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Raja Bahadur Kamakshya Narainsingh And Others v. The Collector And Deputy Commissioner Of Hazaribagh And Others

Raja Bahadur Kamakshya Narainsingh And Others
v.
The Collector And Deputy Commissioner Of Hazaribagh And Others

(Supreme Court Of India)

Writ Petition No. 217 Of 1955 | 28-10-1955


Imam, J.

1. The petitioners have filed this application under Art. 32 of the Constitution claiming that the buildings and lands as set out in the Schedule annexed to the petition and marked "A" (hereinafter referred to as the disputed properties) did not vest in the State of Bihar under the provisions of the Bihar Land Reforms Act, 1950 (hereinafter referred to as the Act). Petitioner No. 1 in his individual capacity was at one time the owner of the disputed properties which lie within Touzi No. 28 of the Collectrate of Hazaribagh. On 29-12-1947 petitioner No. 1 as owner leased out the disputed properties to a Company known as Mineral Development Ltd., (hereinafter referred to as the company). The Company book possession of the disputed properties and has been paying rent.

On 7-4-1949 petitioner No. 1 in his individual capacity executed a deed of settlement whereby he transferred the disputed properties to three trustees, namely, himself and petitioners 2 and3. The Company has been paying rent to the trustees since then. The Act came into force on 25-9-1950. On 3-11-1951 the State Government issued a notification under S. 3(1) of the Act declaring that the estate of petitioner No. 1 in his individual capacity specified therein had passed to and become vested in the State.

One 26-10-1953 a notice under S. 4(h) of the Act was issued by the Collector to the Company, and on 4-3-1954 the State Government issued a notification under S. 3(1) of the Act purporting to vest in the State the properties covered by the above-mentioned deed of settlement and another deed of settlement with which we are not concerned. The Company instituted a title suit No. 33 of 1951 against the State of Bihar in the Court of the Subordinate Judge, Hazaribagh basing its claim on a mining lease executed by petitioner No. 1 in his individual capacity the genuineness of which was challenged by the State. Petitioner No. 1 in his individual capacity was made a party to this suit.

The Company also instituted a title suit No. 9 of 1954 against the State of Bihar to which petitioner No. 1 in his individual capacity was made a party challenging the legality of the issue of notice dated 26-10-1953 under S. 4(h) of the Act. On 11-11-1954 the State of Bihar filed title suit No. 53 of 1954 to which the Company, petitioner No. 1 in his individual capacity, the three trustees and others were made parties. By this suit the State of Bihar challenged the genuineness of the lease is favour of the Company and the deed of settlement in favour of the trustees.

2. The real question for determination is, what vested in the State on the publication of the notification under S. 3 and by virtue of the provisions of S. 4(a) of the Act According to Mr. Chatterjee the disputed properties did not vest in the State, whatever else may have. Having regard to the definition of "estate" in the Act, if anything vested in the State on the publication of notification it was the land comprised in the notified estate.

Although the disputed properties stood on the land in the notified estate, they did not vest in the State, because the definition of "estate" speaks of land only and not of any building on it. The notification under S. 3 was a mere declaration and actual vesting took place under S. 4(a). On the date of vesting the disputed properties were not used as office or cutchery for the collection of rent of the notified estate of petitioner No. 1, who had parted with his right, title land interest therein long before the Act was enacted and the publication of the notification under S. 3.

Mr. Sinha on behalf of the State of Bihar, on the other hand, consented that on a perusal of the provisions of Ss. 4, 5 and 7 of the Act, it would appear that the Act contemplated something more than the land in an estate vesting in the State and the disputed properties could and did vest in the State on the publication of the notification under S. 3.

3.In our opinion, it is of little consequence in the present case whether the notified estate vested in the State by reason of the publication of the notification under S. 3 or by virtue of the provisions of S. 4 of the Act, because in either case a vesting did take place. Although the word land is used in the definition of estate, the provisions of Ss. 4, 5 and 7 show the necessary intention to include something more than the land when an estate vests in the State.

Under S. 4(a) it is not only the estate but also building a certain description and other things which vest in the State absolutely, on the publication of a notification under S.3. Under Ss. 5 and 7 the buildings mentioned therein also vest in the State, because the buildings in question are deemed to be settled by the State with the intermediary in possession.This could only be on the supposition that these buildings vested in the State and the person in possession held the same as settlee under the State.

4. In the present case on the date of the publication of the notification under S. 3 the disputes properties were said to be in the possession of the Company as lessee and the petitioner No. 1 had no right, title or interest therein as he had transferred his lessors reversion to trustees by a dead of settlement. We may assume, therefore that on the date of publication of the notification the disputed properties were not used primarily as office or cutchery for the collection of rent of the notified estate of petitioner No. 1.

It becomes, therefore, necessary to interpret the word "used" occurring in S. 4(a). It is to be noticed that this clause of S. 4 does not expressly state that a building used primarily as office or cutchery for the collection of rent must be so used as the date of the publication of the notification. In this clause the words "used primarily as office or cutchery for the collection of rent of such estate" must be read in the light of the provisions of S. 4(h) where similar words are employed.

Under S. 4(h) the Collector has the power to make inquiries in respect of any transfer of any kind of interest in any building used primarily as office or cutchery for the collection of rent of such estate, if the transfer had been made at any time after the first day of January, 1946. If on due inquiry the Collector is satisfied that such transfer was made with the object of defeating the provisions of the Act or causing loss to the State or obtaining higher compensation, then the Collector may, after giving notice to the parties concerned and hearing them and with the previous sanction of the State Government, annual the transfer and dispossess the person claiming under it.

These provisions clearly indicate that if any building was used primarily as office or cutchery for the collection of rent and such building had been transferred after the first day of January, 1946, the transfer could be annulled if the circumstances mentioned in S. 4(h) had been established.That is to say, under these provisions the use to which the building was put previous to its transfer after the first day of January, 1946 and not thereafter was what the Collector was concerned with and not to what use it had been put after its transfer after the first day of January, 1946. To hold otherwise would be to make the provisions of S. 4(h) meaningless.

When a proprietor transfer any such building, it necessarily follows that the building thereafter was not used by him as office or cutchery for the collection of rent of his estate. If the transfer was made before the first day of January, 1946 the provisions of S. 4(h) would not apply and such a transfer would not be liable to be annulled and the building so transferred would not vest in the State on the date of the publication of the notification covering the estate on which such building stands.

If, on the other hand, this transfer was made after the first day of January, 1946, a building comprised in a notified estate, which was used immediately previous to the date of the transfer primarily as office or cutchery for the collection of rent of such estate the transfer would be liable to be annulled under S. 4(h) and it would vest absolutely in the State on the publication of the notification and the provisions of S. 4(a) must be read accordingly. It would be unreasonable to construe the provisions of S. 4(a) in the way suggested by Mr. Chatterjee. The scheme of the Act has to be borne in mind and the provisions of Ss. 4(a) and 4(h) have to be read together.

The petitioners had not asserted in their petition that the disputed properties were not used as office or cutchery for the collection of rent of the notified estate of petitioner No. 1 before the first of January, 1946 or before the lease in favour of the Company. On behalf of the State, on affidavit, it has been stated that the disputed properties were all along used as cutchery before the creation of the lease and that they were not being used in connection with any mining operation.

In our opinion, if as a result of the inquiry under S. 4(h) the transfer of the disputed properties by the petitioner No. 1 is annulled the disputed properties must be regarded as having vested in the State, because they were used as office or cutchery for the collection of rent previous to the transfers made by the petitioner No. 1.

5. It was next contended that S. 4(h) is ultra vires the Constitution, because it imposed in an unreasonable restriction on the fundamental rights of the petitioners to realize rent from the Company, as the transfer in its favour was imperilled by the notice issued to it under S. 4(b). No appeal or review was provided in the Act against the order of the Collector issuing notice or an order of annulment made by him.

The Collector was left with absolute power to annul a transfer and to dispossess a person in possession thereunder.Section 4(h), however, does direct the Collector to give reasonable notice to the parties concerned and to hear them. Such annulment to dispossession which he may order must be with the previous sanction of the State Government and he is compelled to do so on terms which may appear to him fair and equitable. The power is, therefore, not quite so absolute or arbitrary as suggested.

Assuming however, that the Collector has very wide powers, it is to be remembered that S. 4(h) is a part of the law of acquisition of estates as enacted by the Act and is an integral part of the machinery by which acquisition of an estate takes place. The Act is a valid law of acquisition and its whole purpose may be defeated unless there was some such provision as contained in S. 4(h). The Act being a law for acquisition of estates the question of it or S. 4(h) of it imposing any unreasonable restriction on the fundamental rights of the petitioners does not arise. In any event in Act including S. 4(h) is protected by Article 31-A of the Constitution.

6. The petition is accordingly dismissed with costs.

7. Petition dismissed.

Advocates List

For the Petitioners N.C. Chatterji, Senior Advocate, Vir Sen Sawhney, Ganpat Rai, Advocates. For the Respondents Lal Narain Sinha, Senior Advocate, Bajrang Sahai, S.P. Varma, Advocates.

For Petitioner
  • Shekhar Naphade
  • Mahesh Agrawal
  • Tarun Dua
For Respondent
  • S. Vani
  • B. Sunita Rao
  • Sushil Kumar Pathak

Bench List

HON'BLE ACTING CHIEF JUSTICE MR. S.R. DAS

HON'BLE MR. JUSTICE VIVIAN BOSE

HON'BLE MR. JUSTICE B. JAGANNADHADAS

HON'BLE MR. JUSTICE SYED JAFAR IMAM

HON'BLE MR. JUSTICE N. CHANDRASEKHARA AIYAR

Eq Citation

AIR 1956 SC 63

[1955] 2 SCR 988

1956 SCJ 118

1956 ALJ 158

LQ/SC/1955/90

HeadNote

A. Tenancy and Land Laws — Bihar Land Reforms Act, 1950 (11 of 1951) — Ss. 3(1), 4(a), 4(h), 5 and 7 — Vesting of buildings and lands in State — Buildings used as office or cutchery for collection of rent — Meaning of — Buildings used as office or cutchery for collection of rent of notified estate — Vesting in State — Effect of transfer of such buildings after 1-1-1946 — Effect of — Buildings and lands of disputed properties — Whether vested in State — Constitution of India, Art. 31-A