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AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 9(1) of the Punjab Security of Land Tenures Act, 1953
  • Section 14-A of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 14-A of the Punjab Security of Land Tenures Act, 1953
  • Section 10 of this Act
  • Section 9-A of the Act
  • Section 18 of the Punjab Security of Land Tenures Act, 1953
  • Section 18 of the Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 9(1) of the Punjab Security of Land Tenures Act, 1953
  • Section 14-A of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 14-A of the Punjab Security of Land Tenures Act, 1953
  • Section 10 of this Act
  • Section 9-A of the Act
  • Section 18 of the Punjab Security of Land Tenures Act, 1953
  • Section 18 of the Act
Smart Summary

Factual and Procedural Background

Bhajan Lal was the owner of 21 Bighas and 2 Biswas of agricultural land in village Sukhohan. Shadi cultivated the land as a statutory tenant. Alleging non-payment of rent for the period Kharif 1957 to Rabi 1960, Bhajan Lal initiated ejectment proceedings under Section 14-A of the Punjab Security of Land Tenures Act, 1953. The Assistant Collector dismissed the application and the Collector affirmed that dismissal, but the Financial Commissioner remanded the matter on 8 January 1962.

While the ejectment case was pending, Shadi himself applied on 20 February 1961 to purchase the same land under Section 18 of the Act. This application was initially rejected by the revenue authorities but was remanded by the Financial Commissioner on 5 October 1962 to determine whether Shadi had been in continuous occupation for six years.

On 30 April 1964 the Assistant Collector delivered two contradictory orders: (1) he declared Shadi entitled to purchase the land for Rs 8,409 payable in ten equal instalments, and (2) he simultaneously ordered Shadi’s eviction for default in payment of rent. Both orders were challenged before the Additional Commissioner, who set aside Shadi’s purchase order and maintained the eviction. In further revision, however, the Financial Commissioner restored Shadi’s right to purchase and annulled the eviction.

Bhajan Lal’s writ petition to the Punjab High Court was dismissed in limine. He then appealed to the Supreme Court of India by special leave.

Legal Issues Presented

  1. Whether a tenant who is facing ejectment proceedings for non-payment of rent can, during the pendency of those proceedings, validly invoke Section 18 of the Punjab Security of Land Tenures Act, 1953 to purchase the land.
  2. Whether a subsequent order of eviction, passed after the tenant has invoked Section 18, extinguishes or defeats the tenant’s statutory right to purchase.

Arguments of the Parties

Appellant — Bhajan Lal (Land-owner)

  • Invoked the opening non-obstante clause of Section 18 (“Notwithstanding anything to the contrary contained in any law, usage or contract”) to argue that once the landlord has established grounds for ejectment, the tenant cannot rely on Section 18 to purchase the land; otherwise a defaulting tenant could frustrate the landlord’s ejectment remedy.

Respondent — Shadi (Tenant)

The opinion does not contain a detailed account of the respondent’s legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Har Sarup v. Financial Commissioner, Revenue, Punjab (1965) 44 Lah LT 157 Tenancy subsists until an actual eviction order is passed; liability for ejectment does not, by itself, terminate the landlord-tenant relationship. The Supreme Court adopted these observations to hold that Shadi remained a tenant when he applied under Section 18, and therefore his right to purchase could not be defeated by a later eviction order.

Court's Reasoning and Analysis

The Court held that the mere institution of ejectment proceedings does not terminate the tenancy; termination occurs only when an ejectment order is actually passed under Section 14-A. Consequently, until such an order is made, the tenant retains all statutory rights incident to tenancy, including the right to purchase under Section 18.

The non-obstante clause in Section 18 was construed broadly: it does not restrict the tenant’s right because of pending ejectment proceedings. The Court observed that a tenant in default remains a tenant unless and until lawfully evicted. Accordingly, Shadi, who had filed his Section 18 application before the eviction order of 30 April 1964, possessed a vested statutory right to purchase the land.

Relying on Har Sarup, the Court emphasised that liability to eviction does not retrospectively extinguish tenancy rights. Therefore, the later eviction order could not invalidate Shadi’s earlier purchase claim.

The Court, however, directed a modification: Shadi’s right to purchase is subject to payment not only of the compensation fixed (Rs 8,409) but also of all rent arrears. The Assistant Collector must re-compute the total amount and allow payment in suitable instalments under Section 18(4)(a) of the Act.

Holding and Implications

Appeal Dismissed with Costs, subject to modification. Shadi is entitled to purchase the land upon paying the determined compensation together with outstanding rent; the Assistant Collector is to fix the final amount and instalment schedule.

Implications: The judgment reaffirms that a tenant’s statutory right to purchase agricultural land under Section 18 cannot be nullified merely because ejectment proceedings are pending or even because an eviction order is subsequently passed. It clarifies the temporal relationship between Section 14-A (ejectment) and Section 18 (purchase) and strengthens tenant protections without creating new precedent beyond applying existing principles.

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    Bhajan Lal v. State Of Punjab And Others

    J.C Shah, J.— Bhajan Lal was the owner of land measuring 21 Bighas, 2 Biswas and bearing Khasra Nos. 11/12, 18, 20 and 43 in village Sukhohan. Shadi was the tenant of the land for agricultural use. Alleging that Shadi had failed to pay the rent due by him for the period Kharif Season 1957 to Rabi Season 1960, Bhajan Lal applied under Section 14-A of the Punjab Security of Land Temires Act, 1953, to the Assistant Collector for an order in ejectment against Shadi. The application was dismissed by the Assistant Collector and that order was confirmed in appeal by the Collector. The Financial Commissioner set aside the order and remanded the case for a fresh decision by order, dated January 8, 1962.

    2. There was yet another proceeding regarding the same lands. On February 20, 1961, Shadi applied to the Assistant Collector to purchase the lands under Section 18 of the Punjab Security of Land Tenures Act, 1953. The Assistant Collector rejected the application. The Collector confirmed that order. By order, dated October 5, 1962, the Financial Commissioner remanded the case for determining whether Shadi was in occupation of the lands for six years before the date of the petition.

    3. The Assistant Collector held that Shadi could claim to purchase the lands under Section 18 of the Punjab Security of Land Tenures Act, 1953, on paying Rs 8409 in ten equal instalments to Bhajan Lal. The Assistant Collector held in the proceeding for ejectment started by Bhajan Lal holding that the tenant Shadi had without sufficient cause committed default in paying rent and ordered that he be evicted. The two orders were passed on April 30, 1964. Whereas in the proceeding started by Bhajan Lal he held that Shadi was liable to be evicted from the lands because he had without sufficient cause committed default in paying rent, in the proceeding filed by Shadi the Assistant Collector declared that Shadi was entitled to purchase the lands from Bhajan Lal. The two orders were challenged respectively by Shadi and Bhajan Lal in revision applications filed before the Additional Commissioner. The Additional Commissioner set aside the order in favour of Shadi and dismissed the application filed by Shadi. In a revision application, the Financial Commissioner set aside the order of ejectment against Shadi and restored the order of the Collector declaring him entitled to purchase the lands.

    4. Against the order whereby Shadi was declared entitled to purchase the lands, Bhajan Lal applied to the High Court of Punjab for an order setting aside the order of the Financial Commissioner. The High Court dismissed the petition in limine. Bhajan Lal has appealed to this Court with special leave.

    5. Section 9(1) of the Punjab Security of Land Tenures Act, 1953, provides:

    “Notwithstanding anything contained in any other law for the time being in force, no land-owner shall be competent to eject a tenant except when such tenant—
    (i) is a tenant on the area reserved under this Act or is a tenant of a small land-owner; or
    (ii) fails to pay rent regularly without sufficient cause; or
    (iii) is in arrears of rent at the commencement of this Act; or
    (iv) has failed, or fails, without sufficient cause, to cultivate the land comprised in his tenancy in the manner or to the extent customary in the locality in which the land is situate; or
    (v) has used, or uses the land comprised in his tenancy in a manner which has rendered, or renders it unfit for the purpose for which he holds it; or
    (vi) has sublet the tenancy or part thereof; provided that where only a part of the tenancy has been sublet, the tenant shall be liable to be ejected only from such part; or
    (vii) refuses to execute a Qabuliyat or a Patta; in the form prescribed, in respect of his tenancy on being called upon to do so by an Assistant Collector on an application made to him for this purpose by the land-owner.
    Explanation.—For the purpose of clause (iii), a tenant shall be deemed to be in arrears of rent at the commencement of this Act, only if the payment of arrears is not made by the tenant within a period of two months from the date of notice of the execution of decree or order, directing him to pay such arrears of rent.
    Section 14-A of the Act insofar as it is relevant provides:
    “Notwithstanding anything to the contrary contained in any other law for the time being in force and subject to the provisions of Section 9-A,—
    (i) a land-owner desiring to eject a tenant under this Act shall apply in writing to the Assistant Collector, First Grade, having jurisdiction, who shall thereafter proceed as provided for in sub-section (2) of Section 10 of this Act, and the provisions of sub-section (3) of the said section shall also apply in relation to such application,
    * * *
    (ii) a landowner desiring to recover arrears of rent from a tenant shall apply in writing to the Assistant Collector, Second Grade, having jurisdiction, who shall thereupon send a notice, in the form prescribed, to the tenant either to deposit the rent or value thereof, if payable in kind, or give proof of having paid it or of the fact that he is not liable to pay the whole or part of the rent, or of the fact of the landlord's refusal to receive the same or to give a receipt, within the period specified in the notice….”

    Section 18 of the Act, in so far as it is relevant, provides:

    “(1) Notwithstanding anything to the contrary contained in any law, usage or contract, a tenant of a land-owner other than a small landowner—
    (i) who has been in continuous occupation of the land comprised in his tenancy for a minimum period of six years, or
    (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 amounts to six years or more, or
    (iii) shall be entitled to purchase from the land-owner the land so held by him but not included in the reserved area of the land-owner, 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:
    * * *”
    By virtue of Section 14-A the land-owner may obtain possession of the land on the ground of non-payment of rent by a proceeding filed before the Assistant Collector, during the subsistence of the tenancy. If the tenant has remained in continuous occupation of the land for a minimum period of six years he is entitled to purchase the land under Section 18 of the Act.

    6. It was urged that since Section 18 commences with a non-obstante clause viz. “Notwithstanding anything to the contrary contained in any law, usage or contract”, if a proceeding in ejectment is lodged against the tenant which ulitmately is allowed, the tenant cannot make a claim during the pendency of the proceeding to purchase the land. To hold otherwise, it was urged, would enable a tenant in default to defeat the claim in a suit in ejectment by commencing a proceeding for purchasing the land. We do not think that the expression “Notwithstanding anything to the contrary contained in any law, usage or contract” whittles down the right of the tenant at the date when he makes a claim to purchase the land merely because the tenancy is liable to be terminated in a proceeding then pending for an order in ejectment under Section 14-A, at the instance of the land-owner. Under the Act, the tenancy does not stand terminated merely because a proceeding in ejectment is instituted. The tenancy is determined only in the conditions prescribed by Section 9 and in the manner provided by Section 14-A. If a tenant is in default in payment of rent the land-owner desiring to recover rent due by the tenant may apply in writing to the Assistant Collector who shall thereupon send a notice to the tenant to deposit the rent due or give proof of having paid it. If the tenant fails to pay the rent or give proof of payment, the Assistant Collector shall, after a summary inquiry, if he is of the view that the tenant has not paid or deposited the rent, eject the tenant summarily and put the land-owner in possession of the land concerned. But so long as the Assistant Collector has not passed the order ejecting the tenant the right of the tenant is not extinguished: he continues to remain a tenant and being a tenant he is entitled to exercise his right to purchase the land.

    7. Shadi was a tenant prior to the date of the institution by Bhajan Lal of the proceeding in ejectment and he continued to remain a tenant till an order was passed by the Assistant Collector on April 30, 1964. But before that date Shadi had exercised his right to purchase the land and that right to purchase the land would not be defeated merely because on a date subsequent thereto an order in ejectment was passed against him. Shadi had, therefore, at the date when he initiated proceeding under Section 18 right to purchase the lands. By the subsequent order in ejectment made against him the statutory right of Shadi was not prejudicially affected.

    8. We agree with the observations of Mahajan, J., in Har Sarup v. Financial Commissioner, Revenue, Punjab (1965) 44 Lah LT 157 at p. 159:

    “But, at the time when Section 18 application was filed, no order for eviction had been passed. Therefore, at that time, the relationship of landlord and tenant did exist. Mr Daulta has not been able to point to me any provision of law which would make the eviction decree operative from the date of the eviction application. The mere fact that the tenants had incurred the liability for eviction by reason of non-payment of rent would not put an end to the admitted relationship of landlord and tenant between the parties. This liability only puts an end to the aforesaid relationship when the eviction decree is passed. The eviction decree was passed long after the Section 18 application. Therefore, the present petition is liable to succeed only to have extent of Section 18 application, that is, the tenants would be entitled to purchase the land….”

    9. But a slight modification needs to be made in the order. A proceeding for recovery of rent was commenced against Shadi. It is not clear whether the amount of compensation determined by the Assistant Collector as payable by Shadi for purchasing the land includes the rent in arrears. We declare that Shadi will be entitled to purchase the land on payment of the amount of compensation together with the amount of rent due by him. The Assistant Collector will pass appropriate order in that behalf and direct that payment be made in appropriate instalments under Section 18(4)(a).

    10. Subject to that modification, the appeal fails and is dismissed with costs.

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    Comments

    Bhajan Lal v. State Of Punjab And Others
    (Sep 28, 1970)