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Lakhia Singh Patra And Others v. Jotilal Aditya Deo And Others
Factual and Procedural Background
This appeal was brought by defendants 1 to 5 against a judgment and decree of the District Judge of Singhbhum which had set aside the judgment and decree of the Aie Munsif and decided in favour of the plaintiff. The suit sought a declaration of title and recovery of possession of a culturable area of land (17 bighas 5 kathas 13 dhurs) being part of khata No. 32 in village Tulagram (police station Chandil, Singhbhum).
Background facts as stated in the opinion: Harinarain Patar was the recorded raiyat of khata No. 32 and died leaving three sons — Mangobinda, Dhananjoy and Ramgopal. Mangobinda died leaving a widow, Sarala Patarani (defendant No. 10). The plaintiff alleged that a private partition gave a portion of the family land to Mangobinda (later to defendant No.10), who surrendered it to the landlord on 22-10-1946 under a registered deed of surrender (Ext. 5/2.a). The landlord allegedly settled the land (including the suit land) on the plaintiff by a registered deed of settlement dated 21-9-1949 (Ext. 2/2.b). The plaintiff claimed possession as an occupancy raiyat following settlement.
The plaintiff alleged that on 5-3-1958 defendants 1–5 (with labourers 6–9) cut the standing paddy on the suit land and that by 5-12-1958 he had been dispossessed. He instituted the present suit for declaration of title, recovery of possession and alternatively for partition of a one-third share and a money claim (Rs. 300) for the paddy.
Procedurally: The Aie Munsif found the surrender and settlement to be collusive, held the transaction contravened the Chota Nagpur Tenancy Act (section 40 referenced by the Munsif), and dismissed the suit. The District Judge reversed the Munsif, held that defendant No. 10 had been in possession and lawfully surrendered the land to the landlord and that the plaintiff had settled title and possession by settlement within twelve years; the District Judge rejected the defence based on section 46 of the Chota Nagpur Tenancy Act. Defendants 1–5 appealed from the District Judge's judgment; the present opinion disposes of that appeal.
Legal Issues Presented
- Whether the deed of surrender by defendant No. 10 to the landlord and the subsequent settlement by the landlord in favour of the plaintiff (though executed on different dates) constituted one transaction collusively designed to circumvent section 46 of the Chota Nagpur Tenancy Act.
- Whether section 46 of the Chota Nagpur Tenancy Act applied to the pargana of Patkum (district of Manbhum) and therefore could invalidate the transactions in question.
- Whether the plaintiff could succeed on a possessory title despite an underlying fraudulent or collusive transaction to obtain possession.
- Whether the District Judge erred in awarding mesne profits to be determined in a subsequent proceeding when such a claim was not pleaded in the plaint.
Arguments of the Parties
Appellants' (Defendants 1–5) Arguments (Mr. Sarkar)
- The learned District Judge erred in his finding regarding the plaintiff's possession; the Judge did not properly discuss the evidence on possession before concluding the plaintiff had proved subsisting title within twelve years.
- The deed of surrender executed by defendant No. 10 was collusive (she was not in exclusive possession) and the subsequent settlement formed part of the same transaction — a disguised sale circumventing section 46 of the Chota Nagpur Tenancy Act, and therefore void.
- Because the surrender and settlement were part of a single collusive transaction, the plaintiff's possession derived from fraud, and he should not be aided by the court (invoking the principle ex dolo malo non oritur actio and authorities such as Kedar Nath v. Prahlad Rai).
- The District Judge erred in granting mesne profits to be determined later where no such claim was made in the plaint.
Respondent's (Plaintiff) Arguments (Mr. Roy)
- Defendant No. 10 lawfully surrendered under section 72 of the Chota Nagpur Tenancy Act and, after acceptance, the landlord was entitled to resettle the holding with anyone, including the plaintiff; therefore the settlement in favour of the plaintiff was lawful.
- The surrender and the settlement were not part of the same transaction and were not collusive; a gap of about three years between them demonstrates independent transactions, relying on authority distinguishing cases where dates coincide.
- Even if the court found the plaintiff to have been in possession and later dispossessed, he could claim on a possessory title basis (relying on Govind v. Jagnarain and the proposition that possession is good title against all but the true owner).
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Barie Santhal v. Fakir Santhal, AIR 1924 Pat 793 (Bucknill, J.) | Held that surrender is not a "transfer" within section 46 and that a circuitous arrangement (surrender + settlement with third party paying consideration) may not be illegal. | The decision was cited for the opposite view to that taken by other judges; the opinion records it and contrasts it with subsequent decisions, noting that some judges followed that approach but the court ultimately did not accept it for the facts before it. |
| Golap Gadi v. Rampariksha, AIR 1958 Pat 553 (Kanhaiya Singh, J.) | Held surrender lawful and landlord may resettle; but if surrender and settlement amount to one transaction devised to bypass section 46, the transaction is intrinsically invalid. | The court agreed with the principle in Golap Gadi that where surrender and settlement are one collusive transaction to bypass section 46 they are invalid; it applied that principle to find collusion in the instant case. |
| Moti Chand v. Ikram Ullah Khan, AIR 1916 P.C. 59 (Privy Council) | Arrangements or devices to defeat statutory policy (relevant tenancy provisions) are illegal, void and cannot be enforced by civil or revenue courts. | Relied upon as authority supporting the proposition that devices to circumvent statutory tenant protections are void; used to support the court's conclusion that the surrender and settlement were a device to circumvent section 46. |
| Hagru Kumhar v. Chhukunath Mandal, Second Appeal No. 1030 of 1921, D/-11-4-1923 (Pat) | Unreported decision in which Bucknill, J. followed the view in Barie Santhal. | Noted among unreported decisions; shows that earlier Patna decisions followed the Barie Santhal line, but the court observed the divergence of views in later authorities. |
| Jaibir Prasad v. Budhan Rai, Second Appeal No. 939 of 1961, D/-18-4-1963 (Pat) (Khaleel Ahmad, J.) | Khaleel Ahmad, J. inclined to accept view in Barie Santhal though calling the question difficult; noted procedural points about pleading of contravention of section 46. | Referenced as an instance of judicial disagreement; the opinion records it but does not adopt that view for the present facts. |
| Syed Yusuf v. Thapa Kole, Second Appeal No. 212 of 1961, D/-22-11-1963 (Pat) (Khaleel Ahmad, J.) | Khaleel Ahmad, J. followed Bucknill, J.'s approach (i.e., the Barie Santhal line). | Noted among the authorities showing differing decisions in Patna; the court did not follow this view for the present case. |
| Biro Bhumijani v. Khirode Chandra Mandal, Second Appeal No. 767 of 1958, D/-11-5-1960 (Pat) (Mahapatra, J.) | Summarised position: whether surrender and settlement are one transaction depends on facts; if they are collusive and one transaction then void as device to defeat statutory policy. | The court relied on Mahapatra, J.'s summary that the question depends on facts; used that framework to examine the instant case and concluded the transactions were one collusive transaction. |
| Govind v. Jagnarain, ILR 30 Pat 1007 : AIR 1952 Pat 314 | Held that possession is good title against all but the true owner; possession can create an interest capable of inheritance, devise or conveyance, subject to limitation that possession must not be obtained by force or fraud. | The plaintiff relied on this authority for a possessory title, but the court rejected that basis because possession in the instant case was found to have been procured by fraud/collusion. |
| Kedar Nath v. Prahlad Rai, AIR 1960 S.C. 213 (Supreme Court) | Reaffirmed principle of public policy: courts will not assist a plaintiff who founds cause of action on an immoral or illegal act (ex dolo malo non oritur actio); cited Holman v. Johnson and Lord Mansfield. | Relied upon to support the proposition that a plaintiff who has procured possession by fraud/collusion cannot obtain relief in court; applied to deny the plaintiff relief based on possessory title. |
| Holman v. Johnson (1775) 1 Cowp. 341; 98 E.R. 1120 | Classic articulation of the maxim ex dolo malo non oritur actio — public policy that courts will not lend aid to a plaintiff who bases his cause on an immoral or illegal act. | Quoted in the Supreme Court decision (Kedar Nath) and relied on in the present opinion to bar the plaintiff from relief when his possession derived from a collusive transaction. |
| Sundar v. Parbati (1890) ILR 12 All. 51 (P.C.) (Lord Watson) | Observation that possession must be "lawfully attained" (i.e., not procured by force or fraud) to qualify for the protection that possession gives. | Used to emphasise that the possessory-title principle does not apply where possession was obtained by fraud; supported the court's refusal to award relief on possessory title. |
Court's Reasoning and Analysis
The court's analysis proceeded in the following principal steps, explicitly grounded in the materials and authorities cited in the opinion:
-
Applicability of the Chota Nagpur Tenancy Act (section 46) to the locality:
- The District Judge had erred in holding that section 46 had not come into force in the district containing the pargana of Patkum. The appellate court examined the historical notifications (including notification no. 5335 of 22-12-1908, notification no. 4010-L of 16-12-1909 and notification no. 1929-T.R. dated 7-10-1910) and the text of sub-section (3) of section 1 of the 1908 Act which permitted extension by State Government notification. The court concluded section 46 (except sub-section (5)) had been extended to Manbhum (including Patkum) and therefore applied to the transactions in this case.
- The court summarized the content of section 46 as it stood in 1946 (sub-sections (1)–(5), with (7) making transfers in contravention of (2), (3) or (4) unregistrable and invalid in any court, and (8) requiring registration for validity).
-
Examination of the evidence as to the surrender and settlement:
- The court examined the recital of the deed of surrender dated 22-10-1946 (Ext. 5) in which Sarala Patarani recited that she was in need of money for litigation, that she was permitted to surrender, that the landlord desired to settle the land permanently with Jyotilal Aditya Dev, and that Sarala received Rs. 800 as compensation from the plaintiff "as directed" by the landlord.
- The settlement deed (Ext. 2) in favour of the plaintiff evidenced the landlord accepting Rs. 500 as salami for making the settlement; the deed itself did not mention the surrender.
- Trial testimony of the plaintiff (P.W.9) supported the recital: he testified that he paid Rs. 800 to Sarala at the landlord’s direction, was present at the surrender, was asked by Sarala to request the landlord to settle the land with him, and was told by the landlord that the land would be settled with him and that he should cultivate it on the landlord's behalf after surrender.
-
Legal synthesis and characterization of the transaction:
- Given the recital in the deed of surrender and the plaintiff's testimony, the court found that the surrender and the later settlement were part of a single scheme: all three parties (Sarala, the landlord and the plaintiff) participated in a transaction designed to place the land ultimately in the plaintiff's hands.
- The court rejected the District Judge's reliance on the three-year gap between surrender and settlement as dispositive. It held that a mere difference in dates does not preclude the conclusion that separate documents were part of the same collusive transaction; allowing such formal separation would enable circumvention of statutory prohibitions.
- The court expressly applied the legal principle — drawn from authorities such as Moti Chand (Privy Council) and the analysis in Mahapatra, J.'s decision in Biro Bhumijani — that where surrender and subsequent settlement are a device to bypass statutory protections (section 46), the arrangement is invalid and will not be enforced by courts.
-
Application of precedent and public policy:
- The opinion surveyed conflicting authorities (Bucknill's line in Barie Santhal and related Patna decisions, and the line represented by Kanhaiya Singh, J. and the Privy Council). It accepted the approach that, while a surrender and a later settlement may be genuine in some circumstances, if they are shown to be a single contrivance to circumvent section 46 they are void.
- Accordingly, the court concluded that, on the facts of this case, the surrender and settlement together were a device to circumvent the mandatory provisions of section 46 (noting the caste status of defendant No.10 as a scheduled caste member and the plaintiff being Kshatriya), and therefore the transaction was hit by section 46 and invalid.
-
Possessory title and fraud:
- The plaintiff's argument that he nevertheless held a possessory title was considered in the light of authorities (Govind v. Jagnarain and sundry Privy Council dicta). The court emphasised the limitation that possession must have been lawfully attained (i.e., not procured by force or fraud) for the possessory-title principle to operate.
- Applying the public-policy principle (ex dolo malo non oritur actio) as explained in Kedar Nath v. Prahlad Rai and Holman v. Johnson, the court held that the plaintiff could not rely on possession obtained through the collusive transaction; equity and public policy bar assistance to a plaintiff founding his title on an illegal or fraudulent device.
-
Procedural/pleading point on mesne profits:
- The court agreed with the appellants that the District Judge erred in granting a decree for mesne profits to be determined later because no such claim was made in the plaint; that contention prevailed.
-
Miscellaneous:
- The court observed that nothing in its judgment affects the interest of defendant No.10 as against the appellants; it was unnecessary to decide any question concerning that interest for the purposes of this appeal.
Holding and Implications
Holding: The appeal is allowed and the suit is dismissed. More specifically: Appeal allowed; the plaintiff's claim is rejected and the suit is dismissed with costs in favour of the appellants.
Implications:
- The appellate court held the surrender by defendant No. 10 and the subsequent settlement in favour of the plaintiff to have constituted one collusive transaction designed to circumvent the mandatory provisions of section 46 of the Chota Nagpur Tenancy Act; therefore the transaction is invalid and cannot be enforced.
- The plaintiff cannot rely on a possessory title where possession was obtained by fraud or collusion; public-policy principles (ex dolo malo non oritur actio) bar relief to a plaintiff whose cause of action rests on an illegal device.
- The District Judge's order permitting mesne profits to be determined subsequently was set aside because no claim for mesne profits had been pleaded in the plaint.
- The court expressly stated that its judgment does not affect the rights of defendant No. 10 as against the appellants; the court did not decide any question relating to those inter se rights.
- The decision applies existing doctrines and authorities to these facts; the opinion addresses statutory application and factual collusion but does not purport to announce a novel legal principle beyond applying cited precedents and established public-policy rules.
Result reported in the opinion: "In the result, the appeal is allowed and the suit is dismissed with costs throughout payable to the appellants in this court. Appeal allowed."
1. This appeal by defendants 1 to 5 is directed against the judgment and decree of the District Judge of Singhbhum setting aside a judgment and decree of Aie Munslf and consequently dismissing a suit for declaration of title to and recovers of possession of a culturable area of land measuring 17 bighas 5 kathas 13 dhurs being a portion of khata No. 32 in village Tulagram police station Chandil in the district of Singhbhum.
2. One Harinarain Patar was the recorded raiyat of khata No. 32. He died leaving behind three sons, namely, Mangobinda, Dhananjoy and Ramgopal, Mangobinda died leaving a widow named Sarala Patarani (defendant No. 10 in the suit). Dhananioy and Ramgopal died long ago. Defendants 1 to 3 are the sons of Dhananjoy and defendants 4 and 4(a) are his two widows. Defendant No. 5 is the son of Ramgopal. The case of the plaintiff respondent was that after the death of Harinarain his three sons came in possession of the family property, including the suit land. There was a private partition, by which the land described in schedule 2 to the plaint fell to the share of Mangobinda and after his death inherited by defendant No. 10. She held this land for sometime but surrendered it to the landlord on the 22nd October, 1946, under a registered deed of surrender (Ext. 2.a), and the landlord settled the land, which Includes the suit land, on the 21st September, 1949, with the plaintiff under a registered deed (Ext. 2.b). It was then alleged that since the surrender the landlord was in possession of the land and since the date of settlement the plaintiff was in possession of the same as an occupancy raiyat thereof.
3. On the 5th March, 1958, defendants 1 to 5 along with their labourers who are defendants 6 to 9, are said to have cut away the standing paddy crops from the suit land. On account of this occurrence, the plaintiff instituted a criminal case against these defendants, but they were all acquitted. As a cloud had been cast on the title of the plaintiff and by the said occurrence the plaintiff was dispossessed by defendants 1 to 5 on the 5th December, 1958, he instituted the present suit the main relief which he claimed has been stated in the beginning of the judgment. He however, sought an alternative relief for partition by metes and bounds of one-third share in the family land described in Schedule 3 to the plaint that share being that of the branch of Mangobinda he also claimed a decree for Rs. 300 against the defendants as the price of the paddy crops cut and removed by them.
4. Defendants 1 to 4 and 4(a), i.e, the descendants of Dhananjoy contested the suit. Their defence was that there was never any partition of the family property by metes and bounds: rather, after the death of Harinarain, all his sons held the family property jointly, though, for the sake of convenience, each one of them cultivated some land separately. Defendant No. 10 was not in actual possession of the land described in Schedule 2 to the plaint and the deed of surrender, if any, executed by her must be collusive. The plaintiff never got possession of the land and the same was in possession of Dhananjoy and, after his death, of his widow, defendant No. 4. For convenience of cultivation, she gave the land to defendants 1 to 3 for being cultivated as bhagidars. The allegation regarding theft of the standing crops was denied it was also pleaded that the alleged surrender and settlement formed part of the same transaction, which contravened section 40 of the Chota Nagpur Tenancy Act.
5. The learned Munsif found that defendant no. 10 was never in exclusive possession of any family land and that the documents of surrender and settlement were collusive and sham transactions and that the transaction in question contravened the provisions of section 40 of the Chota Nagpur Tenancy Act. He also disbelieved the other allegations of the plaintiff and dismissed the suit. The learned District Judge, however, decided all the facts in favour of the plaintiff. He held that defendant no. 10 was in possession of the suit land and surrendered it to the landlord and ultimately the plaintiff was in possession of the same on the basis of a settlement made with him. He was, therefore, of the opinion that the plaintiff had proved his subsisting title to the suit land within a period of twelve years. The plea of the defendants in respect of section 46 of the Act was rejected by him on two grounds One of the grounds was that prior to the amendment in 1947 by Bihar Act 25 of 1947 this Act did not apply to the district of Manbhum. The other ground was that, inasmuch as there was a gap of about three years between the date of surrender and the date of settlement, the two did not form part of the same transaction and therefore, there was no contravention of Section 46 of the Act. Lastly, the learned Judge held that, inasmuch as there was no evidence in respect of the amount and price of the standing paddy crops which had been cut away by the defendants, mesne profits should be determined in a subsequent proceeding, because the possession of the defendants after the paddy crops had been cut away was illegal.
6. Mr. Sarkar who appeared for the appellants, challenged the finding of the learned District Judge regarding possession. He submitted that the learned Judge had not discussed the evidence regarding possession of the plaintiff, though he had come to the conclusion towards the end of the judgment that the plaintiff had proved his subsisting title to the suit land within a period of twelve years. He has in the previous paragraphs discussed the evidence regarding possession of Mangobinda and his widow Sarala (defendant no. 10) and then accepted the case of surrender to the landlord and settlement by the landlord with the plaintiff. He has observed that there is not an iota of evidence that Dhananioy was ever in possession of the suit land and that the plaintiff could not have taken settlement of the land, if defendant no. 10 had not been in possession thereof and she had not actually surrendered the land to the landlord. Reading the entire discussion by the learned Judge, the only inference is that he accepted the case of the plaintiff that he had been in possession of the suit land since at least from the date of settlement and that, before the surrender, defendant no. 10 had been in possession having exclusive possession thereof in her own rights. Hence, this contention of Mr. Sarkar fails.
7. The learned Judge, however, committed an error in respect of his finding regarding the applicability of section 46 of the Chota Nagpur Tenancy Act. He has observed that this section had not come into force in the district of Manbhum, which included those days the pargana of Patkum, in which the suit land is situated. But it appears that by notification no. 5335, dated the 22nd December, 1908, published in the Calcutta Gazette on the 23rd December, 1908, certain sections of the Act were extended to Parganas Barahabhum and Patkum in the district of Manbhum, by the then Local Government, and the whole Act was extended to the district of Manbhum by notification 4010-L. ??? dated the 16th December, 1909, published in the Calcutta Gazette on the 22nd December, 1909. As in a number of cases in Manbhum the Act was construed to have affected the existing rights retrospectively notification no. 4010 was rescinded and the Act was re-extended to the district of Manbhum with the exception of certain sections, by notification no. 1929-T.R. dated the 7th October, 1910, in exercise of the power conferred by sub-section (3) of section 1 of the Chota Nagpur Tenancy Act, 1908. By this notification section 46 except sub-section (5) thereof was also extended. Sub-section (5) is, however, not material, because it dealt with transfers made bona fide before the 1st January, 1903. Mr. Roy, who appeared on behalf of the plaintiff respondent, did not dispute the fact that section 46, except sub-section (5) thereof, and most of the other provisions of the Act had been extended to the whole of Manbhum district, including the pargana of Patkum, by the aforesaid notification dated the 7th October, 1910.
8. In sub-section (2) of section 1 of the Act it was stated that the Act would extend to Chota Nagpur Division, “except the district of Manbhum” and the words quoted were omitted from section 1 by the amendment in 1947. Apparently, the learned Judge did not see any copy of the Act before 1947 and, therefore, he missed sub-section (3) of section 1 of the old Act, according to which the Act or any portion thereof was to be extended to the district of Manbhum or to any part thereof by the State Government by notification.
9. Sub-section (1) of section 46 of the Act, as it stood in 1946, enacted that no transfer by a raiyat of his right in his holding or any portion thereof shall be valid to any extent except as provided in that section. These exceptions were contained in the subsequent sub-sections. Sub-section (2) provided that an aboriginal raiyat or a raiyat who was a member of a scheduled caste could transfer his right in his holding or any portion thereof by mortgage for a certain period or by lease for a certain period. Under sub-section (3), an occupany raiyat, who was an aboriginal or a member of a scheduled caste could transfer his right in his holding or a portion thereof by sale or exchange to another aboriginal or another member of the scheduled caste, and who was resident within the local limits of the police station area in which the holding was situated.
10. According to sub-section (4), an occupancy raiyat, not being an aboriginal or a member of a scheduled caste, could transfer his right in his holding or any portion thereof to any person who was resident within the local limits of the same police station by sale, exchange, gift, will, mortgage or lease; and a non-occupany raiyat, not being an aboriginal or a member of a scheduled caste, could transfer his right in his holding or any portion thereof to the same extent as an aboriginal raiyat or a raiyat who was a member of a scheduled caste could transfer his right in his holding or portion thereof in accordance with sub-section (2). Sub-section (5) enabled a raiyat who had transferred his holding or any portion thereof in contravention of the provisions of that section or on the expiration of the period for which he had transferred any part of his holding in accordance with some of the provisions to make an application to the Deputy Commissioner who was empowered then to eject the transferee and place the raiyat in possession. Sub-secs. (7) and (8) of the section read as follows:
“(7) No transfer by a raiyat in contravention of sub-section (2), (3) or (4) shall be registered or shall be in any way recognised as valid by any Court whether in the exercise of civil, criminal or revenue jurisdiction.
(8) No transfer by a raiyat of his right in his holding or any portion thereof by sale, exchange, gift, mortgage or lease shall be valid unless it is made by registered instrument.”
11. It was contended by Mr. Sarkar that in the instant case the alleged surrender and settlement constituted one transaction, viz., the transaction of sale by defendant no. 10 of the suit land to the plaintiff and, therefore, the transaction contravened the relevant provisions of section 46, and it was void. On the other hand, Mr. Roy submitted that defendant no. 10 was perfectly entitled to surrender the land to the landlord under section 72 of the Act, and, thereafter, the landlord could legally settle the land with anybody. He disputed the contention of Mr. Sarkar that the surrender and the settlement in the instant case constituted one transaction or that the two transactions were collusive and fraudulent.
12. Several decisions were cited in support of the respective contentions. In Barie Santhal v. Fakir Santhal, AIR 1924 Pat 793(2) Bucknill, J. held that it was open to a tenant under the Chota Nagpur Tenancy Act to surrender his holding for a pecuniary consideration to the landlord and, inasmuch as a surrender is not a transfer within the meaning of section 46, even where a third party had paid consideration to a tenant as a result of which the tenant had agreed with the landlord to surrender his holding while the landlord had agreed to re-settle the property with the person who had given the consideration to the outgoing tenant, this circuitous arrangement could not in law be regarded as definitely illegal. This decision was considered by Kanhaiya Singh, J. in Golap Gadi v. Rampariksha, AIR 1958 Pat. 553, and his Lordship took a different view. It was held by his Lordship that a surrender under section 72 of the Act was lawful and that, after having accepted the surrender, the landlord is perfectly at liberty to re-settle the holding with some other person or take the land into cultivation himself. But his Lordship further observed that in the case where both the surrender and the subsequent settlement of the land amount to one transaction, the main object of which was to by-pass the statutory provisions of section 46, the transaction becomes intrinsically invalid, although considered separately the surrender and the settlement may have the appearance of legality.
13. In this connection, his Lordship relied on the decision of the Judicial Committee in Moti Chand v. Ikram Ullah Khan, AIR 1916 P.C 59. In that case, the defendants had sold certain zamindari to the plaintiffs and in the sale deed the defendants contracted to relinquish their sir and khudkasht lands and give possession thereof to the plaintiffs or in default the defendants would be liable to damages. In pursuance of the agreement contained in the sale deed, the defendants executed a deed of relinquishment in favour of the plaintiffs of their claim and right in all their sir lands in the mauzas conveyed. They, however, refused to file the deed of relinquishment in the Revenue Court and refused to quit possession of the sir lands of which they continued in possession as ex-proprietary tenants. Hence, a suit for damages and breach of the contract was brought. The main question before their Lordships of the Judicial Committee was whether the agreement to relinquish and surrender their sir lands was lawful. Sub-section (1) of section 10 of U.P Act II of 1901 provided that, on transfer of the proprietary rights by sale, the ex-proprietor shall become a tenant with a right of occupancy in his sir lands and in the land which he had cultivated continuously for twelve years at the date of the transfer and shall be entitled to hold the same at a rent determined in the manner laid down therein. By sub-section (4) of section 10, such a tenant was called an “ex-proprietary tenant”. Section 20 of the Act prohibited transfer of the interest of an ex-proprietary tenant in execution of a decree of a Civil or Revenue Court or otherwise than by voluntary transfer between persons in favour of whom as cosharers in the tenancy, such right originally arose, or who have become by succession cosharers therein Section 83 of the said Act conferred upon the tenant a right to surrender his holding to the landlord at the end of an agricultural year Sub-section (3) of section 83 provided that nothing in that section shall affect any arrangement by which a tenant and his landlord might agree to the surrender of the whole or any portion of the holding. On these facts their Lordships of the Privy Council observed inter alia:
“The policy of the Act is not to be defeated by any ingenious device, arrangements or agreements between a vendor and a vendee for the relinquishment by the vendor of his sir land or land which he has cultivated continuously for twelve years at the date of the transfer for a reduction of purchase money on the vendor's failing or refusing to relinquish such lands. All such devices, arrangements and agreements, are in contravention of the policy of the Act and are contrary to law and are illegal and void, and cannot be enforced by the vendee in any civil court or in any court of revenue”.
14. Kanhaiya Singh, J. observed therefore that the policy of the Legislature in enacting section 46 of the Chota Nagpur Tenancy Act was, more or less, the same, namely to secure to the tenants inhabiting the area to which the Act applied their rights in their occupancy holding and to protect them from the avaricious money-lenders: and with due respect we agree with him.
15. There are some unreported decisions too. The earliest one is the decision of Bucknill, J. in Second Appeal No. 1030 of 1921 Hagru Kumhar v. Chhukunath Mandal, D/- 11-4-1923 (Pat). His Lordship's view in this case was the same as in the aforesaid case of Bario Santhal, AIR 1924 Pat 793(2). There are two decision of Khaleel Ahmad, J. In Second Appeal no. 939 of 1961, Jaibir Prasad v. Budhan Rai, D/- 18-4-1963 (Pat) his Lordship seems to have differed from Kanhaiya Singh, J. and was inclined to accept the view taken by Bucknill, J., though he felt that the question was not free from difficulty. Before observing that, as then advised, his Lordship was inclined more to accept the view as laid down in Bario Santhal's case, AIR 1924 Pat 793(2). His Lordship also referred to the submission of counsel that the question of contravention of section 46 of the Chota Nagpur Tenancy Act had not been pleaded in the written statement or debated in the trial court and consequently the plaintiffs could not give evidence in support of the view that it was a case which was not hit by section 46. In the other case, viz., Second Appeal No. 212 of 1961, Syed Yusuf v. Thapa Kole, D/- 22-11-1963 (Pat) Khaleel Ahmad J., again followed the decision of Bucknill, J., and was not inclined to accept the view taken by Kanhaiya Singh, J. But in none of the aforesaid decisions of Bucknill, J. and Khaleel Ahmad J., the decision of the Privy Council in the case of Moti Chand, AIR 1916 P.C 59 has been referred to.
16. The decisions of Bucknill, J., Kanhaiya Singh, J. as well as the Privy Council were considered by Mahapatra, J. in Second Appeal no. 767 of 1958, Biro Bhumijani v. Khirode Chandra Mandal, D/- 11-5-1960 (Pat). In this decision, his Lordship has, if we may say so with respect, correctly summarised the legal position thus:
“It will depend upon the circumstances of each case. If it will be found as a fact that all the transactions which lead from surrender to the possession of the new coming tenant are one and the same transaction, brought about in collusion between the extenant, would-be-tenant and the landlord, then it will be taken to be a device to defeat the statutory provision and the policy of the Legislature as embodied in those provisions. Such device will not be encouraged nor will it be given effect to by the courts as has been held in the case of AIR 1916 PC 59.”.
17. Let us now examine the facts in the instant case, keeping the said position in law in view. In the deed of surrender (Ex. 5) dated 22-10-1946, Sarala Patarani says:
“I having stood in great need of money for meeting the expenses of litigations prayed to you for permitting me to surrender the said rent paying land in your favour. You granted my prayer and permitted me to make surrender and you desiring to settle the same permanently with Jyotilal Aditya Dev, resident of Ghoralingi (directed him to pay me) Rs. 800 as compensation and according to your order, I received the said amount of compensation from him I surrendered the said land to you and shall, from this day, be fully divested of (all) rights thereto. You shall, from this day, continue to enjoy and possess the said land by making permanent settlement thereof with the said Joytilal Aditya Dev. In future I shall have no claim or demand or objection thereto.”
18. It will be seen from the recital that plaintiff Jyotilal gave Rs. 800 as compensation to Sarala as directed by the landlord to whom she was making the surrender, and that the landlord would enjoy and possess the surrendered land by making a permanent settlement thereof with Jotilal this indicates that really the surrender was being made with the object of giving the land to the plaintiff and all the three, namely. Sarla the landlord and the plaintiff were parties to this transaction. Nothing is important in the deed of settlement (Ext. 2) by the landlord to the plaintiff, except that the landlord received Rs. 500/- as salami for making the settlement. It is an ordinary deed of settlement without any reference to the surrender. It is remarkable that in the trial court the plaintiff (P.W 9) stated that after the surrender the landlord asked him to cultivate the disputed land on his (landlord's) behalf. He also claimed to have been present at the time of surrender. He said that he was told by Sarla that she was surrendering the land as she was in need of money for the expenses of litigation; she had requested the landlord to settle the land with him (i.e, the plaintiff); she also asked the plaintiff to request the landlord, so that he might settle the land after the surrender with him; and the plaintiff paid Rs. 800 to her as consideration for these matters at the direction of the landlord.
19. In view of this evidence and the recital in the deed of surrender, it is clear that the surrender and the settlement constituted an ingenious device to circumvent section 46 of the Act, even though apparently there was a gap of about three years between the date of surrender and the date of the deed of settlement. A direct transfer by Sarala to the plaintiff would have been hit by the provision of that section and, therefore, she and the plaintiff in collusion with the landlord took recourse to this circuitous arrangement. We are, therefore, satisfied from the facts and circumstances of the case that the surrender and the settlement constituted one transaction and were adopted as a device to circumvent section 46 of the Act.
20. The learned District Judge distinguished the decision of Kanhaiya Singh, J. in the case of Golap Gadi, AIR 1958 Pat 553 on the ground that the date of surrender and the date of settlement was the same in the case before his Lordship. Mr. Roy, therefore, laid much stress on the unreported decision of Mahapatra, J. in the case of Biro Bhumijani, S.A No. 767 of 1958 D/- 11-5-1960 (Pat) aforesaid. In that case the surrender had taken place between 1945 and 1947 through three registered documents and the settlement had been made in 1948. After observing that the answer to the question whether these transactions would be said to be one and the same or different transactions would depend on the facts and circumstances of the case. Mahapatra, J. referred to certain facts and came to the conclusion that in the case before his Lordship they did not form part of the same transaction. The first fact mentioned there is the admission of the defendant that the father of the plaintiffs who had taken the settlement came in possession of the land under Khaikhalasi documents executed by their ancestor Pabnu Bhumii which documents preceded the settlement in favour of the plaintiffs' father.
21. His Lordship then said that this fact was clearly in violation of a case of one transaction. His Lordship referred to the findings of the courts below that the plaintiffs' father came in possession under the settlement taken from the landlord and posed the question as to what happened during the period from 1945, when Pabnu surrendered the land, and 1948, when the plaintiffs' father took the settlement? His Lordship answered this question by observing that the possession of the plaintiffs or their father during that period cannot but be under an arrangement made between Pabnu Bhumij and the plaintiffs' father and that arrangement cannot but be the Khaikhalasi documents, and this fact clearly indicated that the settlement of 1948 was an act independent of the surrender which had taken place between 1945 and 1947. This is the most important distinguishing feature in that case. There is nothing to explain the possession of the plaintiff in the instant case, except the surrender and the settlement taken together. The fact whether the surrender and the settlement took place on the same day or on different dates even during the period of two or three years cannot by itself justify the inference that the two transactions did not constitute one and the same transaction. Such an inference would give the parties an opportunity to circumvent the law by getting the two documents executed on two different dates or in two different years.
22. The facts and circumstances, including the evidence of the plaintiff, relating to the surrender and the settlement in the instant case which have been summarised earlier lead to the irresistible conclusion that they formed part of the same transaction. It must, therefore, be held that it was a device to circumvent the mandatory provisions of section 46 of the Chota Nagpur Tenancy Act, which prohibits the sale of his holding or a portion thereof by a person of the scheduled caste to one who is neither an aboriginal nor a member of the scheduled caste, inasmuch as it is not disputed in this case that defendant no. 10 is a member of the scheduled caste and the plaintiff is a Kshatriya by caste. We are, therefore, unable to agree with the learned District Judge that the transaction in question was not hit by section 46.
23. The last submission of Mr. Roy was that the plaintiff is entitled to a decree in the basis of possessory title in view of the finding that he was in possession of the suit land and he had been dispossessed on the 5th March, 1958, by the appellants Reliance was placed on a bench decision in Govind v. Jagnarain, ILR 30 Pat 1007 : (AIR 1952 Pat 314) where it was held that possession is good title against all that the true owner and a person in peaceable possession of land has, as against every one but the true owner, an interest capable of being inherited, devised or conveyed Mr. Roy submitted that the plaintiff was entitled to a decree against the appellants, who are not the true owners of the suit land, as found by the court below. But the principle enunciated above is subject to one important limitation. In support of that principle, Ramaswami, J. (as he then was) quoted an observation of Lord Watson in Sundar v. Parbati, (1890) ILR 12 All. 51 (P.C) On a sentence from the extract of Lord Watson's observations is important for the instant case: “Their possession was lawfully attained, in the sense, that it ‘was not procured by force or fraud,’ but peaceably, no one interested opposing.”
24. Mr. Sarkar has drawn our attention to the underlined (here into) words and submitted that, inasmuch as, in the instant case a fraud was practised by the plaintiff in collusion with defendant no. 10 and the landlord, he is not entitled to the aid of the court: and in support of this submission he relied on a few decisions, of which it will be sufficient to refer to the decision of the Supreme Court in Kedar Nath v. Prahlad Rai, AIR 1960 S.C 213. Their Lordships of the Supreme Court approved the observations of Lord Mansfield in Holman v. Johnson, (1775) 1 Cowp. 341, 343 : 98 E.R 1120, 1121:
“The principle of public policy is this; ex dolo malo non oritur actio. No court will lend its aid to man who founds his cause of action upon an immoral or an illegal act. If, from the plaintiff's own stating or otherwise, the cause of action appears to arise ex turpi causa, or the transgression of a positive law of this country, there the Court says he has no right to be assisted. It is upon that ground the court goes; not for the sake of the defendant, but because they will not lend their aid to such a plaintiff. So if the plaintiff and defendant were to change sides, and the defendant was to bring his action against the plaintiff the latter would then have the advantage of it; for where both are equally in fault, potiorest condition defendants.”
25. These observations support the contention of Mr. Sarkar.
26. In the instant case, the plaintiff did not base his claim on possessory title rather, he sought the reliefs claimed on the basis of the surrender and the settlement which have been found to have formed part of the same transaction and to have been fraudulently brought into existence as a device to circumvent the mandatory provisions of section 46 of the Chota Nagpur Tenancy Act. Hence, the plaintiff cannot succeed in the instant case on the basis of possessory title.
27. Another contention of Mr. Sarkar was that the learned District Judge committed an error in granting a decree for mesne profits to be determined in a subsequent proceeding, inasmuch as no such claim was made in the plaint: and this contention must also prevail.
28. Incidentally it may be mentioned that nothing in this judgment shall affect the interest of defendant No. 10 as against the appellants in respect of the disputed land, inasmuch as, in our opinion, It is not necessary for us to decide any question in respect of the same.
29. In the result, the appeal is allowed and the suit is dismissed with costs throughout payable to the appellants in this court.
AGJ/D.V.C
30. Appeal allowed.
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