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Issues involved: Validity of executive order for alienation of land acquired for public purpose u/s Land Acquisition Act and Kerala Land Assignment Act, 1960.
Validity of Executive Order under Kerala Land Assignment Act, 1960: The appeal arose from a judgment of the Kerala High Court regarding the sale of land acquired for a national highway construction. The High Court declared the executive action invalid under the Kerala Land Assignment Act, 1960, as it was in contravention of the Act. The Government sought to sell the land to the erstwhile owner, but the High Court ruled that any assignment should be for a public purpose. The Court emphasized that if there is no public purpose for the land, it should be auctioned for the benefit of the public, as per the Directive Principles of the Constitution. Assignment of Land Acquired under Land Acquisition Act: The Supreme Court noted that the land in question was acquired under the Land Acquisition Act and vested in the State free from encumbrances. The key issue was whether the Government could assign the land to the previous owners. It was established that once the public purpose for which the land was acquired had been fulfilled, the remaining land could be used for any other purpose. However, in this case, the executive order was found to be invalid as it did not align with the provisions of the Kerala Land Assignment Act, 1960. The Court upheld the High Court's decision to declare the executive order invalid and emphasized that any assignment of government land should be for a public purpose or through public auction to maximize public benefit. Conclusion: The Supreme Court dismissed the appeal, affirming the High Court's decision to invalidate the executive order for land assignment. The Court highlighted the importance of ensuring that any land assignments serve a public purpose or are conducted through public auctions to maximize the value for the public. No costs were awarded in the case.
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