PURAVANKARA PROJECTS LIMITED Vs. HOTEL VENUS INTERNATIONAL

JUDGEMENT

(1.) The legal impact of S.81(3)(b) of the Kerala Land Reforms Act, 1963 on the underlying contract between the parties, is the question that has come up for consideration in these cases.

(2.) Government of Kerala by its order dated 27-7-2000 had accorded sanction for the Vypin Bridges Project to Goshree Islands Development Authority at a cost of Rs. 84 crores as a self financing scheme. Construction work including reclamation of 25 hectares of kayal land in Marine Drive was entrusted with the Cochin Port Trust and Goshree Islands Development Authority (for short G.I.D.A) and G.I.D.A will have to pay the cost of reclamation to Cochin Port Trust by selling the land reclaimed. State Government as per order dated 22-8-2001 had accorded sanction to assign 25 hectares of kayal puramboke land comprised in survey No. 843 of Ernakulam village to G.I.D.A for Vypin Bridges Project subject to the rules governing assignment of land in Municipal Corporation area without realising the land value. Tripartite agreement between Cochin Port Trust, G.I.D.A and Government in the Local Self Government Department was executed on 21-4-2002. Clause.9 of the agreement provides for permitting G.I.D.A to sell 25 hectares of reclaimed land in full or in part subject to prior approval of the Government regarding the extent and price of the land. Government later by its order dated 7-1-2003 accorded sanction to G.I.D.A to sell in public auction 25 hectares of reclaimed land comprised in survey number 843 of Ernakulam Village in part or in full. G.I.D.A on the basis of the sanction obtained from the Government had tendered reclaimed land previously on three times. Subject matter of these cases is with regard to the fourth auction. Pre bid meeting was also conducted on 1-9-2004 prior to the third public auction wherein Secretary, G.I.D.A had pointed out that regarding holding of more than 15 acres of land by a single person, as per the provisions of the Land Ceiling Act Government is empowered to give exemption. Due to poor response third public auction did not materialise.

(3.) G.I.D.A issued fourth global tender notice dated 10-1-2005. Notification invited sealed and competitive tenders for 5196 cents either in part or in full (four options available) at the northern extension of Marine Drive, Kochi with a waterfront stretch of 1.5 kms. Tender notification also stipulated that pre bid meeting would be held at 3 p.m. on 10-2-2005 at Taj Residency, Marine Drive, Kochi. Pre bid meeting was accordingly held on 10-2-2005 as scheduled. Rules and regulations of the tender and the different terms were explained by the Secretary, G.I.D.A. One of the queries raised at the pre bid meeting was with regard to the general exemption to be obtained from the Government under S.81(3)(b) of the Kerala Land Reforms Act and it was pointed out that the same would be obtained in a few days. Petitioner and others had participated in the pre bid meeting. Later tender documents were received on payment of Rs. 10,000. Petitioner had submitted tenders in three different names.