Remanded

Alagappa Textiles (Cochin) Mills v. State of Kerala

Kerala HC1 Nov 2012CRP/554/2007

Case brief

AI extract

What is this about?

High Court of Kerala set aside impugned orders directing surrender of excess land by Alagappa Textiles and Kerala Lakshmi Mills. Court held exemption applies if land is set apart for use without collector notice. Matter remanded to Taluk Land Boards for fresh consideration considering BIFR scheme and assignee status within six months.

What did the court decide?

Impugned orders set aside and matter remanded to respective Taluk Land Boards for fresh consideration within six months.

Alagappa Textiles (Cochin) Mills Vs State of Kerala — Land Acquisition | Kerala HC (2012)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MR.JUSTICE V.CHITAMBARESH

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THURSDAY, THE 1ST DAY OF NOVEMBER 2012/10TH KARTHIKA 1934

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CRP.No. 554 of 2007 ( )

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TLB SM.1/1998 of TALUK LAND BOARD, MUKUNDAPURAM

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REVISION PETITIONER(S):

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ALAGAPPA TEXTILES (COCHIN) MILLS, ALAGAPPA NAGAR, THRISSUR-680 302 REP. BY ITS GENERAL MANAGER.

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BY ADVS.SRI.U.K.RAMAKRISHNAN (SR.)

SRI.E.K.MADHAVAN

SRI.P.V.LOHITHAKSHAN

SRI.V.KRISHNA MENON

RESPONDENT(S):

STATE OF KERALA, REP. BY CHIEF SECRETARY TRIVANDRUM.

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TALUK LAND BOARD, MUKUNDAPURAM, THRISSUR DISTRICT.

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TAHSILDAR, MUKUNDAPURAM TALUK, IRINGALAKKUDA, THRISSUR DISTRICT.

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BY ADV. SPECIAL GOVERNMENT PLEADER SMT. SUSHEELA BHAT

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THIS CIVIL REVISION PETITION HAVING BEEN FINALLY HEARD ON 01-11-2012, ALONG WITH CRP NO. 707 OF 2007 AND CRP NO. 293 OF 2010 THE COURT ON THE SAME DAY PASSED THE FOLLOWING:

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V. CHITAMBARESH, J

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C.R.P. NOs. 554 of 2007, 707 of 2007 AND 293 of OF 2010

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Dated this the 1^st day of November, 2012

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ORDER

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Kerala Lakshmi Mills and Alagappa Textiles (Cochin) Mills were taken over by the National Textile Corporation Ltd. under the Sick Textile Undertaking (Nationalisation) Act, 1974. Proceedings were initiated against the Kerala Lakshmi Mills and Alagappa Textiles (Cochin) Mills by the Taluk Land Board, Thrissur and the Taluk Land Board, Mukundapuram respectively under the provisions of the Kerala Land Reforms Act. The Taluk Land Board, Thrissur by order dated 21.07.2007 directed Kerala Lakshmi Mills to surrender an extent of 42 acres as in excess of their ceiling area under the kerala Land Reforms Act. This is challenged by the Kerala Lakshmi Mills in C.R.P. No. 707/2007 under Section 103 of the Kerala Land Reforms Act. About 9.525 acres of land included in the holding was sold in auction at the instance of the National Textile Corporation Ltd. by the Assets Sale Committee constituted by the District Collector. The assignee

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CRP Nos. 554/2007, 707/2007 & 293/2010

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by name T.R. Reghulal filed I.A. No. 3261/2009 and got himself impleaded as additional fourth respondent in C.R.P. No. 707/2007. About three acres of land taken assignment of by him was later sold by private alienation to Sri Sri Ravisankar Vidya Mandir Trust. The said Trust has also filed C.R.P. No. 293/2010 challenging the order of surrender passed against Kerala Lakshmi Mills by the Taluk Land Board, Thrissur. The Taluk Land Board, Mukundapuram by order dated 06.03.2007 directed Alagappa Textiles (Cochin) Mills to surrender an extent of 10.81 acres of land as in excess of their ceiling area. This is challenged by Alagappa Textiles (Cochin) Mills in C.R.P. No. 554/2007 under Section 103 of the Kerala Land Reforms Act. I am disposing of all the three Civil Revision Petitions together since common questions of law arise for consideration in all these cases.

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I heard Smt. Susheela Bhat, Special Government Pleader on behalf of the State, Mr. V. Krishna Menon, Advocate on behalf of M/s. Kerala Lakshmi Mills and Alagappa Textiles (Cochin) Mills, Mr. K.B. Pradeep, Advocate on behalf of Sri Sri Ravisankar Vidya Mandir Trust and Mr. Saiby Jose Kidangoor,

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CRP Nos. 554/2007, 707/2007 & 293/2010

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Advocate on behalf of the additional fourth respondent in C.R.P. No. 707/2007.

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The lands comprised in mills, factories or work shops and which are necessary for the use of such mills, factories or work shops are exempted from the provisions of the Kerala Land Reforms Act by virtue of Section 81(1)(c) thereof. Similarly lands belonging to or held by an industrial or commercial undertaking at the commencement of this Act and set apart for use for the industrial or commercial purpose of the undertaking is exempted under Section 81 (1) (k) of the Kerala Land Reforms Act. The proviso thereof clarifies that the industrial or commercial undertaking will continue to enjoy the exemption in regard to land set apart for use (eventhough unutilised) until such time the District Collector by notice requires the undertaking to utilise the unutilised land. There is paucity of evidence at this juncture to hold whether the District Collector, Thrissur had issued notices to Kerala Lakshmi Mills and Alagappa Textile (Cochin) Mills requiring them to utilise the unutilised lands from a particular date failing which it will lose the exemption. It is enough if the lands belonging to or

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CRP Nos. 554/2007, 707/2007 & 293/2010

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held by the industrial or commercial undertaking is set apart for use and there is no necessity to put it to utilisation unless so directed by the District Collector to lose the exemption from a future date. I am fortified in this view by the judgment in Ali Vs. State of Kerala [1976 KLT SN 45 (Case No. 98] . There is no categoric finding in that regard either in the order of the Taluk Land Board, Thrissur or in the Taluk Land Board, Mukundapuram passed in these cases.

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It is also relevant to note that both Kerala Lakshmi Milss and Alagappa Textile (Cochin) Mills were referred to the Board for Industrial Finance and Reconstruction (BIFR for short). The National Textile Corporation Limited and the different textile mills under it including the aforementioned were declared as a sick company by the BIFR. The BIFR had approved a scheme for revival of the sick companies and clause 5 thereof enables the companies to sell surplus lands. The State of Kerala was very much a party before the BIFR and the auction was conducted by none other than the Asset Sale Committee headed by the District Collector, Thrissur. The impact of such a sale in the context of the enabling provision in

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CRP Nos. 554/2007, 707/2007 & 293/2010

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the scheme approved by the BIFR is also a very relevant aspect. But none of these aspects are seen adverted to by the Taluk Land Board in the orders impugned in the Civil Revision Petitions. I have no option but to set aside the impugned orders and remand the matter to the respective Taluk Land Boards for fresh consideration. The Taluk Land Board, Thrissur and the Taluk Land Board, Mukundapuram shall issue notice to the parties in the Civil Revision Petitions as also the assignees before passing a final order of determination. The question whether excess lands, if any, could be taken possession of from the lands retained by the sick companies after accepting the open statement filed by the assignees shall also be explored. The Taluk Land Board, Thrissur and Taluk Land Board, Mukundapuram shall take the proceedings to a logical end within a period of six months from the date of receipt of a copy of this judgment.

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The Civil Revision Petitions are disposed of. No costs.

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V. CHITAMBARESH JUDGE

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ncd

Alagappa Textiles (Cochin) Mills v. State of Kerala

Case brief

What is this about?

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Alagappa Textiles (Cochin) Mills v. State of Kerala

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