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State of Gujarat v. Patel Raghav Natha

State of Gujarat v. Patel Raghav Natha

LOK Law Journal

LOK 1969 (4) SC 212

Equivalent citations: AIR 1969 (SC) 1297 : 1969 (2) SCC 187 : 1970 (1) SCR 335 : 10 GujLR 992 : AIR 1969 SC 1297

Court
Supreme Court of India
Bench
S.M. Sikri, J.; R.S. Bachawat, J.; K.S. Hegde, J.
Decided on
Case No.
Civil Appeals No. 723 of 1966
For petitioner / appellant
R. H. Dhebar, Urmila Kapoor and S. P. Nayar, for the appellant.
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Cases referred 3

  1. MI. Relying on Shri Mithoo Shahani v. Union Referred (Para 87)
  2. Government of Bombay v. Mathurdas Referred (Para 1940)
  3. State of Bombay v. Chhaganlal Referred (Para 1940)

Referred in 3

  1. A.V. Papayya Sastry v. Government of A.P. & Oth LOK 2007 (3) SC 74 Referred (Para 1)
  2. Pune Municipal Corporation v. State of Maharashtra & Ors. LOK 2007 (2) SC 264 Referred (Para 34)
  3. Hindustan Times Ltd. v. Union of India LOK 1998 (1) SC 71 Referred (Para 1)

Judgment

Sikri, J. This appeal by special leave is directed against. the judgment of the High Court of Gujarat (Vakil, J.) allowing the application filed by Patel Raghav Natha, respondent before us and hereinafter referred to as the petitioner, and quashing the order dated October 12, 1961, passed by the Commissioner, Rajkot Division. The Commissioner by this order had set aside the order of the Collector, dated July 2, 1960, granting permission to the petitioner to use some land in Survey No. 417 for non-agricultural purposes.

In order to appreciate the contentions raised before us it is necessary to set out a few facts. The petitioner was a resident of the State of Rajkot and at an auction effected by the State, he acquired on or about September 22, 1938, agricultural land bearing survey No. 417 which in all measured about 12 acres and 12 ganthas. After some acquisitions by the State out of this survey number he was left with 2 acres and 10 ganthas of agricultural land. On October 20, 1958, the petitioner applied to the Collector for permission to convert this land to non-agricultural use, under s. 65 of the Bombay Land Revenue Code, 1879, hereinafter referred to as the Code. This petition was first rejected by the Collector, but the Divisional Commissioner remanded the matter to the Collector. On remand, the then Collector of Rajkot, after holding an enquiry, granted permission to the petitioner to use the land for non-agricultural use by his order dated July 2, 1960. Pursuant to this order a sanad was issued by the Collector to the petitioner on July 27, 1960. It appears that the sanad was amended on November 3, 1960 and December 1, 1960. The sanad was in form MI and a number of conditions were appended to the sanad. Condition 6 of the main sanad provided that "save as herein provided, the grant shall be subject to the provisions of the said code." The special conditions originally included a condition that the land shall be used exclusively for constructing residential houses (condition 5) but this condition was altered in November 1960.

It appears that the Municipal Committee of Rajkot had ob-jected to the grant of permission before the Collector when a sketch of the land was sent to the Municipality. The objections as they appear from the order of the Collector granting the sanad were directed against the accuracy of the sketch, showing the northern and tile western comers of the Ramkrishna Ashram, and regarding the boundaries and situation of the roads in survey Nos. 417 and 418. The Collector had overruled these objections.

The Municipal Committee approached the Commissioner to exercise powers under s. 211 of the Code. The Commissioner noted the objections of the Municipality and after reciting the objections and the arguments of the learned counsel for the petitioner and after inspecting the site, observed :

"From this inspection the contentions of the

Municipality as to the existence of the

various roads as well as the nature of the

Kharaba land has been proved beyond doubt.

In light of the above arguments as well as the

site inspection and the papers of the case, I

set aside the order of the Collector granting

N.A. Permission. I consider, on weighing all

evidence cited above, that the land does not

belong to Shri Raghav Natha."

It is this order which has been quashed by the

High Court.

The following grounds were urged before the

learned Judge

(1) The Commissioner or the State Government

had no authority under Section 211 of the Code

to revise the order of the Collector so as to

affect the agreement or sanad granted to him.

(2) The Commissioner's order is not a

speaking order as no reasons are given by him

for setting aside the Collector's order and,

therefore, it should be quashed.

(3) The question of title to the land was

not in controversy at all before the Collector

and, therefore, it was not open to the

Commissioner to permit the Municipality to

agitate that question and the Commission had

no jurisdiction to decide that question.

(4) In case the above points are not

accepted, the order of the Commissioner is bad

even on merits as the Commissioner had erred

in law in allowing the question to be agitated

before him which were not agitated before the

Collector and which involved considerations

which were completely foreign to those which

were actually before the Collector.

While dealing with ground No. 1 the learned Judge held that the Commissioner had no jurisdiction to pass an order which would nullify the sanad, and that the sanad was binding on both the parties till it was set aside in due course of law. On the second ground he held that there was some force in the submission. But he observed :

"But at the same time if I had to decide this

case on this contention raised, I may not have

interfered only on this ground, with the

decision of the Commissioner".

On the third ground he found that it was true that the question of title was agitated by the Municipal Committee for the first time before the Commissioner, though it was primarily for the petitioner to show that he was an occupant within the meaning of s. 65 of the Code. But then the learned Judge decided not to enter into the merits of the case as he had come to the clear conclusion that the Commissioner had no authority to pass the order that he did under s. 211 of the Code.

The learned counsel for the State of Gujarat, Mr. Dhebar, challenges the decision of the High Court that the Commissioner had no jurisdiction to pass the order dated October 12, 1961. The relevant provisions of the Code and the Land Revenue Rules, 1921, hereinafter referred to as the Rules, are as follows "The Bombay Land Revenue Code, 1879

48. (1) The land revenue leviable on any

land under the provisions of this Act shall be

assessed, or shall be deemed to have been

assessed, as the case may be, with reference

to the use of the land-

(a) for the purpose of agriculture,

(b) for the purpose of building, and

(c) for a purpose other than agriculture or

building.

(2) Where land assessed for use for any

purpose is used for any other purpose, the

assessment fixed under the provisions of this

Act upon such land shall, notwithstanding that

the term for which such assessment may have

been fixed has not expired, be liable to be

altered and fixed at a different rate by such

authority and subject to such rules as the

State Government may prescribe in this behalf.

(3) Where land held free of assessment on

condition of being used for any purpose is

used at any time for any other purpose, it

shall be liable to assessment.

(4) The Collector or a survey officer may,

subject to any rules made in this behalf under

section 214, prohibit the use for certain

purposes of any unalienated

land liable to the payment of land revenue,

and may summarily evict any holder who uses or

attempts to use the same for any such

prohibited purpose.

65. An occupant of land assessed or held for

the purpose

of agriculture is entitled by himself, his

servants, tenants, agents, or other legal

representatives, to erect farm-buildings,

construct wells or tanks, or make any other

improvements thereon for the better

cultivation of the land, or its more

convenient use for the purpose aforesaid.

But, if any occupant wishes to use his holding

or any part thereof for any other purpose the

Collector's permission shall in the first

place be applied for by the occupant.

The Collector, on receipt of such application,

(a) shall send to the applicant a written

acknowledgment of its receipt, and

(b) may, after due inquiry, either grant or

refuse the permission applied for :

Provided that, where the Collector fails to

inform the applicant of his decision on the

application within a period of three months,

the permission applied for shall be deemed to

have been granted; such period shall, if the

Collector sends a written acknowledgment with-

in seven days from the date of receipt of the

application, be reckoned from the date of the

acknowledgment, but in any other case it shall

be reckoned from the date of receipt of the

application.

Unless the Collector shall in particular

instances otherwise direct, no such

application shall be recognized except it be

made by the occupant.

When any such land is thus permitted to be

used for any purpose unconnected with

agriculture it shall be lawful for the

Collector, subject to the general order of the

State Government, to require the payment of a

fine in addition to any new assessment which

may be leviable under the provisions of

section 48.

66. If any such land be so used without the

permission of the Collector being first

obtained, or before the expiry of the period

prescribed by section 65, the occupant and any

tenant, or other person holding under or

through him, shall be liable to be summarily

evicted by the Collector from the land so used

and from the entire

field or survey number of which it may form a

part, and the occupant shall also be liable to

pay, in addition to the new assessment which

may be leviable under the provisions of

section 48 for the period during which the

said land has been so used, such fine as the

Collector may, subject to the general orders

of the Provincial Government, direct.

Any tenant of any occupant or any other person

holding under or through an occupant, who

shall without the occupant's consent use any

such land for any such purpose, and thereby

render the said occupant liaable to the

penalties aforesaid, shall be responsible to

the said occupant in damages.

67. Nothing in the last two preceding

sections shall prevent the granting of the

permission aforesaid on such terms or

conditions as may be prescribed by the

Collector, subject to any rules -Made in this

behalf by the Provincial Government."

"Land Revenue Rules, 1921

87. (a) Revision of non-agricultural

assessment-

(b) When land is used for non-agricultural

purposes is assessed under the provisions of

rules 81 to 85, a sanad shall be granted in

the Form M if the land is used for building

purposes, in Form NI if the land is used

temporarily for N-A purposes other than

building in Form N in all other cases.

Provided that if the land to be used for

building purposes is situated within the

limits of a municipal corporation constituted

under the Bombay Municipal Corporation Act or

the Bombay Provincial Municipal Corporation

Act, 1949 the Sanad shall be granted in Form

M-1;……….

The relevant extracts from the agreement

(sanad) are given below :

Whereas application has been made to the

Collector (hereinafter referred to as 'the

Collector' which expression shall include any

officer whom the Collector shall appoint to

exercise and perform his powers and duties

under this grant) under section 65 of the Bom-

bay Land Revenue Code 1879 (hereinafter

referred to as 'the said Code' which

expression shall where the context so admits

include the rules and orders thereunder) by

inhabitant of Madhya Saurashtra being the

registered occupant of survey No. 417 in the

village of in the Taluka (hereinafter referred to as 'the applicant' which expression shall where the context so admits include his heirs, executors, administrators and assigns) for permission to use for building purposes the plot of land (hereinafter referred to as the 'said plot'), described in the first schedule hereto and indicated by the letters…… on the site plan annexed hereto, forming part of survey No. 417 and measuring acres 2 gunthas 17, be the same a little more or less.

When used under rule 51 for land already occupied for agricultural purposes within certain surveyed cities the period for which the assessment is leviable will be ordered to coincide with the expiry of 99 years' period running in that city.

Now this is to certify that permission to use for building purposes, the said plot is hereby granted subject to the provisions of the said code, and on the following conditions, namely :-

(1) Assessment……

(6) Code provisions applicable ':-Save except as herein provided, the grant shall be subject to the provisions of this code In witness whereof the Collector of has set his hand and the seal of his office on behalf of the Governor of Bombay, and the applicant has also here-unto set his hand, this day the of 19 .

Signature of Applicant Signature and designations

of witnesses

Signature of Collector Signature and designations

of witnesses We declare that who has signed this notice is, to our personal knowledge, the person he represents himself to be, and that he has affixed his signature hereunto in our presence."

It will be noticed that application is made under s. 65 of the Code and it is under s. 65 that the Collector either grants or refuses the permission applied for. It will be further noticed that if the Collector fails to inform the applicant of his decision on the application within a period of three months the permission applied for shall be deemed to have been granted, but if the Collector sends a written acknowledgment within seven days from the date of receipt of the application then the three months period is reckoned from the date of acknowledgment, and in other cases this period is reckoned from the date of receipt of the supCI/69-8 application. The Collector having given permission under s. 65 he can prescribe conditions under s. 67 of the Code. Under s. 48(2) where the land assessed for use, say for agricultural purposes, is used for industrial purposes, the assessment is liable to be altered and fixed at a different rate by such authority and subject to such rules as the State Government may prescribe in this behalf. The rates for non-agricultural assessment are fixed under rr. 81, 82, 82A, 82AA, 84 and 85 of the Rules. Rule 87(b) provides that where land is assessed under the provisions of rr. 81 to 85, a sanad shall be granted. Under the proviso to r. 87 (b) it is obligatory for the sanad to be granted in form MI. Relying on Shri Mithoo Shahani v. Union of India(1) the learned counsel contends -that there is a distinction between an order granting permission under s. 65 and the agreement contained in the sanad which is issued under, r. 87 (b). He urges that even if the sanad may not be revisable under s. 211 of the Code, the order granting permission under s. 65 is revisable under s. 21 1, and if this order is revised the sanad falls along with the order. We need not give our views on this alleged distinction for two reasons; first, that this point was not debated before the High Court in this case or in earlier cases**, and -secondly, because we have come to the conclusion that the order of the Commissioner must be quashed on other grounds. Section 211 reads thus

"211. The State Government and any revenue

officer, not inferior in rank to an Assistant

or Deputy Collector or a Superintendent of

Survey, in their respective departments, may

call for and examine the record of any inquiry

or the proceedings of any subordinate revenue

officer, for the purpose of satisfying itself

or himself, as the case may be, as to the

legality or property of any decision or order

passed, and as to the regularity of the

proceedings of such officer.

The following officers may in the same manner

call for and examine the proceedings of any

officer subordinate (1) [1964] 7 S.C.R. 103

(1) The Government of the Province of Bombay

v. Hormusji Manekji–(1940) Letters Patent

Appeal No. 40 of 1938, decided on August 8,

1940.

(2) The Government of Bombay v. Mathurdas

Laljibhai Gandhi-44 B.L.R. 405.

(3) The State of Bombay v. Chhaganlal

Gangaram Lavar-56 B.L.R. 1084.

(4) Government of Bombay v. Ahmedabad

sarangpur mills Co.-A.I.R. 1944 Bom. 244.

(5) Secretary of State v. Anant Nulkar-36

B.L.R. 242 (P.C.)

(6) Province of Bombay v. Hormusji Manekji-

50 B.L.R. 524 (P.C.).

to them in any matter in which neither a formal nor a summary inquiry has been held, namely,…. a Mam-latdar, a Mahalkari, an Assistant Superintendent of Survey and an Assistant Settlement Officer.

If in any case it shall appear to the State Government or to such officer aforesaid that any decision or order or proceedings so called for should be modified, annulled or reversed, it or he may pass such order thereon as it or he deems fit;

Provided that an Assistant or Deputy Collector shall not himself pass such order in any matter in which a formal inquiry has been held, but shall submit the record with his opinion to the Collector, who shall pass such order thereon as he may deem fit."

The question arises whether the Commissioner can revise an order made under s. 65 at any time. It is true that there is no period of limitation prescribed under s. 211, but it seems to us plain that this power must be exercised in reasonable time and the length of the reasonable time must be determined by the facts of the case and the nature of the order which is being revised.

It seems to us that s. 65 itself indicates the length of the reasonable time within which the Commissioner must act under, s. 21 1. Under s. 65 of the Code if the Collector does not inform the applicant of his decision on the application within a period of three months the permission applied for shall be deemed to have been granted. This section shows that a period of three months is considered ample for the Collector to make up his mind and beyond that the legislature thinks that the matter is so urgent that permission shall be deemed to have been granted. Reading ss. 211 and 65 together it seems to us that the Commissioner must exercise his revisional powers within a few months of the order of the Collector. This is reasonable time because after the grant of the permission for building purposes the occupant is likely to spend money on starting building operations at least within a few months from the date of the permission. In this case the Commissioner set aside the order of the 'Collector on October 12, 1961, i.e. more than a year after the order, and it seems to us that this order was passed too late.

We are also of the opinion that the order of the Commis-sioner should be quashed on the ground that he did not give any reasons for his conclusions. We have already extracted the passage above which shows that after reciting the various contentions he badly stated his conclusions without disclosing his reasons. In a matter of this kind the Commissioner should indicate his reasons, however, briefly, so that an aggrieved party may carry the matter further if so advised. We are also of the opinion that the Commissioner should not have gone into the question of title. It seems to us that when the title of an occupant is disputed by any party before the Collector or the Commissioner and the dispute is serious the appropriate course for the Collector or the Commissioner would be to refer the parties to a competent court and not to decide the question of title himself against the occupant.

In the result the appeal is dismissed with costs. V.P.S. Appeal dismissed.

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