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Tilak Raj And Others v. Financial Commissioner (Revenue), Punjab And Others
Court Opinion Summary (V.K. Bali, J.)
Factual and Procedural Background
The original large landowner, Kashmiri Lal, owned 92 Standard Acres 8-1/4 units in village Salemshah. On 15 April 1953 a notice under the Punjab Security of Land Tenures Act, 1953 was issued to determine surplus land. The Collector, Agrarian, Fazilka, by order dated 13 September 1960, left 50 Standard Acres as permissible and declared 42 Standard Acres 3/4 units as surplus. On appeal the Commissioner accepted the appeal by order dated 1 February 1962 and remanded the matter for fresh decision, directing that certain transfers (to Amar Nath, Chuni Lal and Tilak Raj — successors by civil decree in 1956 and now petitioners) be taken into account.
The Collector, Fazilka, on 28 August 1962 allowed 50 Standard Acres as permissible and declared 34 Standard Acres 14-1/4 units surplus, holding the transfers in favour of the sons on the basis of the court decree were not bona fide. The Additional Commissioner, Jalandhar, on 18 April 1963 reduced the surplus to 33 Standard Acres 4-3/4 units. The original landowner did not further challenge that order; a review application was made only by the mortgagee and was allowed on 23 October 1965. The Financial Commissioner dismissed a revision petition against that review on 31 December 1965, and a civil writ filed by the landowner (No. 432 of 1966) was dismissed by this Court on 7 May 1975.
Meanwhile, the Punjab Land Reforms Act, 1972 came into force and the Punjab Utilization of Surplus Area Scheme, 1973 was framed. The original landowner died on 25 May 1974. The Collector, by order dated 17 November 1976, held that the death of the original landowner resulted in non-operation of the earlier declaration of surplus because the successors would be small landowners. Prior to that Collector's order, land measuring 11 Standard Acres 10-1/4 units had been allotted (in 1964) to various persons (Bishan Singh, Jugraj Singh, Jalla Singh, Mangal Singh and others) out of the previously declared surplus.
The successors (the present petitioners), after obtaining a favourable order, sought the ejectment of those allottees; the Collector ordered eviction on 3 January 1978. Respondents No. 3 to 9 appealed to the Additional Commissioner, Ferozepore Division, who on 30 November 1981 accepted the appeals and set aside the Collector's 17 November 1976 order. The petitioners then appealed to the Financial Commissioner and, being unsuccessful, filed the present writ petition seeking to quash the orders passed by the Additional Commissioner, Ferozepore and the Financial Commissioner.
Legal Issues Presented
- Whether the review/setting-aside of an earlier order that declared land surplus (as contended by the petitioners) rendered void, ipso facto, the allotments made earlier out of that surplus land.
- Whether tenants or resettled tenants who were allotted land out of a surplus declaration (and who were settled before the commencement of the Punjab Land Reforms scheme) had locus standi and a right to be heard to challenge orders that would reduce or obliterate surplus area.
- What is the legal effect of the death of the original landowner on the earlier declaration of surplus, particularly where part of the surplus had already been utilised (i.e., allotted and occupied by tenants) prior to the death.
Arguments of the Parties
Petitioners' Arguments
- Main contention: Once orders declaring surplus area were set aside (via the review of 28 October 1965), the allotments made on the basis of those surplus declarations would ipso-facto become void.
- Contended that the order which on the death of the original landowner held that earlier orders under the Punjab Security of Land Tenures Act should not operate could not be challenged by tenants who had been settled on the surplus land (relying on Bhupinder Singh v. State of Punjab and others, 1980 PLJ 72).
The opinion does not contain a detailed account of the legal arguments advanced by the respondents in the present writ petition.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Bhupinder Singh v. The State of Punjab and others, 1980 PLJ 72 | Interpreting Rule 6(5) and 6(6) of the Punjab Security of Land Tenures Rules, 1956: tenants who were already on the land before declaration of surplus are necessary parties and must be heard; resettled tenants (brought after declaration) are not to be divested of their rights by setting aside the surplus declaration unless a specific order so provides. | The Court considered the factual distinctions and rejected the petitioners' reliance on this decision. It held that Paragraph 13 of the 1973 Scheme applied to tenants settled before the commencement of the scheme, making them allottees, and therefore they had rights to be heard and to challenge orders affecting their allotment. |
| Sher Singh and others v. Financial Commissioner of Planning, Punjab and others, AIR 1987 SC 1307 : 1987 RRR 164 | Principle that when land is declared surplus, the Government acquires an indefeasible right and duty to utilise that surplus for re-settlement of tenants; the landowner cannot reclaim surplus land once it has been utilised; exceptions limited to acquisition by Government or inheritance as provided in Section 10-A(b) and subject to Section 10-B. | The Court relied on this apex court principle to hold that where surplus land had been utilised (i.e., allotted to tenants), the death of the landowner could not reduce the surplus to the extent utilised. This supported the conclusion that tenants/allottees retained enforceable rights. |
| Bhikoba Shankar Dhuman (dead) by L.Rs and others v. Mohan Lal Punch and Tathed and others, AIR 1982 Supreme Court 865 | Held that any person entitled to the grant of land under the Act may question an order which would have the effect of reducing the extent of total surplus land in any village. | The Court cited this authority to support the proposition that tenants/allottees (persons entitled to allotment) had locus to challenge orders affecting the extent of surplus land and thus could question the Collector's order following the original landowner's death. |
Court's Reasoning and Analysis
The Court proceeded by addressing the petitioners' primary contentions and analysing the statutory regime, prior administrative orders and subsequent schemes:
- Finality of earlier orders: The Court noted that the orders dated 28 August 1962 and 18 April 1963, "in so far as [the] landowner is concerned," had become final because the landowner did not agitate them further. The only review that followed was initiated by the mortgagee and not by the landowner.
- Scope of the mortgagee's review: The Court emphasised that the review allowed at the instance of the mortgagee (permitted by the Additional Commissioner and later upheld by the Financial Commissioner) was limited in scope — directed to protect the mortgagee's interests. The Court held that the review order could not be read to nullify aspects of the April 18, 1963 order which were not challenged; the Financial Commissioner correctly interpreted the review as confined to protecting the mortgagee's rights without disturbing other portions of the earlier order.
- Tenants' status under the 1973 scheme: The Court applied Paragraph 13 of the Punjab Utilization of Surplus Area Scheme, 1973, which deems a tenant resettled on a landowner's surplus area before the commencement of the scheme to have been allotted land under the scheme (subject to a limited exception not relevant here). The Court found that tenants settled in 1964 were covered by Paragraph 13 and thus became allottees/proprietors under the scheme.
- Distinguishing Bhupinder Singh: While petitioners relied on the Bhupinder Singh decision, the Court examined its factual basis and concluded it did not support the petitioners' position in the present facts. The Court held that resettled tenants who acquire allotment rights before the scheme commenced cannot be deprived of those rights merely by setting aside earlier surplus declarations, particularly where the land has been utilised and allotments made.
- Effect of the landowner's death: Applying Section 10-A(b) (as described in the opinion) and the principle from Sher Singh (supreme court authority), the Court held that where surplus land had been utilised (allotted and resettled), the death of the original landowner does not operate to reduce the surplus with respect to that utilised portion. Only specified exceptions (acquisition by State or succession by inheritance in limited circumstances subject to Section 10-B) could affect surplus status; those exceptions did not apply so as to restore utilised land to the owner's estate in this case.
- Locus to challenge: Combining the statutory scheme, scheme paragraph 13 and authority (Bhikoba Shankar Dhuman), the Court concluded that the tenants/allottees — having acquired rights under the scheme and by utilisation of the surplus — had locus to challenge orders that would reduce or eliminate surplus to their prejudice.
- Outcome applied to present petition: On the facts and law described, the Court found no merit in the petition challenging the orders of the Additional Commissioner, Ferozepore and the Financial Commissioner, and dismissed the petition with costs.
Holding and Implications
Holding: PETITION DISMISSED.
Implications:
- The writ petition attacking the orders of the Additional Commissioner, Ferozepore Division (which had set aside the Collector's order of 17 November 1976) and the subsequent decision of the Financial Commissioner was dismissed; those administrative decisions remain unupset by this Court's order.
- Costs were awarded against the petitioners in the sum of Rs. 1,000/-. (The petition was dismissed with costs quantified at Rs. 1,000/-.)
- The Court reaffirmed that tenants who were resettled and allotted land out of surplus prior to the commencement of the 1973 scheme acquire allotment rights under Paragraph 13 and therefore have a right to be heard and to challenge orders that would prejudice those allotments.
- The Court applied the principle from Sher Singh that once surplus land has been utilised for resettlement, the landowner cannot reclaim that part of the land by reason of delay or by the owner's death, except under the limited statutory exceptions (e.g., acquisition or specific inheritance provisions subject to Section 10-B). Thus utilised surplus does not revert to the owner's estate merely on his death.
- No novel legal principle was announced beyond the application and reconciliation of existing statutory provisions, administrative orders and precedents cited in the opinion; the decision resolves the dispute on the particular facts and established authorities cited.
Disposition: Petition dismissed with costs of Rs. 1,000/-.
V.K Bali, J. — The original big landlord Kashmiri Lal was admittedly owner of 92 Standard Acres 8-1/4 units of land located in village Salemshah. On the appointed date i.e April 15, 1953 admittedly notice under the Punjab Security of Land Tenures Act 1953 was issued to determine if he had any surplus land. The matter for the aforesaid purpose came before Collector Agrarian, Fazilka who vide his order dated September 13, 1960 after leaving 50 Standard Acts of land as permissible area declared 42 Standard Acres 3/4 units as surplus. The landowner challenged the aforesaid order by way of an appeal before the Commissioner and the same was accepted vide order dated February 1, 1962. However, the case was remanded for fresh decision and a direction was given that the transfers made by the landowner in favour of Amar Nath, Chuni Lal and Tilak Raj who were none other than the present petitioners and are admittedly his successors by way of Civil Court decree obtained by them in the year 1956 be taken into account. The Collector Fazilka vide his order dated August 28, 1962 after allowing 50 Standard Acres of land as permissible area declared 34 Standard Acres 14-1/4 units as surplus. It is significant to mention that the transfers made by the big landowner in favour of his sons on the basis of Court decree were not held to be bona fide. The matter was further agitated by way of an appeal before the Additional Commissioner, Jalandhar who vide his order dated April 18, 1953 accepted the appeal and reduced the surplus area from 34 Standard Acres 14-1/4 units to 33 Standard Acres 4-3/4 units. The landowner thereafter did not agitate the matter but as some part of the area declared surplus had since already been mortgaged by the landowner, the mortgagee sought review of the order dated April 18, 1963. The plea of mortgagee succeeded and vide order dated October 23, 1965 the Additional Commissioner Jalandhar reviewed his earlier order dated April 18, 1963. This order of Additional Commissioner Jallandhar was challenged in appeal before the Financial Commissioner Punjab Chandigarh who vide his order dated December 31, 1965 dismissed the revision petition. The landowner then filed Civil Writ Petition No. 432 of 1966 in this Court which too did not find any favour with this Court and it was dismissed vide order dated May 7, 1975. However, the litigation was going on when the new Act i.e Punjab Land Reforms Act, 1972 came into being. Original landowner Kashmiri Lal died on May 25, 1974. Collector vide his order dated November 17, 1976 on account of demise of the original landowner held that inasmuch as the successors of the landowner would be small landowners and no land in their hands could be declared surplus, the death of original landowner would result in non-operation of the earlier order declaring his land as surplus. Before, however, the aforesaid order was passed in the manner indicated above, land measuring 11 Standard Acres 10-1/4 units had since been allotted in facour of Bishan Singh, Jugraj Singh, Jalla Singh, Mangal Singh and others. Obviously, the allotment was out of the land declared surplus m the case of the big landlord and the same was made way back in the year 1964. When the successors of the original landowner i.e the present petitioners after obtaining a favourable order in their favour proceeded against the allottees mentioned above and filed an application for their ejectment before the Collector Agrarian Fazilka who actually ordered their eviction vide order January 3, 1978. Respondents No. 3 to 9 went in separate appeals before the Additional Commissioner, Ferozepore Division who after hearing the parties at length vide order dated November 30, 1981 accepted the appeals and set aside the orders dated November 17, 1976 of the Collector. The aforesaid reversal of decision was obviously not to the liking of the petitioners who agitated the matter before the Financial Commissioner and being unsuccessful from that Court as well, they have approached this Court by way of present Writ Petition with a prayer to quash orders passed by Additional Commissioner Ferozepore as also the Financial Commissioner.
2. Although in the petition, number of points have been raised but the learned counsel appearing for the petitioners has mainly contended that once the orders of declaration of surplus area were set aside vide order October 28, 1965, the allotments made on the basis of orders vide which the land of big landowner was declared surplus would ipso-facto become void. The facts, however, as narrated above would go to show that orders dated August 28, 1962 Page: 356and April 18, 1963 in so far as landowner is concerned, had become final. He had not agitated the matter thereafter and in fact an application for review was carried only by the mortgagee. As indicated above, the review application preferred by the mortgagee was accepted. It is that order which was later on challenged by the original landowner before the Financial Commissioner and the High Court and as indicated above, he was unsuccessful at ever stage. Order dated April 18, 1963 had, therefore, attained finality qua the landowner. As mentioned above, he had only challenged the order dated April 18, 1963 and vide order dated October 28, 1965 the review of order April 18, 1963 was permitted. The order passed on the review application cannot possibly be interpreted so as to mean that part of the order which was not even challenged by any one was also set aside. The Financial Commissioner after thoroughly going through the facts of the case came to the correct conclusion that while permitting the review, the Additional Commissioner ought to have limited the scope of the review to the extent of protecting the interests of the mortgagee and if me order is read as a whole, it would be clear that review was to cover the interest of mortgagee only and in all other respects, order dated Aprill 18, 1963 had not to be touched.
3. The learned counsel for the petitioners also contends that the order by which on demise of original big landowner no effect was to be given to the earlier orders passed under the Punjab Security of Land Tenures Act could not possibly be challenged by the tenants who had been settled on the land declared surplus. In support of his aforesaid contention, the learned counsel relies upon decision of division bench of this Court in “Bhupinder Singh v. The State of Punjab and others”, 1980 PLJ 72. The facts of Bhupinder Singh's case (supra), would, however, show that while interpreting Rule 6(5) and 6(6) of the Punjab Security of Land Tenures Rules, 1956, it was held that the “reference to the tenants in this rule is clearly to such tenants who were already on the land of the landlord in their capacity as such before the declaration of surplus area by thee Special Collector. Such tnants were considered to be necessary parties and if was imperative to hear them because the scheme of the Act is clear that the land of a tenant who was cultivating the same as such at the time of the enforcement of the Act, could not be reserved by the big landlord at the time of the declaration of surplus area by the Special Collector.” It was also held that “in so far as the resettled tenant is concerned, he is brought on the surplus land of the landlord after it is declared surplus by the Special Collector. Thus his status as a tenant or a resettled tenant follows the declaration of some area out of the land of the landlord as surplus. Such tenants or resettled tenants were not to be divested of their rights of my specific order to that effect as a result of the setting aside of the order declaring some area to be surplus in the hands of a particular landlord.” We are, however, not inclined to agree with the contention raised by the learned counsel for the petitioners. It shall be seen from the facts of the present case that the tenants were settled on the land which was declared surplus in the hands of the original landowner way back in the year 1964. The Punjab Land Reforms Act 1972 came into force on 2nd of April, 1973. under the Act aforesaid, the manner in which the surplus land is to be allotted, a scheme known as Punjab Utilization of Surplus Area Scheme 1973 was also framed. Paragraph 13 of the aforesaid Scheme runs as follows:—
“A tenant resettled on the surplus area of a landowner in accordance with the provisions of the Punjab Law and the Rules framed thereunder at any time before the commencement of the Act shall be deemed to have been allotted land in accordance with the provisions of this scheme: Provided that the provisions of this paragraph shall not be applicable where the tenant is deemed to have become the owner in accordance with clause (d) of sub-section (4) of section 18 of the Punjab Law before the commencement of the scheme.”
4. Paragraph 13 of the scheme is, thus, attracted to the facts of the present case. The landowner died on 253.1974 i.e after the enforcement of scheme of 1973. The tenante who were settled on the surplus land on account of paragraph 13 of the scheme reproduced above improved their status and became allottees. It was not disputed by the learned counsel for the petitioners that under the scheme of 1973, a tenant settled on the surplus area had a right to get allotment as proprietor persons who were tenants under the Act of 1953 became allottees in view of the provisions of Punjab Land Reforms Act and Punjab Utilization of Surplus Area Scheme. It cannot be urged on any meaningful ground that they would not have a right to be heard or they would not have a right to challenge the order if their rights were going to be prejudiced on account of any order that might either reduce the surplus area or totally obliterate the same. The judgment cited by the learned counsel in support of his contention that the tenants or resettled tenants have no right of hearing nor they have any right to challenge the order with regard to surplus area of landowner has, thus, no substance and, mus, deserves to be rejected.
5. The contention of learned counsel for the petitioners cannot prevail for yet another reason and that is that the facts of the present case reveal that the tenants were settled on the land way back in the year 1964 and the death of landowner occurred in the year 1974. Once the land stood utilized even the death of the landowner would not make any difference for reducing the surplus area, at least to the extent that the same stood utilized as per provisions contained in Section 10-A(b) of the Punjab Security of Land Tenures Act 1953, it is only succession by inheritance or acquisition by the State that might result into reducing the surplus area in case of death of landowner but in so far as the land which has been utilized, that cannot possibly revert back to the landowner. Page: 357The apex Court in “Sher Singh and others v. Financial Commissioner of Planning, Punjab and others”, AIR 1987 SC 1307 : 1987 RRR 164, has held that “along with the order declaring the land of an owner as surplus, a corresponding right and duty accrue to the Government to utilise the surplus area for the re-settlement of tenants. In other words, the rights on the land declared as surplus get vested in the Government, to be distributed amongst the tenants for resettlement. This is an indefeasible right that the Government secures. The landowner could not get back the land, if the surplus had not been utilised. There is nothing in the Act which imposes any time limit for the Government to utilise the land for purpose mentioned in the Act Nor is there any provision enabling the owner of the land to claim back the land and to get is restored to him if utilisation is not made by me Government within a specified period. All that the Act contains by way of exception is what is seen in Section 10 A(b). If at me time of the commencement of the Act, the land is acquired by the Government under the relevant acquisition laws or when it is a case of inheritance, the owner could claim exclusion of such land from his land for fixation of his ceiling under that Act. The second exception itself is further fettered by me provision in Section 10-B that where succession had opened after me surplus area or any part thereof had been utilised under Section 10-A(a), me saving specified in favour of an heir by inheritance would not apply in respect of the area so utilised. To put it short, the Government had under the Act an unfettered right without time limit to utilise the land for re-settlement of tenants subject to the two exceptions mentioned above. It is, of course, desirable, that re-settlement should be done as expeditiously as possible. Inaction on the part of the Government to re-settle the tenants will not clothe the owner with a power for restoration of the land.”
6. A resume of facts as have been re-produced above would, thus, show dut me tenants had acquired a right for allotment of the land. Therefore, it cannot be said by any stretch of imagination that there had no locus standi to challenge the orders vide which me earlier orders declaring surplus land in the hands of the original landowner was sought to be reviewed on the demise of Tilak Raj the original landowner. In “Bhikoba Shankar Dhuman (dead) by L.Rs and outers v. Mohan Lal Punch and Tathed and others”, AIR 1982 Supreme Court 865 it has been held dut any person who is entitled to grant of land under the provisions of Act may question an order which would have the effect of reducing the extent of total surplus land in any village.
7. Finding no merit whatsoever in this petition, we dismiss me same with costs which are quantified at Rs. 1,000/-.
Petition dismissed.
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