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  • WEST BENGAL ESTATES ACQUISITION ACT
  • section 8 of Ajmer Abolition of Intermediaries and Land Reforms Act,
  • section 2 of the West Bengal Estates Acquisition (Amendment) Act, 1954
  • sub-section (1) and (2) of Section 5A,
  • section 6(1) of E.A Act.4.
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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • WEST BENGAL ESTATES ACQUISITION ACT
  • section 8 of Ajmer Abolition of Intermediaries and Land Reforms Act,
  • section 2 of the West Bengal Estates Acquisition (Amendment) Act, 1954
  • sub-section (1) and (2) of Section 5A,
  • section 6(1) of E.A Act.4.
Smart Summary

Structured Summary of the Provided Opinion

Factual and Procedural Background

The petitioners were raiyats whose raiyati interests vested in the State Government when Chapter VI of the West Bengal Estates Acquisition Act (the Act) came into force on April 10, 1956. Prior to vesting, and even prior to the commencement of most of the Act, the petitioners transferred several plots to opposite parties (nos. 3–5): on June 2, 1953 two transfers (to Gulnehernessa Bibi and to Pagal Ghosh) and on July 8, 1953 a transfer to Jogendra Nath Saha. After vesting, the petitioners exercised their option under section 6 of the Act to retain certain lands.

The Assistant Settlement Officer (opposite party No. 2), exercising powers under section 5A of the Act, held that the area of lands conveyed by the petitioners should be deducted from the acreage they were permitted to retain. The order recorded details of the registered deeds and concluded that the transfers were to persons with whom the transferors had no relationship and that the transferors were "big raiyats" who held land beyond the ceiling; accordingly, the amount of land transferred would be deducted from lands they had retained under section 6(1).

The petitioners challenged the propriety of that order by way of the present Rule. The court heard arguments and delivered the judgment reproduced in the provided opinion.

Legal Issues Presented

  1. Whether the second part of section 5A (sub-section (3)) of the West Bengal Estates Acquisition Act is invalid as "colourable legislation" (i.e., beyond legislative competency or disguised legislation).
  2. Whether the second part of section 5A constitutes compulsory acquisition not for a public purpose and without compensation, thereby attracting Article 31(2) and being outside the protection of Article 31A.
  3. Whether sub-section (3) of section 5A creates an unreasonable classification subjecting intermediaries to restrictions that violate fundamental rights (notably Article 14 and Article 19).
  4. Whether the second part of section 5A is an integral provision sub-serving the main purpose of the Act and therefore protected by Article 31A(1).
  5. Whether the provisions of section 5A apply to raiyats and under-raiyats by virtue of section 52 of the Act.

Arguments of the Parties

Arguments advanced by Mr. Chandra Nath Mukherjee for the petitioners

  • He characterised the second part of section 5A (sub-section (3)) as a colourable piece of legislation — implicitly arguing it exceeded legislative competence or disguised an improper object.
  • He submitted that, even if not colourable, the provision was hit by Article 31(2) as amounting to compulsory acquisition not for a public purpose and without compensation, and that it was not saved by Article 31A.
  • He argued that the second part introduced an unreasonable classification by subjecting all intermediaries (whether their transfers were bona fide or not) to limitations on retention, thereby violating principles of reasonable classification and fundamental rights.
  • He contended that the second part did not sub-serve the main purpose of the Act and therefore was not an integral part of the Act; consequently it should not be protected under Article 31A(1).

The opinion does not set out in comparable detail any affirmative submissions by the State or by opposite parties beyond the administrative order quoted from the Assistant Settlement Officer.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gajapati Narayan Deo v. State of Orissa (A.I.R. 1953 S.C. 375) Definition and doctrine of "colourable legislation" — that the doctrine concerns whether a legislature has transgressed constitutional limits, including disguised or covert transgressions. The court invoked this authority to explain the colourable legislation doctrine and to assess Mr. Mukherjee's contention. The court concluded that the West Bengal Legislature had competency to enact the Act, and therefore the impugned provision was not colourable legislation in the sense of lacking legislative competence.
Gullapalli Nageswara Rao v. Andhra Pradesh State Road Transport Corporation (A.I.R. 1959 S.C. 308) Supportive authority on the same doctrine (colourable legislation) and on analysis of legislative competence and limits. Used in conjunction with Gajapati Narayan Deo to reinforce that the impugned provision did not amount to colourable legislation because the State legislature possessed competence to enact the measure.
Raghubir Singh v. State of Ajmer (A.I.R. 1959 S.C. 475) An observation that ancillary provisions, enacted to carry out the objects of a land reform statute, can be integral to the Act and thus protected by Article 31A(1) where they sub-serve the Act's purposes (example concerned cancellation of leases designed to defraud the Act). The court relied on Wanchoo, J.'s observation to accept that provisions cancelling mala fide transfers (sub-sections (1) and (2) of s.5A) can be ancillary and integral and thus protected by Article 31A. The court distinguished that authority when considering sub-section (3) (bona fide transfers), acknowledging the observation's cogency for mala fide transfers but noting the difficulty in justifying adverse consequences for bona fide transfers.

Court's Reasoning and Analysis

The court structured its analysis around the two distinct parts of section 5A:

  1. Identification of the two parts of section 5A:
    • The "first part" (sub-sections (1) and (2)) empowers the State, after enquiry, to cancel transfers made between May 5, 1953 and the date of vesting if they are not bona fide; cancellation is retrospective to the date of transfer.
    • The "second part" (sub-section (3)) provides that if a transfer is found bona fide, the land shall be deemed to be transferee's land for purposes of the Act, and, crucially, if the transferee retains land, that retained land may be taken into account when calculating the transferor's retention under section 6, "as if" the land had never been transferred.
  2. Colourable legislation argument:

    The court explained the doctrine of colourable legislation with reference to Gajapati Narayan Deo and Gullapalli and observed that the petitioner's counsel did not dispute the legislative competency of the West Bengal Legislature to enact the Act. Because the legislature had the requisite competence, the enactment was not colourable in the sense of being beyond power. Thus the colourable legislation challenge failed.

  3. Article 31(2) / Article 31A challenge:

    Mr. Mukherjee argued the second part of section 5A was a form of compulsory acquisition not for public purpose and without compensation and therefore outside protection. The court examined Article 31A, noting that it saves laws providing for acquisition or modification of rights in estates from invalidation on grounds of inconsistency with Articles 14, 19 and 31. The court concluded that Article 31A applies to the West Bengal Estates Acquisition Act and that section 5A, being inserted in the main Act for restricting certain transfers, falls within Article 31A's saving. The court rejected the submission that section 5A was a provision of compulsory acquisition within Article 31(2) that would fall outside Article 31A.

  4. Unreasonable classification argument:

    The court held that if Article 31A applies, then an argument based on unreasonable classification (i.e., that the provision created an invalid class or discrimination) also fails, because Article 31A renders the provision immune from such criticism in the respects Mr. Mukherjee advanced.

  5. Whether the second part sub-serves the main purpose (integral part) — Article 31A(1) protection:

    The court considered Wanchoo, J.'s observation in Raghubir Singh that ancillary provisions designed to prevent fraud upon the Act may be integral and thus protected by Article 31A(1). The court accepted that this reasoning applies cogently to sub-sections (1) and (2) of section 5A (dealing with mala fide transfers). However, the court acknowledged conceptual difficulty in understanding why bona fide transfers made before vesting ought to attract adverse consequences under sub-section (3). Despite recognising that sub-section (3) might appear "highly illogical and not apparently sub-serving the main purpose of the Act", the court emphasised that if the legislature, acting within its competency, chose to enact such a provision, the court had no power to strike it down on that ground alone. Consequently, the court refused to give effect to the argument that sub-section (3) was not integral and therefore not protected under Article 31A.

  6. Applicability to raiyats under section 52:

    The court noted that section 52 applies various Chapters of the Act "mutatis mutandis" to raiyats and under-raiyats, so that section 5A becomes applicable to raiyati and under-raiyati holdings. The court commented on the tautologous language of section 52 ("with such modifications as may be necessary" followed by "mutatis mutandis") but declined to place weight on that drafting defect for the purposes of the Rule since the point had not been pressed and it was not dispositive.

  7. Conclusion of reasoning:

    Having rejected each principal argument advanced by Mr. Mukherjee (colourable legislation, Article 31(2) challenge, unreasonable classification, and lack of integrality under Article 31A), the court concluded that the Rule challenging the Assistant Settlement Officer's action must be discharged.

Holding and Implications

Holding: The Rule challenging the Assistant Settlement Officer's order was DISCHARGED.

Direct consequences ordered by the court (as given in the opinion):

  • The petition seeking to set aside the decision under section 5A was dismissed (the Rule was discharged).
  • The court made no order as to costs.
  • The operation of the order being challenged was stayed for a period of a fortnight, as prayed for by the petitioner.

Implications:

The decision upholds the application of section 5A (including its second part) as within legislative competence and protected by Article 31A of the Constitution, and confirms that section 5A applies to raiyats by virtue of section 52. The court expressly recognises conceptual difficulties about sub-section (3) (concerning bona fide transfers) but declines to invalidate it where the legislature has acted within its competency. The opinion does not purport to lay down a new legal precedent beyond applying existing authorities; the ruling resolves the instant challenge and the direct effect is the dismissal of the petitioners' Rule with a temporary stay of operation for a fortnight and no costs awarded.

Prepared strictly from the content of the provided opinion. No information beyond that text has been inferred or added.

    Ratnakar Ghosh And Anr. v. State Of West Bengal And Ors. Opposite Parties.

    The Judgment of the Court was as follows:

    2. The petitioners were raiyats in respect of certain agricultural and non-agricultural lands. Their interest as raiyats vested in the State Government, when Chapter VI of the West Bengal Estates Acquisition Act (hereinafter referred to as the Act) came in force on April 10, 1956. Long prior to that date and even prior to the date when the Act (excepting Chapter. VI) came into operation, the petitioners had made transfers of certain plots of land, held by them as raiyats, in fa vour of one or other of the opposite party Nos. 3 to 5, as hereinbelow detailed:—

    (a) On June 2, 1953, the petitioners sold to Gulnehernessa Bibi (opposite party No. 5) plots. Nos. 2463 and 2546 of Mouza Ahiran, in all measuring. 29 acre.

    (b) On June 2, 1953, the petitioners sold to Pagal Ghosh (Opposite Party No. 4) plots Nos. 1563 and 3045 of Mouza Ahiran, in all measuring 1.06 acre.

    (c) On July 8, 1953, the petitioners sold to Jogendra Nath Saha (opposite party No. 3) plots Nos. 413, 436, 560 and 39.0 of Mouza Ahiran, in all measuring 4.03 acre.

    3. After the vesting of their raiyati interest in the State Government, by operation of section 52 read with section 4 of the Act, the petitioners became entitled to retain certain lands as provided in section 6 of the Act.-They exercised their option of retention but the Assistant Settlement Officer. (opposite party No. 2), in exercise of his power under section 5A of the Act, held that the area of lands conveyed by them be deducted from the acreage of land retained by them. The material portion of the order is set out below:—

    “It appears from the Registered kobala deed No. 1888 (of Nimtita S.R Office) executed in favour of Bibi Gulnehar on 2-6-53 that plot No. 2463 of Khatian 324 area ‘24 decimals, plot 2546 Mouza Ahiran. 05 decimals of mouza Ahiran from the deed No. 2315 (of Nimtita S.R Office) executed in favour of Jogendra Nath Saha on 8-7-53 that plot No. 413 Khatian 98.97 acre, 436—.39 acre, 560—1.57 acre, 390—1.10 acre, and from the deed No. 1887 (Nimtita S.R Office) executed in favour of Pagal Ghosh on 2-6-53 that plot No. 1563 Khatian 453—69 dec. of Ahiran 3045 khatian 453—37 dec, total 5.38 were transferred by Sri Rat-nakar and Dhirendra Ghosh. There is no relationship between the transferor and transferee. It appears from the big Raiyat Register that Sree Ratnakar Ghosh holds 40.17 agricultural, 1.59, Non-agricultural,.19 homestead land, and Sree Dhirendra Nath Ghosh holds 30,55 of agricultural, 1.59 of Non-agricultural and 20 decimal of homestead land and have evaded the ceiling.

    The above transfers made to the persons with whom the transferor has no relation and thus all the transfers are bonafide and as the transferors are big raiyats and holds land beyond the ceiling, the amount of land transferred as per above deed will be deducted from the lands, they have retained under section 6(1) of E.A Act.”

    4. The propriety of the order is being disputed in this Rule.

    5. Section 5A was inserted in the Act, with retrospective effect by section 2 of the West Bengal Estates Acquisition (Amendment) Act, 1954 and the material portion of the section is herein-below set out:—

    “(1) The State Government may after the date of vesting enquire into.any case of transfer of any land by an intermediary made between the 5th day of May, 1953 and the date of vesting, if in its option there are prima facie reasons for believing that such transfer was not bona fide.

    (2) If after such enquiry the State Government finds that such transfer was not bona fide, it shall make an order to that effect and thereupon the transfer shall stand cancelled as from the date on which it was made or purported to have been made:

    Provided that, subject to such cancellation, nothing in this subsection shall be deemed to affect any rights which the transferor or the transferee may otherwise have against each other.

    (3) If after such enquiry the State Government finds that the transfer was bona fide, it shall make an order to that effect and thereupon the following consequences shall ensue, namely:—

    (i) the land shall, without prejudice to any rights which the transferor or the transferee may have against each other, be deemed to be the land of the transferee for the purpose of this Act;

    (ii) if any such land or any part thereof is retained by the transferee under the provisions of this Chapter, such land or such part thereof may be taken into account in calculating the land which may be retained by the transferor under this Chapter as if such land or such part thereof had never been transferred and were retained by the transferor or chosen by him as land to be retained by him.”

    6. Under sub-section (1) and (2) of Section 5A, (which I shall hereinafter describe as the first part of the section) the State Government, if prma facie of the opinion, after a statutory enquiry, that any transfer made between May 5, 1953 and the date of vesting is not bona fide, shall make an order to that effect and thereupon such transfers shall stand cancelled as from the date when they were made or purported to have been made. Under sub-section (3) of Section 5A, (which I shall hereinafter describe as second part of the section), even if the State Government finds that a transfer made between the material dates was bdna fide, it shall make an order to that effect and thereupon two consequences will follow:—

    (i) the transferred land shall be deemed to be the land of the transferee for the purposes of the Act, and

    (ii) if such land or any part thereof is retained by the transferee, in calculating the land which may be retained by the transferor, under section 6 of the Act, the transferred land or any part thereof may be taken into account as if such land or such part thereof had never been transferred but was retained by the transferor or was chosen by him as land to be retained by him.

    7. The first part of the section is understandable. Sub-section (7) of section 5A lays down the circumstances under which transfers shall be held not to be bona fide, the object to all intents and purposes being to prevent benami or sham transfers, made with the object of defeating the provision of the Act.

    8. The object behind second part of the section is, however, not clear. Under Art. 19(f) acquisition and disposal of property is a fundamental right guaranteed under the Constitution.

    9. Disposal of property by way of bona fide sale, at a time when the Act had not come into operation, was an unexceptionable act by all known standards. Why then must a person be deprived of his right to retain the full quantity of land, which he might have otherwise retained, by reason of bona fide transfer or transfers made by him between May 5, 1953 and the date of vesting.

    10. Mr, Chandra Nath Mukherjee, learned Advocate for the petitioners, condemned the second part of section 5A of the Act as a colourable piece of legislation. He further contended that, even if not a colourable piece of legislaton, the second part of the section was hit by Article 31(2), being a provision of compulsory acquisition not for a public purpose and without compensation and was not saved by Article 31A. He also contended that the second part of section 5A was based on an unreasonable classification under which all intermediaries, whether making a bona fide transfer or not, were subjected to some sort of limitation in the matter of retention of land. Lastly, he contended that the second part of Section 5A did not subserve the main purpose of the Act, so as to be an integral part of the Act and was not protected under Article 31A(1) of the Constitution.

    11. I take up the arguments of Mr. Mukherjee in the order in which they were argued. I turn first of all to the argument based on colourable legislation theory. The doctrine of colourable legislation ultimately resolves itself into the question of competency of a particular legislature to enact a particular law. This is what may be gathered from the case of Gajapati Narayan Deo v. State of Orissa (1) (A.I.R 1953 S.C 375) in which Mukherjea, J. observed:—

    “If the Constitution of a State distributes the legislative powers amongst different bodies, which have to act within their respective spheres marked out by specific legislative entries, or if there are limitations on the legislative authority in the shape of fundamental rights, questions do arise as to whether the legislature in a particular case has or has not, in respect to the subject matter of the statute or in the method of enacting it transgressed the limits of its constitutional powers. Such transgression may be patent, manifest or direct, but it also may be disguised, covert and indirect and it is to this latter class of cases that expression ‘colourable legislation’ has been applied in certain judicial pronouncements.”

    12. To the same effect is the other decision of the Supreme Court in Gul-lapalli Nageswara Rao v. Andhra Pradesh State Road Transport Corporation (2) (A.I.R 1959 S.C 308). Mr. Mukherjee did not argue that the West Bengal Legislature had not the legislative competency to enact the Act. The enactment therefore is not a colourable legislation in the sense that it was enacted without legislative competency.

    13. The second argument of Mr. Mukherjee may shortly be disposed of. Article 31A of the Constitution is to the following effect:—

    “31A (1) Notwithstanding anything contained in Article 13, no law providing for—

    (a) the acquisition by the State or of any rights therein or the extinguishment or the modification of any such rights, or

    (b) ***

    (b) ***

    (c) ***

    (d) ***

    (e) ***

    shall be deemed to be void on the ground that it is inconsistent with, or takes away or abridges any of the rights conferred by Article 14, Article 19 or Article 31:

    Provided***

    (2) In these Articles—

    (a) the expression ‘estate’ shall in relation to any local area, have the same meaning as that expression or its local equivalent has in the existing law relating to land tenures in force in that area, and shall also include any jagir, inam or muafi or other similar grant and in the States of Madras and Kerala any janmam right;

    (b) the expression ‘rights’, in relation to an estate, shall include any rights vesting in a proprietor, sub-proprietor, under-proprietor, tenure-hodler, raiyat, under-raiyat or other intermediary and any rights or privileges in respect of land revenue.”

    14. It is difficult to appreciate why Article 31A will not save the second part of section 5A of the Act. The West Bengal Estates Acquisition Act is itself an Act for acquisition of estates. Section 5A was inserted in the body of the main Act, by amending Act XIII of 1954, for the purpose of placing restriction on certain transfers. It was not a provision for compulsory acquisition, as imagined by Mr. Mukherjee and was not hit by Article 31 (2) of the Constitution. I do not find any substance in the contention that section 5A will not fall within the saving provision of Article 31A of the Constitution.

    15. If Article 31A applies the argument that the second part of section 5A introduced an unreasonable classification must also fail because the provision of section 5A would be immune from such criticism by reason of the provisions of Article 31A itself.

    16. It remains for me now to consider the last argument of Mr. Mukherjee, namely, that the second part of section 5A did not sub-serve the main purpose of the Act so as to be an integral part thereof and was not, there fore, protected under Article 31A of the Constitution. The argument is attractive even though not of substance. The basis of the argument of Mr. Mu kherjee is to be found in an observation by Wanchoo, J., in Raghubir Singh v. State of Ajmer (3) (A.I.R 1959 S.C 475) where, dealing with section 8 of Ajmer Abolition of Intermediaries and Land Reforms Act, (more or less similar to the provisions of section 5A of the Act) his Lordship observed as follows:—

    “The provision is not an independent provision; it is merely ancillary in character enacted for carrying out the objects of the Act more effectively. The intention of the legislature was to give power to the Collector after the estates vested in the State Government to scrutinise leases of this kind made after the 1st June, 1950, which was apparently the date from which such legislation was under contemplation and to see whether the leases were such as a prudent landowner would enter into in the normal course of management. Such leases would be immune from cancellation; but if the Collector found that the leases have been entered into, not in the normal course of management but designedly to make whatever the landowners could before the estate came to be transferred to the State Government, he was given the power to cancel the same, as they would obviously be a fraud upon the Act. Such cancellation would sub-serve the purposes of the Act and the provisions for it would therefore, be in an integral part of the Act though ancillary to its main object and would thus be protected under Article 31A(1) of the Constitution.”

    17. The above observations would apply with great cogency to the provisions of sub-sections (1) and (2) of section 5A of the Act, which deal with mala fide transfers. Sub-section (3) of section 5A, however, deals with bona fide transfers and it is difficult to conceive of any reason why even bona fide transferees shall be visited with adverse consequences, by reason of bona fide transfers made at a time when even the vesting had not taken place. Life of law is, however, not logic but experience. If the legislature in its experience, or to be more precise in its wisdom, chose to incorporate in the statute a provsion highly illogical and not apparently sub-serving the main purpose of the Act, there is no power in me to strike down the provision, if the legislature had acted within its competency and had not violated the rights guaranteed by the Constitution. For the reasons aforesaid I am not prepared to give effect to the last argument of Mr. Mukherjee.

    18. Before I close this judgment I desire to notice a point, which, however, was not argued by Mr. Mukherjee. The provisions of section 5A became applicable to raiyati and under-raiyati holdings, because of the provisions contained in section 52 of the Act, which 1 set out below:—

    “52. On the issue of a notification under section 49 the provisions of Chapters II, III, V and VII shall, with such modifications as may be necessary, apply mutatis mutandis to raiyats and under-raiyats as if such raiyats and under-raiyats were intermediaries and the land held by them were estates and a person holding under a raiyat or an under-raiyat were a raiyat for the purposes of clauses (c) and (d) of section 5:

    Provided that if a raiyat or an under-raiyat retains all lands of a holding under section 6, read with this section, he shall pay the same rent as he was paying immediately before the date of vesting and in cases where the land retained by a raiyat or an under-raiyat forms part of the lands in a holdng held by him before the date of vesting, the rent payable by him shall bear the same proportion to the rent he was paying immediately before the date of vesting as the area of the land retained by him bears to the area of all the lands of the holding.

    19. The Latin expression “mutatis mutandis” means in English “with necessary changes”. The juxtaposition of the expression “mutatis mutandis” after the preceding expression “with such modifications as may be necessary” impresses upon the language of the section a tautologous duplication, which is difficult to explain. I need not however, make much of this point in this Rule, firstly, because the point was not emphasised by anybody and secondly, because a good deal may not turn on the defective language of section 52.

    20. All the arguments advanced by Mr. Mukherjee in support of the Rule failing, this Rule must be discharged.

    21. I however, make no order as to costs.

    22. Let the operation of the order be stayed for a fortnight as prayed for by the petitioner.

    S.K.B

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    Comments

    Ratnakar Ghosh And Anr. v. State Of West Bengal And Ors. Opposite Parties.
    (Sep 21, 1961)