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Ashok Kumar Pandey & Ors vs State Of Bihar

Supreme Court9 May 2008Mukundakam Sharma · P. Sathasivam · Arijit Pasayat

Ratio decidendi

The rule this decision rests on

Where a collector seeks to re-open a concluded land ceiling proceeding under Section 45-B of the Act after passage of time, no time limit for re-opening is prescribed in the section, and the action cannot be faulted if an opportunity by way of show cause notice is afforded to the affected landholders and their objections are heard before determining the revised position. Land mortgaged before 9.9.1970, where the registered sale deed effecting the transfer of title to the mortgagee was executed after 9.9.1970, shall not be considered a transfer prior to 9.9.1970; and such transfer made after the notified date without prior permission from the authority, shall pursuant to Section 9(2) of the Act be treated as land selected by the landholder for retention within the ceiling area rather than as an effective transfer outside the landholder's holding, and shall be included within the surplus land calculation.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

REPORTABLE
IN THE SUPREME COURT OF INDIACIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 7770 OF 2001
Ashok Kumar Pandey & Ors. .... Appellant (s)
Versus
State of Bihar .... Respondent(s)
JUDGMENT
P. Sathasivam, J.
1) Challenge in this appeal is the final judgment and order
dated 29.1.1999 passed by the Division Bench of the High
Court of Judicature at Patna in L.P.A. No. 1173 of 1998
whereby the High Court dismissed the said appeal of the
appellants herein.
2) The brief facts in a nutshell are:
The appellants are the land-holders. On 11.2.1966, Ram
Nandan Pandey, the father of the appellants, mortgaged 6
Bigha 15 Katha of land to one Md. Kuddus and subsequently
on 4.8.1972, he transferred the said land along with someother land to the same mortgagee. On 11.02.1966, one
Rajendra Pandey, the brother of Ram Nandan Pandey
mortgaged 6 Bigha 4 Katha 10 Dhur land to one Md. Alam.
After the death of Rajendra Pandey, his widow Chandrakala
Devi transferred the said land to Md. Alam.
3) On 27.12.1975, a proceeding being Land Ceiling Case
No.40 of 1975 was initiated against Ram Nandan Pandey
under the provisions of the Bihar Land Reforms (Fixation of
Ceiling Area and Acquisition of Surplus Land) Act, 1961
(hereinafter referred to as "the Act"). In the draft statement
published under Section 10(2) of the Act, the land holders
were shown in possession of 126.38 acres of Class IV land and
after allowing three units for Ram Nandan Pandey, Smt.
Chandrakala Devi - the widow of Rajendra Pandey and Ashok
Kumar Pandey, 36.38 acres was shown as surplus land. The
land holders filed objections against the said claiming, inter
alia, one more separate unit for Arun Kumar Pandey and
exemption of 12 Bigha 19 Katha 10 Dhur of land which were
sold to the mortgagees - Md. Kuddus and Md. Alam
2respectively. An enquiry was contemplated under section 5(iii)
of the Act and the transfers found to be genuine and valid as
the transferees were found in actual physical and cultivating
possession of the lands transferred and their names were also
mutated in the revenue records of the Government. The
transfers were also effected through registered documents and
for a valuable consideration. They were also paying land
revenue to the Government. After the enquiry on 24.4.1981,
the Additional Collector, Sitamarhi held that the land holders
were entitled to four units including one separate unit for
Arun Kumar Pandey and the transfer of land in favour of Md.
Kuddus and Md. Alam were genuine and valid transfers.
Accordingly, on 5.5.1981, the Additional Collector having
found no surplus lands in possession of the land holders,
dropped the proceeding. The State of Bihar did not prefer any
appeal, revision or review against the order dated 24.4.1981
or against the order dated 5.5.1981 and those orders were
allowed to become final. After dropping of the proceeding, the
Ram Nandan Pandey and his sons transferred 31.41 = acres
of land to different persons for their legal necessity. Smt.
3Chandrakala Devi and her daughters namely Usha Devi and
Manju Devi transferred 29.24 acres of land to different
persons for their legal necessity. In December, 1983, Ram
Nandan Pandey died and by that time his third son Dhruv
Kumar was a major. On 22.4.1993, a notice under Section 45
B of the Act was sent by the Collector, Sitamarhi to show
cause as to why the case be not re-opened on the ground that
12 Bigha 19 Katha 10 Dhur of land transferred to Md. Kuddus
and Md. Alam were illegally exempted as no previous
permission in writing of the Collector was obtained and thus
the transfers have been made with mala fide intention of
defeating the object of the Act. On 16.8.1993, the land
holders replied to the notice contending that the lands were
rightly excluded after conducting proper enquiry and that
order of exemption had become final as no appeal, revision or
review was preferred by the State against those orders before
any higher forum as prescribed under the provisions of the
Act and that the matter cannot be re-opened. On 26.6.1995,
the Collector, Sitamarhi re-opened the case in exercise of his
power conferred under Section 45 B of the Act after more than
414 years. On reconsideration of the materials, the Collector
transferred the same for disposal to the Court of Additional
Collector, Sitamarhi. On 10.10.1995, the Additional Collector,
Sitamarhi in Land Ceiling case No. 46/76/78/93 did not
accept the two transfers made in favour of the mortgages-Md.
Alam and Md. Kuddus respectively and after granting two
units for Ashok Kumar Pandey and Arun Kumar Pandey and
20 acres of land for Dhruv Kumar Pandey, third son of Ram
Nandan Pandey, declared 46.39 acres of land as surplus on
the ground that the sale deed were executed after 9.9.1970
without obtaining prior permission of the Collector and
therefore, the transferred lands have to be included within the
ceiling area to be retained by the land-holders and ordered for
draft publication of land. The appellants-land holders filed
objections under Section 10(3) of the Act stating that the draft
publication was not in conformity with the order of re-opening
of the case and that the fishing enquiry is not permissible in
law, that 31.42 = acres of land transferred after dropping of
the proceeding out to have been excluded from the land of
land holders, that Dhruv Kumar Pandey was entitled to a
5separate unit, that 5.91 = acres of land acquired by the State
ought to be excluded from the land of the land holders, that
39.61 acres of land lying between two bundhs ought to be
classified as Class V land and land belonging to other ought to
be excluded from the land of the land holders. On
22.12.1995, the Additional Collector, Sitamarhi in Land
Ceiling Case No. 40/75 78-93 came to the conclusion that it is
not competent to examine the authority, jurisdiction and
decision of the Collector to re-open the proceeding and that
once the case is re-opened, the entire exercise has to be
carried afresh and de novo. However, he exempted 0.90 acres
of homestead land and 1.37 acres of land transferred before
9.9.1970 from the land of land holders. All other objections of
land-holders were rejected and 24.11 acres of land was
declared as surplus and the office was directed to take steps
for publishing the final statement as contemplated under
Section 11(1) of the Act. On 5.1.1996, final statement was
published. Aggrieved by the order dated 22.12.1995, the
appellants filed an appeal being Land Ceiling Appeal No.2 of
1996 and the same was rejected by the Collector, Sitamarhi
6on 3.6.1996. Being aggrieved by the said order, the appellants
filed Revision No. 50 of 1996 before the Board of Revenue,
Bihar, Patna and the same was also dismissed on 26.12.1997.
Against that order, the appellants approached a single Judge
of the Patna High Court by way of writ petition being C.W.J.C.
No. 2912 of 1998 and the same was also dismissed on
10.9.1998. Again the appellants filed L.P.A. No. 1173 of 1998
before the Division Bench of the High Court and the same was
also dismissed on 29.1.1999. Against the said order, the
appellants preferred the above appeal before this Court.
4) Heard Mr. Lakshmi Raman Singh, learned counsel for

the appellants and Mr. Gopal Singh, learned counsel

appearing for the respondent-State.

5) The only point for consideration in this appeal is whether

the appellants have made out a case for interference in the

impugned order of the Division Bench of the High Court and

earlier orders of Revenue Authorities?

6) Learned counsel appearing for the appellants mainly

contended that after inordinate delay of 14 years, the Collector

7 was not justified in re-opening a concluded proceeding in

exercise of power under Section 45-B of the Act. He also

contended that even if the transfers made by the land holders

in the year 1972 in favour of the mortgagees are to be ignored

on the ground that the same was without obtaining prior

approval of the Collector in writing as required under Section

5(ii) of the Act, still the mortgaged lands, the possession of

which has been handed over to the mortgagees by the

mortgagor-land holders, cannot be included within the lands

of the land holders in view of the definition of "land holder" as

defined in Section 2(g) of the Act.

7) In order to appreciate the above contentions, it is useful

to refer certain provisions from the Act:

"Section 2(ee) - "Family" means and includes a person, his or her spouse and minor children;

Explanation I.- In this clause the word "person" includes any company, institution, trust, association, or body of individuals whether incorporated or not.

Explanation II.- The personal law shall not be relevant or be taken into consideration in determining the composition of the family for the purposes of the Act;

"Section 2(g) - `land holder' means a family as defined in clause (ee) holding land as raiyat or as under-raiyat or a mortgagee of land in possession or holding land permanently

8 settled by Government or lessee of land not resumable by Government."

"Section 9(2) - Where the land held by the land-holder includes land transferred by him in accordance with or in contravention of the provisions of clause (ii) of sub-section (1) of section 5, the land so transferred in accordance with or in contravention of clause (ii) of sub-section (1) of Section 5 shall, to the extent of the ceiling area admissible to the land holder, be deemed to have been selected by him for retention within the ceiling area, and where the total area of such land is less than the ceiling area admissible to him, the land holders shall select the balance of ceiling area from his remaining land:

Provided that where the land so transferred in accordance with or in contravention of clause (ii) of sub- section (1) of Section 3 is equal to or more than the ceiling area admissible to him and if because of the selection under sub-section (2) the land holder's homestead cannot be trained within his ceiling area, the land holder may be permitted to hold his homestead subject to a maximum limit of two acres only."

"Section 45-B - State Government to call for and examine records - The State Government [or the Collector of the district who may be authorized in this behalf]* may, at any time, call for and examine any record of any proceeding disposed of by a Collector under the Act and may, if it thinks fit, direct that the case be reopened and disposed of afresh in accordance with the provisions of the Act.

* Omitted by Act 8/97."

8) Insofar as the first contention regarding re-opening of the

case under Section 45-B of the Act is concerned, it is seen

that the District Collector, finding fault with the disposal of

the case, re-opened the case after issuance of show cause

notice and after hearing the objection of the land holders. A

9 reading of the above provisions, mainly Section 45-B, makes it

clear that after affording an opportunity to the land holder, the

Collector of the District (since omitted by Act No.8/97) or the

State Government call for and examine any proceeding and

direct the case to be re-opened and dispose of afresh. In

absence of any time limit, the action taken by the Collector in

order to ascertain the actual/eligible land holdings, cannot be

faulted with. However, the said provision mandates that

aggrieved person must be afforded an opportunity by way of

show cause notice. It is seen from the order of the Additional

Collector, the show cause notice was issued to the land holder

and they were heard on the point of draft publication prior to

passing of the order. The order further shows that the enquiry

report was received from the Circle Officer, Belsand, regarding

the partition taken place between the members of the family of

the land holders. The order further shows that after taking

into consideration all the relevant facts, the order regarding

the draft publication was passed on 10.10.1995. Accordingly,

we reject the contention of the appellants.

10

9) Coming to the other contention, it is seen from the

materials that Ram Nandan Pandey and Rajendra Pandey on

11.2.1966 had mortgaged 6 Bigha 15 Katha and 6 Bigha 4

Katha 10 Dhur to Md. Kuddus and Md. Alam respectively and

both the land holders executed registered sale deeds in favour

of the mortgagees on 4.8.1972 and 2.8.1972 respectively. It

further shows that at the time of passing of the order of draft

publication, the issue had already been discussed at length

and the title of the land was not transferred. The mortgaged

land is essentially considered as the land of the land holder.

In those circumstances, the mortgage of the land in 1966

cannot be considered as a transfer prior to 9.9.1970.

Admittedly, the lands were transferred by registered sale deed

after 9.9.1970 and the title has passed only thereafter.

10) As per the provisions of Section 18 read with Section 2

(eee) of the Act, Ashok Kumar Pandey and Arun Kumar

Pandey were allowed to retain 30 acres of Class IV land each

by treating them major on 9.9.1970 and both the land holders

have inherited 10 acres each after the death of their father.

11 After coming into force of the Act, no person can hold the land

beyond the ceiling limit after the appointed day i.e., 9.9.1970.

It is further seen that Ashok Kumar Pandey has inherited 10

acres of land from his father and after the death of his father

he was holding 40 acres of land. Similar situation was there

in the case of Arun Kumar Pandey. Taking note of all these

relevant materials, the Additional Collector, by proceedings

dated 22.12.1995, arrived at a conclusion that an extent of

24.11 acres of land is left as surplus and declared the same as

surplus land.

11) The abovementioned order of the Additional Collector

was duly considered by the Collector and by order dated

3.6.1996 after finding no error, he refused to interfere and

dismissed the appeal. The revision filed against the order of

the Collector was heard by the Board of Revenue. The

Additional Member of the Board also considered the relevant

materials including the orders passed by the Additional

Collector, Collector and other documents and concurred with

the decision. In fact, the Board has permitted the appellants

12 herein to approach the Collector for exercise of option for

retaining the land of their choice in accordance with law.

12) Dissatisfied with the order of the Revenue Authority, the

appellants took the matter to the High Court. The learned

single Judge correctly concluded that transfers made on

2.8.1972 and 4.8.1972 having been made after 9.9.1970 with

or without permission be treated as lands selected by the land

holders for the purpose of retention of their lands within their

ceiling units in terms of Section 9(2) of the Act and dismissed

their writ petition. The said order of the learned single Judge

was confirmed by the Division Bench.

13) As pointed out earlier, in view of Section 45-B of the Act

and the fact that the transfers of land in favour of mortgagees

on 2.8.1972 and 4.8.1972 having been made after the notified

date, i.e., 9.9.1970 without prior permission from the

authority concerned, the same are to be treated as lands

selected by the land holders for the purpose of retention of

their lands within their ceiling units and consequently, the

orders of Revenue Authorities cannot be faulted with. It is

13 also not in dispute that the show cause notice was issued to

the appellants and thereafter after affording a further

opportunity, an order was passed determining their surplus

land.

14) In view of the statutory provisions and of the fact that the

appellants were afforded adequate opportunity before passing

the order declaring certain lands as surplus lands and all the

relevant aspects having been duly considered by the hierarchy

of revenue authorities as well as the High Court, we do not

find any valid ground for interference. Consequently, the

appeal fails and the same is dismissed. There shall be no

order as to costs.

........................................J. (Dr. Arijit Pasayat)

.........................................J. (P. Sathasivam)

.........................................J. New Delhi; (Dr. Mukundakam Sharma) May 9, 2008.

14

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