The Requisitioning and Acquisition of Property Act, 1981 (Act 27 of 1981)

THE KER/\LA REQUlSITlONlNG AND ACQUISITION
OF PROPERTY ACT, 1981
(Act 27 of 1981)
r5. CONTENTS
‘
. Preamble :
‘ Sections :
1. Short title, extent and commencement.
Definitions.
Power to requisition property.
Power to take possession of rcquisitioned property.
Rights over requisitioncd property.
Release from requisitioning.
Power to acquire requisitioned property.
Principles and method of determining compensation in cases where
immovable property is requisitioncd or acquired.
Q 9‘ Payment of compensation relating to immovable property.
jfl——————— WNDL‘V-FWEQ
10. Appeals from awards in respect of compensation.
11. Government and officers and authorities to have certain powers of
certain civnl courts.
12. Principles and method of determining compensation in cases whore
movable property is requisitioncd are acquired.
13. Power to obtain information.
14. Power to enter and inspect.
15. Service of noriccs and orders.
16. Easement not to be disturbed.
l7. Delegation orpowcrs
18. Protection of action taken in good faith.
‘
. 19. Bar ofjurisdiction of civil courts.
20. Penalty for ofl‘cnees.
’
21 . Certain persons to be public servants.
22. Power to make ru1rs.


187
THE KERALA REQUISI FIONING AND ACQUISITION
OF PROPERTY ACT, 1981*
(Act 27 or 1931)
An Act to provide far the nquinlioning and acquirilion afpmpnly for public purpam
not bamg purpose: of the Untnn.
Preambln—Wrmkms it is expedient to provide for the rcquisitioning
and acquisition of properly for public purposes, not bring purposes of the
Union;
Br: it enacted in the Thirty-second Year of the Republic of India as
follows:—
1 Short title, extent and commenmment.—( 1) This Act imy be called the
Kerala Requisrtioning and Acquisition of Property Am, 1981.
(2) It extends to the whole of the State of Kerala.
(3) It shall come into force at once.
2. Definition—In this Act, unless the context otherwise requires,—
(a) “award" means any award of the District Collector made under
section 8;
(b) “landlord" means any person who for the time being is receiving
or is entitled to receive, the rent of any premises, whether on his own
account, or on account or on behalf or for the benefit, of any other person
or as a trustee, guardian or receiver for any other person, or who would so
receive the rent or be entitled to receive the rent if the premise: were let to
a tenant;
(c) the expression “person interested", in relation to any property-
includes all persons claiming, or entitled to claim, an interest in the
compensation payable on account of the requisitionlng or acquisition of that
. property under this Act;
(d) “promises” means any building or part of :1 building and
includes—
(i) the garden, grounds and out-houses, ifany, appertaining to
such building or part of a building;
(ii) any fittings aifixed to such building or part ofa building for
the more beneficial enjoyment thereof,
(c) “prescribe
"
means prescribed by rules made under this Act;
(f) “property" means movable or immovable property of every kind
and includes any rights in or over such property;
*Received the assent of the Governor on the 26111 day of September,
1981 and published in the Kcrala. Gazette Extraordinary No.767
dated the 29th September, 1981.
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188
(g) "Slate” means the State of Kcrala ;
(h) “tenant" means any person by whom or on whose account 1’an lS
payable for any premises and includes such sub tenants and other persons as
have derived title under the tenant under any law for thetime being to force.
3. Power to requisition [impugn—(i) Where the Government are of
opinion that any property is needed or likely to be needed for any public
purpose, not being a purpose of the Union, and that the property should be
requisitioncd, the Govemment—
(a) shall call upon the owner or any other person who may be m
possession ofthe property, by notice in writing (specifying therein the purpr so
of the requisition) to show cause,—
(i) in the case of immovable property, within fifteen clays, and
(ii) in the case of movable property, within five days,
of the date ofservice of such notice on him, why the property should
not be requisttioned.
(b) may, by order, direct that neither the owner of the property nor
any other person shall, Without permission of the Government, dispose of,
or sttucturally alter, the property or let it out to a tenant until the expiry of
such period, not exceeding two months, as may be specified in the order.
(2) If, after considering the cause, if any, shown by any person
interested in the property or in possession thereof, the Government are
satisfied that it is necessary or expedient so to do, they may. by order in
writing, requisition, the property and may make such further orders as appear
to them to be necessary or expedient in connection With the requisitioning 1
Provided that no property or part thereof—
(a) which is bum; ftde used by the owner thereof as the residence of
himself or his family ; or
(b) which is exclusively used either for religious Worship by the public
or as a school, hospital, public library or an orphanage or for
the purpose of accommodation of persons connected with the
management of such place of worship or such school, hospital,
library or orphanage,
shall be rcquisitioned :
Provided further that where the requisitioned property consists of
premises which are being used as a reStdcnce by a tenant for not less than
two months immediately preceding the date of the service of notice under
subsection (I), the Government shall provide such tenant wtth alternative
accommodation which in their opinion is suitable.
4. Power 20 take possession of requisitioned prnperI}.—( I) Where any
property has been requisitioncd under section 3, the Government may. by
notice in writing, order the owner as well as any other person who maybe its
possession of the property to surrender or deliver possession thereof to the
Government or any person duly authorised by them in this behalf within
such time as may be specified in the notice.
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189
(2) If any person refuses or fails to comply with an order made under
subsection (1), the Govemment or any person duly authorised by them in
this behallmay take pOSSCSSiOn of the propeity and may, for that purpose,
use such force as may be necessary.
5. Rig/xix mm iequirittoned property—(1) All property rcquisitioncd
under section 3sliall be used for such purposes as may be mentioned iii the
notice of requisition.
(2) Where any premises are iequisitioned under section 3, the
Government may, after notice, 0idcr the landlord to execute such repairs
as may be necessary and are usually made by landlords in that locality and
as may be specxfiediii the notice, within such reasonable time as may be
mentioned_thercm, niidil thelandlom lails so execute any repairs inpursuance
of such order, the Government may cause the iepairs sprcificd in the order
to be executed at me expmse of the landlord and the cost thereof may,
without prejudice to any other mode of recovery, be dvductcd from the
compensation payable to the landloul.
6. Release from ”Minimizing—(l) The Govcriimcntmny, at any time,
release from requisition any property requisitioned under this Act and shall,
as far as pOSSlblC, restore the property in as good a condition as it was when
possession thereof was taken subject only to the changes caused by lcasonnblc
wear and tear and irresmible force :
Provided that where the purposes for which any requisitioncd property
was being used cease to extst, the Government shall, unless the property is
acquired under section 7, release that property, as soon as may be, from
requisition.
(2) Where any property is to be released from requisition, the
Government may, after such inquiry, if any, as they may in any case consider
necessary to make or cause to be made, specify, by order in writing, the
person to whom possession of the property shall be given and such possession
shall as far as practicable, be given to the poison from whom possession was
taken at the time of thr- requisition or to the succe-sors-m-iiiteiinst of such
perSon.
(3) The delivery of possession ol'tlic property to the person spemfied
in an order under subsection (2) shall be a full discharge of the Government
from all liability in respect of the property, but shall not preludice any
rights in respect ofthe property which any other person my be entitled Dy
due process oflaw to eiilorce againit the person to whom possession ol'tlie
property is given.
(4-) Where any person to whom possession of any requiSitiuned
property is to be given is not found and has no agent or other person. cm-
pnwcred to_acccpt delivery on his behalf, the Governmentshall cause 21 none:
declaring that the property is released from requismon to be published in
the Gazette or in two dnilyii :wspapers haying Wide Circulation in the locality
iind in the case of immovable property such notice shall also be allixed on
some conspicuous part of the property.

190
(5) When a notice referred to in sub-section (4) is published
as required by that sub-section, the property specified in such notice shall
cease [0 )e subject to requisi ion on and from t e date of such publication
and shall be deemed to have been delivered to the person entitled to posses-
sion thereof and the Government sha ll not be liable for any compensation
or other claim in respect of the property for any period after the said date.
(6) Where any property requisitioned under this Act or any
material part thereof is wholly destroyed or rendered substantially and
permanently untit lor the purpose for which it was requisitioticd by reason
of tire, earthquake, tempest, flood or VlolCflCC of any army or at a mob or
other
arresrstiblc
force, the requisition shall, at the option ofthc Government,
bevoi :
Provided that the benefit of this sub-section shall not be available to the
Government—
(1) where the injury to such property is caused by any wrongful act
or default of the Government, or
(ii) where such injury to such property would not have been
caused but for the requiSition.
7 Power to acquire requtsztzoned prepay-4 1) Where any property is
subject to requisition, the Government may, it they are of opinion that it is
necessary to acquire the property for a public purpose, nnt being a purpose of
the Union, at any time vauirc such properly by publishing in the Gazette
a notice to the effect that the Government have decided to acquire the
property in pursuance of this section :
Provided that before issuing such notice, the Government shall call
upon the owner of, or any other person who, in the 'opinion of the Govern-
ment, may be interested in, such property to show cause, why the property
should not be acquired; and aiter considering the cause, if any, shown by
any person interested in the property and after giving the parties an opport-
unity ol being heard, the Government may pass such orders as they deem fit.
(2) When a notice as aforesaid is published in the Gazette, the
requisitioned property shall, on and from the beginning of the day on which
the nutice is so published, vest absolutely in the Government free from all
encumbrances and the period of rcquismon of such property shall end.
(3) No property shall be acquired under this section except in the
followmg Circumstances, namely :—
(a) where any works have, during the period of requisition,
been constructed on, in or over, the property wholly or partially at the ex-
pense of the Government and the Government decide that the value of, or
the right to use, such works should be secured or preserved for the purposes
of Government ; or
(b) where the c05t of restoring the property to its condition at the
time of its requismon would, in me determination of the Government, be
excessive and the owner declines to accept release from requisition of the
property Without payment of compensation for so restoring the property.

OJ.
191
(4) Any decision or determination of the Government under sub-
section (3) shall be final and shall not be called in question in any court.
(5) For the purposes of clause (a) oisub-section (3) , “works" includes
buildings, structures and improvements of every description.
8. Principles and milled of determining compensation in am: when immovable
property is iequinlioned or «matted—(I) Where any immovable property is
requisitioned or acquired under this Act, there shall be paid compensation
the amount of which shall be determined in the manner and in accordance
with the principles hereinafter set out, that is to say,—
(a) where the amount of compensation can be fixed by agreement,
it shall be paid in accordance with such agreement ;
(h) where no such agreement can be reached, the Government shall
within two months of taking possession of the property under section 4,
or of the publication of the notice under sub-section (1) of section 7, as the
case may be, direct the District Collector wirhln whose jut lltllcl ion the pro-
perty is situate to determine the amount of compensation ;
(c) on receipt of a direction under clause (b), the District (lollector
shall after such inquiry as may be prescribed and such further inquiry as he
considers necessary, make an award determining the amount of compensa-
tion which appeais to him to be just and specifying the person or persons to
whom such compensation shall be paid, and in making the award, he shall
have regard to the circumstances of each case and the provisions at gun.
sections (2) and (3), so far as they are applicable 3
(d) where there is a dispute as to the person or persons who are
entitled to the compensation, the District Collector shall dCCide such dispute
and if the District Collector finds that more persons than one are entitled
to compensation, he shall apportion the amount thereol'ainong such persons.
(2) The amount of compensation payable for the requisiiioning of anyimmovable property shall consist of
——
(a) a recurring payment, in resplct of the period or requisition of
a sum equal to the rent which would have been payable for the use and
occupation of the immovable property if it had been taken on lease for that
period; and
(b) such
sum or sums, if any, as may be found necessary to compen-
sate the person interested for all or any ol the followmg matters, namely :—
(i) pecuniary los: due to requisitioning ;
(ii) txpenses on account of vacating the requisitioncd premises ;
(iii) expenses on account of re-occupying the premises upoii ielcnse
from requisition ; and
(iv) damages (other than normal wear and tear) caused to the
immovable property during the period of requisition, includingthe expenses that may have to be ”curred for restoring the
same to the condition in which it was at the time of
requisition.

192
(3) The compensation payable for the acquisition of any immovable
property under section 7 shall be the price which the requisition-:d immova-
ble property would have fetched in th“ open market, if it had remained in
the same condition as it was at the time of requisitioning and been sold on
the date of acquisition.
9. Payment of compensation relating [i immovable property -(1) The amount
of compensation payable under an award shall, subject to any rules made
under this Act, he paid by the Government to the person or persons entitled
thereto in such manner and Within such time as may be specified in the
award.
(2) The amount of compensation payable under an award shall carry
interest at the rate of six per cent per annum from the date- on which it is
speCified as payable in the award.
10- Appeal: from awardslm respect of [DmfiEflmllOlL—(l) Any peison
aggrieved by an award of the District Collector made under section 8 may,
Within sixty days from the date of such award, prefer an .tppeal to the
District Court within whose jurisdiction the immovable property is situate :
Provided that the Dtstrict Court may enteitain an appeal after the
expiry of the said period of sixty da 5, if it is satisfied that the appellant was
prevented by suiticrent cause trom filing the appeal in time.
(2) On receipt of an appeal under subsection (1), the District Court
shall, after such inqutry as it deems necessary, pass sucli orders on the appeal
as it thinks fit.
(3) An ordei of the District Court under subsection (2) shall be final.
ll . Government and officers and authonlm lo haw: certain power: of civil tour/3.—
The Government or any oflicer or authority empowered by the Government
under subsecnon (l) of section 17 or the Distiict Collector, while holding
an inquiry under this Act, shall have all the powers ofa etvil court while
trying a suit under the Code ol Civtl Procedure, 1908 (Central Act 5 of
1908), in respect of the tollowing mattu‘s, namely :—
(a) summoning and rnlorci-ig the attendance of any person and
examining him on oath ;
(b) requiring the discovery and production of any document 3
(c) reception at thdcnce on aflidaVits ;
(d) requisitioning any public record from .my court or office ,
(c) issuing commissions for examination of witnesses.
l2. Pmtuplzs and method of determining compensation in mm when moi/able
property it requmnontd or fltqulffd.—\VhPrL any movable property is reqUi-
sitiontd or acquired under this Act, the compensation payable therefor and
the person or persons to whom it should be paid shall be determind in
accordance with the rules to be made in this behalf by the Government :
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193
Provided that the rules so made for payment of compensation shall,»—
(a) in respect of movable property requisitionud, provide for payment
of rent or other return which the property would normally fetch if so allowed
to be used ; and
(b) in respect of movable property acquired, provide for payment of
compensation at the market rate prevailing on the date of acquisition.
13. Power to obtain informalwm—The Government may, with a view to
carrying out the purpmes of section 3 or section 6 or section 7 or section 8
or section 12, by order, require any person to furnish to such oiliccr, us may
be specified in the order, such information in his possession as may he speci-
fied relating to any property winch is requisitioned or acquired, or intended
to be reqmsitroned or acquired, under this Act.
14. Power to Euler and inspect.——-Any ofl‘icer, empowered in this behalf by
the Government by general or special order, may enter and inspccl any
property for the purposes of determining whether and if so, in what manner,
an order under this Act should be made in relation to such property or with
a View to securing compliance with an order made under this Act.
15, Service ofnotzm and ardrrr.——(l) Subject to the provisions of this
section and any rules that may be made under this Act, every notice or order
issued or made under this Act shall,“
(a?
in the case of any notice or order of a general nature or affecting :1
class 0 persons, be published in the Gazette ; and
(b) in the case of any notice or order allectmgan individual, corporation
or firm, be served in the manner provided for the service of summons in rule
2 of Order XXIX or rule 3 of Order XXX, as the case may be, in the First
Schedule to the Code of Civil Procedure, 1908 (Central Act 5 oi 1908) ; and
(c) in the case ofany notice or order affecting a person (not being a
corporation or firm), be served on such person—~—
(i) by delivering or tendering it to that person; or
(ii) if it cannot be so delivered or tendered, by delivering or tendering
it to any officer of such person or any adult male member of the family of
such person, or by affixing a copv thereof on the outer door or on some con.
spicuous part of the premises in which that person is known to have last
resided or carried on business or personally worked for gain; or
(iii) failing service by these means, by registered post.
(2) Where the ownership of the property is in dispute or where the
persons interested in the property are not readily traceable and the notice
or order cannot be served wtthout undue delay, the notice or order may be
served by publishing it in the Gazette, and where possible, by aflixmg a
copy thereof on any compicuous part of the property to which it relates,
16 Easement nat ta be dulurbedr—No person interested in any immovable
property requisitioned or acquired under this Act shall, Without the
previous written consent of the Government or except for the purposes of

194
eff cting repairs or complying with a municipal requirement, wilfully dis-
turb any convenience or casement attached to such property or remove,
destroy or render unserviceable, anything provided for permanent use there—
with or discontinue or cause to be discontinued any supply or service
provided for the property.
l7. Delegation quowam—(l) The Government may, by notification in
the Gazette, direct that any power conferred on them by or under this Act
Lllall, in such circumstances and under such conditions, if any, as may be
specified in the notification, be exercisable also by an oliicer or authority
subordinate to the Government.
(2) All notifications issued under subsection (1) shall be laid, as soon
as my be possible, before the Legislative Assembly.
{3) An appeal shall lie to the Government from any decision made
by the officer or authority subordinate to the Government to whom powers
have been delegated under subsection (1).
18. Protection of action taken in goodfaith—(1) No suit, prosecution or
other legal proceeding shall lie against any person for anything which is in
good faith done or intended to be done in pursuance of this Act or any
order made thereunder.
(2) No suit or other legal proceeding shall lie against the Government,
any officer or authority for any damage caused or likely to be caused b y
anything which is in good faith done or intended to be done in purSuancc
.
of this Act or any order made thereunder.
19. Bar ofjurisdiction of :iml caurtL— Save as otherwise expressly provided
in this Act, no civil court shall have jurisdiction in respect of any matter
which the Government or the District Collector is empowered by or under
this Act to determine.
20. Penalty for offenteL—Whoever contravenes any provision of this Act :1
or any rule made thereunder, or any order made or direction given under
this Act, or obstructs the lawful exercise of any power conferred by or under
this Act, shall be punishable with imprisonment for a term which may
extend to three months, or with fine which may extend to two thousand
rupees, or with both.
21. Ctrtom pmons to In publto .rmants.~The District Collector and every
officer empowered by the Government, while exercising any power or per—
forming any duty under this Act, shall be deemed to be a
(public
servant
within the meaning of secrion 21 of the Indian Penal Code ( entral Act 45
of 1860).
22. Pawn to make rult:.—(1) The Government may, by notification in t1 e
Gazette, make rules for carrying out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the fore-
going power, such rules may provide for all or any of the follo .ving matters,
namelyz— . _
(a) the procedure to be followed by the Government in rmltmg
inquiries under section 3 or section 6;

I95
tb) the procedure to be followed by the District Collector in making
inquiries under section 8:
'
(c) the principles to be followed in determining the ameuut of
compensation and method of payment of such compensation;
(d) the principles to be followed in apportioning the cost of proceed-
ings before the District Collector and on appeal under this Act;
(el the manner of service of notices and orders,
(f) any other matter which has to be, or may be, prescribed.
(3) Every rule made under this section shall be laid, as soon as may be
after it is made, before the Legisiativc Assembly while it is in session for a
total period of fourteen days which may be comprised in one session or in
two successive sessions and if‘ before the cxpity of the session m which it is
so laid or the session immediately following, the Legislative Assembly
makes any modification in the rule or decides that the mic should not be
made, the unit shall thereafter have elfcct only in such modified form or he
of no effect, as the case may be; so however that any such modification or
annulment shall be without prejudice to the validity of anything previously
done under that rule.
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