Kerala Paddy Land Act | Supreme Court Stays HC Order That Directed State To Refund Fees Remitted By Owner For Conversion

The Supreme Court recently stayed the order of the Kerala High Court that directed the state of Kerala to refund the fee imposed on a land owner, for conversion of less than 25 cents of paddy land, under the Kerala Conservation of Paddy Land and Wetland Rules, 2008. A division bench of the Kerala High Court in its order dated 13th October 2022 had held that merely because landowners had remitted fees for conversion of less than 25 cents, the state must not be allowed to unjustly enrich themselves.

A bench comprising of Justice B R Gavai, Justice C T Ravikumar and Justice Sanjay Kumar issued notice on the special leave petition filed by the state while granting the stay on the order of the division bench of the Kerala High Court.

As per the amended schedule to Rule 12(9) of the Kerala Conservation of Paddy Land and Wetland Rules, 2008, reclamation of any paddy land upto 25 Cents is not liable to be imposed with any fee, with effect from 25.02.2021. However, the properties exceeding 25 Cents and upto 1 Acre are liable to be imposed with 10% of the fair value, and the properties exceeding 1 Acre are liable to be imposed with 20% of the fair value.

In Baby M.K. and others v. District Collector, Ernakulam and others [2021 (6) KHC 318], the Kerala High Court had held as unconstitutional a circular dated 23.07.2021 issued by the State Government, where the benefit of exemption up to 25 Cents of land was only extended to applications submitted after the cut-off date of 25.02.2021.

The Respondent in this case had sought for a refund of Rs.8,83,500/- which he had remitted on 26.10.2021. The High Court had directed the state to refund the amount in light of the decision in Baby M.K.

“Merely because some landowners have remitted the amount on their own, without protest or objection, it cannot be construed to mean that the effect of Exhibit-P6 circular dated 23.07.2021 would not be applicable to them, more so when, the same circular has been quashed by this Court, as unconstitutional.” The division bench of the Kerala High Court had held.

“When this Court has declared Exhibit-P6 circular dated 23.07.2021 issued by the Additional Chief Secretary, Revenue Thiruvananthapuram, as unconstitutional, appellants are bound to refund the amount collected and cannot be permitted to enrich unjustly. Contentions of the appellants run contrary to the decision in Baby M.K. (cited supra). Decisions considered by the writ court, applies to the case on hand, that amount illegally collected, has to be refunded.” The Division bench of the Kerala High Court held.

Case Title: State of Kerala V Joy John, Special Leave Petition (Civil) Diary No(s). 31298/2023

Click here to read/download order