Satheesan, S/o. Narayanan Pillai v. Deputy Collector And Competent Authority (Kerala) Gail (India) Limited
2023-07-12
P.SOMARAJAN
body2023
DigiLaw.ai
JUDGMENT : 1. C.R.P.No.452/2019, 453/2019, 457/2019, 458/2019, 460/2019, 461/2019 and 462/2019 are by GAIL INDIA LIMITED, the respondent before the District Court, wherein the proceedings were initiated under Section 10(2) of Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 (hereinafter referred to as 'PMP Act' for short). Notification under Section 3(1) of the Act was issued on 12/03/2010 and notification under Section 6(1) of the Act was issued on 3/9/2010. The competent authority notified under the Act thereon passed an award fixing the compensation, against which the respective owners of the property had taken up the matter before the District Court under Section 10 of PMP Act for enhancement of compensation in accordance with the provisions contained in the Act. The District Court in turn re-assessed the compensation under Section 10(3) of PMP Act as ten times of notified fair value of the land by relying on the State Government notification - G.O.(Rt)No.5165/2017/RD dated 01/12/2017, by a common order, against which, the petitioner - M/s GAIL (INDIA) Ltd. came up in C.R.P.No.452/2019, 453/2019, 457/2019, 458/2019, 460/2019, 461/2019 and 462/2019 against the order in O.P.(PMP) 397, 276, 283, 253, 233, 277 and 166 of 2012 respectively. The respective claimants preferred C.R.P.Nos.642/2019, 24/2022, 26/2022, 633/2019, 643/2019, 17/2022 and 641/2019 respectively, dis-satisfied with the quantum of compensation. 2. Earlier, W.P.(C)No.2133/2020 was filed by the land holders, whose lands were acquired under notification dated 03/09/2010 claiming that the above mentioned Government Order dated 01/12/2017 should be made applicable to their lands also. The writ petition was dismissed by judgment dated 16/03/2022 holding that the G.O. cannot be made applicable to the lands covered under notification dated 03/09/2010. 3. The question came up for consideration is pertaining to the legal sanctity of the abovesaid State Government Order in the matter of fixation of compensation under Section 10 of the PMP Act. The abovesaid notification was issued based on a decision taken in a meeting chaired by Honourable Chief Minister on 11/11/2017 in partial modification of earlier orders issued viz., (1) G.O.(Rt) No.7325/2012/RD dated 29/12/2012 (2) G.O. (Rt) No.3195/2013/RD dated 04/06/2013 (3) G.O.(Rt) No.5436/2016/RD dated 16/12/2016 (4) G.O.(Ms) No.45/2017/RD dated 06/02/2017, by which the market value for the purpose of computing land compensation under Section 10 of PMP Act, 1962 has to be taken as ten times of the notified fair value of the land.
Clause (IV) of the said Government Order says that compensation at the above rates shall be payable in respect of all property through which the GAIL Pipeline passes in Kerala right from the beginning of construction activity in January, 2012. The relevant portion of the order are extracted below for reference: “I. The market value for the purpose of computing land compensation under Section 10(4) of the Petroleum and Mineral Pipelines Act, 1962 shall be taken as 10 times the notified fair value of the land. II. ************* III. ************* IV. Compensation at the above rates shall be payable in respect of all property through which the GAIL Pipeline passes in Kerala right from the beginning of construction activity in January, 2012.” 4. It is Section 10 of PMP Act, 1962, which governs the area to determine the compensation payable or adequacy of compensation payable to the parties or liability thereof, which is extracted below for reference: “Section 10 - Compensation (1) Where in the exercise of the powers conferred by section 4, section 7 or section 8 by any person, any damage, loss or injury is sustained by any person interested in the land under which the pipeline is proposed to be, or is being, or has been laid, the Central Government, the State Government or the corporation , as the case may be , shall be liable to pay compensation to such person for such damage, loss or injury , the amount of which shall be determined by the competent authority in the first instance. (2) If the amount of compensation determined by the competent authority under sub- section(1)is not acceptable to either of the parties, the amount of compensation shall, on application by either of the parties to the District Judge within the limits of whose jurisdiction the land or any part thereof is situated, be determined by that District Judge.
(2) If the amount of compensation determined by the competent authority under sub- section(1)is not acceptable to either of the parties, the amount of compensation shall, on application by either of the parties to the District Judge within the limits of whose jurisdiction the land or any part thereof is situated, be determined by that District Judge. (3) The competent authority or the District Judge while determining the compensation under sub-section(1)or sub-section(2), as the case may be, shall have due regard to the damage or loss sustained by any person interested in the land by reason of-- (i) the removal of trees of standing crops, if any, on the land while exercising the power under section 4, section 7 or section 8; (ii) the temporary severance of the land under which the pipeline has been laid from other lands belonging to, or in the occupation of, such person; or (iii) any injury to any other property, whether movable or immovable , or the earnings of such persons caused in any other manner: Provided that in determining the compensation no account shall be taken of any structure or other improvement made in the land after the date of the notification under sub-section(1)of section 3. (4) Where the right of user of any land has vested in the Central Government, the State Government or the corporation , the Central Government, the State Government or the corporation , as the case may be, shall, in addition to the compensation, if any, payable under sub-section(1), be liable to pay to the owner and to any other person whose right of enjoyment in that land has been affected in any manner whatsoever by reason of such vesting, compensation calculated at ten per cent. of the market value of that land on the date of the notification under sub-section(1)of section 3. (5) The market value of the land on the said date shall be determined by the competent authority and if the value so determined by that authority is not acceptable to either of the parties, it shall, on application by either of the parties to the District Judge referred to in sub-section(2), be determined by that District Judge. (6) The decision of the District Judge under sub-section(2)or sub-section(5)shall be final. (emphasis supplied) 5.
(6) The decision of the District Judge under sub-section(2)or sub-section(5)shall be final. (emphasis supplied) 5. The competent authority notified under the PMP Act will have certain powers of civil court to summon witness, enforce their attendance, to record evidence, summon documents etc. under Section 12 of the Act. Section 14 of the PMP Act is the debarring provision of jurisdiction of civil court. Going by the abovesaid provisions, it is clear that the State Government or any other authority under the State Government cannot dictate any terms in the matter of fixation of compensation and there is no provision for issuing any notification or order by the State Government under the said Act, including Section 10. The argument advanced by the claimants that sub-section (4) of Section 10 of the Act would enable the State Government to issue a notification/order regarding fixation of compensation cannot be sustained simply on the reason that it is only a provision dealing with payment of compensation when the right of user of any land has been vested with the Central Government or State Government as the case may be. Even Section 17 of the Act does not authorise the State Government to issue any notification/order for the purpose of carrying out the provisions of the abovesaid Act. The Central Government alone can issue a notification in that behalf. In the Rules framed by the Central Government viz., the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Rules, 1963, there is no provision enabling the State Government to dictate terms or to interfere with the matter of fixation of compensation or to issue any order/notification in that behalf. In short, the meeting convened on 11/11/2017 may not have any relevance pertaining to fixation of compensation either by the competent authority under the Act or the District Court empowered under Section 10 of the Act. Necessarily, the Government Order issued - G.O.(Rt)No.5165/2017/RD dated 01/12/2017 directing to fix the compensation as ten times of notified fair value of land and the earlier orders referred above have no legal sanctity in the matter of fixation of compensation under Section 10 of the PMP Act. Neither the competent authority nor the District Court is bound by the said Government order as there is no provision for issuing any such order under the PMP Act.
Neither the competent authority nor the District Court is bound by the said Government order as there is no provision for issuing any such order under the PMP Act. In fact, it is not within the legislative competence of State Government to dictate any Rule or any provision in the matter of determination of compensation covered by PMP Act. Hence, the said notification cannot be read as part of the enactment or any document having binding force pertaining to the matter which would come under the purview of Section 10 of the PMP Act. Necessarily, the fixation of compensation by the District Judge based on the abovesaid notification, especially based on clause I and IV of the said Government Order cannot be sustained as it is against the provisions of PMP Act. 6. Hence, the impugned orders passed by the District Court will stand set aside and the matter is remanded back to the District Court for fresh disposal. The District Court is hereby directed to fix the compensation taking into account the mandate under Section 10 of the special enactment viz., PMP Act and also by applying the general and normal principle governing the area. The parties shall appear before the District Court on 17/08/2023 for the said purpose. All the Revision Petitions will stand allowed accordingly.