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citation codes
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  • s. 15 of act 17 of 1972. It, Inter alia, Omitted clause (ii) of sub - section (1)
  • act 35 of 1969, Act 25 of 1971 and act 17 of 1972,
  • Clause (1) of sub - section (1) of s. 81
  • s. 65 of act 35 of 1969
  • act 17 of 1972. S. 15
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • s. 15 of act 17 of 1972. It, Inter alia, Omitted clause (ii) of sub - section (1)
  • act 35 of 1969, Act 25 of 1971 and act 17 of 1972,
  • Clause (1) of sub - section (1) of s. 81
  • s. 65 of act 35 of 1969
  • act 17 of 1972. S. 15
Smart Summary

Factual and Procedural Background

The consolidated proceedings involve civil appeals nos. 907, 908 and 909 of 1974 (by the State of Kerala and the Land Board, Trivandrum) directed against a common judgment of the Kerala High Court dated 27 July 1973. Civil appeals nos. 1354 and 1355 of 1975 were filed by petitioners who had applied for revision of orders of the Taluk Land Board, Alathur dated 11 June 1974 and 27 April 1974; the High Court had dismissed those revision petitions by judgments dated 9 July 1975 and 18 June 1975 respectively. All appeals came by special leave and were heard together.

The substantive controversy concerns application of provisions of the Kerala Land Reforms Act, 1963 ("the Act") to voluntary transfers of "kayal" lands. The High Court had taken the view that transfers made between 15 September 1963 (date of publication of the Land Reforms Bill in the Gazette) and 1 January 1970 had to be recognised and the kayal lands comprised in those transfers excluded when reckoning the ceiling area and the excess lands to be surrendered after 1 January 1970. One set of appellants (the Advocate General on behalf of the State) contested that conclusion; other appellants contended that certain gift deeds in their favour were valid and did not fall within the mischief of section 84(1) of the Act.

The High Court had also considered and upheld challenges to the constitutional validity of certain provisions of the Act in the three petitions disposed of on 27 July 1973. The present appeals do not reopen that constitutional question, and the court noted that the Act and its amending Acts were included in the Ninth Schedule to the Constitution.

Legal Issues Presented

  1. Whether voluntary transfers of kayal lands effected between 15 September 1963 and 1 January 1970 are invalidated by section 84 of the Act or must be recognised because kayal lands were exempt under clause (1) of sub‑section (1) of section 81 until 1 January 1970.
  2. Whether the ceiling area and the obligation to surrender excess land (under sections 83 and 85) must be determined with reference to the position as on 1 January 1970 (the date notified under section 83).
  3. Whether voluntary transfers of kayal lands effected between 1 January 1970 and 2 November 1972 (the period in appeals 1354 and 1355) fall within the invalidating operation of section 84, and whether exemptions (notably the "natural love and affection" exemption in section 84) apply to such transfers after subsequent amendments.
  4. Whether amendments to the Act (notably section 65 of Act 35 of 1969 and section 15 of Act 17 of 1972) operate retrospectively or otherwise affect the validity of transfers made before they were brought into force.

Arguments of the Parties

Advocate General / Appellants' Arguments

  • The principal point pressed by the Advocate General concerned the validity of transfers of kayal lands between 15 September 1963 and 1 January 1970: he argued that the amendment withdrawing the exemption for kayal lands (s. 65 of Act 35 of 1969) should be given retrospective effect from 1 April 1964, and that section 84 (which invalidates voluntary transfers after publication of the Bill) had the effect of invalidating transfers effected after 15 September 1963.
  • The Advocate General relied on precedents (as cited in the opinion) to support arguments about retrospectivity/curative or declaratory character of amendments (the opinion records his citation of specific cases).

Petitioners / Respondents' Arguments

  • The writ petitioners before the High Court (whose position informed the common judgment) argued that the kayal lands were exempt under clause (1) of sub‑section (1) of section 81 (i.e., kayal padasekharams of Kuttanad specified in Schedule IV) so that transfers could not be invalidated with effect from 1 January 1970 by later amendments.
  • In appeals nos. 1354 and 1355 the petitioners contended that the gift deeds were on account of natural love and affection and therefore within the exemption in clause (ii) of section 84; the court records that this contention was not sustainable in view of the amendment by Act 17 of 1972 which, with effect from 16 August 1968, removed that exemption and later restricted the categories entitled to the exemption.
  • Note: The opinion records that representatives of respondents in two appeals (908 and 909) informed the court that they were not interested in the controversy; the Court had not heard any one on behalf of respondents in appeals 907 to 909 at the hearing.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Pritam Singh Chahil v. State of Punjab and Others (1967) 2 S.C. 536 Cited by the Advocate General in argument (the opinion does not set out the precise rule relied on from this case). The Court expressly held that this authority "cannot avail the appellants" in the present cases (i.e., the Court found it inapplicable to support the Advocate General's position).
Chanan Singh & another v. Rai Kaur (1967) 1 S.C.R. 803 Cited by the Advocate General (the opinion indicates the facts of that case were relied on; the precise principle is not expansively described in the text). The Court found the facts of Chanan Singh to be "quite different" and held that it did not assist the appellants; the amendment in the present case was neither curative nor merely declaratory in the circumstances before the Court.

Court's Reasoning and Analysis

The Court analysed the statute and the sequence of amendments, applying basic principles of statutory construction stated in the opinion:

  1. The Court began from the text of section 84 which, as originally enacted, declared that "all voluntary transfers effected after the date of publication of the Kerala Land Reforms Bill, 1963" (15 September 1963) would be deemed transfers calculated to defeat the Act and "shall be invalid", subject to specified exceptions. Thus the validity of transfers (generally) had to be examined with reference to 15 September 1963 for purposes of section 84.
  2. However, section 83 — which prohibits holding lands in excess of the ceiling area — operated with effect from a date notified by the Government, namely 1 January 1970. Section 85 (and its amending Acts) maintained that surrender of surplus land had to be determined with reference to "the date notified under section 83", i.e., 1 January 1970. Consequently the crucial date for determining and surrendering surplus land was 1 January 1970, not any earlier date.
  3. The Court then examined the special exemption in clause (1) of sub‑section (1) of section 81 which exempted "kayal padasekharams of Kuttanad area specified in Schedule IV" so long as they were used for cultivation of paddy or other notified crops. The kayal lands in these appeals fell into that exempt category.
  4. Although the exemption was withdrawn by section 65 of Act 35 of 1969, the Court emphasized that the withdrawal was not brought into force until 1 January 1970. Therefore transfers of kayal lands made between 15 September 1963 and 1 January 1970 remained outside the operation of chapter III due to the existing exemption and hence could not be held invalid on account of section 84.
  5. The Court applied the established rule against reading statutes retrospectively except where necessary. It found no necessity to give retrospective effect to the amendment withdrawing the exemption (i.e., to treat the amendment as effective before it was brought into force). Consequently the Advocate General's argument for retrospective operation (from 1 April 1964) was rejected.
  6. With respect to transfers in the period 1 January 1970 to 2 November 1972 (appeals 1354 and 1355), the Court held these were not exempt from the restrictions of chapter III. Section 84 therefore applied and invalidated such voluntary transfers. The Court rejected the contention that the transfers constituted gifts "on account of natural love and affection" within the exemption of clause (ii) of section 84 because that exemption was omitted (by section 15 of Act 17 of 1972) and was deemed to have been omitted with effect from 16 August 1968; further amendments restricted the exemption to specified relatives (son/daughter or son/daughter of a predeceased son/daughter) and the impugned transfers (gifts to grandchildren by a daughter who was alive) did not fall within the exempted category after the amendments.
  7. Applying these conclusions to the appeals: transfers of kayal lands between 15 September 1963 and 1 January 1970 (appeals 907–909) were valid and could not be invalidated by subsequent amendments that were not in force before 1 January 1970. Transfers occurring on or after 1 January 1970 (appeals 1354 and 1355) were caught by the prohibitions and invalidation provisions and the claimed exemptions did not avail the claimants.

Holding and Implications

DISMISSED

Direct effect on the parties:

  • Appeals nos. 907, 908 and 909 of 1974 were dismissed — the Court held that voluntary transfers of kayal padasekharams made between 15 September 1963 and 1 January 1970 were valid because the relevant exemption in section 81 continued to apply until 1 January 1970 when the withdrawal of the exemption was brought into force.
  • Appeals nos. 1354 and 1355 of 1975 were dismissed — transfers of kayal lands made during the period 1 January 1970 to 2 November 1972 were not exempt and were subject to section 84's invalidating operation; the claimed "natural love and affection" exemption did not apply in light of subsequent amendments and the factual circumstances recorded in the opinion.
  • The Court ordered that the parties pay and bear their own costs in view of the facts and circumstances.

Broader implications: The opinion confines itself to statutory interpretation and application to the facts; it resolves the disputes between the parties on the points of validity and timing of statutory amendments and their enforcement. The opinion does not purport to establish any broader novel legal precedent beyond these statutory constructions and their application to the present appeals.

    State Of Kerala v. M.J.Thomas

    1. Civil appeals nos. 907, 908 and 909 of 1974 are by the state of kerala and the land board, Trivandrum. They are directed against a common judgment of the kerala high court dated july 27,1973. Civil appeals nos. 1354 and 1355 of 1975 are by petitioners who had applied for revision of the orders of the taluk land board, Alathur, Dated june 11, 1974 and april 27,1974. The high court dismissed the revision petitions by two separate judgments dated july 9, 1975 and june 18, 1975. All the appeals are by special leave. We have beard them together at the instance of the learned counsel for the parties, And will examine f hem in a common judgment.

    2. The controversy in all the cases relates to the application of certain provisions of the kerala land reforms act, 1963, Hereinafter referred to as the act, To the impugned voluntary transfers of kayal lands. The state of kerala feels aggrieved because the high court has taken the view that the transfers made between september 15,1963 and january 1, 1970 had to be

    "recognised and kayal lands comprised therein excluded in reckoning the ceiling area and the excess lands to be surrendered after january 1,1970."
    the grievance of the other two appellants is that their revision petitions were dismissed even though the gift deeds in their favour were valid and did not fall within the mischief of s. 84 (1) of the act. We shall examine these points of controversy but. Before doing so, It may be mentioned that the validity of certain provisions of the act was also challenged in the high court, In the three petitions which were disposed of by the common judgment dated july 27,1973, But the high court upheld them. There is no such controversy before us as the act, And the acts which have amended it, Have been specified in the ninth schedule to the constitution. It may also be mentioned that we have not had the advantage of hearing any one on behalf of the respondents in civil appeals nos. 907 to 909 of 1974 as miss lilly tomas, Who represented the respondents in civil appeals nos. 908 and 909, Informed the court, At the commencement of the arguments, That they were not interested in the controversy.

    3. While examining the petitions which are the subject matter of appeal nos. 907 to 909 of 1974, The high court thought it sufficient to refer only to the facts of original petition no. 288 of 1973. That case is not before us, But that would not matter as the appeals can be disposed of without reference to the details of that case. It will be sufficient to say that the petitioner in that case was m. T. Joseph, And the controversy centred round a settlement deed (ex p 8) made by him in favour of his children on june 15,1957. The appellants in the three appeals (nos. 907 - 909) are m. T. Joseph's children.

    4. As has been stated the high court examined the constitutional validity of the provisions of the act and upheld them. It next examined the question whether lands in excess of the ceiling area were in the lawful or permissive occupation of the petitioners (in the petition before the high court), With reference to the argument that in view of the terms of ex. Ri, By which some of the excess lands were assigned to the holder, The occupation commenced with an implied permission on payment of the state dues. The high court did not however think it proper to express its final views on that aspect of the matter as it found that certain proceedings were pending before the authorities concerned. It therefore left the matter after giving the direction that the land board will not pursue the proceedings in respect of those lands until the matter was finally decided in the pending proceedings. So also, The high court left the question regarding the ownership of the lands which had been conveyed by the settlement deed of 1957, For investigation and decision by the land board.

    5. The high court however proceeded to examine the validity of certain transfers of lands between september 15, 1963 and january 1, 1970 with reference to the relevant provisions of the act and held as follows:

    "broadly stated, The effect of s. 84 is to invalidate transfers effected by a person owning or holding land in excess of the ceiling area, After the date of publication of the land reforms bill (15 - 9 - 1963). That being the object of the section, In order to determine whether the transfer was in excess of the ceiling area, What is material is the law relating to ceiling area on the date of the transfer, And not the law regarding ceiling area on the date of the acquisition or any date subsequent to the transfer."

    it therefore held that there was no justification for treating the alienations effected after september 15, 1963 and before january 1, 1970 as having been invalidated by reason of the subsequent amendments in the law, When they were lawful and valid under the "law relating to ceiling area at the time when they were made". The high court also examined the questions relating to the grant of compensation and improvements, But they do not arise for consideration before us.

    the only question which has been pressed for our consideration by the advocate general, On behalf of the appellants, Is that relating to the validity of the transfers of kayal lands between september 15, 1963 and january 1, 1970. The writ petitioners in the high court urged that they were exempt under s. 81 (1) (1) of the act and could not beheld to be invalid with effect from january 1, 1970 because of the subsequent amendment' to the act, And included in their ceiling area.

    the term "ceiling area" has been defined in s. 2 (3) of the act to mean "the extent of land specified in s. 82 as the ceiling area", And there is no controversy about its extent or content. S. 83 of the act prohibits the holding of lands in excess of the ceiling area with effect from january 11970, Which had been notified by the government in the gazette as the date from which the prohibition was to be effective. S. 84 declares certain voluntary transfers to be null and void. The section as it stood before the amendments read as follows:

    s. 84. Certain voluntary transfers to be null and void. "notwithstanding anything contained in any law for the time being in force, All voluntary transfers effected after the date of publication of the kerala land reforms bill, 1963, In the gazette, Otherwise than (i) by way of partition; or (ii) on account of natural love and affection; or

    (iii) in favour of a person who was a tenant of the holding before the 27th july, 1960, And continued to be so till the date of transfer; or

    (iv) in favour of a religious, Charitable or educational institution of a public nature solely for the purposes of the institution, By a family or any member thereof or by an adult unmarried person owning or holding land in excess of the ceiling area, Shall be deemed to be transfers calculated to defeat the provisions of this act and shall be invalid. "

    there is a proviso to the section with which we are not concerned. The validity of the transfers had therefore to be examined with reference to september 15, 1963 which was the date of the publication of the kerala land reforms bill, 1963, In the gazette. The section was amended by act 35 of 1969 by which the existing section was re - numbered as sub - section (1) and a sub - section was added as sub - section (2)

    which dealt with voluntary transfers effected by any person "other than" a family or any member thereof or by an adult unmarried person owning or holding land in excess of the ceiling area. The amendment could not therefore be said to have any bearing on the present controversy. The section was however again amended by s. 15 of act 17 of 1972. It, Inter alia, Omitted clause (ii) of sub - section (1) and provided that the omission shall be deemed to have been made with effect from the 16th day of august, 1968. This had the effect of taking away the exception in favour of voluntary transfers on account of natural love and affection. But it is not the case of any one before us that there was any such transfer in respect of civil appeals nos. 907 to 909, So that that amendment also could not be said to have any material bearing on the controversy relating to these appeals.

    6. The fact therefore remains that by virtue of s. 84 of the act, All voluntary transfers of land effected after september 15,1963 (date of publication of the kerala land reforms bill, 1963 in the gazette) were invalid as they were to be deemed to be transfers calculated to defeat the provisions of the act. So even if a transfer was found to have been made after september 15, 1963 but before january 1, 1970 (date notified under s. 83 prohibiting the owning or holding or to possessing under a mortgage lands in the aggregate in excess of the ceiling area) the ceiling area for purposes of s. 83 and bringing about the surrender of the excess land under s 85 had to be determined with reference to the position as on january 1, 1970 as that was the date notified under s, 83. The reason is that the prohibition of s. 83 applied with reference to that date and that, In turn, Required a surrender of the excess land as on that date.

    7. S. 85 is therefore an important section. It was amended by act 35 of 1969, Act 25 of 1971 and act 17 of 1972, But there was no change in its basic provision that when a person owned or held land in excess of the ceiling area "on the date notified under s. 83", Namely, January 1, 1970, He had to surrender it in accordance with the other provisions of the section. The crucial date for determining and surrendering the surplus land was therefore january 1, 1970, And not any earlier date, But the validity of any voluntary transfer effected after september 15, 1963, Which was the date of publication of the kerala land reforms bill, 1963, Had still to be examined with reference to september 15, 1963 in view of the clear requirements of s. 84. This was the scheme of the act.

    8. We have made a reference to s. 84 which clearly provided that all voluntary transfers of land effected after september 15, 1963 shall be deemed to be transfers calculated to defeat the provisions of the act and "shall be void". It has not been urged that the impugned transfers fell under any of the exceptions provided by s. 84. There can be no doubt that any transfer made after september 15,1963 and before january 1, 1970 would be invalid unless it could be shown to have been saved by any other provision of the act. In this connection s. 81 of the act is important for it prescribes the exemptions to the provisions of chapter iii. Clause (1) of sub - section (1) of s. 81 specifically provides that the provisions of the chapter shall not apply to,

    " (1) kayal padasakharams of kuttanad area specified is schedule iv, So long as such padasakharamas are used for the cultivation of paddy or such other crops as the government may, By notification in the gazette, Specify."

    9. It is not in controversy that the kayal lands which are the subject matter of these appeals are of the category mentioned in Clause (1) of sub - section (1) of s. 81. They were therefore exempt from the restriction on ownership prescribed by the various sections of chapter iii referred to above. So even though by virtue of s. 84 of the act all voluntary transfers effected after september 15, 1963 (date of publication of the kerala land reforms bill, 1963 in the gazette) were invalid, The transfers made in respect of kayal padasekharams in appeals nos. 907 - 909 could not be held to be invalid for the simple reason that they were exempt from the provisions of chapter iii. That exemption was no doubt withdrawn by s. 65 of act 35 of 1969 which amended the act, But it is not disputed before us that the section was not brought into force until january 1, 1970. The voluntary transfers made between september 15, 1963 and january 1, 1970 were therefore valid, And there is no force in the argument of the advocate general that the amendment brought about by s. 65 of act 35 of 969 should be given retrospective effect from april 1, 1964 as s. 82 and 84 of the act were brought into force from that date. There is also no force in the other argument of the advocate general that s. 84 had the effect of invalidating the transfers effected after september 15, 1963 for that was the date of publication of the kerala land reforms bill in the gazette. The argument overlooks the fact that, As has been mentioned, Kayal lands were exempt from the provisions of chapter iii until as late as january 1, 1970. In this view of the matter pritam singh chahil v. State of punjab and others (1967) 2 s. C. 536 cannot avail the appellants. The amendment cannot also be said to be curative or merely declaratory of the previous law. The facts of chanan singh and another v. Rai kaur (1967) 1 s. C. R. 803 cited by the advocate general, Were quite different inasmuch as in the appeals before us the amendment which was made by s. 65 of act 35 of 1969 was neither curative nor merely declaratory. As has been stated, It, Inter alia, Omitted clause (1) of sub - s. (1) of s. 81 of the act which exempted the kayal padasekharams which are the subject matter of the present controversy from the application of the provisions of chapter iii of the act. It is well settled that a statute is not to be read retrospectively except of necessity. There is no such necessity in the cases before us, For the legislature decided to exempt the aforesaid kayal lands from the operation of the restrictions and even though amending act 35 of 1969 was promulgated on december 17,1969, S. 65 thereof, Which withdrew the exemption, Was not brought into force until january 1, 1970.

    10. Thus there is no force in appeals nos. 907, 908 and 909 and they are dismissed.

    11. This leaves civil appeals nos. 1354 and 1355 for consideration. The transfers of kayal lands in these cases were admittedly made during the period january 1, 1970 to november 2,1972. As such they were not exempt from the restrictions of the provisions of chapter iii of the act. S. 84 of the act would be attracted to these transfers, And it is futile to contend that this would not be so because the transfers were effected 'on account of natural love and affection' within the meaning of clause (ii) of the exemption provided by s. 84 because the exemption to that effect was taken away by act 17 of 1972. S. 15 of that act specifically stated that that clause

    "shall be, And shall be deemed to have been omitted with effect from the 16th day of august, 1968."
    moreover, As the high court has pointed out the impugned transfers were in favour of the donor's grand children by his daughter who was alive, And could not be said to fall within the exempted category because of the other amendments made in s. 84 of the act by s. 15 of act 17 of 1972 with effect from the 16th day of august, 1968 which restricted the exemption to gifts made in favour of the donor's son or daughter or the son or daughter of his predeceased son or daughter. There is thus no force in these two appeals also, And they are dismissed.

    in view of the facts and circumstances of the cases, We leave the parties to pay and bear their own costs. Dismissed.

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    Comments

    State Of Kerala v. M.J.Thomas
    (Aug 20, 1976)