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Shahul Hameed v. Hassan

Kerala High Court
Jun 12, 1980
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Structured Summary of the Opinion

Factual and Procedural Background

The disputed property was in the possession of the respondents under Ext. A2 lease deed dated 9-2-1116 M.E. Subsequently the lessor executed Ext. A1 otti deed dated 3-6-1123 in respect of the same property. Alleging that Ext. A1 evidenced a possessory (usufructuary) mortgage, the mortgagor's son filed an application under S. 11(5) of the Kerala Agriculturists' Debt Relief Act, 1970 seeking redemption of the mortgage.

The counter-petitioners raised two alternative contentions: (1) Ext. A2 lease subsists despite Ext. A1; and (2) Ext. A1 evidences a tenancy arrangement. The trial court upheld those contentions and dismissed the application under S. 11(5). The applicant appealed to the lower appellate court, which dismissed the appeal but held that while Ext. A1 did not evidence a tenancy, Ext. A2 lease subsisted despite Ext. A1; accordingly the respondent was held to be occupying as a tenant.

The defeated applicant filed Civil Revision Petition (CRP) No. 470 of 1977 and Civil Miscellaneous Appeal (CMA) No. 32 of 1977 against the orders of the lower courts. The 1st respondent filed CRP No. 618 of 1977 challenging the lower appellate court's finding that Ext. A1 was a usufructuary mortgage and not a tenancy.

Legal Issues Presented

  1. Whether non-compliance by the trial court with S. 125(3) of the Kerala Land Reforms Act, 1963 (i.e., failure to refer the question of tenancy to the Land Tribunal) rendered the trial court's and the appellate court's decisions null and void, given that the application under S. 11(5) of the Kerala Agriculturists' Debt Relief Act was filed on 16-3-1972.
  2. Whether Ext. A2 lease (dated 9-2-1116 M.E.) subsists despite the subsequent Ext. A1 otti transaction (dated 3-6-1123), i.e., whether by executing Ext. A1 the lessee intended to give up rights under Ext. A2.
  3. Whether Ext. A1 evidences a usufructuary mortgage or a tenancy (this issue was presented in CRP No. 618 of 1977 and was raised before the courts below).

Arguments of the Parties

Applicant / Revision Petitioner (also appellant in CMA No. 32 of 1977)

  • The application under S. 11(5) of the Kerala Agriculturists' Debt Relief Act was filed on 16-3-1972; therefore the question whether the opposite party is a tenant should have been referred by the trial court to the Land Tribunal under S. 125(3) of the Kerala Land Reforms Act, 1963.
  • Because no such reference was made by the trial court, the decision of the trial court (and the appellate confirmation) is void and without jurisdiction.
  • The submission was supported by reliance on the Full Bench decision in Kesava Bhat v. Subraya Bhat (1979 KLT. 766) (F.B.).
  • On the merits, the applicant additionally contested the lower appellate finding that Ext. A2 lease subsists despite Ext. A1.

Counter-petitioners / Respondents (parties opposing the S. 11(5) application)

  • In the alternative, they contended that Ext. A2 lease subsists despite Ext. A1 otti transaction.
  • Alternatively, they contended that Ext. A1 evidences a tenancy arrangement (i.e., not a mortgage).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Alavi v. Radha Varasyaramma (1976 KLT. 691) (Full Bench) Held that a judgment or order passed without compliance with S. 125(3), (4) and (5) is not a nullity; non-compliance may render a decision erroneous but not void if the court otherwise had jurisdiction over subject-matter and parties. Also observed that when the objection is first taken in second appeal, the High Court is not required to reopen proceedings to enable the trial court to make a reference to the Land Tribunal. The court recited this Full Bench view as one of the precedents binding on the court; it used the principle to consider whether non-compliance with S.125(3) could be taken at this stage to render the lower appellate decision void.
Kesava Bhat v. Subraya Bhat (1979 KLT. 766) (Full Bench, larger) The larger Full Bench disagreed with the earlier Full Bench (Alavi) on the proposition that the matter was merely procedural and that non-compliance would only vitiate by irregularity. On whether the question could be taken in second appeal after being examined by the lower appellate court, the larger Full Bench did not pronounce. The opinion acknowledges the larger Full Bench's disagreement with Alavi on that aspect and treats these conflicting Full Bench pronouncements as part of the authorities that must be considered; the court notes that the later/larger Full Bench considered the correctness of the Alavi propositions.
Karthiyayani v. Pappu, ILR. 1980 (1) Kerala 667 (Full Bench) Followed the Alavi Full Bench view and explained that if the point was taken before the appellate court, the appellate court may set aside and remit to the trial court for compliance with S.125(3) though not bound to do so; sub-section (6) of S.125 gives appellate power. If the point was not taken before the appellate court, it should not be permitted in the second appeal for the first time. The court noted that an earlier Full Bench had followed Alavi and recorded the principle that where the issue was taken before the appellate court, the appellate court had power to remit; this supports the court's conclusion that a party who did not object earlier cannot later claim nullity.
Noor Mohd. Khan v. Fakirappa ((1978) 3 SCC 188 : A.I.R. 1978 S.C. 1217) Regarding a provision similar to S.125, the Supreme Court held that when an issue has been referred by the civil court to the Tribunal and is received back and a decree passed, the Civil Procedure provisions regarding appeals and revisions apply; the appellate court must consider the correctness of the issue decided by the Tribunal. The jurisdiction of civil courts is not entirely barred by the Act; appeals under the Civil P.C. and High Court's jurisdiction in appeals/revisions have not been excluded. The court relied on the Supreme Court decision to support the view that appellate courts retain jurisdiction to consider the correctness of issues referred to the Tribunal and that appeal procedure is still governed by the Civil Procedure Code; this was used to reject the contention that non-compliance with S.125(3) rendered the appellate decision void.

Court's Reasoning and Analysis

The court began by addressing the procedural contention that non-compliance with S. 125(3) of the Kerala Land Reforms Act rendered the proceedings void. It analyzed earlier Full Bench authorities and a Supreme Court decision:

  1. The court reviewed the Full Bench decision in Alavi v. Radha Varasyaramma which treated non-compliance with S.125(3)-(5) as not rendering an order a nullity if the court otherwise had jurisdiction; non-compliance may be an error but not a jurisdictional voidness.
  2. The court acknowledged that a later larger Full Bench in Kesava Bhat disagreed with the Alavi Full Bench on that proposition, but noted that earlier Full Bench authority had also followed Alavi (as in Karthiyayani v. Pappu).
  3. The court observed that under the statutory scheme S.125(5) requires the civil court to accept the Land Tribunal's finding on the referred question and proceed to decide the suit accordingly; sub-section (6) treats the Tribunal's decision as part of the civil court's finding for appeal purposes. Thus the jurisdiction to decide the case remains with the civil court, and appeals are governed by the Code of Civil Procedure.
  4. The court relied on the Supreme Court decision in Noor Mohd. Khan v. Fakirappa to reinforce that appellate courts must consider the correctness of issues decided by the Tribunal and that the jurisdiction of civil courts (including appellate review) is not entirely barred by a scheme of references to revenue/land tribunals.

Applying these authorities to the present case, the court concluded that because the lower appellate court examined the question of tenancy without objection by the appellant (and, the opinion suggests, presumably at his behest), the appellant could not now contend in this Court that non-compliance with S.125(3) rendered the lower appellate decision null and void. The court emphasized the statutory mechanism by which a Land Tribunal's finding, once accepted by a civil court, becomes part of the civil court's finding for appeal purposes, thereby preserving appellate jurisdiction.

On the merits, the court considered the lower appellate court's factual finding that Ext. A1 otti transaction was executed before the expiry of the term fixed in Ext. A2 and that accounts had not been settled according to Ext. A2 when Ext. A1 was entered into. The court observed these facts as sufficient to conclude that by entering into Ext. A1 the lessee did not intend to give up rights under the lease. The court sustained the lower appellate court's finding that Ext. A2 lease subsists.

The court expressly refrained from deciding the separate issue raised in CRP No. 618 of 1977 as to whether Ext. A1 is a usufructuary mortgage or a tenancy: it set aside the construction placed on Ext. A1 by both courts below and left that question open.

Holding and Implications

Holding:

  • CRP No. 470 of 1977 and C.M.A. No. 32 of 1977 are dismissed.
  • CRP No. 618 of 1977 is disposed of to the limited extent indicated in the opinion (the court refrained from deciding whether Ext. A1 is a usufructuary mortgage or a tenancy and left that question open).

Implications / Consequences:

  • The lower appellate court's finding that Ext. A2 lease subsists despite Ext. A1 is confirmed.
  • Accordingly, the respondent in CRP No. 470 of 1977 (and the respondent before the lower courts) is held to be occupying the property under the Ext. A2 lease and is entitled to the fixity of tenure under the Kerala Land Reforms Act, 1963; that decision is confirmed.
  • The court declined to rule on whether Ext. A1 constituted a usufructuary mortgage or a tenancy; that question remains open for determination.
  • There is no order as to costs in respect of CRP No. 470 of 1977, C.M.A. No. 32 of 1977, and CRP No. 618 of 1977 (the opinion states there shall be no order as regards costs).

Note: This summary is strictly confined to the content and rulings contained in the provided opinion. No additional facts, inferences, or external commentary have been added.

Show all summary ...

1. While the disputed property was in the possession of the respondents in C.M.A No. 32 of 1977 under Ext. A2 lease deed dated 9-2-1116 M.E, the lessor executed Ext. A1 otti deed dated 3-6-1123 in favour of the lessee in respect of the same property Alleging that Ext. A1 evidences a possessory mortgage, the mortgagor's son sought to redeem the said mortgage by invoking S. 11(5) of the Kerala Agriculturists' Debt Relief Act, 1970 (Act 11 of 1970). The counter petitioners therein raised two contentions in the alternative, namely, that Ext. A2 lease subsists despite Ext. A1 otti transaction; and at any rate, Ext. A1 otti transaction evidences a tenancy arrangement. The trial court upheld both the contentions mentioned above and consequently dismissed the application filed under S. 11(5) of the aforesaid Act. The applicant before the trial court preferred an appeal before the lower appellate court. That appeal too was dismissed. The lower appellate court held that though Ext. A1 does not evidence a tenancy arrangement, Ext. A2 lease subsists despite Ext. A1 transaction. On that basis the lower appellate court held that the respondent before the trial court as also before the appellate court is holding the property as a tenant. The defeated applicant before the trial court has preferred CRP. No. 470 of 1977 and CMA. No. 32 of 1977 against the order dismissing his application under S. 11(5) of the Act by both the lower courts. The 1st respondent in those proceedings has preferred CRP. No. 618 of 1977 questioning the finding entered by the lower appellate court that Ext. A1 evidences a usufructuary mortgage and not a tenancy arrangement.

2. The main contention advanced on behalf of the applicant under S. 11(5) of the Act, that is to say the revision petitioner in CRP. No. 470 of 1977 who is the appellant in CMA. No. 32 of 1977 and the respondents CRP. No. 618 of 1977 is that the application under S. 11(5) of the Act was filed on 16-3-1972 and that therefore the question of tenancy raised by the opposite party should have been referred to the concerned Land Tribunal under S. 125(3) of the Kerala Land Reforms Act, 1963. It is contended that no such reference was made by the trial court and that therefore the decision of the trial court as confirmed by the appellate court is null and void. The learned counsel for the revision petitioner in CRP. No. 470 of 1977 seeks to support the submission as aforesaid relying on the Full Bench decision of this Court in Kesava Bhat v. Subraya Bhat (1979 KLT. 766) (F.B).

3. In Alavi v. Radha Varasyaramma (1976 KLT. 691) (FB) a Full Bench of this Court said as follows:

“A judgment or order of a court in suit or other proceeding passed without compliance with the provisions of S. 125(3), (4) and (5) is not a nullity and it cannot be ignored as void. Non-compliance with a provision of law relating to procedure to be adopted by a court may render the decision erroneous in law. But the decision does not become void for that reason if otherwise the court was competent to try the suit. A court would be competent to entertain and dispose of the suit if it had jurisdiction over the subject-matter and the parties to the case……………………………………. When, for the first time, the objection that the decision of the trial court should have been reached after reference to the Tribunal is taken in Second Appeal, this court is not called upon to reopen the decisions of the court below in order to enable the trial court to refer the matter to the Land Tribunal.”

4. In Kesava Bhat v. Subraya Bhat (1979 KLT. 766) (FB) a larger Full Bench considered the correctness of the propositions laid down in Alavi v. Radha Varasyaramma (1976 KLT. 691) (FB). The larger Full Bench did not agree with the view of the earlier Full Bench to the effect that the question involved is one of procedure only and the decision arrived at on a matter that requires to be referred to a Land Tribunal under S. 125(3) of the Kerala Land Reforms Act without compliance therewith is only vitiated by irregularity. On the second aspect, namely whether such a question can be taken before the second appellate court after the question has been examined by the lower appellate court, the larger Full Bench said that they are not pronouncing thereon. (See paragraph 13 at page 784 of 1979 KLT. 766).

5. It is necessary to point out that earlier to the larger Full Bench decision another Full Bench had followed the Full Bench decision in Alavi v. Radha Varasyaramma (1976 KLT. 691) where this Court said as follows:

“If the point was taken at least before the appellate court, the appellate court may, in given circumstances, set aside the decree of the trial court and remit the case to the trial court for compliance with S. 125(3). However, it is not obligatory on the part of the appellate court to do so. It has full powers to decide the question itself. This is clear from sub-section (6) of S. 125 of the Kerala Land Reforms Act. If no point had been taken before the appellate court that S. 125(3) had not been complied with by the trial court, the point ought not to be permitted to be taken in the second appeal for the first time. In cases where the point had been taken before the appellate court, but had not been accepted by the appellate court, the question might arise before the second appellate court whether the decision of the first appellate court not to remit the case to the trial court to enable the trial court to make a reference to the Land Tribunal was a just and proper decision in the circumstances of the case.” (See Karthiyayani v. Pappu, ILR. 1980 (1) Kerala 667 (F.B).

6. The aforesaid pronouncements are binding upon me. I should therefore hold that in so far as the lower appellate court has examined the question of tenancy without objection thereto by the appellant therein and presumably at his behest, he cannot be allowed to contend in this Court that because of non-compliance with S. 125(3) of the Kerala Land Reforms Act, 1963 the decision of the lower appellate court is null and void. In this connection it is necessary to point out that under the scheme of the Act the Land Tribunal's finding obtained on a reference under S. 125(3) is, under Sub-section (5) of that Section to be accepted by the Civil Court. That sub-section says that the civil court shall then proceed to decide the suit or other proceedings accepting the decision of the Land Tribunal on the question referred to it. Thereafter sub-section (6) of S. 125 of the Kerala Land Reforms Act proceeds to say that the decision of the Land Tribunal on the question referred to it shall, for the purposes of appeal, be deemed to be part of the finding of the civil court. It should be noticed that the jurisdiction to decide the case is still vested in the civil court though under sub-section (3) of S. 125 the jurisdiction of the civil court to decide “any question regarding rights of a tenant or of a kudikidappukaran (including a question as to whether a person is a tenant or a kudikidappukaran)” arising in the case has been taken away from the civil court. In other words the ultimate decision of the case itself on obtaining an answer to the question referred to the Land Tribunal, no doubt accepting the answer of the Land Tribunal to the reference, is by the civil court itself. The appeal therefrom is governed by the provisions of the Code of Civil Procedure, 1908. It is with reference to such an appeal that sub-s. (6) of S. 125 says that the decision of the Land Tribunal which has been accepted by the civil court would for the purposes of that appeal be deemed to be part of the finding of the civil court. The appellate court has certainly jurisdiction to go into all questions arising in the appeal and relating to the findings impugned before that court.

7. I am fortified in the view taken in the preceding paragraph by the decision of the Supreme Court in Noor Mohd. Khan v. Fakirappa ((1978) 3 SCC 188 : A.I.R 1978 S.C 1217) which concerned a provision in the Karnataka Land Reforms Act similar to S. 125 of the Kerala Land Reforms Act 1963. The Supreme Court said as follows:

“In the absence of express provision, when an issue has been referred by the Civil Court to the Tribunal and is received back and a decree passed in the suit, the provision of the Civil Procedure regarding appeals and revisions will be applicable. In such circumstance the Appellate Court will have to consider the correctness or otherwise of the issue that has been decided by the Tribunal”. (Paragraph 31)

8. and proceeded to point out:

“The High Court ought to have also considered whether any restriction on the jurisdiction of the Civil Courts placed under the Act is applicable to the High Court also. The jurisdiction of the Civil Courts is not entirely barred as the Act only provides for reference of certain issues for decision before the Revenue Tribunal and after receipt of the finding on such issues to record a judgment on such finding. The appeal to the Civil Courts according to the Civil P.C and the jurisdiction of the High Court in hearing appeals and revisions under certain circumstances have not been excluded.”

9. In view of what is stated above there is no merit in the contention advanced on behalf of the revision petitioner in CRP. No. 470 of 1977 (the appellant in C.M.A No. 32 of 1977) that in so far as the trial court has not complied with S. 125(3) of the Kerala Land Reforms Act, 1963, the decision of the lower appellate court impugned herein is without any jurisdiction and is void.

10. On the merits it was contended that the finding entered by the lower appellate court that Ext. A2 lease of 1116 subsists is not sustainable. The lower appellate court pointed out that Ext. A1 otti transaction was executed before the expiry of the term fixed in Ext. A2 and that accounts have not been settled in accordance with the terms of Ext. A2 lease when Ext. AI otti transaction was entered into between the parties. These are sufficient grounds to come to the conclusion that by entering into Ext. A1 otti transaction the lessee did not intend to give up his rights under the lease transaction. The finding as aforesaid to be sustained and I do so.

11. In the view taken as aforesaid it is not necessary to consider the question arising in CRP. No. 618 of 1977 preferred by the respondent in the proceedings before the trial court impugning the finding entered by the lower appellate court that Ext. Al evidences a usufructuary mortgage and not a tenancy. I refrain from doing so and I leave that question open. The construction placed on Ext. A1 by both the courts below is set aside and the question is left open. Having confirmed the finding that Ext. A2 lease transaction subsists and that the respondent in CRP. No. 470 of 1977 is holding the property under that lease deed, it goes without saying that the lower court rightly held that the respondent in the said Civil Revision Petition is entitled to the fixity of tenure under the Kerala Land Reforms Act, 1963. The decision to that effect is confirmed.

12. In the result CRP. No. 470 of 1977 and C.M.A No. 32 of 1977 are dismissed, but without any order as regards costs. CRP. No. 618 of 1977 is disposed of as above allowing the same to the limited extent indicated hereinbefore. There shall be no order as regards costs.

Kerala Land Reforms Act, 1963.