Full Judgment Text
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PETITIONER:
STATE OF PUNJAB (NOW HARYANA) AND, ORS.
Vs.
RESPONDENT:
AMAR SINGH AND ANOTHER
DATE OF JUDGMENT21/01/1974
BENCH:
KRISHNAIYER, V.R.
BENCH:
KRISHNAIYER, V.R.
PALEKAR, D.G.
SARKARIA, RANJIT SINGH
CITATION:
1974 AIR 994 1974 SCC (4) 305
CITATOR INFO :
RF 1975 SC1952 (6,7)
RF 1992 SC 248 (53)
ACT:
Punjab Security of Land Tenures Act (10 of 1953) Ss.10A and
18--Scope of
Interpretation of Statutes.
HEADNOTE:
Section 10A(B) of the Punjab Security of Land Tenures Act,
1953, provides that no transfer or other disposition of land
which is comprised in a surplus area [as defined in s.
2(5a)], at the commencement of the Act, shall affect the
utilization thereof for the resettlement of ejected tenants;
and s. 10A(C) provides that for the purpose of determining
the surplus area, any judgment, decree or order of a court
or other authority,which diminishes the surplus are a,shall
be ignored. Under the Act, land owners who had land in
excess of the ’permissible area’ could reserve for
themselves lands to the extent of the permissible area; and
the rest, excluding the permissible area of the tenants, was
the surplus area of the landowner. Section 18 provides that
a tenant, who has been in continuous occupation of the land
comprised in his tenancy for a minimum period of 6 years,
shall be entitled to purchase from the landowner, the land
so held by him.
At the commencement of the Act on April 15, 1953, a
landowner owned three items of property which did not form
part of her reserved area. One of the items was under her
self-cultivation while there were tenants on the other two.
Those tenants later gave up possession and abandoned the
lands. The landowner made a gift of the 3 items to her
daughter, who sold them to her husband and his brother, the
1st and 2nd respondents respectively. The Collector
(Surplus Area), while determining the surplus area of the
landowner, ignored the gifts and sales, and included the 3
items in the landowner’s surplus area. The respondents
appealed to the Commissioner. They also applied to the
Assistant Collector under s. 18, for purchase of the lands
in their possession on the ground of continuous occupation
for 6 years. The applications were allowed on the basis of
a compromise between the applicants (respondents) and the
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landowner, and the respondents paid the purchase price
determined by the Assistant Collector. On the basis of
those purchase orders the Commissioner, set aside the order
of the Collector (Surplus Area) declaring the surplus area
of the landowner, and directed him to inquire into the
matter afresh. The collector [the Asstt. Collector who
had allowed the purchases by the respondents had by then
become Collector (Surplus Area)] thereupon determined the
surplus area of the landowner under s. 10A(c). He, however,
held that the leases granted to the respondents were
collusive and that the orders of purchase under S. 18 were
ineffective, and included the 3 items again in the
landowner’s surplus area.
The High Court allowed the Writ Petitions of the respondents
on the ground that the authority acting under s. 10A(c)
could not ignore the purchase orders passed under s. 18.
Allowing the appeals to this Court,
HELD : Per Palekar and Krishna lyer, JJ. (Sarkaria J.
dissenting) : 1(a) The public policy of S. 10A cannot be
outwitted by consent orders calculated to defeat the
provision, and, without the statutory authority charged with
the inquiry being satisfied about the bonafides of and
eligibility for, the purchase. [175G]
When high public policy finds expression in socioeconomic
legislation contractual arrangements between interested
individuals, sanctified into consent or compromise decrees
or orders cannot be binding on the instrumentalities of the
State called upon to enforce the statute, although the
tribunals, enjoined to enforce the law, may take probative
note of the recitals in such compromise or consent
statements in proof of facts on which their jurisdiction
depends. Neither the materials on
153
record in the present case, nor the recitals in the
compromise, disclose the application of the judicial mind.
[174C]
(b) It was found by the Collector (Surplus Area) that the
leases in question have been collusively got up to dwindle
the surplus area of the landowner and that the landowner had
conspired with her son-in-law and big brother to retain the
area in contravention of the law. Further, S. 18 applies
only to persons who are legally tenants. In the present
case’ the lease was granted by the landowner after gifting
the property to her daughter. Also, the section requires 6
years continuous occupation by the tenant; but the Collector
found that the respondents had not completed the period at
the time of their application under S. 18. The order in
fact is thus a nullity. Therefore, it could not be
contended that the orders of purchase in favour of the
respondents passed by the concerned officer under S. 18 had
become final and not having been set aside bind the other
authority determining the surplus area.
(c) There is no provision in s. 18 to give notice to the
Collector who is to declare the surplus area and so, the
State (represented by the Collector), which is vitally
concerned in the resettlement of ejected tenants by
utilising the surplus area, has no opportunity to present
its case against the fraudulent character of the proceedings
under s. 18 before the Assistant Collector. The State, not
being a party to that order, in any case, cannot be bound by
it, whatever may be the effect as between the parties to
those proceedings. Since the State is not a party it has no
right of appeal or review.[172B]
(2) The authority under s. 10A may ignore the order of the
authority under s. 18.
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(a) There is an apparent conflict between Ss. 10 and 18 and
the basic judicial approach should be to harmonise the two
sections. The major premise of statutory construction is
that the rule of law must run close to the rule of life and
the court must read into an enactment, language permitting,
the meaning which promotes, the benignant intent of the
legislation in preference to the one which perverts the
scheme of the statute. The objects of the agrarian reform
underlying the Act are : (a) to impart security of tenure;
(b) to make the tiller the owner; and (c) to trim large land
holdings thus creating peasant proprietorships ensuring even
distribution of land ownership. The intendment of the
statute is that reservation was to be made by a landowner to
enable self-cultivation, and so, landowners could eject
tenants. But, since agrarian reform must promote not
eviction but security of tenure, it became necessary for the
State to create surplus area of a considerable extent, so
that, the evicted tenants could be rehabilitated on such
surplus lands, enjoying fixity of tenure and paying. rent to
the owners. The success of the scheme depends on preventing
leakages through private alienations, collusive awards and
decrees and the like, and so, care was taken in s. 10A(C) to
interdict alienations and to ignore decrees and orders which
diminished the surplus pool. Such a strategic provision
must receive a benignantly spacious construction. [160H,
161F, 157H]
(b) There is no force in the contention that the benefit
under s. 18 would be completely nullified and obliterated if
s. 10A(c) were to prevail and apply to orders under s. 18.
Though S. 10A(C) uses the words ’shall be ignored it is not
every order under s. 18 that would have to be ignored but
only those orders which have the effect of diminishing the
surplus area. The person who is entitled to purchase under
s. 18 is a person lawfully inducted on the land as a tenant.
The cases under the section would be, (i) of tenants who are
eligible to purchase by virtue of 6 years continuous
occupation of land in their permissible area, and (ii) of
tenants resettled on surplus area of the landowner, after 6
years continuous occupation. The purchase in the first case
being from the tenant’s permissible area is outside the
surplus area of the landowner and does not have the effect
of diminishing the landowner’s surplus area. In the second
case, the purchase fulfils the object of the statute of
making the tiller the owner. The principal category
adversely affected would be post statutory collusive tenants
and perhaps some bonafide tenants, who, however do not
deserve sympathy since they damage the prospects of
displaced persons to be resettled. Section 18(1)(iii)
apparently contemplates purchase rights for persons who had
no possession when the Act came into force, but the
exception was made only in case of those persons who had
been deprived of their rights by unjust eviction prior to
the Act coming into force. [169H-170D]
154
(3) The purchase order by the Assistant Collector under s.
18 was rightly ignored by the Collector (Surplus Area), as
’other authority’ in s. 10A(c) includes the officers under
s. 18. The plain meaning of the sub-section is that any
order by any authority which shrinks the surplus area of the
landowner is invalid to the extent laid down in that clause,
and orders under s. 18, if they diminish the surplus area
suffer the same fate. The High Court was wrong in inferring
from the statement of objects and reasons that ’other
authorities’ in s. 10A(C) are arbitrators or such like
agencies and not authorities under the Act. The objects and
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reasons relating to the clause of a bill may be read for
finding the object of the law and not to control its
amplitude. The purpose as revealed in the statement of
objects is that the legislature wanted to ensure the
invulnerability of the surplus pool provision to attacks, by
ignoring judicial and quasi-judicial orders of every sort.
This object of s. 10A(C) cannot be fulfilled unless the
widest meaning were given to the expression ’court or other
authority’. Nor is there any basis for truncating the ambit
of ’other authority’. ’Other authority’ is every other
authority within or without the Act. [168F, 169B, 171A-B]
(4) Further, the expression ’transfer or other disposition
of land’ in s. 10A(b) covers leases, which by very
definition, are a species of transfer of land. In the pre-
sent case, the lands in dispute fell outside the landowner’s
reserved area and were therefore included in her surplus
area. The first respondent, to be entitled to be a lessee,
must prima facie show that the alienation in his favour, as
a lessee, does not violate s. 10A(b) which prohibits all
transfers and other dispositions which diminish .the surplus
area of the landowner. Under s. 2(1), the word ’landowner’
includes also the lessee and the permissible area of the
tenant is excluded from the surplus area of the landowner.
Merely because of the outstanding leases in favour of the
prior tenants at the commencement of the Act, the two items
which were earlier leased to tenants do not ipso facto fall
outside the surplus area of the landowner. That would be so
only if they are comprised in the permissible area of the
tenant on the relevant date but there is no evidence to that
effect. In relation to the prior tenants no such claim has
been set up by the first respondent, and the first
respondent was not a transferee from the prior tenants, but
a de novo tenant. After the prior tenants gave up
possession the lands came into the actual possession of the
landowner and the leases were extinguished. It follows,
that one item was always in the possession of the landowner
and other two came into her possession subsequent to the
coming into force of the Act, that those three items of
property should be computed as part of the landowner’s
surplus area, and that s. 10A(b) operates to invalidate the
alleged leases to the respondents, since they diminish the
surplus area of the landowner. The respondents, therefore,
had no right, as tenants, to purchase under s.
18.[167D,167H-168D]
(5) It could not be contended that even if leases are
prohibited by s. 10A(b) the sub-section does not affect
involuntary transfers and that since a purchase under s.18,
effects an involuntary transfer it is not affected by s.
10A(b). The three subclauses of s. 10A, read together, show
that if the landowner, by any act or omission of his
suffered a diminution in the surplus area by a transfer,
voluntary or otherwise contrary to the right of the State
Government to dispose of it, such a transfer is liable to be
set aside. The expression ’transfer’ is wide enough to
cover transfers by operation of law, as in the present case,
under s. 18. To uphold the contention of the respondents
that involuntary transfers are not affected would stultify
s. 10A and the scheme of the statute altogether as they
would diminish the available surplus area of a landowner.
Moreover, special exclusion to save transfers by way of
inheritance and compulsory land acquisition by the State
would be supererogatory had involuntary transfers been
automatically excluded from s. 10A(b). [172H]
The Court expressed the hope that land reform measures would
be quickly implemented, because, in the present case, more
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than a score of years notwithstanding the processes of
fixing reserved areas and surplus areas’ on the strength of
which alone confirment of proprietary rights on tenants and
resettlement of a ejected tenants could proceed, are still
lingering. [176C]
Mam Rai v. State of Punjab I.L.R. (1969) 2 Pun. & Har. 680;
682-683, over-ruled.
155
Chari v. Seshadri [1973] 1 S.C.C. 761, Bahadur Singh v. Muni
Subrat [1969] 2 S.C.R. 432, Kaushalya Devi v. K. L. Bansal
[1969] 2 S.C.R. 1048 and Ferozi Lal Jain v. Man Mal [1970] 3
S.C.C. 181, refeffed to.
Per Sarkaria J. (dissenting)
(1) (a) The Collector (Surplus Area) would be entitled to
ignore the order of the Asstt. Collector under S. 18
independently of s. 10A of the Act if the order based on the
compromise is void and a nullity. But if it is only
voidable or erroneous, it could be avoided only by way of
appeal review or revision or in other appropriate pro-
ceedings, known to law and the Collector (Surplus Area)
could go behind it only when it is so set aside, or if the
provisions of s. 10A entitle him to do so.
(b) An order is null and void if the quasi-judicial tribunal
passing it lacks inherent jurisdiction over the parties and
the subject matter. In the present case, the Assistant
Collector who made the order under s. 18 was duly invested
with jurisdiction under the section. The respondents were
tenants and merely because-they were related to the
landowner they could not be denied the rights and privileges
under the Act. The allegations in the purchase application
about the applicants’ being in continuous occupation of the
lands comprised in their tenancy for the requisite Period,
coupled with admission by the landowner in the compromise,
furnished sufficient material on the basis of which the
authority could have been satisfied about the existence of
all the facts essential for the exercise of his jurisdiction
under s. 18. [191F, 192E]
(c) It is not correct to say, that on the facts of the
instant case the Assistant Collector passed the orders
solely on the basis of the compromise without applying his
mind to the facts of the case. Application of mind is
evident from the circumstance that he assessed the price to
be paid by each of the applicants who thereafter did so.
The mere fact that he did not record a finding in so many
words that he was satisfied from such and such material in
regard to the existence of the basic conditions necessary
for making the order under s. 18 did not render his order a
nullity when such material was otherwise evident on the
record. Therefore, the order under s. 18 was not a nullity
and it could not be ignored as non-est by the Collector
(Surplus Area). [192E]
K. K. Chari v. R. M. Seshadri [1973] 1 SCC 761, Nagindas
Ramdas v. Dalpatram Ichchram Civil Appeal No. 2479/72
decided on 30-11-1973, Smt. Ujjam Bai v. State of Uttar
Pradesh, AIR 1962 S.C. 1621=[1963]1 SCR 778 and Ittyavira
Mathai v. Varkey Varkey, A.I.R, 1964 S.C. 907 (910)= [1964]1
SCR 495, followed.
(d) The Collector (Surplus Area) and the Collector acting
under s. 18, are coordinate authorities exercising separate
and distinct jurisdictions’. If one feels that a certain
order passed by the other in the exercise of his distinct
jurisdiction is erroneous it was open to that authority to
get it rectified in the appropriate manner provided by the
Act, that is, by way of appeal, review or revision. The
provisions in regard to appeal, review and revision against
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an order of the Assistant Collector under s. 18 are, under
ss. 24 and 25 of the Act, ss 80 to 84 of the Punjab Tenancy
Act, 1887. There is nothing in the Act or the Rules framed
under the Act, or in the Tenancy Act, as to who can file an
appeal or revision against the decision or order of the
Collector exercising jurisdiction under s. 18; and, in view
of the long Practice there could be no doubt that the State
Government or its department can, if aggrieved or prejudiced
by such a decision, go in appeal or revision against it. A
person who is not a party to a decree or order, may with the
leave of the Appellate Court prefer an appeal and as a rule,
leave will not be refused to a person who might have been
made a party to the proceedings. In any case, the State or
the department could have moved the Financial Commissioner
to set right the illegality or impropriety in revision. The
Financial Commissioner under the Tenancy Act has wide powers
in revision to correct errors committed by the inferior
authorities and there is no time limit to the exercise of
the revisional power. Once the application of the tenant
under s. 18 has been allowed and the order is not set aside
in appeal or revision, it becomes final and remains immune
to an attack against its validity on any ground, including
that of collusion, before the coordinate authorities under
the Act dealing with the question of the determination of
surplus area. In the present case the Collector (Surplus
Area) could not go behind the orders under s. 18 or himself
sit in appeal over them, especially when the officer who
passed the two orders happended to be the same person.
[194C]
156
Amir Chand v. State of Haryana 1971 PLJ. 449, Securities
Insurance Co. [1894] 2 Ch. 410, Province of Bombay v. W. L
Automobile Association A.I.R. 1949 Dom. 141, Heera Singh v.
Veerka, A.I.R. 1958 Raj. 181, Shivaraja v. Siddamma A.I.R.
1963 Mys. 127, Executive Officer v. Raghavan Pillai A.I.R.
1961 Kerala 114, B. an Infant, [1958] 1 Q.B. 12; Govinda
Menon v. Madhvan Nair A.I.R. 1964 Kerala 235(DB), Punjab
State v. Dr. Iqbal Singh [1965] Punjab Law Journal 110, Man
Raj and ors v. State of Punjab I.L.R. [1969] 2 Punj and
Haryana 680 and Shyamlal v. State of Gujrat [1965] 2 S.C.R.
457, referred to.
(2)The view taken by the High Court with regard to the
interpretation and inter-relation of s. 10A and s. 18 is
sound and therefore s. 18 prevails over s. 10A and so, the
authority under s. 10A cannot ignore the order of the
authority under s. 18. [197B]
(a) The two canons of interpretation applicable to the
statute are, (i) if choice lies between two alternative
constructions, that alternative is to be chosen which will
be consistent with the smooth working of the system which
the statute purports to be regulating; and that alternative
is to be rejected which will introduce uncertainty friction
or confusion into the working of the system and, (ii) if
there is an apparent conflict between different provisions
of the same enactment they should be so interpreted that, if
possible, effect may be given to both. [195E]
King Emperor v. Benori Lal Sarma [1944] 49 CWN 178 (PC)=72
IA 57, referred to.’
(b) Section 18 is designed to promote one of the primary
objects of the Act, namely of procuring ownership of the
land to the tiller on easy terms. The self sufficing
machinery of this section is available for purchase of
their tenancies to the tenants inducted before or after
April 15, 1953, by the landowner, equally with tenants
settled by the Government on the surplus area. The Act
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does not takeaway the right of the landowner to induct
tenants on such area. Every sale made by the operation of
s.18 in favour of a tenant admitted by the landowner on the
surplus area causes diminution of the surplus area or
affects the utilisation thereof by the Government. Under
s.10A(C) every judgment, decree or order of a court or the
authority, which diminishes the surplus area shall be
ignored.If sales in favour of tenants inducted by the
landowner after April 15, 1953 were to be ignored under s.
10A(c) then it will reduce the working of the system of the
Act to a mockery, because it will present the spectacle of
manifest contradiction and absurdity of an Act giving a
right with one hand and taking it away by another. The
adoption of such an interpretation may not completely
obliterate. s. 18 but it will certainly truncate it, with
reference to the category of tenants inducted by the
landowner after April 15, 1953. [195G]
(3) The conflict between the two provisions can be avoided
only if the general words ’other authority’ in s. 10A(c) are
read ejusdem generis with the specific words ’judgment,
decree or order of a court’ which immediately precede them.
Thus construed, the general words ’or other authority’ will
not take in an authority exercising jurisdiction under s. 18
of the Act. [196B-C]
(4) The lease created by the landowner in the present case,
ceased to subsist as soon as the Collector made orders of
purchase under s. 18 in favour of the respondent. The
question whether the extinct lease which preceded the
purchase orders was a transfer or not, did not therefore
survive for decision. [197A]
Bhajan Lal v. Punjab State [1968] 70 I.L.R. 664, Bishan
Singh v. Punjab State [1968]47 LLt 284 and Lakshmi Bai v.
State of Haryana [1971] LXXIII Punj. L.R. 8 1 5, referred
to.
Further, the land comprised in the lease of the prior
tenants was far less than their permissible limit and the
High Court rightly presumed that the lands were within their
permissible area, since there was. no evidence that they
held any other land. Surplus area has to be determined, as
appears from s. 19F, with reference to the situation as on
April 15, 1953, when the Act came into force. The disputed
land held by the prior tenants was within their permissible
area and therefore it could not be included in the surplus
area of the landowner. At the time when the ,Collector
(Surplus Area ) took up determination of the surplus area,
these lands were still comprised in a tenancy though under a
different tenant, namely the first
157
respondent. Such change of the tenant does not amount to a
future acquisition of land, comprised in that tenancy, by
the landowner within the contemplation of
s. 19A or S. 19B of the Act. [197H-198D]
Bhagwan Das v. The State of Punjab, [1966] 2 SCR 511,
followed.
Harchand Singh v. Punjab State, (1964) 66 P.L.R. 285; 1963
P.L.J. 144, approved-
(5) The expression ’transfer and other disposition of land
in s.10A(b) does not include completed sales effected under
s. 18. The words transfer or other disposition of land’
must be restricted to voluntary dispositions of land made by
the landowner and cannot be extended to cover involuntary
transfers brought about by operation of law or circumstances
beyond the control of the landowner. This is the only
reasonable interpretation of the words ’transfer or other
disposition of land’ in s. 10A (b) which is consistent with
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s. 18 and can reconcile and keep effective both the
sections. The two types of involuntary transfers. namely
compulsory acquisition of land by Government or by an heir
by inheritance are only illustrative of the intention of the
legislature. [196 D]
JUDGMENT:
CIVIL APPELLATE JURISDICTION : Civil Appeals 1756 of 1967.
Nos. 1755 and
From the judgment and order dated the 4th October, 1966 of
the Punjab and Haryana High Court in Civil Writ Petition No.
854 and 855 of 1963.
V. C. Mahajan and R. N. Sachthey, for the appellants.
S. K. Dhingra for the respondents.
The Judgment of D. G. PALEKAR and V. R. KRISHNA IYER, JJ.
was delivered by Krishna lyer, J. R. S. SARKARIA, J. gave a
dissenting, Opinion.
KRISHNA IYER, J. These two appeals by the State of Haryana
challenge the High Court’s approach to an interpretation of
two, crucial provisions of a land reforms law, namely, Ss.
10-A and 18 of the Punjab Security of Land Tenures Act (X Of
1953) 1953 (for short called "the Act"). Counsel for the
appellants complains; that if the view upheld by the High
Court of subordinating S. 10-A to S. 18 were not upset by
this Court, large land’ holders may extricate their surplus
land in excess of the ceiling set, through legal loopholes,
such as have been practised in the present case. If make-
believe deals and collusive, proceeding, he argues, may
maneouvre through the legal net cast by S. 10-A of the Act
interdicting alienations and orders which diminish the
surplus pool intended for re-settlement by the State of
ejected tenants, the agrarian reform measure would be
reduced to a paper tiger or socioeconomic eyewash.
Certainly, land reforms are so basic to the national
reconstruction of the new order envisaged by the
Constitution that the issue raised in this case deserves our
anxious attention. We have to bear in mind, the activist,
though inarticulate, major premise of statutory construction
that the rule of law must run close to the rule of life and
the court must read into an enactment, language permitting,
that meaning which promotes the benignant intent of the
legislation in preference to the one which perverts the,
scheme of the statute
158
on imputed legislative presumptions and ’assumed social
values valid in a prior era. An aware court, informed of
this adaptation in the rules of forensic interpretation,
hesitates to nullify the plain object of a land reforms law
unless compelled by its language, and the crux of this case
is just that accent when double possibilities in the
chemistry of construction crop up.
A breif survey of the relevent facts leading up to the legal
controversy seeking resolution in these appeals will help
focus forensic attention on the provisions of the Act which
bear upon the issue. A lady by name Lachhman had
considerable agricultural property, far in excess of the
relatively liberal ceiling set by the Act which came into
force on April 15, 1953. She had a daughter Shanti Devi and
son-in-law Amar Singh, respondent in Civil Appeal No. 1755
of 1967, whose brother Indraj is the respondent in the
connected appeal No. 1756 of 1967. Annexure (B) to the writ
petitions is an order dated May 11, 1962 passed under the
Act and the Rules by the Collector (Surplus Area) Sirsa. It
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is this order which has been successfully attacked in the
writ petitions and is the subject-matter of the present
appeals. The facts stated therein have not been reversed in
the judgment of the High Court and we have to proceed on the
assumption that those statements are correct. We are
concerned with three khasras Nos. 177, 265 and 343, in all
over 131 acres of land. At the commencement of the Act,
khasra No. 177 was under Mst. Lachhman’s self cultivation
but there were two tenants under her, Chandu and Sri Chand,
on other two plots. Together, these three, plots constitute
a large slice out of her surplus areas and are now claimed
by the respondents, Amar Singh and Indraj, as their own
under a purchase ordered by the Assitant Collector who is
the competent authority under s. 18 of the Act (Annexure A
to the writ petitions). Appellant’s counsel urges that the
history of the derivation of title of these claimants needs
to be sceptically studied, the relationship of the parties
being that of mother and daughter, son-in-law and brother
and the heavy impact being slicing off a good chunk from the
surplus area, otherwise available for re-settlement of
evicted tenants.
At the outset it must be mentioned that the two tenants,
Chandu and Sri Chand who were on the land on the
determinative date (April 15, 1953) presumably showed no
interest in claiming rights granted to tenants under the
Act, which were subject, of course, to their possessing
lands less than the permissible area’. We have no
information in this case what the total extent of lands in
the possession of these two tenants was and whether they had
chosen to keep other lands in preference to the ones under
Mst. Lachhman. We need not speculate on how or why they
left the suit plots but may note that they were on the
holding on the key date in 1953 and if later they did not
keep their possession (abandoned or surrendered) the tenancy
terminated and on the facts of this case the lands came into
the actual possession of the land holder, Mst. Lachhman, no
other legal inference being possible than that the
159
leases were extinguished and the lands reverted to the
landlady on general principles of law. In short, we have to
proceed on the assumption that one plot, namely, khasra No.
177 had always. been in the self-cultivation of the landlady
and that the two tenanted plots, namely, khasras Nos. 265
and 343, came into the khas possession of the landlady
subsequent to the crucial date. Apprehending the statutory
peril to these lands which were admittedly outside her
"reserved areas" Mst. Lachhman went through the exercise of
making a gift of the three lands to her daughter Smt.
Shanti (vide mutation No. 445 decided on December 24, 1953
and referred to in Annexure B). Subsequently, it is seen
that Amar Singh, husband of Shanti and Indraj, brother of
Amar Singh purported to apply for purchase of the
landholders right in these three plots under s. 18 of the
Act making Lachhman and Shanti co-respondents and alleging
that they were tenants qualified for the statutory benefit.
The Assistant Collector before whom the application was made
for purchase under s. 18 has said in Annexure ’A’ to both
the writ petitions that these two ladies "are said to be big
land-owners but had not got this land reserved for their own
purpose". Curiously enough, in both the purchase petitions
the parties avoided even an enquiry by the Assistant
Collector as is evident from the following statement from
Annexure ’A’.
"Before the proceedings could start the
parties have come to terms and they have
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actually put in court a compromise deed which
they have backed up by their statements."
May be, because these dubious moves if exposed to the exami-
nation of an officer might prove a fiasco, the close
relations who figured as petitioner and respondents lulled
the Assistant Collector into mechanically acting on the
compromise without enquiring into any of the eligibility
factors before a purchase could be ordered.
There is another, set of facts which needs mention at this
stage. Even before the purchase proceedings were initiated
by the writ petitioners, the Collector had, as early as
April 1961, declared the surplus area of Lachhman ignoring
alienations and including the three khasra numbers. But on
appeals carried both by the landholder and her son-in-law
and his brother the Commissioner ordered a further enquiry.
Meanwhile, purchase proceedings were started and by a quick
compromise, orders of purchase were obtained. But all these
proved exercises in futility because the Collector, Surplus
Area, again ignored the leases to the writ petitioners as
collusive and the orders of purchase as ineffective in the
impugned order, Annexure B. However the High Court set aside
Annexure ’B’ so that the petitioners before it, the son-in-
law and his brother, were restored to their purchases, and
the State lost the lands from the surplus. pool. The
aggrieved State canvasses the correctness of. the
supersession of s. 18 and of certain other legal reasoning
approved by the Court, as its impact on the working of the
land reform scheme would be disastrous. Anyway, the law
laid down in this case was affirmed by a Full Bench of that
Court. Having regard to all those circumstances a series
analysis and attempt at harmonisation of the various
provisions of the Act is necessary now.
160
A flash back to the genetic evolution of the act and the
legislative mutations by amendatory effort to make the law
effective, and to unmake judicial decisions which weakened
the working of it will help understand the current
biochemistry of the Act. Any interpretation unaware of the
living aims ideology and legal anatomy of an Act will miss
its soul substance--a flaw which we feel, must be avoided
particularly in socio-Economic legislation with a dynamic
will and mission. Now to the legislation itself. A brief
introduction is found in the reference order of the Full
Bench (Shamsher Bahadur, J.) in Mam Raj v. State of Punjab :
(1)
"The Act passed on 15th of April, 1953, was
not the first legislation on the subject and
the contours of many of the concepts had
already taken shape in the two earlier
enactments on the subject, namely, the Punjab
Tenants (Security of Tenure) Act, 1950 (Act
No. 22 of 1950) and Punjab Tenants (Security
of Tenure) Amendment Act, 1951 (President’s
Act 5 of 1951). The Act, which at once
consolidated and amended the existing law on
the subject, was designed "to provide for the
security of land tenure and other incidental
matters". As is clear from the preamble, the
primary object was the protection of tenants
whose ejectments recently from holdings held
by landowners owning vast tracts of lands, had
taken place on a massive scale. In restoring
the rights of tenants ejected after 15th of
August, 1947, care was taken that landlords
with small holdings were not subjected to
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harassment by the tenants.For this reason, the
concepts of "small landowner", "permissible
area" and "reservation" were introduced. A
small landowner was described as a person
whose entire holding in the State of Punjab
did not exceed the permissible area which
though fixed at 100 standard acres in the Act
of 1950 was reduced to 30 standard acres in
the Act. A Landowner owning larger areas was
entitled to reserve the permissible area, and
many of the provisions of the Act dealt with
the manner and exercise of this right of res-
ervation. The right of the landowner to eject
tenants from the reserved or permissible areas
was recognized in the Act though under section
9-A(introduced by Punjab Act II of 1955) the
tenants liable to ejectment on this score had
to be accommodated in surplus areas, a minimum
period of ten years’ tenancy was fixed under
section 7 in respect of tenants who
were in
occupation of land outside the reserved areas
and the right of the tenants who had been
ejected after the 15th August, 1947, for
restoration to the tenancies was recognised.
Provisions were made for the exercise of the
other rights of the tenants, the most
important of these being the right to purchase
the leased lands under section 18 of the Act."
The triple objects of the agrarian reform projected by the
Act appear to be (a) to impart security of tenure (b) to
make the tiller the owner, and (c) to trim large land
holdings, setting sober ceilings. To convert these
political slogans into legal realities to combat the evil of
mass evictions, to create peasant proprietorships and to
ensure even dis-
(1) I.L.R. [1969] 2 Pun. & Har. 680; 682-683.
161
tribution of land ownerships a statutory scheme was
fashioned, the cornerstone of which was the building up of a
reservoir of land carved out of the large landholdings and
made available for utilization by the State for re-setting
ejected tenants.
The scheme of agrarian re-organisation contemplated by the
statutes is simple. The legislature fixed a limit on
ownership expressively described as "permissible area" land-
owners who exceeded this area were allowed to reserve for
themselves the best lands they desired to keep and this
parcel or parcels of land was meaning fully designated as
"reserved area". Of course, if he failed to intimate his
selection within six months from the commencement of the Act
to the Patwari concerned, the prescribed authority was
empowered to select the parcel or parcels of land which such
person was entitled to retain for himself. The legislature
found that many land-owners had failed to make the
reservation in time and so by the Amending Act 46 of 1957 a
further period of six months from the commencement of the
later Act was given for selecting the land/lands they meant
to keep, and further again gave the prescribed authority
power to select the parcel or parcels of land on behalf of
the defaulting landholders. The intendment of the statute
was that the reserved area war, to be self cultivated and so
land-owners were competent to eject tenants from the
reserved area, although, generally speaking, evictions had
been barred. As a matter of fact, landholders were directed
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to start self cultivation within six months from the date of
reservation or the date on which they got possession by
eviction. Small holders, i.e., persons who owned less than
the permissible area were not only not disturbed by the
statute in regard to their ownership but were also allowed
to evict tenants from their parcels of land so that they may
also become self-cultivators. This process of making the
proprietor cultivator naturally would result in the co-
existence of possession and ownership at the cost of
ejectment of tenants from their holdings. Since agrarian
reform must promote not eviction of lessees but security of
tenure for them it became necessary for the State to create
a considerable surplus pool of lands coughed up by large
owners who held beyond the permissible areas. All the
tenant refugees from resumed lands were to be rehabilitated
on surplus lands and such tenants, enjoying fixity of tenure
,Would continue to pay rents to the owners. Another limb of
the peasant proprietorship plan was the conferment of the
right to purchase the landlord’s right on long-standing
tenants with six years continuous occupancy. if the scheme
in the book had worked well on the ground the Act would have
paved the way for a new rural map of economic relations even
though the problem of the landless poor may perhaps have
survived. Such was the conspectus of the legislative
scheme.
It is obvious that this blue-print for a peaceful
transformation of agrarian relations assumes the
availability of a large surplus area on which the State can
settle tenants from the reserved areas and small
landholders’ holdings. Thus the key to the success of the
scheme is the maximising of the surplus land reservoir and
sealing off legal leakages
162
through private alienations, collusive orders and decrees
and the like, and so care was taken to interdict alienations
and ignore decrees and orders which diminished the surplus
pool.
At this stage it may be useful to sketch out the broad
outlines of the statute with specific reference to its
provisions, and changes. The Act of 1953 had been amended
often, for the professed reason, atleast once, that judicial
pronouncements have had the effect of defeating the
objectives with which the law was enacted. Substantial
amendments were made in 1955, 1957 and 1962. The objects
and reasons of Punjab Act 14 of 1962, which brought in
certain significant restrictions on alienations and
acquisitions of large landholders starts off in the state-
ment of objects thus :
"Some of the recent judicial pronouncements
have the effect of defeating the objectives
with which the Punjab Security of land Tenures
Act, 1953, was enacted and amended from time
to time. It was intended that the surplus
area of every land-owner recorded as such in
the revenue records should be made utilisable
for the settlement of ejected tenants."
Certain specific decisions and their impact on the
legislative operation were mentioned, and then the statement
of objects proceeded :
"In order to evade the provisions of s. 10-A
of the Parent Act interested persons, being
relations, have obtained decrees of courts for
diminishing the surplus area. Clause (4) of
the Bill seeks to provide that such decrees
should be ignored in computing the surplus
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area."
We. mention this only to emphasize that the legislature has
been anxious to, guard against erosion of the surplus pool
by alienatory maneouvres or even decrees and orders obtained
through judicial or quasi-judicial processes.
The Act defines "permissible area" "in relation to landowner
or a tenant as 30 standard acres and where such 30 standard
acres on being converted into ordinary acres exceed 60
acres, such 60 acres." (s. 2(3), The landlord who has a
vaster extent may utilise the specific lands he wants to
keep for himself and this is called "reserved area." Section
2(4) defines "reserved area" as "the area lawfully reserved
under the Punjab Tenants (Security of Tenures Act) 1950 (Act
XXII of 1950). as amended by President’s Act of 1951,..."
The area other than the reserved area, ie. the balance left
over, is defined as ,surplus area". Section 2 (5-a) defines
"surplus area" a concept introduced by Act XI of 1955. It
is useful to extract the definition which runs thus :
"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 tenants permissible area
163
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
land-owner admits a new tenant, within three
years of the expiry of the said six months".
At this stage it may be mentioned that landowner is not only
entitled to self-cultivate his reserved area but is obliged
to do, so within the period stipulated in the proviso to
s.2(5-a) test such un-self-cultivated land become surplus
area. But for fear that absentee landlords may pretend to
be self-cultivating while really leasing out their lands to
close relations, the statute defines "self cultivation" as
cultivation by the’ land-owner personally or through his
wife or children or through prescribed relations. It may be
noted that a son-in-law is not one of those relations (vide
rule 5 of the Punjab Security of land Tenures Rules, 1956.).
Sections 5, 5-A and 5-B deal with the reservation of land by
large landholders and the procedure in that behalf What is
important to note is that in the present case the landholder
has made her reservation and the properties in dispute fall
outside it and are therefore included in the surplus area.
Immunity from eviction of tenants is conferred by s. 9 but a
landlord is entitled to eject a tenant from the area
reserved under this Act. However, such ejectment shall not
be given effect to by way of disposession unless the
displaced tenant"is accommodation surplus are a in
accordance with the provisions of s. 10-A or......’ Of
course, if the tenant is a close relation of the landlord
within the prescribed category this protection does not
enure to him as per the second proviso to s-9-A. It is note
worthy that a son-in law is not one such relative. It is
obvious that a large number of tenants would be ejected by
small landholders and large landholders from their reserved
areas under s. 9 of the Act. Naturally, legislative concern
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for their rehabilitation found expression in s. 10-A(a)
which runs thus
10-A(a) The State Government or any officer
empowered by it in this behalf, shall be
competent to Utilize any surplus area for the
resettlement of tenants ejected, or to be
ejected, under clause (i) of sub-section (1)
of s. 9."
The success of the scheme, therefore, depends on the extent
of the surplus pool. For one thing, large landholders, when
deprived of their excess area, as well as small landholders,
in order to be viable, have to secure actual possession of
what they are eligible to keep, this being the legislative
justice shown to landowners by the Act. Actual possession
could follow only if the potential for re-settlement of dis-
possessed tenants were sufficient. That is why the
legislature has jealously protected the surplus pool which
plays a pivotal role in the whole programme. For this
purpose s. 10-A(b) was brought in in 1955 and it reads
164
"10-A(b) Notwithstanding anything contained in
any other law for the time being in force and
save in the case of land acquired by the
’State Government under any law for the time
being in force or by an heir by inheritance no
transfer or other disposition of land which is
comprised in a surplus area at the
commencement of this Act, shall affect the
utilization there of in clause (a)."
Plainly, there is a wide interdict against any transfer of
other disposition of land comprised in the surplus area, if
it will affect the utilisation thereof for the re-settlement
of tenants ejected or to be ejected under cl. (i) of sub-s.
(1) of s. 9. Such a strategic provision which takes care of
the surplus reservoir of land must receive a benignantly
spacious construction. There can, therefore, be no doubt
that the expression "transfer or other disposition of land"
must definitely cover leases which, by very definition, are
a species of transfer of land. It looks as if other devices
were resorted to by large land-owners to defeat the surplus
area scheme of s. 10-A. Courts and other authorities were
approached and, through their processes, decrees and orders
were secured whereby lands out of the surplus area could be
salvaged by the land-owner. The legislature finding this
anti-ceiling phenomenon clamped down a blanket ban on the
adverse operation of "any judgment, decree or order of a
court or other authority, obtained after the commencement of
this Act and having the effect of diminishing" the area of a
person which could have been declared a,-, his surplus area.
Section 10-A(c) may be usefully reproduced in this context.
"10-A(c) For the purposes of determining the
surplus area of any person under this section,
any judgment, decree or order of a court or
other authority, obtained after the c
ommenment
of this Act and having the effect of
diminishing the area of such person which
could have been declared as his surplus area
shall be ignored."
It is extremely important to remember that while this
provision was enacted in 1962 and while s. 10-A(b)
prohibiting alienations was passed in 1955, both these
provisions were given retrospective effect as from the
decisive date, namely, April 15, 1953. The deep concern of
the legislature is clear from all this.
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Right from the beginning one of the primary objects of the
statute had been to enable tenants to purchase the
Landlord’s right and become full owners and in this behalf
was enacted S. 18 which has figured very much in the
controversy in these appeals, It states :
"18(1) Notwithstanding anything to the contrary contained in
any law, usage or contract, a tenant of a landowner other
than a small land-owner-
(i) who has been in continuous occupation of the land
comprised in his tenancy for a minimum period of six years,
or
(ii)........
(iii).......
165
shall be entitled to purchase from the land-
owner the land so held by him but not included
in the reserved area of the landowner, in the
case of a tenant falling within clause (i) or
clause (ii) at any time, and in the case
of a tenant falling within clause (iii)within
a period of one year from the date of
commencement of this Act:
Provided that....
Provided further that.. . .
The further sub-sections of s. 18 deal with the process of
purchase, the Assistant Collector being the authority
empowered to order such purchase.
In the appeals before us there is an apparent competition
for primacy between s. 18 and s. 10-A(b) and (c), and
perhaps it may be relevant to refer to s. 23 also. This
last section reads:
"No decree or order of any court or authority
and no notice of ejectment shall be valid save
to the extent to which it is consistent with
the provisions of this Act.
As we will presently see we are called upon to reconcile the
claims and contentions put forward by either side on the
strength of the provisions we have just mentioned.
Let us interpret and apply the law to the facts of this
case. The learned judge, Narula, J., stated at the outset:
"I have to take the fact as found by the
Collector for the purposes of determining the
surplus area of the landowner and consequently
for determining the rights of the petitioners
so far as they are sought to be interfered
with by the impugned order."
We agree. The same judge formulated the legal questions
falling for decision in these words:
(1) Whether the expressions "transfer" or
"other disposition of land" in clause (b) of
section 10-A of the Act, include involuntary
transfer of a part of the holding of a
landowner by operation of an order forcing the
landowner to sell a part of his holding to a
tenant under section 18 of the Act;
(2) Whether the order of any other authority
referred to in clause (c) of section 10-A of
the Act includes an order of the authorities
under the Act itself passed under section 18
thereof in favour of a tenant, which order has
become final either at its original stage or
at the appellate or revisional stage; and
(3) In case of conflict between section 10-A
and section 18 of the Act, which of the two
provisions has supervening effect or overrides
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the other."
We do not wholly agree with this itemisation but it is good
enough to focus attention of the relevant area of legal
controversy. one further point pressed in both courts may be
noticed, viz., that the order of purchase of the concerned
officer not having been set aside binds the other
166
authority determining the surplus area and so the question
is whether one officer under the Act could ignore an order
by another officer under a different provision of the Act,
having regard to comity of courts and jurisdictions. As
indicated already, the principal discussion in the judgment
under appeal has turned on the claim to primacy of s. 18 as
against s. 10-A and so it is as well that we state right now
what stand we propose to take in resolving apparent
conflicts in the provisions of a socially-oriented, project-
implementing legislation. Every such statute has a soul and
an integrated personality-minor deformities may mar this
unity, especially when piecemeal amendments and unskilled
drafting occur. The basic judicial approach must be to
discover this soul of the law and strive to harmonise the
many limbs to subserve the pervasive spirit and advance the
social project of the enactment. Seeming confrontations
between provisions must be resolved into a cooperative co-
existence. This interpretative activism persuades us in
this case to reconcile what the High Court has conceived to
be a conflict between s. 10-A and s. 18.
Here, there are 3 khasra nos., two of which (nos. 265 and
343) were outstanding on tenancy with Chandu and Sri Chand
at the relevant date, April 15, 1953 (which admittedly, is
the date with reference to which "Permissible area",
"reserved area" and "surplus area" have to be fixed). The
third item, khasra no. 177, had on the relevant date been
with the landowner directly. The High Court treats them as
two ,categories, not without reason. What was with tenants
on the relevant date may well be part of their permissible
area since ’landowner’ in s.2(1) includes a lessee.
Moreover, a permissible area of a tenant is excluded by
definition from ’surplus area’, obviously because the tenant
can stabilise himself on his permissible area and it is not
intended to dislodge him therefrom for re-settling other
tenants under s. 10-A. Therefore, Narula, J., concludes:
" A survey of the above-mentioned provision of
the Act leave no doubt that if Chandu and Sri
Chand who were the tenants of the land now
comprised in the tenancy of Amar Singh on
April 15, 1953, had continued to be the
tenants of that parcel of land, subsequently
the land in their tenancy could not be
included in the permissible area of the
landowner. On the other hand it would have
been the right of Chandu and Sri Chand to
either get the said land declared as heir own
permissible area or to exercise their right
under section 18(1) of the Act by making an
application under sub-section (2) thereof to
purchase the said parcel of land."
The learned Judge proceeds to negative the argument that the
legal result is different when the sitting tenants on the
relevant date have quit and new tenants have been inducted
subsequently: "Surplus area and Permissible area of a land-
owner has to be determined in view of the situation as it
existed on the 15th of April, 1953 and subsequent
alienations have to be completely ignored. Though
subsequent acquisitions by the landowner may in certain
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circumstances be included in the., surplus area as
accretions, no such thing can happen in respect of that
parcel of land which could not be included in the sur-
167
plus area of the landowner on 15th of April, 1953, which was
again not with the landowner on the date when the Collector
sought to determine his/her surplus area. In other words,
once a piece of land is excluded from the surplus area of a
landowner on account of its forming the subject matter of
the holding of a tenant in occupation (who is not related to
the landowner in the prohibited manner) on the 15th of
April, 1953, the mere subsequent change of the holder of the
tenancy will not make the tenancy premises revert to the
surplus area of the landowner. It is, therefore, clear that
the land comprised in Khasras Nos. 265 and 343 (subject
matter of the tenancy in favour of Amar Singh) could not
fall within the definition of surplus area in the hands of
the landowner and Section 10-A of the Act could not apply to
it."
We are afraid there is a fallacy in this reasoning. It is
true that a mere change in tenancy by transfer of the lease
as such, as distinguished from a landlord inducting a new
tenant on land the prior lease over which has been
terminated and possession restored to the lanlord, may not
perhaps offend s.10-A although situations may arise even in
such cases leading to a different conclusion. We need not
investigate this possibility further. In the present case,
the exclusion of the two khasras from the surplus area
depends on their being part of the permissible area of
Chandu and Sri Chand. To salvage the lease in his favour,
Amar Singh, the new tenant, must prima facie show that this
alienation does not violate s.10-A(b) which prohibits all
transfers and other dispositions which diminish the surplus
area of the landowner concerned. He has, therefore, to make
out (a) that the demised lands do not form part of the
landlord’s surplus area or (b) that, as was vehemently
argued but may with little legal qualms be rejected, a lease
is not a ’transfer or other disposition of property’. The
High Court has disposed of this latter submission with the
simple but impeccable observation"that the creation of a
lease is a transfer or a demise referred to in s.105 of the
Transfer of Property Act admits of no doubt". The purpose
of the prohibitive provision is to strike at every
alienatory essay and the natural meaning of ’transfer’ or
other disposition of land. apart from the contextual
compulsion, embraces leases. The contention that even wide
words must oblige the landlord’s plea for a narrow meaning,
viz., absolute transfer of ownership, is beyond us to
accept.
Do the lands, khasras nos. 265 and 343, because 61
outstanding leases on April 15, 1953, swim out of the
surplus area ipso facto? We think not. For that they must
be comprised in the permissible area of the tenant. Here we
have no information placed by him who wants to prove it
affirmatively that these plots lie within the permissible
area of 30 standard acres, by definition of Chandu and Sri
Chand. That they did not continue in possession after the
Act is not disputed. If that were in possession of other
lands either as owners or tenants, and such holding was 30
acres or more, it was open to them to relinquish these lands
being in excess of their permissible area, in which case,
not being the permissible area of the tenant and being in
excess of the reserved area of the landlord, these lands
would be surplus area of the landlord within the definition
under s.2(5-a). In the absence of proof that the lands in
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dispute were comprised in the permissible area of the prior
it is not possible to hold that they do not come within the
168
surplus area of the landlord, Mst. Lacchman. On the
contrary, the likely inference flowing from the
disappearance from the scene of Chandu and Sri Chand their
failure to claim to remain as tenants or to purchase is that
these were not their permissible area. It is not as if
every bit of land that is with a tenant on the relevant date
is his permissible area. it has to fulfil the requirement of
s.2(3). No such test has been satisfied here. Nor can it be
argued that even if a tenant gives up his interest in the
holding the statute will haunt him with rights. ’Permis-
sible area’ is not a concept in the abstract but, as s.2(3)
mentions, is ’in relation to a landowner or a tenant’. In
relation to Chandu and Sri Chand no claim to permissible
area or consequential rights has been set up and Amar Singh
is not a transferee from them but a de novo tenant. It
follows that the two khasras should be computed as part of
the surplus area of Mst. Lacchman and s.10-A(b) operates to
invalidate the alleged lease to Amar Singh as its clear
impact is to diminish the surplus area of the landowner. He
had, therefore, no right as a tenant to purchase under s.
18.
The more serious question raised turns on the effect of the
purchase orders, Annexure A, on s.10-A(c). The High Court
reasoned-and this was repeated before us as counsel’s
argument-that while it is true that for determining the
surplus area of a person ’any judgment, decree or order of a
court or other authority’ obtained after the commencement of
the Act and having the effect of diminishing his surplus
area ’shall be ignored’, this mandate does not apply to
orders of authorities under the Act, like the Assistant
Collector exercising powers under s. 18. The learned judge
quotes the object of s. 10-A(c):
"In order to evade the provisions of section
10-A of the parent Act interested persons,
being relations, have obtained decrees of
Courts for diminishing the surplus area.
Clause 4 of the Bill seeks to provide that
such decrees should be ignored in computing
the surplus area."
From this the Court infers that ’other authorities’ in s.
10-A(c) are arbitrators or such like agencies and not
authorities under the Act. It is useful to read the objects
and reasons relating to the clause of a bill to illumine the
idea of the law not to control its amplitude. Moreover, the
purpose, as revealed in the statement of object is plain.
The legislature wanted to insure the invulnerability of the
surplus pool provision to attacks, by ignoring judicial and
quasi-judicial Orders of every sort. In this behalf two
provisions were made namely ss. 10-A. and a. 23, primarily
the former. In fact, we are concerned only with s.10-A(b)
and (c).
The High Court has taken the view that s. 10-A(b) cannot
affect involuntary transfers and since a purchase effected
under S. 18 effects an involuntary transfer it is not hit by
s. 10-A(b). The further view taken is that the expression
"other authority" in s. 10-A(c) refers only to authorities
other than those under the Act; the Assistant Collector who
has ordered the purchase under s. 10 being outside s. 10-
A(c), his order cannot be ignored by the Collector on the
strength of S. 10-A (c).A third point converging to the same
conclusion taken by the
169
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Court is that when an order under s. 18 has become final,
the Collector acting under S. 10-A(c) cannot but be bound by
it until it is set aside in appeal or revision or other
appropriate proceedings even though the Assistant
Collector’s order under s. 18 was passed on a compromise
between the parties.
We may now consider the soundness of these grounds separa-
tely. The object of s. 10-A(c) cannot be fulfilled unless
the widest meaning were given to the expression "court or
other authority". Nor is there any basis for truncating the
ambit of "other authority" in the manner the High Court has
done. "Other authority" is every other authority within or
without the Act. The reason given by Narula, J., to exclude
the officer passing orders under s. 18 from "other autho-
rities" is that "the result would be that the benefit sought
to be conferred by s. 18 on the tenants would be completely
nullified and obliterated". In this connection he further
observed :
"In every case, order under section 18 of the
Act, would be passed after the Act came into
force. If an order under section 18 has to be
ignored by the operation of clause (c) of
section 10-A, every order under section 18,
must be ignored while declaring the
permissible area of the Landowner. There is
no discretion in the authorities to apply the
provisions of clause (c) of s. 10-A or not to
apply them. The provision is mandatory, if,
therefore, clause (c) of section 10-A could be
utilised for abrogating the effect of an order
under section 18 of the Act, the whole scheme
of the Act of distribution of land to the
tenants and for conferring a right on a tenant
to purchase the land within the limits of
permissible area, would be flouted."
Having given serious consideration to the pros and cons we
are not satisfied that this argument is valid; on the
contrary, if upheld it may stultify s. 10-A and the scheme
of the statute altogether. Obviously, if every order of
purchase sanctioned under s. 18 can successfully diminish
surplus area of a landowner, a spate of such, orders would
be procured by previous arrangement between the landowner
and his nominee tenants or even bona fide alienees. The
present case is a capital illustration of the fraud and
collusion that may follow on such an interpretation.
Indeed, there is no provision in s. 18 to give notice to the
Collector who is to declare the surplus area and so the
State which is vitally concerned in the re-settlement of
ejected tenants utilising the surplus area has no
opportunity to present its case against the fraudulent
character of the proceedings under s. 18 before the
Assistant Collector. The State, not being a party to that
order, in any case cannot be bound by it, whatever may be
the effect as between the parties to those proceedings. We
are concerned here with a challenge by the State to the
efficacy of the order, Annexure A, and so we cannot muzzle
the plea of the State that the order under s. 18 is void if
there are good grounds to hold with it.
Nor is there force in the argument that benefit under s. 18
would be "completely nullified and obliterated" if s. 10-
A(c) were to apply to it. It is wrong for the Court to have
said that "in every
170
case " orders under s. 10 would have to be ignored. That is
not the result of s. 10-A. All the three sub-clauses of
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that section read together show that if the landlord by any
act or omission of his suffered a diminution in the surplus
area by a transfer, voluntary or otherwise, in favour of
another, contrary to the right of the State Government to
dispose of it, such a transfer only is liable to be set
aside. The tenants described in s. 18 in whose favour the
authority sanctions the purchase of the land are not
transferees whose transfers have to be set aside as being
contrary to the right of the State Government. Actually,
the bulk of the cases under s. 18 would be by tenants who
are eligible to purchase by virtue of six years’ continuous
occupation under s. 18(1). Their purchases would often be
from land which is their permissible area. Every tenant
with six years’ ending, be it before or after the comm-
encement of the Act, will be entitled to buy the ownership.
Of course. if he is within the reserved area he is liable to
be evicted even before he purchases but if he is outside the
landlord’s reserved area he can move for purchase. Such a
purchase being from the permissible area of the tenant is
outside the surplus area of the landlord and does not
diminish "the area of such person which could have been
declared as his surplus area". Ex hypothesi "surplus area"
excludes a tenant’s permissible area. Therefore, even if
that land falls outside the reserved area of the landowner,
if it is within the tenant’s permissible area, its purchase
by the tenant cannot diminish the landowner’s surplus area.
(emphasis supplied)
Another substantial category, who may buy under s. 18
without reducing the surplus area, is the re-settled
tenants. When the State acting under s. 10-A(c)
accommodates an ejected tenant the utilization of the
surplus land pro tanto is fulfilled. Such a rehabilitated
tenant of the landlord, after the six years’ term, can
qualify to buy under s. 18. Such a purchase only fulfils
the second object of the Statute of making the tiller the
owner and does not in any way diminish the-surplus area of
the landlord. For, with the re-settlement of an ejected
tenant that land, for all practical purposes, is no longer
available for the only purpose for which the surplus pool is
meant, viz., re-settlement of ejected tenants. Thus, it is
clear that s. 18 is not rendered otiose by the view that
orders thereunder which diminish the surplus area are bad
for violation of s. 10-A(c). Indeed, the principal category
adversely affected by our view would be post-statutory
collusive tenants, who are in most cases likely to be
brought in by landlords experimentally to rescue those lands
from the surplus pool, and even in bonafide cases they do
not deserve sympathy since they damage the prospects of
displaced tenants from being re-settled. It may as well be
noted here that the person who is entitled to purchase under
s. 18 is a tenant. i.e. a person lawfully inducted on the
land as a tenant. Once a land is held to be part of the
surplus land of the landlord, it rests with the State
Government for being disposed of for resettlement of tenants
and any disposition of the same by the landlord after April
15, 1953 would be invalid against the State Government’s
claim to dispose of it. That is the effect of s. 10-A(a)
&(b). Therefore, in respect of any land to which the State
Government makes a claim for resettlement, on the ground of
its being surplus
171
land, any person inducted by the landlord after April 15,
1953 would have no title to it as a tenant and, would not be
able to avail of s. 18. To sum up, the ’other
authorities’ in s. 10-A(c) include officers under s.16.
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Secondly, the plain meaning of s. 10-A(c) is that any order
by any authority which shrinks the surplus area of the
landlord is,invalid to the extent laid down in that clause.
Thirdly, orders under s. 18 if they diminish the surplus
area suffer the same fate and Annexure ’B’ fails to shield
Mst. Lacchman’s lands against orders re-settling ejected
tenants thereon.
Shri Dhingra relied on Sahib Ram v. The Financial
Commissioner, Punjab (1) but that decision only rules that a
tenant, who completes his 6 years qualifying occupation
required by s. 18 after April 15, 1953, is not excluded.
Vaidialingam, J., took care to refer to the case under
appeal now before us (Amar Singh’s case) and said that it
dealt with the scope of s. 10-A and did not bear upon the
point before them.
The last point urged by Shri Dhingra for the respondent-and
accepted by the High Court-is that the order, Annexure A,
having become final could not have been ignored in Annexure
’B’. Here it serves the discussion to remember that the
leases in question have been found by the Collector to have
been collusively got up to dwindle the surplus area of the
landowner. The Collector in Annexure ’B’ finds:A
" ......and it is crystal clear that Amar
Singh and Indraj had not been in continuous
cultivating possession of this land for full
six years, the other copy of Khasra Girdawari
put in this case and which is to be found at
page 27 of the file, shows the possession over
this land of Indraj and Amar Singh only from
the year 1957-58, and so their possession over
it for full six years is not complete as yet."
He has also stated that he was convinced "that the landowner
has conspired with her son-in-law Amar Singh and his brother
Indraj to retain this area in contravention of the law." A
third pregnant fact is that the proceedings under s. 18 were
prima facie collusive, and to burke an enquiry into the
eligibility of the alleged tenants to purchase under s. 18
an expedient was resorted to. "Before the proceedings could
start" says Annexure ’A’, "the parties have come to terms
and they have actually put in court a compromise deed which
they have backed up by their statements." Thus, no finding
on the basic facts of entitlement to purchase have been
recorded by the authority under s. 18 because he has merely
stated in Annexure ’A’.
"As per statements of the parties, I allow
Amar Singh to purchase the land in suit."
These facts have to be assumed since a controversy thereon
in the writ court or in this Court cannot be permitted. We
are, therefore, concerned to see whether on such a factual
basis any legal consequences compelling the court to uphold
Annexure’A’, and thus judicially condoning what is a fraud
on the statutory scheme, follow.
(1) [1970] 3 S.C.R. 790
172
An order like Annexure ’A’ ordinarily binds the parties only
and here the State which is the appellant is seriously
prejudiced by that order but is not a party to it.
Therefore, it cannot bind the state proprio vigore. It was
argued by Shri Dhingra that the State could have moved by
way of appeal or review and got the order set aside if there
was ground and that not having done so it was bound by the
order. As a matter of fact, the State, which is not a party
to the proceedings, does not have a right of appeal. The
ordinary rule is that only a party to a suit adversely
affected by the decree or any of his representatives-in-
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interest may file an appeal. Under such circumstances a
person who is not a party may prefer an appeal with the
leave of the appellate court "if he would be prejudicially
affected by the judgment and if it would be binding on him
as res-judicata under Explanation 6 to s. 11." (see Mulla-
Civil Procedure Code-13th edn vol. I, 421). Section 82 of
the Punjab Tenancy Act, 1887, which may perhaps be invoked
by a party even under the Act, also speaks ,of applications
by any party interested. Thus, no right of review or ,of
appeal under s. 18 can be availed of by the State as of
right.
If the State is not precluded from proving the invalidity of
Annexure ’A, it is clear that the said order is
unsustainable. Section 18 applies only to tenants, i.e.,
not anyone who claims to be, but legally is one.-Here who
has granted the lease ? Mst. Lacchman? How could she,
after gifting away to her daughter? And no lease from
daughter Shanti is set up although obscurely both mother and
,daughter are made respondents. Secondly, s.18 qualifies
for purchase ,only those tenants who had 6 years continuous
occupation. Here, on the Collectors finding, Amar Singh and
Indraj came by possession ,only in 1957-58 and, as he points
out in Annexure ’B’, the six year period is not complete at
the time of application. The reason why ,even before the
proceedings began parties presented a compromise ,and
avoided an enquiry is not far to seek. In short, the State
could and did make out the incompetence of the respondents
to purchase under s. 18 and Annexure ’A’, being also
stricken by the vice of s. 10-A (b) and (c).
Shri Dhingra urged that s.18(1)(iii) did contemplate
purchase rights for persons who had no possession when the
Act came into force and their purchases must necessarily
diminish the surplus area. This seeming attractiveness
vanishes when we notice that s.18(1) (ii) ,and (iii) provide
for two classes of hard cases where unjust evictions prior
to the Act coming into force had deprived them of their
rights. For all practical purposes the Act clothes them
with such rights as they would have enjoyed had they not
suffered unjust evictions. That is why specific provision
was made in s. 18 for them. The exception proves the rule.
The paramountcy of s. 10-A cannot be subverted by
illegitimate use of the processes under s. 18.
Purchases under s. 18 being involuntary, s. 10-A(b) would
not be hit, as it deals only with voluntary transfers,
according to Shri Dhingra. While we need not finally
pronounce on this argument, it is worthy of note that the
expression ’transfer’ is wide enough to cover transfers by
operation of law unless expressly excluded as
173
s. 2(d) of the Transfer of Property Act. Moreover, special
exclusions to save transfers by way of inheritance and
compulsory land acquisition by State have been made which
would have-been supererogatory had involuntary transfers
automatically gone out of the pate of s. 10-A(b).
Another argument was suggested that the order even though
passed on a compromise was as valid and binding as one
passed on contest, May be that as a broad proposition one
may assent to it. But where a compromise goes against a
public policy prescription of a statute or a mandatory
direction to the Court to decide on its own certain
foundational facts, a razi cannot operate to defeat the
requirement as, specified or absolve the court from the
duty. The resultant order will be ineffective. After all
by consent or agreement, parties cannot achieve what is
contrary to law and a decree merely based on such agreement
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cannot furnish a judicial amulet against statutory
violation. For, ’by private agreement’ converted into a
decree, parties cannot empower themselves to do that which
they could not have done by private agreement alone’. (see
Mulla, C. P. C., vol. II, P 1300). The true rule is that
"the contract of the parties is not the less a contract, and
subject to the incidents of a contract, because there is
superadded the command of the Judge". The learned author,
Mulla, in his Commentary on Order XXIII r. 3 (Civil
Procedure Code, vol. II, pp. 1299-1300) cites many
authorities for this proposition and observes
"If a decree is passed under this rule on a
compromise which is not lawful, the Court
should not enforce the decree in execution
proceedings. Thus, a sale of an office
attached to a temple is against public policy.
Hence, if in a suit against the holder of such
an office a compromise is arrived at whereby
the holder of the office consents to the
office being sold in satisfaction of the debt
due to the plaintiff, and a decree is passed
on the compromise, the Court should not
withstanding the consent decree refuse to sell
the office in execution. It is clear that if
the matter had rested in contract only, the
Court could not have enforced the sale in a
suit brought for that purpose. The mere fact
that the contract is embodied in a decree does
not alter the incidents of the contract."
it may be right to conclude that any authority, like the
Collector here, enjoined to apply s. 10-A(b) and (c) may
decline to act on a compromise which has ripened into an
order if the agreement between the parties disposes of
property in violation of a statutory mandate. He can and
must lift the veil and look the agreement of the parties in
the face. The vice of contravention of s. 10-A(b) is writ
large in Annexure ’A.’
A few decisions of this Court bearing on the efficiency of
consent decrees were cited at the bar and they are
exhaustively dealt with in Chari v. Seshadri(1). The other
rulings of this Court-all rendered under the Rent Control
Law-are Bahadur Singh v. Muni Subrat(2)
(1) [1973] 1 S.C.C. 761. (2) [1969] 2 S.C.R. 432.
174
Kaushalya Devi v. K.L. Bansal(1), and Ferozi Lal Jain v. Man
Mal(2). The core principle or ratio that is revealed in
these cases is that in cases ,where a statute, embodies a
public policy and consequentially prescribes the presence of
some conditions for grant of reliefs,parties can not by-pass
the law by the exercise of a consent decree or order, and
mere judicial imprimaturs may not validate such decree or
order where the ,court or tribunal is not seen to have
applied its mind to the existence ,Of those conditions and
reached its affirmative conclusion thereon. Such mindless
orders are a nullity but where the stage of the proceedings,
the materials on record and/or the recitals in the razi
disclose the application of the judicial mind, the order is
beyond collateral attack merely on the score that it does
not ritualistically write into ,the judgment what is needed
by the statute. The important facet of the law clarified in
these decisions is that where high public policy finds
expression in socioeconomic legislation contractual arrange
merits between interested individuals sanctified into
consent or compromise decrees or orders cannot be binding on
instrumentalities of the State called upon to enforce the
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statute, although the tribunals enjoined to enforce the law
may take probative note of the recitals in such compromise
or consent statements in proof of facts on which their
jurisdictions may have to be exercised. Further, if there
is no evidence either by way of admissions in consent
statements and razis or otherwise on the record, the reliefs
sanctioned by the statute cannot be granted and orders or
decrees which purport to grant them sans proof of the legal
requirements will be a nullity.
In Kaushalya Devi v. K. L. Bansal (1) the Court was
concerned with a suit for eviction under the Rent Control
law. On being satisfied about the statutory grounds the
Court could decree possession. The plaintiff set out two
grounds both of which were, denied in the written statement.
When the pleadings of the landlord and the tenant were in
this state, both parties filed a compromise memo in and by
which they agreed to the passing of a decree of eviction
against the tenant. Representations to the same effect were
also made by the counsel for both parties. The court passed
the following order :
" In view of the statement of the parties
counsel and the written compromise, a decree
is passed in favour of the plaintiff. against
the defendant."
The tenant did not vacate the premises within the time
mentioned as per the compromise memo. On the other hand, he
filed an application under s. 47, C.P.C., pleading that the
decree is void as being in contravention of s. 13 of the
Delhi statute. The High Court held ’that the decree was a
nullity, as the order was passed solely on the basis of the
compromise without indicating that any of the statutory
grounds mentioned in s. 13 existed. Following the decision
in Bahadur singh v. Muni Subrat(supra), this Court upheld
the order of the High Court.
In Ferozi Lal Jain v. Man Mal(2), the landlord’s grounds for
eviction were denied by the tenant but they reported
compromise with prayer for a decree for eviction. This
Court ruled
(1) [1969] 2 S.C.R. 1048, (2) [1970] 3 S.C.C. 181.
175
"From the facts mentioned earlier, it is seen
that at no stage, the Court was called upon to
apply its mind to the question wheather the
alleged ’subletting is true or not. Order
made by it does not show that it was satisfied
that the subletting complained of has taken
place, nor is there any other material on
record to show that it was so satisfied. it is
clear from the record that the court had
proceeded solely on the basis of the
compromise arrived at between the parties.
That being so there can be hardly any doubt
that the court was not competent to pass the
impugned decree. Hence the decree under
execution must be held to be a nullity."
In both these cases the decrees based solely on the razi and
without the courts applying their mind, were a nullity. The
order of the Assistant Collector, Annexure ’A’, bears
resemblance to the situation in these two cases. On the
other hand K. K. Chari’s case (supra) is a study in
contrast. There was plethora of evidence to prove the
ground of eviction and the court directed eviction based on
the terms of the compromise and after making a reference to
the provisions for eviction. Vaidialingam, J., has
explained this aspect elaborately.
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The order, Annexure ’A’, was passed before evidence was let
in because even before the trial began parties reported
compromise and gave statement accordingly. Not a word is to
be found in the order indicating, the court’s mind
adverting to the requirements of s. 18 of the Act; the
contrary being the evidence. Indeed, unlike in K. K.
Chari’s case, no material existed on record to warrant a
finding (a) regarding the tenancy, (b) continuous occupation
for over 6 years, (c) the surplus area being unaffected.
Nor even recitals amounting to admissions on facts of
entitlement to purchase were made. The order was a nullity,
denuded of evidence and absent judicial satisfaction.
Strictly speaking, collusive razis cannot affect the State
which has the right to utilise surplus lands for re-settling
tenants. Certain proceedings, e.g. election petitions and
actions under s. 92, C.P.C., once set in motion, transcend
private interests and public authorities cannot pass orders
on collusive representations without regard to public
interest or independent satisfaction. Annexure ’A’ ex facie
was a nullity. It is unfortunate that the Assistant
Collector has, with insipient insouciance, lent his
authority to a compromise, where care and conscientiousness
would have averted the error. We are satisfied that
Annexure ’A’ is unavailing against the State and its
officers in accommodating ejected tenants on the lands in
question. The public policy of s. 10-A cannot be outwitted
by consent orders calculated to defeat the provision and
without the statutory authority charged with the enquiry
being satisfied about the bona fides of and eligibility for
the purchase. So viewed, the respondents in these appeals
cannot on the strength of the purchase orders exclude those
lands from the operation of s. 10-A(a) of the Act.
The legislature, charged with the constitutional mandate of
art. 38 and art. 39 has passed the Act and amended it from
time to time in furtherance of the major purpose of
distributive justice. The judicial wing of the State,
viewing the law in the same wavelength,
176
interprets and applies it. But the Executive
instrumentality of the State has an activist role to play if
the arm of the law were not to hang limp and social justice
is not to be a cynical phrase. Good laws and correct
interpretations are not enough. Quick, conscientious and
public minded enforcement, of the provisions is the respon-
sibility of Government and its officers. In the present
case the Assistant Collector’& order, Annexure ’A’, has
fortified an attempted fraud on the statute. It was stated
at the Bar that a score of years notwithstanding, the
processes of fixing reserved areas and surplus areas on the
strength of which alone conferment of proprietory right on
tenants and re-settlement of ejected tenants could, proceed,
are still lingering. If this is true Government has much to
answer for and litigation a bounds where delays in executive
enforcement occur. We expect that this land reform measure
will not be a slow motion picture but a strictand swift
procedure so that parties affected may know where they
stand. There is an ’executive’ dimension to law’s delays
which defeats the rule of law. It must be remembered that
the third reading of a bill and the last appeal in court are
not the final scene in the drama of law and society. A
post-audit on the enforcement of social legislation, all
social scientists will agree, is a material aspect of law in
action, inter-alia to avoid the administrative cutting edge
of the law becoming blunt.
With these hopeful observations we allow the State appeals
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but we direct that in the circumstance parties will bear
their costs throughout.
SARKARIA J.-I have gone through the judgment prepared by my
learned brother, Krishna lyer J. Since I cannot fully
subscribe to the reasoning and the view taken therein, I
have thought it fit to record my own opinion separately.
These two appeals (Nos. 1755 and 1756 of 1967) on
certificate granted under Art. 133(1)(c) of the Constitution
by the Punjab High Court, raise questions with regard to the
interpretation and interrelationship of the provision of
Sections 2(5-a), 10-A and 18 of the Punjab Security of Land
Tenures Act (X of 1953) (for short, the Act). The questions
for determination, as formulated by the High Court, are :
"(i) Whether the expression "transfer" or
"other disposition of land" in clause (b) of
section 10-A of the Act., includes involuntary
transfer of a part of the holding of a landow-
ner by operation of anorder forcing the
landowner to cell a part of his holding to a
tenant under section 18 of the Act;
(ii) Whether the order of any "other
authority" referred to in clause (c) of
section 10-A of the Act includes an order of
the authorities under the Act itself passed
under section 18 thereof in favour of a
tenant, which order has become final either at
its original stage or at the appellate or re-
visional stage; and
177
(iii) In case of conflict between section 10-A
and section 18 of the Act, which of the two
provisions has supervening effect or overrides
the other."
To the above, I may add a fourth question which arises in
Amar Singh’s case (C.A. 1755 of 1967) and has been dealt
with by the High Court.
(iv) Whether any land held by tenants on April
15, 1953 within the permissible area of those
tenants, can be included in the ’surplus area’
of the landowner, if, at the time the surplus
area collector takes up the determination of
the matter, that land is found to be comprised
in the tenancy of persons other than the
original tenants."
The material facts are these:
On April 15, 1953 when the Act came into force, Smt.
Lachhman (hereinafter referred to as the ’landowner’) owned
101 .6 standard acres, equivalent to 404.10 ordinary acres,
of land in the revenue, estates of two villages, namely,
Darba Kalan and Nahran Wali. Out of this holding of the
landowner, we are concerned only with Field Nos. 177, 265
and 343, situate in the area of Darba Kalan. On the
determinative date (April 15, 1953), Field No. 177 measuring
64 bighas and 12 biswas which is the subject matter of C. A.
1756/67, was in the personal cultivation of the landowner,
while Field Nos. 265 and 343, measuring 67 bighas and 19
biswas were in the occupation of two tenants, namely, Sri
Chand and Nathu.
It is not clear from the record whether the landowner had
made the reservation or selection of her permissible area in
the prescribed manner, within time. But the learned Counsel
for the parties before us are agreed that Field Nos. 265,
343 and 177 in question do not form a part of her reserved
or permissible area.
It appears from the Surplus Area Collector’s order that in
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1955 (vide mutation No. 144), the landowner tried to gift
this land in favour of her daughter Shanti Devi, who, in
turn, attempted to sell the same to her husband, Amar Singh,
and the latter’s brother, Indraj. These alienations were
ignored by the Surplus Area collector as per his order dated
April 24, 1961, while declaring the surplus area of the
landowner. Against that order, Amar Singh and. Indraj
carried an appeal to the Commissioner. The landowner also
preferred a separats appeal.
On May 2, 1961, Amar Singh made an application under a. 18
of the Act before the Assistant Collector, 1st Grade, for
purchase of the land comprised in Field Nos. 265 and 343, on
the ground that he has been in its continuous occupation as
a tenant for the requisite period. A similar application
was made on the same date, by his brother, Indraj, for the
purchase of Field No. 177. After serving notice on all
concerned, Shri Hardyal Singh, Assistant Collector 1st Grade
allowed these applications on September 15, 1961, on the
basis of a compromise between the applicants and the
landowner. In compliance with that order, Amar Singh,
deposited in the Treasury,.
178
Rs. 13,590/- which had been determined as the purchase price
by the said Collector. Indraj also in his case deposited
the price assessed by the Collector, The effect of these
proceedings and the order of the Collector was that Amar
Singh and Indraj the tenants, in the words of s. 18, itself,
"shall be deemed to have become the owners of the land".
The Commissioner on December 21, 1961, taking notice of the
statutory purchases of these fields by Amar Singh and Indraj
under s. 18, allowed their appeal and remanded the case to
the Collector for de novo enquiry regarding the area in
occupation of Amar Singh and Indraj as tenants under the
landowner.
After the remand, in the course of de novo enquiry, the same
Officer, Shri Hardyal Singh, as Collector, Surplus Area,
passed the impugned order, dated May 11, 1962, whereby he
declared 408 .10 ordinary acres equal to 101 .61 standard
acres as the surplus area of Smt. Lachhman and included in
that area the land in question (comprised in Field Nos. 265,
343 and 177) of which according to his earlier order Amar
Singh and Indraj were deemed to have become owners by pur-
chase under s. 18. He ignored his order, dated September
15, 1961 on the ground that Amar Singh and Indraj has not
been in continuous occupation of these fields as tenants for
the full terms of six years and that "in fact the landowner
has conspired with her son-in-law, Amar Singh, and his
brother, Indraj, to retain this area in contravention of the
law". It was added that the said order was based on a com-
promise and was a "collusive one".
Amar Singh and Indraj filed two separate writ petitions
under Art. 226 of the constitution for the grant of a writ
of certiorari for bringing up and quashing the order, dated
May 11, 1962, of the Surplus Area Collector and for a writ
of Mandamus directing the respondent State not to dispossess
them from the fields purchased by them under s. 18.
The High Court by its common Judgment, dated October 4,
1966, answered the three questions referred to above. as
under
"(i) The expression "transfer" and "other
disposition of land in clause (b) of section
10-A of the Panjab Security of Land Tenures
Act 10 of 1953, do not include completed sales
effected tinder s. 18 of the Act ;
(ii) In exercise of the powers conferred by
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clause (c) of section 10-A of the Act, the
authorities under the Act cannot exclude from
consideration and order of the
Assistant Collector or Collector under section
18 of the Act, where by a part of the holding
of the landowner has vested absolutely in the
erstwhile tenant; and
(iii) If any conflict were detected between
section 10-A and section 18 of the Act, the
special provision or law contained in the
latter section would override the earlier and
general provision."
179
Regarding Question (iv) in Amar Singh’s case, it was held
that since Field Nos. 265 and 343 were, on April 15, 1953,
comprised in the tenancy of Sri Chand and Nathu as part of
their permissible area, they could not, in view of the
definition given in s. 2 (5-a), be included in the surplus
area of the landowner, and the subsequent change of the
holder of the tenancy did not make the tenancy land revert
to the Surplus Area. That was, according to the High Court,
an additional reason why s. 10-A was not attracted in Amar
Singh’s case.
In order that the questions raised in these appeals may be
considered in the proper perspective, it is necessary to
notice briefly the object, the scheme and the relevant
provisions of the Act.
Chronologically, the Act is not the first measure enacted by
the State to give effect to its policy of abolishing
intermediaries and regulation of agricultural tenancies with
the object of securing tenure or procuring ownership of land
to the tiller. The first piece of legislation was the
Punjab Tenants (Security of Tenure) Act, 1950. The contours
of the concepts "permissible area" and "reserved area" first
made their appearance in this statute. Under that Act, a
landowner was entitled to reserve 100 standard acres for his
self-cultivation ; and the protection against eviction was
not available to tenants on the reserved area. The 1950 Act
was amended by Punjab Tenants (Security of Tenure) Amendment
Act, 1951 which reduced the permissible area of a landowner
to 50 standard acres, and extended the tenure of the tenants
from 4 to 5 years.
The Acts of 1950 and 1951, were repealed and replaced by Act
10 of 1953 with which we are concerned. The preamble says
that the Act is a piece of legislation "to provide for the
security of land tenure and other incidental matters". The
Act classifies landowners into "small landowners" and "other
landowners". A "small landowner" as defined in s. 2(2),
means a landowner whose entire land does not exceed the
"permissible area". Owners other than small landowners fall
in the second category. "Landowner" means a person defined
as such in the Punjab Land Revenue Act, 1887 (Act XVII of
1887) and also includes an "allottee" and "lessee" as
defined in clauses (b) and (c) respectively, of section 2 of
the East Punjab Displaced Persons (Land Resettlement) Act,
1949. Under the Explanation added to the clause, a
mortgagee, in respect of the land mortgaged with possession
is also to be deemed a ’landowner’. "Landowner" is not
comprehensively defined in the Land Revenue Act, clause (2)
of Sec. 3 of that Act makes it clear that "landowner" does
not include a tenant. Thus, it is to be noted that lesses
from the landowner (being other than those falling under s.
2(e) of the Land Resettlement Act, 1949) do not come within
the definition of "landowner-" given in the Act.
The fivefold object of the Act., endorsed by Subba Rao J.
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(as he then-was) speaking for this Court in Gurbax Singh v.
State of Punjab(1) is to-
(1) [1967] 1,S.C. R. 926.
180
(i) provide a permissible area of 30 standard acres to a
landowner/tenant which he can retain for self cultiation
(ii) provide security of tenure to tenants by reducing their
liability to ejectment as specified in s. 9 ;
(iii) ascertain surplus areas and ensure re-settlement of
ejected tenants on those areas ;
(iv) fix maximum rent payable by tenants ; and
(v) confer rights on tenants to pre-empt and purchase their
tenancies in certain circumstances.
We are primarily concerned with the provisions relating to
(i), (iii) and (v). What is to be borne in mind is that
while self-contained and comprehensive provisions in Section
17 and 18 for effective achievement of object (v) were made
from the very inception of the Act, object (iii) did not
assume shape and contant till Punjab Act XI of 1955 was
enacted.
The concepts ’permissible area’ and ’reserved area’ were
reshaped by the Act of 1953. ’Persmissible area’ in
relation to a landowner or a tenant has been defined to mean
"30 standard acres and where such 30 standard acres are
being converted into ordinary acres exceed 50 acres, such 60
acres". ’Reserved area’ as defined in s. 2(4) mean "area
lawfully reserved under the Punjab Tenants (Security of
Tenure) Act, 1950 (Act XXII of 1950), as amended by
President’s Act of 1951, hereinafter referred to as the
"1950-Act or under this Act".
"Reserved area" is dealt with in sections 2, 5, 5-B, 9 and
18 of the Act.
Section 5 lays down that "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 this 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
within six months from the date of the commencement of the
Act". Since, for one reason or the other many landowners
could not exercise their right of reservation within the
period of six months originally fixed by the 1953 Act,
Sections 5-A, 5-B and 5-C were inserted by the Amending Act
46 of 1957 which came into force on December 20, 1957.
Section 5-B enacts that "a landowner 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 sec. 5-A
and in such form and manner as may be prescribed. The
requisite form was prescribed by Punjab Government
Notification No. 3223-LR-11-57/1624 published in the Gazette
Extraordinary of March 22, 1958, consequently, a landowner
could make the selection of his permissible area within six
months of date.
In Gurbax Singh v. State of Punjab (supra), this Court held
that ,selection’ in s. 5-B is similar to ’reservation’ in s.
5 and that, in terms,
181
s. 5-B gives the landowner another chance to make the
reservation if he had not exercised his right of reservation
earlier under s.5. It was clarified that "reservation" and
"selection" involve the same process and indeed, to some
extent, they are convertible, for, one can reserve land by
selection and another select land by reservation.
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Thus if the right of selection is exercised under s. 5-B, by
the landowner, his permissible area would become his
’reserved area’; to that extent, the two concepts would
represent one and the same thing.
The next provision to be noticed is in s. 9 which says inter
alia that ’no landowner shall be competent to eject a tenant
except when such tenant is a tenant on the area reserved
under this Act or. is a tenant of a small landowner". Its
sub-s. (2) provides that "notwithstanding anything contained
hereinbefore a tenant shall also be liable to be ejected
from any area which he holds in any capacity whatever in
excess of the permissible area."
Before proceeding to s. 18, it will be proper at this stage
to advert to the concept "surplus area". This concept was
born in 1955 when Act XI of that year inserted in the
principal Act general provisions including s. 2(5-a) which
(as modified by a subsequent Act) runs thus:
"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 s. 5-B or the
area which is deemed to be surplus area under
(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:
(emphasis supplied).
This definition will be considered further while dealing
with proposition (iv). At this place it will be sufficient
to have a general idea of the inter-relationship of
"permissible area" and ",surplus area", and the right of the
landowner to deal with the surplus area. A full Bench of
Punjab and Haryana High Court in Dhaunkal v. Man Kauri, (1)
speaking through Mehar Singh C. J. summed up the inter-
connection between these concepts thus:
"According to these provisions (of sections 5,
5-A 5-B, 5-C read with Rule 6 of the 1956
Rules framed under the Act) a landowner or a
tenant who has more than 30 standard acres of
land has to select or reserve his permissible
area and the excess is available as surplus
area. The Collector attending to such cases
has to determine, therefore, three things;
(a), the permissible
(1) (1970) LXXII PLR 882.
182
area of a landowner, (b) the permissible area
of a tenant, and (c) the surplus area. The
details for the determination of these matters
are to be found in 1956 Rules Rule 6 is really
material No doubt in the Act,there is no
specific provision which says that a decision
has to be given by any authority whether a
permissible area has or has not been rightly
reserved or selected by a landowner or tenant
concerned, but when the provisions of the Act
with the rules are considered, it becomes
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plain that while determining the surplus area
with a landowner or a tenant the question of
his permissible area comes to be determined so
that, if there is a question in regard to the
validity of reservation or selection of
permissible area, it must come for
consideration before the Collector when he
disposes of the surplus area of a particular
landowner or tenant......."
(Parenthesis added).
Declaration of ’surplus area’ does not have the effect of
expropriating the landowner of that area. The only effect
of such declaration is that the Government gets a right to
utilize the surplus are, if necessary, for settlement of
ejected tenants. The tenants, thus settled on the surplus
land become by operation of law, the tenants of the land-
owner. They are bound under the rules, to attorn and pay
rent to the landowner. The latter’s rights of ownership
remain intact, who is even entitled to evict the settled
tenants in certain contingencies specified in the Act. The
landowner’s right to transfer the surplus area is also not
taken away, but the transferee even if a small landowner,-
will not be rid of the liability to accommodate evicted
tenants whom the Government may wish to resettle under s.
10-A(a). The Act does not take away the right of the
landowner to induct tenants on such area, or the rights of
the tenants so inducted, to purchase the land under s. 18 if
it has continuously remained comprised in their tenancy for
the requisite period.
Section 9(1) (i) provides for eviction of a tenant from the
area of a landowner reserved under the Act. Section 9-A
safeguards such a tenant against dispossession of his
tenancy so long as he is not accommodated on a surplus area
or other land by the State Government. There is a positive
indication in the 2nd proviso to s. 9-A that a landowner has
a right to induct tenants on his land even after the
commencement of the Act. The Proviso says "that if a
tenancy commences after the commencement of this Act, and
the tenant is also an owner and is related to his landlord
in the manner prescribed, he shall not be entitled to the
benefit of this section".-
Now let us have a close look at the provisions of s. 18,
which, as amended by Punjab Act 11 of 1955 runs thus:
"18 (1) Notwithstanding anything to the
contrary contained in any law usage or
contract, a tenant of a landowner other than
small landowner-
(i) who has been in continuous occupation of
the land comprised in his tenancy for a
minimum period of six years, or
183
(ii) who has been restored to his tenancy
under the provisions of this Act and whose
periods of continuous
occupation of the land comprised in his
tenancy immediately before ejectment and
immediately after restoration of his tenancy
together amount to six years or more, Or
(iii) who was ejected from his tenancy after
the 14th day of August 1947 and before the
commencement of this Act, and who was in
continuous occupation of the land comprised in
his tenancy for a period of six years or more
immediately before his ejectment,.
shall be entitled to purchase from the landowner the land so
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held by him but not included in the reserved area of the
landowner, in the case of a tenant falling within clause(i)
or clause (ii) at any time, and in the case of a tenant
falling within clause (iii)within a period of one year from
the date of the commencement of this Act;
Provided..
Provided further....
(2) A tenant desirous of purchasing land under
subsection (1) shall make an application in
writing to an Assistant Collector of First
Grade having jurisdiction over the land con-
cerned , and the Assistant Collector, after
giving notice to the landowner and to all
other persons interested in the land and after
making such inquiry as he thinks fit, shall
determine (formerly the word was ’fix,) the
average of the prices obtaining for similar
land in the locality during 1
0 years
immediately preceding the date on which the
application is made.
3. xxx xx xx
4(a) xxx xxx xx
(b) On the purchase price or the first
instalment thereof, as the case may be, being
deposited, the tenant shall be deemed to have
become the:owner of the land, and the
Assistant Collector shall where the tenant is
not already in possession, and subject to the
provisions of the Punjab Tenancy Act (XVI of
1887) put him in possession thereof..
(C) x x
(5) to (7) x x"
This section is the keystone of the arch of peasant-
proprietors’ complex which the Act seeks to build. The non-
obstante clause with which the section starts, indicates the
overriding operation of its provisions. It provides a self-
sufficing machinery enabling tenants, to purchase lands
comprised in their tenancies. Broadly speaking, the
existence of three conditions is necessary for the exercise
of this right. They are: (a) the landowner whose area is
sought to be purchased is not a ’small landowner’ i.e. one
owning less than 30 standard acres. (b) the land to be
purchased does not form a part of the ’reserved
184
area’ of the landlord which has become fixed by reservation
under s. 5, or selection under s. 5-D; (c) the applicant has
been in continuous Occupation of the land, as a tenant, for
a period of six years or more on the. date of the
application.
For our purpose, condition (b) is the most important. By
excluding a landowner’s reserved permissible area from the
operation of s. 18, it confines a tenant’s right of purchase
to that land which either falls within the ’surplus area’ of
the landowner, or, was on April 15, 1953 within the
’permissible area’ of that tenant.
As observed by this Court in Sahib Ram_v. Financial
Commissioner Punjab and Ors.(1)
"Under s. 18(1) three categories of tenants
have been given a right to purchase from the
landowner the land so held by him. They are :
(i) a tenant who has been in continuous
occupation of the land for a minimum period of
six years ;
(ii) a tenant restored to his tenancy under
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the Act and whose period of continuous
occupation of the land comprised in hi
s tenancy
immediately before ejectment and after
restoration amounts to six years or more and
(iii) a tenant who was ejected from his
tenancy after-August 14, 1947 and before April
15, 1953, and who was in continuous occupation
of the land comprised in his tenancy for a
period of six years or more immediately before
his ejectment."
Category (iii) has become extinct and clause (iii) of s.
18(1) has become redundant because the exercise of the right
of purchase by this category was limited to a period of one
year, only, after the commencement of the Act. Only a small
number of cases fall under category (ii). Most of the
tenant-purchasers belong to category (i) which may be
further divided into these sub-categories :
(a) Tenants who were on the land on April 15, 1953 and
continued to be in occupation of their land for the re-
quisite period upto the date of the application ;
(b) Tenants who were inducted on the surplus area by the
landowner sometime after the determinative date and who
thereafter remained in continuous occupation of the land for
the requisite term ;
(c) Tenants who were resettled on the surplus area by the
Government, and thereafter remained in continuous occupation
of the land for the requisite period.Quite a number of
tenants who invoke s. 18, come under sub-category (b).In the
instant case, Amar Singh and Indraj are tenants
(1) [1970] 3 S. C. R. 796 at p. 805.
185
of this sub-category. In Sahib Ram’s case (supra) also,
this Court was dealing with a case of tenants of this sub-
category. Vaidialingam J. speaking for the Court,
enunciated the law on the point, thus
"So far as we could see there is no
prohibition under the Act placing any
restrictions against the right of the
landowner creating new tenancies after the
date of the Act. In fact, the second proviso
to s. 9-A clearly indicates to the contrary.
It deals with contingency of tenancy coming
into force after the commencement of the Act.
Section 18(1)(ii) gives a right to tenant to
purchase the land and that right has to be
examined when an application under s. 18 is
made and cannot be deemed on the ground that
he was not a tenant for more than six years on
April 15, 1953. There is no limitation placed
under clause (i) of s. 18(1) that the tenant
who exercises his right should be a tenant on
the date of the Act or that be should have
completed the period of six years on April 15.
1953 and there is no warrant for reading in s.
18(1)(i) clauses which it does not contain.
It is enough if the continuous period of six
years has been completed on the date
when the
tenant files the application for purchase of
the land".
The Validity or otherwise of the orders of purchase made
under s. 18 by the Collector in favour of Amar Singh and
Indraj will be discussed a little later, at its appropriate
place. Suffice it to say here, that in view of the law
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settled in Sahib Ram’s case (supra), Amar Singh and Indraj
provided the other conditions were satisfied-would be
entitled to purchase the land comprised in their tenancies
notwithstanding the fact that the said land was a part of
the surplus area of the landowner and these tenancies were
created by her after April 15, 1953.
It will now be appropriate to examine s. 10-A. It is one of
the question. It reads
10--A (a) The State Government or any Officer
empowered by it in this behalf, shall be
competent to utilise any surplus area or the
resettlement of tenants ejected, or to be
ejected, under clause (i) of sub-section (1)
of section 9.
(b) Notwithstanding anything contained in any
other law for, the time being in force, and
(save in the case of land acquired by the
State Government under any law for the time
being in force or by any heir by inheritance)
no transfer or other disposition of land which
is comprised in a surplus area at the
commencement of this Act, shall affect the
utilization thereof in clause (a).
Explanation--Such utilization of any surplus
area will-not affect the right of the
landowner to receive rent from the tenant so
settled.
186
(c) ’For the purposes of determining surplus
area of any person under this section, any
judgment, decree or order of a court or other
authority, obtained after the commencement of
this Act and having the effect of dimnishing
the area of such person which could have been
declared as his surplus area shall be
ignored."
Section 10-A with its sub-clauses (a) and (b) was added by
Punjab Act XI of 1955. Punjab Act 4 of 1959 inserted the
saving clause (within brackets) in clause (b) Later Punjab
Act 14 of 1962, inserted clause (c) and gave retrospective
effect to all the provisions of s. 10-A from April 15, 1953.
The Statement of Objects and Reasons published in the Punjab
Gazette Extraordinary on April 16, 1955, lists among others,
the main objects of Act XI of 1955 :
"to prevent large scale ejectment of tenants.
to introduce new concepts of surplus area and
its utilization by the State Government for
the resettlement of ejected tenants
.... to
coordinate the ejectment of tenants with their
resettlement on surplus area .... to prevent
sales and other dispositions of land adversely
affecting the continuance of tenancies and the
extent of available surplus area ; to reduce
the period (from 12 to 6 years) entitling a
tenant to purchase the land comprised in his
tenancy and to provide for easier terms of
purchase and other incidental matters.
The professed object of the concept of "Surplus area" and
resettling ejected tenants on such area finds its
manifestation in the insertion of s.2(5-A) and S. 10-A(a) ;
while the object of entitling tenants to purchase their
tenancy lands on easier terms is reflected in the amendments
made in s. 18.
According to the Statement of Objects and Reasons published
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in Punjab Gazette Extraordinary, dated April 27, 1962, the
main purpose the Amending Act 14, of 1962 was two-fold : the
First was to neutralize the effect of certain decisions and
to plug the loopholes revealed in the interpretation among
others,of sections 2(5-a), 6, 10-A (b), 18, 19-B. Among
those decisions was one of the Financial Commissioner
holding that section 6 did not protect the claim of tenants
under section 18 to purchase the proprietary rights in
respect of the land held by them in tenancy. The second was
to ignore in computing the surplus area "decrees of courts
for diminishing the surplus area" which "interested persons,
being relatives, have obtained." "in order to evade the
provisions of Section 10-A the parent Act". That was why
clause (c) was inserted in s. 10-A.
I have referred in extenso to the Objects and Reasons which
led to these Amendments to show that while the Legislature
was anxious to preserve surplus area for settlement of
evicted tenants and for that purpose enacted S. 10A, it did
not in its wisdom, think it fit, to curtail the ambit of
s.18 so as to exclude tenants inducted by the landowner on
the surplus area from purchasing their tenancy lands through
the mechinery of this section. So far as the right to
purchase their
187
tenancies is concerned, tenants inducted by the landowner
and’ tenants settled by the Government, on the surplus area,
remain on an, equal footing. The Amendments did not in
relation to the new Section 10-A, relegate s. 18 to a
position of "subordinate alliance".. The non-obstante clause
of s. 18 has not been touched. Indeed, the amendments of s.
18 inter alia, by providing for easier terms of purchase and
reducing the qualifying period from 12 to 6 years, have made
the machinery of the section more comprehensive, efficient
and attractive for tenants desirous of purchasing their
tenancies.
The Amendments have not changed the basic scheme of the Act,
according to which, the jurisdiction of the Prescribed
Authority assessing the surplus area under ss. 5-B and 5-C
read with Rule 6 of the 1956. Rules, and acting under S.
10-A is distinct and separate from the jurisdiction of the
Assistant Collector 1st Grade dealing with an application
under s. 18. "Collector" has been defined by Rule 2(iii-A)
of the 1956 Rules, to mean "the Collector of the district or
any other officer not below the rank of Assistant Collector
1st Grade empowered in this behalf by Government". (emphasis
supplied) Rule 4-B provides that the Prescribed Authority
for the purposes of Section 5B(12) and Section 5-C shall be
(i) the Collector if the lands owned or held by the
landowner or tenant are situate in one district : and (ii)
the Special Collector-as defined in Rule 2(iv)-if the lands
so owned or held are situated in more than one district.
Section 18(2), however, confers the jurisdiction to try and
determine applications for purchase made under that section
specifically, on Assistant Collector of First Grade.
An order of the Prescribed Authority made under the
aforesaid’ provisions has been made appealable under Sub-
Rule (8) of Rule 6 ;. whereas the provision in regard to
appeal, review and revision against an order of the
Assistant Collector First Grade made under s. 18, by virtue
of Section 24 of the Act, the same as provided in ss. 80,,
81, 83 and 84 of the Punjab Tenancy Act, 1887.
Section 80 of the Tenancy Act provides for "Appeals", s. 82
for "Review" and s. 84 for "Revisions". Sections 81 and 83
of that Act relate to limitation and computation of
limitation for Appeals and applications for review. Under
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s. 82 of Tenancy Act, Revenue Officers have the powers of
reversing their own orders and those of their pre-decessors,
if no appeal against those orders has been filed. In the
case of Assistant Collectors of all Grades, the exercise of
this power is always subject to the previous sanction of the
Collector. Though a period of 90 days for making an
application for review is provided in sub-clause (b) of the
proviso to s. 82(1), yet no limitation has been provided
within which a Revenue Officer may suo moto review or move
for sanction to review an order. Under s. 84 the
Commissioner and the Financial Commissioner have the
concurrent revisional jurisdiction. The revisional powers
of the Financial Commissioner unders. 84 are in no way less
extensive than those of the High Court under 115 of the Code
of Civil Procedure. In a sense, his revisional powers are
wider. He has power to revise an order against which an.
appeal lies (gee Amir Chand v. State of Haryana (1) decided
by a Division
(1) 1971 P.L.J. 449.
188
Bench of the Punjab and Haryana High Court. No.statutory
limitation for making an application for revision has been
provided, but as a matter of practice the revision-petitions
are ordinarily not entertained after a period of 90 days
unless sufficient cause for the delay is shown. The
Financial Commissioner can interfere in revision suo moto at
any time, if the circumstances of the case so warrant.
There is nothing in the Act or the Rules framed thereunder
or in tie Tenancy Act saying as to who can file an appeal or
revision against the decision or order of the Collector
exercising jurisdiction under s. 18. But in view of the
long array of judicial decisions including that of the
Financial Commissioner, there can be no doubt that the State
Government or its Department can, if aggrieved, or
prejudiced by such a decision, go in appeal or revision
against it.
Firstly there is a catena of authorities which, following
the doctrine of Lindley L.J. in re Securities Insurance
Co.(1) have laid down the rule that a person who is not a
party to a decree or order may with the leave of the Court,
prefer an appeal from such decree or order if he’ "is either
bound by the order or is aggrieved by it or is prejudicially
affected by it." As a rule, leave to appeal will not be
refused to a person who might have been made ex nominee a
party-see Province of Bombay V. W. 1 Automobile
Association(2) Heera Singh v. Veerka(3) and Shivaraja v.
Siddamma(4); Executive Officer v. Raghavan Pillai(5) In re
B. an Infant (6); Govinda Menon v. Madhavan. Nair (7).
Secondly, the ruling of the Financial Commissioner in Punjab
,State v. Dr. lqbal Singh (8), which is binding on all the
authorities and Revenue Officers exercising jurisdiction
under the Act clinches the matter. There the decision of
the Special Collector declaring surplus area was reversed by
the Additional Commissioner. The State, filed against that
decision of the Additional Commissioner, a revision petition
before the Financial Commissioner. Objection was taken with
regard to the competency of the State to file that petition,
on two grounds :
(i) that the order was appealable and the revision was
incompetent and;
(ii) that the State was not a party to the original
proceeding.
The Financial Commissioner treated the revision as an
appeal, and ,overruled the objection in these terms
"The argument on behalf of the Respondents overlooks the
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fact that the Revenue Officers act in a quasi-judicial
capacity deciding such cases and if the Punjab State is
aggrieved by their orders it is as much entitled to contest
them through a remedy provided under the law as private
parties arc. In fact. there will be no justification for
discrimination against the Punjab
(1) [1894] 2 Ch. 410.
(3) A.I.R. 1958 Raj. 181.
(5) A.I.R. 1961 Kerala 114.
(7) A.I.R. 1964 Kerala 235(DB).
(2) A.I.R. 1949 Bom. 141.
(4) A.I.R. 1963 Mys. 127.
(6) [1958] Q.B. 12.
(8) [1965] Punjab Law Journal 110.
189
State in this regard and for holding that it
suffers from any disability in the matter of
agitating against decisions which are to to
detriment."
The above being in accord with the general principles
settled by the long chain of authorities, noticed earlier,
appears to be a correct exposition of the law on the point.
In the present case, neither the landowner, nor the State
made any attempt to get the decision, dated 15-9-1961 of the
Collector under s. 18 set aside or modified by way of
appeal, review or revision or other appropriate proceedings.
In a sense, therefore, that decision had become final and
conclusive.
The stage is now set for examining the contentions canvassed
at the bar with regard to the correctness or otherwise of
the findings of the High Court.
Mr. Mahajan, learned Counsel for the appellant-State
contends that the Collector, Surplus Area had rightly
ignored the sale orders dated September 15, 1961, of the
Collector purportedly passed under s. 18, in favour of Amar
Singh and Indraj and that the view taken by the High Court
is wrong, because-
(a) the lease made by the landowner in favour
of these Respondents, was itself a "transfer
of land" effecting the utilization of surplus
area, and as such, was Mt by clause (b) of of
s. 10-A, and the orders obtained on the basis
of that lease could not stand on a better
footing;
(b) the expression "transfer" in clause (b) of
this section includes. involuntary transfers,
also, brought about by operation of law, with
only two exceptions which are specifically
mentioned in that clause;
(c) these orders were consent orders and were
not based on any independent finding of the
Collector as to the existence of the the
essential condition viz., that the applicants
were in continuous occupation of the lands,’
as tenants, for the requisite period, but were
the result of compromise and collusion between
the landlady and her relation-tenants, and as
such, were null and void ;
(d) these orders had the effect of diminishing
the surplus area and as such, were orders of
"other authority" bit by clause (c) of s. 10-
A;
(e) Section 18 has to be construed in a
manner which does not defeat the object of s.
10-A. These two sections can be reconciled
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only if the operation of s. 18 is confined to
those purchases which do not adversely affect
the extent or utilization of surplus area.
In reply, Mr. S. K. Dhingra, learned Counsel for the
respondents,. maintains that a "lease" cannot be regarded as
a "transfer or disposition of land" within the meaning of
clause (b) of s. 10-A, because according to its general
scheme and object, the Act not only recognise
190
the right of a landowner to create new tenancies on his
surplus area after April 15, 1953, but further gives to such
a tenant the right to purchase his tenancy under s, 18.
Reliance has been placed on this Court’s decision in Saheb
Ram’s case (supra). Laying stress on the omission of the
word "lease" from clause (b) of s. 10-A. Counsel
has .referred to the use of the word"lease"in addition to
the word "transfer" in some what similar provision relating
to future acquisitions ins.19-A and 19-B,to show that when
ever the Legislature intended to bring a "lease" within the
sweep of such a provision, it expressly did so.
Reiterating the reasoning of the High Court, Mr. Dhingra
submits that a "sale"made in accordance with an order of the
Collector under s. 18 cannot be ignored by the Prescribed
Authority. Surplus Area, either as a "transfer" under
clause (b) or as an order of "other authority" under clause
(c) of s. 10-A. Any other interpretation, according ,to the
Counsel, will render nugatory s. 18 which is a self
contained provision intended to achieve one of the primary
objects of the Act. In support of these arguments, reliance
has been placed on a later Full Bench judgment of the Punjab
and Haryana High Court in Matti Rai and ors. v. State of
Punjab (1) which affirmed the propositions of law laid down
in the judgment under appeal Shyamlal v. State ,of Gujarat
(2) was also cited.
Replying to Mr. Mahajan’s contention (c), Counsel submits
that this was not a case where the orders of the Collector
passed under s. 18 could be said to be a nullity. The
Khasra Girdawari before the Collector with the admission of
the landowner, superadded, was sufficient material, on the
basis of which the Collector making the orders of purchase
in favour of the tenants could be satisfied about ,their
being in continuous occupation of their tenancy lands for
the requisite period. Great emphasis has been placed on the
fact that in reply to the writ petition of Amar Singh, the
State in their written statement had admitted Amar Singh’s
averment as to his being a tenant of the land for the
requisite period. Even the Surplus Area Authority, it is
pointed out, conceded in his impugned order that according
to the copy of the Khasra Girdawari on the file, Amar Singh
and Indraj were in occupation of the land as tenants since
1957-58, though such occupation was held to be of less than
six years. In these circumstances proceeds the argument,
the order dated September 15,1961, passed by the Collector
under s. 18, on the basis of compromise, could not be
treated as totally void and non-est; at the most ,they were
erroneous orders passed by the Collector in the exercise of
the distinct jurisdiction particularly conferred on him by
s.
The only remedy-adds the Counsel-of the aggrieved person or
the ’State was by way of appeal or revision as provided by
the statute and since those orders were not so challenged,
they had become final.
The Prescribed Authority, Surplus Area-it is emphasised,
while assessing the surplus area, had no jurisdiction to sit
in appeal or revision over the orders of the Asstt.
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Collector, 1st Grade passed under s.18.
(1) I.L.R.(1969) Panj. and Haryana 680
(2) [1965] 2 S.C.R. 457.
191
Reference in this behalf has been made to ss. 24 and 25 of
the Act, ss. 80 to 84 of the Punjab Tenancy Act and R.K.
Chari v. Seshadri; (1) Mohanlal v. Goenka(2); Dhaunkal v.
Man Kauri (3) and Mam Raj v. Punjab State (supra).
It will be appropriate to take contention (c), first,
canvassed by Mr. Mahajan because it is the linch-pin of the
entire case.
The question is, whether the compromise order,, were wholly
void or merely voidable. If they were of the former kind,
they would be a nullity which does not from its very nature
needs setting aside, and consequently, they could be treated
as non-existant whenever and wherever their legality comes
in question. And, the Prescribed Authority Surplus Area
would be entitled to ignore such orders as non-est
independently of the provisions of s. 10-A. In that view of
the matter, the necessity of determining as to whether those
orders are hit by clauses (b) and (c) of that section would
not arise.
If the orders were of the latter type, i.e. voidable or
erroneous, passed by the Asstt. Collector acting within his
jurisdiction under s. 18, they could be avoided or
questioned only by way of appeal,’ review or revision as
provided by the statute or in other appropriate proceedings
known to law, and the Prescribed Authority or Collector,
Surplus Area would not be entitled to go behind them and
question their validity or propriety. He shall have to
accept them as they are. In that view of the matter, the
question will still remain whether such an order of the
Assistant Collector passed by him in the exercise of his
jurisdiction in favour of a tenant under s. 18, can be
ignored as a ,,transfer" under clause (b) or as an order of
"other authority" under clause (c) of s. 10-A on the ground
that it adversely affects the utilization or extent of
surplus area.
An order is null and void if the quasi-.judicial tribunal
passing it lacks inherent jurisdiction over the parties and
the subject matter. Such was not the case here. The
Assistant Collector who made the orders dated September 15,
1961, was duly invested with the quasijudicial jurisdiction
tinder s. 18(2). All the jurisdictional facts for making
the orders under that section existed. There is no dispute
that Smt. Lachhman was not a "small landowner". It is
common ground that Field Nos.263, 343 and 177 did not fall
within her reserved area. It was not controverted that in
May 1961, when the purchase applications were made, Field
Nos. 263 and 343 were comprised in the tenancy-of Amar Singh
and Field No. 177 in that of Indraj. According to the
observation of the Surplus Area Collector, the copy of the
Khasra Girdawri on the file showed that their possession as
tenants was from 1957-58 i.e. for about 4 1/2 years only,
preceding the applications and thus according to him they
had failed to show their continuous possession for the
requisite period of six years. It is important
(1) [1968] 2 S.C.R. 848. (2) [1953] 4 S.C.R. 377 (392).
(3) [1970] LXXII P.L.R. 882 (F.B.).
192
to note further that Amar Singh in para 2 of his writ
petition pleaded:
"That on the 2nd of May 1961, the petitioner
having been in continuous occupation of land
comprised in his tenancy for a period of six
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years applied under s. 18 of the.. ..Act for
purchase of the above land, and by his order
dated 15th September 1961, Shri Hardial Singh,
Assistant Collector 1st Grade Sirsa District
Hissar, allowed the petitioner to purchase the
above land at a price of Rs. 13,590/-.. .. "
This averment of Amar Singh was admitted in the counter-
affidavit filed on behalf of the State in these terms
"Para 2 of the petition is admitted"
In the written statement filed by the State--apart from a
general statement that "in view of the facts explained by
the Collector in his order dated 11-5-62 the surplus
area .... has been rightly declared"it was not specifically
pleaded that the purchase order dated September 15, 1961,
made by the Collector under s. 18 was collusive, void or
without jurisdiction on the ground that Amar Singh and
Indraj had not been in occupation of these fields for the
full statutory period. Nor could Amar Singh and Indraj be
denied the status of ’tenants’ and the rights and privileges
attaching thereto, merely because they were related to the
landowner, the ’son-in-law’ and ’son-in-law’s brother’ not
being among the "relatives" prescribed in Rule 5 of the 1956
Rules, whose cultivation [in view of s. 2(9) of the Act may
be deemed to be the "self-cultivation" of the landowner.
To sum up, the allegation in the purchase applications about
the applicants’ being in continuous occupation of these
fields comprised in their tenancies for the requisite
period, coupled with the Khasra Girdawri on file and the
admissions made by the landlady in the compromise, furnish,-
Id sufficient material on the basis of which the Assistant
Collector, at the time of making the orders of purchase on
September 15, 1961, could have been satisfied about the
existence of all the facts essential for the exercise of his
jurisdiction under s. 18. It is not correct to say that on
the facts of the instant case, the Assistant Collector
passed those orders solely on the basis of the compromise,
without applying his mind to the case. Application of mind
is evident from the circumstance that the Assistant
Collector further assessed the price to be paid by each of
the applicants who thereafter, deposited the same in the
Government Treasury on September 29, 1961. And, it was on
the making of such deposits that the respondents were deemed
to be the owners of those fields. The mere fact that the
Assistant Collector did not record a finding in so many
words that he was satisfied from such and such material in
regard to the existence of the basic conditions necessary
for making the order under s. 18, did not render his order a
nullity when such material was otherwise evident on the
record.
In the view I take I am fortified by the decision of this
Court in K. K. Chari v. R.N. Seshadri (1). That was a case
of a compromise
(1) [1973] 1 S.C.C. 761.
193
order of eviction passed by the Rent Control Court under s.
10 of the Madras Building (Lease and Rent Control) Act,
1960. But by analogy, the ratio of that decision is an
apposite guide for the present case. There the landlord
brought an action under said Rent Act, for eviction of his
tenant, Seshadri from a house on the ground that he required
it for his bona fide use and occupation. The tenant at
first controverted the landord’s claim but subsequently,
both the parties filed a compromise in terms of which the
court passed a decree of eviction. The tenant resisted the
execution of that decree, on the ground that the decree was
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based on compromise or consent without the court having
satisfied itself by an independent consideration regarding
the bona fide requirement of the property by the landlord
for his own occupation; and as such the decree contravened
s. 10 of that Act, and was a nullity. The Bench unanimously
rejected this objection of the judgement-debtor tenant.
Vaidialingam J. (Dua J. concurring) laid down the law thus
The true position appears to be that an order
of eviction based on consent of the parties is
not necessarily void if the juri-dictional
fact viz., the existence of one or more of the
conditions mentioned in s. 10 were shown to
have existed when the Court made the order.
Satisfaction of the Court, which is no doubt a
pre-requisite for the order of eviction, need
not be by the manifestation borne out by a
judicial finding. If at some stage the Court
was called upon to apply its mind to the
question and there was sufficient material
before it, before the parties invited it to
pass an order in terms of their agreement, it
is possible to postulate that the Court was
satisfied. about the grounds on
which the’. order of eviction was Passed".
The above principle was reiterated and applied by this Court
in Nagindas Ramdas v. Dalpatram Ichchram (1).
Judged by the basic principle enunciated in the above’
decisions,the order dated September 15, 1961 passed by the
Assistant Collector under s. 18, was not a nullity which
could be ignored as non-est by the Prescribed Authority.
Even if those orders were erroneous, they could be impeached
only by way of appeal etc. as provided in the Act because
the error was committed by the Collector within the exercise
of his jurisdiction. A court or any quasi-judicial tribunal
acting within its jurisdiction can decide rightly as well as
wrongly. To use the felicitious words of S. K. Das J. vide
Smt. Ujjam Bai v. State of Uttar Pradesh (2), such
administrative bodies or officers acting in judicial
capacity" are deemed to have been invested with the power to
err within the’, limits of their jurisdiction" and their
decisions must be accepted as valid unless set aside in
appeal. This general principle was reiterated by this Court
in Ittayavira Mathai v. Varkey Varkey (3) as under
"It is well settled that a court having
jurisdiction over the subject matter of the
suit and over the parties thereto, though
(1) civil Appeal No. 2479/72 decided on 30.11.73.
(2) A.I.R. 1962 S.C. 1621=[1963]1, SCR 778.
(3) A.I.R. 1964 S.C. 907(910)=[1964]1, SCR 495.
194
bound to decide right may decide wrong and
that even though it decided wrong it would not
be doing something which it had no
jurisdiction to do. It had the jurisdiction
over the subjectmatter of the suit and over
the party and, therefore, merely because it
made an error in deciding a vital issue in the
suit, it cannot be said that it has acted
beyond its jurisdiction. As has often been
said courts have jurisdiction to decide right
or to decide wrong and even though they decide
wrong the decrees rendered by them cannot be
treated as nullifies........ It merely makes
an error or law (which) can be corrected only
(on appeal) in the manner laid down in the
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Civil Procedure Code."
The above principle are applicable with greater force to the
present case. The Prescribed Authority, surplus Area, and
the Collector competent to make an order under s. 18 are
both Assistant Collectors of the 1st Grade, that is
coordinate authorities exercising separate and distinct
jurisdictions. One cannot sit in appeal or revision over
the orders of the other. If one feels that a certain order
passed by the other in the exercise of distinct jurisdiction
is erroneous it is open to get it rectified in the
appropriate manner provided by the Act i.e. by way of
appeal, review or revision. As has already been observed
earlier, the State or the Department. if aggrieved or
prejudiced by a decision of an authority under this Act can
avail of the- remedy of appeal available under the Act in
any case, it can move the Financial Commissioner to set
right the illegality or impropriety in revision. The
Financial Commissioner it may be recalled has wide powers in
revision to correct such errors committed by the inferior
authorities in the exercise of their jurisdiction and there
is no time limit to the exercise of this revisional power by
the Financial Commissioner.
Section 25 of the Act provides
"Except in accordance with the provisions of
this Act, the validity of any proceedings of
order taken or made under this Act shall not
be called in question in any court or before
any other authority.
On analysis of the section it is clear that it gives a two
fold mandate. on one hand it debars the jurisdiction of
courts or other authorities to question the validity of any
proceeding or order taken or made under the Act and on the
other it prohibits the impeachment of such orders or
proceedings in a manner which is not in Accordance with the
provisions of the Act. it indicates that decisions of the
authorities under the Act can be challenged only by way of
appeal review or revision as provided in ss. 80, 81, 82, 83
and 84 of the Punjab Tenancy Act, 1887, made applicable by
s. 24 of the Act or in the Rules made under the Act.
The Punjab and Haryana High Court has consistently taken
this view. The Full Bench in Dhankel v. Matz Kauri (supra)
also held that the Assistant Collector while dealing with
the purchase application under s 18 has no jurisdiction to
sit in appeal or revision over the order of the Surplus Area
Collector passed in surplus area proceeding and he has no
jurisdiction to ignore that order.
195
The rule equally holds good in the con, verse. In the Full
Beach decision in Mam Raj v. Punjab State (supra) it was
held that once an application of the tenant under s. 18 has
been allowed and the other is not set aside in appeal or
revision, the same becomes final and remains immune to an
attack against its validity on any ground including that of
collusion, before the co-ordinate authorities under the Act
dealing with the question of determination of surplus area.
If I may say so with respect this proposition laid down by
the Full Bench is unexceptionable.
The above being the law on the point, it is clear that the
orders dated September 15, 1961 not having been impeached by
way of appeal, review or revision as provided by the statute
or in other proceedings Authority Surplus Area was bound to
accept them as valid. He could not go behind them or himself
sit in appeal over them. It was all the more disconcerting
in this case because the Collector who passed the orders
under s.18 and the Collector who ignored those orders as
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Prescribe Authority, Surplus Area happened to be the same
Officer.
This takes me to the next question viz, if the orders dated
September 15, 1961 were not a nullity could they be ignored
under s. 10 A on the around that they amounted to "transfer"
or orders of "other authority" affecting the utilisation or
causing the diminution of surplus area?
Before embarking upon a consideration of this question, it
is necessary to remember two fundamental canons of
interpretation applicable to such statutes. The first is
that if choice ties between two alternative constructions,
"that alternative is to be chosen which will be consistent
with the smooth working of the system which the statute
purports to be regulating; and that alternative is to be
rejected which will introduce uncertainty, friction or
confusion into the working of the system" (see Maxwell 12th
Edn. page 45). The second is that if there is an apparent
conflict between different provisions of the same enactment,
they should be so interpreted that, if possible, effect may
be given to both (see King Emperor v. Behari Lal Sharma (1).
Let us now apply the above principles to the construction of
ss. 10-A and 18. It has already been noticed that s. 18 is
designed to pro.mote one of the primary objects of the Act
viz., of procuring ownership of land to the tiller on easy
terms. It has also been seen that the self-sufficing
machinery of this section is available for purchase of their
tenancies to the tenants inducted before or after April 15,
1953, by the landowner on land not being a part of his
permissible area, equally with tenants settled on such area
by the Government. In a way, every sale made by the
operation of s. 18 in favour of tenant admitted by the land-
owner on his surplus area, causes diminution of the surplus
area or affects the utilisation thereof by the Government.
If such sales were to be ignored under s. 10-A, then it will
reduce the working of the system of the Act to a mockery.
It will mean "war" between sections 18 and 10-A. Such a
construction of the Act will present a spec-
(1) 1944 [49] C. W. N. 178 P. C.=72 I. A. 57.
196
tacle of manifest contradiction and absurdity of an Act
giving fight by one hand and taking away the same by
another. The -adoption of such an interpretation may not
completely "obliterate" S. 18, as the High Court has said,
but it will certainly truncate it. A ’Potent and
substantial limb of s. 18, which according to the ruling of
this Court in Sahib Ram’s case (supra) entities the category
of tenants inducted by the landowner after April 15, 1953 to
purchase their tenancies, would stand-as it were-"amputated"
by judicial operation such an interpretation will run
counter to the fundamental principles of construction. The
conflict between the two provisions can be avoided only if
we read the general words other authority" in cl. (c) of s.
10-A, ejusdem generis with the specific words "judgment,
decree or order of a court", which immediately precede them.
Thus construed, these general words "or other authority"
will not take in an authority exercising jurisdiction under
s. 18(2) of the Act.
Nor can the words "transfer or other disposition of land’ in
clause (b) of s. 10-A, be construed to include a transfer
which results by the process of s. 18. The meaning of these
words must be restricted to volitional dispositions of land
made by the landowner, and cannot be extended to cover
involuntary transfers brought about by operation of law or
circumstance beyond the control of the landowner. The two
type of involuntary transfers, namely, acquisition of land
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by Government under legal compulsion or by an heir by
inheritance which were inserted by the Amending Act 4 of
1959 in the saving clause of this provision and were later
given a retrospective effect from April 15, 1953, are only
clarificatory or illustrative of the original intent of the
Legislature. These two instances are not exhaustive of the
involuntary transfers which are outside the sweep of clause
(b).
This interpretation of "transfer" has been consistently
adopted by the Punjab and Haryana High Court in several
cases. Some of them in which involuntary transfers of a
kind other than those specifically mentioned in the saving
clause of clause (b) came up for consideration are reported
in Bhajan Lal v. Punjab State(1) & BishanSingh v. State (2).
This case decided pretation of the same words and
Agricultural Lands Act, 10-A of the Punjab Act; Lakshmi Raj
v. State of Haryana (3) Punjab by Mahajan j. proceeds on an
interused in s. 32-FF of the Pepsu Tenancy 1953, which is in
pari material with s.
The above is the only reasonable interpretation of the words
"transfer or other disposition of land" in s.10-A(b) which
is consistent with the content and object of s.18, and can
reconsile and: keep effective both the sections.
Though the contention of Mr. Dhingra that the words
"transfer or other disposition" in the said clause(b) do not
embrace within their scope tenancies or leases ’created by
the landowner-because such a right of the landowner is
reeognised by the Act vide sahib Ram’s case (supra)-is, not
altogether without force,yet I do not think it necessary
(1) (1968) 70 P.L.R. 664. (2) (1968) 47 LLT 284.
(3) (1971) LXXIII Punjab L. R. 815.
197
to decide that point. The lease created by Smt. Lachchman
ceased to subsist as soon as the Collector made the orders
of purchase under s. 18 in favour of the erstwhile tenants.
The question, whether the extinct lease which preceded the
purchase orders was a "transfer" or not, does not,
therefore, survive for decision.
In the light of what has been said above, I am firmly of the
opinion that the view taken by the High Court with regard to
the interpretation and inter-relationship of ss.10-A and 18
is sound and the answers given by it to the first three
questions of law set out at the commencement of this
judgment, are correct. I would, therefore, uphold the same.
Now I turn to question No. 4, which arises in Amar Singh’s
case only.
It is common ground that Field Nos. 265 and 343 on April 15,
1953, were comprised in the tenancy of Sri Chand and Nathu.
The total area of these two fields is 67 bighas and 19
biswas equivalent to 42 ordinary acres, approximately. It
is apparent from the, record that the land in these two
fields is entirely Barani and has no irrigation facilities,
whatever. According to the scale adopted by the Collector,
Surplus Area, for such land, these 42 ordinary acres will
make 10.5 standard acres. The total area of Smt. Lachchman
which has been found surplus is about 80 standard acres.
The land comprised in these two fields is thus only one-
eighth of her surplus area.
At no stage before the High Court was it contended that Sri
Chand and Nathu held or owned in the state any other land
apart from the said fields. In this Court, also, either in
the grounds of appeal or otherwise, no such allegation or
contention has been made. The "permissiable area" which can
be held or retained by a tenant under the Act is 30 standard
acres. That is to say, the permissible limit of the area
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which could be held in common by Sri Chand and Nathu, was 60
standard acres. Since it has been no-body’s case that Sri
Chand and Nathu held any other area, and the land comprised
in these two fields being 10.5 standard acres, was far less
than their permissible limit, the High Court presumed-and I
think, not wrongly that Field Nos. 265 and 343 were held by
the tenants Sri Chand and Nathu within their permissible
area.
It is well settled that surplus area has to be determined
with reference to the situation as it obtained on April 15,
1953 when the Act came into force. This proposition is
clear from s.19-F, also, which says that the Prescribed
Authority shall be competent to determine the surplus area,
referred to in s. 10-A, of a landowner out of the lands
owned by such land-owner immediately before the commencement
of the Act. If there still remained any doubt on this
point, the. same must be deemed to have been authoritatively
dispelled by the decision of this Court in Bhagwan Das v.
The State of Punjab(1). A plain reading of the definition
of ’surplus area’ in s.2(5-a) which has been quoted in a
foregoing part of this judgment, shows that land held by a
tenant within
(1) [1966] 2 S. C. R. 511.
198
his permissible area, cannot be included in the surplus area
of the landowner. Since on the determinative date i.e.
15-4-53, Field Nos. 265 and 343, measuring 10.5 standard
acres only, were held by the tenants, Sri Chand and Nathu,
within their permissible area, these fields could not, in
view of the mandate of s. 2(5-a), be included in the surplus
area’ of Smt. Lachchman. At the time, when the Surplus
Area Collector took up determination of the surplus area
(which as pointed out in Dhannkal’s case (supra) implies
incidental verification of the permissible areas of the
landowner and the tenants, also) these fields were still
comprised in a tenancy, though the holder of the tenancy was
a different tenant. In these circumstances, the change of
the tenant will not make these Fields accrete to the surplus
area of the landowner. Such change of the tenant does not
amount to a future "acquisition of land comprised in that
tenancy by the landowner within the comtemplation of ss. 19-
A or 19-B of the Act. Such a situation came up for
consideration before a Division Bench (consisting of Sharma
and Khosla JJ) of the Punjab High Court in Harchand Singh v.
Punjab State. (1) Sharma J. who spoke for the Bench, made
these observations:
"There can be no doubt that in the instant
case the surplus area was to be determined on
the date the Act came into force i.e. 15th
April 1953, and further that the area in the
cultivating possession of a tenant if within
the prescribed limit was also to be excluded
from consideration. Section 10-A governs the
disposition of land which was comprised in a
surplus area at the commencement of the Act
and not the land which was not surplus on that
date or had become surplus after the coming
into force of the Act. The latter case was
evidently covered by ss. 19-A and 19-
B of the
Act.............. the mere change in tenancies
will not attract the provisions of these
sections provided the area which the tenant
comes to occupy there by does not exceed the
permissible area. By changing a tenancy a
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landlord also can not be said, to have
acquired the land comprising the tenancy
because the land (which) belonged to him
before hand continued to belong to him after
the change in tenancy. The term "acquire" has
not been defined in the Act and so we have to
accept its dictionary meaning as, "To make
property one’s own. To gain permanently. It
is regularly applied to permanent acquisition"
(Bouvier’s Law Dictionary and Concise
Encyclopaedia, Eighth Edition, Vol. I. P.
114)"
(1) (1964) 66 P.L.R. 285; 1963 P.L.J. 144.
199
These observations, in my opinion, contain a correct
statement of law on the point.
For the foregoing reasons, I would hold that these two
fields could not be included in the surplus area of the
landowner, Smt. Lachman and s.10-A was not attracted to a
disposition of these fields either by an order made under s.
18 or otherwise.
In the result, I would dismiss both these appeals, leaving
the parties to bear their own costs in this Court.
ORDER
In accordance with the Judgment of the majority, the appeals
are allowed, but in the circumstances, the parties will bear
their costs throughout.
V.P.S.
200