Supreme Court Ridicules ‘Socialism at its Peak’ in Kerala, Citing Land Act Misuse

The Supreme Court, with a sarcastic observation, stated that socialism is at its peak in Kerala. The court’s remark came during a ruling that land leased to the Indian Oil Corporation for a petrol pump should be returned to its original owner, suggesting that even large corporations might be considered tenants under the provisions of the Land Reform Act. The bench, led by Justice B.V. Nagarathna, also emphasized that the Land Reform Act should not be misused for the benefit of corporates.

In 1994, the owner approached the court seeking the return of 20 cents of land in Elamkulam Village, Ernakulam, which had been leased to Indian Oil. However, both the Land Tribunal and the trial court initially rejected this plea, arguing that Indian Oil Corporation was entitled to the benefits of Section 106 of the Land Reform Act. Subsequently, the High Court ordered the return of the land, a decision challenged by Indian Oil Corporation in the Supreme Court. The Supreme Court upheld the High Court’s verdict and ordered that the land be handed over to the owner within six months.

The court questioned the rationale behind extending such protection to land used for commercial and industrial purposes, stating that it would have been understandable if the land was designated for agricultural use. The Supreme Court strongly criticized the misuse of Section 106 of the Land Reform Act, which provides protection to tenants of commercial and industrial land. This particular section protects those who constructed buildings on such land before 1967 from eviction.