Kerala HC Closes Appeal in Nedumbala Estate Acquisition After Govt. Drops Move Under Disaster Management Act

The Kerala High Court has closed the writ appeal filed by Harrisons Malayalam Limited challenging the State Government's decision to acquire the Nedumbala Estate in Wayanad for rehabilitation purposes under the Disaster Management Act, 2005.

The Division Bench comprising Justice A. Muhamed Mustaque and Justice Harisankar V. Menon disposed of the appeal after the Government modified its earlier order and excluded the estate from acquisition for the time being.

The proceedings arose from a writ petition originally filed by Harrisons Malayalam Ltd. before the High Court questioning the legality of the State Government's order that sought to take over the Nedumbala Estate, invoking its powers under the Disaster Management Act.

The single judge had dismissed the writ petition on December 27, 2024, upholding the Government's decision, which led the petitioner company to approach the Division Bench in appeal.

During the pendency of the appeal, the State Government issued a fresh Government Order (G.O.(MS) 3/2025/DMD dated 28.02.2025), which was produced before the Court. As per the order, the Nedumbala Estate was excluded from the scope of immediate acquisition, though the Government reserved its right to initiate fresh proceedings in future should exigencies under the Disaster Management Act warrant such action.

The Division Bench recorded the contents of the Government Order and noted that since the appellant’s land was currently spared from being acquired, the company could not be said to be an aggrieved party at this stage. The Court observed that if in future the Government requires the estate for rehabilitation or related purposes, it would be free to issue a fresh notice and proceed in accordance with law.

Holding that the substratum of the litigation no longer survived, the Court declared that the judgment of the single judge dated December 27, 2024 stood recalled as against the appellant. The Bench clarified, however, that the legal issues raised by the petitioner regarding the scope of the Disaster Management Act in relation to estate acquisitions remain open for determination in future proceedings.

The Government Order produced before the Court outlined the State's decision making process. It noted that while the estate was initially identified for use in rehabilitation measures, the matter had been reconsidered, and the decision was taken to keep the acquisition in abeyance. The order expressly reserved the Government's authority to act under the Disaster Management Act, 2005, should circumstances demand.

Brief Background

The dispute over Nedumbala Estate traces back to the State’s rehabilitation and disaster management efforts in Wayanad district.

The estate, owned by Harrisons Malayalam Ltd., was among the properties identified by the authorities for temporary housing and rehabilitation of displaced persons. The Government had sought to take over the estate by invoking its extraordinary powers under the Disaster Management Act, citing the need for urgent land allocation for relief and rehabilitation activities.

Harrisons Malayalam Ltd., a major plantation company, objected to this move and approached the High Court through Writ Petition (C) No. 36436 of 2024.

The company contended that the acquisition was arbitrary, lacked statutory basis under the Disaster Management Act, and adversely affected its proprietary rights. The single judge, however, upheld the Government’s authority, ruling that in disaster management scenarios, the Act conferred wide powers on the State to ensure effective rehabilitation measures.

Consequently, the company filed Writ Appeal No. 109 of 2025 before the Division Bench. The appeal centered on whether the Government could lawfully invoke provisions of the Disaster Management Act to take over private plantation lands for rehabilitation without following acquisition procedures under other land laws.

The appeal, however, lost its immediate relevance when the Government issued the February 2025 order excluding Nedumbala Estate from acquisition. With the order in effect, the Bench found no surviving cause for adjudication and closed the matter, while making it clear that the State retains its power to revisit the question if future exigencies arise.

Case Title: M/s. Harrisons Malayalam Ltd. v. State of Kerala & Ors.

Date of judgment: August 25, 2025

Bench: Justices A. Muhamed Mustaque and Harisankar V. Menon