CHIEF DIVISIONAL MANAGER Vs. STATE OF KERALA

JUDGEMENT

(1.) Whether a commercial tenant who is entitled to fixity of tenure under section 106 of the Land Reforms Act is entitled to compensation awarded when leased premises are acquired by the Government and if so what is the ratio of compensation to be fixed while apportioning compensation are the question to be decided in this case.

(2.) An extent of 214.23 sq.meters of land in Thalassery Municipality was acquired by the Government for widening of the road. Award was passed on 31.10.1991 and a sum of Rs.113758/- was awarded as compensation. Land acquired was part of a retail outlet of petroleum product Bharat Petroleum Corporation Limited, the appellant herein. The outlet was situated in the heart of the town. Therefore they claimed that since they are having fixity of tenure, they are entitled to 75% of the compensation. Question to be considered in this case is the extent of the right to receive compensation by a commercial lessee who is entitled to fixity of tenure under Section 106 of the Land Reforms Act, when leased premises are acquired by the State. In other words, how compensation awarded should be apportioned between landlord and permanent commercial tenant. The learned Acquisition Officer did not apportion the compensation; but reference was made to the Civil Court under Section 30 of the Land Acquisition Act.

(3.) Appellant/lessee has constructed and installed sales room, store room, etc. in the leased premises. The cost of the above construction was also determined by the land acquisition officer. According to the appellant, they are entitled to 75% of the compensation awarded for land as they are entitled to fixity of tenure. Even though the reference court found that the appellant has got fixity of tenure, they are only entitled to 1/8th (7 share to the land lord and one share to the appellant) share of compensation. This is questioned by the appellant herein.