Do the Plantation-Tenants have the Right to Seek ‘Assignment’ of the Entire Plantation-Tenancy-Land (under Purchase Certificates)?

Are Such Tenants Entitled for Full Compensation if the Land is Acquired?

‘No’ is the Answer.

Saji Koduvath, Advocate, Kottayam

Contents in a Nutshell

  • 1. Title/ownership of unassignedexempted-plantation-land is vested with the Government, under Section 72(1) of the Kerala Land Reforms Act.
  • 2. Because of the Exemption (Section 81) and Fixity (Section 13), the tenant can continue the plantation activity therein.
  • 3. But the tenant has to pay the ‘Rent’ to the Government (Section 72E) for the unassignedexempted-plantation-land vested in Government under Section 72.  The rent is fixed by the Land Tribunal [Section 72F(5)(h) ].
  • 4. Because of the restrictions in Section 72B(1)(a) and (b), a tenant cannot obtain Purchase Certificate (and become the land-owner) for more extent than the ceiling limit (stipulated under Section 82).
  • 5. When land vested in Government under Section 72 is acquired, by virtue of Section 112(5A), land-value will not be given to the land-owner or the tenant.
  • 6. The exemption for plantation will be lost when it is “fragmented” or the plantation-crop is abandoned (under Section 87).

Relevant Provisions of Law

  • 1. Section 72(1), Kerala Land Reforms Act, 1963: All right, title and interest of the land-owners held by cultivating-tenants as on 1.1.1970 entitled to fixity of tenure under Section 13 shall vest in the Government.
  • 2. Section 72B: It deals with “cultivating tenants’ right to assignment” (of the land vested in Government under Section 72).  Sub Section 1(a) and (b) of this Section direct that the assignment should be within the ceiling limit (mentioned in Section 82).
  • 3. Section 72C: It deals with assignment of land, where the cultivating-tenant has not made application under Section 72B. All provisions of Section 72B, except sub section 3, are made applicable to Section 72C.  The opening words of Section 72C (“notwithstanding anything contained in sub Section 3 of Section 72B”), indicate the nexus between Section 72B and Section 72C.  Therefore, the purchase certificate can be issued, within ceiling limit alone, under Section 72C, as in the case of Section 72B.
  • 4. Section 72E: As stated above, tenancy-lands vest in the Government, under Section 72. The tenants (under Government) of unassigned-exempted-plantation-land, etc., are liable to pay rent to the Government for the unassigned (over and above the ceiling limit).
  • 5. Section 72F(5)(h):Land Tribunal fixes the rent for the said unassigned–exempted-land (under Section 81) .
  • 6. Section 87(1) and its Explanations I and II: Only a limited right to continue; and, fragmentation is prohibited.  The specified plantation-crop alone is permitted.  The exemption is given subject to the condition – not to “convert” the land for any other use.
    • In case the land is ‘converted’, the exemption-benefit would be lost, and the exemption may be withdrawn under Explanation II of Section 87(1).  
  • 7. Section 112 (5A)On acquisition, the cultivating tenants are entitled to compensation for improvements (only) for the land vested in the Government under Section 72.
  • 8. Section 112 (5A)(a):The compensation for any building or other improvements  belonging to the land-owner shall be awarded to the Government.
  • 9. Section 112 (5A)(b):The balance-compensation remaining after deducting the amount 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.
  • 10. Proviso to Article 31A(1) of the Constitution of India: The State need not pay compensation to the land owners (when land is acquired) above the ‘ceiling limit‘.
    • The provisions of the KLR Act, in this regard, are legislated following this proviso in Article 31A(1). It goes without saying – if no compensation is payable to the land-owners above the ceiling limit, it need not be given to tenants.

Legal Right Conferred by the Statute
From the above, it is clear:

  • The unassigned land allowed to be occupied by a tenant (over and above the ceiling limit for which the tenant is liable to pay rent to the Government under Section 72E) can be termed as a “Legal Right conferred by the Statute”.   It is not an absolute right that is conferred to some, including the BIG plantation tenants.

The Policy of the KLR Act
Section 83, lays down 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 v. Puliyangattu, 2008(1) KLJ 571).

Unjustifiable to Confer Undue Benefits to Tenants
Under Section 72A and Section 88, meagre compensation is paid to the land owners on vesting landlords’ rights in the Government and on surrendering the surplus land.  It is most unjustifiable to confer undue rights or benefits on the tenants or lessees (which is not given to the land owners) when their lease-hold-lands are acquired (the majority of such plantation-lessees are Companies).

Lands of the Maharaja of Travancore were taken

It is a matter of record that even the lands of the Maharaja of Travancore—191 acres situated within Thiruvananthapuram City,  far in excess of the statutory ceiling of 7.5 acres—were taken over pursuant to the orders of the Land Board, Thiruvananthapuram, vide Order No. LB(B)2-18919/70 dated 15-01-1972. Equally, it is an indisputable fact that thousands of middle-class landowners were subjected to the rigour of the Act, and their excess lands were taken by the force of law.

  • Therefore, it would be wholly unreasonable to contend that the Legislature intended to confer any special or undue benefit upon plantation-tenants (benefits which were not extended even to the Maharaja of Travancore, to middle-class landowners, and to other categories of tenants governed by the Act).

Any interpretation that elevates plantation-tenants to a privileged class, beyond the plain limits imposed by the statute, would be contrary to the scheme, object, and egalitarian ethos of the Kerala Land Reforms Act.

Section 72, KLR Act – ‘Vesting of Ownership’ in Government

Section 72 of the Kerala Land Reforms Act speaks about ‘vesting of landlord’s rights in Government’.  It pertains to –

  • All right, title and interest of the land-owners and intermediaries … and in respect of which  certificates of  purchase… have not been issued, shall …. vest in the government”.

Fixity of Tenure and Assignment under Kraya Certificate

Section 13 of the KLR Act, which declares Fixity of Tenure to the cultivating tenants, is dealt with under Chapter II that governs tenancies; whereas the provisions of ceiling (Section 82 and Section 83) come under Chapter III that governs restriction on ownership, ceiling area, etc.  (Section 83 restricts holding land, excess of ceiling limits prescribed under Section 82.)

  • Fixity of tenure is assured in Section 13(1) “notwithstanding anything to the contrary contained in any law, custom, usage of contract, etc.”
  • The Fixity of Tenure (laid down under Section 13) is not controlled by the ceiling provisions  in Section 82 and 83. 

But, restriction is clearly made mention of in Section 72B when right of assignment is declared.  Therefore, land cannot be assigned under Section 72B and 72C, by the Land Tribunal, by purchase Certificates, over and above ceiling limit.

  • In sum, though a plantation-tenant will definitely have right of ‘fixity’, those tenants will not have the right of assignment (under Section 72B and 72C) over and above ceiling limit.

Tenants have to approach Land Tribunal before initiating proceedings before Land Board.

Section 85(3) of the KLR Act requires the tenants who seek benefit of plantation-exemption to approach (within the stipulated time) the Land Tribunal for (i) settling the claims for resumption (with the land-owner) and (ii) for purchasing the right, title and interest under Section 72B.  

  • It is beyond doubt – the excess land in possession of a tenant (other than the tenants entitled for exemption under Section 81) has to surrender the excess. 

The Land Tribunal being the only authority to deal with tenancy in this regard, and one cannot declare himself to be a tenant, the tenants have to approach the Land Tribunal under Section 85(3) before approaching the Land Board (for getting declared the benefit of exemption).

Note: As stated above, the entire tenancy-land being vest with the Government under Section 72, the exempted-plantation-tenants (having lease-land above ceiling limit), will be the tenants under Government liable to pay rent under Section 72E.

Glen Leven Estate v. State of Kerala, 2022 (4) KHC 97.

Following were the basic factual situation in Glen Leven Estate (P) Ltd. v. State of Kerala (supra)  –

  • The land was leased out by landlords.
  • The lease-rights came in the petitioners (cultivating tenants) by transfer.

Following were the rival claims raised by the parties.

Contention of the Government

  • The tenant was a cultivating tenant. The land (absolutely) vested in the Government under Section 72 KLR Act.
    • Hence, tenant would be entitled to get compensation for the improvements (alone) to be determined under the Kerala Compensation for Tenants Improvements Act, 1958, in view of Section 20(1) of the KLR Act.

Contention of the Tenants

  • cultivating tenant has absolute right to seek assignment (subject to the payment of purchase price in contemplation of Section 72D). Therefore, vesting of rights in the Government under Section 72 is a legal fiction.

Claim of Land-Owners

  • In view of Section 3(i)(viii), if the extent of the plantation is above 30 acres, and if the land was a plantation (put up by the land owner) when it was leased, the tenant will not be entitled for ‘fixity’; and the land will return to the land owner after the lease-period.  Therefore, the land owners (in one Writ Appeal) claimed that the land involved therein was such a land entitled to by them (after the lease period).
  • Land owners also claimed that Section 72BB(1) gives them a right (i) to apply for assignment to the tenant and (ii) for the payment of the compensation due to him under Section 72A (as regards the property within ceiling limit).

The Division Bench Finding on Vesting Under Section 72

  • The contention of the Government that the land was (absolutely) vested upon it was rejected and held –
    • 1. the vesting in Government ‘is a legal fiction‘.
    • 2. cultivating tenant ‘has an absolute right to seek assignment‘ subject to the payment of purchase price.

The Division Bench observed as under:

  • “41. On an indepth analysis of the aforesaid provision, we find that when Section 72 came into force on 01.01.1970, the cultivating tenant is entitled for the assignment of the land for possession, subject to the liabilities fixed under Section 72 of the Act, 1963 to pay the purchase price. As per Section 72C, if no application is filed by the cultivating tenant, the Land Tribunal shall subject to the Rules made by the Government ensure that the assignment is granted to the cultivating tenant, assigning such title and interest to the cultivating tenant entitled thereto, which rights, title and interest are vested with the Government by virtue of the legal fiction created under Section 72 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.”

Tanya Alice Stephen v. Manager, Perumal Smaraka Nidhi, 2025:KER:97401

In this case, the High Court held on 17.12.2025 to the following effect:

  1. Under Ext, P3, the Land Tribunal “restricted the purchase certificate to an extent of 12 acres and has rejected the claim regarding the balance extent out of 94.54 acres.
    1. The HC directed the Government on 18.3.2024 to file an affidavit “by the person who authored Ext. P3 explaining and referring to the reasons as to why the earlier decision of the Land Tribunal affirmed in the judgment of the Sub Court, the judgment of the Division Bench of this Court and the Apex Court was not followed….”
    1. Though a counter affidavit was filed “the affidavit does not explain why the relief was restricted to 12 acres”
    1. It is stated in the affidavit that “the attempt to obtain purchase certificate is an attempt to defeat the KLR Act and to alienate the land vested in the Government and not to pay rent under Section 72E.
    1. The High Court observed “no such contention is available to the respondents in view of the categoric finding of this court that the lessees under …….Pillai are entitled to fixity of tenure”; and that “there is no explanation as to why the finding of this court affirmed by the Supreme Court have not been followed…..”.

The High Court failed to advert to the following vital aspects:

  1. Assignment effected under a purchase certificate issued by the Land Tribunal is statutorily independent of the concept of ‘fixity of tenure’. The two operate in distinct fields and cannot be combined.
  2. Sections 72B and 72C of the Act explicitly mandate and regulate assignment, and unambiguously recognise that such assignment must be confined to land below the ceiling limit. Any interpretation to the contrary runs directly counter to the express statutory scheme.

The Line of Reasoning Put Forward in the above decisions is Inappropriate.  

The interpretative approach adopted by the Bench (“an absolute right is vested with him to seek assignment subject to the payment of purchase price in contemplation of Section 72D”) appears to be inappropriate; because–

  • Section 72B spells out that the Purchase-Certificate can be given within the ceiling limit alone.

Plantation holdings typically extend to hundreds or thousands of acres, of which the assignable extent within the ceiling may be a negligible fraction (7.5 or 15 acres). The statutory right of assignment, therefore, cannot be extended to the vast excess land.

The High Court failed to consider the Earlier Decisions

  • In K. Jayaprakashan v. State of Kerala, 2023-3 KLT 541, it is observed as under:
    • “Section 72 of the Act deals with vesting of landlord’s rights in Government. As per sub-section (1) of Section 72 ….  all right, title and interest of the landowners and intermediaries in respect of holdings held by cultivating tenants (including holders of kudiyiruppus and holders of karaimas) entitled to fixity of tenure under Section 13 … 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 on the said date”.
  • In V.N. Narayanan Nair v. State of Kerala (P.T. Raman Nayar, T.C.Raghavan, K.K.Mathew, JJ.) , AIR 1971 Ker 98, it is held as under:
    • “By Section 72 the rights of landlords whose rights have not been purchased by cultivating tenants vest in the Government free of all encumbrances on a date to be notified by the Government in that behalf -the date has been notified as the 1st January, 1970”
  • In Lakshmi v. Rama Iyer, 1992-1 ILR-Ker 398; 1991-2 KLT 897it is pointed out: “Consequently the title and interest of the land-lord would vest in the Government on the appointed day that is, on 1-1-1970. Then as per S. 72Q the land owner would be entitled to recover rent accrued till 1-1-1970 only”.
  • In Aru v. Nakunni (Padmanabhan, J.), 1987-1 KLT 177, it is held as under:
    • “Under S.72 of the Act all the right, title and interest of the land owners and intermediaries in respect of a holding held by a cultivating tenant entitled to fixity of tenure under S.13 shall, subject to the various provisions of S.72, vest in the Government free of all encumbrances created by the land owners and intermediaries and subsisting on the date notified by the Government. ….. When once vesting has taken place there cannot be any further rights in any body. …. By assignment all such rights vest in the tenant”.

Land Reform Wearied Middle Class landlords and tenants

When Land Reform Measures were implemented in the State of Kerala, it wearied small and moderate landlords and tenants, on the bedrock of “ceiling limit”.  But the Plantations were not “touched”, taking “the economy” into consideration.  Still, the well-visioned legislators were particular to see that the ownership of this large extent of plantations (otherwise thick forest of the Western Ghats) remained with the State.  It was based on the principles in 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’.

Conclusion

1. The exemption provisions confer only a limited and conditional right—namely, the right to continue the specified plantation crop alone. Upon conversion of the land or deviation from the permitted use, the exemption will be forfeited, and the land will become fully subject to the statutory regime.

2. It can be stated with legal certainty that:

  • (i) Where the landowner himself has no vested or proprietary right over land held beyond the ceiling limit, a tenant cannot claim any such right. To hold otherwise would be illogical, irrational, and contrary to settled principles of property law, as a tenant cannot acquire a higher or superior right than that of the landowner.
  • (ii) Statutory interpretation, particularly when constitutional principles are implicated, must advance the larger public interest, including the interests of the nation and future generations, and not operate to confer benefits on a select class.
  • (iii) It is wholly unjustifiable to confer disproportionate rights or benefits upon plantation tenants—many of whom are large corporate entities—when even the Maharaja of Travancore was denied retention of land beyond the ceiling limit. It is a sheer fact that thousands of middle-class landowners were divested of their lands under the rigorous operation of the Act.

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