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Factual and Procedural Background

These two petitions (Civil Writ No. 323 of 1963 and Civil Writ No. 2413 of 1963) arise from excess allotments of agricultural land made in lieu of land left in Pakistan. In Civil Writ No. 323 of 1963 the petitioner Jagmohan Singh was allotted 30 standard acres 8 units (16 acres 7½ units in Kachroli Garden Colony and 14 acres ½ unit in Ratipur). In Civil Writ No. 2413 of 1963 the petitioner Rachhpal Kaur was allotted 47 standard acres 8½ units but was found to have been allotted land in excess (the exact excesses are stated in the record) and those excess allotments were cancelled. The cancellations themselves were not disputed.

The Department offered that the petitioners could retain the cancelled (excess) area if they were willing to pay the market price. The petitioners contended that they were entitled to retain the excess area on payment of Rs. 450 per Standard Acre, relying on certain Rules under the Displaced Persons (Compensation and Rehabilitation) Rules (specifically references to Rules 36, 56 and 62 were invoked in their argument). The Department also demanded rent in respect of the cancelled area, in some instances at the rate of 8 times the land revenue.

The petitions raise three main matters (set out below) and were heard; the court disposed of both petitions by a single order. The petitions were ultimately dismissed with costs of Rs. 50 in each petition.

Legal Issues Presented

  1. Whether the petitioners are entitled to buy/retain the excess land at the fixed rate of Rs. 450 per Standard Acre (as asserted under Rules 36, 56 and 62 of the Displaced Persons Rules).
  2. Whether the petitioners are liable to pay rent at 6 times the land revenue (as they contended) rather than 8 times the land revenue (as demanded by the Department).
  3. Whether the petitioners are entitled to compensation for improvements made on the areas being withdrawn from them.

Arguments of the Parties

Petitioners' Arguments

  • The petitioners submitted that, in view of Rules 56 and 62 of the Displaced Persons (Compensation and Rehabilitation) Rules (and Rule 36 providing the highest rate of Rs. 450 per standard acre for conversion), they should be allowed to retain the excess land on payment of Rs. 450 per Standard Acre.
  • They argued that, although those Rules do not technically apply to them, they should be treated similarly to other displaced persons to whom those Rules do apply.
  • They contested the demand for rent at 8 times the land revenue and contended that only rent at 6 times the land revenue could be demanded.
  • They asserted that improvements had been made on the withdrawn land and sought compensation (this contention was not pressed in the petitions because of the Chief Settlement Commissioner's view that improvements could be agitated at the time of actual withdrawal).
  • Counsel (Mr. Wasu) relied on the decision in Bishan Singh v. Central Government (1961-63 Pun LR 75 : AIR 1961 Punj 451) to argue that executive directions could not fix the price of land in place of rules.
  • Counsel also relied on Rule 72 of the Rules to contend entitlement to transfer of excess land.

Department's Arguments (as recorded)

  • The Department's position was that the excess land, being pool property vested in the Central Government under Section 14 of the Act, could be transferred (including by sale) under Section 20 of the Act, and the Department had offered to sell the excess land to the petitioners at the market price as an ex-gratia offer.
  • The Department maintained that there was no provision in the Act or rules that bound it to sell the excess land at a fixed price (such as Rs. 450) to these petitioners; therefore the petitioners had no vested right to demand transfer at a particular price.
  • With respect to rent, the Department relied on principles of assessment specified by the Central Government under Section 19(4) of the Act (annexure R.1) which prescribed 8 times land revenue where allotments were obtained by fraud or concealment, and 6 times in other cases; the demand for 8 times was made pursuant to this specification and after affording a hearing.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bishan Singh v. Central Government, 1961-63 Pun LR 75 : AIR 1961 Punj 451 That executive instructions cannot take the place of Rules and rights of parties cannot be settled by executive instructions when Rules govern the matter. The court held that this precedent did not apply to the present facts. In Bishan Singh the holders of urban agricultural land were entitled to purchase under the Act and the sales matter was governed by executive directions; that situation differs from the present case where the petitioners have no right to the excess land and the Department's offer is an ex-gratia offer rather than a statutory entitlement. Therefore the precedent was not followed to invalidate the Department's price determination.

Court's Reasoning and Analysis

The court proceeded through a step-by-step analysis grounded on the Act and the Rules as they apply (or do not apply) to the petitioners:

  1. Applicability of Rules: The court noted that Rules 56 and 62 (in Chapter VIII) do not apply to the petitioners because Rule 69 excludes application of Chapter VIII to allottees from the State of Punjab and the Patiala and East Punjab States Union (PEPSU). Consequently, neither Rule 56 nor Rule 62 applies to these petitioners.
  2. No statutory entitlement to purchase at Rs. 450: The court observed there is no provision in the Displaced Persons Act, 1954 equivalent to Rule 62 that would entitle these petitioners to acquire the excess land at the fixed rate of Rs. 450. Rule 36 (which fixes the highest conversion rate at Rs. 450) and the explanation to Rule 62 were held to be inapplicable to the petitioners by virtue of Rule 69.
  3. Ownership and power to transfer: All agricultural land in Punjab forms part of the compensation pool and vests in the Central Government (Section 14). Section 20 confers power to transfer property out of the compensation pool, including by sale. The Department's offer to sell the excess land was an exercise of that power and was characterised as ex-gratia (i.e., not as a legal entitlement under the Rules).
  4. Classification and Article 14: The court reasoned that treating different classes (allottees governed by Chapter VIII and those not so governed) differently is permissible; distinct classification of allottees is not necessarily discriminatory or violative of Article 14. The court observed that any favourable treatment of other classes may reflect legislative policy or a lacuna but it is not the Court's function to lay down legislative policy or to fill lacunae.
  5. Limitation on petitioners' rights: The petitioners had no vested right to demand transfer of excess land at a particular price. The Central Government, as owner of the pool property, could offer the land on terms it deems fit; the petitioners could accept the offer or decline it but could not dictate terms.
  6. Inapplicability of Bishan Singh: The court considered the petitioners' reliance on Bishan Singh and distinguished it on its facts. In Bishan Singh the sale entitlement and treatment by executive directions was materially different; therefore that case did not assist the petitioners.
  7. Rule 72: The court expressly found the petitioners' reliance on Rule 72 to be "wholly fallacious" because Rule 72 does not confer any right to acquire land in excess of the allotment.
  8. Rent assessment under Section 19(4): The court analysed Section 19(4) (which permits assessment of rent by a managing officer or corporation having regard to principles specified by the Central Government) and noted that the Central Government, under that provision, specified principles of assessment (annexure R.1) prescribing rates: 8 times the land revenue where allotments were obtained by fraud/concealment and 6 times in other cases. The demand for rent at 8 times was made pursuant to that specification.
  9. Procedural fairness: The court recorded that the petitioner had been afforded a hearing before the rent at 8 times land revenue was demanded, and that the petitioner contested the demand but the Department rejected the contention on merits. The court found no reason to interfere and held the Department's order on this issue was neither illegal nor without jurisdiction.
  10. Compensation for improvements: The Chief Settlement Commissioner took the view that the question of compensation for improvements could only be determined at the time of actual withdrawal; that question was left open for departmental determination and was not pressed before the court in these petitions.

Holding and Implications

Core Ruling: The petitions are DISMISSED.

Direct consequences and implications (as stated in the opinion):

  • The petitioners' primary contention that they were entitled to retain excess land at Rs. 450 per Standard Acre (by analogy to Rules 36/56/62) was rejected because those Rules do not apply to them (Rule 69 excludes them) and there is no statutory right to demand transfer at a particular price.
  • The Department's offer to sell at market price was held to be an ex-gratia offer and not a legally mandated sale at a fixed price; the Central Government/Department may offer transfer on terms it deems fit and the petitioners have no vested right to dictate terms.
  • The challenge to the demand for rent at 8 times the land revenue failed: the Central Government's specification under Section 19(4) (annexure R.1) provided for assessment at 8 times in certain cases and the petitioner had been afforded a hearing; the Department's decision was held not to be illegal or beyond jurisdiction.
  • The contention as to compensation for improvements was not pressed before the court; the Chief Settlement Commissioner's approach left that question open for determination at the time of actual withdrawal by the Department.
  • The petitions were dismissed with costs assessed at Rs. 50 in each petition, and no new legal principle or precedent was established by this decision beyond the application of the Act and Rules to the facts before the court.

Order recorded: "Petitions dismissed." (I.D. Dua, J. agreed.)

    Jagmohan Singh v. Union Of India Through The Joint Secretary To Govt. Of India Ministry Of Works, Housing And Rehabilitation, Jaiselmer House, New Delhi And Others

    D.K Mahajan, J.:— This order will dispose of Civil Writs Nos. 323 of 1963 and 2413 of 1963. The basic facts in both the petitions are the same. The difference is only with regard to the parties and the area. In Civil Writ No. 323 of 1963, the petitioner (Jagmohan Singh) was allotted 30 standard Acres 8 Units of land on verification of his claim in lieu of the land left by him in Pakistan as follows:

    Standard Acres. Units (i) In Kachroli Gardon Colony 16 7½ (ii) In village Ratipur, tehsil Panipat. 14 ½

    2. In Civil Writ No. 2413, the petitioner (Rachhpal Kaur) was allotted 47 Standard Acres 8½ Units of land in lieu of the land left in Pakistan. His petitioners were found to have been allotted land in excess to the extent of 12 Standard Acres and 12¼ Units, and 9 Standard Acres 10¾ Units respectively. Allotments of land made in excess were cancelled. The validity of the cancellation is not in dispute. The petitioners were offered that they could keep the cancelled area if they were willing to pay the market price of the same. The petitioners however took the stand that they were entitled to retain the excess area on payment of its price at the rate of Rs. 450/- per Standard Acre. This stand was taken in view of Rules 56 and 62 of the Displaced Persons (Compensation and Rehabilitation) Rules. It is not disputed that these Rides do not apply to the petitioners. But it is maintained that with regard to the petitioners there should have been such Rules and in the absence of Rules, the petitioners should be treated similarly with other displaced persons to whom these rules apply. With regard to the area which was found to be in excess and was cancelled, a demand was also made by the Department for rent at the rate of 8 times the land revenue.

    3. In the present petitions only three matters are canvassed, namely:

    1. that the excess land should be sold to the petitioners at the rate of Rs. 450/- per Standard Acre;

    2. that the petitioners are liable only to pay rent at the rate or 6 times the land revenue and not 8 times the land revenue; and

    3. that the petitioners had made improvements on the areas which are being withdrawn from them and as such they are entitled to compensation.

    4. With regard to compensation, the Chief Settlement Commissioner took the view that “the question of compensation can possibly be agitated at the time of actual withdrawal of the land because it can only at that time be determined if any improvement had been made on the land”. The question of improvements has therefore been left open for determination by the department. In this view of the matter, this contention has not been pressed in the present petitions. With regard to the first contention, the argument proceeds like this: Rule 36 of the Displaced Persons (Compensation and Rehabilitation) Rules—hereinafter referred to as the Rules—provides for the conversion of a standard acre of land into cash for purposes of payment of compensation and fixes the highest rate per standard acre at Rupees 450/-. Rule 62 on the other hand provides that in case of excess allotment of agricultural land an allottee who wishes to retain excess land shall be required to pay the value of the excess land in installments to be determined by the Settlement Commissioner. The explanation to Rule 62 provides that the value of the land shall be determined at the rate mentioned in Rule 56. Therefore the petitioners should also be charged the price of excess land at Rs. 450/- per standard acre.

    5. It is common ground that the petitioners are allottees from Punjab and that there is no similar provision with regard to allottees of agricultural land in the States of Punjab and Patiala and East Punjab States Union. Rule 69 excludes the application of Chapter VIII (in which rules 56 and 62 occur) to such allottees. In terms neither Rule 56 nor Rule 62 applies to the petitioners. The question that arises is: At what price the land has to be transferred? The stand of the department is that the land can only be transferred at its market price whereas the stand taken up by the petitioners is that they are entitled to its transfer at the rate of Rs. 450/- per standard acre. It is not disputed that there is no provision in the Displaced Persons (Compensation and Rehabilitation) Act, 1954—hereinafter called the Act—like Rule 62, which would entitle the petitioners to the transfer of the excess lands to them.

    6. All agricultural land in the Punjab forms part of the compensation pool and vests in the Central Government free from all encumbrances and has to be utilised in accordance with the provisions of the Act and the Rules made thereunder, see S. 14 of the Act. Section 20 confers power of transfer of property out of the compensation pool and one of the modes of transfer is by sale. It follows, therefore, that the proper authorities under the Act have the power to transfer pool property by sale and it is in accordance with this provision that offer of transfer of the excess land was made by the Department. The offer is ex-gratia. It is not an offer as a matter of law as is in the case of persons governed by Rule 62.

    7. It is axiomatic that an owner of the property cannot be forced to sell property at any particular price, unless there is a statutory provision to that effect. In this situation the position is that an owner i.e the Department has offered to sell the excess land to the petitioners at the market price. There is no provision either in the Act or in the rules where under the department is bound to make the offer and that too at a fixed price. Therefore the offer to sell at the market price cannot be said to be discriminatory inasmuch as the allottees in the States of Punjab and the Patiala and East Punjab States Union, and the allottees outside these States do not fall in one category but belong to distinct categories. Such classification cannot be said to be in any manner unreasonable. It is now well settled that different classes can be differently treated and such differential treatment will not be violative of Article 14 of the Constitution.

    8. It may be that the Legislature wanted to favour allottees who were not allotted lands in the States of Punjab and Pepsu and formed a separate and distinct class, and, therefore, made rules which are to be found in Chapter VIII, whereby a right has been conferred on them under Rule 62. No such corresponding right has been conferred on allottees of land in the States of Punjab and Pepsu. That is a matter of legislative policy or at best it may be a case of lacuna, but it is not for this Court either to lay down the legislative policy or to fill up the lacuna. So far as the Act and the Rules are concerned, the fact of the matter is that the petitioners have no right to demand the transfer of excess allotment of land, at a particular price. The land belongs to Central Government and the Central Government has the right to sell it at the price it deems fit. So far as the petitioners are concerned, there is no vested right in them to get the transfer of excess land. If they want the land they can take it only if it is offered to them and at the price at which it is offered. They have no right to dictate terms to the Department.

    9. Mr. Wasu, learned counsel for the petitioners raised the contention that under executive directions the department could not fix the price-the land. In support of this contention he relies upon the decision of this Court in Bishan Singh v. Central Government, 1961-63 Pun LR 75 : (AIR 1961 Punj 451). This decision has no application to the facts of the present case. In Bishan Singh's case, 1961-63 Pun LR 75 : (AIR 1961 Punj 451) the holders of urban agricultural land were entitled to purchase that land under the Act and the matter of such sales was settled by the executive directions. In this situation this Court held that Executive instructions could not take the place of rules and the rights of the parties could not be settled with reference to those instructions. So far as the present case is concerned, the petitioners have no right to the land and as such they can make no grievance, If it is not offered to them. If it is offered to them they have to take it in terms of the offer or leave it.

    10. Mr. Wasu then relied on Rule 72 of the Rules for his contention that the petitioners were entitled to the transfer of the excess land.

    11. This contention is wholly fallacious because Rule 72 does not confer any right on the petitioner to acquire the land in excess of his allotment.

    12. For the reasons given above, the first contention has no merit and must fail.

    13. With regard to the second contention, it will be proper to advert to the provisions of S. 19(4) of the Act, which is in these terms:

    “19(4) Where a managing officer or a managing corporation is satisfied that any person whether by way of allotment or of lease is, or has at any time been, in possession of any evacuee property acquired under this Act to which he was not entitled, or which was in excess of that to which he was entitled, under the law under which such allotment or lease was made or granted, then, without prejudice to any other action which may be taken against that person, the managing officer or the managing corporation may, having regard to such principles of assessment of rent as may be specified in this behalf by the Central Government, by order, assess the rent payable in respect of such property and that person shall be liable to pay the rent so assessed for the period for which the property remains or has remained in his possession.”

    14. In exercise of the powers conferred by section 19(4) Government passed the following order which is annexure R. 1 to the written statement:

    “In exercise of the powers conferred by sub-section (4) of section 19 of the Displaced Persons (Compensation and Rehabilitation) Act, 1954 (44 of 1954) the Central Government hereby specifies the following principles of assessment of rent for purposes of charging the same from a person who is, has at any time, been in possession of such evacuee property as is specified below in the State of Punjab, and acquired under the said Act, to which he was not entitled, under the law under which the allotment or lease thereof was made or granted to him, for the period for which the property remains or has remained in his possession.

    1. In case of allotments or leases of evacuee agricultural lands which has been obtained by fraud or concealment of material or facts by the allottees or lessees; 8 times the land revenue shall be charged as rent.

    2. In any other case of allotment or lease of evacuee agricultural lands as aforesaid: 6 times the land revenue shall be charged as rent.”

    15. It is in pursuance of annexure R. 1 to the written statement that the rent at 8 times the land revenue has been demanded. All that the petitioner was entitled to is a hearing and it is patent from the record that he was afforded a hearing before the rent at 8 times the land revenue was demanded from him. As a matter of fact he contested the demand of rent at 8 times the land revenue and persisted that only rent at 6 times the land revenue could be demanded from him, but this contention was rejected on the merits by the Department we see no reason to interfere with the order of the department on this part of the case. The order is neither illegal nor without jurisdiction.

    16. No other contention has been advanced.

    17. For the reasons given above, these petitions fail and are dismissed with costs which are assessed at Rs. 50/- in each petition.

    18. I.D Dua, J.:— I agree.

    KH/AKJ/V.B.B

    19. Petitions dismissed.

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    Jagmohan Singh v. Union Of India Throu...
    (Aug 31, 1964)