Full Judgment Text
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PETITIONER:
LAJPAT RAI AND OTHERS
Vs.
RESPONDENT:
STATE OF PUNJAB AND OTHERS
DATE OF JUDGMENT24/04/1981
BENCH:
KOSHAL, A.D.
BENCH:
KOSHAL, A.D.
ISLAM, BAHARUL (J)
CITATION:
1981 AIR 1401 1981 SCR (3) 590
1981 SCC (3) 94 1981 SCALE (1)930
ACT:
Punjab Security of Land Tenures Act (10 of 1953) Ss. 5,
5A and 5-B and Punjab Security of Land Tenure Rules 1956
Rule 4 and Form E-Intimation by landlord in Form E-Whether
amounts to selection of permissible area under S,. 5-B(1)
Prescribed authority whether can alter the same.
HEADNOTE:
Respondent No. 3, a displaced person from Pakistan, was
allotted more than 60 standard acres of land. Out of this
land he made an oral gift of some land in lieu of
maintenance to his wife, respondent No. 4, who sold that
land to the appellants.
In the proceedings for declaration of the surplus area
of the land owned by respondent No. 3 the Special Collector
included the land sold to the appellants in the "select
area" of Respondent No. 3. The appeal of Respondent No. 3 to
the Commissioner was dismissed as time-barred and this order
was upheld in revision by the Financial Commissioner.
A single Judge dismissed his petition under Article
226. In appeal, a Division Bench held that the order of the
Special Collector, directing a variation in the reservation
made by respondent No. 3 without his consent was not only
contrary to the provisions of the Act but was without
jurisdiction and a nullity in as much as the Act vested no
power of such variation in the Collector.
In the appeal to this Court it was contended on behalf
of the appellant, that: (1) the admission to the effect that
respondent No. 3 had intimated his reserved area in Form E
to the Collector before gifting the land to his wife was
made before the High Court on behalf of the appellants on
the basis of some misconception on the part of their
counsel, that actually no such reservation was ever made and
that the admission could at best be interpreted to mean that
respondent No. 3 had sent an intimation in Form E to the
Special Collector detailing therein the area selected by him
as his permissible area in pursuance of the provisions of
sub-section (1) of section 5-B of the Act, and (2) If no
reservation was made by respondent No. 3 the whole basis of
the impugned judgment falls and the Collector would have
jurisdiction to amend the permissible area of respondent No.
3 by way of adjustment of the equities arising in favour of
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the appellants.
Dismissing the appeal,
^
HELD: In assuming that respondent No. 3 had intimated
his reservation in pursuance of sub-section (1) of section
5, the High Court was in error
591
and the case had to be decided on the basis of the factual
position that respondent No. 3 had failed to make any
reservation under that sub-section but that he had made a
selection in Form E in pursuance of the provisions of sub-
section (1) of section 5-B. [600 H-601A]
The inclusion of the land in question in the surplus
area of respondent No. 3 does not effect the right of
ownership of the appellants. [604 A]
1. (a) Reservation of land was envisaged only in
section 5(1) of the Act and had to be intimated within six
months from the date of its commencement i.e. on or before
the 15th October, 1953. [599 E]
(b) No provision was ever made in the Act or the rules
framed thereunder for a reservation of land by a land-owner
who had failed to send an intimation thereof on or before
the 15th October, 1953. [599 F]
(c) What was provided by section 5-B was, that a
landowner who had not exercised the right of reservation
under the Act could select his permissible area and send
intimation thereof in Form E to the prescribed authority
within a period of six months from the 11th December, 1957
i. e. on or before 11th May, 1958. ’Reservation’ was
something different from the ’Selection’ of permissible
area. The two terms were not only not synonymous but were
mutually exclusive. ’Selection’ of permissible area was
allowed only to a landlord who had not exercised his right
of ’reservation’. [599 G-600 A]
(d) Form E was meant only for intimation of selection
of permissible area under sub-section (1) of section 5B and
not for reservation under sub-section (1) of section 5 which
could be made only through an intimation in the Form in
Annexure "B" to the 1953 Rules. [600 B]
2.(a) ’Surplus area’ is arrived at by excluding the
reserved area from the total area of a land-owner in case a
reservation has been made by him lawfully. (Clauses (4) and
(5-a) of section 2.) [601 C]
(b) Where no area has been lawfully reserved by the
land-owner, surplus area is worked out under section 5B or
5C. [601 D]
(c) Under section 5, the landowner is entitled to
reserve out of the entire land held by him in the State as
landowner, any parcel or parcels not exceeding the
permissible area by intimating his selection in the
prescribed form to the Patwari of the estates, etc. In doing
so he is legally bound to include in his reserved area such
land as conforms to the description of any of the 6
categories covered by clauses (a) to (f) of the proviso to
sub-section (1) of section 5. [601E]
(d) Once a reservation has been intimated within 6
months from the date of commencement of the Act, it cannot
be varied either by act of parties or by operation of law,
except with the written consent of tenant affected by such
variation. [601 F]
592
(e) If a land-owner has failed to reserve land in
accordance with the provisions of section 5 he has another
chance to select his permissible area within 6 months from
the commencement of the Punjab Security of Land Tenures
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(Amendment) Act, 1937. [601 G]
(f) The prescribed authority is given the power to
select the permissible area of a landowner under sub-section
(2) of section 5-B but the mandatory condition attached to
the exercise of that power is that it shall be resorted to
only if the landowner has failed to select his permissible
area in accordance with the provisions of sub-section (1) of
that section. In other words, if the concerned land-owner
has already selected his permissible area in accordance with
the provision of sub-section (1) of section 5-B, sub-section
(2) of that section does not come into play at all and there
is no occasion for the exercise by the prescribed authority
or the power of selection. [602 A-C ]
In the instant case Respondent No. 3 had made a
selection of his permissible area in accordance with the
provisions of sub-section (1) of section 5-B, a selection
which the prescribed authority had no power to vary either
under sub-section (2) of section 5-B or under any other
provisions of the Act. The order of the Special Collector
dated March 30, 1962 was therefore passed without
jurisdiction and was a nullity. [602 D-E]
Gurucharan Sing and Ors. v. Prithi Singh and Ors.
[1974] 1 S.C.C. 138, distinguished.
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1981-N
of 1970.
From the judgment and order dated the 21st May 1970 of
the Punjab and Haryana High Court in Letters Patent Appeal
No. 195 of 1966.
G.L. Sanghi, S.K. Metha, P.N. Puri and M.K. Dua for the
Appellants.
O.P. Sharma and M.S. Dhillon for the Respondents.
The Judgment of the Court was delivered by
KOSHAL, J. This appeal by certificate is directed
against the judgment dated May 21, 1970 of a Division Bench
of the High Court of Punjab and Haryana accepting a Letters
Patent Appeal and holding that in view of the provisions of
sections 5, 5-A and 5-B of the Punjab Security of Land
Tenures Act, 1953 (hereinafter referred to as the Act), the
concerned Collector had no jurisdiction to vary the reserved
area of a land-owner by including therein the lands sold by
him to others.
593
2. Most of the relevant facts are undisputed and may be
briefly stated thus. Sadh Singh, respondent No. 3, who is a
displaced person from Pakistan, was allotted more than 60
standard acres of land in village Karyam, Tehsil
Nawanshehar, District Jullundur, in lieu of the land left by
him in Pakistan. He also owned a little more than 1 standard
acre of land in village Surwind, Tehsil Patti, District
Amritsar. About 3 years after the Act came into force, i e.,
on March 9, 1956, respondent No. 3 made an oral gift of some
of his land in lieu of maintenance to his wife Nirmal Kaur,
respondent No. 4, who entered into an agreement dated
January 21,1957 with the three appellants for sale to them
of the land gifted to her. against a consideration of Rs.
4200. The land covered by the gift was mutated in favour of
respondent No. 4 on April 17,1957 and she conveyed the same
to the three appellants by a registered sale-deed dated
August 8, 1957. The agreement mentioned above as well as the
sale deed following it were attested by respondent No. 3 as
a marginal witness.
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3. The proceedings for declaration of the surplus area
out of the land owned by respondent No. 3 were initiated by
the Collector on June 20, 1958. They passed through various
stages before the Collector and in appeal before the
Commissioner. Ultimately the Special Collector, Punjab,
declared the surplus area of respondent No. 3 after hearing
him and the appellants, through an order dated March 30,
1962, and while doing so, he included the land sold to the
appellants by respondent No. 4 in the "select area" of
respondent No. 3, as prayed for by the appellants. The order
was based on some rulings of the Financial Commissioner,
Punjab, to the effect that all sales for valuable
consideration effected by a land-owner after the enforcement
of the Act should be included in his "select area".
Respondent No. 3 unsuccessfully challenged the order in an
appeal which was dismissed by the Commissioner as time-
barred. The order of the Commissioner was upheld in revision
by the Financial Commissioner. It was then that respondent
No. 3 knocked at the door of the High Court through a
petition under article 226 of the Constitution of India
which was dismissed by a learned Single Judge on the ground
that the order of the Special Collector had become final by
reason of the appeal taken against it being time-barred. The
learned Judge observed that respondent No. 3 was not
entitled to any relief in exercise of the extra-ordinary
jurisdiction of the High Court under the said article in
view of the fact that he had failed to pursue diligently the
remedy of appeal which was open to him.
594
In the appeal which respondent No. 3 filed under clause
10 of the Letters Patent, the Division Bench observed:
"In accordance with section 5 of the Punjab
Security of Land Tenures Act, 1953, the appellant
intimated his reserved area in form E to the Collector
before making the gift in favour of his wife. This fact
is not so stated in the pleadings, but the counsel of
both the parties admit this fact to be so".
and after referring to the provisions of sections 5, 5-A and
5-B of the Act concluded:
"The Collector has no jurisdiction to vary the
reserved area of a landowner by including the land sold
by him to others in his reserved area. Under section 5
of the Act, the only jurisdiction with the Collector is
to find out whether the reservation has been made in
accordance with the directions contained in that
section but the Collector has no jurisdiction to
include an area in the reserved area of a landowner
which is not covered by any of the clauses (a) to (f)
of the proviso to section 5 of the Act."
In coming to this conclusion. the Division Bench relied
upon three decisions of the High Court of Punjab and Haryana
rendered by other Division Benches and reported as Bhagat
Gobind Singh v. Punjab State and others, State of Punjab and
others v. Shamsher Singh and others, and Mota Singh v.
Financial Commissioner Punjab and if others. An argument
raised before it on behalf of the present appellants that
the order of the Collector made in contravention of section
5 of the Act could at best be treated as an illegal order
and not one passed without jurisdiction and therefore a
nullity, was repelled. In this connection, reliance was
placed by the Division Bench on three judgments of this
Court, namely, Nemi Chand Jain v. Financial Commissioner
Punjab, Smt. Kaushalya Devi v. K.L. Bansal, and Bahadur
Singh v. Muni Subrat Dass, another. In the result, the
Division Bench held
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595
that the order of the Special Collector dated March 30,
1962, directing a variation in the reservation made by
respondent No. 3 without his consent was not only contrary
to the provisions of the Act but was without jurisdiction
and a nullity in as much as the Act vested no power of such
variation in the Collector. It further held that a petition
under article 226 of the Constitution of India by respondent
No. 3 with the prayer that the order of the Special
Collector dated March 30, 1962, be quashed was competent,
even though he had not exhausted his remedies of appeal and
revision.
In the above premises, the Division Bench accepted the
Letters Patent Appeal and set aside the order of the Special
Collector dated March 30, 1962, as also those orders which
followed and confirmed it, and directed the Collector to
declare the surplus area of respondent No. 3 after excluding
therefrom the area reserved by him as his Permissible area.
4. Mr. Sanghi, learned counsel for the appellants, has
raised the following contentions before us:
(a) The admission to the effect that respondent No. 3
had intimated his reserved area in Form E to the
Collector before gifting the land to his wife was
made before the High Court on behalf of the
appellants on the basis of some misconception on
the part of their counsel. Actually no such
reservation was ever made and the admission could
at best be interpreted to mean that respondent No.
3 had sent an intimation in Form E to the Special
Collector detailing therein the area selected by
him as his permissible area in pursuance of the
provisions of sub-section (1) of section 5-B of
the Act.
(b) If no reservation was made by respondent No. 3 the
whole basis of the impugned judgment falls and the
Collector would have jurisdiction to amend the
permissible area of respondent No. 3 by way of
adjustment of the equities arising in favour of
the appellants.
After hearing Mr. Sanghi we find force in contention
(a) but none in contention (b), as we shall presently show.
We may
596
mention here that respondent No. 3 has remained up-
represented before us in spite of service.
5. For a proper consideration of the two contentions,
it is necessary to refer to certain provisions of the Act as
they originally stood, the amendments made thereto in the
year 1957 and the rules framed thereunder from time to time.
The Act was enforced on the 15th April 1953. On that date
section 5 thereof comprised 5 sub-sections of which sub-
sections (4) and (5) were omitted in the year 1953 itself.
Sub-sections (1) and (3) of that section are relevant and
are reproduced below:
"5. (1) Any reservation before the commencement of
this Act shall cease to have effect, and subject to the
provisions of sections 3 and 4 any landowner who owns
land in excess of the permissible area may reserve out
of the entire land held by him in the State of Punjab
as landowner, any parcel or parcels not exceeding the
permissible area by intimating his selection in the
prescribed form and manner to the patwari of the estate
in which the land reserved is situate or to such other
authority as may be prescribed:
"Provided that in making this reservation he shall
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include his areas owned in the following order:
(a) area held in a Co-operative Garden Colony,
(b) area under self-cultivation at the
commencement of this Act other than the
reserved area,
(c) reserved area excluding the area under a
jhundimar tenant or a tenant who has been in
continuous occupation for 20 years or more
immediately before such reservation,
(d) area or share in a Co-operative Farming
Society,
(e) any other area owned by him,
(f) area under a jhundimar tenant".
"(3) A landowner shall be entitled to intimate a
reservation within six months from the date of
commence-
597
ment of this Act, and no reservation so intimated shall
be varied subsequently whether by act of parties or by
operation of law, save with the consent in writing of
the tenant affected by such variation or until such
time as the right to eject such tenant otherwise
accrues under the provisions of this Act."
The term ’reserved area’ was defined in clause (4) of
section 2 thus:
’(4) "Reserved area" means the area lawfully
reserved under the Punjab Tenants (Security of Tenure)
Act, 1950 (Act XXII of 1950), as amended by President’s
Act, V of 1951, hereinafter referred to as the "1950
Act" or under this Act.’
The Act as originally framed did not contain any
provision for the determination of what is now known as
"surplus area" a term which was introduced into the Act for
the first time in 1955 through the addition of clause (5-a)
to section 2.
On the 19th May 1953 were promulgated the Punjab
Security of Land Tenures Rules, 1953 (for short, the 1953
Rules), under rule 3 of which a landowner had to notify his
reservation to the Patwari of the concerned estate in
pursuance of the provisions of sub-section (1) of section 5
of the Act in the Form designated as Annexure "B" to those
Rules.
On the 27th April 1956 were promulgated the Punjab
Security of Land Tenures Rules, 1956 (hereinafter referred
to as the 1956 Rules). It was by rule 4 thereof that Form E
was for the first time prescribed. That rule stated:
"4. Where a landowner has not reserved the area
permitted for self-cultivation, he will, at the same
time as he submits the declarations prescribed in rule
3 above, intimate, in writing, to the Patwari/Patwaris
of the Circle/ Circles in which his lands are situated,
the land/lands selected by him for self-cultivation..
This intimation shall be in Form E."
This rule clearly indicates that a landowner was given
the right to select an area for self-cultivation only in
case he had not reserved such area on or before the 15th
October, 1953.
598
Sections 5-A and 5-B were added to the Act in the year
1957 with effect from 11th December 1957 by means of Punjab
Act No. 46 of 1957. They state:
Section 5-A
"Every land-owner or tenant. who owns or holds
land in excess of the permissible area and where land
is situated in more than one Patwar Circle, shall
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furnish, within a period of six months from the
commencement of the Punjab Security of Land Tenures
(Amendment) Act, 1957, a declaration supported by an
affidavit in respect of the land owned or held by him
in such form and manner and to such authority as may be
prescribed."
Section 5-B
"(1) A land-owner who has not exercised his right
of reservation under this Act, may select his
permissible area and intimate the selection to the
prescribed authority within the period specified in
section 5-A and in such form and manner as may be
prescribed:
"Provided that a land-owner who is required to
furnish a declaration under section 5-A shall intimate
his selection along with that declaration.
"(2) If a land-owner fails to select his
permissible area in accordance with the provisions of
sub-section (1), the prescribed authority may, subject
to the provisions of section 5-C, select the parcel or
parcels of lands which such person is entitled to
retain under the provisions of this Act:
"Provided that the prescribed authority shall not
make the selection without giving the land-owner
concerned an opportunity of being heard".
Simultaneously the definition of ’surplus area’
contained in clause (5-a) of section 2 of the Act was
amended to read thus:
599
’(5-a) "Surplus Area" means the area other than
the reserved area, and, where no area has been
reserved, the area in excess of the permissible area
selected under section 5-B or the area which is deemed
to be surplus area under sub-section (1) of section 5-C
and includes the area in excess of the permissible area
selected under section 19-B, but it will not include a
tenant’s permissible area:
’Provided that it will include the reserved area,
or part thereof, where such area or part has not been
brought under self-cultivation within six months of
reserving the same or getting possession thereof after
ejecting a tenant from it, whichever is later, or if
the landowner admits a new tenant, within three years
of the expiry of the said six months.’
In consequence of these additions rule 4 of the 1956
Rules was also amended so as to contain a provision that an
intimation under section 5-B (1) of the Act shall be
furnished by a landowner in Form E.
6. In relation to contention (a) the following
propositions emerge from the various provisions of law just
above set out:
(i) Reservation of land was envisaged only in
section 5 (1) of the Act and had to be
intimated within six months from the date of
commencement of that Act, i.e., on or before
the 15th October 1953.
(ii) No provision was ever made in the Act or the
rules framed thereunder fora reservation of
land by a landowner who had failed to send an
intimation thereof on or before the 15th
October 1953.
(iii)What was provided by section 5-B was, inter
alia, that a landowner who had not exercised
the right of reservation under the Act could
select his permissible area and send
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intimation thereof in Form E to the
prescribed authority within a period of six
months from the 11th December, 1957, i.e.. on
or before 11th May, 1958. Reservation’ was
something different from the ’Selection’
600
of permissible area. The two terms were not
only not synonymous but were mutually
exclusive. ’Selection’ of permissible area
was allowed only to a landlord who had not
exercised his right of ’reservation’
(iv) Form was meant only for intimation of
selection of permissible area under sub-
section (1) of section 5-B and not for
reservation under sub- section (1) of section
5 which could be made only through an
intimation in the Form in Annexure "B" to the
1953 Rules.
7. The propositions just above enunciated bring out
incongruity from which the admission made before the High
Court suffers. There could be no reservation in Form E by
respondent No. 3. If he send an intimation in that Form it
could only be about a selection of his permissible area
under sub-section (1) of section 5-B. That this was really
so clearly appears from the following observation made in
the order of the Special Collector dated 2nd March 1961:
"The counsel for the owner argued that area sold
was not included in Form E filed before the Special
Collector and that he was not prepared to include it in
the select area of 50 S.A. to which he is entitled".
The order from which this observation has been
extracted was set aside by the Commissioner, Jullundur
Division, on the 8th January, 1962 when the case was
remanded to the Special Collector for a fresh decision after
hearing the three appellants as well as respondents Nos. 3 &
4. The Special Collector then heard all these parties and
passed his order dated the 30th March 1962 which also
unmistakably indicates that the intimation given by
respondent No. 3 to the Special Collector was not in respect
of any reservation but covered only a selection of the
permissible area. Reference in this connection may be made
to the fact that twice in that order the Special Collector
used the term "select area" in relation to the lands which
respondent No. 3 could be allowed to retain in his
possession .
In assuming (on the basis of the admission made at the
bar) that respondent No. 3 had intimated his reservation in
pursuance of sub-section (1) of section 5, the High Court
was thus in error and
601
the case has to be decided on the basis of the factual
position that respondent No. 3 had failed to make any
reservation under that subsection but that he has made a
selection in Form E in pursuance of the provisions of sub-
section (1) of section 5-B. Contention (a) raised by Mr.
Sanghi is, therefore, accepted in full.
8. We now proceed to consider contention (b) in the
light of the provisions above extracted, a bare reading of
which leads to the following conclusions in relation to that
contention:
(a) ’Surplus area’ is arrived at by excluding the
reserved area from the total area of a land-owner
in case a reservation has been made by him
lawfully. (Clauses (4) and (5-a) of section 2.)
(b) Where no area has been lawfully reserved by the
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land owner, surplus area is worked out under
section 5-B or 5-C]
(c) Under section 5, the landowner is entitled to
reserve out of the entire land held by him in the
State of Punjab as landowner, any parcel or
parcels not exceeding the permissible area by
intimating his selection in the prescribed form
and manner to the patwari of the estate, etc. In
doing so he is legally bound to include in his
reserved area such land as conform to the
description of any of the 6 categories covered by
clauses (a) to (f) of the proviso to sub-section
(1) of section 5.
(d) Once a reservation has been intimated within 6
months from the date of commencement of the Act,
it cannot be varied either by act of parties or by
operation of law, except with the written consent
of the tenant affected by such variation.
(e) If a land-owner has failed to reserve land in
accordance with the provisions of section 5, he
has another chance to select his permissible area
within six months from the commencement of the
Punjab Security of Land Tenures (Amendment) Act
(Punjab Act No. 46 of 1957) in the prescribed
manner.
602
(f) The prescribed authority is given the power to
select the permissible area of a landowner under
sub-section (2) of section 5-B but the mandatory
condition attached to the exercise of that power
is that it shall be resorted to only if the
landowner has failed to select his permissible
area in accordance with the provisions of sub-
section (1) of that section. In other words, if
the concerned land-owner has already selected his
permissible area in accordance with the provisions
of sub-section (1) of section 5-B, sub-section (2)
of that section does not come into play at all and
there is no occasion for the exercise by the
prescribed authority of the power of selection.
These conclusions further lead to the inference that if
the prescribed authority (in this case the Special
Collector) exercises the power of selection in a situation
to which sub-section 5-B is not attracted, his order would
be without jurisdiction and a nullity and that is precisely
what has happened in this case. As held by us earlier,
respondent No. 3 had made a selection of his permissible
area in accordance with the provisions of sub-section (1) of
section 5-B a selection which the prescribed authority had
no power to vary either under sub-section (2) of section 5-B
or under any other provisions of the Act. The order of the
Special Collector dated March 30, 1962 must, therefore, be
held to have been passed without jurisdiction and,
therefore, to be a nullity.
9. In support of the proposition that the order of the
Special Collector did not suffer from lack of jurisdiction,
learned counsel for the appellants has relied upon the
following observations in Gurcharan Singh and Others v.
Prithi Singh and Others, wherein this Court defined the
scope of powers of the Collector while acting under sub-
section (2) of section 5-B of the Act:
"While it is true that a landowner who fails to
reserve or select his permissible area within the
prescribed period, cannot exercise that right
subsequently, and thereafter it is for the Collector to
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determine the defaulter’s permissible and surplus
areas, in exercising this power under section 5-B, the
Collector has to act judicially. He is bound to give
notice to the landowner, and the transferees from him,
603
if known. Thereafter he has to hear the parties who
appear, and to take into consideration their
representations and then pass such order as may be
just. In so exercising his discretion, the Collector
may, subject to the adjustment of equities on both
sides, include the transferred area in the ’permissible
area’ or the ’surplus area’ of the landowner. Thus, in
the process the Collector is not to ignore altogether
the wishes of the landowner. He may accept them to the
extent they are consistent with the equities of the
case".
It is urged on the authority of these observations that
the Collector has in all cases the power to alter the
particulars of an area reserved or selected by a landowner
so as to bring it in conformity with any equities that may
arise in the attendant circumstances. This proposition is
wholly unacceptable to us for the simple reason that in
Gurcharan Singh’s case (supra), the landowner had made
neither a reservation nor a selection of his permissible
area within the prescribed period, so that sub-section (2)
of section 5-B was undoubtedly attracted to his case. The
observations above extracted were obviously confined to a
case of that type, and have nothing to do with a situation
where the landowner concerned has selected his permissible
area in accordance with the provisions of sub-section (1) of
section 5-B so that there is no occasion for the prescribed
authority to exercise his powers under sub-section (2) of
that section. Gurcharn Singh’s case, therefore, is of no
assistance at all to the case of the appellants.
10. Nor do we see how any equities arise in favour of
the appellants, such as would entitle them to have the land
in question included in the permissible area of respondent
No. 3. It is not their case that any representation to the
effect that land would be so included was made to them by
either respondent No. 3 or respondent No. 4. Furthermore
they must be credited with full knowledge of the extent of
the land owned by respondent No. 3 and of the consequences
flowing therefrom in view of the provisions of the Act. Thus
they acquired the land with their eyes open and subject to
all the liabilities and defects from which it suffered in
the hands of their transferor (and also their transferor’s
transferor). In the absence of word of month of respondent
No. 3 or his conduct to the contrary; they cannot now be
heard to say that if respondent No. 3 exercises a right of
selection of his permissible area which the Act confers on
him, that right must be modified to suit their convenience.
604
In this connection we may also mention that the
inclusion of the land in question in the surplus area of
respondent No. 3 does not affect the right of ownership of
the appellants. Of course the result of such inclusion would
certainly be that the concerned authorities would be enabled
to settle tenants on the land as permitted by the Act-and
that is a risk which the appellants must be deemed to have
bought with the land.
11. For the reasons stated we dismiss the appeal but
with no order as to costs.
N.V.K. Appeal dismissed.
605
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