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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • Bihar Kosi Area (Restoration of Lands to Raiyats), Act, 1951
  • Article 137 of the Limitation Act, 1963
  • Sections 4 & 5 of the Act
  • Section 166 of the Motor Vehicles Act, 1988
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • Bihar Kosi Area (Restoration of Lands to Raiyats), Act, 1951
  • Article 137 of the Limitation Act, 1963
  • Sections 4 & 5 of the Act
  • Section 166 of the Motor Vehicles Act, 1988
Smart Summary

Factual and Procedural Background

The appeal arose from a judgment of the Division Bench of the Patna High Court which had overturned an order of the Additional Collector, Supaul. The Collector had directed restoration of possession of approximately 10.47 acres of land to the appellants under the Bihar Kosi Area (Restoration of Lands to Raiyats) Act, 1951 (“the Act”).

  • 13 August 1942 – The suit land was auction-sold in execution of a rent decree and purchased by Babu Md. Abdus Samad; subsequently the land changed hands four times.
  • 1951 – The State of Bihar enacted the Act to restore lands sold or lost for rent arrears between 1 January 1939 and 31 December 1950 due to Kosi River floods.
  • 04 May 1975 – First petition for restoration filed by Gonar Yadav (son of the recorded tenant).
  • 07 September 1980 – Appeal No. 540/1978-79 dismissed for default; restored on 23 December 1980; again dismissed on 23 March 1983.
  • 09 August 1999 – Second restoration application filed after 16 years; allowed without notice. On 27 December 2000 the Additional Collector ordered restoration in favour of the appellants.
  • 25 March 2004 – Respondents’ writ petition dismissed by a Single Judge; however, the Division Bench allowed their Letters Patent Appeal, setting aside restoration.
  • The present Civil Appeal No. 1250/2008 was filed by the appellants before the Supreme Court challenging the Division Bench decision.

Legal Issues Presented

  1. Whether an application for restoration of land, filed 24 years after the Act came into force and re-invoked 16 years after dismissal for default, can be entertained when the statute prescribes no explicit period of limitation.
  2. Whether the beneficial nature of the Act justifies overlooking such delay.
  3. Whether the Additional Collector could exercise suo motu power for restoration “at any time” in the absence of a statutory limitation period.

Arguments of the Parties

Appellants' Arguments

  • The Act is a social-welfare legislation meant to relieve dispossessed farmers; therefore, delays should be condoned.
  • Reliance on New India Assurance Co. Ltd. v. C. Padma (2003) 7 SCC 713, where absence of limitation in a beneficial statute prevented rejection of a time-barred claim.
  • Contended that the Additional Collector’s powers of restoration could be exercised suo motu, and hence at any time.

Respondents' Arguments

The opinion does not contain a detailed account of the respondents’ legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
New India Assurance Co. Ltd. v. C. Padma, (2003) 7 SCC 713 Beneficial statutes may allow claims even when filed after the usual limitation period. Distinguished; held inapplicable because even in absence of limitation, action must be taken within a reasonable time.
Joint Collector, Ranga Reddy District v. D. Narsing Rao, (2015) 3 SCC 695 Suo motu revisional power, if exercised after long delay, is arbitrary and contrary to rule of law. Followed to reject contention that Collector could act at any time without regard to delay.
Situ Sahu v. State of Jharkhand, (2004) 8 SCC 340 Rights acquired by others cannot be lightly set aside merely because legislation is beneficial; proceedings must be initiated within reasonable time. Invoked to emphasise that unreasonable delay defeats the claim for restoration.

Court's Reasoning and Analysis

The Supreme Court focused exclusively on the issue of delay:

  • Observed an “inordinate, unexplained and unjustified delay” of 24 years in filing the first restoration petition and a further 16-year gap before the second restoration plea.
  • Reiterated the settled principle that, where a statute is silent on limitation, actions must nonetheless be initiated within a “reasonable time,” defined as a period that preserves parties’ rights and prevents undue loss.
  • Recorded that the land had changed hands several times between 1942 and 1986, resulting in long-settled possession for the respondents; upsetting such settled rights requires compelling reasons, which were absent.
  • Held that the Additional Collector’s order restoring the appeal without notice contravened Sections 4 and 5 of the Act and was therefore illegal.
  • Distinguished the appellants’ reliance on New India Assurance by noting that removal of a statutory limitation does not equate to an unlimited timeframe; cited Joint Collector v. D. Narsing Rao to underscore that even suo motu powers must be exercised promptly.
  • Concluded that the beneficial character of the Act cannot justify ignoring “grossly delayed” claims that prejudice third-party rights acquired in good faith.

Holding and Implications

Appeal Dismissed.

Direct Effect: The Division Bench judgment denying restoration stands affirmed; the appellants retain only a right to seek return of compensation and damages they deposited.

Broader Implications: The decision reinforces that, even under beneficial legislation lacking explicit limitation periods, parties (and authorities acting suo motu) must act within a reasonable timeframe. Long-settled property rights will not be disturbed absent compelling justification, thereby underscoring legal certainty for bona fide transferees.

    Chhedi Lal Yadav & Ors. (S) v. Hari Kishore Yadav (D) Thr. Lrs. & Ors. (S)

    1. This appeal is preferred against the judgment of the Division Bench of the High Court of Judicature at Patna whereby the High Court had reversed the order passed by the Additional Collector, Supaul directing restoration of possession of the disputed land admeasuring about 10.47 acres to the appellants under the provisions of the Bihar Kosi Area (Restoration of Lands to Raiyats), Act, 1951 (for short, “the Act”).

    2. We have heard learned counsel for the parties at length. Having done so, we are inclined to dispose of the appeal on the ground of unreasonable delay in applying for restoration of the land. The few dates necessary for deciding this issue are as follows:

    3. On 13.08.1942, the suit land was sold in auction in execution of the Rent Decree. The suit land was then put in possession of the appellant(s)’ predecessor. In execution, the land was purchased by one Babu Md. Abdus Samad. Thereafter, the land appeared to have changed hands four times.

    4. In 1951, the State of Bihar enacted the Act. The Act provided for restoration of certain lands to farmers, i.e, raiyats, which were sold for arrears of rent or from which they were ejected for arrears of rent between 1 day of January 1939, and 31 day of December, 1950. This was operational due to floods in the Kosi River which made agricultural operations impossible.

    5. The appellants did not take any steps for restoration of the land till 04.05.1975 On that date one Gonar Yadav, son of recorded tenant Chanchal Yadav filed a petition for restoration of the disputed land under Section 3 of the Act. Eventually, after an earlier remand, when the matter was pending in appeal, being Appeal No. 540 of 1978-79, it was dismissed in default on 07.09.1980 It was again restored on 23.12.1980; but again dismissed for default on 23.03.1983

    6. An application for restoration was moved after 16 years on 09.08.1999 and was allowed without notice to the respondents. Eventually, the Additional Collector on 27.12.2000, allowed the restoration of the disputed land in favour of the appellants.

    7. A Writ Petition filed by the respondents was dismissed by the learned Single Judge on 25.03.2004 A Letters Patent Appeal preferred by the respondents was, however, allowed. That judgment is in appeal before us at the instance of the appellants who had been denied the restoration of land. It is obvious from the periods of time mentioned above that even after the Act was passed in 1951, the appellants filed a petition for restoration of the disputed land on 04.05.1975, i.e, after a period of about 24 years. Thereafter, when the appeal filed by them was dismissed on 23.08.1983, the appellants applied for restoration on 09.08.1999 after a period of 16 years of such dismissal.

    8. We find that there is inordinate, unexplained and unjustified delay on the part of the appellants in firstly, making an application for restoration of land after a period of 24 years after such a right is said to have accrued to them and, then in making an application for restoration after a period of 16 years when the matter was dismissed in default.

    9. Learned counsel appearing for the appellants vehemently submitted that the delay must be overlooked because the Act is a beneficial piece of legislation intended to bring relief to farmers who had been dispossessed during the proscribed period. The reliance was placed on a judgment of this Court in the case of New India Assurance Co. Ltd. v. C. Padma, reported in (2003) 7 SCC 713 where this Court held that in a motor accident which took place on 18.12.1989, a Claim Petition barred by time but filed on 02.11.1995, after limitation itself was removed from the Statute was maintainable. This Court held that there could be no resort to Article 137 of the Limitation Act, 1963 even though no period of limitation was prescribed. Accordingly, the Court held that the Claim Petition could not be rejected at the threshold on the ground of limitation, after the deletion of sub-section (3) of Section 166 of the Motor Vehicles Act, 1988 which had provided a period of six months. This view was taken having regard to the purpose of the Statute. We, however, find that the judgment relied on has no application to the present case. It is a settled law where the Statute does not provide for a period of limitation, the provisions of the Statute must be invoked within a reasonable time. In Advanced Law Lexicon by P. Ramanatha Aiyar, 3 Edn. ‘reasonable time’ is explained as follows:

    “That is a reasonable time that preserves to each party the rights and advantages he possesses and protects each party from losses that he ought not to suffer.”

    10. Thus time must be reckoned reasonably, not only in order to preserve rights and advantages a party possesses, but equally to protect each party from the losses he ought not to suffer. Thus whether an action has been taken within a reasonable time must also be viewed from the point of view of the party who might suffer losses.

    11. In the instant case, we find that the High Court had observed as follows:

    “The auction sale took place in 1942, the application for restoration of the lands was first made in 1975 and the appeal from it was dismissed for default in 1983. In the meanwhile the disputed lands changed hands twice and were in the possession of the appellants-writ petitioners from 1962 and 1986. Such a long settled position could only be up-set for some very compelling reasons and on making out an extremely strong case for restoration of the appeal. There is nothing on record to suggest anything remotely like that. Secondly, the action of the Addl. Collector in restoring the appeal even without any notice to the appellants-writ petitioners was clearly illegal and in contravention of Sections 4 & 5 of the Act.”

    12. The High Court was clearly right in the view it had taken. It is argued on behalf of the appellants that power of the Additional Collector for restoration of lands could have been exercised suo motu and since no limitation was prescribed for exercise of such power, the delay in this case may be overlooked. This submission presupposes that where the power can be exercised suo motu, such exercise may be undertaken at any time. The submission is directly contrary to a decision of this Court in the case of Joint Collector Ranga Reddy District v. D. Narsing Rao (Civil Appeal Nos. 325-326 of 2015) and connected matter reported in (2015) 3 SCC 695 where this Court affirmed the view of the Andhra Pradesh High Court. Paragraph ‘17’ of the judgment reads as follows:

    “…that the suo motu revision undertaken after a long lapse of time, even in the absence of any period of limitation was arbitrary and opposed to the concept of rule of law.”

    13. Thus we have no hesitation in rejecting this contention.

    14. In our view, where no period of limitation is prescribed, the action must be taken, whether suo motu or on the application of the parties, within a reasonable time. Undoubtedly, what is reasonable time would depend on the circumstances of each case and the purpose of the Statute. In the case before us, we are clear that the action is grossly delayed and taken beyond reasonable time, particularly, in view of the fact that the land was transferred several times during this period, obviously, in the faith that it is not encumbered by any rights.

    15. We are of the view that merely because the legislation is beneficial and no limitation is prescribed, the rights acquired by persons cannot be ignored lightly and proceedings cannot be initiated after unreasonable delay as observed by this Court in the case of Situ Sahu v. State of Jharkhand, reported in (2004) 8 SCC 340.

    16. The appeal is, accordingly, dismissed.

    17. However, the appellants may apply for return of the compensation and damages deposited by them.

    SUPREME COURT OF INDIA

    RECORD OF PROCEEDINGS

    Civil Appeal No(s). 1250/2008

    Chhedi Lal Yadav & Ors.….Appellant(s)
    v.
    Hari Kishore Yadav (D) Thr. Lrs. & Ors.….Respondent(s)

    (With appln. (s) for permission to place addl. documents on record and interim relief)

    Date: 19/04/2017 This appeal was called on for hearing today.

    (Before S.A Bobde and L. Nageswara Rao, JJ.)

    For Appellant(s) Mr. R.K Dhawan, Adv.

    Ms. Richa Dhawan, adv.

    Mr. V.K Teng, adv.

    Mr. Anuj Chaturvedi, Adv.

    Mr. M.A Chinnasamy, Adv.

    For Respondent(s) Mr. Akhilesh Kumar Pandey, Adv.

    Mr. Shivam Singh, Adv.

    Mr. Kumar Milind, Adv.

    Mr. Gopal Singh, Adv.

    UPON hearing the counsel the Court made the following

    18. The appeal is dismissed in terms of the signed order.

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    Comments

    Chhedi Lal Yadav & Ors. (S) v. Hari Kishore Yadav (D) Thr. Lrs. & Ors. (S)
    (Apr 19, 2017)