AMICUS AI
Citation Codes
Neutral Citations
2000 INSC 406
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • The Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973
  • Andhra Pradesh Land Reforms (Ceiling and Agricultural Holdings) Act, 1973 (Act 1 of 1973)
  • Sub-sections (1), (2), (3) and (4) of this Act
  • Section 16 of the Act
  • the Act or Rules
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not mentioned)
  • the Act, Section not specified, Year not specified
  • Section 8 of the Act
  • Section 15 of the Act
  • Section 11 of the Act
  • Section 11 of this Act
  • Section 3 of the Act
  • Rule 10, Rule 10-A, Rule 11 of the Act
  • This Act
  • Section 2 of the Constitution of India
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Cites
Cited by
Citation Codes
Neutral Citations
2000 INSC 406
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • The Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973
  • Andhra Pradesh Land Reforms (Ceiling and Agricultural Holdings) Act, 1973 (Act 1 of 1973)
  • Sub-sections (1), (2), (3) and (4) of this Act
  • Section 16 of the Act
  • the Act or Rules
  • Section 5, Subsection 2 of the 1983 Income Tax Act (not mentioned)
  • the Act, Section not specified, Year not specified
  • Section 8 of the Act
  • Section 15 of the Act
  • Section 11 of the Act
  • Section 11 of this Act
  • Section 3 of the Act
  • Rule 10, Rule 10-A, Rule 11 of the Act
  • This Act
  • Section 2 of the Constitution of India
Smart Summary

Factual and Procedural Background

These consolidated appeals arise out of proceedings under the Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973 (“the Act”). Certain landholders, including D. Ramakrishna Reddy and others, were declared to possess surplus agricultural land that included forest areas. They filed writ petitions in the High Court of Andhra Pradesh challenging the State’s takeover of those lands and asserted a right to cut and remove standing trees before surrendering possession.

The learned Single Judge partly allowed the writ petitions: he held that surplus land vests in the State on service of Form IX notice and that, for two categories of petitioners, such vesting had already occurred, divesting them of rights over the trees; for a third category, he directed the Forest Department to issue transit permits because vesting had not yet taken place. Separate writ appeals followed:

  • Writ Appeal No. 731 of 1982 filed by the Forest Department; and
  • Writ Appeals Nos. 676 and 790 of 1982 filed by the landholders.

The Division Bench, in W.A. 731/1982, held that forest produce had not vested in the Government and ordered compensation to the landholders. In W.A. 676 and 790/1982 it dismissed the landholders’ appeals following an earlier Division Bench decision (W.A. 355–56/1982). Both sides secured certificates of fitness, resulting in the present Supreme Court appeals.

Legal Issues Presented

  1. When does surplus land surrendered or deemed surrendered under the Act vest in the State?
  2. Does forest produce (standing trees and other growth) on such surplus land vest along with the land, and if so, is separate compensation payable?
  3. Are landholders entitled to transit permits to fell and remove trees from land that is, or is about to be, surrendered?

Arguments of the Parties

Landholders (Respondents / Appellants in C.A. 9617-18/1995)

  • The forest land, although part of the declared surplus, had not yet vested in the State; therefore, ownership of the trees remained with them.
  • They had applied long ago for transit permits, but departmental inaction prevented them from exercising their rights.
  • Consequently, they sought a writ of mandamus directing issuance of permits and/or compensation for forest growth.

State of Andhra Pradesh & Forest Department (Appellants in C.A. 3012/1987)

  • All surplus land, including the forest portion and its produce, had already vested in the Government upon issuance and service of Form IX notice.
  • Once vesting occurred, the landholders lost any right to cut or remove trees, and no compensation was payable for such forest produce under the Act or Rules.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Writ Appeals Nos. 355-56 of 1982, High Court of A.P. (16-4-1982) Interpretation of vesting under the A.P. Land Reforms Act; whether forest growth vests with land. The Single Judge relied on it to hold that trees vest with land; the Division Bench in W.A. 676 & 790/1982 followed it to dismiss landholders’ appeals; the Supreme Court examined but ultimately overruled the Division Bench’s contrary conclusion on compensation.

Court's Reasoning and Analysis

The Supreme Court undertook a detailed textual analysis of Sections 10 and 11 of the Act and Rules 7 and 8 of the A.P. Land Reforms (Ceiling on Agricultural Holdings) Rules, 1974:

  • Section 11 stipulates that land vests in the Government “free from all encumbrances” upon the Revenue Divisional Officer issuing an order in Form IX and serving it on the landholder. Physical possession may follow later, but vesting is triggered by the order itself.
  • Rule 8 prescribes service of Form IX and subsequent steps for actual takeover. The word “thereupon” in Section 11 ties vesting to the issuance of that order, not to the act of entering upon the land.
  • No provision in the Act or the Rules authorises compensation for trees or other forest produce (other than fruit-bearing trees covered by Rule 11). Sections 15-16 deal only with land value, and Rule 11 limits compensation to fruit-bearing trees and permanent structures.
  • Because the statute is exhaustive, tribunals and courts cannot create a right to compensation for forest growth absent express legislative sanction.
  • Even before vesting, felling or removal of forest produce required a discretionary transit permit under the relevant forest laws; the writ proceedings concerning surplus land could not compel issuance of such permits.

Holding and Implications

Holding: Civil Appeal No. 3012 of 1987 filed by the Forest Department is allowed; the Division Bench’s judgment awarding compensation for forest growth is set aside. Civil Appeals Nos. 9617-18 of 1995 filed by the landholders are dismissed. No order as to costs.

Implications: The landholders are not entitled to compensation for standing trees or other forest produce on surplus land that has vested in the Government, nor can they compel issuance of transit permits through these proceedings. The decision clarifies that vesting occurs upon service of Form IX and that the Act does not envisage separate compensation for non-fruit-bearing forest growth, thereby reaffirming the State’s absolute title to both land and attached forest produce once statutory vesting takes place.

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    D. Ramakrishna Reddy And Others v. Addl. Revenue Divisional Officers And Others

    D.P Mohapatra, J.— These three appeals filed on the basis of the certificate of fitness granted by the High Court of Andhra Pradesh involve common questions of facts and law. Therefore, they were heard together and they are being disposed of by this judgment. Civil Appeal No. 3012 of 1987 filed by the Conservator of Forests, Nizamabad Division and the Divisional Forest Officer, Kama Reddy, is directed against the judgment of the Division Bench of the High Court of Andhra Pradesh in Writ Appeal No. 731 of 1982, whereas Civil Appeals Nos. 9617-18 of 1995 filed by D. Ramakrishna Reddy and four others are directed against the judgment of the Division Bench of the High Court in Writ Appeals Nos. 790 and 676 of 1982. All the writ appeals were filed against the judgment dated 22-4-1982 passed by the learned Single Judge disposing of Writ Petitions Nos. 5793 of 1979 and 637 of 1982. Both these writ petitions were filed by D. Ramakrishna Reddy and others assailing the taking over possession of surplus lands from them under the provisions of the Andhra Pradesh Land Reforms (Ceiling and Agricultural Holdings) Act, 1973 (Act 1 of 1973). The specific controversy raised in the cases related to the right of the petitioners to cut and remove trees from the forest area which was a part of the surplus land. The case of the petitioners, as appears from the discussions in the judgment of the learned Single Judge, was that the forest land, though a part of the surplus land in their hands had not vested in the State Government, and therefore, they were entitled to cut and remove the trees standing on the said land before handing over possession of the land to the State Government. The writ petitioners also pleaded that long before the land was declared surplus with them, they had moved the competent authority of the Forest Department for grant of transit permits to them for cutting and removing the standing trees. The authorities sat over the matter and did not issue the requisite transit permit. Therefore, the writ petitioners sought a writ of mandamus directing the authorities concerned to issue necessary transit permit.

    2. The State Government, particularly the officers concerned of the Forest Department, contested the case mainly on the grounds that the entire surplus land in the hands of the writ petitioners had vested in the State Government along with the forest growth on a portion of the same. The lands including the trees and other forest produce were the property of the State Government and the writ petitioners had no right to cut and remove the trees on any portion of the surplus land which had vested in the State Government.

    3. The learned Single Judge, considering the case of the parties, formulated the following questions for determination:

    1. When does the land surrendered by the landholder vest in the State?
    2. Whether the forest produce standing on the land surrendered also vests in the State along with the land?
    3. Whether the petitioners are entitled to any relief on the ground that they had been approaching for the last several years for permits to cut and remove the forest produce on the said land, but were prevented from doing so on account of inaction on the part of or wrong orders passed by the officers of the Forest Department?

    4. The learned Single Judge divided the writ petitioners into three categories; in the first category were included petitioners D. Narasimha Reddy and D. Venkata Reddy, the second category related to D. Ramakrishna Reddy and the third category related to petitioners G. Laxma Reddy and G. Bhoopal Reddy. The appellants herein who were included in the first category surrendered the surplus land in their possession on 1-3-1979. Regarding the second category, the learned Single Judge observed that the petitioner had neither surrendered the surplus land nor had possession been taken by following the procedure prescribed under the Act and the Rules, though notice in Form IX was served on the petitioner on 12-11-1979. Similarly, in respect of the third category of petitioners, the observation was that neither notice under Form IX had been issued nor served on the party. The learned Single Judge held that vesting of the surplus land takes place on the date Form IX notice is issued and served upon the person concerned. In support of the finding, he placed reliance on the language of Section 11 of the Act and the contents of Form IX. The learned Single Judge further held that the surplus land vests in the Government free from all encumbrances from the date of the order to take possession which is stated in Form IX notice. On the basis of the above findings, the learned Single Judge held that in the case of Categories 1 and 2, i.e, Writ Petitioners 1, 2 and 5, the surplus land had vested in the State in the year 1979 itself, the forest growth on the said land too vested in the State along with the land and no separate compensation or amount is payable on account of such forest growth. In this regard, the learned Single Judge placed reliance on a decision of a Division Bench of the High Court in Writ Appeals Nos. 355-56 of 1982 dated 16-4-1982.

    5. Dealing with the case of Writ Petitioners 3 and 4 who were included in the third category, the learned Single Judge took the view that the lands proposed to be surrendered by them have not yet vested in the State; in such a situation there can be no valid objection by the authorities of the Forest Department for issuing transit permits. The learned Single Judge directed the Forest Authorities to issue transit permits in favour of Writ Petitioners 3 and 4 G. Bhoopal Reddy and G. Laxma Reddy (since deceased, represented by Bhoopal Reddy) in respect of the forest growth on the land, which they had offered to surrender as surplus land to the State Government. Specifying the area of the said land, the learned Judge observed the extent of land to be 46 acres 95 cents in Survey No. 836 of Hussain Nagar Village. Clarifying the fact-situation further, the learned Single Judge observed that the total area of 160 acres 88 cents comprising of 53 acres 50 cents of the first petitioner, 53 acres 50 cents of the second petitioner and 53 acres 80 cents of the fifth petitioner which had been surrendered had vested in the State; transit permits for the forest produce in the remaining area was ordered to be issued according to the Rules within one month of the date of receipt of the order. The learned Single Judge further ordered that if there are any fruit-bearing trees on the land which were surrendered by Petitioners 1, 2 and 5 and which vested in the State, the said petitioners shall be entitled to compensation as per Rule 11 of the Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Rules, 1974.

    6. Being aggrieved by the judgment of the learned Single Judge, the Conservator of Forests, Nizamabad and the Divisional Forest Officer, Kama Reddy Division filed Writ Appeal No. 731 of 1982 which was disposed of by the judgment rendered on 27-7-1987, the operative portion of which reads as follows:

    “The forest produce, we affirm, did not vest in the Government on the facts of the case as held in the order under appeal. The landholders are entitled to compensation. We direct the Government to determine and pay the compensation for the forest growth in four months from today.”

    7. The said judgment is under challenge in Civil Appeal No. 3012 of 1987.

    8. In the other cases, Civil Appeals Nos. 9617-18 of 1995 directed against the judgment of the High Court dated 10-7-1987 in Writ Appeals Nos. 676 and 790 of 1982 which were filed by the writ petitioners against the judgment passed by the learned Single Judge in Writ Petitions Nos. 5793 of 1979 and 637 of 1982, the Division Bench disposed of the writ appeals by the order which reads as follows:

    “Following the decision in WAs Nos. 355-56 of 1982 dated April 16, 1982 the writ appeals are dismissed. The cases do involve a substantial question of law to be decided by the Supreme Court, oral leave is granted. Status quo as of today to be continued for two months from today.”

    9. That is how these appeals have been filed in this Court.

    10. The Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973 (Act 1 of 1973), as stated in the Preamble, is an Act to consolidate and amend the law relating to the fixation of the ceiling on agricultural holdings and taking over of surplus lands and to provide for the materials connected therewith. Section 2 of the Act contains a declaration that the Act is for giving effect to the policy of the State towards securing the principles specified in clauses (b) and (c) of Article 39 of the Constitution of India. Section 3 which contains the definitions of certain terms used in the Act provides in clause (c), that “ceiling area” means the extent of lands specified in Section 4 or Section 4-A to be ceiling area; under clause (j) “land” means land which is used or is capable of being used for purposes of agriculture, or for purposes ancillary thereto, including horticulture, forest land, pasture land, plantation and tope and includes land deemed to be agricultural land under the Act. (emphasis supplied) Explanations 1 and 2 to the said sub-section are not very material for the purpose of the present case.

    11. Section 4 contains the provisions regarding ceiling area in respect of an “individual” and a “family”. Section 8 of the Act in which provision is made for “declaration of holding” by a person reads as follows:

    “8. (1) Every person, whose holding on the notified date together with any land transferred by him on or after 24-1-1971, whether by way of sale, gift, usufructuary mortgage, exchange, settlement, surrender or in any other manner whatsoever, and any land in respect of which a trust has been created by him on or after 24-1-1971, exceeds the specified limits, shall, within thirty days from the notified date or within such extended period as the Government may notify in this behalf, furnish a declaration in respect of his holding together with such land, to the Tribunal within whose jurisdiction the whole or a major part of his holding is situate containing such particulars including those relating to lands held by him in any part of India outside the State, and in such form as may be prescribed.
    (2) Without prejudice to the provisions of sub-section (1), the Tribunal shall have power to issue notice requiring any person holding land or residing within its jurisdiction who, it has reason to believe, holds or is deemed to hold land in excess of the ceiling area to furnish a declaration of his holding, or that of his family unit, under sub-section (1) within such period as may be specified in the notice not being less than fifteen days from the date of its communication, and such person shall furnish the declaration accordingly.
    (3) If any person who is liable to furnish a declaration under sub-section (1) or sub-section (2) fails to furnish the declaration within the specified time, the Tribunal may obtain the necessary information in such manner as may be prescribed.”

    12. Section 9 in which provision is made for determination of ceiling area lays down:

    “9. The Tribunal shall on receipt of the declaration furnished or information obtained under Section 8, publish the same, and make an inquiry, in such manner as may be prescribed, and pass orders determining whether the person holds or is deemed to hold on the notified date an extent of land in excess of the ceiling area and if so, the extent of land so held in excess as on that date.”

    13. Section 10 contains the provisions regarding surrender of surplus land. Sub-sections (1), (2), (3) and (4) which are particularly relevant for the purpose of the present case are quoted hereunder:

    “10. (1) If the extent of the holding of a person is in excess of the ceiling area, the person shall be liable to surrender the land held in excess.
    (2) The Tribunal shall serve on every person, who is liable to surrender the land held in excess of the ceiling area under sub-section (1), a notice specifying therein the extent of land which such person has to surrender and requiring him to file a statement within such period not being less than fifteen days, as it may fix, indicating therein, full particulars of the lands which such person proposes to surrender.
    (3) If the person on whom a notice is served under sub-section (2), files the statement referred to in that sub-section within the period fixed therefor and the Tribunal is satisfied, after making such inquiry as it deems fit that the proposed surrender of the land is in accordance with the provisions of this Act, it shall pass an order approving the surrender and the said land shall thereupon be deemed to have been surrendered by such person.
    (4) If the person on whom a notice is served under sub-section (2) does not file the statement referred to in that sub-section within the period fixed therefor or files such statement within the period fixed but does not specify therein the entire extent of land which such person has to surrender, the Tribunal may, after giving an opportunity to the person concerned of being heard, itself select, in the former case the entire extent, and in the latter case, the balance of the extent which such person has to surrender, and pass an order to that effect, and thereupon the said land or balance of land, as the case may be, shall be, deemed to have been surrendered by such person.”
    (emphasis supplied)

    14. This brings us to the provision regarding vesting of land surrendered. Section 11 which deals with the matter is quoted hereunder:

    “11. Vesting of land surrendered.—Where any land is surrendered or is deemed to have been surrendered under this Act by an owner the Revenue Divisional Officer may, subject to such rules as may be prescribed, by order take possession or authorise any officer to take possession of such land which shall thereupon vest in the Government free from all encumbrances from the date of such order:
    Provided that any claim or liability enforceable against that land immediately before the date of vesting in the Government may be enforced only—
    (i) against the amount payable under this Act in respect of such land; and
    (ii) against any other property of the owner;
    to the same extent to which such claim or liability was enforceable against that land or other property, as the case may be, immediately before the date of vesting.
    Explanation.—Nothing in this section shall affect the provisions of any law, custom, usage or agreement relating to right of easements available for any land vesting in the Government under this section over any other land.”

    15. In Section 20 are contained the provisions regarding appeal and constitution of the Appellate Tribunal etc.

    16. Coming to the provisions of the Rules, in Rule 7 the procedure for surrender of land by a person whose holding is in excess of the ceiling area is laid down. From the provision in the said Rule it is clear that it is the Tribunal which has to identify the excess land to be surrendered to the State. Discretion is vested in the Tribunal to accept or not to accept the statement filed by the holder of surplus land regarding the land to be surrendered. Power is also vested in the Tribunal to itself select the land to be surrendered.

    17. Rule 8 sets out the procedure for taking over possession of the land surrendered. In sub-rule (1) of the said Rule, it is laid down that the Revenue Divisional Officer may on receipt of a copy of the order passed by the Tribunal under sub-rule (6) of Rule 7 in respect of any land surrendered or deemed to have been surrendered by an owner issue an order in Form IX authorising any officer not lower in rank than a Revenue Inspector to take possession or occupation of such land. Under sub-rule (2), a copy of the order is to be served on the person who has surrendered or is deemed to have surrendered the land and on any other person in possession or occupation of such land. In sub-rule (4), provision is made that where the person concerned fails to voluntarily deliver possession of the land, the officer authorised to take possession of the land may enter upon the land to take possession thereof after removing any obstruction or any unauthorised occupant on such land, if necessary, by using such force as he thinks fit and record a certificate in Form X duly attested by two witnesses. Under the proviso, an exception is made in the case where there is a seasonal crop on the land as on the date of taking possession, and in that case, it shall be allowed to be harvested by the person in actual possession or occupation of the land on that date, at his own risk and no compensation from the Government for any loss or damage shall be allowed under any circumstances. In sub-rule (7) of Rule 8, it is provided that all lands vested in the Government shall be registered in the revenue accounts of the village as assessed government wastelands until their allotment or transfer, as the case may be, in accordance with the provisions of the Act, or until their registry is duly altered in accordance with the Rules in force relating to government lands.

    18. Rule 10 deals with disposal of lands vested in the Government.

    19. In Rule 10-A, provision is made for retransfer of land, vested in the Government in certain cases.

    20. Rule 11 which makes provision regarding fixation of value for fruit-bearing trees and structures etc. reads as follows:

    “11. (1) The amount payable for fruit-bearing trees shall be at the seigniorage rates notified by the District Forest Officer as applicable to the district from time to time and for this purpose the Tribunal may require the District Forest Officer in whose jurisdiction the land is situated to furnish an estimate of the amount payable for such trees.
    (2) The amount payable for the structures of permanent nature shall be equivalent to the depreciated value of the structure as on the specified date and for this purpose the Tribunal may require the Executive Engineer, Roads and Buildings Division, in the district to furnish an estimate of the depreciated value of such structure.”

    21. From the conspectus of the relevant provisions in the Act and the Rules noted in the preceding paragraph it is clear that the surplus land which is surrendered or deemed to have been surrendered shall vest in the State on communication of the order passed by the Revenue Divisional Officer to take over possession of such land to the owner/holder/occupier of the said land. The word “thereupon” in Section 11 refers to such order of the Revenue Divisional Officer. The order in Form IX and the manner in which the said order will be served on the owner are prescribed in sub-rules (1) and (2) of Rule 8. The provisions incorporated in sub-rules (3) to (7) of the said Rule are steps to be taken after the surplus land has vested in the State. Vesting of the surplus land in the State is not dependent on taking over physical possession of the land which may be immediately after the vesting or sometime subsequent thereto. It is our considered view that this conclusion emanates from a harmonious construction of the provisions in Section 11 and Rule 8 and it is in accord with the object and purpose of the Act.

    22. Regarding payment of compensation for the standing trees or any other forest produce on the land vested in the State Government, our attention has not been drawn to any provision in the Act or in the Rules for payment of such sum. Section 15 of the Act makes provision regarding the amount payable for any land vested in the Government under the Act which is to be calculated at the rates specified in the Second Schedule. Section 16 makes provision regarding claims of amount payable which is to be determined by the Tribunal. In Rule 11 is incorporated the provision for fixation of value for fruit-bearing trees and structures. There being no provision in the Act or Rules for payment of any sum for the trees (other than fruit-bearing trees) or any other forest produce on the vested land, no claim for compensation for the trees or other forest produce standing on the surplus land surrendered or deemed to have been surrendered arises under the provisions of the Act or the Rule. The tribunals are creatures of the Act and it is not open to them to travel beyond the provisions of the statute. The High Court while examining the correctness or otherwise of the order passed by the tribunal or any action taken by an officer under the Act is also to be guided by the provisions of the statute.

    23. The question that remains to be considered is regarding grant of permit to the respondents for removal of the forest produce. In this regard, it is sufficient to state that even before vesting of the property in the State Government the holders of the land had no right of felling and removing the standing trees or other forest produce from the forest area. They could do so only on getting a permit from the competent officer of the Forest Department of the State Government authorising them to fell and remove the trees or other forest produce. Grant of such permit was at the discretion of the competent officer and the power was to be exercised in accordance with the provisions of the statute applicable in the matter and the Rules framed in that regard. Therefore, no direction could be justifiably issued in the present proceedings which is relating to vesting of surplus land under the Act, for felling and/or removal of any forest produce from forest area.

    24. The resultant position from the discussions in the foregoing paragraphs is that the judgment of the Division Bench confirming the judgment of the learned Single Judge of the High Court, that forest produce did not vest in the Government and that the landholders are entitled to compensation is unsustainable. Consequentially the direction to the State Government to determine and pay the compensation for the forest growth is also unsustainable. Accordingly, Civil Appeal No. 3012 of 1987 is allowed and the judgment under challenge is set aside. Civil Appeals Nos. 9617-18 of 1995 are dismissed. In the circumstances, however, there will be no order for costs.

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    D. Ramakrishna Reddy And Others v. Addl. Revenue Divisional Officers And Others
    (Aug 18, 2000)