Justice A Mohammed Musthaq granted four months time to the government to conduct an inspection and take a final decision.
The direction in this regard was issued while considering writ petitions filed by HML, challenging proceedings for eviction under the Land Conservancy Act.
The court said if a person is in legal possession of land, proceedings under Land Conservancy Act cannot be initiated. Only after categorising the property as government land can action be taken against occupants, it said.