R.V.RAVEENDRAN, J. - (1.) C.A. No.6599/2002 is filed by Matha Nagar School, Cochin, (for short 'the School') where the issue involved is the validity of a demand for Rs. 76,48,237/- by the Greater Cochin Development Authority (`GCDA' for short) towards the cost 50.44 Ares of of land delivered by GCDA to the school. C.A. No.6600 of 2002 is filed by GCDA against the judgment dated 23.1.2001 passed by a Division Bench of the Kerala High Court allowing the writ petition (O.P. No.8749 of 1995) filed by the Matha Nagar School and declaring that the acquisition notification dated 11.4.1987 issued by GCDA under section 4 of the Land Acquisition Act and consequential proceedings including the award, are not binding on the 50.44 Ares of land allotted to the school by GCDA. As the two appeals have common issues and are inter-linked they are heard and disposed of by this common judgment.
(2.) ONE T.V.Joseph was the owner of land bearing survey No.330/1 (subsequently numbered as Sy.No.330/4 of Elamkulam) measuring a little less than an hectare (97.91 Ares) adjoining the Matha Nagar Church and school. In view of the land use being freezed under the 'Elamkulam Road Scheme', he was finding it difficult to put the land to optimum use. He was also in urgent need of funds for his family needs. He therefore wrote a letter dated 4.8.1981 requesting the GCDA to purchase his land excluding the portion occupied by his residence and give him the market price therefor. GCDA on considering the said request made an order dated 11.12.1981 accepting the proposal and agreed to purchase the said land (which had been approximately valued at Rs.2,59,975/-) and authorized its Special Tehsildar (LA) GCDA to take advance possession of the land and pay him Rs.1,25,000 as advance on account. Accordingly possession was taken on 14.12.1981. The school which was functioning near the said land was in urgent need of additional land for its expansion. Therefore it requested GCDA to allot them an extent of one and quarter acre out of the said land. The GCDA Board considered the request and resolved on 28.2.1982 to transfer 1 acre 24.541 cents to the school. In pursuance of it, the Planning Committee of GCDA at its meeting on 17.12.1983 decided to sell the said extent of land to the school without any kind of development on the following conditions : (a) the possession of the land would be transferred on payment of a provisional sum subject to final determination of the value; (b) the sale deed would be executed only on payment of full consideration; (c) the provisional value of the land to be sold to the school was Rs.8000 per Are for the dry land portion and Rs.5000 per Are for the wet land portion; and (d) the School should pay an additional amount to be determined by GCDA subsequently as its profit. Thereafter, the Board of GCDA passed a resolution on 31.3.1984 approving the proposal by the Planning Committee to sell the said extent of land to the school. It directed that the provisional amount to be collected will be subject to final determination and the School should pay 50% of the land cost determined by LAO as additional amount. The School sent a letter dated 5.4.1984 to GCDA confirming that it was agreeable to pay the cost of acquisition plus 50%. In pursuance of the above, the GCDA sent a communication dated 17.4.1984 to the school informing that 1 acre 24.541 cents of land was allotted to it subject to a provisional payment of Rs.310000, the actual value to be determined on completion of land acquisition proceedings. It was made clear that the sum of Rs.3,10,000/- was not to be considered as the final land value and no sale deed will be executed until the land value was fixed and the full amount is paid. It was also informed that the decision of the Board fixing the sale price would be final and if the amount paid by the School, was not sufficient, it may recover the balance amount by having resort to revenue recovery proceedings. In pursuance of it, the school paid Rs.3,10,000/- to GCDA on 7.5.1984 and took possession of the land, which was confirmed by issue of a possession certificate by GCDA on 9.5.1984. Gcda however did not finalize the full price payable to to T. V. Joseph. It is stated that though proceedings were initiated under the Kerala Land Acquisition Act (which contained special provision for award based on private agreement). Gcda did not proceed further in the matter. When matters stood thus, T.V. Joseph died, his legal representatives/successors (hereinafter referred to as the "land owners") started interfering with the possession of the School, apparently on the ground they had not received the full consideration for the land from Gcda. Therefore the school by letter dated 15.2.1985 requested the Gcda to pay the balance sale price to the landowners. That was not done. The land owners filed a suit (O.S. No.436/1985) for getting back the land as the payment was not made. They also filed a writ petition (OP No.9445/1985) seeking a direction to Gcda to return the land to them and for declaring the Ernakulam Town Planning scheme with reference to which the said land was taken, to be inoperative and void. A learned Single Judge of the High Court by order dated 21.10.1985 dismissed the writ petition holding that the land owners had delivered possession of the land to Gcda on receiving a part of the compensation and therefore the landowners were entitled to only payment of balance of the compensation and not for return of the land. The writ appeal filed by the landowners was also dismissed on 10.1.1986 and attained finality.
(3.) EVEN thereafter GCDA did not arrive at any settlement with the land owners. On the ground that the proceedings initiated under the Kerala Land Acquisition Act relating to the acquisition of the land had lapsed in September 1986, fresh proceedings were initiated for acquisition by issue of a notification under section 4(1) of the Land Acquisition Act, 1894 ('LA Act' for short) by the state government at the instance of GCDA. It was followed by a final declaration (gazetted on 16.8.1988) under section 6(1) of the LA Act and an award was made valuing the land at Rs. 19150/- per Are for dry land and Rs.5530/- per Are for wet land. Not being satisfied the landowners sought reference to the civil court and the reference court by award dated 31.1.1991 determined the compensation as Rs.13500 per cent in regard to 0.1906 hectares of dry land and Rs.12,000 per cent in regard to 0.7885 hectares of wet land. The reference court also awarded 30% solatium on the enhanced land value and 9% interest from 24.12.1981 to 23.12.1982 and thereafter at 15% per annum. The reference court denied additional compensation under section 23(1A) of LA Act. The award of the reference court was challenged by the State Government in LAA No. 852 of 1992 and the High Court by judgment dated 24.5.2001 modified the award by fixing the land value as Rs.10500 per cent uniformly for both dry and wet lands with interest as awarded by the reference court. The High Court upheld the award of solatium, but denied interest on solatium. In the meanwhile, on the basis of the compensation determined by the reference court, GCDA made a demand on the school on 5.1.1993, stating that a sum of Rs.52,16,060.12 was due towards the land cost with solatium and interest, and after deducting a sum of Rs.3,10,000 already paid by the school, balance due was Rs.49,06,065.02 and on adding Rs.26,08,032.50 (50% of Rs.52,16,065/) towards the profit of GCDA the total amount due was Rs.75,14,097.52 and called upon the school to pay the same. The school sent a reply dated 18.2.1993 contending that the land had been acquired from the land owner at an agreed price of Rs.4500/- per Are for dry land and Rs.2500/- per Are for wet land and therefore it was only liable to pay the value on that basis and therefore, the demand was illegal and invalid. Thereafter a revenue recovery notice dated 23.4.1993 was sent claiming payment of Rs.73,73,616/- followed by another notice dated 28.7.1993 demanding Rs.76,48,237/-. Feeling aggrieved the school filed a writ petition (O.P. No.13813/1993). A learned Single Judge of the High Court dismissed the petition by order dated 15.6.1994. He held that the school had agreed to pay the enhanced amount as determined by GCDA and a public development authority like GCDA could not be expected, after paying the market price determined by the court to the land owner, to receive only a small portion thereof from the allottee. He therefore held that the school was liable to pay the amount demanded. The said decision of the learned Single Judge was challenged in W.A.No.1204/1994 which was dismissed by judgment dated 21.10.1994, subject however to an observation that if there was any error in calculation of the amount claimed by GCDA, the school may get the amount checked by GCDA and pay only the actual amount due. The said judgment is challenged by the school in CA No.6599/2002.;