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AMICUS AI
Citation Codes
Neutral Citations
2010 INSC 511
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • British Statutes (Application to India) Repeal Act, 1960
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 1(2) of the [Year] Cantonment Act
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Cites
Cited by
Citation Codes
Neutral Citations
2010 INSC 511
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • British Statutes (Application to India) Repeal Act, 1960
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 1(2) of the [Year] Cantonment Act
Smart Summary

Factual and Procedural Background

The respondent, Smt. Kamla Verma, purchased premises situated at 14, Kasturba Marg (Old No. 15, Tomb Road), Lucknow Cantonment. The property had earlier been leased to the present appellants (Union of India/Defence authorities) under an agreement dated 26-7-1948.

Contending that the bungalow had become dilapidated and was no longer being used by the Defence authorities, the respondent filed Writ Petition No. 1661 (M/B) of 1998 before the Allahabad High Court, Lucknow Bench. She invoked paragraph 19(c) of the Central Government’s “Policy and Procedure for Dehiring of Houses” dated 19-11-1979 (as amended on 19-3-1985) and sought an order directing the Government to “de-hire” the premises.

On 19-1-2007, the High Court allowed the petition, directed the Government to permit the respondent to carry out repairs, and ordered immediate de-hiring. The Union of India and allied authorities—original respondents before the High Court—filed the present civil appeal before the Supreme Court.

Legal Issues Presented

  1. Whether the land underlying the respondent’s premises is held on “old grant” (cantonment tenure) terms, thereby vesting ownership in the Government with only limited occupancy rights in the respondent.
  2. Whether, in view of such tenure, the respondent could compel the Government to de-hire the premises under the cited de-hiring policy.
  3. Whether the High Court erred by ignoring documentary evidence—particularly the 1948 lease deed, the 1996 sale deed, and findings in Small Cause Case No. 2 of 2000—showing Government ownership and resumption rights.

Arguments of the Parties

Appellants’ Arguments (Union of India & Defence Authorities)

  • The High Court overlooked material documents annexed with the counter-affidavit, including the 26-7-1948 lease deed expressly describing the tenure as “cantonment tenure/old grant”.
  • Under “old grant” terms, the Government retains absolute ownership of the land and an unqualified right of resumption with only one month’s notice; the occupant owns, at most, the superstructure.
  • A civil suit (Small Cause Case No. 2 of 2000) filed by the respondent for eviction had already been dismissed on 12-12-2006, with clear findings that the land and trees belong to the Government of India under General Order No. 179 of 1836; those findings were unchallenged and are final.
  • Because the respondent holds merely occupancy rights, she cannot insist on de-hiring, and the Government cannot be compelled to surrender possession of its own land.

Respondent’s Arguments (Smt. Kamla Verma)

  • She purchased the property—including land and superstructure—from Shri Mohan Krishan Seth and therefore holds ownership.
  • A Defence Estate Officer’s letter dated 29-11-1996 recommended de-hiring because the premises were dilapidated and unused, implicitly acknowledging her ownership.
  • The High Court correctly applied the Central Government’s de-hiring policy and rightly concluded that reference to “old grant” was misconceived.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Chief Executive Officer v. Surendra Kumar Vakil, (1999) 3 SCC 555 Defines “old grant” in cantonment areas; Government retains ownership and right of resumption with only occupancy rights in the grantee. The Supreme Court relied extensively on this case to hold that the respondent’s vendor had only occupancy rights, making the respondent incapable of claiming full ownership or demanding de-hiring.
Raj Singh v. Union of India, AIR 1973 Del 169 Affirms continuing applicability of pre-Independence regulations governing cantonment land grants. Cited within the extract from Surendra Kumar Vakil to reinforce the legal status of “old grant” regulations.
Mohan Agarwal v. Union of India, AIR 1979 All 170 Same context as above—validity and interpretation of “old grant” tenures. Referenced through the quotation to illustrate historical continuity of the “old grant” regime.

Court's Reasoning and Analysis

1. The Court examined two crucial documents:

  • Agreement dated 26-7-1948, wherein late Shri Roop Krishan Seth leased the property to the Defence authorities. Its preamble explicitly states that the land was held on “cantonment tenure/old grant,” and Clause (iv)(5) reserves the Government’s right to resume the land without liability.
  • Sale deed dated 23-12-1996 in favour of the respondent, which describes the vendor as only the “occupancy-holder of the land and trees” and owner of the superstructure.

2. Applying the principles in Chief Executive Officer v. Surendra Kumar Vakil, the Court reiterated that an “old grant” confers no proprietary right in the land; the Government remains the landlord and may resume possession at will, subject merely to payment for authorised structures.

3. Because the respondent’s predecessors possessed only limited, transferable occupancy rights, the respondent could not have acquired a higher right. She therefore lacks full ownership and cannot invoke de-hiring provisions designed for private landlords.

4. The Court noted that the respondent had already failed in Small Cause Case No. 2 of 2000, where a competent civil court held that the land belongs to the Ministry of Defence under General Order No. 179 (1836); this unchallenged finding further undermines her claim.

5. The High Court’s judgment was found defective for ignoring these decisive facts and documents, and for treating the respondent as the owner of the land.

Holding and Implications

Appeal Allowed – High Court judgment dated 19-1-2007 set aside; no order as to costs.

Immediate Consequence: The writ petition filed by the respondent stands dismissed, the Government is not required to de-hire the premises, and its right to resume the land remains intact.

Broader Implication: The decision reaffirms the long-standing legal position that “old grant” holders in cantonment areas possess only limited occupancy rights, and cannot compel the Government to surrender or de-hire land that legally remains Government property. No new legal principle has been created; existing doctrine has been applied.

To access the original judgment, please Sign In or Subscribe.

    Union Of India And Others v. Kamla Verma .

    Anil R. Dave, J.— Leave granted. Being aggrieved by the judgment dated 19-1-2007 delivered by the High Court of Allahabad, Lucknow Bench, Lucknow in Writ Petition No. 1661 (M/B) of 1998, the original respondents before the High Court have approached this Court by way of this appeal.

    2. The facts giving rise to the litigation in a nutshell are as under: the respondent-original petitioner before the High Court had filed the aforesaid writ petition praying that the premises situated at 14, Kasturba Marg (Old No. 15, Tomb Road), Lucknow Cantt., be dehired under the policy of the Central Government as reflected in Para 19 Clause (c) of the Policy and Procedure for Dehiring of Houses dated 19-11-1979 (as amended on 19-3-1985) as the premises in question was not being used by the respondents because it was in a dilapidated condition.

    3. After considering the fact that the premises was not in good shape and was not in use by the respondents, the High Court allowed the petition by directing the respondents to permit the petitioner to undertake repair works of the premises in question and to dehire the same with immediate effect. The High Court came to the conclusion that the petitioner was a landlady and as per policy of the Central Government, she had a right to get the property dehired especially when the respondent authorities were not using the same. The High Court had taken into account the contents of a letter dated 29-11-1996, addressed to the Director, DE written by the Defence Estate Officer of Lucknow Cantt. for coming to the above conclusion. The High Court came to the conclusion that the reference to “old grant” seemed to be misconceived as there was nothing on record to show that the land in question was allotted to the vendor of the petitioner lady on “old grant”. Being aggrieved by the aforesaid judgment, the respondent government authorities have filed this appeal.

    4. The learned Additional Solicitor General appearing for the appellant-original respondents has submitted that the impugned judgment is bad in law for the reason that certain factual aspects which had been placed on record along with the counter-affidavit filed before the High Court had not been considered and, therefore, the conclusion arrived at by the High Court is not correct.

    5. It has been submitted by the learned ASG that the premises in question had been granted on “old grant” terms to Shri Roop Krishan Seth, son of Shri Rai Bahadur Prabhu Dayal Seth. Thereafter under an agreement dated 26-7-1948, the premises in question had been leased to the present appellants. A copy of the said agreement was very much on record of the High Court as it had been annexed to the counter-affidavit filed by the present appellant-original respondents before the High Court. Subsequently, the property in question had been inherited by Shri Mohan Krishan Seth, son of Shri Roop Krishan Seth. Thereafter, the property in question had been transferred in favour of the present respondent, namely, Smt Kamla Verma who was the petitioner before the High Court.

    6. So as to substantiate his case, the learned ASG has drawn our attention to the contents of the agreement dated 26-7-1948, whereby the property in question had been leased to the appellant authorities. In the preface of the agreement, it has been clearly stated that the property in question was held by Shri Roop Krishan Seth on “cantonment tenure” or in other words it means “old grant” terms. The said fact denotes that Shri Roop Krishan Seth was not a full-fledged owner of the property in question. Had he been the owner of the property in question, the reference to “cantonment tenure” would not have been made in the said agreement. Moreover, in Clause (iv)(5) of the said agreement, it has been stated that the authorities had a right to resume possession of the whole or any portion of the property in question, during the period of tenancy without being liable to Shri Roop Krishan Seth in any way. Had Shri Roop Krishan Seth been an owner of the property in question, there would not have been any such clause with regard to resumption of the property i.e building as well as the land in question, in the lease deed.

    7. This fact, according to the learned Additional Solicitor General, shows that the land in question, was given to Shri Roop Krishan Seth on “cantonment tenure” or “old grant” terms. The respondent had purchased right in respect of the property in question from Shri Mohan Krishan Seth, son of Shri Roop Krishan Seth after the said property was inherited by him upon death of his father and as Shri Roop Krishan Seth was having the property in question on “cantonment tenure”, the respondent could not have got better right than what Shri Roop Krishan Seth had in the property in question. Therefore, even the respondent is not having full ownership right in respect of the property in question, but is having only “cantonment tenure” in respect of the property in question.

    8. It has been further submitted by the learned ASG that it is open to the appellant authorities to resume the land from the one who has been granted the land on “old grant” terms. He has submitted that the land in question is in a cantonment area and in the past, land in a cantonment area, belonging to the Government, was given for a limited use to the civilians and it was open to the Government to resume such land at any time. He has referred to a judgment delivered in Chief Executive Officer v. Surendra Kumar Vakil (1999) 3 SCC 555 to show as to how the term “old grant” is being interpreted.

    9. Thereafter it has been submitted that the respondent had filed a civil suit in the Court of the Additional District and Sessions Judge, FTC 6, Lucknow, being Small Cause Case No. 2 of 2000. The said suit had been dismissed on 12-12-2006 and while dismissing the suit, the court had come to the conclusion that as per the general order of the Governor General-in-Council bearing No. 179, the land and trees standing on the land in question, belong to the Government of India, Ministry of Defence. The said findings have become final and, therefore, it has been submitted that the respondent has no ownership in respect of the land in question. For the aforestated reasons, it has been submitted that the impugned order is bad in law and, therefore, it deserves to be quashed and set aside.

    10. On the other hand, it has been submitted on behalf of the learned advocate appearing for the respondent that the respondent was the owner of the land in question, as the land in question along with superstructure, had been purchased by the respondent from Shri Mohan Krishan Seth. The learned advocate has also relied upon the letter dated 29-11-1996, written by the Defence Estate Officer, Lucknow Cantt., which has been referred to hereinabove. According to him, in view of the contents of the said letter, it is clear that one of the officers of the appellants had opined that the premises in question was in a dilapidated condition and it was not being used and, therefore, recommendation was made for dehiring the said premises. The said fact, according to the learned advocate, clearly denotes that the premises in question, belongs to the respondent, otherwise the respondent would not have leased the premises to the appellant authorities. The learned advocate has also submitted that the High Court had rightly allowed the petition and, therefore, the appeal be dismissed.

    11. We have heard the learned advocates and have also gone through the contents of the judgment delivered in Chief Executive Officer (1999) 3 SCC 555.

    12. Upon perusal of the agreement dated 26-7-1948 and upon perusal of the sale deed dated 23-12-1996 executed in favour of the respondent, it is crystal clear that the land in question was held by the original grantee Shri Roop Krishan Seth on “old grant” terms under GGC No. 179 dated 12-9-1836. The meaning of the said grant has been clearly explained by this Court in Chief Executive Officer (1999) 3 SCC 555 and that clearly denotes that the vendor who sold the rights in respect of the land in question, was never a full-fledged owner of the said land but he was given the said land only on “old grant” terms. Being allotted the land on “old grant” terms, the said allottee never became a full-fledged owner and, therefore, he could not have transferred any right better than what he had in respect of the land in question, to the present respondent. Shri Mohan Krishan Seth inherited rights in respect of the said property from late Shri Roop Krishan Seth and ultimately Shri Mohan Krishan Seth transferred his rights to the respondent. So the respondent also got the rights which Shri Mohan Krishan Seth had in the property in question. Thus, the respondent was also holding the land/property in question on “old grant” terms and she did not become a full-fledged owner of the property in question.

    13. In our opinion, the High Court did not consider the fact that the present respondent was holding the land in question only on “old grant” terms and, therefore, she was not a full-fledged owner of the land but she had the right only in respect of the superstructure put up on the land in question, which had been given on lease to the present appellants.

    14. The learned Additional Solicitor General has drawn our attention to the judgment delivered by this Court in Chief Executive Officer (1999) 3 SCC 555 so as to explain the meaning of the term “old grant”. Paras 9 and 10 of the said judgment explain the meaning of the term “old grant”. The said paras read as under:

    “9. The narrow question is whether the land was held by S.N Mukherjee on old grant basis or not. The land is in the cantonment area of Sagar. Grant of land in cantonment areas was, at all material times, governed by the general order of the Governor General-in-Council bearing No. 179 of the year 1836, known as the Bengal Regulations of 1836. Under Regulation 6 of these Regulations, the conditions of occupancy of lands in cantonments are laid down. Thereunder, no ground will be granted except on the conditions set out therein which are to be subscribed to by every grantee as well as by those to whom his grant may be subsequently transferred. The first condition relates to resumption of land:
    (1) The Government retains the power of resumption at any time on giving one month's notice and paying the value of such buildings as may have been authorised to be erected.
    (2) The ground being in every case the property of the Government, cannot be sold by the grantee. But houses or other property thereon situated may be transferred by one military or medical officer to another without restriction except in certain cases.
    (3) If the ground has been built upon, the buildings are not to be disposed of to any person of whatever description who does not belong to the army until the consent of the officer commanding the station shall have been previously obtained under his hand.
    10. The High Court in its impugned judgment has reproduced extracts from the book on Cantonment Laws by J.P Mittal, 2nd Edn., at p. 3, which may well be reproduced here:
    ‘Besides municipal administration, another subject that has always loomed large on the cantonment horizon, is the question of provision of necessary accommodation for military officers near the place of their duty. This led to the issue, from time to time, of certain rules, regulations, and orders by the Governments of Bengal, Madras and Bombay Presidencies between the years of 1789 and 1899. The regulations were mostly of an identical nature. They had a twofold object in view, that of ensuring sufficient accommodation for military officers; and that of regulation of the grant of land sites. Some of these regulations are published in this book. These rules, regulations and orders continue to be the law in force in India even after the enforcement of the British Statutes (Application to India) Repeal Act, 1960 (Raj Singh v. Union of India AIR 1973 Del 169, Mohan Agarwal v. Union of India AIR 1979 All 170).
    Under these regulations and orders, officers not provided with government quarters were allowed to erect houses in the cantonment. For this purpose ground was allotted to them with the condition that no right of property whatever in the ground was conferred on them and the ground continued to be the property of the State, was resumable at the pleasure of the Government by giving one month's notice and paying the value of the structures as may have been authorised to be erected. The houses or other property built on such grounds were allowed to be transferred by one military officer to another without restrictions. To civilians these could be transferred only with the prior permission of the officer commanding the station.
    With the lapse of time civilians were also encouraged to build bungalows on the government land in the cantonment on the same condition of resumption of the ground as given above and with a further condition that they may be required to rent or sell the same to any military officer. In case of disagreement about the rent or the sale price, the same was to be fixed by a committee of arbitration. These tenures under which permission was given to occupy government land in the cantonments for construction of bungalows came to be known as “old grant”. Such permission was given mostly on payment of no rent. This is how a large number of bungalows in the cantonments all over India came in the hands of civilians.’ ”

    15. Even in the instant case, the land in question, was originally permitted to be used by a civilian on “old grant” basis and the said fact is reflected in the lease deed executed by late Shri Roop Krishan Seth. Moreover, even in the sale deed executed in favour of the respondent, it has been stated that the vendor was an “occupancy-holder of the land and trees of the aforesaid premises and owner of superstructure of the bungalow…”. It is also pertinent to note that even in the land register the Government of India has been shown as a “landlord” and Shri Mohan Krishan Seth has been shown to be having occupancy right and his nature of right is shown to be of “old grant”. These facts had been duly incorporated in the counter-affidavit filed by the present appellants before the High Court.

    16. It is also pertinent to note that in a civil suit filed by the respondent in the Court of the Additional District and Sessions Judge, FTC 6, Lucknow being Small Cause Case No. 2 of 2000 for eviction, the respondent had failed to obtain a decree against the present appellants. The said suit had been dismissed. The court, while dismissing the suit, had clearly come to the conclusion that as per the general order of GGC No. 179, the land and the trees standing on the land, etc. were the property of the Government of India, Ministry of Defence. The court had come to the conclusion that the land in question was not owned by the present respondent and the present respondent did not challenge the said findings. Unfortunately, the said fact was also not considered by the High Court while allowing the petition filed by the present respondent.

    17. In view of the above legal position, it is always open to the appellants to resume the land in question and the appellants can not be prevented from resuming the land in question. The High Court was in error while considering the respondent as an owner of the property in question.

    18. We, therefore, set aside the order passed by the High Court. The appeal is allowed accordingly. No order as to costs.

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    Comments

    Union Of India And Others v. Kamla Verma .
    (Aug 13, 2010)