act) for consideration below 1 Hec. 61 Are 87 Sq.m. (4 acre) will be deemed to be tenants .
13Fixity: “Every tenant, shall have fixity of tenure in respect of his holding.”
59Deposit of purchase price and issue of certificate – to cultivating tenant.
72Sec. 72 provides for automatic vesting of lease-properties held by cultivating tenants in Govt.  ILR 2010(2) Ker. 845. 
Rule 5 of the Vesting & Assignment Rules provides – LT may suo moto – notwithstanding no application – assign to cultivating tenant. (See  S.72C also). 
72BProvides for ‘cultivating tenants’ rights to get assignment  – purchase certificate (through LT) within ceiling area as provided under sub-section (2) ; (apply within 2 years from 1-1-1970). Effect of non-filing (See Balanur Plantations case. 2018(3) KLT 283.)
72ESuch tenant is liable to pay rent to the Government.
72CProvides for suo moto action by LT. (No time limit,)
72KLT shall issue purchase certificate.  It shall be conclusive proof of assignment.
74Prohibition of future tenancies.
Chap. III 81Exemption from ceiling and excess for Govt. lands, private forests, plantations, industrial or commercial undertaking etc.
82Ceiling area – 5/10 standard acres.
83No person can hold or possess excess of ceiling area. (Holding is by tenant.)  It is a total bar
Apply to tenant also. 1980 KLT 259 (Gopalan Nair Vs. State), 1976 KLT 306  (Thomas Mariamma Vs. TLB), RaghunathLaxmanWani v. The State of Maharashtra (AIR 1971 SC 2137) – The policy of the Act – no person –“be permitted to hold any land in excess of the ceiling area.” q. in 2008(1) KLJ 571 (State Vs. Puliyangattu) fold. in State vs Civil Judge, Nainital , AIR 1987 SC 16;Bhikoba S. Vs. ML PunchandTathed, AIR1982 (SC) 865
84Certain transfers – void.
85(1)Surrender excess.
85(2)Owners and Tenants of plantation (who owns and hold properties) should furnish ceiling return to Land Board before March31, 1971, before the Land Board (including lands exempted under S. 81).
85(3)Excess shall be surrendered.
85(5)Land Board shall determine – extend to be surrendered
85(7)Whereon a person fails to file statement under 85(2), LB shall intimate TLB  –  TLB shall determine land to be surrendered.
Effect of non-filing: See – Balanur Plantations case (With respect to Sec. 72B application) – 2018(3) KLT 283. Statute prescribes liability on the person who owes or hold the land in excess of the ceiling limit to file statement:  State of Kerala Vs. Varkey Mathew, AIR 1996 SC 1009.
[TLB not to do, suomotu, without direction from LB. 1980 KLT 120, referred to in 2019(1) KLT 985.]
85AFile ceiling return within March  2, 1973 before Land Board..
86(1)On determination of the extent to be surrendered under S. 85- Excess vests in Govt. andTaluk Land Board shall issue an order accordingly.
86(3)Where any person fails to surrender as demanded, the TLB may order an officer to take possession
86(4)Where any land, vests in the Govt, under s. 86(1) (including that of cultivating tenant) the ownership of such land shall vest in the Govt.
86(6)Nothing applies to property of Govt. under KLC Act.
87
Exp. II
If a person converts any portion of his exempted land to any other class, that converted extent will be added to his account in determining his ceiling limit. That is, the exemption will be lost for that portion. (Mathew K Jacob v. District Environmental Impact Assessment Authority, 2018-4 KLT 913)


Read in this Cluster (Click on the Topic):

Book No. 1.   Handbook of a Civil Lawyer

Book No. 2: A Handbook on Constitutional Issues

Book No. 3: Common Law of CLUBS and SOCIETIES in India

Book No. 4: Common Law of TRUSTS in India

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