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Judgment
The petitioners, who are co-owners of 532.98 Ares of land in Re.Sy. Nos.2/1, 4/1 and 4/2 of Pinarayi Village, have filed this writ petition under
Article 226 of the Constitution of India, seeking a writ of mandamus commanding respondents 2 and 3 to pass final award incorporating the 4th
respondent also as an interested party in the land acquisition proceedings and to transfer the entire amount of compensation to the loan account of the
petitioners with the 4th respondent, within a time limit to be fixed by this Court. The petitioner has also sought for a writ of mandamus commanding the
4th respondent to handover the original title deeds of the property of the petitioners, having an extent of 532.98 Ares of land in Re.Sy.Nos.2/1, 4/1 and
4/2 of Pinarayi Village, so as to enable the 3rd respondent to pass final award in respect of the property under acquisition.
On 29.12.2020, when this writ petition came up for admission, the learned Government Pleader and also the learned Standing Counsel for the 4th
respondent Bank sought time to get instructions.
On 06.01.2021, when this writ petition came up for consideration, the learned Standing Counsel for the 4th respondent Bank sought time to get
instructions as to whether the Bank is prepared to produce the original title deeds of the property before the 3rd respondent Land Acquisition Officer,
on the said respondent issuing appropriate proceedings for the deposit of the entire compensation, with the Bank.
On 12.01.2021, the learned State Attorney submitted that based on the instructions already received, a statement on behalf of the 3rd respondent
Special Tahsildar will be placed on record by 19.01.2021. The learned State Attorney has also submitted that, in the meantime, the award amount shall
not be deposited in Court.
Along with a memo filed by the learned State Attorney, a statement dated 13.01.2021 of the 3rd respondent Special Tahsildar is placed on record,
wherein it is stated that the Government vide G.O.(Rt) No.3959/2020/RD dated 25.12.2020 accorded advance sanction under sub-rule (2) of Rule 27
of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Kerala) Rules, 2015 to pass the award,
since the award amount exceeds to Rs.20 crores. Accordingly, the 2nd respondent District Collector, vide proceedings No.C6-830/18/DCKNR dated
26.12.2020, approved the award of compensation. In view of the pendency of this writ petition, the award amount has not been deposited in the
Additional District and Sessions Court, Thalassery. In the statement, the 3rd respondent has stated that the entire compensation amount can be
deposited in the State Bank of India, SME Branch, Kannur, on the request and consent of the petitioner, only on releasing the original title deeds to the
3rd respondent.
The 4th respondent Bank has filed a statement dated 18.01.2021, wherein it is stated that the petitioners are maintaining joint account
No.39940383074 with SME Branch, Kannur and the 3rd respondent may be directed to transfer the award amount to the said account. The Bank can
mark a lien on the due amount in connection with the loans/credit facilities availed by the borrower, namely, M/s.Sreechand Speciality Hospital (P)
Ltd., as on the date of transfer of the amount, and if the petitioners wish to discharge their liability in respect of the loans, then the Bank can transfer
the amount from the above account to the respective loan accounts. In the statement, it is stated that the acquired property is not mortgaged for any
other loan granted by the 4th respondent, except the loans/credit facilities availed by M/s.Sreechand Speciality Hospital (P) Ltd., referred to in
paragraph 3 of the statement. On receipt of the award amount, the Bank will produce the original title deeds before the authority concerned, within
two working days.
Heard the learned counsel for the petitioner, the learned State Attorney for respondents 1 to 3 and also the learned Standing Counsel for the 4th
respondent Bank.
Section 77 of the Right to Fare Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 deals with payment
of compensation or deposit of same in Authority. As per sub-section (1) of Section 77, on making an award under Section 30, the Collector shall
tender payment of compensation awarded by him to the persons interested entitled thereto according to the award and shall pay it to them by
depositing the amount into their Bank accounts unless prevented by some one or more of the contingencies mentioned in sub-section (2). As per sub-
section (2) of Section 77, if the person entitled to compensation shall not consent to receive it or if there be no person competent to alienate the land,
or if there be any dispute as to the title to receive the compensation or as to the apportionment of it, the Collector shall deposit the amount of the
compensation in the Authority to which a reference under Section 64 would be submitted. As per the first proviso to sub-section (2), any person
admitted to be interested may receive such payment under protest as to the sufficiency of the amount. As per the second proviso to sub-section (2),
no person who has received the amount otherwise than under protest shall not be entitled to make an application under sub-section (1) of Section 64.
As per the third proviso to sub-section (2), nothing contained in sub-section (2) shall affect the liability of any person who may receive the whole or
any part of the compensation awarded under this Act, to pay the same to the person lawfully entitled thereto.
In the instant case, the property included in Ext.P4 draft award passed by the 3rd respondent Special Tahasildar is mortgaged to the State Bank of
India, SME Branch, Kannur. As per Ext.P4 draft award, the total compensation payable comes to Rs.40,51,09,366/-. As per Ext.P7 letter dated
18.12.2020 of the 4th respondent Bank, addressed to the 3rd respondent Special Tahasildar, the total amount outstanding as on 18.12.2020 comes to
Rs.24,84,68,331/-. By Ext.P5 letter dated 09.12.2020, the 2nd respondent District Collector sought advance sanction under sub-rule (2) of Rule 27 of
the Right to Fare Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Kerala), Rules, 2015 for advance sanction to
pass award, since the award amount exceeds to Rs.20,00,00,000/- and the Government vide order dated 25.12.2020 accorded advance sanction.
Accordingly, the 2nd respondent vide proceeding dated 26.12.2020 approved the award of compensation.
The 4th respondent Bank made Ext.P7 request dated 18.12.2020 before the 3rd respondent for disbursing part of the award amount to discharge
the liability due towards the Bank. The petitioners have filed Ext.P8 request dated 21.12.2020 before the 3rd respondent expressing their no-objection
in transferring the entire amount to the 4th respondent Bank. In Ext.P8, the petitioners have also stated that they are prepared to give any undertaking,
as directed by the 3rd respondent, for transferring the award amount to the 4th respondent Bank. Ext.P7 request made by the 4th respondent Bank
and Ext.P8 request made by the petitioners are now pending consideration before the 3rd respondent. Therefore, the 3rd respondent has to take
appropriate decision on those requests and pass final award, taking note of the provisions under Section 77 of Right to Fare Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act.
In such circumstances, this writ petition is disposed of by directing the 3rd respondent to take an appropriate decision on the request made by the
petitioners in Ext.P8 and that of the 4th respondent Bank in Ext.P7 and pass final award, with notice to the petitioners and also the Branch Manager of
the 4th respondent Bank, taking note of the provisions under Section 77 of Right to Fare Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, as expeditiously as possible, at any rate, within a period of ten days from the date of receipt of a certified copy of
this judgment.
No order as to cost.