Miss Lucy
← All judgments

Union Of India & Ors vs Kamla Verma

Supreme Court13 August 2010P. Sathasivam · Anil R. Dave

Ratio decidendi

The rule this decision rests on

When land in a cantonment has been granted to a civilian on "old grant" terms under the Bengal Regulations of 1836 (G.G.C. No. 179), the grantee acquires only an occupancy right and does not become the full-fledged owner of the land itself; the land remains the property of the Government, which retains the power to resume it on giving one month's notice and paying the value of authorized structures erected thereon. A person who acquires rights in land previously held on "old grant" terms by inheritance or transfer takes only such rights as the predecessor had, and cannot acquire better or fuller rights than the original grantee possessed; accordingly, the transferee also holds the land only on "old grant" terms and is not a full-fledged owner. Where land is held on "old grant" terms, the holder possesses ownership only of the superstructure built on the land and not of the land itself; the Government's power of resumption over the land cannot be defeated by the holder's ownership of the building or structures thereon.

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

Judgment

As delivered

REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 6563 OF 2010
(Arising out of SLP) No.20368 of 2007)
lUNION OF INDIA & ORS. .....APPELLANTS
VERSUS
KAMLA VERMA .....RESPONDENT
1lJ U D G M E N T
lANIL R. DAVE, J.
1. Leave granted.

2. Being aggrieved by the judgment dated 19th January, 2007 delivered

by the High Court of Allahabad, Lucknow Bench, Lucknow in Writ Petition

No. 1661 (M/B) of 1998, the original respondents before the High Court

have approached this Court by way of this appeal.

2

3. The facts giving rise to the litigation in a nutshell are as under:-

The respondent- original petitioner before the High Court had filed

the aforesaid writ petition praying that the premises situated at 14, Kasturba

Marg, (Old No. 15, Tomb Road) Lucknow Cantt., be de-hired under the

policy of Central Government as reflected in Para 19 Clause (c) of the

Policy and procedure for dehiring of houses dated 19.11.1979 (as

amended on 19.3.1985) as the premises in question was not being used by

the respondents because it was in a dilapidated condition.

4. After considering the fact that the premises was not in good shape

and was not in use by the respondents, the High Court allowed the petition

by directing the respondents to permit the petitioner to undertake repair

3 works of the premises in question and to de-hire the same with immediate

effect.

5. The High Court came to the conclusion that the petitioner was a

landlady and as per Policy of the Central Government, she had a right to get

the property de-hired especially when the respondent authorities were not

using the same. The High Court had taken into account contents of a

letter dated 29th November, 1996, addressed to the Director, DE written by

the Defence Estate Officer of Lucknow Cantt. for coming to the above

conclusion. The High Court came to the conclusion that the reference to

"old grant" seemed to be misconceived as there was nothing on record to

show that the land in question was allotted to the vendor of the petitioner

4 lady on "old grant". Being aggrieved by the aforesaid judgment, the

respondents - Government authorities have filed this appeal.

6. The learned Additional Solicitor General appearing for the appellants

- original respondents has submitted that the impugned judgment is bad in

law for the reason that certain factual aspects which had been placed on

record alongwith the counter affidavit filed before the High Court had not

been considered and, therefore, the conclusion arrived at by the High Court

is not correct.

7. It has been submitted by him that the premises in question had been

granted on "old grant" terms to Shri Roop Krishan Seth, son of Shri Rai

Bahadur Prabhu Dayal Seth. Thereafter under an agreement dated 26th July,

1948, the premises in question had been leased to the present appellants. A

5 copy of the said agreement was very much on record of the High Court as it

had been annexed to the counter affidavit filed by the present appellants -

original respondents before the High Court. Subsequently, the property in

question had been inherited by Shri Mohan Krishan Seth, son of Shri

Roop Krishan Seth. Thereafter, the property in question had been

transferred in favour of the present respondent, namely, Smt. Kamla Verma

who was the petitioner before the High Court.

8. So as to substantiate his case, he has drawn our attention to the

contents of the agreement dated 26th July, 1948, whereby the property in

question had been leased to the appellant authorities. In the preface of the

agreement, it has been clearly stated that the property in question was held

by Shri Roop Krishan Seth on "cantonment tenure" or in other words it

6 means "old grant" terms. The said fact denotes that Shri Roop Krishan

Seth was not a full-fledged owner of the property in question. Had he been

the owner of the property in question, the reference to "cantonment tenure"

would not have been made in the said agreement. Moreover, in clause iv (5)

of the said agreement, it has been stated that the authorities had a right to

resume possession of the whole or any portion of the property in question,

during the period of tenancy without being liable to Shri Roop Krishan Seth

in any way. Had Shri Roop Krishan Seth been an owner of the property in

question, there would not have been any such clause with regard to

resumption of the property i.e. building as well as the land in question, in

the lease deed. This fact, according to the learned Additional Solicitor

General, shows that the land in question, was given to Shri Roop Krishan

7 Seth on "cantonment tenure" or "old grant" terms. The respondent had

purchased right in respect of the property in question from Shri Mohan

Krishan Seth, son of Shri Roop Krishan Seth after the said property was

inherited by him upon death of his father and as Shri Roop Krishan Seth

was having the property in question on "cantonment tenure", the

respondent could not have got better right than what Shri Roop Krishan

Seth had in the property in question. Therefore, even the respondent is

not having full ownership right in respect of the property in question, but is

having only "cantonment tenure" in respect of the property in question. It

has been further submitted by him that it is open to the appellant authorities

to resume the land from the one who has been granted the land on "old

grant" terms. He has submitted that the land in question is in a cantonment

8 area and in the past, land in cantonment area, belonging to the government,

was given for a limited use to civilians and it was open to the government to

resume such land at any time. He has referred to a Judgment delivered in

the case of Chief Executive Officer vs. Surendra Kumar Vakil and Ors.

1999 (3) SCC 555, to show as to how the term "old grant" is being

interpreted.

9. Thereafter it has been submitted that the respondent had filed a civil

suit in the court of Additional District and Sessions Judge FTC-6, Lucknow,

being Small Causes Case No.2 of 2000. The said suit had been dismissed

on 12.12.2006 and while dismissing the suit, the Court had come to the

conclusion that as per the general order of the Governor General in

9 Council bearing No.179, the land and trees standing on the land in question,

belong to the Government of India, Ministry of Defence. The said findings

have become final and, therefore, it has been submitted that the respondent

has no ownership in respect of the land in question. For the afore-stated

reasons, it has been submitted that the impugned order is bad in law and,

therefore, it deserves to be quashed and set aside.

10. On the other hand, it has been submitted on behalf of the learned

advocate appearing for the respondent that the respondent was the owner of

the land in question, as the land in question along with super structure, had

been purchased by the respondent from Shri Mohan Krishan Seth. The

learned advocate has also relied upon the letter dated 29-11-1996, written

10 by the Defence Estate Officer, Lucknow Cantt., which has been referred to

hereinabove. According to him, in view of the contents of the said letter, it

is clear that one of the officers of the appellants had opined that the

premises in question was in a dilapidated condition and it was not being

used and, therefore, recommendation was made for de-hiring the said

premises. The said fact, according to the learned advocate, clearly denotes

that the premises in question, belongs to the respondent, otherwise the

respondent would not have leased the premises to the appellant authorities.

The learned advocate has also submitted that the High Court had rightly

allowed the petition and, therefore, the appeal be dismissed.

11

11. We have heard the learned advocates and have also gone through

the contents of judgment delivered in the case of Chief Executive Officer

(Supra).

12. Upon perusal of the agreement dated 26.7.1948 and upon perusal of

the sale deed dated 23rd December, 1996 executed in favour of the

respondent, it is crystal clear that the land in question was held by original

grantee Shri Roop Krishan Seth on "old grant" terms under G.G.C. No. 179

dated 12.9.1836. Meaning of the said grant has been clearly explained by

this Court in the case of Chief Executive Officer (Supra) and that clearly

denotes that the vendor who sold the rights in respect of the land in

question, was never a full-fledged owner of the said land but he was given

the said land only on "old grant" terms. Being allotted the land on "old

12 grant" terms, the said allottee never became a full-fledged owner and,

therefore, he could not have transferred any right better than what he had in

respect of the land in question, to the present respondent. Shri Mohan

Krishan Seth inherited rights in respect of the said property from late Shri

Roop Krishan Seth and ultimately Shri Mohan Krishan Seth transferred his

rights to the respondent. So the respondent also got the rights which Shri

Mohan Krishan Seth had in the property in question. Thus, the respondent

was also holding the land/property in question on "old grant" terms and she

did not become a full-fledged owner of the property in question.

13. In our opinion, the High Court did not consider the fact that the

present respondent was holding the land in question only on "old grant"

terms and, therefore, she was not a full-fledged owner of the land but she

13 had the right only in respect of the super-structure put up on the land in

question, which had been given on lease to the present appellants.

14. The Learned Additional Solicitor General has drawn our attention to

the judgment delivered by this Court in the case of Chief Executive

Officer (supra) so as to explain the meaning of the term "old grant". Paras

9 and 10 of the said judgment explain the meaning of the term "old grant".

The said paras read as under:

"9. The narrow question is whether the land was held by S.N. Mukherjee on old grant basis or not. The land is in the cantonment area of Sagar. Grant of land in cantonment areas was, at all material times, governed by the general order of the Governor General-in-Council bearing No. 179 of the year 1836, known as the Bengal Regulations of 1836. Under Regulation 6 of these Regulations, the conditions of occupancy of lands in cantonments are laid down. Thereunder, no ground

14 will be granted except on the conditions set out therein which are to be subscribed to by every grantee as well as by those to whom his grant may be subsequently transferred. The first condition relates to resumption of land:

(1) The Government retains the power of resumption at any time on giving one month's notice and paying the value of such buildings as may have been authorised to be erected. (2) The ground being in every case the property of the Government, cannot be sold by the grantee.

But houses or other property thereon situated may be transferred by one military or medical officer to

another without restriction except in certain cases. (3) If the ground has been built upon, the buildings are not to be disposed of to any person of whatever description who does not belong to the army until the consent of the officer commanding the station shall have been previously obtained under his hand.

10. The High Court in its impugned judgment has reproduced extracts from the book on Cantonment Laws by J.P. Mittal, 2nd Edn., at p.

3, which may well be reproduced here:

15

"Besides municipal administration, another subject that has always loomed large on the cantonment horizon, is the question of provision of necessary accommodation for military officers near the place of their duty. This led to the issue, from time to time, of certain rules, regulations, and orders by the Governments of Bengal, Madras and Bombay Presidencies between the years of 1789 and 1899. The regulations were mostly of an identical nature. They had a twofold object in view, that of ensuring sufficient accommodation for military officers; and that of regulation of the grant of land sites. Some of these regulations are

published in this book. These rules, regulations and orders continue to be the law in force in India even after the enforcement of the British statutes (Application to India) Repeal Act, 1960, (Raj Singh v. Union of India1, Mohan Agarwal v.

Union of India2).

Under these regulations and orders, officers not provided with government quarters were allowed to erect houses in the cantonment. For this purpose ground was allotted to them with the condition that no right of property whatever in the ground 1 AIR 1973 Del 169 2 AIR 1979 All 170

16 was conferred on them and the ground continued to be the property of the State, was resumable at the pleasure of the Government by giving one month's notice and paying the value of the structures as may have been authorised to be erected. The houses or other property built on such grounds were allowed to be transferred by one military officer to another without restrictions. To civilians these could be transferred only with the prior permission of the officer commanding the station.

With the lapse of time civilians were also encouraged to build bungalows on the government

land in the cantonment on the same condition of resumption of the ground as given above and with a further condition that they may be required to rent or sell the same to any military officer. In case of disagreement about the rent or the sale price, the same was to be fixed by a committee of arbitration. These tenures under which permission was given to occupy government land in the cantonments for construction of bungalows came to be known as `old grant'. Such permission was given mostly on payment of no rent. This is how a large number of bungalows in the cantonments all over India came in the hands of civilians."

17 15. Even in the instant case, the land in question, was originally permitted

to be used by a civilian on "old grant" basis and the said fact is reflected in

the lease deed executed by late Shri Roop Krishan Seth. Moreover, even in

the sale deed executed in favour of the respondent, it has been stated that

the vendor was an "occupancy holder of the land and trees of the aforesaid

premises and owner of super structure of the bungalow...."

16. It is also pertinent to note that even in the land register the

Government of India has been shown as a "Landlord" and Shri Mohan

Krishan Seth has been shown to be having occupancy right and his nature

of right is shown to be of "old grant". These facts had been duly

18 incorporated in the counter affidavit filed by the present appellants before

the High Court.

17. It is also pertinent to note that in a civil suit filed by the respondent in

the Court of Additional District and Sessions Judge, FTC-6, Judge Lucknow

being Small Causes Case No. 2/2000 for eviction, the respondent had failed

to obtain decree against the present appellants. The said suit had been

dismissed. The Court, while dismissing the suit, had clearly come to the

conclusion that as per the general order of the GGC No. 179, the land and

the trees standing on the land etc. were the property of the Government of

India, Ministry of Defence. The Court had come to the conclusion that

the land in question was not owned by the present respondent and the

present respondent did not challenge the said findings. Unfortunately, the

19 said fact was also not considered by the High Court while allowing the

petition filed by the present respondent.

18. In view of the above legal position, it is always open to the

appellants to resume the land in question and the appellants can not be

prevented from resuming the land in question. The High Court was in error

while considering the respondent as an owner of the property in question.

19. We, therefore, set aside the Order passed by the High Court. The

appeal is allowed accordingly. No order as to costs.

........................................J. ( P. SATHASIVAM)

20 .....................................

....J. (ANIL R. DAVE)

New Delhi August 13, 2010.

21 22

This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.

Research this judgment with Miss Lucy

Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.

Try Miss Lucy free