Case Name: State of Kerala & Ors. vs. Moushmi Ann Jacob
Case Number: SLP(C)Nos.25736-25737 of 2023
Date: February 20, 2025
Quorum: Justice Sanjay Karol.
FACTS OF THE CASE
The controversy arose following Moushmi Ann Jacob, proprietor of 14.57 acres of property in Karikode Village, Thodupuzha Taluk, submitting an application for change of land use category from paddy land to enable him to obtain an education loan in the year 2019. The case was regulated by the Kerala Conservation of Paddy Land and Wetland Act, 2008, which prescribes land conversion and charges for the same. A government notice issued earlier had excluded payment of fees for reclamation of land initially registered as paddy land, but there was a controversy in law on the proper interpretation of this exclusion.
ISSUES
Whether the exemption of payment of the land conversion fee is limited to **merely 25 cents of land or is applicable to the entire landholding?
How the legal provisions of the Kerala Conservation of Paddy Land and Wetland Act, 2008, and the rules governing thereunder govern the calculation of the conversion fee.
Relevant Legal Provisions?
LEGAL PROVISIONS
1. Kerala Conservation of Paddy Land and Wetland Act, 2008 – The act regulates reclamation and conversion of paddy land and wetlands subject to conditions and fees thereon.
2. Rule 12(9) of the Kerala Conservation of Paddy Land and Wetland Rules, 2008 – To the extent that owners of lands are exempted from fee payment for lands up to an extent of 25 cents. But in the case of lands measuring an extent of above 25 cents but up to 1 acre, the fee is 10% of fair value of the land.
ARGUMENTS BY THE PARTIES
Arguments by Appellant
The State argued that the exemption is for land worth up to 25 cents only, and where the value of the land exceeds this amount, the fee ought to be imposed on the entire land, rather than on land worth more than 25 cents. It based its argument on Rule 12(9), whereby it was held that if the landholding is more than 25 cents, then the fee should be computed for the whole area and not for the surplus area alone.
Arguments by Respondent
The respondent argued that there was to be no charge imposed for the initial 25 cents, and the charge was only to be imposed on the land above this figure, as per the High Court decision. She also argued that the rectification of an error entry in the official record concerning the classification of land was a technicality and should not affect her right to apply for land conversion.
ANALYSIS
The Supreme Court in State of Kerala & Ors. vs. Moushmi Ann Jacob clarified that the land conversion fee exemption applies only to plots up to 25 cents. If the landholding exceeds this, the fee is imposed on the entire land. The ruling ensures the law benefits small farmers while preventing large-scale land conversions.
JUDGEMENT
The Supreme Court reversed the High Court’s decision and ruled in favor of the State of Kerala. The Court categorically stated that:
Exemption of the fee is only applicable on plots of up to 25 cents.
If the land holding is over 25 cents, then the fee has to be imposed on the entire area and not on the area over 25 cents.
The purpose of the provisions of law was to exempt small farmers who own small holdings and not large farmers who wish to convert large areas of land.
CONCLUSION
In its judgment in State of Kerala & Ors. vs. Moushmi Ann Jacob (2025 INSC 255), the Supreme Court clarified the uncertainty on the Kerala Conservation of Paddy Land and Wetland Act, 2008. The judgment held that land conversion charges have to be computed on the extent of the whole land whenever the extent is above 25 cents, thus defining the ambit of exemption.
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WRITTEN BY SHIVRANJNI
