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Oswal Fats And Oils Ltd. v. Additional Commissioner, Bareily And Others
Judgment Summary — R. R. Yadav, J.
Factual and Procedural Background
This matter arises from orders of the Additional Commissioner (Administration), Bareilly Division, dated 30-5-2001 (Annexure-1 to the writ petition), and the Collector, Pilibhit, dated 24-5-1993 (Annexure-2 to the writ petition). Both orders ruled that the petitioner company was entitled to hold up to 12.50 acres of land in Uttar Pradesh and that any land held in excess of 12.50 acres vested in the State Government free from all encumbrances.
The petitioner filed a writ petition challenging those orders. At hearing the learned counsel for the petitioner (Sri Sankatha Rai) argued, inter alia, that the findings below rested on an affidavit of the company's General Manager dated 19-5-1993 (Annexure-7) without adequate authority under a board resolution dated 14-10-1991 (Annexure-10), and that statutory expressions such as "family" and "person" under Section 154 of the U.P. Zamindari Abolition and Land Reforms Act, 1951 (U.P. Act No. 1 of 1951) were applicable to the petitioner company. The High Court considered statutory provisions and prior decisions and proceeded to hear the petition under its supervisory jurisdiction under Article 227 of the Constitution.
Legal Issues Presented
- Whether the petitioner company is entitled to hold land in excess of 12.50 acres in Uttar Pradesh under Sections 152, 154, 166 and 167 of the U.P. Zamindari Abolition and Land Reforms Act, 1951 (U.P. Act No. 1 of 1951).
- Whether the affidavit dated 19-5-1993 of the company's General Manager — relied upon by the authorities below — was made with authority under the company's board resolution and could validate retention of excess land.
- Whether the expressions "family" and "person" in Section 154 of the U.P. Act are applicable to a registered company (i.e., whether a company can be treated as a "person" or have a "family" for the purpose of the statutory ceiling of 12.50 acres).
Arguments of the Parties
Petitioner's Arguments
- The proceedings and findings of the Additional Commissioner and the Collector were based on the affidavit of Sri T.R. Sharma, General Manager dated 19-5-1993 (Annexure-7), but Sri T.R. Sharma lacked authority under the company's board resolution dated 14-10-1991 (Annexure-10) to enter into any compromise or to consent to relinquishment of land in favour of the State Government; therefore the impugned findings are perverse.
- The statutory expressions "family" and "person" in Section 154 of the U.P. Act are applicable to the petitioner company, and thus the company should be capable of holding land beyond the 12.50 acre ceiling under the relevant interpretation.
The opinion does not contain a detailed account of any specific arguments advanced on behalf of the respondents in opposition beyond the orders and statutory reasoning applied by those authorities.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Kasturi Sanyukt Sahkari Krishi Samiti Ltd. v. State of U.P. and others — Division Bench decision in Civil Misc. Writ Petition No. 7111 of 1988 (decided 16-3-1989) | Interpreting exceptions under sub-section (2) of Section 154 of U.P. Act permitting transfers in excess of 12.50 acres where the transferee falls within specified categories (e.g., registered co-operative societies, institutions for charitable purposes, transfers in public interest). | The court acknowledged the legal proposition in Kasturi but found the facts of that case distinguishable; Kasturi fell within an exception under sub-section (2) and thus does not govern the present case. |
| State of U.P. and others v. Kasturi Sanyukt Sahkari Krishi Samiti Ltd. — Civil Appeal No. 1618 of 1989 (Supreme Court) | Affirmation by the Supreme Court of the Division Bench decision (see previous row) regarding the applicability of exceptions under Section 154(2). | The High Court noted that the Supreme Court affirmed the Division Bench in Kasturi; nonetheless, the High Court held that Kasturi's facts (and the Supreme Court's affirmation) are distinguishable from the present facts and therefore did not dictate a different result here. |
| Lokpriya Housing Co-operative Society Ltd. v. State of U.P. and others — Division Bench decision in Civil Misc. Writ Petition No. 20518 of 1998 | Application of sub-section (2) of Section 154 in favour of a transferee who fell within one of the statutory exceptions (a co-operative society or similar category). | The court accepted the legal proposition represented by this decision but held that its facts are distinguishable from the present case because the petitioner company does not fall within the exceptions enumerated under Section 154(2). |
Court's Reasoning and Analysis
The court's analysis proceeded by statutory construction and factual application:
- The court examined Sections 152, 154, 166 and 167 of the U.P. Zamindari Abolition and Land Reforms Act, 1951 (U.P. Act No. 1 of 1951). It emphasised that Section 154(1) prohibits a bhumidhar from transferring, by sale or gift, land (other than tea gardens) that will cause the transferee (together with the transferee's family) to hold more than 12.50 acres in Uttar Pradesh. Section 154(2) creates limited exceptions subject to State Government orders (e.g., transfers to registered co-operative societies, charitable institutions, or transfers in the public interest). Section 166 declares transfers made in contravention of the Act to be void, and Section 167 sets out consequences (including vesting in the State) where transfers exceed the statutory limit.
- The court found that the petitioner company did not fall within any statutory exception in Section 154(2): it is not a registered co-operative society under the Co-operative Societies Act, not established for charitable purposes, and there was no material demonstrating that it was established in the public interest. The company had not produced a certificate of registration under the Companies Act; only articles of association of another-named entity were produced (Nuskar Enterprises Ltd.), which the court found unrelated.
- The court addressed the petitioner's contention that the statutory terms "family" and "person" applied to the company. It relied on the explanation appended to Section 154 — which defines "family" as the transferee, spouse and minor children, and, where the transferee is a minor, his or her parents — and concluded these expressions are meant to apply to natural persons. The court reasoned that a registered company, despite its juristic personality, cannot have a wife, husband or minor children as contemplated by the explanation; therefore the terms are not extendable to the petitioner company.
- Regarding reliance on the General Manager's affidavit dated 19-5-1993, the court held that even if that affidavit were ignored (i.e., treated as unauthorised), the findings of the Additional Commissioner and Collector were sustainable on the statutory construction and factual matrix: the transfers to the petitioner occurred between January and April 1992 and were in excess of 12.50 acres.
- The court noted legislative change (prior to 3-5-1981 the Collector had to file suit for eviction; after amendment sub-section (1) of Section 167 was substituted so that surplus land in excess of 12.50 acres vests in the State Government free from encumbrances). Because the transfers to the petitioner exceeded 12.50 acres, the surplus land vests in the State without the need for a separate eviction suit.
- On the authorities cited by the petitioner (Kasturi and Lokpriya), the court recognised their propositions but found them factually distinguishable because they fell within Section 154(2) exceptions; therefore those precedents did not support the petitioner's claim to retain excess land.
- Applying the limited supervisory jurisdiction under Article 227 of the Constitution, the court concluded there was no illegality or perversity in the impugned orders of the authorities below that would justify interference.
Holding and Implications
Final Disposition: The writ petition is dismissed in limine. Petition dismissed in limine.
Direct consequences and practical implications as stated in the opinion:
- The impugned orders of the Additional Commissioner (30-5-2001) and the Collector, Pilibhit (24-5-1993) stand; material justice has been held to have been done between the parties.
- All transfers made in favour of the petitioner company in excess of 12.50 acres are treated as vested in the State Government free from all encumbrances pursuant to the relevant provisions of the U.P. Act (notably Section 167 as substituted).
- The Registry of the Court was directed to send a copy of the order to the Chief Secretary, State of Uttar Pradesh, Lucknow, to ensure that possession of the excess land (more than 12.50 acres) is taken over from the petitioner company through the Collector, Pilibhit, to avoid further delay. The opinion records that the petitioner had been illegally occupying State land for more than nine years contrary to the U.P. Act and Article 38 of the Constitution.
The opinion does not purport to lay down any new broad precedent; its effect is to uphold the statutory scheme and to apply existing exceptions and case law as distinguishable to the facts of this petition.
This summary is drawn exclusively from the provided court opinion text and does not add or infer facts or legal propositions beyond those expressly contained in that opinion.
R. R. Yadav, J.-
Heard learned counsel for the petitioner Sri Sankatha Rai at length.
2. Perused the order dated 30-5-2001, passed by Additional Commissioner (Administration), Bareilly Division, Bareilly (Annexure-1 to the writ petition) and the order dated 24-5-1993, passed by Collector, Pilibhit (Annexure-2 to the writ petition), whereby both the Courts below have passed orders making petitioner Company entitled up to 12.50 acres land in Uttar Pradesh and the excess of 12.50 acres land have been declared to have vested in the State Government free from all encumbrances.
3. It is urged by the learned counsel for the petitioner that the Additional Commissioner and Collector, respondents No. 1 and 2, have based their findings on the affidavit of Sri T.R. Sharma, General Manager of the Company, dated 19-5-1993 (Annexure-7 the writ petition), but neither Sri TR. Sharma has any authority of the Companyundcr resolution dated 14-10-1991 passed by the Board of Directors of the Company (Annexure-10 to the writ petition) to enter into compromise and giving consent lo relinquish the land in dispute in favour of the State Government nor any such consent has been given in the affidavit to relinquish the land in excess of 12.50 acres in favour of the State Government, therefore, the findings of the Commissioner and Collector are perverse and liable to be set aside on this ground.
4. For the reasons given here in below the aforesaid argument of the learned counsel for the petitioner is not acceptable.
5. It is to be noticed that the State Legislature has enacted Section 152 of U.P. Zamidari Abolition and Land Reforms Act (hereinafter referred as U.P. Act No. 1 of 1951) that the interest of Bhumidhar with transferable rights shall subject to the conditions enumerated in subsequent provisions of the said Act would be transferable. Sub-section (1) of Section 154 of the said Act imposes restriction on transfer by abBhumidhar and provides that same as provided in sub-section (2) no bhumldhar shall have the right to transfer by sale or gift any land other than tea gardens to any person where the transferee, as a result of such sale of gift, becomes entitled to land, which together with land, if any, held by his family will, in the aggregate, exceed 12.50 acres in Uttar Pradesh. sub-section (2) of the aforesaid section provides that subject to the provisions of any other law relating to the laid tenures for the time being in force, the Slate Government may, by general or special order, authorise transfer in excess of limit prescribed in sub-section (1) of Sec-lion 154 of U.P. Act No. 1 of 1951 provided if Stale Government is of opinion that such transfer is in favour of a Registered Co-operative Society or an Institution established for charitable purpose which does not have land sufficient for its needs or that the transfer is in the interest of general public. It is further to be noticed that Section 166 of the said Act, provides that every transfer made in the contravention of the provision of U.P. Act No. 1 of 1951 shall be void. Section 167 of the said Act provides consequences, which ensue in respect of every transfer, which is void by virtue of Section 166 of the Act.
6. A combined reading of Sections 152,154,166 and 167 of U.P. Act No. 1 of 1951 leads towards an irresistible conclusion that no bhumidhar shall have the right to transfer by sale or gift any land in excess of 12.50 acres in Uttar Pradesh and in those case where such transfer exceeds 12.50 acres, the transferee, as result of such sale or gift, becomes entitled to land which, together with land, if any, held by his family in aggregate does not exceed 12.50 acres unless the land transferred by a Bhumidhar by sale or gift is tea gardens or t he State Government by general or special order authorises transfer in excess of the limit prescribed provided the State Govern-men t is of the opinion that such transfer is in favour of Registered Co-operative Society or an Institution established for charitable purpose which does not have land sufficient for its needs or that the transfer is in the interest of general public.
7. Learned counsel for the petitioner Sri Sankatha Rai fails to bring the case of the petitioner Company within any one of the exceptions enumerated hereinabove to make the petitioner Company entitle to hold in excess of 12.50 acres in Uttar Pradesh. It is apparent on face of record that petitioner Company has no authorisation either general or special to hold land in excess of 12.50 acres by State Government. Indisputably the petitioner company is not a Co-operative Society registered under the Co-operative Societies Act nor petitioner company is established for charitable purposes. Nothing is brought to my notice that the present Company is established in the interest of general public. Contrary to it, there are overwhelming materials on record and also from attending circumstances it is inferable that the petitioner Company is an establishment established with profit orientation for its share-holders. It is pertinent to mention here that the petitioner Company has not produced its certificate of registration under the Companies Act. During the course of argument articles of association of Nuskar Enterprises Ltd. is produced by the learned counsel for the petitioner. It is not understandable as to why the certificate of registration under the Companies Act is not produced before the Court. It is also not understandable as to how the Articles of Association of Nuskar Enterprises Ltd. has nexus with the petitioner Company. 1 am of the view that even if the affidavit dated 19-5-1993 (An-p.exure-7 to the writ petition) of the General Manager of the petitioner Company giving consent to relinquish the land in excess of 12.50 acres in favour of State Government is ignored even then the findings of respondents No. 1 and 2 are sustainable for the reasons given hereinabove.
8. It is next contended by the learned counsel for the petitioner that the expressions 'family' and 'person' used under Section 154 of U.P. Act No. 1 of 1951 are attracted to the petitioner Company.
9. The aforesaid contention raised by the learned counsel for the petitioner is attractive, but fallacious. The expressions 'family' and 'person' both are to be interpreted in the light of explanation added to section 154 of act No. 1 of 1951. The explanation added under Section 154 of the said Act provides that for the purposes of this Section the expression 'family' shall mean the transferee, his or her wife or husband, as the case may be, and minor children, and where the transferee is a minor also his or her parents. Thus, the expressions 'family' and 'person' used in Section 154 of the Act are to be made applicable to human beings alone and these expressions are not extendable to a registered Company which is an inanimate entity and to whom juristic personality is attached by legal fiction. It is held that such a Company having jurice personality by legal fiction is not capable to have wife or husband or minor children as explained by the State Legislature itself in the explanation appended to Section 154 of U.P. Act No. 1 of 1951, therefore, these two expressions are not extendable to the petitioner Company.
10. It is to be imbibed that whenever any Act is passed or any Section amended by Parliament or State Legislature, it intends to remove some anomalies. Here in the present case, the solemn object of Sections 152,154,166 and 167 of U.P. Act No.
1 of 1951 is to cheek the transfer by sale or gift by a Bhumidhar, any land other than tea garden in excess of 12.50 acres and another object is that no one should be made entitled to acquire Bhumidhar land more than 12.50 acres in Uttar Pradesh unless such transferee brings his/her/its case within any one of the exceptions mentioned hereinabove in extenso. To my mind the aforesaid interpretation 152,154,166 and 167 of U.P. Act No. 1 of 1951, in the present case, is in consonance with Article 38 of the Constitution, which provides that the State shall strive to promote the welfare of the people by securing and protecting as effectively as it may a social order in which justice, social, economic and political, shall inform all the institutions of national life. The State is to minimise the inequalities in income, and endeavour to eliminate inequalities in status, facilities and opportunities, not only amongst individuals but also amongst groups of people residing in different areas or engaged in different vocations. The petitioner Company is a fits and oil producing establishment with profit orientation to its members/share-holders has purchased land by several sale-deeds between January 1992 to April 1992 against the letter and spirit of the aforesaid Sections of U.P. Act No. 1 of 1951 and both the Courts below have committed no error in passing the impugned orders vesting the land in dispute in the State of Uttar Pradesh free from all encumbrances.
11. The learned counsel for the petitioner relied upon a decision rendered by learned Judges constituting Division Bench in Civil Misc. Writ Petition No. 7111 of 1988 (Kasturi Sanyikt Sahkari Krishi Samiti Ltd., Suhanpur v. State of U.P. and others}, decided on 16-3-11989, a copy whereof is filed and marked ks Annexure-12 to the writ petition, and the decision rendered by learned Judges constituting another Division Bench in Civil Misc. Writ Petition No. 20518 of 1998, Lokpriya Housing Co-operative Society Ltd. v. State of U.P. and others. Learned counsel for the petitioner has invited my attention to decision rendered by Supreme Court in Civil Appeal No. 1618 of 1989, Stale of U.P. and others v. Kasturi Sanyukt Sahkari Krishi Samiti Ltd., wherein the Supreme Court affirmed the decision rendered by Division Bench in Civil Misc. Writ Petition No. 7111 of 1988, decided on 16th March, 1989.
12. There is no quarrel with the proposition of law laid down by the learned Judges constituting Division Bench in case of Kasturi Sanyukt Sahkari Krishi Samiti Ltd. (supra), affirmed by Apex Court in S.L.P., and decision rendered by another Division Bench of this Court in case of Lokpriya Housing Co-operative Society Ltd. (supra), but the facts of the aforesaid cases are distinguishable to the facts and circumstances of the present case. The aforesaid cases cited by the learned counsel for the petitioner fall within one of the exceptions enumerated under sub-section (2) of Section 154 of U.P. Act No. 1 of 1951 whereas the learned counsel for the petitioner fails to bring the case of the petitioner Company within the four corners of any one exceptions enumerated under sub-section (2) of the said Section.
13. I have gone through the orders passed by Additional Commissioner (Administration), Bareilly Division, Bareilly dated 30-5-2001 and the order passed by Collector, Pilibhit dated 24-5-1993. In my considered opinion, the aforesaid two orders are just and proper and do not require interference under limited jurisdiction of Article 227 of the Constitution. I am of the opinion that by the impugned orders, material justice has been done between the parties, therefore, I decline to make these orders impugned ineffective by issuing a prerogative writ under Article 227 of the Constitution, which is expected to be exercised by this Court on recognised lines evolved by various judicial pronouncements of High Courts and Supreme Court.
14. In the present case, it is apparent on the face of record that all the transfers had been made in favour of the petitioner Company between January, 1992 to April 1992. It to be noticed that prior to 3-5-1981 for evicting the transferees, who occupied the land on the basis of sale or gift in excess of 12.50 acres in Uttar Pradesh, the Collector was required to file a suit for eviction, but aforesaid provisions had been deleted and sub-section (1) of Section 167 is substituted providing that if the land is in excess of 12.50 acres, it is to vest the State Government free from all encumbrances.
No since it is admitted that the transfer made in favour of the petitioner Company, is in excess of 12.50 acres in the State of Uttar Pradesh, therefore, without filing suit for eviction by Collector, surplus land of more than 12.50 acres shall vest in the Slate Government free from all encumbrances and an argument, contrary to it, is not acceptable.
As a result of aforesaid discussion, the present writ petition is hereby dismissed in limine.
Office of the Registry of this Court is hereby directed to send a copy of this order to the Chief Secretary, State of Uttar Pradesh Lucknow to ensure to take over possession of excess land of more than 12.50 acres from petitioner Company, which is vested in State Government free from all encumbrances through Collector, Pilibhit to avoid further delay to take over possession from the petitioner Company, which is illegally occupying the land of the State Government for more than nine years against the mandatory provisions of U.P. Act No. 1 of 1951 and also against the Constitutional philosophy enshrined under Article38 of the Constitution.
Petition dismissed.
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