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2014 (12) TMI 1332 - HC - Indian LawsLegality of the ceiling proceedings initiated under the Kerala Land Reforms Act, 1963 - resume possession of about 400 acres of land - lands acquired would be treated as a 'Development Area' - whether the lands in question have been assigned in favour of HMT under the Rules or the Assignment Rules? Held that:- Acquiring land for the establishment of a Machine Tool factory is nothing but an acquisition for the purpose of industrial development of an area in the context of Rule 2(d) of the Rules. Also Rule 23 of the Rules empowers the Government to assign land in the Development Areas dispensing with any of the provisions contained in the Rules like Rules 11 or 8. The mere fact that no restriction was made or that no land value was realised does not take the assignment out of the purview of the Rules. So is the case even if the assignment is made dehors an application routed through the Director of Industries and Commerce in the Form in Appendix I to the Rules as envisaged in Rule 5 thereof. It is bewildering as to how the State Government could grant exemption to HMT from the provisions of Chapter III of the Act by virtue of notifications dated 29.7.1991 and 4.7.2000. The notifications were purportedly issued in public interest under Section 81(3) of the Act on account of the land being used for industrial purpose. Exemption for the entire extent was granted by notification dated 29.7.1991 and exemption for the extent of 100 acres was granted by notification dated 4.7.2000. No proceedings could be initiated for the determination of ceiling area when the subject matter of the ceiling case is a Government land whether it be 1.4.1964 or on 1.1.1970. The assignment of Government land in favour of HMT was much after the cut off date and that too under the Rules which itself provide for various contingencies. Whether there are grounds to invoke the power of resumption under Rules 14 and 15 and the modalities thereof under Rules 16 and 17 do not arise for adjudication now. The proceedings being continued on the file of the Taluk Land Board, Kanayannur in M2724/89 against HMT as a holder of excess lands do not have the sanction of law and are to be aborted - The impugned order of the Taluk Land Board directing HMT to surrender 251.40.000 acres as lands held in excess of the ceiling area is hereby set aside - petition allowed.
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