In Petition(s) for Special Leave to Appeal (C) No. 25736/2023 -SC- Supreme Court stays Kerala High Court order on land conversion fee calculation
Justice C.T. Ravikumar & Justice Sanjay Kumar [28-11-2023]

Read Order: The State of Kerala & Ors V. Moushmi Ann Jacob

Chahat Varma

New Delhi, December 1, 2023: In a recent decision, the Supreme Court has stayed the operation and implementation of two orders passed by the Kerala High Court, which had directed the exclusion of 25 cents of land while calculating the fee for changing the nature of land.

In the mentioned case, on 01.08.2023, the State of Kerala had filed a writ appeal challenging the directive to exclude 25 cents of land when computing the fee for changing the nature of the writ petitioner's land. The writ petitioner, who owned 14.5 Ares of land, had applied to remove the property from the data bank, citing its extended status as dry land over many decades. Subsequently, upon removal from the data bank, the writ petitioner was issued a notice to remit a conversion fee, a demand contested by the petitioner based on the provisions of Section 27A of the Kerala Conservation of Paddy Land and Wet Land Act and the applicable schedule of fees.

The contention was that no fee was payable for conversion up to 25 cents, and for conversion in excess of 25 cents, a fee at the rate of 10% was payable only for the property in excess of 25 cents, requiring the exclusion of the initial 25 cents in the fee calculation. The Single Judge of the Kerala High Court favoured the writ petitioner, directing to calculate the fee payable based on the fair value of the property for the extent exceeding 25 cents.

During the hearing, the Special Government Pleader argued that the objective of Section 27A is to exempt smallholders with property up to 25 cents from the Act's rigor, implying that the provision's benefit cannot be extended to those seeking conversion of larger extents. However, the Counsel for the writ petitioner stated that the provision and the notification fixing the fees were unambiguous, countering the government's contention regarding the objective of the provision.

Ultimately, the Single-Judge bench found no reason to interfere with the impugned judgment, stating that the direction was issued in terms of the statutory provision and the schedule of fee, thus rejecting the contention on the objective of Section 27A. As a result, the writ appeal filed by the State of Kerala was dismissed.

Subsequently, on 04.10.2023, the Division Bench dismissed the review petition filed by the State of Kerala. The ruling clarified that, in accordance with Notification [G.O.(Ord.) No.1166/2021/Rev. Dept.] dated 25/02/2021, the conversion fee is applicable only to lands exceeding 25 cents. Consequently, the argument asserting the obligation to pay conversion fees for the entire extent of land, including the initial 25 cents when the land exceeds 25 cents, was rejected.

During the consideration of the present petition(s) for Special Leave to Appeal by the State of Kerala, the division bench comprising of Justice C.T. Ravikumar and Justice Sanjay Kumar held that the execution and enforcement of the order dated 1.8.2023, issued by the Kerala High Court, along with the order dated 4.10.2023, shall be stayed.

Applications requesting exemption from filing certified copies of the challenged judgment and exemption from filing office reports were allowed, with the issue to be returnable on 25.1.2024.