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R.B.K.N Singh v. Harkhu
Structured Summary of the Opinion (Letters Patent Appeal)
Factual and Procedural Background
The plaintiff is the proprietor of the Ramgarh Raj; the Court of Wards took over management of the estate in 1913 and restored it to the plaintiff when he attained majority in 1937. The ancestors of the defendant held the village Lowlang in mukarrari under the Raj. After the death of the mukarraridar without male issue, the Court of Wards' manager, on behalf of the Raj, sued to resume the village and claimed Rs. 1,639 as mesne profits for the period between the death and the institution of the suit. The present defendant, as heir, entered a defence; the suit was decreed ex parte and the defendant satisfied the claim for mesne profits.
Subsequently, the manager settled with the defendant 20.36 acres of zirat land in khatas 1, 2 and 28 of Lowlang on an annual rental of Rs. 35-15-0. The plaintiff instituted the suit that gave rise to this appeal to recover that land. The plaintiff succeeded in the first Court except in respect of part of a mesne-profits claim; on appeal by the defendant the suit was dismissed; a further appeal to this Court (the present appeal under the Letters Patent) was dismissed.
Legal Issues Presented
- Whether the settlement of zirat land by the manager of the Court of Wards was void for lack of authority in the manager to create a new holding (i.e., whether the manager had power to create a new holding in zirat lands without the sanction of the Court of Wards).
- If the settlement was void, whether the defendant nevertheless acquired a statutory right of occupancy under the Chota Nagpur Tenancy Act (section 19 read with section 43), which would operate as a bar to eviction by the plaintiff.
Arguments of the Parties
Appellant (Plaintiff)'s Arguments
- The plaintiff contended that the Court of Wards had delegated to the manager the power to grant leases which the Court itself possessed under section 18 of the Court of Wards Act; that delegation was effected by rules framed under section 70 of the Act (specifically rule 72 in the Rules as they then stood), and thus the manager had authority to make the settlement.
- The plaintiff maintained that, if the status of the defendant was that of a tenant from year to year, the defendant nonetheless was holding under a lease for a period of one year within the meaning of section 43(a) of the Chota Nagpur Tenancy Act, and thus could be barred from acquiring occupancy rights.
Respondent (Defendant)'s Arguments
- The defendant relied on the finding below that the settlement was not vitiated by mala fides on the part of the manager.
- The defendant contended that there was no evidence that the lands in dispute were landlords' privileged lands within the meaning of section 118(a) of the Chota Nagpur Tenancy Act (and thus that section 43(a) would not apply to bar occupancy).
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Kamakshya Narain Singh v. Kheya Mian | Interpretation of the old rule (rule 72) as applying only to raiyati land; distinction between zirat and bakasht land in relation to settlement and registration. | The court relied on this case to support the view that the rule delegating powers to the manager was confined to raiyati holdings and did not authorize creation of new holdings in zirat land; the case also illustrated that a settlement of zirat land by an unregistered lease could be bad for want of registration, whereas settlement of bakasht (temporarily raiyati-in-possession) might be upheld. |
| Rabindra Chandra Ghosh v. Mahtha Gauri Singh | When a person enters possession under a void lease, acceptance of rent by the landlord (and payment) converts the relationship into a tenancy from year to year (tenant from year to year arises from acceptance of rent under a void lease). | The court applied this principle to hold that, because the plaintiff continued proceedings to realize arrears under the Public Demands Recovery Act and realized rent in execution of a certificate, the plaintiff must be taken to have accepted rent from the defendant; consequently the defendant became a tenant from year to year under the terms of the (void) lease. |
| Bowen v. Anderson | Definition and character of a lease from year to year as a periodic lease of uncertain duration (a lease continuing from period to period, not a lease for a definite period of one year). | The court used this authority to support the conclusion that a lease from year to year is not a lease for a period of one year or less within the meaning of section 43(a) of the Chota Nagpur Tenancy Act. |
| Legg v. Strucwick | Characterization of the interest of a tenant from year to year as one of one year certain with a growing interest thereafter (i.e., not a lease for a period of one year). | The court relied on this principle together with Bowen v. Anderson to conclude that the defendant's status as a tenant from year to year did not amount to holding under "a lease, written or oral, for a period of one year or less" within section 43(a), so that section 43(a) did not bar acquisition of occupancy rights. |
Court's Reasoning and Analysis
The court proceeded in two main analytical stages, applying statutory provisions, rules and precedent strictly as stated in the opinion.
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Authority of the manager under the Court of Wards Act and Rules:
The court examined the Court of Wards Act provisions relied on: section 14 (general power of manager to do things requisite for proper care and management); section 15 (power may be exercised through Commissioners, Collectors or other persons and powers may be delegated); section 18 (power to sanction giving of leases or farms); and section 39 (manager has power to manage property, collect rents and, under orders of the Court, grant or renew leases and farms).
Crucially, section 39's power to grant or renew leases is subject to the order of the Court; in the present case no sanction or order of the Court of Wards was shown to have been given for the settlement. The plaintiff argued that the Court of Wards had delegated the power under section 18 to the manager by rules made under section 70, specifically rule 72 as it then read.
The court analyzed rule 72 (the old form) which on its face delegated power "Under section 18, to sanction settlements or re-settlements of raiyats' holdings either at higher or lower rents than were paid previously… when the rental of each holding so settled or re-settled does not exceed Rs. 50." The court read the rule as prima facie confined to existing raiyati holdings (supported by the phrase "either at higher or lower rents than were paid previously") and not as authority to create new holdings in zirat land. The later amendment (in 1926) broadened the rule to refer expressly to creation of holdings, but that amendment post-dated the defendant's settlement.
On this textual and contextual basis the court concluded that, under the relevant Act provisions and the old Rules as they stood at the time of the settlement, the manager had no power to create a new holding in zirat lands without the sanction of the Court of Wards. Therefore, insofar as the manager purported to create a new zirat holding in the present case, that settlement was not binding on the plaintiff.
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Whether defendant acquired occupancy rights despite the invalid settlement:
The court then considered the Chota Nagpur Tenancy Act. Section 19 grants a settled raiyat a right of occupancy in land held by him as a raiyat subject to the provisions of section 43. Section 43(a) carves out an exception: a right of occupancy shall not be acquired in landlords' privileged lands (section 118(a)) when they are held on (i) a registered lease for a term exceeding one year, or (ii) a lease, written or oral, for a period of one year or less.
The court accepted the 1910 record-of-rights entry that the lands were landlords' privileged lands (a presumption of correctness attaches to that entry), so the applicability of section 43(a) depended on whether the defendant's possession was under one of the kinds of lease described there.
Because the settlement was void for want of authority, the defendant was not holding under a registered lease for a term exceeding one year. The court then applied the established principle from Rabindra Chandra Ghosh v. Mahtha Gauri Singh that where a person enters into possession under a void lease and pays (and the landlord accepts) rent, the legal effect is that a new tenancy is created which is similar to the original tenancy except as to duration: the person becomes a tenant from year to year.
Here, the plaintiff continued proceedings pending at restoration for realization of arrears under the Public Demands Recovery Act and realized rent in execution of a certificate. The court held that by doing so the plaintiff must be taken to have accepted rent from the defendant (the plaintiff could have withdrawn proceedings or refused to accept the rent but did not), and therefore the defendant became a tenant from year to year.
Finally, the court analyzed whether a tenant from year to year is holding under "a lease, written or oral, for a period of one year or less." Relying on Bowen v. Anderson and Legg v. Strucwick, the court stated that a lease from year to year is a periodic lease of uncertain duration (continuing from period to period) and is not a lease for a definite period of one year; a tenant from year to year has an interest for one year certain with a growing interest thereafter. Consequently a year-to-year tenancy is not a lease "for a period of one year or less" within section 43(a).
Thus section 43(a) did not bar acquisition of occupancy rights in the disputed lands. Given that the defendant was a settled raiyat, the court held that he had acquired a right of occupancy.
Holding and Implications
Holding: The appeal is DISMISSED WITH COSTS.
Implications:
- Because the manager of the Court of Wards had no power under the Act and the old Rules to create a new holding in zirat land without the sanction of the Court of Wards, the settlement by the manager creating such a holding was not binding on the plaintiff.
- Despite the invalidity of the settlement, the defendant acquired a statutory right of occupancy in the disputed land: the defendant was a settled raiyat, the lands were entered as landlords' privileged lands in the 1910 record-of-rights, and the defendant became a tenant from year to year by virtue of rent having been realized by the plaintiff under certificate proceedings — a year-to-year tenancy does not fall within the exclusion in section 43(a). Consequently, the plaintiff cannot evict the defendant on the basis of the manager's settlement and the defendant's occupancy-rights prevail.
- The opinion concludes with dismissal of the appeal and costs; the Court did not indicate that it was announcing any novel legal principle beyond application of the cited statutes, rules and authorities to the facts (i.e., no assertion in the opinion that a new precedent was established beyond the decision in this case).
Concurring opinion: Meredith, J. agreed with the result ("I agree"). The formal disposition recorded: "Appeal dismissed."
Agarwala, C.J:— This is an appeal by the plaintiff under the Letters Patent from a decision of Ray, J. Plaintiff is the proprietor of the Ramgarh Raj, the management of which was taken over by the Court of Wards in 1913 in the time of his grandfather. It was restored to the plaintiff on his attaining majority in 1937.
The ancestors of the defendant held village Lowlang in mukarrari under the Raj, After the death of the then mukarraridar without male issue, the Court of Wards' manager, on behalf of the Raj, sued to resume the village. He also claimed Rs. 1,639 as mesne profits between the date of the death of the last mukarraridar and the institution of the suit. The present defendant, as heir of the last mukarraridar, alone entered a defence. The suit was decreed ex-parte and the present defendant satisfied the claim for mesne profits. The manager then settled with him 20.36 acres of zirat land in khatas 1, 2 and 28 of the Lowlang on an annual rental of Rs. 35-15-0. The suit out of which this appeal has arisen was instituted for recovery of this land. It succeeded in the first Court except with regard to a part of the claim for mesne profits. On appeal by the defendant the suit was dismissed. Thereafter, the plaintiff preferred a second appeal to this Court, which was dismissed.
The Court below having found that the settlement with the defendant was not vitiated by reason of any mala fide on the part of the manager of the Court of Wards, the first question that falls for consideration is whether the settlement with the defendant was void by reason of lack of authority in the manager to make it. This requires a consideration of certain provisions of the Court of Wards Act and the rules framed under it. Section 14 of the Act empowers the Court of Wards (which, by definition, means the Board of Revenue) through its manager to do all things requisite for the proper care and management of any property, of which it may take or retain charge under the Act. Section 15 empowers the Court to exercise the power conferred on it by the Act
“through the Commissioner of the Divisions and Collectors of the districts, in which any part of the property of the disqualified proprietor may be situated, or through any other person whom it may appoint for the purpose.”
By the same section the Court of Wards is also authorized to delegate any of its powers to such Commissioners or Collectors or other persons as aforesaid. The manager appointed by the Court of Wards is “any other person” for the purposes of this section. By section 18 the Court of Wards is empowered to sanction the giving of leases or farms of the whole or part of any property under its charge. Apart from the general power conferred on the manager by section 14
“to do all such things requisite for the proper care and management of the property”,
section 39 provides that
“Every, manager, appointed by the Court shall have power to manage all property which may be committed to his charge, to collect the rents of the land entrusted to him, as well as all other money due to the ward, and to grant receipts therefor, and may under the orders of the Court, grant or renew such leases and farms as may be necessary for the good management of the property.”
The power of granting or renewing leases under this section, it will be observed, is subject to the order of the Court. In the present case it has not been shewn that the Court of Wards ordered or sanctioned the settlement of the land in dispute with the defendant. If, therefore, the validity of the settlement depended on the powers conferred on the manager under section 39, it would undoubtedly be void. It is, however, contended on behalf of the plaintiff that the Court of Wards delegated to the manager the power of granting leases which the Court itself possessed by virtue of the provisions of section 18. This delegation, it is argued, is affected by the rules framed by the Court of Wards in exercise of the powers conferred on it by section 70 of the Act. That section empowers the Court to make rules consistent with the Act inter alia for the better fulfilment of the purposes of the Act. The particular rule relied upon for this purpose is rule 72 which occurs in Section III of the Rules. This section enumerates the powers which the Court has delegated to the manager under section 15 of the Act. Rule 72, as it stood at the time that this land was settled with the defendant, was as follows:
“Under section 18, to sanction settlements or re-settlements of raiyats' holdings either at higher or lower rents than were paid previously…………when the rental of each holding so settled or re-settled does not exceed Rs. 50.”
Prima facie this rule merely delegates to the manager the power to settle or re-settle raiyati holdings when the rental of the holding does not exceed Rs. 50. It does not delegate to the manager the power to create new holdings in zirat land. This view of the rule, namely, that the manager's delegated powers are confined to existing holdings, and does not include the power to create a new holding, is supported by the words “either at higher or lower rents than were paid previously.” This rule, however, was amended later, on the 15th of July, 1926, that is to say, three years after the defendant's settlement (and has since been re-numbered as rule 65). It now Stands as follows:
“Under section 18 to sanction the creation of occupancy or non-occupancy holdings or the re-settlement of holdings with occupancy or non-occupancy raiyats at higher or lower rents than were paid previously……………when the rental of the holding so created or re-settled does not exceed Rs. 50.”
In the rule as it now stands the words “at higher or lower rents than were paid previously” can refer only to cases of re-settlement and not to cases of the creation of a new holding. But those words in the former rule 72 appear to apply both to cases-in which land is settled and to cases in which it is re-settled. This rule, moreover, applies only to raiyati land as was held in the case of the old rule in Kamakshya Narain Singh v. Kheya Mian. With regard to that case, however, it is pointed out on behalf of the defendant that, although a settlement of zirat land by an unregistered lease was held to be bad for want of registration, the settlement of bakasht land was upheld. The reason for that, however, is obvious. Bakasht lands are raiyati lands for the time being in the possession of the landlord. They do not cease to be raiyati lands merely because the landlord has purchased the raiyati interests. Rule 228 is also relevant to this view. That rule provides that ordinarily landlords, privileged lands shall be settled only for a year at a time. Thereby it is implied that they should not be settled on such terms as to deprive the proprietor permanently of them as would be the case if they were settled with a settled raiyat of the village otherwise than as provided by section 43 of the Chota Nagpur Tenancy Act. This rule, which indicates the policy of the Court of Wards not to convert zirat lands into raiyati lands, will not, however, prevent that result in all cases.
I am satisfied, on a consideration of the relevant provisions of the Act and the old Rules, that the manager had no power to create a new holding in zirat lands without the sanction of the Court of Wards, and, therefore, in so far as the manager purported to do so in the present, case, the settlement is not binding on the plaintiff. But that is not the end of the matter. It still has to be considered whether, apart from the settlement, the defendant has acquired any statutory right which operates as a bar to his eviction by the plaintiff.
It is not disputed that the defendant is a settled raiyat of the village. Section 19 of the Chota Nagpur Tenancy Act, which occurs in Chapter IV, provides:
“Every person who is a settled raiyat of a village…………shall subject to the provisions of section 43, have a right of occupancy inall land for the time being held by him as a raiyat in that village.”
Section 43 provides:
“Notwithstanding anything contained in. Chapter IV, a right of occupancy shall not be acquired in, …………
(a) landlords' privileged lands referred to in clause (a) of section 118, when they are held by a tenant on a registered lease for a term exceeding one year or on a lease, written or oral, for a period of one year or less.”
In order to bar the acquisition of occupancy rights, therefore, it is necessary to show: (1) that the lands are landlords' privileged lands within the meaning of section 118(a); (2) either that they are held on a registered lease for a term exceeding one year; or (3) that they are held on a lease, written or oral, for a period of one year or less. It was contended on behalf of the defendant that there is no evidence that the lands in dispute are landlords' privileged lands within the meaning of section 118(a), which occurs in Chanter 14 of the Act. The heading of this Chapter is: “Record of landlords' Privileged Lands”. Section 119 provides:
“The Provincial Government may, by notification, direct a Revenue Officer to make a survey and record of all lands in any specified local area which are landlords' privileged lands within the meaning of clause (a) of section 118.”
In the record-of-rights of 1910 the lands in suit were entered as landlords' privileged lands, and there is a presumption of correctness attaching to that entry. We must, therefore, take it in the present case that these lands are landlords' privileged lands within the meaning of section 118(a), and that, therefore, occupancy rights cannot be acquired in them if they are held on the conditions prescribed by section 43(a). The defendant is not holding under a registered lease for a term exceeding one year for, in the, view which I take, the settlement by the manager was void. It is now settled, however, that when a person enters into possession of land under a void lease he is not a trespasser, but a tenant-at-will under the terms of the lease in all other respects except the duration of time, and that when he pays or agrees to pay the rent therein expressed to be reserved, he becomes a tenant from year to year upon the terms of the void lease so far as they are applicable to and not inconsistent with, the yearly tenancy—Rabindra Chandra Ghosh v. Mahtha Gauri Singh. The facts of that case were that a certain village was granted by way of khorposh, the grant being terminable on the extinction of the male line of the grantee, as in the present case. The latter granted a mukarrari of one of the villages, which was the subject-matter of the grant, to the predecessor-in-interest of the defendants about forty years after the death of the original grantee. The plaintiffs, who were the proprieors and successors of the grantor, sued to eject the defendants, having in the meanwhile accepted rent from them. It was held that the effect in law of the payment of rent by the defendants to the plaintiffs and its acceptance by the latter was that a new tenancy was created, which was similar in all other respects to the original tenancy of the defendants under the grantee, except as to the duration of time, with the result that the defendants became tenants from year to year, under the plaintiffs. It has been denied that the present plaintiff accepted rent from the defendants. It appears, however, that at the time when the estate was restored to the plaintiff a proceeding was pending for the realisation of arrears of rent in the Court of Certificate Officer under the Public Demands Recovery Act. The plaintiff continued those proceedings and realized the rent in execution of the certificate that was issued. In these circumstances, it must be held that the plaintiff accepted rent from the defendant, for, if he wished to repudiate the defendant's tenancy, he could have withdrawn the certificate proceedings or refused to accept the rent that was awarded in those proceedings.
It now remains to consider whether the defendant holds on a “lease, written or oral, for a period of one year or less.” It has been contended on behalf of the plaintiff that even if the status of the defendant be that of a tenant from year to year, he is holding under the lease for a period of one year. A lease from year to year, however is a periodic lease which continues from period to period—Bowen v. Anderson. Such a lease is one of uncertain duration which does not purport to be for any definite period as the interest of the lessees does not terminate at the end of the period. A tenant from year to year has an interest for one year certain with a growing interest during every year thereafter springing out of the original contract and as parcel of it—Legg. v. Strucwick. The status of the defendant, therefore, is not that of a lessee for a period of one year or less within the meaning of section 43(a). That section, therefore, does not bar him from acquiring a right of occupancy in the disputed land, and he, being a settled raiyat of the village, must be held to have acquired such a right. It is significant to observe that, prior to its amendment in 1920, in section 43(a) for the words “a lease, written or oral, for a period of one year or less”, the words were “a lease year by year.” In that respect the language of the original Chotanagpur Tenancy Act was similar to the language of the corresponding section of the Bihar Tenancy Act which has not been altered, in the Chotanagpur Tenancy Act, however, the section has been altered as indicated.
The result, therefore, is that the appeal is dismissed with costs.
Meredith, J.:— I agree.
S.H
Appeal dismissed.
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