IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE CHIEF JUSTICE MR.S.R.BANNURMATH & THE HONOURABLE MR. JUSTICE KURIAN JOSEPH TUESDAY, THE 11TH AUGUST 2009 / 20TH SRAVANA 1931 WP(C).No. 3258 of 2008(S) ------------------------------------ PETITIONERS: --------------------- 1. STATE HUMAN RIGHTS PROTECTION CENTRE, THRISSUR, KERALA, REGD.NO.R.389/2003, REPRESENTED BY ITS GENERAL SECRETARY, JOY KAITHARATH. 2. JOY KAITHARATH, VELLIKULANGARA, THRISSUR-680 693. BY ADV. SRI.SIVAN MADATHIL RESPONDENTS: ------------------------ 1. STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 2. HON'BLE MINISTER FOR INDUSTRIES, GOVERNMENT OF KERALA, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM. 3. M/S. HMT (MACHINE TOOLS) LIMITED, (FORMERLY HMT LTD.), HMT COLONY P.O.,KALAMASSERY, ERNAKULAM - REPRESENTED BY ITS GENERAL MANAGER. 4. BLUE STAR REALTORS PVT. LTD./ (HOUSING DEVELOPMENT INFRASTRUCTURE LTD. (HDIL), DHEERAJ ARMA 6TH FLOOR, ANANT KANEKAR MARGE, STATION ROAD - BANDRA, MUMBAI - REPRESENTED BY ITS DIRECTOR. 5. THE TALUK LAND BOARD, KANAYANNOOR TALUK, ERNAKULAM, REPRESENTED BY ITS CHAIRMAN. 6. THE TAHSILDAR, KANAYANNOOR TALUK, ERNAKULAM. 7. DISTRICT COLLECTOR, ERNAKULAM. 8. UNION OF INDIA, REPRESENTED BY SECRETARY, MINISTRY OF INDUSTRIES AND COMMERCE, NEW DELHI. WPC NO.3258 OF 2008 - 2 - 9. THE DIRECTOR, CENTRAL BUREAU OF INVESTIGATIONS, C.G.O. COMPLED, LODHI ROAD, NEW DELHI – 110 003. ADDL.1O. THE SUB REGISTRAR, OFFICE OF THE SUB REGISTRAR, EDAPPALLY, COCHIN-24. 11. THE INSPECTOR GENERAL OF REGISTRATION, OFFICE OF THE INSPECTOR GENERAL OF REGISTRATION, VANCHIYOOR P.O., THIRUVANANTHAPURAM-35. (ADDL.RESPONDENTS 1O & 11 ARE IMPLEADED AS PER ORDER DATED 6.2.2008 IN IA NO.1917 OF 2008) ADDL.12. V.M.IBRAHIM, AGED 43 YEARS, S/O.MUHAMMED, VATHIYATHU HOUSE, HMT COLONY, KALAMASSERY. 13. N.I.AZEEZ, S/O.IBRAHIM, AGED 37 YEARS, NJAKKADA HOUSE, HMT COLONY, KALAMASSERY. 14. P.P.MUHAMMEDALI, S/O.PAREED, AGED 43 YEARS, PUNNAKKATTU HOUSE, HMT COLONY, KALAMASSERY. 15. N.A.HASSAINAR, S/O.ALIYAR, AGED 29 YEARS, NJAKKADA HOUSE, HMT COLONY, KALAMASSERY. 16. A.A.UMMER, S/O.AHAMMED, AGED 60 YEARS, AYYAMBRATH HOUSE, HMT COLONY, KALAMASSERY. 17. V.K.ALIYAR, S/O.KUNHAMMU, AGED 65 YEARS, VELIYATH HOIUSE, MATTAKKADU, HMT COLONY, KALAMASSERY. 18. T.V.SHAKKEER, S/O.UMMER, AGED 36 YEARS, THEKKEKANNOTHU HOUSE, HMT COLONY, KALAMASSERY. 19. C.A.KUNJUMUHAMMED, S/O.ALI, AGED 62 YEARS, CHALAKKAPARAMBU HOUSE, HMT COLONY, KALAMASSERY. (ADDL.RESPONDENTS 12 TO 19 ARE IMPLEADED AS PER ORDER DATED 16.10.2008 IN IA NO.2815 OF 2008) ADDL.20. KERALA CONGRESS SECULAR PARTY, REP. BY GENERAL SECRETARY, E.K.HASSANKUTTY, KERALA CONGRESS SECULAR COMMITTEE OFFICE, KOTTAYAM. (ADDL.RESPONDENT NO.20 IS IMPLEADED AS PER ORDER DATED 16.10.2008 IN I.A.NO.3480 OF 2008) ADDL.21. CHELLAPPAN, S/O.KARUPPAN, KONNIPARAMPATHU HOUSE, EDAYAPURAM, ALUVA. (ADDL.RESPONDENT NO.21 IS IMPLEADED AS PER ORDER DATED 16.10.2008 IN IA NO.3524 OF 2008) WPC NO.3258 OF 2008 - 3 - ADDL.22. M.P.PATHU, AGED 78 YEARS, W/O.K.M.KADER PILLAI, KATTUPARAMBIL, PADINJARECHALIL, COMPAY PADY, ALUVA-6. 23. K.K..AMINA, AGED 65 YEARS, D/O.LATE KADER PILLAI, SRAMBIYEKAL HOUSE, VADANAPILLY, THRISSUR DISTRICT. 24. SAINA RAHMAN, AGED 57 YEARS, D/O.KADER PILLAI, PERUMTHARA HOUSE, MAMANGALAM P.O., EDAPPALLY. 25. SAFIYA P.ALIKUNJU, D/O.KADER PILLAI, PADINJARE CHALIL, COMPANYPADY, ALUVA-6. 26. SOUDA, AGED 50 YEARS, D/O.KADERPILLAI, VEZHAPPILLY HOUSE, THOTTUMMUGHAM P.O., ALUVA-5. 27. KADHEEJA HAMEED, AGED 48 YEARS, D/O.KADER PILLAI, POOVATHUNGAL HOUSE, MAHILALAYAM SCHOOL ROAD, ALUVA-5. 28. SUHARA ZAIFUDHEEN, AGED 45 YEARS, D/O.KADER PILLAI, THEPARAMBIL HOUSE, LOKAMALESWARAM, KOTHAPARAMBU, KODUNGALLOOR. ( ADDL.RESPONDENTS 22 TO 28 ARE IMPLEADED AS PER ORDER DATED 16.10.2008 IN IA NO.3530 OF 2008) R1,R2,R5 TO R7,R10 & R11 BY ADVOCATE GENERAL SRI.C.P.SUDHAKARA PRASAD (SR) & SR. GOVERNMENT PLEADER SRI.T.B.HOOD R3 BY SRI.M.PATHROSE MATTHAI, SENIOR ADVOCATE SRI.SAJI VARGHESE FOR R3 SMT.MARIAM MATHAI FOR R3 R4 BY SRI.T.P.KELU NAMBIAR, SENIOR ADVOCATE SRI.V.V.NANDAGOPAL NAMBIAR FOR R4 SRI.P.VISWANATHAN FOR R4 R8 BY ADV. SRI.P.PARAMESWARAN NAIR,ASST.SOLICITOR GENERAL R9 BY ADV.SRI.M.V.S.NAMBOOTHIRI , SC FOR CBI. SRI.S.SREEKUMAR, SC FOR CBI FOR R.9 R12 TO 19 & R22 TO R28 SRI.MANSOOR.B.H. R20 BY ADV.SRI.T.S.JOHN SRI.SIJU RAJAN R21 BY ADV.SRI.A.N.RAJAN BABU SRI.K.GOPALAKRISHNAN FOR ADDL.R SMT.K.SUNITHA VINOD FOR ADDL.R THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 11/06/2009, ALONG WITH WPC NO. 4271 OF 2008 & CONNECTED CASES, THE COURT ON 11/08/2009 DELIVERED THE FOLLOWING: W.P.(C) NO.3258 OF 2008 APPENDIX PETITIONERS' EXHIBITS: EXT.P1 TRUE COPY OF THE ORDER ISSUED BY THE 1ST RESPONDENT STATE VIDE GO (MS) NO.85/98/ID DATED 4.6.08 EXT.P2 TRUE COPY OF THE ORDER GO (MS) NO.207/2000 DATED 4.7.2000 EXT.P3 TRUE COPY OF THE ORDER OF TALUK LAND BOARD, KANAYANNUR VIDE 12724/89 DATED 27.4.2002 EXT.P4 TRUE COPY OF THE REQUEST DATED 30.8.2006 BY THE 4TH RESPONDENT COMPANY EXT.P5 TRUE COPY OF THE COMMUNICATION NO.34476/JI/06/ID DATED 12.6.2007 EXT.P6 TRUE COPY OF THE REPRESENTATION DATED 18.1.2008 EXT.P7 TRUE COPY OF THE COMMUNICATION DATED 11.1.2008 FROM THE DISTRICT COLLECTOR EXT.P8 TRUE COPY OF THE REPRESETATION DATED 22.1.2008 BY THE PETITIONER TO THE HON'BLE CHIEF MINISTER EXT.P9 TRUE COPY OF THE SALE DEED EXECUTED BY THE 3RD RESPONDENT DATED 17.10.2006 WITH THE 4TH RESPONDENT EXT.P10 TRUE COPY OF G.O.(MS) O.387/2000/RD DATED 22.12.2000 EXT.P11 TRUE COPY OF THE REPORT L4-43180/89 DATED 17.11.2006 EXT.P12 TRUE COPY OF THE ORDER NO.25375/G2/06/LAW DATED 12.1.2007 EXT.P13 TRUE COPY OF THE COMPLAINT OF THE PETITIONERS DATED 30.1.2008 EXT.P14 TRUE COPOY OF THE COMMUNICATION DATED 21.5.2007 EXT.P15 TRUE COPY OF THE LETTER DATED 29.12.2006 EXT.P16 TRUE COPY OF THE COMMUNICATION LETTER DATED 29.12.2006 EXT.P17 TRUE TYPED COPY OF THE LETTER 34476/J-1/2006/ID DATED 16.5.2007 EXT.P18 TRUE COPY OF THE ORDER DATED 25.1.2008 BY THE KERALA GOVERNMENT EXT.P19TRUE COPY OF THE MODEL DECLARATION FORM WHICH IS USED BY THE OFFICE OF THE REGISTERING AUTHORITY RESPONDENTS' EXHIBITS: EXT.R1(A) : TRUE COPY OF G.O.(MS) NO.337/72/ID DATED 20.11.1972. EXT.R1(B) : TRUE COPY OF GOVERNMENT NOTIFICATION NO.48499/N2/89/RD, DATED 29TH JULY 1991. EXT.R1(C) : TRUE COPY OF GOVERNMENT ORDER NO.G.O.(MS) NO.138/95/ID DATED 28.08.1995. EXT.R1(D) : TRUE COPY OF G.O.(MS) NO.156/97/ID DATED 05.11.1997. WPC NO.3258 OF 2008 - 2- EXT.R1(E) : TRUE COPY OF G.O.(MS) NO.85/98/ID DATED 04.06.1998. EXT.R1(F) : TRUE COPY OF G.O.(MS) NO.87/99/ID DATED 05.06.1999. EXT.R1(G) : TRUE COPY OF LETTER, DATED 19.06.99 SENT BY THE HMT TO THE SECRETARY TO GOVERNMENT, INDUSTRIES DEPARTMENT. EXT.R1(H) : TRUE COPY OF G.O.(MS) NO.144/99/ID DATED 06.10.1999. EXT.R1(I) : TRUE COPY OF G.O.(MS) NO.207/2000 DATED 4TH JULY 2000. EXT.R1(J) : TRUE COPY OF SKETCHES PREPARED BY THE TALUK SURVEYOR, SHOWING THE LIE AND SURVEY NUMBER. EXT.R3(A) TRUE COPY OF THE ORDER OF ASSIGNMENT NO.GOMS 337/72/ID DATED 20.11.1992 BY THE GOVERNMENT OF KERALA EXT.R3(B) TRUE COPY OF THE PATTA EXT.R3(C) TRUE COPY OF THE TENDER NOTICE ADVERTISED IN HINDU NEWSPAPER DATED 18.1.2001 EXT.R3(C1) TRUE COPY OF THE TENDER NOTICE ADVERTISED IN MATHRUBHUMI NEWSPAPER DATED 17.1.2001 EXT.R3(C2) TRUE COPY OF THE TENDER NOTICE ADVERTISED IN MALAYALA MANORAMA NEWSPAPER DATED 17.1.2001 EXT.R3(D) TRUE COPY OF THE TENDER NOTICE ADVERTISED IN MALAYALA MANORAMA DAILY DATED 13.2.2003 EXT.R3(E) TRUE COPY OF THE MEMORANDUM OF UNDERSTANDING - HMT WITH CENTRAL GOVERNMENT EXT.R4(A) TRUE PHOTOSTAT COPY OF THE SALE DEED NO.5927 OF 2006 OF S.R.O., EDAPPALLY EXT.R4(B) TRUE COPY OF G.O.MS NO.337/72/ID DATED 20.11.1972 WITH FORM OF PATTA AD APPENDIX EXT.R4(C) TRUE PHOTOSTAT COPY OF GAZETTE NOTIFICATION NO.48499/N2/89/RD DATED 29.7.1991 EXT.R4(D) TRUE PHOTOSTAT COPY OF G.O.MS NO.138/95/ID DATED 28.8.1995 EXT.R4(E) TRUE PHOTOSTAT COPY OF O.P.NO.19718 OF 1995 FILED BY THE 3RD RESPONDENT BEFORE THIS HON'BLE COURT EXT.R4(F) TRUE PHOTOSTAT COPY OF LETTER NO.72964/N2/98/RD DATED 19.4.1999 EXT.R4(G) TRUE PHOTOSTAT COPY OF C.M.P.NO.46140 OF 1999 IN O.P.NO.18718 OF 1995 FILED B Y THE 3RD REPSONDENT BEFORE THIS HON'BLE COURT EXT.R4(H) TRUE PHOTOSTAT COPY OF THE BASIC TAX RECEIPT DATED 25.6.2007 ISSUED BY THRIKKAKARA NORTH VILLAGE WPC NO.3258 OF 2008 - 3 - EXT.R4(I) TRUE PHOTOSTAT COPY OF THE REPORT DATED 13.11.2006 ISSUED BY THE TALUK SURVEYOR, KANAYANNUR WITH COVERING LETTER ISSUED BY ADDITIONAL TAHSILDAR ALONG WITH ENGLISH TRANSLATION EXT.R4(J) TRUE PHOTOSTAT COPY OF G.O.MS.NO.144/99/ID DATED 6.10.1999 EXT.R4(K) TRUE PHOTOSTAT COPY OF ORDER PASSED BY THE HIGH COURT OF KARNATAKA IN WP(C) NO.8288 OF 2006 DATED 9.1.2007 EXT.R11(A) TRUE COPY OF LETTER DATED 3.11.2006 FROM THE ADDITIONAL TAHSILDAR, KANAYANNUR TALUK TO THE SUB REGISTRAR, EDAPPALLY. EXT.R11(B) TRUE COPY OF THE LETTER DATED 10.11.2006 BY THE SUB REGISTRAR TO THE ADDL. TAHSILDAR EXT.R11(C) TRUE COPY OF LETTER DATED 15.11.2006 ISSUED BY THE ADDL. TAHSILDAR, KANAYANNUR TO THE COMPANY SECRETARY, HMT LTD. EXT.R11(D) TRUE COPY OF THE REPORT OF THE TALUK SURVEYOR ATTACHED WITH EXT.R11(C) LETTER / TRUE COPY / CR S.R.BANNURMATH, C.J. & KURIAN JOSEPH,J. ------------------------------------------------- W.P(C).Nos.3258, 4271, 8172 and 9927 of 2008 -------------------------------------------------- Dated this the 11th day of August, 2009 JUDGMENT Kurian Joseph,J. Acquisition, assignment and reforms are the three major aspects on land. That there are three important legislations in all these areas would show the need and relevance for proper order in this field. In the case before us, it is interesting to note that the events are to be analysed with reference to all these three legislations, namely, Land Acquisition Act, Land Assignment Act and Land Reforms Act. It is significant to note that the events chronologically are well balanced; acquired, assigned and reformed, as in the case of legislation also, 1894, 1960 and 1963 respectively. 2. Res clamat domino - land cries for its master is a well known principle. Therefore, it is necessary to refer to the facts from the roots. In 1963 Government of India decided to establish in Kerala W.P.(C) No.3258/2008, etc. - 2 - a machine tools factory in the central sector as part of the Third Five Year Plan. It was decided to entrust the project to Hindustan Machine Tools Limited, Bangalore (hereinafter referred to as the HMT), a Central public sector undertaking. Government of India requested the Government of Kerala to acquire/make available about 900 acres of land required for the project, free of cost. The land was identified at Kalamassery. This genesis is traceable from the first government order in this regard - G.O(MS)No.327/63/Ind. dated 9-4-1963. The Accountant General, it appears had expressed an apprehension regarding the safeguards to be taken “..... to ensure that the land is not encumbered or alienated by the company without prior approval of the Government”. Therefore, by G.O (MS) No.505/64/Ind. dated 31-7-1964 it was ordered as follows:- “Government have carefully considered the matter and are pleased to order that the area sanctioned to be acquired for the Machine Tools Factory at Kalamassery will, after the acquisition is completed, be treated as a “Development Area” as contemplated in rule 2(d) of the “Rules for the Assignment of Government Lands in Development Areas for Industrial Purposes” W.P.(C) No.3258/2008, etc. - 3 - It was also ordered that “The assignment will be under Rule 23 of the said rules, dispensing with rules 8 & 9. In the event of the resumption of the land by Government as contemplated in Rule 15, the provisions of Rule 16 will apply, excepting the provision for payment of land value since the land is being assigned free of cost. The land assigned to the company shall be heritable but it shall not be alienated or encumbered in any manner without the prior permission in writing of the Government”. However, the Government subsequently seems to have taken a drastically different stand and thus it was ordered in G.O (MS) No.309/72/ID dated 20-10-1972 that “... the title of the lands in question shall be transferred either by executing a gift deed or by assignment on registry absolutely as heritable and alienable waiving the usual terms and conditions”. The said order was issued pursuant to a request of the company that the title shall be by way of a gift deed instead of assignment order so that they will be in a position to deal with the property absolutely. Accordingly Government order dated 20-11-1972 [Ext.R1(a)] was issued. It reads as follows:- W.P.(C) No.3258/2008, etc. - 4 - “Government having considered all the aspects of the matter are pleased to order that the title of the above lands in question shall be transferred to Hindustan Machine Tools Ltd., Bangalore (which shall include H.M.T. (Kalamassery) Ltd. which is under incorporation or any associate company that may be incorporated in future) by assignment on registry absolutely heritable and alienable.” Accordingly patta No.10015 was issued on 30-10-1973 by the Tahsildar, Kanayannur, in respect of 731.19.183 acres subject to the following conditions:- 1. The land assigned shall be heritable and alienable. 2. That the assignee shall be liable for payment of the full assessment charged on the land with effect from the year in which the patta is issued. Thus, acquisition and assignment was completed. It appears, nobody has seriously noted that patta is only for 731.19.183 acres and the consequent impact on the remaining land. Be that as it may, the next aspect to be considered is 'land reforms'. 3. When proceedings under the Kerala Land Reforms Act, 1963 were initiated against the company, Government issued Ext.R1(b) W.P.(C) No.3258/2008, etc. - 5 - statutory notification under Section 81(3) of the Kerala Land Reforms Act on 29-7-1991 on being satisfied that “... on account of the lands specified in the schedule below held by Hindustan Machine Tools Limited, Kalamassery, being bona fide required for an industrial purpose of the Company, it is necesary in the public interest to exempt those lands from the provisions of Chapter III of the Kerala Land Reforms Act, 1963”. Therefore, ... “in exercise of the powers conferred by sub-section (3) of section 81 of the said Act, the Government hereby exempt the said lands from the provisions of Chapter III thereof subject to the following conditions, namely: 1. that the lands or any portion thereof shall not be alienated by the Company; 2. that the lands shall be used only for industrial purposes; 3. that the lands shall be utilised only for the purpose mentioned in condition No.(2) above within four years from the date of publication of this notification in the Gazette; and that if any of the above conditions are violated, the exemption shall cease to be in force and the excess lands will be resumed by Government.” W.P.(C) No.3258/2008, etc. - 6 - The schedule contained an extent of 781.59.766 acres of land. The explanatory note to the statutory notification dated 29-7-1991 gazetted on 29-10-1991 shows that the same was issued based on “... the need to retain the lands held by the Company for meeting the expansion plans without which it would not be possible for the unit to survive in the long run”. It appears the proceedings under the Kerala Land Reforms Act were not proceeded further apparently in view of Ext.R1(b) notification. 4. While so, it was noted that the HMT had not utilised the full extent of the land for the industrial purpose within the permitted period of four years. The Kerala State Industrial Infra Structure Development Corporation (KINFRA) hence mooted a joint venture company with the participation of HMT utilising 400 acres of land in the possession of the HMT. Hence by government order G.O(MS) 138/95/ID dated 28-8-1995 [Ext.R1(c)] it was decided to resume 400 acres of land from HMT on giving equity shares at the rate of Rs.2,000/- per cent in the proposed joint venture company. In the W.P.(C) No.3258/2008, etc. - 7 - meanwhile the HMT negotiated with the Government, apparently not willing to participate in the joint venture and offered to surrender 300 acres of land on condition of the Government granting permanent and unconditional exemption for the balance 100 acres of land. The Government considered the request and passed Ext.R1(d) G.O(MS) No.156/97/ID dated 5-11-1997. Ext.R1(c) order was cancelled and it was ordered therein that “100 acres of land now in possession of Hindustan Machine Tools will be allotted to Hindustan Machine Tools if they have specific plans for massive investment”. The HMT thereafter requested the Government to grant unconditional exemption of 100 acres of land. Therefore, by G.O (MS) No.85/98/ID dated 4-6-1998 [Ext.R1(e)], it was ordered that “Government have considered the above proposal of HMT and since the company has evinced interest in utilising the land which has been kept idle for a long period of time, Government hereby order that if Hindustan Machine Tools Ltd., hand over the 300 acres of land to Govt. within a period of two months from the date of this order the Company would be W.P.(C) No.3258/2008, etc. - 8 - permitted to retain the 100 acres of land”. HMT withdrew the writ petition, O.P.No.19718 of 1995 filed by it challenging the steps for resumption, as part of the above deal. Thus 300 acres were surrendered by HMT and these facts are noted in Ext.R1(f) government order dated 5-6-1999. It is seen that the HMT was not satisfied with the order and hence made another request on 19-6-1999 (Ext.R1(g)) to the Government to grant exemption of the 100 acres under Section 81(1)(a) of the Kerala Land Reforms Act. Accordingly Government clarified as per G.O(MS)No.144/99/ID dated 6-10-1999 that “In the case of balance land to be retained with HMT, the assurance given in the government letter read above regarding permanent exemption under section 81(1)(a) of the KLR Act 1963 will hold good”. Thus Ext.R1(i) statutory notification under section 81(1)(a) of the Kerala Land Reforms Act, 1963 was issued as per notification dated 4-7-2000 which was gazetted on 11-7-2000. It is stated in the notification that “... the Government of Kerala, being of opinion that it is necessary in the public interest to do so, hereby exempt the land specified in the W.P.(C) No.3258/2008, etc. - 9 - Schedule below, owned and held by Hindustan Machine Tools Limited, Kalamassery, from the provisions of Chapter III of the said Act.” 30 acres of land in Sy.No.321/1 of Thrikkakara North Village and 70 acres in Sy.No.717/5 of the said Village was thus notified under Section 81 (1)(a). According to the HMT the 70 acres now sold to the party respondent Blue Star Realtors Pvt. Ltd. forms part of the 100 acres which the HMT is absolutely free to deal with as they wish. 5. Having traced the roots, it is necessary to refer to the legal position, with particular reference to the facts of the present case, in all the three legislations regarding Acquisition, Assignment and Reforms. Sri.Sivan Madathil, one of the learned counsel appearing for the writ petitioners and who addressed the leading arguments, vehemently contends that the Government having acquired the land free of cost and having assigned the same to HMT for industrial purpose, HMT cannot transfer the same and appropriate the value. In other words, the crux of the arguments is that the impugned transfer for value is a fraud on the statute. Learned Advocate General W.P.(C) No.3258/2008, etc. - 10 - Sri.C.P.Sudhakara Prasad, Sri.T.P.Kelu Nambiar, learned Senior Counsel appearing for the party respondent and Sri.Pathrose Mathai, learned Senior Counsel appearing for the HMT, would contend that the Government having assigned the land to HMT as absolutely heritable and alienable and the Government having exempted 100 acres from the operation of the ceiling provisions contained in the Kerala Land Reforms Act, HMT is absolutely free to deal with the property in whatever manner they deem fit. It is also the common case of the respondents that the acquisition, assignment and exemption are transparent transactions by the Government with the HMT having regard to all the required and relevant considerations under law and no irrelevant factor has crept in, in the process. 6. Under the Land Acquisition Act, it is the well settled position that once a land is acquired by the Government for public purpose, it becomes Government land since the land vests absolutely with the Government on acquisition, free from all encumbrances, under Section 16 of the Land Acquisition Act, 1894. The Kerala W.P.(C) No.3258/2008, etc. - 11 - Government Land Assignment Act, 1960 was introduced for regulating the assignment of Government lands and for removing doubts as to the validity of the limitations and restrictions imposed in assignment of land by the Government or under the authority of the Government. Under sub-section (1) of Section 3 of the said Act, Government land may be assigned by the Government or by any prescribed authority either absolutely or subject to such restrictions, limitations and conditions as may be prescribed. Section 8 of the said Act deals with restrictions, conditions, etc. which reads as follows: “8. Assignment to take effect with restrictions, conditions, etc., according to their tenor.- All the provisions, restrictions, conditions and limitations contained in any Pattah or other documents evidencing the assignment of Government land or of any interest therein shall be valid and take effect according to their tenor, notwithstanding any law for the time being in force or any custom or contract to the contrary. Explanation.- In this section, the expression “Government land” shall include land under the control or management of the Government at the time of the assignment.” Thus the restrictions, conditions, scope, etc. of assignment are to be W.P.(C) No.3258/2008, etc. - 12 - governed by the tenor of assignment. Though we may have to refer to the factual position in the latter portion of the judgment, we feel it necessary to note again that the assignment of Government land to the HMT as per Ext.R1(a) order dated 20.11.1972 was by assignment on registry absolutely heritable and alienable. Thus, not only that there was no restriction, the absolute and unrestricted right of the assignee was made clear in the order and in the subsequent patta dated 30.10.1973 issued in respect of the assigned land wherein also it was specifically incorporated that the 'land assigned shall be heritable and alienable'. Under sub-rule (1) of Rule 8 of the Kerala Land Assignment Rules, 1964 it is provided that land assigned shall be heritable and alienable. However, under sub-rule (1A) of Rule 8 it is provided that in cases of unoccupied lands assigned on registry, the same shall not be alienable for a period of three years from the date of registry. In other words, the only restriction on land assigned as per the said Rules is that the assigned land shall not be alienable, if it is unoccupied with reference to the purpose of assignment, for a period of W.P.(C) No.3258/2008, etc. - 13 - three years. W.P.(C) No.3258/2008, etc. - 14 - 7. The Government had framed another set of Rules, namely Assignment of Government Land for Industrial Purposes Rules, 1961. However, those Rules may not apply to the present case since the same is meant for assignment of Government lands in Development Areas for industrial purposes. 'Development area' is defined under Rule 2(d) of the said Rules as ..... 'of lands acquired by Government for the purpose of the industrial development of an area'. In this case the land is not acquired for the industrial development of the area, but acquired for the purpose of setting up a Machine Tools Factory by the HMT. Though initially the Government in the order dated 31.7.1964 had attempted to treat the acquired land as 'development area' as provided under Rule 2(d) referred to above, and though the assignment was sought to be made under Rule 23 of the said Rules, it appears, after eight years, by 1972, the whole idea changed and thus by Ext.R1(a), it was assigned on registry free from all encumbrances and with absolute ownership to the assignee as heritable and alienable. That the assignment is not under the Assignment of W.P.(C) No.3258/2008, etc. - 15 - Government Land for Industrial Purposes Rules, 1961 is clear also from the fact that there was no restriction in the assignment as mandated under Rule 11 which reads as follows: “11. Land assigned under these Rules shall be heritable but it shall not be alienated or encumbered any manner without the prior permission in writing of the Government.” Thus the land has vested absolutely with the HMT and the HMT has become absolute owner and title holder of the property in view of Ext.R1(a) assignment in 1972 and the consequent and subsequent patta (title). It is significant in this context to note that the Government had not realized any land value from HMT which is a mandatory requirement under Rule 8 of the Assignment of Government Land for Industrial Purposes Rules. For HMT the assignment was free of cost. Such an arrangement was done by the Government of Kerala on the request of the Government of India in view of its decision to establish the Machine Tools Factory in the Central Sector in Kerala. It is also pertinent in this context to note that the cost of acquisition was treated as a 'new service' and debited to a