Acquisition of (Exempted) Plantation Property: Should the Govt. Pay Full Land Value to Land-Owners/Tenants?

Jojy George Koduvath.

Abstract

In the context of Acquisition, it is necessary to examine three categories of plantation lands.

  • 1. Private plantation lands.
  • 2. Government lands on lease for plantation.
  • 3. Plantation-lease-lands vested in Government under Sec. 72 of the KLR Act (and formerly owned by private persons).

GENERAL

1. Chapter III – Exemption of Plantation Land

Chapter III (Sections 81 to 98A) of the Kerala Land Reforms Act, 1963 deals with ‘Restriction on Ownership and Possession of Land in Excess of Ceiling Area and Disposal of Excess Lands’.

Among other things, Chapter III lays down provisions as to:

  • ceiling limit,
  • exemptions from ceiling limit,
  • effect of conversion of exempted land.

2. 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.
  • Note: 1. Section 81(1) exempts Government lands from the provisions of Chapter III. The Proviso says that following Government lands will not stand exempted. 
    • 1. Government-lease-lands
    • 2. Lands that fall under Section 13 (Fixity) and
    • 3. Lands that fall under Section 72 (Lease lands vest in Government).
  • 2. The effect of Chapter III on Government-lease-lands and on the lands that fall under Section 13 (Fixity) and 72 (vest in Government) is that the tenants (both Government’s tenants and the erstwhile Private landholders’ tenants) have to pay ‘rent‘ to the Government under Sec. 72F(h).
  • 3. Section 81(4)permits use of the land not exceeding 5% of the extent of such holding for floriculture, dairy farms, hotels, restaurants, etc.

3. Fixity, Vesting in Govt. and Purchase Certificate:

  • Sec. 13 says – every tenant (who pays rent) has fixity. But, holdings held by cultivating tenants (in actual possession) alone will vest in Govt., under Section 72(1).
  • Purchase certificates can be obtained by ‘cultivating tenants’ only whose lands are vested in Govt. according to Sec. 72B and 72C. (Sec. 53 purchase also.)
  • Sec. 72 provides for automatic vesting of leasehold properties held by ‘cultivating tenants’ in Govt.  (ILR 2010(2) Ker. 845). 

PART I

ACQUISITION OF PLANTATION-LANDS OWNED BY PRIVATE PERSONS

1. Proviso to Article 31A(1) of the Constitution of India

It is plain – No compensation is payable to the land-owners, for the lands ‘above the ceiling limit’, according to the Constitution of India. If any authority gives it, it will be sheer “corruption”.

  • The provisions of the KLR Act as regards ‘vesting’‘excess land’ etc. are legislated predicating upon Proviso to Article 31A(1) of the Constitution which states that the State need not pay compensation to the former land owners (when land is acquired) above the ‘ceiling limit.
  • Proviso to Article 31A(1) of the Constitution of India reads as under:
    “Provided further that where any law makes any provision for the acquisition by the State of any estate and where any land comprised therein is held by a person under his personal cultivationit shall not be lawful for the State to acquire any portion of such land as is within the ceiling limit applicable to him under any law for the time being in force or any building or structure standing thereon or appurtenant thereto, unless the law relating to the acquisition of such land, building or structure, provides for payment of compensation at a rate which shall not be less than the market value thereof.”.
  • Under Sec. 112 (5A) of the KLR Act, on acquisition, the cultivating tenants are entitled to compensation for improvements (only) for the land vested in the Government under Sec. 72.
    Sec. 112 (5A)(a) says that the compensation for any building or other improvements belonging to the landowner shall be awarded to the Government; and clause (b) says that the balance remaining after deducting the compensation referred to in clause (a) and the value of the land occupied by the homestead or hut, if any, shall be apportioned between the cultivating tenant and the Government in proportion to the profits derivable by them from the land.
  • The effect of Chapter III on Government-lease-lands and on the lands that fall under Section 13 (Fixity) and 72 (vest in Government) is that the tenants (both Government’s tenants and the erstwhile Private landholders’ tenants) have to pay ‘rent‘ to the Government under Sec. 72F(h).
  • Section 81(4)permits use of the land not exceeding 5% of the extent of such holding for floriculture, dairy farms, hotels, restaurants, etc.

2. Exemption of ‘Plantation’ Does Not Cover Exemption of ‘Plantation LAND’

It is for the following reasons –

  • 1. The exemption is to the ‘plantation’, and not to the ‘LAND‘.
  • 2. Exemption is conditional – for it exists (only) as long as the plantation exists or continues;
  • Because,
    • (a) S. 2(44) defines ‘plantation’ as land used principally for the cultivation of a specific ‘plantation crop‘ like tea, coffee, cocoa, rubber etc.
    • (b) Section 87, Explanation II states that if a plantation for which exemption is given on recognition of a specific ‘plantation-crop’ is converted into any other ‘plantation-crop’ or the plantation activity is not continued, the exemption may be lost; and the land will be taken for considering the ceiling limit.

3. Effect of CONVERTION TO ANY OTHER CLASS 

Sec. 87 Exp. II  provides – If CONVERTED TO ANY OTHER CLASS and the person (who gets the property) owns excess of ceiling area – the excess shall be deemed to be land acquired (and fall under Sec. 87) .

Explanation II of Sec. 87 reads as under:

  • “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.”
  • Sec. 87(1A) provides – Person referred to above (transferee) also should file statement (Return).
    • Title to the property is not decided by the TLB (Harikumar v. State of Kerala, 2013 (2) KLT 44 (Para 9) Jagadeesachandran Nair v. Mamomohanan Pandarathil, 2013 (4) KLT 584 (para 11); Both decisions were referred to in Harrisons Malayalam Limited v. State of Kerala, Represented By The Chief Secretary, 2018-2 KHC 719; 2018-2 KLT 369 (para 54).

4. No Total Prohibition in using Exempted Land for a Different Purpose

Explanation II does not make a total bar. It only causes to lose benefit of the exemption to a certain extent. 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. In this premises, in Wayanad Granites v. District Collector, 2023-4 KLT 874, it is held that ‘fragmentation is per se not illegal’. similarly, in District Collector v. Sajith Lal, 2023-4 KLJ 851, it is held that ‘there is no embargo under law in using any exempted land for non-exempted purposes as well’.

In Mathew K.T v. State of Kerala, 19 April, 2024, in the light of earlier decisions, observed that there is no total prohibition in using an exempted land for a different purpose under the Kerala Land Reforms Act. The impediment or restriction is (only) the following –

  • If a portion of the exempted land is utilised for any other purpose, that would fall within his ceiling area and the authorities may be able to initiate ceiling proceedings.

5. The Full Bench decision, Mathew K. Jacob v. District Environmental Impact Assessment Authority [AIR 2019 Ker. 67, affirmed by the Supreme Court in K.H. Nazar v. Mathew K. Jacob, 2020-14 SCC 126] held as under:

  • “We however add that any class of land earlier exempted in the ceiling case can be converted into any class of land not liable to be exempted under Explanation II to Section 87 of the Act. 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 a matter to be dealt with by the Taluk Land Board with the assessee or the declarant and other interested parties on the party array and we desist from elaborating further.”

6. In District Collector v. Sajith Lal (2023-4 KLJ 851; 2023 KLT OnLine 1225) it is held as under:

  • “5. There is no embargo under law in using any exempted land for non- exempted purposes as well. If the land is used for non-exempted purposes, the holder of the land will lose the qualification for exemption, thus giving authority to the Land Board to initiate ceiling proceedings.” (Quoted in: Mathew K.T v. State of Kerala, 19 April, 2024)

7. No Embargo to Transfer Plantation Land

In R. V.  Devassia v. Sub Registrar, Idukki, 2015-1 ILR(Ker) 1047; 2015-1 KHC 805; 2015-2 KLJ 17, it is held as under:

  • “9. On promulgation of the KLR Act in the State, the entire landed property in the State is subjected to State control as envisaged under the provisions of the KLR Act. No piece of the land escapes the clutches of the KLR Act including exempted land for ceiling purposes. The ceiling proceedings is a continuing proceedings and can be reopened in any of the circumstances, if so warranted, as contemplated under Section 87 of the KLR Act. Exemption granted from ceiling is the qualification to use the land in a particular manner, which means a burden is imposed on the land. The moment the qualification for exemption is vanished by conversion of the land, the protection from ceiling will also be extinguished to bring the land within the fold of the ceiling area. The exemption is in the nature of a burden on the land to use the land for the purpose for which exemption is granted. The eminent domain power of the State can be exercised for acquiring land without consent and also to regulate the use of land in public interest. The eminent domain is power inherent in any Sovereign State. This burden would bind the holder of the land as on 01/01/1970 and the successor-in-interest. The Division Bench of this Court in the State Human Rights Protection Centre, Thrissur and another v. State of Kerala and others [2009 (3) ILR 695] held that exemption granted under S.81(1)(a) is for the land and would continue to operate irrespective of change of ownership of the exempted land and the transferee would have to use the land for the purpose for which exemption is granted.”

8. In Everest Stone Crusher and Granites v. District Collector, Kannur, 2020-6 KHC 289, it is observed as under:

  • “16. In Devassia R.V. this Court noticed that, the provisions of the Kerala Land Reforms Act do not place any embargo on transfer. The transfer of registry is for fiscal purposes. The power of the competent authority to reopen the ceiling proceedings to include the land exempted for the purpose of ceiling is not lost on account of effecting mutation. Therefore, the Revenue Officials cannot refuse to effect mutation of the property purchased by the transferee.”

9. 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.”

9. Compensation to the Owner who Surrunders land within Ceiling limit

Sec. 88, KLR Act determines the compensation to the owners who surrunders land. It provides only nominal compensation (Maximum compensation is only Rs. 2 lakhs). No right remains with (erstwhile owner) thereafter. Sec. 88 reads as under:

“88. Persons surrendering land entitled to compensation.

  • (1) Where ownership or possession or both of any land is vested in the Government under Section 86 or Section 87, such person shall be entitled to compensation. Where the rights of an intermediary are extinguished, such intermediary shall also be entitled to compensation.
  • (1A)  Notwithstanding anything contained in Sub-section (1), no person shall be entitled to any compensation in respect of any land owned by the Government of Kerala and held by him under lease or otherwise.
  • (2) The compensation payable to an owner for the vesting in the Government of ownership and possession of land shall be an amount calculated at the rates specified in Schedule IV.
  • (3) The compensation payable to the landowner, intermediary or cultivating tenant for the vesting in the Government or extinguishment of his rights shall be the portion of an amount calculated at the rates specified in Schedule IV that will fall to his share if such amount were apportioned among the landowner, cultivating tenant and intermediary, if any, in respect of the land according to the following provisions:
  • .(i) ninety percent of the portion of the compensation for the site of any homestead or hut in the occupation of a kudikidappukaran shall be deducted from the total amount of compensation;
  • (ii) the balance remaining after deducting the amount referred to in clause (1) shall be apportioned among the landowner, the intermediaries and the cultivating tenant in proportion to the profits derivable by them from the land immediately before the surrender, assumption or vesting in the Government, as the case maybe.
  • Explanation. -“Profits derivable from the land” shall be deemed to be equal to
  • .(i) in the case of a landowner; the rent which he was entitled to get immediately before the 1st day of January, 1970, from the tenant holding immediately under aim;
  • (ii) in the case of an intermediary, the difference between the rent which he was entitled to get immediately before the 1st day of January, 1970, from his tenant and the rent for which he was liable to his landlord immediately before that day; and
  • (iii) in the case of a cultivating Tenant, the difference between the net income and the rent which he was liable to pay immediately before the said day.
  • (3A) Notwithstanding anything contained in Sub-sections (2) and (3), where the compensation due under those Sub-sections to an adult unmarried person, family or any other person (other than a joint family), as owner, landowner, intermediary or cultivating tenant or in any two or more of such capacities exceeds one lakh rupees, the compensation payable shall be limited to the amount specified in the Table below:
  • TableScales of compensation
  • Total Amount of compensation                         Rate
  • On the first Rs. 1 lakh                                     100 per cent
  • On the next Rs. 50,000                                    30 per cent
  • On the balance amount                                    23 per cent:

Provided that the compensation payable shall in no case exceed:  Rs. 2 lakhs.

  • (4) Where the rights of a mortgagee in possession are vested in the Government –
  • .(i) Where the ownership of the land mortgaged [has vested in the Government the mortgagee shall be treated as a holder of an encumbrance in respect of the land, and the encumbrance shall be discharged as provided in Sections 91 and 92;
  • .(ii) in other cases, the Government shall pay to the mortgagee the amount to which he would have been entitled under clause (i) if the ownership of the land mortgaged (Iliad vested in) the Government, and hold the land as mortgagee with possession with all the rights and liabilities of the mortgagee.
  • (5) For the removal of doubts, it is hereby declared that the compensation payable under this Section in respect of a land shall be deemed to include the compensation for growing crops and improvements, if any, thereon and that no person shall be entitled to any amount other than the compensation payable under this Section for The vesting in the Government or extinguishment of his rights (including his rights in respect of growing corps and improvements if any) in respect of the land.
Finale on Acquisition of Plantation Lands Owned By Private Persons
When plantation-land is acquired, there will be stark difference, between land within ceiling limit and that beyond ceiling limit.
The compensation as regards plantations above ceiling limit is not made mention of in the KLR Act. Article 31A of the Constitution of India does not ensure compensation above ceiling limit.

PART II

ACQUISITION” OF PLANTATION-LEASE-LANDS OWNED BY GOVT.

1. Sec. 81 exemptions do not apply to Government lands; But, Exemptions apply to (Government) lease-lands

Government-lease-lands are also exempted under Sec. 81(1)(a).

81(1)(a) Proviso says –

  • “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“.

This proviso is introduced in 1971. By virtue of this amendment (introducing Section 81(1)(a) Proviso) “Plantation-Exemption” takes effect on Government-lease-land (with tenants).

2. However, it must be noted that a ‘valid lease’ must exist. That is, the person in possession of government land should be a “lessee”; he must not be trespasser or a person who forfeit the title of Government.

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.”

3. The word “otherwise” must be understood as a permissive occupation

In MT 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 possessionThe 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.”

4. Govt. Lands – No Fixity of Tenure, as Exempted u/s 3(1)(x)

Government lands are covered by the exemption u/s 3(1)(x) of the Land Reforms Act and therefore he cannot claim any fixity of tenure. It applies to lands shown in the settlement register and land register as the property as Temple puramboke.

(Travancore Devaswom Board v. Mohanan Nair M.N., (2013) 3 KLT 132, (T.R. Ramachandran NairJ; A.V. Ramakrishna Pillai, J.)

5. From the above, it is clear – by virtye of Sec. 81 exemption, though there is no ‘fixity of tenure’, there is “legal protection” to the tenants, to hold the land (so long as there is plantation crop) – without being affected by the ceiling (limit) in Chapter III.

Note: The net result is that such tenants are bound by the terms of the lease deeds.

Finale on Acquisition of Plantation-Lease-Lands Owned By the Govt.
There is no question of awarding land value to the tenants of Government lands.
No compensation is ensured to such tenants under any provision of the KLR Act.

[Note:Under Sec. 112 (5A) of the KLR Act, the cultivating tenants are entitled to compensation for improvements (only) for the land vested in the Government under Sec. 72.
Sec. 112 (5A)(a) says that the compensation for any building or other improvements belonging to the landowner shall be awarded to the Government; and clause (b) says that the balance remaining after deducting the compensation referred to in clause (a) and the value of the land occupied by the homestead or hut, if any, shall be apportioned between the cultivating tenant and the Government in proportion to the profits derivable by them from the land.

PART III

ACQUISITION OF PLANTATION-LEASE-LANDS (Formerly) OWNED BY PRIVATE LAND OWNERS

  1. Sec. 13 says every tenant has fixity.
  2. But, no Purchase certificate can be obtained beyond ceiling limit (under Sec. 72B or 72C). (Note: No rider to Sec. 72B and 72C, by way of proviso or otherwise, exempting plantation.)
  3. However, the holdings held by cultivating tenants will vest in Govt., under Section 72(1).

Note: Sec. 72 provides for automatic vesting of leasehold properties (held by ‘cultivating tenants’) in Govt. ILR 2010(2) Ker. 845. 

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

According to the provisions of the KLR Act, lands held by individuals (or associations of persons) vest in Govt. under two provisions. They are-

  • First, Sec. 72 – Vesting of landlord’s rights in Government. (Obviously it applies to tenancy-land alone.)
  • Second, Sec. 86. – Vesting of excess lands in Government.
    • Note: Sec. 86 does not apply to Plantations, for (i) they being already vest in Govt. under Sec. 72, and (ii) if Govt. land, no question of vesting arises.

5. 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”

6. Who is the OWNER of Exempted (Private-Leasehold) Plantation Lands in Kerala?

It is Government, though by virtue of Chapter II (Sec. 13) the tenant has ‘Fixity’. 

  • 1. Plantation (lease) Lands VEST in GOVT, automatically
  • Because,
  • Sec. 72 provides for
    • mandatory and involuntary vesting in Government
    • of leasehold lands that is held by cultivating tenants entitled to fixity of tenure under Sec. 13 (even if the extent exceeds ceiling limit).
    • See: Perumal Smaraka Nidhi vs M/S Harrisons Malayalam Ltd., 31. 01. 2013.
  • 2. ‘Vesting’ in Govt. is ‘Vesting of Ownership‘
  • It is for the reasons –
    • Declared to be ‘vested’ in Government (Sec. 72).
    • Such a tenant is liable to pay ‘rent’ to the Government (Sec. 72E) for the unassigned land (e.g. exempted plantation land).
  • 3. ‘Exemption’ in Chapter III Cannot be read into Sec. 72B(2)
  • The provision of law for giving Purchase-Certificate under Sec. 72B specifies that the provisions of Sec. 82 (as to ceiling limit) shall apply for the calculation of the ceiling area (alone).
  • Sec. 72B(2) reads-
    • (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)
  • The exemption provision in Sec. 81 (Chapter III), which excludes plantation lands from the ceiling limit, cannot be brought-forth or read-into Sec. 72B (provision for assignment of purchase-certificate) in Chapter II.
    • In other words, purchase-certificates cannot be given for land above ceiling-limit, rigging the exemption provisions (for plantations etc.).
  • Because,
    • Sec. 72B(1), in Chapter II shows – Sec. 72B(1) is an independent provision (though the Proviso says – no cultivating tenant shall be entitled to assignment of the right, title and interest … (more than) … the ceiling area, mentioned in Sec. 82 in Chapter III)
    • When a provision in a latter Chapter of an Act (here, Sec. 82 that deals with extent of ceiling limit, in Chapter III) is referred to in an independent provision in an earlier Chapter (here, Sec. 72B, as regards issuing purchase certificate, in Chapter II), for a specific purpose (here, to state the limit in area alone), it cannot be said – the attributed colour or smell of the provision in the latter chapter (by virtue of other provisions, i.e., entire characteristics or attributions added to Sec. 82 by virtue of other provisions in Chapter III), would stand reflected on the earlier provision (here, Sec. 72B).
  • Further – Sec. 72E provides for  ‘rent’ to Government
    • Chapter II of the KLR Act (dealing with ‘Tenancy’) is exclusive and exhaustive as to ‘fixity’, and ‘vesting’ of land in Government.
    • It is not stated anywhere in the Act – the right and title of the (leased-plantation) land legitimately vested in Government under Sec. 72, will be divested in any manner (in favour of the previous owner, or of the tenant or anybody else), in any circumstance.
    • Sec. 72E provides for collection of ‘rent‘ from the holders of the plantation, for the unassigned land (e.g. exempted plantation land) and Sec. 72F(5)(h) authorises the Land Tribunal to fix the rent. (It goes without saying that it is for the reason that the ownership of the land vests in Govt.)
    • Note: Proceedings initiated by Taluk Land Board under Chapter III (in respect of plantation) do not confer title.
    • Title to the property is not decided by the TLB (Harikumar v. State of Kerala, 2013 (2) KLT 44 (Para 9) Jagadeesachandran Nair v. Mamomohanan Pandarathil, 2013 (4) KLT 584 (para 11); Both decisions were referred to in Harrisons Malayalam Limited v. State of Kerala, Represented By The Chief Secretary, 2018-2 KHC 719; 2018-2 KLT 369 (para 54).
  • 4.  Tenant cannot ‘Sell’ Plantation Land as his absolute property
    • A tenant who got ‘fixity’ over such land cannot ‘sell’ this land as his absolute (ownership) property.

7. Rights of ‘tenants’ of Plantations (after vesting the land with Govt.) is a ‘Legal Right conferred by Statute’

  • It is not Tenancy – For no landlord-tenant relation with the Govt.
  • Not Grant or Licence/Permission – For Grant as well as Licence/Permission arise from a contract (express or implied).
  • Therefore, it can termed only as a “Legal Right conferred by Statute“, the KLR Act.

8. What are the Stipulations attached to that “Legal Right”?

  • Subject to the condition – not to “convert” it for any other use, other than the specific plantation (Sec. 87).

9. When Such a land is Required for Govt., Should it be Acquired?

  • The ownership being vested in Govt. it need not be ‘strictly’ “acquired”.
  • But no provision In Sec. 72 for ‘resuming’, if and when Govt. needs it.

10. Sec. 112 of the KLR ActApportionment’s of land value in cases of Acquisition

Sec. 112 (5A) of the KLR Act reads-

  • “112. …..
  • (5A) Notwithstanding anything contained in Sub-sections (2) and (5), where there the right, title and interest of the landowner and the intermediaries in respect of the land acquired have vested in the Government under Section 72, –
    • (a) the compensation for any building or other improvements belonging to such landowner and intermediaries shall be awarded to the Government; and
    • (b) the balance remaining after deducting the compensation referred to in clause (a) and the value of the land occupied by the homestead or hut, if any, shall be apportioned between the cultivating tenant and the Government in proportion to the profits derivable by them from the land.
  • Explanation. – “Profits derivable from the land” shall be deemed to be equal to-
    • in the case of the cultivating tenant, the difference between the net income immediately before the acquisition and the rent which he was liable to pay immediately before the date on which the right, title and interest of the landowner and the intermediaries have vested in the Government; and
    • in the case of the Government, such rent.”

Because of the “Legal Right conferred by Statute“ upon the former tenants of the plantation, they are entitled for certain compensation, when that land is required for the Govt..

  • In cases falling under Chapter II (pertaining to, tenants entitled for fixity, issuance of purchase certificate etc.) Section 72 deals with the right, title and interest of the land owners and intermediaries in respect of the holdings held by the cultivating tenants; and says -the land will be free from encumbrances created by the land-owners and intermediaries.

Therefore, it is said – Apportionment of land value in cases of ‘acquisition’.

  • Note:  It makes no difference (SUBSTANTIALLY, IN DETERMINING COMPENSATION) whether such a plantation land is “acquired” or not. Because, even if the land is not ‘acquired’, Govt. has to pay compensation for improvements to the former tenants (who holds the land by virtue of the “Legal Right conferred by Statute“, the KLR Act).

Apportionment depends upon rights on the date of acquisition

  • Valia Raja v. Veeraraghava Iyer, 1961 Ker LT 103, it was held that the question of apportionment of compensation has to depend upon the rights of the parties on the date of the acquisition. Referrd to in: Varkey Thomas Vs. Annamma Abraham,  1969 Ker LT 903.

11. Though the tenant has fixity, he is not the owner of such land. Because, such lands vest in Govt. under Sec. 72.

If tenant had raised plantation on bare land leased –

  • Such plantations are not excluded (from Chapter II) by the ‘Exemption’ clause under S. 3(1)(viii).
    • Therefore, tenants of such tenancy-land are entitled for benefits under Chapter II such as
      • Fixity under Sec. 13,
      • purchase certificate within ceiling limit etc.
    • Though the tenant has fixity, he is not the owner of such land. Because, such lands vest in Govt. under Sec. 72. (Purchase certificate cannot be obtained for the extent below ceiling limit.)

12. Proviso to Article 31A(1) of the Constitution of India

  • The provisions of the KLR Act as regards ‘vesting’‘excess land’ etc. are legislated predicating upon Proviso to Article 31A(1) of the Constitution which states that the State need not pay compensation to the former land owners (when land is acquired) above the ‘ceiling limit
  • It goes without saying – If no compensation is payable to the land-owners above the ceiling limit, it cannot be given to tenants.
  • Proviso to Article 31A(1) of the Constitution of India reads as under:
    “Provided further that where any law makes any provision for the acquisition by the State of any estate and where any land comprised therein is held by a person under his personal cultivationit shall not be lawful for the State to acquire any portion of such land as is within the ceiling limit applicable to him under any law for the time being in force or any building or structure standing thereon or appurtenant thereto, unless the law relating to the acquisition of such land, building or structure, provides for payment of compensation at a rate which shall not be less than the market value thereof.”.
Finale on Acquisition of Plantation-Lease-Lands Owned By Private Land Owners
There is no question of awarding land value to the landowners and/or tenants of private landowners.
Under Sec. 72 under Sec. 112 (5A) of the KLR Act, the cultivating tenants
are entitled to compensation for improvements (only) for the land vested in the Government.
Sec. 112 (5A)(a) says that the compensation for any building or other improvements belonging to the landowner shall be awarded to the Government; and clause (b) says that the balance remaining after deducting the compensation referred to in clause (a) and the value of the land occupied by the homestead or hut, if any, shall be apportioned between the cultivating tenant and the Government in proportion to the profits derivable by them from the land.

KLR Act Overrides Land Acquisition Act

Sec. 127 of the KLR Act declares – it override other Laws. It reads as under:

  • “127. Act to override other laws, etc.- The provisions of this Act shall have effect notwithstanding anything in any other taw or any custom or usage or in any contract, express or implied, inconsistent with the provisions of this Act.”

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

Possession is a heritable and transferable right. [See: Nallammal v. 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’ (as Provided in Sec. 87 Expl. II) 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.

11. In Secretary, TDB v. Mohanan Nair (T.R. Ramachandran Nair & A.V. Ramakrishna Pillai, JJ.), ILR 2013-2 Ker 883; 2013-3 KLT 132, an important decision on Kerala Land Reforms Act, it is found that Purchase Certificate issued by Land Tribunal, for land belonging to Government Devaswom (exempted category under S.3(1)(x) of the Act), will be in total violation of Rules, and will be a nullity.

END NOTES

1.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.”

2. For Exemption Tenant must have Approached LT

For getting the Exemption under Chapter III, the tenant must have approached the Land Tribunal for getting the tenancy ‘declared’.

Sec. 85(3) and (3A) of the KLR Act read as under:

  • (3). Where, after the final settlement of claims for resumption of lands held by a person as tenant, such person holds land in excess of the ceiling area, or where after the purchase of the right, title and interest of the landowner** and the intermediary by the cultivating tenant in respect of lands owned by a person, such person owns land in excess of the ceiling area, such excess land shall be surrendered as hereinafter provided.
  • (3A). The person bound to file a statement under Sub-section (2) shall, within a period of three months from the date of final settlement or purchase, file a statement before the Land Board, and the provisions of the said Sub-section shall, as far as may he, apply in regard to the particulars to be contained in such statement, the calculation of the excess land and for the procedure for the surrender of the same.] [Substituted by Act No. 35 of 1969.
  • ** See Notes below. As per Sec. 85(3) it is a mandatory requirement to approach the Land Tribunal for getting the Purchase Certificate.

Why the Words “After The Purchase of the Right, Title And Interest of the Landowner” Included?

It is definite: It is for adjudicating the ‘tenancy right’, by the Land Tribunal – for, the Land Tribunal is the only authority that can decide on the “tenancy right.” (It is the principle applied in the Balanoor case.)

  • Note: A tenant cannot declare himself to be a cultivating-tenant and avail benefits – the competent statutory authority (for the same) under the KLR Act is the Land Tribunal.

Title to the property is not decided by the TLB (Harikumar v. State of Kerala, 2013 (2) KLT 44 (Para 9) Jagadeesachandran Nair v. Mamomohanan Pandarathil, 2013 (4) KLT 584 (para 11); Both decisions were referred to in Harrisons Malayalam Limited v. State of Kerala, Represented By The Chief Secretary, 2018-2 KHC 719; 2018-2 KLT 369 (para 54).

3. Excess, Ceiling ReturnSurrenderExemption Etc.

Section 81:

S. 81, the first Section in Chapter III deals with exemption from ceiling limit of plantation, industrial land, etc.

Sec. 81 reads as under:

  • Exemptions: (1)The provisions of this Chapter shall not apply to –
  • (a) lands owned or held by the Government of Kerala or
  • the Government of any other State in India or
  • the Government of India or
  • a local authority [or the Cochin Port Trust] [Inserted by Act 35 of 1969.] 
  • or any other authority which the Government may, in public interest, exempt, by notification in the Gazette, from the provisions of this Chapter.
  • [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.] [Inserted by Act 17 of 1972.]
  • [Explanation I. [Numbered as Explanation I by Act 35 of 1969.] – “Lands owned by the Government of Kerala” shall, for the purposes of this clause, have the same meaning as “Government Lands” under Sub-section (1) of Section 2 of the Kerala Government Land Assignment Act, 1960; [but lands escheated to the Government and held by tenants entitled to fixity of tenure under Section 13 shall not be deemed to be lands owned by the Government of Kerala.]]
  • [Explanation II. [Inserted by Act 35 of 1969.] – Lands, the right, title and interest in respect of which have vested in the Government under Sub-section (9) of Section 66 or Section 72, shall not be deemed to be “lands owned by the Government of Kerala” for the purposes of this clause;]
  • [Explanation III. [Inserted by Act 25 of 1971.] – For the purposes of this clause, “other authority”, shall include a corporation owned or controlled by the Government of Kerala or the Government of any other State in India or the Government of India;]
  • (b) lands taken under the management of the Court of Wards:
  • Provided that the exemption under this clause shall cease to apply at the end of three years from the commencement of this Act;
  • (c) lands comprised in mills, factories or workshops and which are necessary for the use of such mills, factories or workshops;
  • (d) private forests;
  • (e) plantations;
  • (f)[ cashew estate [Inserted by Act No. 6 of 2012.]
  • Explanation. – For the purpose of this clause “cashew estate” shall mean dry land principally cultivated with not less than 150 cashew trees per hectare.]
  • (g)[***] [Omitted by Act 35 of 1969.]
  • (h) lands mortgaged to the Government, or to a co-operative society (including a co-operative land mortgage bank) registered or deemed to be registered under the Co-operative Societies Act for the time being in force, or to the Kerala Financial Corporation, or to the Kerala Industrial Development Corporation or to the State Small Industries Corporation, as security for any loan advanced by the Government or by such Society or Corporation, so long as the mortgage subsists:
  • Provided that the exemption under this clause shall cease to apply at the end of three years from the commencement of this Act;
  • (i)lands purchased by the Kerala Co-operative Central Land Mortgage Bank or a Primary Mortgage Bank under Sec Lion 18 of the Kerala State Co-operative Land Mortgage Banks Act, 1960, or by the Kerala State Co-operative Bank Ltd., or by a primary agricultural credit co- operative society or by a scheduled bank as defined in the Reserve Bank of India Act, 1934 so long as such lands continue in the possession of the bank;
  • (j)lands purchased by the Kerala Financial Corporation or lands the management of which has been taken over by that Corporation, under Section 32 of the State Financial Corporations Act, 1951, so long as such lands remain in the ownership, or continue under the management, as the case may be, of the said Corporation:
  • [Provided that the exemption under this clause shall not apply in the case of lands the management of which has been taken over by the Corporation on or after the 1st day of April, 1964;] [Added by Act No. 35 of 1969.]
  • (k)lands belonging to or held by an industrial or commercial undertaking at the commencement of this Act, and set apart for use for the industrial or commercial purpose of the undertaking:
  • Provided that the exemption under this clause shall cease to apply if such land is not actually used for the purpose for which it has been set apart, within such time as the District Collector may, by notice to the undertaking, specify in that behalf;
  • (l)[***] [Omitted by Act No. 35 of 1969.]
  • (m)[ house sites, that is to say, sites occupied by dwelling houses and lands, wells, tanks and other structures necessary for the convenient enjoyment of the dwelling houses.] [Substituted by Act No. 17 of 1972.]
  • Explanation. – For the avoidance of doubt, it is hereby declared that a compound wall shall not he deemed to he a structure necessary for the convenient enjoyment of a dwelling house, if the land on which the dwelling house is situated and enclosed by the compound waif is more than the (and necessary (or the convenient enjoyment of the dwelling house.
  • (n)[***] [Omitted by Act No. 35 of 1969.]
  • (o)sites of temples, churches, mosques and cemeteries and burial and burning grounds:
  • (p)sites of buildings including warehouses;
  • (q)commercial sites;
  • (r)land occupied by educational institutions including land necessary for the convenient use of the institutions and playgrounds attached to such institutions;
  • (s)lands vested in the Bhoodan Yagna Committee;
  • (t)lands owned or held by -(i)a University established by law; or(i)the entire income of such lands is appropriated for the University, institution or trust concerned; and(ii)where the University, institution or trust comes to hold the said lands after the commencement of this Act, the Government have certified previously that such lands are bona fide required for the purposes of the University, institution or trust, as the case may be; and(u)lands granted to defence personnel for gallantry.(ii)a religious, charitable or educational institution of a public nature; or(iii)a public trust which expression shall include a wakf;
  • Provided that-
  • (2)[***] [Omitted by Act No. 35 of 1969.]
  • (3)[ The Government may if they are satisfied that it is necessary to do so in the public interest -(a)on account of any special use to which any land is put; or (b)on account of any land being bonafide required for the purpose of conversion into plantation or for the extension or preservation of an existing plantation or for any commercial, industrial, educational or charitable purpose, by notification in the Gazette, exempt such land from the provisions of this Chapter, subject to such restrictions and conditions as they may deem fit to impose:
  • Provided that the land referred to in clause (b) shall be used for the purpose for which it is intended within such time as the Government may specify in that behalf; and, where the land is not so used within the time specified, the exemption shall cease to he in force.] [Substituted by Act No. 35 of 1969.]
  • (4)[ Notwithstanding anything contained in this Act or in any other law for the time being in force of in any contract or other documents or in any judgement, decree or order of any Court or Tribunal or Taluk Land Board or Land Board or other authority, a person holding plantation and lands ancillary thereto or interspersed within such* plantation, [may, subject to such restrictions and conditions as may be prescribed, use] [Inserted by Act No. 6 of 2012.] not exceeding five per cent of the extent of such holding for floriculture or for the cultivation of Vanila or medicinal plants or other [agricultural crops or for conducting dairy farms] [Substituted ‘agricultural crops’ by Act No. 6 of 2015.] or for establishing hotels or resorts or other tourism projects and for purposes ancillary or connected therewith.]

4. Section 82 & 83: Ceiling area 

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.]

Section 83

Sec. 83 reads as under:

  • “83. No person to hold land in excess of the ceiling areaWith 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.”

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: …. ….”

Section 2(3) defines ceiling area as under:

  • “Ceiling area” means the extent of land specified in section 82 as the ceiling area”.
  • 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.

S. 82 & 83 deal with ceiling area and bars holding land excess of ceiling fixed.

5. 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.]

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.

6. Apportionment’s of land value in cases of Acquisition

Sec. 112 of the KLR Act reads-

  • “112. Apportionment’s of land value in cases of acquisition – (1) Where any land is acquired under the law for the time being in force providing for the compulsory acquisition of land for public purposes, the compensation awarded under such law in respect of the land acquired shall be apportioned among the landowner, intermediaries, cultivating tenant and the kudikidappukaran in the manner specified in this Section.
  • (2) The compensation for any building or other improvements shall be awarded to the person entitled to such building or other improvements.
  • (3) The kudikidappukaran shall be entitled to the value of the land occupied by his homestead or hut subject to a minimum of-
    • three cents in a city or major municipality; or
    • five cents in any other municipally; or
    • ten cents in a panchayat area or township.
  • (4) The difference between the value of three cents or five cents or ten cents, as the case may be, and the value of the extent of the land occupied by the homestead or hut shall, notwithstanding anything contained in the Kerala Land Acquisition Act, 1961, be borne by the Government or the local authority or the company or other person on whose behalf the land is acquired.
  • (5) The balance remaining after deducting the compensation referred to in Sub-section (2) and the value of the land occupied by the homestead or hut shall he apportioned among the landowner, the intermediaries and the cultivating tenant in proportion to the profits derivable by them from the land acquired immediately before such acquisition.
    • Explanation. – “Profits derivable from the land” shall be deemed to be equal to (i) in the case of a landowner, the rent which he was entitled to get from the tenant holding immediately under him; (ii) in the case of an intermediary, the difference between the rent which he was entitled to get from his tenant and the rent for which he was liable to his landlord; and (iii) in the case of a cultivating tenant, the difference between the net income and the rent payable by him; and the rent payable by the cultivating tenant and the intermediary for the purposes of this Explanation shall be as calculated under the provisions of this Act.
  • (5A) Notwithstanding anything contained in Sub-sections (2) and (5), where there the right, title and interest of the land owner and the intermediaries in respect of the land acquired have vested in the Government under Section 72, –
    • (a) the compensation for any building or other improvements belonging to such landowner and intermediaries shall be awarded to the Government; and
    • (b) the balance remaining after deducting the compensation referred to in clause (a) and the value of the land occupied by the homestead or hut, if any, shall be apportioned between the cultivating tenant and the Government in proportion to the profits derivable by them from the land.*fn*
  • Explanation. – “Profits derivable from the land” shall be deemed to be equal to-
    • in the case of the cultivating tenant, the difference between the net income immediately before the acquisition and the rent which he was liable to pay immediately before the date on which the right, title and interest of the landowner and the intermediaries have vested in the Government; and
    • in the case of the Government, such rent.
  • (7) In this Section, “homestead” includes a dwelling house occupied by a person who is deemed to be a kudikidappukaran under Explanation IIA to clause (25) of Section 2.”
  • Foot Note:
    • *fn* 1. “Value of the land occupied by the homestead or hut” says as to the actual area where the ‘homestead or hut’ is situated; whatever may be the area of land outside it.
    • 2. This provision is applied to lease-lands vested in Govt. under Sec. 72 and no purchase certificate is given (to the tenant).

No Land value to be given for the “excess” land (Beyond Ceiling Limit)

From Sect. 112, it is beyond doubt that no Land value to be given for the entire land and it is limited to a portion.

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).

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: ….. ….
  • (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);
  • (3) (4) (5)

Is Purchase Certificate (inaccurate on its face, or fraud, for excess of the ceiling area) Conclusive Proof?

  • No.

Our Apex Court considered this matter in Chettian Veetil Ammad v. Taluk Land BoardAIR 1979 SC 1573; 1980 1 SCC 499 (P.N. Shinghal & O. Chinnappa Reddy, JJ.) where Purchase Certificate was issued, excess of the ceiling area, as under:

  • “27. It would thus appear that even though the certificate of purchase issued under sub-section (1) of Section 72-K is conclusive proof of the assignment of the right, title and interest of the landowner in favour of the holder in respect of the holding concerned under sub-section (2), that only means that no contrary evidence shall be effective to displace it, unless the so called conclusive proof is inaccurate on its face, or fraud can be shown (Halsburys – Laws of England, fourth edition, Vol. 17, page 22 paragraph 28), It may be stated that “inaccuracy on the face” of the certificate is not as wide in its connotation as an “error apparent on the face of the record.” It will not therefore be permissible for the Board to disregard the evidentiary value of the certificate of purchase merely on the ground that it has not been issued on a proper appreciation or consideration of the evidence on record, or that the. Tribunals finding suffers from any procedural error. What sub-section (2) of Section 72-K provides is an irrebuttable presumption of law, and it may will be regarded as a rule of substantive law. But even so, for reasons already stated, it does not thereby take away the jurisdiction of the Taluk Land Board to make an order under Section 85 (5) after taking into consideration the “conclusive” evidentiary value of the certificate of purchase according to Section 72-K (2) as far as it goes.”

It is also noteworthy (as stated above) that purchase certificate shall not bind one, who was not party to the proceedings before the Land Tribunal, having better title over the property covered by the purchase certificate (Thayukutty v. Manikandan, the Kerala High Court (2023).

Extent of Land that for which a Purchase Certificate can be issued by LT

If a cultivating tenant (of a plantation land) possessed land at or above the ceiling limit, no purchase certificate can be issued to him, from the plantation property in question. 

If a tenant holds some land, he will receive a Purchase Certificate for the extent – equal to the Ceiling Limit minus the land he already possesses.

If such a tenant holds land at or above the ceiling limit (and, for that reason,  no purchase certificate can be given with respect to the plantation property), proceedings are to be promulgated, or an order is to be issued, by the Land Tribunal  to that effect, if it finds that he is a cultivating tenant of that plantation. This proceedings also has to be presented with the lease-agreement and other documents, before the Taluk Land Board, for getting the order of exemption.  

Glen Leven Estate (P) Ltd. v. State of Kerala, 2022-6 Ker LT 439

  • In Glen Leven Estate (P) Ltd. v. State of Kerala, 2022-6 Ker LT 439, the question as to ‘rival claims raised by the cultivating tenant and landlord for compensation on acquisition’ arose. The land was leased out by landlords. The lease-rights came in the cultivating tenants by transfer. The Government contended that the tenant was a cultivating tenant and the land vested upon the Govt. under Sec. 72 KLR Act. Hence tenant alone would be entitled to get compensation for the improvements to be determined under the Kerala Compensation for Tenants Improvements Act, 1958, in view of Section 20(1) of the KLR Act.
  • The landlords argued that the land was a plantation (over 30 acres) when it was (originally) leased, and therefore, they are entitled to claim exemption and benefits in the light of the exemption under clause (viii)  of Section 3 (1) of the KLR Act. Since there would be no fixity of tenure, it being a plantation, there would not be vesting of rights of the land owner in the Government. Hence, there should be the apportionment of the compensation between the lessor and the lessee and it should be decided in the acquisition proceedings.
  • The single Judge dismissed the writ petition, ‘leaving open the liberty of the lessee as well as the landlords, to approach the civil court seeking relief against the Government, and also to resolve the inter se dispute by and between the tenant and the landlords’.
  • The Division Bench, in appeal held that ‘land acquisition’ proceedings are to be initiated. It is pointed out that (even if it is a land vested in Govt.) there is no provision in Sec. 72 for ‘resuming’ if and when Govt. need it. The court also observed as under –
    • “31. On an analysis of the provisions of Section 72(1) of the Act, 1963, it is clear that when the Government notified the said provision with effect from 01.01.1970, 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, vested in the Government.
    • 32. Therefore, it is clear from Section 72 that what is vested with the Government is the right, title and interest of the land owners and intermediaries in respect of the holdings held by the cultivating tenants. It is nothing but a legal fiction by which the interest held by a cultivating tenant in a property of a landlord or intermediary is protected from 01.01.1970 .
    • 34. On a conjoint reading of Sections 72 and 72A, it can be seen that vesting of rights in the Government contained under Section 72 is the rights held by the landlord and the intermediary in respect of holdings held by the cultivating tenants. However, the same will not, in any manner, interfere with the rights enjoyed by a cultivating tenant in contemplation of the provisions of the Act, 1963.”
    • 42. Therefore, we have no doubt in our mind to hold that Section 72 of Act, 1963 would only deal with the right, title and interest of the land owners and intermediaries in respect of the holdings held by the cultivating tenants free from encumbrances created by the land owners and intermediaries. However, the legal provisions discussed above would make it clear that insofar as the cultivating tenant is concerned, an absolute right is vested with him to seek assignment subject to the payment of purchase price in contemplation of Section 72D of the Act, 1963.
  • While considering the right of landlord, it is pointed out (basing on the principle, or scheme of the KLR Act**) that the landlord may have right for compensation under Section 72BB. The Division Bench said-
    • “36. So also, sub-Section (1) of Section 72BB dealing with ‘the right of landlord to apply for assignment and compensation’ specifies that any landowner or intermediary, whose right, title and interest in respect of any holding have vested in the Government, may apply to the Land Tribunal for the assignment of such right, title and interest to the cultivating tenant and for the payment of the compensation due to him under Section 72A.”
  • **Note: 1. If plantation-lease-(leasing a land when plantation existed)-above-30-acre-
    • Sec. 72, 72 BB etc. will not apply (such land being excluded from Chapter II, under Sec. 3(1)(viii), KLR Act).
  • 2. In case of a plantation-lease-above-30-Acre-
    • on termination of the lease period, the land lord can resume the land, on the basis of his title; for, the tenant will not have fixity in such case, the land being exempted from the benefits of Chapter II (as per Sec. 3(1)(viii) of the KLR Act).
  • 3. The landlords of such plantation will get the benefits (under Sec. 81) and protection from ceiling limit that is stipulated under the provisions of Sec. 82, 83 etc. (that is, there will be no ceiling limit).
  • 4. In such a case, the right of landlord may be on a higher level or footing than the tenant (to get compensation).
  • 5. It cannot be compared with a plantation that is put up by the tenant. The tenants of such plantation will-
    • get fixity under Sec. 13 (though they will not get Purchase Certificate),
    • get the benefits and protection (under Sec. 81) from ceiling limit that is stipulated under the provisions of Sec. 82, 83 etc. (that is, there will be no ceiling limit).
    • In such a case, the right for compensation, if any, of the landlord will be nil or negligible.
      • The Division Bench, inter alia, on the above observations directed ‘the State and its officials to take proceedings for the acquisition of the land’.

Criticism on Glen Leven Estate (P) Ltd. v. State of Kerala, 2022-6 Ker LT 439

The Division Bench failed to consider–

  • The right, title and interest of the land (above ceiling limit) ‘vest’ with the Government under Sec. 72. It is absolute. It is not a ‘fiction; but, it is real and actual (as seen from Sec. 72E and Sec. 112(5A).
  •  The nature of this statutory ‘vesting in Govt’ (under Sec. 72) is further clear from – Sec. 72E (tenant has to pay rent (for the unassigned land (e.g. exempted plantation land)).
  • Sec. 112(5A) deals with unassaigned land (that is, no purchase certificate is given). Under this sub section land-value need not be given to the land-owner or the tenant over and above the “value of the land occupied by the homestead or hut” – that is, the actual area where the ‘homestead or hut’ is situated; whatever may be the area of land outside it.
  • This provision is applied to lease-lands vested in Govt. under Sec. 72 and no purchase certificate is given (to the tenant)., in case of acquisition).
  • Sec. 72B(2) KLR Act spells-out that a cultivating tenant will get Purchase Certificate for the extent below the ‘ceiling limit’ alone. That is, the tenant has no “absolute rights” above the ceiling limit.
  • Plantation-lands, usually, involve Hundreds or Thousands of Acres of “excess” land. The assignment-possible-land (within ceiling limit) may be miniscule (7.5 acres or 15 acres). Therefore, the analogy drawn by the Bench (tenant has a right seek assignment) is not apt at all.
  • When land vested in Govt. under Sec. 72 is acquired, in the light of Sec. 112(5A) land-value need not be given to the land-owner or the tenant, over and above the “value of the land occupied by the homestead or hut” – that is, the actual area where the ‘homestead or hut’ is situated; whatever may be the area of land outside it.
  • The aforesaid provision of law in the KLR Act is legislated following Proviso to Article 31A(1) of the Constitution which says that the State need not pay compensation to the land owners (when land is acquired) above the ‘ceiling limit‘.
  • The rights of ‘tenants’ of Plantations, to continue in the land till the plantation exists, after vesting the land with Govt., is a ‘Legal Right conferred by Statute’. It is not Tenancy – for no landlord-tenant relation with the Govt. It is not a Grant or Licence/Permission – for such rights arise from a contract (express or implied). Therefore, it can be termed only as a “Legal Right conferred by Statute“, the KLR Act.
  • It goes without saying – If no compensation is payable to the land-owners above the ceiling limit, it need not be given to tenants.
  • It is most unjustifiable to confer undue rights or benefits to the plantation-tenants (majority are BIG Companies) which had not been given to Maharaja of Travancore (whose 191 acres of lands in Thiruvananthapuram – above the ceiling limit, 15 acres – in the City was ‘mercilessly’ taken under the Orders of the Land Board Trivandrum, No. LB(B)2-18919/70, dated 15.01.1972). It is a sheer fact that lands of thousands of middleclass property owners was also harshly taken by under the provisions of the Act. (Note: Only limited right to continue the specified plantation-crop alone is given by the ‘exemption’; and, according to law, in case the land is ‘converted’, the exemption-benefit would be lost.)

No Land value to be given for the “excess” land (Beyond Ceiling Limit)

As stated above, under Sec. 112(5A) the claimants will not be entitled (on acquisition of the land) for the compensation for the entire area. It is limited to the following –

  • building or other improvements
  • land occupied by the homestead or hut”
  • any building or other improvements“.

It is true, “exemption” is given to plantation, to hold land over and above ceiling limit. It is only a statutory permission to continue, subject to conditions. It will be lost when it is “fragmented” or the crop is abandoned. As stated elsewhere, it is also most unjustifiable to confer undue rights or benefits to the plantation owners or tenants (majority are BIG Companies) which had not been given to thousands of middleclass property owners whose property had been harshly sized or expropriated under the provisions of the KLR Act.

The Govt. is Entitled Reasonable ‘Rent and Land Tax (for previous leasehold land)

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.

End Notes – 1

Effect of Travancore Govt. Leases after Royal Pattom Proclamations of 1040 and 1061

Now a question arises: What is the impact of ‘Government Land Leases’ (with strict conditions) after 1061 (1886)? Do such leased lands qualify as “estate” under Article 31A of the Constitution?

The legitimate answer is that the lands leased out after 1061 (1886) do not inherit the rights granted by the Pattom Proclamations of 1040 and 1061. If we look at it differently it would mean, or tantamount to say, that the Government cannot ‘lease’ lands after the Proclamations (for, by virtue of the Proclamations it would lose the lease-character at the moment it is made).

In Rev. Fr. Victor Fernandez v. Albert Fernandez (five Judge Bench), 1971 Ker LT 1, AIR 1971 Ker 168 (Per PT Raman Nayar, CJ, T Krishnamoorthy Iyer, P Unnikrishna Kurup, JJ.), concluded that the land covered by the Royal Proclamations of 1040 and 1061 were “estates” falling under Art. 31A of the Constitution. It was on the finding that the Proclamation “secured permanency of tenure”, and “proprietary interest” in the soil. It was observed as under:

  • “7. It is impossible to accept the contention advanced on behalf of the plaintiff in this case that,even after the Proclamation of 1040, the holders of these lands had no proprietary interest whatsoever in the soil and remained tenants in the strict sense of that term, with only the right of enjoyment, the only difference being that they secured permanency of tenure, the Government still remaining the full and absolute proprietor of the soil.”

Therefore, there is a clear difference between leases made before and after the Proclamations, and the rights conferred by the Proclamations do not apply to leases made after them.

End Notes – 2

CAN AN EXEMPTED PLANTATION LAND BE SOLD AS AN ABSOLUTE PRIVATE PROPERTY?

No.

  • Sec. 82 deals with ceiling area. Sec. 83 mandates surrender of excess land. Sec. 85 directs that excess land shall be surrendered to government (accepting the compensation fixed under Sec. 88).
  • But it is not made applicable to the plantations.
  • Sec. 87 mandates that the protection of plantation is available only so long as the plantation subsists.

Exemption does not Confer any vested Right or Ownership

  • If no plantation, plantation lands would also have been treated in the same way – as any other excess land that had been (forcibly) got surrendered by virtue of the KLR Act. The law has given only a sanction to the planters to continue because of the existence of the plantation. Therefore ‘exemption’ does not confer a vested right or ownership.

ACQUISITION OF PLANTATION-LANDS OWNED BY PRIVATE PERSONS

1. Proviso to Article 31A(1) of the Constitution of India

It is plain – No compensation is payable to the land-owners, for the lands ‘above the ceiling limit’, according to the Constitution of India. If any authority gives it, it will be sheer unscrupulous act.

  • The provisions of the KLR Act as regards ‘vesting’‘excess land’ etc. are legislated predicating upon Proviso to Article 31A(1) of the Constitution which states that the State need not pay compensation to the former land owners (when land is acquired) above the ‘ceiling limit‘.
  • Proviso to Article 31A(1) of the Constitution of India reads as under:
    • “Provided further that where any law makes any provision for the acquisition by the State of any estate and where any land comprised therein is held by a person under his personal cultivationit shall not be lawful for the State to acquire any portion of such land as is within the ceiling limitapplicable to him under any law for the time being in force or any building or structure standing thereon or appurtenant thereto, unless the law relating to the acquisition of such land, building or structure, provides for payment of compensation at a rate which shall not be less than the market value thereof.”.

2. Exemption of ‘Plantation’ Does Not Cover Exemption of ‘Plantation LAND’

It is for the following reasons –

  • 1. The exemption is to the ‘plantation’, and not to the ‘LAND‘.
  • 2. Exemption is conditional – for it exists (only) as long as the plantation exists or continues;
  • Because,
    • (a) S. 2(44) defines ‘plantation’ as land used principally for the cultivation of a specific ‘plantation crop‘ like tea, coffee, cocoa, rubber etc.
    • (b) Section 87, Explanation II states that if a plantation for which exemption is given on recognition of a specific ‘plantation-crop’ is converted into any other ‘plantation-crop’ or the plantation activity is not continued, the exemption may be lost; and the land will be taken for considering the ceiling limit.

End Notes

Relevant provisions of KLR Act, in a Nutshell

Section Provisions in a Nutshell
Chap. II 
3(1)
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 Ha. 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.”
22Landlord desiring to resume any land shall apply to the Land Tribunal.
31Fair rent determined by Land Tribunal.
51B. Landlord not to enter on land surrendered or abandoned by the tenant. 
Contravention is made punishable.
54(1)
55
57
57 (3)
57 (6)
61
54(1). A cultivating tenant (to purchase the right) has to apply Land Tribunal.
55. Purchase price is fixed by LT (on fair rent u/s. 31) to be paid u/s. 59
57. The LT after enquiries, pass orders determining purchase price.
(3). The Land Tribunal allows the purchase of the land it determines.
(6). The Land Tribunal forwards  orders to the Land Board.
61. Tenant to pay rent (under orders of LT) pending proceedings.
59When Sec. 54 application is allowed (by the LT), the purchase price (determined u/s. 57 by the LT) shall be deposited with the Land Tribunal to the credit of the Land Board 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. 
72(1) says: Holdings upon which tenanat entilted fixity under sec. 13 vest in govt.
72BCultivating-tenant “shall be entitled to assignment” of land vested in Govt. under Sec. 72 –within ceiling area and get purchase certificate (through LT) (2 years from 1-1-1970). Effect of non-filing (See Balanoor Plantations case. 2018(3) KLT 283.)
72DThe cultivating tenant has to pay the purchase price to the Government on the assignment to him of the right, title and interest of the landowner. (If the extent of land is one hectare or below, he shall not be liable to pay.)
72ESuch a tenant is liable to pay rent to the Govt. for the unassigned land – under Purchase Certificate (E.g., exempted-plantation-land). The Land Tribunal fixes the rent under Sec. 72F(5)(h).
72CProvides 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). 
72KLT shall issue purchase certificate.  It shall be conclusive proof of assignment.
74Prohibition of future tenancies.
Chap. III 
81
Exemption from ceiling and excess for Govt. lands, private forests, plantations, industrial or commercial undertakings, etc.
Proviso – There will be an exemption (as plantation, land given to educational institution, trust, etc.) on Government lands, given under grant, lease, etc.
See: HMT (Machine Tools) Limited v. Taluk Land Board, 2009 (3) KLJ 110; MT Joseph v.  State of Kerala, AIR 1974 Ker 28.
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. (Note:  plantations, industrial area etc. are exempted.)
Apply to tenant also. 1980 KLT 259 (Gopalan Nair Vs. State), 1976 KLT 306  (Thomas Mariamma Vs. TLB), Raghunath Laxman Wani 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.” Raghunath Laxman Wani v. State of Maharashtra, 1971-3 SCC 391, Bhikoba Shankar Dhumal v. Mohan Lal Punchand Tatbed, 1982-1 SCC 680, State of U.P v. Civil Judge, Nainital, AIR 1987 SC 16, State Vs. Puliyangattu, 2008(1) KLJ 571.
84Certain transfers – void.
85(1)Surrender excess.
85(2)Owners and Tenants (having land in excess of the ceiling area) should furnish ceiling return to Land Board before March31, 1971, before the Land Board (including lands exempted under S. 81).
Note: Effect of non-filing: See – Balanoor Plantations case – 2018(3) KLT 283.State of Kerala Vs. Varkey Mathew, AIR 1996 SC 1009.
 According to S. 3(1) (viii), “tenancies of plantations exceeding 30 acres” is exempted from Chapter II. Therefore, the landlord can recover such plantation lands after the period of tenancy. Such landlords also had to file a ceiling return within the time stipulated.
85(3)Excess shall be surrendered.
Note: Tenant must have approached the LT (with respect to each plantation, if he has more plantations) (He cannot declare himself a tenant) It is clear from the following provisions: 54(1) – A cultivating tenant has to apply to LT (or the purchase of right, title and interest.)
55 – Purchase price and fair rent fixed by LT
57 – LT after giving notice and enquiries, pass orders (on the application for the purchase of right, title and interest).
57(3) – LT allots the purchase land it determines.
57(6) – The Land Tribunal forwards a copy of orders to the Land Board. 61 – Cultivating tenant to pay rent (under orders of LT) 59 – The purchase price shall be deposited with the LT (to the credit of the Land Board) and issue of certificate – to cultivating tenant.
It is the principle applied in the Balanoor case. Note: (i) The sub-section (3) itself says as to the settlement of claims for resumption and purchase of the right, title, and interest of the landowner by the cultivating tenant, (ii) LT is the only authority to determine tenancy (Land Board cannot determine it), and (iii) it is clear that even if it is a plantation-exemption-land (beyond ceiling limit), the tenant has to file petition under Section 54 – for fixing Purchase price and fair rent fixed by LT and for allotting the land under section 57(3) and for effecting the payments of ‘rent’ and ‘purchase price’(to the credit of the Land Board)  under sec. 61 and 59.
85(3A)The person bound to file a statement under sub-section (2) (that is, Owners and Tenants – having land in excess of the ceiling area)  shall, within a period of three months from the date of final settlement or purchase, file a statement before the Land Board, and the provisions of the said Sub-section shall, as far as may he, apply in regard to the particulars to be contained in such statement, the calculation of the excess land and for the procedure for the surrender of the same.
85(5)On receipt of the statement under Sub-section (2) or Sub-section (3A), the Land Board shall transfer the statement to such Taluk Land Board and such Taluk LandBoard shall determine the extent and identity of the land to be surrendered.
85(7)Whereon a person fails to file statement under 85(2) or (3A), LB shall intimate that fact to TLB  –  TLB shall determine land to be surrendered. It is obvious – The LB can intimate TLB as to non-filing, on the basis of the records it obtained under Sec. 57(6) and 59. That is, those tenants who are not entitled to get a purchase certificate also has to file an application under Sec. 54(1) and 85(2) or (3A). 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, suo motu, 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. and Taluk 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 exempted land for 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 the portion that exceeds the ceiling limit. (Mathew K Jacob v. District Environmental Impact Assessment Authority, 2018-4 KLT 913)

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