High CourtsSingle Bench(2021) 05 KL CK 0157

M/S. Melmont Constructions Pvt Ltd And Ors vs State Of Kerala And Ors

High Court Of Kerala · Decided on 17 May 2021

HON’BLE JUDGES
P.B. Suresh Kumar, J
CASE NUMBER
Writ Petition (C) No. 3381, 6495 Of 2021

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Judgment

154 paragraphs · 3,595 words
1.

Issues arising for consideration in these matters are closely interlinked and they are, therefore, disposed of by this common judgment. Parties and

documents are referred to in this judgment, as they appear in W.P.(C) No.3381 of 2021.

2.

The facts relevant for adjudication of the issues are the following : Petitioners are real estate developers. They own lands in Vazhakkala Village

within the limits of Thrikkakkara Municipality (the Municipality). A portion of the lands owned by the petitioners is shown in the revenue records as

'Nilam' and the rest as 'Purayidom'. The lands were purchased by the petitioners for the purpose of promoting jointly a residential/commercial project

prior to the implementation of the Kerala Municipality Building Rules, 1999 within the limits of the Thrikkakkara Panchayat, which was later upgraded

as Thrikkakkara Municipality. As such, after acquiring the lands, the first petitioner applied to the Panchayat for a No Objection Certificate for the

project proposed by the petitioners and on the said application, Ext.P2 certificate was issued by the then Thrikkakkara Panchayat on 23.8.2006 stating

that since the Kerala Municipality Building Rules, 1999(wrongly shown as Kerala Building Rules, 1984) have not been enforced within the limits of the

Panchayat, permission of the Panchayat is not necessary for the construction proposed by the petitioners. It was, however, stated in the certificate

that there shall not be any construction within three meters from the boundaries of the adjoining public roads and that there shall be adequate drainage

facilities for the building. It is stated by the petitioners that on the strength of Ext.P2 certificate, they have commenced construction of the building and

completed the piling works and a portion of the columns of the building. While so, on 1.9.2008, the Village Officer issued Ext.P6 stop memo to the

petitioners stating that the construction undertaken by the petitioners is contrary to the provisions of the Kerala Land Utilization Order, 1967 (KLU

order) and therefore, they shall not proceed with the construction without obtaining orders from the competent authority under the KLU order.

According to the petitioners, the lands owned by them fall under residential zone in terms of the structural plan of Central Cochin City sanctioned by

the Government under the Town Planning Act, 1108 M.E. and therefore, permission under the KLU order is not necessary for utilizing the same for

constructing a building for residential purpose. The petitioners, therefore, challenged Ext.P6 stop memo before this court in W.P.(C) No.9156 of 2010

and the said writ petition was allowed and Ext.P6 stop memo was quashed holding that KLU order is inapplicable to the area to which the Town

Planning Scheme has been implemented. Ext.P11 is the judgment in the said case. It was however, made clear by this court in Ext.P11 judgment that

the petitioners shall obtain building permit in terms of the Kerala Municipality Building Rules for resuming the work as the Kerala Municipality Building

Rules, 1999 have been implemented within the limits of the erstwhile Thrikkakkara Grama Panchayat with effect from 6.11.2006.

3.

It is stated by the petitioners that though there was no impediment for the petitioners to proceed with the construction proposed by them in the light

of Ext.P11 judgment after obtaining building permit from the Panchayat, with a view to avoid further legal issues in the course of construction, they

have preferred an application before the District Collector requesting orders for construction of the building in the lands which are classified in the

revenue records as 'Nilam'. The said application was disposed of by the District Collector holding that if the lands owned by the petitioners are not

included in the data bank prepared under the Kerala Conservation of Paddy Land and Wetland Act, 2008 (the Act), they are at liberty to carry on the

construction subject to other statutory requirements. Ext.P12 is the communication issued by the District Collector to the petitioners in this regard on

18.6.2011. It is stated by the petitioners that thereafter, they have preferred an application before the concerned Tahsildar, viz, the eighth respondent

for changing the classification of the lands referred to in Ext.P12 communication. Ext.P14 is the application preferred by the petitioners in this regard.

Ext.P14 application has been rejected by the eighth respondent stating that there is no provision of law enabling him to change the classification of the

lands requested for by the petitioners.

4.

It is stated by the petitioners that due to unfavourable market conditions, the petitioners were unable to pursue the project for quite some time.

Later, during 2018, when they decided to proceed with the project, they preferred an application under Section 6A of the Kerala Land Tax Act, 1961

seeking orders for re-assessment of the lands. Ext.P21 is the application preferred by the petitioners in this regard. According to the petitioners, since

the lands owned by them as referred to in Ext.P17 notice are not included in the data bank prepared under the Act either as paddy land or wetland

and since the provisions of the KLU order do not apply to such lands, in the light of the decision of this court in Local Level Monitoring Committee

Constituted under Section 5 of the Kerala Conservation of Paddy Land and Wetland Act 2008 in Kizhakkambalam Grama Panchayat v. Mariumma,

2015(2) KLT 516 that when the classification of the lands are changed, there has to be a fresh assessment of the lands under the Kerala Land Tax

Act and appropriate additional entries need to be made in the Basic Tax Register relating to the lands, there cannot be any impediment in reclassifying

the lands in the revenue records. It is also the case of the petitioners that if the project is implemented without changing the classification of the lands,

there would be future legal issues which would adversely affect the smooth implementation of the project. W.P.(C) No.3381 of 2021 is instituted

alleging that Ext.P21 application is not being considered by the competent authority under the Kerala Land Tax Act. The prayer in the writ petition is

for a declaration that the petitioners are entitled under Section 6A of the Kerala Land Tax Act, 1961 to get an appropriate additional entry made in the

Basic Tax Register showing the present tenure of the land and pay tax accordingly.

5.

In the meanwhile, the petitioners preferred an application before the Municipality for building permit to resume the construction as directed in

Ext.P11 judgment. On the said application, the petitioners have been issued Ext.P17 notice by the Municipality stating that the application preferred by

the petitioners for building permit can be considered only if they produce either permission for utilization of the lands under the KLU order or under

Section 27A of the Act. W.P.(C) No.6495 of 2021 is instituted by the petitioners later seeking a direction to the Municipality to process the application

preferred by them for building permit on which Ext.P17 communication has been issued to them, without insisting compliance of Section 27A of the

Act.

6.

Heard the learned counsel for the petitioners as also the learned Additional Advocate General.

7.

The learned counsel for the petitioners pointed out, placing reliance on Ext.P7 communication issued by the Senior Town Planner, that the lands

owned by the petitioners are falling under residential zone in terms of the structural plan of Central Cochin City sanctioned by the Government under

the Town Planning Act, 1108 M.E. According to the learned counsel, the KLU order, or for that matter Section 27A of the Act does not, therefore,

apply to the lands of the petitioners. The learned counsel has relied on the decisions of this Court in Reliance Industries Ltd. v. Commissioner of Land

Revenue, 2007 (2) KLT 850, Antony Jayan v. State of Kerala, 2015 (4) KLT 370 and Shaji Chacko v. State of Kerala, 2020 (6) KLT 606, in support

of the said contention. It was also argued by the learned counsel that at any rate, in the light of Ext.P11 judgment of this court, the Municipality or for

that matter, the revenue officials cannot insist the petitioners to obtain permission under the KLU order or under Section 27A of the Act for obtaining

building permit or for seeking change of classification of the lands in the revenue records. It was also submitted by the learned counsel that the

petitioners have in fact preferred an application before the District Collector seeking permission to put up the building proposed by them in the lands

even after securing Ext.P11 judgment and the said application was disposed of by the District Collector as per Ext.P12 order granting liberty to the

petitioners to put up the building proposed by them in the lands if the same are not included in the data bank either as paddy land or wetland, after

obtaining building permit for the same from the local authority. It was pointed out by the learned counsel that the lands of the petitioners which are

classified as 'Nilam' in the revenue records are not included either as paddy land or wetland in the data bank prepared under the Act. It was also

pointed out by the learned counsel that it was long thereafter that Section 27A was introduced in the Act. According to the learned counsel, in the

aforesaid circumstances, the Municipality is not justified in insisting compliance of Section 27A of the Act for the purpose of processing the application

for building permit submitted by the petitioners. Similarly, it was also argued by the learned counsel that in the light of Ext.P12 order of the District

Collector issued as early as on 18.06.2011, granting liberty to the petitioners to utilise their lands for construction of the building proposed by them, the

competent authority under the Land Tax Act is bound to reassess the land and make appropriate additional entries in the revenue records as to the

present nature of the land.

8.

Per contra, the learned Additional Advocate General has taken strong exception to the contention raised by the learned counsel for the petitioners

that KLU order does not apply to an area which is categorised as residential zone as per the structural plan of the city. Similarly, the learned

Additional Advocate General has also taken strong exception to the contention raised by the learned counsel for the petitioners that Section 27A of the

Act does not apply to an area which is categorised as residential zone as per the structural plan of a city. I am not adverting to the various reasons

stated by the learned Additional Advocate General to justify the aforesaid stand as I find it unnecessary to go into the said questions for redressing the

grievance of the petitioners.

9.

As noted, the building project of the petitioners is one proposed by them within the limits of the erstwhile Thrikkakkara Grama Panchayat at a point

of time when the Kerala Municipality Building Rules, 1999 have not been enforced in the Panchayat. It is not disputed that the practice prevailing at

the relevant time for construction of buildings in the Panchayat was to obtain Certificates in the nature of Ext.P2 from the Panchayat. As noted, the

petitioners have obtained Ext.P2 Certificate from the Panchayat for the building proposed by them. The materials on record indicate that the

petitioners have obtained other necessary permissions and licences required for construction of the building also from the authorities concerned.

Ext.P6 stop memo dated 01.09.2008 would show that on the strength of Ext.P2 Certificate, the petitioners have constructed a compound wall around

the lands and commenced the construction of the building proposed by them. Ext.P3 series photographs and Ext.P15 report of the Village Officer

would show that the petitioners have completed the piling works of the building and also started erecting the columns of the building. Ext.P15 report of

the Village Officer would also indicate that the lands where the petitioners propose the building which are shown as 'Nilam' in the revenue records

have been converted long back and the same are not shown as paddy land or wetland in the data bank prepared under the Act. The case of the

petitioners needs to be considered in the light of the aforesaid facts.

10.

As noted, insofar as the lands of the petitioners which are shown in the revenue records as 'Nilam' were converted long prior to the

commencement of the Act, construction of a building therein prior to the Act with the permission of the local authority and other statutory bodies

cannot be said to be an unlawful act [See Aishabeevi v. Superintendent of Police, 2014 (3) KLT 1078]. The construction activity undertaken by the

petitioners was though interrupted by the Village Officer as per Ext.P6 stop memo, the same was quashed by this Court as per Ext.P11 judgment. Of

course, the said decision of this Court was on the premise that the KLU order does not apply to an area shown as residential zone in the structural

plan of the city sanctioned under the Town Planning Act. Ext.P11 judgment has become final and binding inter parties. As noted, in terms of Ext.P11

judgment, this Court directed the petitioners to obtain building permit for the construction proposed by them, as by the time the Kerala Municipality

Building Rules, 1999 came to be implemented in the Panchayat. As such, in the light of Ext.P11 judgment, the Municipality which is the successor of

the then Thrikakara Panchayat cannot insist the petitioners to obtain permission of the competent authority under the KLU order, even if the same

applies to the land owned by the petitioners.

11.

The next question is as to whether the Municipality is justified in insisting compliance of the provision contained in Section 27A of the Act for the

purpose of processing the application submitted by the petitioners for building permit. Sub-section (1) of Section 27A of the Act which makes it

obligatory for obtaining permission to utilise the lands which are shown in the revenue records as paddy land or wetland, but not shown as paddy land

or wetland in the data bank prepared under the Act, reads thus:

27A. Change of nature of unnotified land. - (1) If any owner of an unnotified land desires to utilise such land for residential or commercial or for other

purpose, he shall apply to the Revenue Divisional Officer for permission in such manner as may be prescribed. As evident from the extracted

provision, the permission provided for therein needs to be obtained only by an owner of such a land who desires to utilise the same for residential or

commercial or other purposes. Section 27A of the Act which is introduced with effect from 30.12.2017 cannot have any retrospective operation and

the same cannot be applied to a land which has already been utilised for other purposes. It is so held by this Court in Global Educational Trust v. State

of Kerala, 2020 (6) KLT 738. The construction proposed by the petitioners in the land which was commenced about a decade prior to the introduction

of Section 27A is not over cannot be a reason at all for insisting compliance of the said provision. In other words, Ext.P17 notice issued by the

Municipality to the petitioners stating that the petitioners have to obtain permission of the competent authority under Section 27A of the Act is

unsustainable in law.

12.

The remaining issue is as to the right of the petitioners to claim change of classification of the lands in the revenue records. In Revenue Divisional

Officer v. Jalaja Dileep, 2015(1) KLT 984(SC), the Apex Court has held that if a land which is classified in the revenue records as 'Nilam' is not

included in the data bank prepared under the Act as paddy land, permission of the competent authority under the KLU Order is required for making

use of the same for other purposes. It was also held by the Apex Court that the nature of the land cannot be changed or converted by directing

changes in Basic Tax Register which is maintained only for the purpose of the land tax. In Mariumma, it was however clarified by a Division Bench

of this court subsequently that if on the commencement of the Act, a land to which KLU order applies was not included in the data bank, conversion

of its status can be made only based on an order passed by the competent authority under the KLU order; that if an order is passed by the competent

authority under the KLU order changing the user of the land, such a change in the user of the land would render the assessments already made under

Section 6A of the Kerala Land Tax Act redundant and that therefore, what is called for in a situation of this nature is a fresh assessment in

accordance with the Kerala Land Tax Act and that once a fresh assessment is made, it would be open to the authorities to make appropriate additions

in the Basic Tax Register. Of late, the Act was amended in terms of Act 29 of 2018 with effect from 30.12.2017 and specific provisions have been

incorporated, conferring power on the competent authorities to grant permission to make use of the lands which are not included as paddy land in the

data bank prepared under the Act, but nevertheless continues to be classified in the revenue records as 'Nilam', and also for changing its classification

in the revenue records. In terms of the amendment referred to above, such lands are defined in the Act as 'unnotified land'. Section 27A is a provision

in Act 29 of 2018 conferring power on the competent authority to grant permission to make use of unnotified lands for other purposes and Section 27C

is a provision in the said Act conferring power on the competent authority to change its classification. Sub-section(5) of Section 27C provides that no

attempt shall be made to alter or change or modify the revenue records relating to the paddy land or wetland or unnotified land otherwise than in

accordance with the provisions therein. In other words, after the amendment to the Act in terms of Act 29 of 2018, change of classification of a land

can be sought only based on an order passed by the competent authority under Section 27A of the Act.

13.

Reverting to the facts, as noted, it is seen that though there was no impediment at all for the petitioners to resume the construction of the building

proposed by them on the strength of Ext.P11 judgment of this Court after obtaining building permit from the local authority as directed in the said

judgment, by way of abundant caution, they preferred an application before the District Collector who is the competent authority under the KLU order

to utilise their lands which are shown in the revenue records as 'Nilam' for the purpose of putting up the construction proposed by them. The said

application has been allowed by the District Collector as per Ext.P12 communication and the petitioners were granted permission to utilise the lands

owned by them for construction of the building proposed by them, if the said lands are not shown as paddy land or wetland in the data bank prepared

under the Act. Admittedly, the lands of the petitioners are not shown as paddy land or wetland in the data bank prepared under the Act. If as a matter

of fact, KLU order applies to the lands of the petitioners, according to me, Ext.P12 communication can certainly be regarded as a permission granted

by the competent authority under the KLU order to utilise the lands owned by the petitioners for other purposes, though the same is not styled as one

issued under the KLU order. I take this view also for the reason that insofar as the lands owned by the petitioners which are shown in the revenue

records as 'Nilam' have been converted long prior to the coming into force of the Act, had the petitioners preferred an application for permission under

the KLU order to utilise the lands for other purposes, instead of preferring the application before the competent authority seeking a declaration that the

KLU order does not apply to them on which Ext.P12 communication was issued, they would have certainly been granted permission under the KLU

order, for large number of similarly placed persons could secure permission under the KLU order, especially after the decision of the Apex Court in

Jalaja Dileep and all of them could also obtain classification of their lands in the revenue records on that basis. The petitioners alone, in the

circumstances, cannot be deprived of the said benefit especially in the light of Ext.P12 communication issued by the competent authority under the

KLU order.

14.

The writ petitions, in the circumstances, are allowed. Ext.P17 notice of the fifth respondent Municipality is quashed and the Municipality is directed

to consider the application of the petitioners for building permit without insisting on orders under the KLU order or under Section 27A of the Act.

Similarly, the eighth respondent is directed to reassess the lands of the petitioners covered by Ext.P21 application, treating Ext.P12 communication of

the District Collector as permission under the KLU order to utilise the lands of the petitioners which are shown in the revenue records as ""Nilam"" for

other purposes. Needless to say that on reassessment, the competent authority shall issue appropriate directions to the revenue officials to change the

classification of the lands in the revenue records as dry lands. The directions aforesaid shall be complied with, within two months from the date of

receipt of a copy of this judgment.