Conservation of Paddy Land & Wetland Act| Supreme Court Sets Aside Kerala HC Judgment That Held That 'Reclamation Fee' Is Calculable For Portion Of Land In Excess Of 25 Cents
The issue in the Appeals before the Supreme Court was a Government Notification exempting the payment of a fee upon reclamation of land originally reflected in the records of the State as ‘paddy land’.
The Supreme Court has set aside the Kerala High Court judgment that held that the fee payable by a person would be calculable for the portion of land that is in excess of 25 cents, since that much stands exempted under the Kerala Conservation of Paddy Land and Wetland Act, 2008.
The issue in these Appeals was the construction of a Government Notification exempting the payment of a fee upon reclamation of land originally reflected in the records of the State as ‘paddy land’ in accordance with the aforesaid 2008 Act.
The two-Judge Bench comprising Justice Sanjay Karol and Justice Manmohan observed, “… the learned Single Judge as also the Division Bench fell in error in holding that land up to 25 cents is exempted from payment of fees in all cases.”
The Bench reiterated that the State is permitted reasonable classification and the solitary, but all-important principle in this regard is that such classification should have a reasonable nexus to the object sought to be achieved.
Senior Advocate Shaji P. Chaly represented the Appellants while Senior Advocates Raghenth Basant and V. Chitambaresh represented the Respondent.
Case Background
The Respondent was the owner of a land and in 2019, with the intention of putting the land to an alternate use, i.e., using it to secure an education loan, she made an application to the competent authority under Form 6 of Section 27 of the Act. Thereafter an application was further made to remove the said land from the ‘data bank’, under Form 5 of the Act. The Revenue Officer, Idduki via Notice in 2021, informed the Respondent that the property is de-notified as per the Act, thereby, she was also directed to deposit a sum of Rs. 1,74,840/- which was 10% of the value of property.
The State then issued a Notification granting exemption from paying reclamation fee in respect of lands up to 25 cents, stating that lands in excess of the prescribed limit shall be charged such fee at 10% of the fair value. Being aggrieved, the Respondent went to the High Court. The Single Judge held that the fee payable by a person would be calculable for the portion of land that is in excess of 25 cents, since that much stands exempted under the Act. The State filed an Appeal against this but the Division Bench dismissed the same, and confirmed the Single Judge’s decision. Hence, the State approached the Apex Court.
Reasoning
The Supreme Court after hearing the arguments from both sides, noted, “No fault, therefore, can be found on that count, on the action of the appellant-State. … As can be seen from the above extract, the competent authority has found it fit to provide that as on the cut-off date properties, with or without the same survey number, lying as a single unit but covered by different documents can be considered.”
The Court further clarified that if the total exceeds 25 cents, then the benefit of the exemption cannot be allowed and that the exemption is only intended for lands up to 25 cents because, had it not been so, the second part of the clarification would be rendered otiose.
“In assailing the High Court judgment, the appellant-State has also placed reliance on Rule 12 Clause 9 of the Kerala Conservation of Paddy Land and Wetland Rules, 2008, which reads as, “Fees to be remitted for sanction of change of nature of unnotified land”, therein it is clarified that when the extent is up to 25 cents no fee is to be remitted. The second column thereof categorically states that when the land is above 25 cents up to 1 Acre or less 10% of the fair value, is to be paid as a fee”, it said.
Accordingly, the Apex Court allowed the Appeals, overruled the impugned Judgment, and directed the Respondent to pay a conversion fee as calculable on the total extent of land in their ownership.
Cause Title- State of Kerala & Ors. v. Moushmi Ann Jacob (Neutral Citation: 2025 INSC 255)
Appearance:
Appellants: Senior Advocate Shaji P. Chaly, AOR Nishe Rajen Shonker, Advocates Anu K Joy, and Alim Anvar.
Respondent: Senior Advocates Raghenth Basant, V. Chitambaresh, AORs Manish Tiwari, Jogy Scaria, Ankur S. Kulkarni, Advocates Vishnu Pazhanganat, Kaushik Akira Sharma, Hima Bhardwaj, Beena Victor, C Govind Venugopal, M Priya, Ashwani Kumar Soni, M Gireesh Kumar, A S Naushad, Puspita Basak, and Tarun.
