1999 (2) TMI 668

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....drop : The respondent is a partner of a firm, an industrial undertaking. He claimed exemption of the land in question under Section 81(1)(k) of the Kerala Land Reforms Act (for short 'the Act'). The Taluk Land Board, Kodungallur, in proceeding under Section 85 of the Act opined that he was not entitled to the exemption as the land was not actually put to industrial use and directed him to surrender the excess land measuring 3.22.250 acres. The respondent carried the matter in revision before the High Court. Observing that there was nothing on record to show that the District Collector had issued any notice under proviso to Section 81(l)(k), the High Court held that the respondent was entitled to avail the exemption. There-after, th....

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.... argued that on cessation of the exemption under section 81(l)(k) as Explanation I to section 87 squarely applies, To resolve the controversy it will be useful to refer to the relevant provisions in Chapter III of the Act which deals with the restriction on ownership and possession of land in excess of ceiling area and provides for disposal of excess land. Section 81 of the Act contains various categories of land which are exempted from the provisions of Chapter III. Clause (k) of sub-section (1) of Section 81 with which we are concerned here, is extracted hereunder : "81 Exemptions - (1) The provisions of this Chapter shall not apply to - (a) to (j) *** **** *** (k) Lands belonging to or held by an industrial or commercial unde....

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....tting the land apart for industrial or commercial purpose the beneficial provision is not misused and the object of the exemption is not frustrated, proviso is added authorising the Collector to specify by notice to the undertaking time within which the land should be used for the purpose for which it has been set apart and providing that in the event of failure of the undertaking so to do the exemption shall cease to apply. Having regard to the fact that the requirements of clause (k) were satisfied by the respondent and the Collector had not specified by then the date within which the land should be used for the purpose for which it was set apart, the High Court in the first round of litigation held, in our view rightly, that he could av....

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.... which is as under : "87. Excess land obtained by gift, etc., to be surrendered - (1) Where any person acquires any land after the date notified under Section 83 by gift, purchase, mortgage with possession, lease surrender or any other kind of transfer inter vivos or by bequest or inheritance or otherwise and in consequence thereof, the total extent of land owned or held by such person exceeds the ceiling area such excess shall be surrendered to such authority as may be prescribed. Explanation I - Where any land is exempted by or under Section 81 and such exemption is in force on the date notified under Section 83, such land shall, with effect from the date on which it ceases to be exempted, be deemed to be land acquired after the ....