Savithri Antharjanam vs The Corporation of Kochi and The State of Kerala

Justice P.R. Ramachandra Menon

The petitioner, an octogenarian widow, is stated as constrained to approach this Court for disbursement of amount payable to her, pursuant to ''negotiable sale'' of her properties in connection with a drinking water project implemented at the instance of first respondent Corporation. According to the petitioner, her ''agricultural land'' having an extent of nearly 7.1 ares situated in Piravom village was initially sought to be acquired for the project. Subsequently, pursuant to meeting held on 21.03.2010, the petitioner agreed to have the property conveyed by way of ''negotiated sale'', for the consideration agreed upon. According to the petitioner, though there was a claim for satisfying the sale consideration at a much higher rate, as against the value fixed by the departmental authorities, pursuant to the negotiations, an enhancement to an extent of 50% was granted fixing the land value as Rs.1,50,041/- (Rupees one lakh fifty thousand and forty one only) per cent, which accordingly was agreed upon, leading to Ext.P2 minutes.

Pursuant to the above proceedings, the petitioner parted with the possession of the property in March, 2012 itself and the concerned respondent started the project work thereon. Despite the above, the amount due to the petitioner was never released, allegedly because of the doubt expressed by the concerned authorities as to the necessity to have deducted 10% of the amount payable from the total sale consideration by way of ''TDS'' u/s 194LA of the Income Tax Act. The pleadings and proceedings reveal that despite the recommendations given by the concerned parties, nothing transpired in the positive for causing the disbursement. According to the petitioner, in respect of similar property situated in the locality, and covered by Ext.P2, the entire sale consideration has been disbursed without any deduction; while the petitioner, despite at her advanced age and stature as a widow, is being discriminated, which made her to approach this Court, filing this writ petition.

The learned counsel for the petitioner submits that the statutory requirement to have the TDS effected with reference to Section 194LA of Income Tax act is not applicable to the case in hand, primarily for the reason that the petitioner became eligible for getting the amount, not pursuant to any acquisition but by way of negotiation and sale. Further, it is an ''agricultural land'' and as such, the provision is not applicable to the case as well. Reliance is also placed on the decision rendered by a Division Bench of this Court in W.A. No. 2243/2008.

Heard the learned Government Pleader as well, who submits on instructions, that the due amount can be disbursed to the petitioner without effecting the ''TDS'', in tune with relevant provisions; particularly the property being an ''agricultural land''. It is to be noted, the provision itself says that the requirement to effect the TDS u/s 194LA is applicable only in the case of the compensation pursuant to an ''acquisition'', which is not applicable to a case of ''negotiated sale''. The legal position in this regard has been clarified by the Division Bench of this Court as per the judgment dated 08.01.2009 in WA No.2243/2008 (in which, I was also a member of the Bench). This being the position, this Court does not require any second thought to direct the respondents to disburse the entire amount covered by Ext.P2 to the petitioner forthwith, without effecting any deduction towards TDS u/s 194LA of the Income Tax Act. The proceedings shall be finalized and the disbursement shall be effected as expeditiously as possible, at any rate, within one month from the date of receipt of a copy of this judgment.

Writ petition is allowed. No costs.