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Kusheshwar Prasad Singh v. State Of Bihar And Others

Supreme Court Of India
Mar 19, 2007
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Factual and Procedural Background

The appellant–landholder filed a return under the Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961. On 7-1-1976 the Deputy Collector, Land Reforms (DCLR), Samastipur held that the appellant possessed no surplus land and ordered the proceedings dropped. No appeal was filed, but the administration failed to issue the “final statement” mandated by Section 11 of the Act.

After the Act was amended in April 1981 (inserting Sections 32-A and 32-B), an application by a third party (Hridya Narain Yadav) alleged concealment of land. Fresh proceedings were commenced in 1993 (Land Ceiling Case No. 65/1992-93). The Additional Collector found 71.40 acres of surplus land and ordered issuance of a final statement. The appellant’s appeal (Collector, 2-6-1997) and revision (Board of Revenue, 13-1-1998) were dismissed.

The appellant then filed Civil Writ Jurisdiction Case No. 3008/1998. A Single Judge of the Patna High Court dismissed the writ petition on 24-9-1998; a Division Bench dismissed Letters Patent Appeal No. 1177/1998 on 13-8-1989, affirming that fresh proceedings were valid under Section 32-B. The present appeal challenges those High Court orders.

Legal Issues Presented

  1. Whether the authorities could lawfully invoke Section 32-B (inserted in 1981) to reopen ceiling proceedings that had culminated in a final order dated 7-1-1976 but in which no final statement under Section 11 was issued.
  2. Whether the failure of the administration to issue the final statement within a reasonable time could prejudice the landholder or confer jurisdiction to restart the proceedings.
  3. Whether allegations of fraud or non-disclosure by the landholder warranted fresh action independent of Section 32-B.

Arguments of the Parties

Appellant's Arguments

  • The 7-1-1976 order attained finality; reopening it violates finality principles.
  • Authorities were statutorily bound to issue the Section 11 final statement; their failure cannot be used against the appellant.
  • Section 32-B, introduced in 1981, has no retrospective application to proceedings concluded in 1976.
  • The 1992-93 proceedings were initiated mala fide on the complaint of a political activist.

Respondents' Arguments

  • Because no final notification under Section 11(1) was ever issued, the 1976 proceedings never reached legal finality.
  • Section 32-B expressly authorises initiation of fresh proceedings in such circumstances; hence the 1992-93 action was lawful.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mrutunjay Pani v. Narmada Bala Sasmal, AIR 1961 SC 1353 A party cannot take advantage of its own wrong (commodum ex injuria sua nemo habere debet). Used to hold that the State cannot rely on its failure to issue the final statement to justify reopening the case.
Union of India v. Major General Madan Lal Yadav (1996) 4 SCC 127 A wrongdoer should not profit from his own wrong; presence required for limitation to run. Cited to reinforce that a party delaying statutory duties cannot gain by such delay.

Court's Reasoning and Analysis

The Court acknowledged that the 7-1-1976 order was final and unchallenged. It held that the authorities were legally obliged to issue the Section 11 final statement “immediately or in any case within reasonable time.” Their omission constituted a breach of statutory duty, and “such default… cannot prejudice” the landholder.

Section 32-B, inserted by Bihar Act 55 of 1982, could not be applied retrospectively to revive concluded proceedings. Allowing the State to invoke that section would let it “take undue advantage of their own default,” contravening the maxim against profiting from one’s own wrong.

However, allegations that the landholder concealed property during the original return suggested possible fraud. The High Court had disposed of the matter solely under Section 32-B without examining this allegation. The Supreme Court therefore considered it appropriate to remit the matter for fresh determination under the un-amended Act, with specific directions to investigate any non-disclosure of land.

Holding and Implications

PARTLY ALLOWED; MATTER REMITTED.

The Supreme Court set aside the High Court’s reliance on Section 32-B and remitted the case to the Division Bench to decide afresh under the law as it existed prior to the 1982 amendment, while also examining alleged non-disclosure of land by the appellant. The High Court is directed to decide within six months. No order as to costs.

Implications: The judgment clarifies that Section 32-B cannot retrospectively reopen concluded ceiling proceedings and underscores that governmental failure to perform statutory duties cannot prejudice affected individuals. It leaves open the possibility of action where fraud or concealment is proven, but sets no new precedent beyond reaffirming the maxim against benefiting from one’s own wrong.

Show all summary ...

C.K Thakker, J.— The present appeal is filed by the appellant against the judgment and order passed by the Division Bench of the High Court of Patna on 13-8-1989 by which it dismissed Letters Patent Appeal No. 1177 of 1998 and confirmed the order passed by a Single Judge on 24-9-1998 in Civil Writ Jurisdiction Case No. 3008 of 1998.

2. Brief facts of the case leading to the present appeal are that a return was filed by the landholder under the Bihar Land Reforms (Fixation of Ceiling Area and Acquisition of Surplus Land) Act, 1961 (hereinafter referred to as “the Act”). It was alleged that the landholder possessed excess land. A draft statement under Section 10 was issued by the Collector under the Act. The landholder objected to the proceedings and asserted that he did not possess land in excess of ceiling area. An enquiry was made and verification reports were submitted by the Circle Officers (Anchal Adhikaris). The Deputy Collector, Land Reforms (DCLR), Samastipur, vide his order dated 7-1-1976 upheld the objection of the landholder and recorded a finding that the landholder did not possess surplus land and the proceedings were required to be dropped. The case was accordingly disposed of. No appeal was filed against the said decision and it had become final. No “final statement”, as required under Section 11 of the Act, however, was issued or published by the authority.

3. The Act was amended in April 1981 (Bihar Act 55 of 1982) and after Section 32, Sections 32-A and 32-B came to be inserted. Whereas Section 32-A provided for abatement of appeal, revision, review and reference, Section 32-B permitted initiation of fresh proceedings in certain cases.

4. In the present case, as already noted earlier, no final statement under Section 11 was issued. It appears that one Hridya Narain Yadav, Secretary, Kisan Sabha, Darbhanga-cum-Member, Darbhanga District Committee, Bhartiya Communist Party (Marxist), Darbhanga moved an application in the Court of Additional Collector, Land Ceiling, Darbhanga along with an affidavit alleging therein that the landholder had more lands than prescribed under the Ceiling Act, but correct facts were not disclosed when the return was filed under the Act by the landholder in 1973-1974. Fresh proceedings were, therefore, initiated in the year 1993 in Land Ceiling Case No. 65 of 1992-1993 and statement of landholder was recorded. The Additional Collector, after considering the objection of the landholder and referring to details furnished by Circle Officers held that the landholder possessed 96.40 acres of land. He was entitled to only one unit. Thus, he could retain only 25 acres of Category III land and the remaining land of 71.40 acres was required to be declared surplus. An order was passed to that effect. A direction was also given to take appropriate steps for issuance of final statement under Section 11 of the Act.

5. The appellant preferred an appeal against the said order before the Collector under Section 30 of the Act. It was, inter alia, contended that the order dated 7-1-1976 declaring that the landholder did not possess excess land, had not been challenged and attained finality. The notification and final statement which was required to be issued under Section 11 of the Act had not been issued by the authorities. Non-issuance of final statement cannot adversely affect the landholder. It was also submitted that the ceiling case was of 1973-1974. It was over in 1976 and it cannot now be reopened. It was also urged that Section 32-B came to be inserted only in 1981, but before that final order was passed in 1976. No fresh proceedings thus could be initiated under the Amendment Act of 1982. It was, therefore, submitted that the order passed by the District Collector was liable to be set aside.

6. The Collector, however, by an order dated 2-6-1997 dismissed the appeal and confirmed the order passed by the Additional Collector, Darbhanga and observed that the landholder was in possession of excess land. The landholder approached the Board of Revenue by filing a revision petition under Section 32 of the Act which was also dismissed by the Member, Board of Revenue, Bihar vide his order dated 13-1-1998.

7. The aggrieved landholder then instituted a writ petition before the High Court of Patna. A counter-affidavit was filed on behalf of the respondent State in which a stand was taken that Land Ceiling Case No. 65 of 1992-1993 was in fact renumbered for the old case and proceedings were started afresh in exercise of power under Section 32-B of the Act and such a course was permissible in the light of the fact that after the order was passed on 7-1-1976, no final statement was issued under Section 11 of the Act. Initiation of fresh proceedings was, therefore, permissible and the order passed by the Additional Collector, Darbhanga and Collector, Darbhanga could not be said to be unlawful.

8. The learned Single Judge noted that though the order was passed in 1976, no final notification under Section 11(1) of the Act was issued prior to 9-4-1981 when the Act was amended and Sections 32-A and 32-B were added. In the circumstances, observed the learned Single Judge, initiation of fresh proceedings was permissible and the order passed in those proceedings could not be objected. The writ petition was, therefore, dismissed. The Division Bench in letters patent appeal confirmed the order of the learned Single Judge. The said order has been challenged in this Court.

9. On 4-2-2000, notice was issued by this Court and ad interim relief was granted. The matter was thereafter adjourned from time to time. On 11-12-2000, leave was granted. The matter has now been placed before us for final hearing.

10. The learned counsel for the appellant contended that the proceedings had been concluded and final order was passed under the Act as early as on 7-1-1976 and that order had become final. Nobody had challenged it. Legality of that order could not be subsequently considered by initiating fresh proceedings. It was incumbent on the authority to take consequential action of issuance of final statement under sub-section (1) of Section 11 of the Act immediately after the order was passed, but it was not done. There was thus failure to discharge statutory duty by the authorities which cannot adversely or prejudicially affect the interest of the landholder. It was also submitted that there was no question of application of Section 32-B of the Act which was added only in April 1981. Fresh proceedings initiated in 1992-1993, therefore, were without jurisdiction and all actions taken in those proceedings are liable to be set aside. It was further submitted that it was due to mala fide act by Hridya Narain Yadav that proceedings were started in 1992-1993. According to the learned counsel, neither the authorities nor the High Court considered the provisions of law and the orders are contrary to law.

11. The learned counsel for the respondent authorities supported the orders and submitted that they were right in holding that since no final notification under Section 11(1) was issued, the proceedings could not be said to have been concluded and in view of amendment in 1981, action could be taken under Section 32-B of the Act and the appellant had no right to make grievance against it.

12. Having considered the rival submissions of the learned counsel for the parties, in our opinion, the appeal deserves to be partly allowed. So far as the contention of the appellant that the proceedings had been initiated in 1973-1974 and final order was passed on 7-1-1976 is not disputed and cannot be disputed. If it is so, submission of the appellant is well founded that final statement as required by sub-section (1) of Section 11 ought to have been issued and effect ought to have been given to the final order. Admittedly, no appeal was filed. Nor the order was challenged by any party. The appellant is right in contending that final statement ought to have been issued immediately or in any case within “reasonable time”. The authority cannot neglect to do that which the law mandates and requires doing. By not issuing consequential final statement under Section 11(1) of the Act, the authority had failed to discharge its statutory duty. Obviously, therefore, the appellant is justified in urging that such default in discharge of statutory duty by the respondents under the Act cannot prejudice him. To that extent, therefore, the grievance of the appellant is well founded.

13. The appellant is also right in contending before this Court that the power under Section 32-B of the Act to initiate fresh proceedings could not have been exercised. Admittedly, Section 32-B came on the statute book by Bihar Act 55 of 1982. The case of the appellant was over much prior to the amendment of the Act and insertion of Section 32-B. The appellant, therefore, is right in contending that the authorities cannot be allowed to take undue advantage of their own default in failure to act in accordance with law and initiate fresh proceedings.

14. In this connection, our attention has been invited by the learned counsel for the appellant to a decision of this Court in Mrutunjay Pani v. Narmada Bala Sasmal AIR 1961 SC 1353 wherein it was held by this Court that where an obligation is cast on a party and he commits a breach of such obligation, he cannot be permitted to take advantage of such situation. This is based on the Latin maxim commodum ex injuria sua nemo habere debet (no party can take undue advantage of his own wrong).

15. In Union of India v. Major General Madan Lal Yadav (1996) 4 SCC 127 the accused army personnel himself was responsible for delay as he escaped from detention. Then he raised an objection against initiation of proceedings on the ground that such proceedings ought to have been initiated within six months under the Army Act, 1950. Referring to the above maxim, this Court held that the accused could not take undue advantage of his own wrong. Considering the relevant provisions of the Act, the Court held that presence of the accused was an essential condition for the commencement of trial and when the accused did not make himself available, he could not be allowed to raise a contention that proceedings were time-barred. This Court referred to Broom's Legal Maxims (10th Edn.), p. 191 wherein it was stated:

“It is a maxim of law, recognised and established, that no man shall take advantage of his own wrong; and this maxim, which is based on elementary principles, is fully recognised in courts of law and of equity, and, indeed, admits of illustration from every branch of legal procedure.”

16. It is settled principle of law that a man cannot be permitted to take undue and unfair advantage of his own wrong to gain favourable interpretation of law. It is sound principle that he who prevents a thing from being done shall not avail himself of the non-performance he has occasioned. To put it differently, “a wrongdoer ought not to be permitted to make a profit out of his own wrong”.

17. In view of the findings recorded by us hereinabove, we would have allowed the appeal in its entirety and would have quashed the proceedings initiated in 1992-1993 by setting aside all orders passed in such proceedings. It, however, appears that an application was made by Hridya Narain Yadav, in which it was stated that the landholder had not disclosed full and correct facts in his return. Certain lands belonging to him and located in district of Darbhanga were not shown in the earlier proceedings. In other words, the allegation was that the landholder had played fraud upon the authorities and on the statute by not furnishing true and full facts as to the land possessed by him. If it is so, irrespective of statutory provisions, an appropriate action can be taken. Though the question was raised before the statutory authorities under the Act, the High Court (learned Single Judge as also the Division Bench) had decided the case only on the basis of Section 32-B of the Act which could not have been done. In view of our findings as to non-applicability of Section 32-B to the case on hand, we consider it appropriate to remit the matter to the Division Bench of the High Court to decide it afresh under the law as it stood prior to amendment by Bihar Act 55 of 1982. At the same time, however, the High Court will consider the case as to whether all requisite facts had been disclosed by the landholder when he filed return in 1973-1974 or there was non-disclosure of certain lands. The Division Bench of the High Court will finally decide the matter after affording opportunity to all the parties. Let such a decision be taken as expeditiously as possible, preferably within six months from the receipt of the order of this Court.

18. For the foregoing reasons, the appeal is partly allowed to the extent indicated hereinabove. The matter is remitted to the High Court to decide it afresh in accordance with law. In the facts and circumstances of the case, there shall be no order as to costs.