Ultimate Ownership of All Properties Vests in the State. It is an Incident of Sovereignty, and the Government is the Paramount Title Holder also.

Saji Koduvath, Advocate, Kottayam.

Introspection

  • Governments’ rights and powers based on the doctrine, ‘Eminent Domain‘ (arises from:  dominium eminens or ‘supreme ownership’ – Wikipedia) are accepted by all democratic jurisdictions, including the UK, US, and India.  
  • In a dispute between the State and a private individual over property ownership, the burden rests upon the private individual to affirmatively establish his title supported by valid and legally admissible documentary evidence. The State enjoys a presumption of ownership. It becomes even stronger when certain factors are present—such as the land’s proximity to forest areas, coastal zones, or other ecologically sensitive locations—and when foundational revenue documents, including the General Land Register and Settlement Register, indicate a strong likelihood that the property belongs to the Government.
  • In such a dispute, if the private person fails to establish a valid title, it is not open to him to contend that the State has also failed to prove its title or discharge any burden. This is because the law recognises certain presumptions in favour of the State, particularly in cases involving land situated near forests, coastal areas, etc.
  • Disputes may arise when a piece of land is recorded as Government property in revenue or other official records, while a private individual asserts ownership based on a title deed in his possession. In such cases, courts place significant reliance on foundational documents, such as the General Land Register and the Settlement Register, as well as the prior deeds of the claimant. And, it will consider whether the doctrine nemo dat quod non habet—one cannot give what one does not have—is to be applied.

Key Decisions:

  • Usha Kapoor v. Govt.  of India, 2014-16 SCC 481: (The General Land Register maintained by the Cantonment Board under the Cantonment Act and the Rules framed thereunder is a public document and the entries therein are conclusive evidence of title and of the fact that the land is covered by an old grant. Followed: Union of India v. Ibrahim Uddin, 2012-8 SCC 148; Union of India v. Kamla Verma, 2010-13 SCC 511; Chief Executive Officer v. Surendra Kumar Vakil, AIR 1999 SC 2294.)
  • Union of India v. Ibrahim Uddin, 2012(8) SCC 148: (It is a settled legal position that the entries made in the General Land Register maintained under Cantonment Land Administration Rules are conclusive evidence of title. …… The appellate courts examined the title of Government instead of the plaintiff/respondent No. 1. The title of Government cannot be disputed. ….. The issue had been as to whether the plaintiff was the owner of the suit-land. Relied on in: Union of India v. Robert Zomawia Street, AIR 2014 SC 2721; 2014-6 SCC 707)
  • R. Hanumaiah v. Secretary to Govt of Karnataka, (2010) 5 SCC 203: (Presumption available in favour of the government – all lands which are not the property of any person or which are not vested in a local authority, belong to the government.)
  • Government of Kerala v. Joseph, AIR 2023 SC 3988 (When the land subject to proceedings wherein adverse possession has been claimed, belongs to the Government, the court is duty-bound to act with greater seriousness, effectiveness, care and circumspection as it may lead to destruction of a right/title of the State to immovable property.)
  • Chief Executive Officer v. Surendra Kumar Vakil, AIR 1999 SC 2294; 1999-3 SCC 555: (Had there been any conveyance or lease, it should have come from their custody. The Regulations, as well as the General Land Register maintained under the Cantonment Land Administration Rules of 1925, which are old documents, clearly indicate that the land is held on an old grant.)
  • Ameer Hussain v. Deputy Director of Consolidation, 1978 RD 204, 1977 AWC 1: (It would be deemed that the disputed land vested in the State, and if the other side fails, in law,  it would be taken that the land was vested in the State. Quoted in Mohd.  Shafiq v. Asstt.  Director Of Consolidation, Lucknow, 2011- 9 ADJ 24.)
  • Pierce Lessley & Company Ltd. v. Violet Ouchterlong Waoshare, AIR 1969 SC 843: (Ultimate ownership by the State of all property within the jurisdiction of the State.)
  • Chotte Khan v. Muhammed Obedulla Khan, AIR 1953 Nag. 361: (The State is the ultimate owner of all property.)
  • Sahana Industries v. State of Kerala,, 2021 KHC OnLine 7110, Kerala High Court, Devan Ramachandran, J.: (If the Settlement Register shows this land to be Government land, then certainly, the petitioner is obliged to establish their title over the property through competent documents. (Followed in: Chitharanjan v. State of Kerala, WP(C) No. 25830/2010, 24.01. 2025, Harisankar V. Menon, J.)
  • The Secretary of State for India v. Chimanlal Jamnadas, (1942)44 BomLR 295, AIR 1942 Bom 161: “Even assuming that the lease be not held as proved, the plaintiffs had no title to the land as rightly held by the lower Court and as nobody else was its owner at the time when it was occupied by the plaintiffs’ ancestor, the presumption under Section 37 of the Land Revenue Code which was also applicable before its enactment was that Government were its owner at that date. If the plaintiffs claim to remain in possession merely on the strength of their long possession in the past, though without any rightful title in them, Government had the right to assert their ownership which had not been divested by the act of the plaintiffs’ ancestor, and they had a right of resumption so long as the plaintiffs had not proved any acquisition of right in them by adverse possession against the Government.”
  • Union of India v. Laxman Yadneshwar Sathe, 2018-4 AllMR 157: “As held by the Hon’ble Apex Court therefore in the case of R. Hanumaiah and Another v. Secretary to Government of Karnataka, Revenue Department and Others (supra), the west lands are presumed to be the Government lands. Rights, entitlement and presumptions of title lie in favour of the Government, distinguished from those of private parties. As held by this Court also, way back in the year 1941, in the case of The Secretary of State for India in Council v. Chimanlal, Jamnadas and Others (1942) Indian Law Reports 358), the Government is presumed to be the owner in case of lands which are not proved to be of a private party.”
  • Satpal Nahar v. Union of India (Sanjay Karol, Tarlok Singh Chauhan, JJ.), 2017 Supp HimLR 2994; ILR 2017-4 (HP) 196: “Even otherwise, it is settled that all lands which are not the property of any person or which are not vested in a local authority, belong to the Government. All unoccupied lands are the property of the Government, unless any person can establish his right or title to any such land. This presumption available to the Government is not available to any person or individual.”

The UK/England Decisions

  • Field Common Ltd v Elmbridge Borough Council (2008): When a local authority encroached the land of the claimant for the construction of a road, and the claimant sued for trespass, it was held that the claimant (private landowner) had to show that the council encroached. Since the defendant council asserted right of way by prescription over that land, it was held that the burden was on the council to prove the elements required for prescription.
  • Delaware Mansions Limited & Others v Lord Mayor and Citizens of the City of Westminster [2001]: In the case of encroachment by tree roots from property owned by Westminster City Council into property of the claimant, it was found that the claimant had to prove that roots had encroached, the existence of damage caused by those roots (for example, damage to drains/walls etc.). The technical distinction between trees being “self‑sown” versus planted, was rejected.
  • Entick v Carrington [1765]: Government agents entered private property under warrant, seized documents. It was held that the claimant had to show that the defendants entered without lawful authority/beyond their legal power. It was also found that the defendants would have to show lawful authority (warrant, statutory power etc.) they had the burden  to show they were acting under law.

The US Decisions

  • United States v. Clarke, 445 U.S. 253 (1980): The US Supreme Court, while considering the burden of proof, made it clear that in ‘inverse condemnation’ the landowner must bring the claim, and that the landowner has the burden to demonstrate that a ‘taking’ in fact occurred. It is pointed out: “To accomplish a taking by seizure, on the other hand, a condemning authority need only occupy the land in question. Such a taking thus shifts to the landowner the burden to discover the encroachment and to take affirmative action to recover just compensation.”
  • Vaughn v. City of Muskogee, Oklahoma Civ. App., 2015: The Oklahoma Court of Civil Appeals held that in an ‘inverse condemnation’ proceeding, the landowner has the burden of proving that a taking has occurred, whether or not the government files an objection.
  • Fowler Irrevocable Trust 1992 v. City of Boulder (Colorado, 2001): The Colorado Supreme Court held that in an inverse condemnation action, the landowner has the burden to prove both (i) a ‘taking’ has occurred and (ii) the amount of compensation.

Will ‘Long Possession’ Invite Civil Suit by the State?

In Government of Andhra Pradesh v. Thummala Krishna Rao, AIR 1982 SC 1081, 1982 (2) SCC 134 (Y.V. Chandrachud,A. Varadarajan, Amarendra Nath Sen, JJ.), the Supreme Court found that the respondents and their predecessors had long possession and therefore, a Civil Court enquiry on title was required on two matters:

  • 1. whether the title was vested in the Government
  • 2. whether the title by adverse possession was perfected (by the private person) against the Government of Andhra Pradesh.

The Apex Court said it as under:

  • “The conspectus of facts in the instant case justifies the view that the question as to the title to the three plots cannot appropriately be decided in a summary inquiry contemplated by sections 6 and 7 of the Act. The long possession of the respondents and their predecessors-in- title of these plots raises a genuine dispute between them and the Government on the question of title, remembering especially that the property, admittedly, belonged originally to the family of Nawab Habibuddio from whom the respondents claim to have purchased it. The question as to whether the title to the property came to be vested in the Government as a result of acquisition and the further question whether the Nawab encroached upon that property thereafter and perfected his title by adverse possession must be decided in a properly constituted suit. May be that the Government may succeed in establishing its title to the property but until that is done, the respondents cannot be evicted summarily.”

Govt. of AP v. Thummala Krishna RaoCritical Appreciation

As pointed out in V. Laxminarasamma VS A. Yadaiah (S.B. Sinha, A.K. Ganguly & R.M. Lodha, JJ.), 2009-5 SCC 478, the ‘long possession’ and ‘adverse possession’ were considered in Thummala Krishna Rao case for the following:

  • (i) A suit for possession filed by Osmania University was dismissed earlier on the premise that Habibuddin had perfected his title by adverse possession.
  • Thereafter Osmania University requested the Government of Andhra Pradesh to take steps for summary eviction

It is clear that the Government of AP need not have gone for a civil suit, if it was definite –

  • (i) the title of the disputed property vested with the Government and
  • (ii) there wad no scope for an argument by the private person as regards adverse possession.

In V. Laxminarasamma v. A. Yadaiah (S.B. Sinha, A.K. Ganguly & R.M. Lodha, JJ.), 2009-5 SCC 478, in a Reference for determination of a question of adverse possession — whether it would come within the purview of the jurisdiction of Special Tribunal and/or Special Court constituted under the AP Land Grabbing (Prohibition) Act, 1982, noticing purported conflict in the decisions of two Division Benches — held as under:

  • 45. … We are not oblivious of a decision of this Court in Government of Andhra Pradesh v. Thummala Krishna Rao and Anr. [(1982) 2 SCC 134] wherein it was held that a question of title could not properly be decided in a summary enquiry contemplated by Sections 6 and 7 of the A.P. Land Encroachment Act, 1905. In that case, the principal question, which arose for consideration, was as to whether the property in question was in possession of the family of one Habibuddin for a long time and, thus, the same had not vested in the Government by reason of a land acquisition proceeding initiated for acquisition of the land for Osmania University. In that case, Osmania University filed a suit for possession which was dismissed on the premise that Habibuddin had perfected his title by adverse possession. Thereafter Osmania University requested the Government of Andhra Pradesh to take steps for summary eviction of the persons who are not in authorized occupation of the said plots. The observations made therein must be held to have been made in the aforementioned factual matrix.”
  • See also: Mandal Revenue Officer v. Goundla Venkaiah, AIR 2010 SC 744; 2010-2 SCC 461.

It is further clear from State of Rajasthan v. Padmavatidevi, 1995 Suppl(2) SCC 290, which observed as under:

  • “6. As noticed earlier, Section 91 of the Act prescribes a summary procedure for eviction of a person who is found to be in unauthorised occupation of Government land. The said provisions cannot be invoked in a case where the person in occupation raises bona fide dispute about his right to remain in occupation over the land. Dealing with similar provisions contained in Section 6of the Andhra Pradesh Land Encroachment Act, 1945, this Court in Govt. of A.P. v. Thummala Krishna Rao (1982) 2 SCC 134 : (1982) 3 SCR 500 has laid down that the summary remedy for eviction provided by Section 6 of the said Act could be resorted to by the Government only against persons who are in unauthorised occupation of any land which is the property of the Government and if the person in occupation has a bona fide claim to litigate he could not be ejected save by the due process of law and that the summary remedy prescribed by Section 6 was not the kind of legal process which is suited to an adjudication of complicated questions of title. For the same reasons, it can be said that summary remedy available under Section 91 of the Act is not the legal process which is suited for adjudication of complicated questions of title where the person sought to be evicted as an unauthorised occupant makes a bona fide claim regarding his right to be in possession. In such a case the proper course is to have the matter adjudicated by the ordinary courts of law.
  • 7. In the present case, Respondent 1 has put forward a bona fide claim about her right to remain in occupation over the land. The said claim raises questions involving applicability and interpretation of various laws and documents as well as investigation into disputed questions of fact involving recording of evidence. These matters could not be satisfactorily adjudicated in summary proceedings under Section 91 of the Act and can be more properly considered in regular proceedings in the appropriate forum.
  • 8. In view of the fact that these proceedings have been pending for the past 25 years, we were not disinclined to consider the claim of Respondent 1 that she is entitled to remain in occupation of the land.”
  • (Quoted in: Kaikhosrou (Chick) Kavasji Framji v. Union of India, AIR 2019 SC 1692; 2019 20 SCC 705)

The axioms, in the Government of AP v. Thummala Krishna Rao, on ‘long possession‘ and the scope of adjudication on ‘title by adverse possession‘ were not seen followed in subsequent pronouncements. Later decisions have clarified and reinforced certain key legal principles, including:

  • 1. Presumption available in favour of the government – all lands which are not the property of any person or which are not vested in a local authority, belong to the government (R. Hanumaiah v. Secretary to Govt of Karnataka, (2010) 5 SCC 203).
  • 2. The court is duty-bound to act with greater seriousness, effectiveness, care and circumspection as it may lead to destruction of a right/title of the State to immovable property (Government of Kerala v. Joseph, AIR 2023 SC 3988).

Part I

Who is the Ultimate Owner of a Property?

The answer is: ‘The State’.

Because, the reply to the following questions that determines the ‘ultimate ownership’ of a property is – ‘the State’. The questions are:

  • Who is the owner of the property:
    • that is abandoned by all,
    • that has no rightful owner,
    • over which all claims raised are invalid, and
    • over which none can raise a valid claim?

Also Read:

Escheat and Bona Vecantia

What are the legal principles behind the doctrine that the State is the ‘ultimate owner’ of all properties?

  • Generally, there are two answers:
  • First, doctrine of Escheat; that is, land is escheated or reverted to the State, as the lord paramount, on the owner’s death without legal heirs or lawful claimants.
  • Second, bona vacantia; that is, Crown takes as bona vacantia goods in which no one else can claim property as a rightful owner.

Escheat and Bona Vecantia – Incident of Sovereignty

Our Apex Court, in Pierce Leslie and Co. Ltd. v. Violet Ouchterlong Waoshare,, AIR 1969 SC 843,  appraised the principles of escheat in the Constitutional context (particularly, Article 296 of the Constitution) and held as under:

  • “In this country escheat is not based on artificial Rules of Common Law and is not an incident of feudal tenure. It is an incident of sovereignty and rests on the principle of ultimate ownership by the State of all property within its jurisdiction.”

Article 296 of the Constitution

Article 296 of the Constitution of India, provides as under:

  • “Subject as hereinafter provided, any property in the territory of India which, if this Constitution had not come into operation, would have accrued to His Majesty or, as the case may be, to the Ruler of an Indian State by escheat or lapse, or as bona vacantia for want of a rightful owner, shall if it is property situate in a State, vest in such State, and shall, in any other case, vest in the Union.”

State is the Ultimate Owner of the Property – Recognised Long Back

In Pierce Leslie and Co. Ltd. v. Violet Ouchterlong Waoshare (supra) the Supreme Court relied on the Privy Council decision in 1860 in Collector of Massulipatnam v. Cavali Venata Narrainapeli, (1859-61) 8 MIR 500, where it was declared that the doctrine of bona vacantia or escheat was a part of the law in India. In Collector of Masulipatam v. Cavary Vancata Narrainappah it was observed as under:

  • There can be, legally speaking, no unowned property, the law of escheat intervenes and prevails, and is adopted generally in all Courts of the Country alike. Private ownership not existing, the State must be owner as ultimate Lord.”

The same principle is iterated by Sinha, CJ, in in Chhote Khan v. Mohammad Obedulla Khan, AIR 1953 Nag 361, as under:

  • “The State Government is not in the position of the assignee interest of the proprietor, nor is it his successor in title, The State does not claim the proprietary interest, either through or under the outgoing proprietor. The State, as the ultimate owner of all property situate within its boundaries, naturally becomes, the owner of all property in villages, except those interests which have been recognized by the State as still vesting in or held by individuals in their rights as cultivators (‘malik-makbuza’ or otherwise) or as house-holders by virtue of being inhabitants of the village, or as having acquired by purchase or otherwise house-sites or buildings on house-sites.”

General Law of Universal Application

In Amir Hussain v. Deputy Director of Consolidation, 1978 RD 204, it had been noted as under:

  • “All important systems of Law provide for escheat to the Crown or Government of the property of a deceased person in the absence or failure of heirs.”

It is pointed out in Biswanath v. Prafulla Kumar Khan, AIR 1988 Cal 275, also that it is a General Law of universal application that ‘private ownership not existing, the State must be the owner as the ultimate Lord’.

Private Person to Prove his Title; State need not Prove Title

  • From Article 296 of the Constitution of India, it is clear that where a property:
    • is abandoned by all,
    • that has no rightful owner,
    • over which all claims raised are invalid, and
    • over which none can raise a valid claim
  • it vests with State.

Therefore, when a dispute comes as to the ownership of property between State and a ‘private person’, and the private person fails to prove his title, it is not Constitutional for him to argue that ‘the State also failed to prove its title and failed in discharging its burden’.

In Amir Hussain v. Deputy Director of Consolidation, 1978 RD 204, 1977 AWC 1, it observed as under:

  • “But, in a case where in proceedings under Section 9, the consolidator authorities reached at the conclusion that both the claimants had failed to prove their title, the necessary consequence of the finding was that the land had to be recognised as having vested in the State and in the Gaon Sabha. … To require a Gaon Sabha to file a claim at the commencement of the consolidation proceedings would be placing an impossible burden upon the Gaon Sabha because at that stage the Gaon Sabha could not possibly be in a position to know that the claim of the contending parties would be negatived and the land would be deemed to have vested in the State. In our opinion, the proper course in these cases is that if the authorities find that both the parties have failed to prove their title, and that in law the land has vested in the State under the Rule of escheat, they, in order to give effect to their findings, should direct the land to be recorded in the name of the Gaon Sabha.”
  • (Quoted in Mohd.  Shafiq v. Asstt.  Director Of Consolidation, Lucknow, 2011- 9 ADJ 24.)

In Vishwa Vijai Bharti v. Fakhrul Hasan, AIR 1976 SC 1485, it is held as to the presumption of correctness on revenue-records as under:

  • “It is true that the entries in the revenue record ought, generally, to be accepted at their face value and courts should not embark upon an appellate inquiry in to their correctness. But the presumption of correctness can apply only to genuine, not forged or fraudulent, entries. The distinction may be fine but it is real. The distinction is that one cannot challenge the correctness of what the entry is the revenue record states but the entry is open to the attack that it was Made fraudulently or surreptitiously. Fraud and forgery rob a document of all its legal effect and cannot found a claim to possessory title.”

Part II

Presumptions in Favour of Govt. Lands

(a) There is a presumption in favour of Government – all lands which are not the property of any person or which are not vested in a local authority, belong to the Government.

(b) In order to defeat the title of the Government, a claimant has to establish a clear title which is superior to or better than the title of the Government.

(c) In Pierce Lessley & Company Ltd. v. Violet Ouchterlong Waoshare, AIR 1969 SC 843, it was held as under –

  • “In this country escheat is not based on artificial rules of common law; and is not an incident of feudal tenure.  It is incident sovereignty and rests on principle of ultimate ownership by the State of all property within the jurisdiction.”

(d) In Chotte Khan v. Muhammed Obedulla Khan, AIR 1953 Nag. 361, held

  • “the State is the ultimate owner of all property situate within its boundaries”.

(e) In Ameer Hussain v. Deputy Director of Consolidation, 1978 RD 204, 1977 AWC 1, it is held that it would be deemed that the disputed land vested in State and if the other side fails, in law,  it would be taken that the land was vested in State. (Followed in: Mohd. Shafiq v. Assistant Director of Consolidation, 2011-9 ADJ 24)

(f) In R. Hanumaiah v. Secretary to Government of Karnataka, Revenue Department, (2010) 5 SCC 203, it was held as under:

  • “15. Suits for declaration of title against the government, though similar to suits for declaration of title against private individuals differ significantly in some aspects.
  • The first difference is in regard to the presumption available in favour of the government. All lands which are not the property of any person or which are not vested in a local authority, belong to the government. All unoccupied lands are the property of the government, unless any person can establish his right or title to any such land. This presumption available to the government, is not available to any person or individual. …”

(g) The law as to title of property is laid down in Union of India v. Ibrahim Uddin, 2012(8) SCC 148 as under –

  • “The appellate courts examined the title of Government instead the plaintiff/respondent No. 1.  Such a course was not warranted.  The title of Government cannot be disputed.  In any event, possession of Government for decades is not disputed.  The plaintiff shifted the case from time to time; but failed to prove his title……….   The said courts did not realize that this was not the issue to be determined, rather the issue had been as to whether the plaintiff was the owner of the suit-land.”

(h) In Government of Kerala v. Joseph, AIR 2023 SC 3988 – It was pointed out –

  • “When the land subject to proceedings wherein adverse possession has been claimed, belongs to Government, the court is duty-bound to act with greater seriousness, effectiveness, care and circumspection as it may lead to destruction of a right/title of the State to immovable property.”

(i) In State of Kerala v. Pathrose Mathai, 1970 Ker LJ 517; 1969 KerLT 507, it was held as under:

  • “There is also no presumption that a person who enters Government land, improves the same & keeps possession, is exercising acts hostile to the title of the State. This is because it is not uncommon for persons to enter upon Government land & reclain and improve such land in the hope of ultimately getting registry or lease of such land.”

(k) In Union of India v. Robert Zomawia Street, AIR 2014 SC 2721; 2014-6 SCC 707, the High Court allowed the second appeal preferred by the plaintiff and decreed the plaintiff’s suit.  The Supreme Court reversed the decree. The Apex Court quoted para 19 of the High Court Judgment.  The following can be deduced from paragraph 19:

  • No evidence to prove the old grant by the State.
  • There can be no presumption of ownership in favour of the State.
  • The plaintiff had created a high degree of probability that he was the owner.
  • The onus to prove ownership had been shifted to the State.
  • Apart from admissionsno document to indicate the old grant.
  • The state miserably failed to discharge such onus.
  • The plaintiff was able to prove his title to the suit land.
  • The courts below put the onus of proving title wrongly upon the plaintiff.
  • The concurrent findings of the courts below were consequently perverse.
  • It could not have been sustained in law and are liable to be interfered with in the second appeal.

The Apex Court, while reversing the findings of the High Court, laid down the following –

  • 1. The entries made in the GLR maintained under the Cantonment Land Administration Rules are conclusive evidence of title.
  • 2. Relied on the following findings in Union of India v. Ibrahim Uddin, (2012) 8 SCC 148) –
    • The General Land Register and other documents maintained by the Cantonment Board under the Cantonment Act, 1924 and the Rules made thereunder were public documents.
    • The certified copies of the same are admissible in evidence in view of the provisions of Section 65 read with Section 74 of the Evidence Act.
    • It is a settled legal position that the entries made in the General Land Register maintained under the Cantonment Land Administration Rules are conclusive evidence of title.
  • 3. Also relied on Union of India v. Kamla Verma (2010) 13 SCC 511, to emphasise that the documents under the GLR were conclusive evidence of title.
    • The land in question was originally permitted to be used by a civilian on an “old grant” basis.
    • This fact is reflected in the lease deed executed by the late Shri Roop Krishan Seth.
    • 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 superstructure of the bungalow…”.
    • Even in the land register, the Government of India has been shown as a “landlord” and Shri Mohan Krishan Seth has been shown to have occupancy right, and his nature of right was shown to be of “old grant”.
  • 4. Also relied on Chief Executive Officer v. Surendra Kumar Vakil, (1999) 3 SCC 555
  • 5. The argument that the word “held” meant “to own with legal title” was rejected. Therefore, the plaintiff cannot be a tenant was not accepted.
  • 6. The GLR showed that the Government was the Landlord.
  • 7. The GLR provided for the ‘table’ of rent and the details of the property.
  • 8. It was not possible to accept the contentions – since the State failed to produce the actual grant documents and there was no explanation, (1) adverse inference had to be drawn against the State, and (2) the grant not being proved, the plaintiff’s suit deserved to be decreed.
  • 9. The GLR supported the defendants’ contention that the plaintiff held the land on an old grant basis.
  • 10. The plaintiff, on the other hand, has not produced any document to show the title of his predecessor-in-interest. Nemo dat quid non habet is the maxim, which means no one gives what he does not possess, aptly applied in the case.
  • 11. The classification of the land as B3 land also points towards the same conclusion.

Chief Conservator of Forests v. Collectors – Proffers an Odd view

It is beyond doubt that the following important and subsequent decisions took a contra-view to Chief Conservator of Forests v. Collectors (supra):

  • R. Hanumaiah v. Secretary to Government of Karnataka, Revenue Department, (2010) 5 SCC 203;
  • Government of Kerala v. Joseph, AIR 2023 SC 3988.

Chief Conservator of Forests v. Collectors Stands Against Several Decisions on the following Propositions

  • 1. Mutation will not confer ‘title’ (see notes below)
  • 2. Revenue Records Do Not Confer Presumptive Value on Title (only Possession) (see notes below).

The principles in Sec. 110 and 114 CANNOT be invoked

It is held in the following decisions that the Principle ‘Possession Follows Title’ does not apply in the following situations-

  • The facts (on title/possession) are known (M.  Siddiq   v. Mahant Suresh Das, 2020-1 SCC 1)
  • There is evidence of independent possession/title (Bhavnagar Municipality v. Union of India, AIR 1990 SC 717).

As we find in M.  Siddiq  v. Mahant Suresh Das (Ayodhya Case), 2020-1 SCC 1, Section 110 or the principle title follows possession‘ applies when the facts disclose no title in either of the disputants in which case, possession alone decides (presumption cannot be invoked when the facts are known). But, with respect to the principle ‘possession follows title‘, as we find in Anathula Sudhakar  v. Buchi Reddy, AIR 2008 SC 2033, if only title is proved by one party, then only the principle ‘possession follows title’ comes in.

It is equally important that both these principles on presumption, ‘possession follows title’ and ‘title follows possession’, cannot be invoked in cases where:

  • (i) the defendants do not claim title/possession to the suit property (Devasia @ Kutty v. Jose, 2014-4 KLJ 41; 2014-3 KLT(SN) 50).
  • (ii) the facts (on title/possession) are known (M.  Siddiq   v. Mahant Suresh Das, 2020-1 SCC 1), or
  • (iii) there is evidence of independent possession/title (Bhavnagar Municipality v.. Union of India, AIR 1990 SC 717).

Mutation will not confer ‘title’ (only Presumption on Possession)

It is a settled proposition of law (i) that the mutation entry in revenue documents will not confer any right, title or interest in favour of any person and (ii) that the mutation in the revenue record is only for the fiscal purpose. Mutation is made mainly based on possession. After pointing out these legal propositions, it is observed in Jitendra Singh v. The State of Madhya Pradesh, 2021 SCC OnLine SC 802, as under:

  • “6. Right from 1997, the law is very clear. In the case of Balwant Singh v. Daulat Singh (D) By Lrs., reported in (1997) 7 SCC 137 , this Court had an occasion to consider the effect of mutation and it is observed and held that mutation of property in revenue records neither creates nor extinguishes title to the property nor has it any presumptive value on title. Such entries are relevant only for the purpose of collecting land revenue. Similar view has been expressed in the series of decisions thereafter.
  • 6.1 In the case of Suraj Bhan v. Financial Commissioner, (2007) 6 SCC 186 , it is observed and held by this Court that an entry in revenue records does not confer title on a person whose name appears in record-of-rights. Entries in the revenue records or jamabandi have only “fiscal purpose”, i.e., payment of land revenue, and no ownership is conferred on the basis of such entries. It is further observed that so far as the title of the property is concerned, it can only be decided by a competent civil court. Similar view has been expressed in the cases of Suman Verma v. Union of India, (2004) 12 SCC 58; Faqruddin v. Tajuddin (2008) 8 SCC 12; Rajinder Singh v. State of J&K, (2008) 9 SCC 368; Municipal Corporation, Aurangabad v. State of Maharashtra, (2015) 16 SCC 689; T. Ravi v. B. Chinna Narasimha, (2017) 7 SCC 342; Bhimabai Mahadeo Kambekar v. Arthur Import & Export Co., (2019) 3 SCC 191; Prahlad Pradhan v. Sonu Kumhar, (2019) 10 SCC 259; and Ajit Kaur v. Darshan Singh, (2019) 13 SCC 70.”

Revenue Records Do Not Confer Presumptive Value on Title

The Supreme Court in  Smt. Bhimabai Mahadeo Kambekar v. Arthur Import and Export Company (2019) and Commissioner, Bruhath Bangalore Mahanagra Palike v. Faraulla Khan (2021)observed that mutation in revenue records will not confer or lose title (Relied on Sawarni (Smt.) v. Inder Kaur (1996) 6 SCC 223, Balwant Singh & Anr. v. Daulat Singh (dead) by L.Rs. & Ors. (1997) 7 SCC 137,  Narasamma & Ors. v. State of Karnataka & Ors. (2009) 5 SCC 591).

As pointed out above, it is observed by the Apex Court in State of AP v. Star Bone Mill & Fertiliser Company, (2013) 9 SCC 319 that revenue record is not a document of title; it merely raises a presumption in regard to possession (Quoted in M.  Siddiq   v. Mahant Suresh Das, 2020-1 SCC 1). The argument as to ownership based upon entries in the revenue records had been negated in Prahlad Pradhan  v. Sonu Kumhar,(2019) 10 SCC 259. It was held that the revenue record does not confer title to the property nor do they have any presumptive value on the title. (Quoted in Prabhagiya Van Adhikari Awadh Van Prabhag v. Arun Kumar Bhardwaj (SC): 2021)

If Settlement Register says Government Land, Petitioner to Establish Title

In Vallikunnil Janaki Amma v. Sree Amruthamangalam Kshethram MoorthiKozhikode, 2014 (1) KHC 57, Kerala High Court, referring to the decision of the Apex Court in Sukhdev Singh v. Maharaja Bahadur of Gidhaur, AIR 1951 SC 288, observed as under:  

  • “Even though Ext. A2 is only an extract of the Settlement RegisterAdangal extract which may not by itself prove or confer title to a party in whose name the property stood registered, it can be accepted as evidence of title when there is no contra evidence. Admittedly it is adjacent to Amruthamangalam temple. The temple compound and this suit property which is adjacent to the temple are shown to be of Amruthamangalam Devaswom as per revenue record. In these circumstances, the contention that this property did not and does not belong to the temple/Devaswom cannot be sustained at all.” (Referred to in: Kunhimangalam Devaswam v. State of Kerala (2022 KHC OnLine 7354), 6 April, 2022, Anil K. Narendran, J. and Chitharanjan v. State of Kerala, WP(C) No, 25830/2010,24.01. 2025, Harisankar V. Menon, J.)

In Sahana Industries v. State of Kerala, in WP(C) 20520/2021 (2021 KHC OnLine 7110), Kerala High Court (Devan Ramachandran, J.) held (October 11, 2021) as under:

  • “… If the Settlement Register shows this land to be Government land, then certainly, the petitioner is obliged to establish their title over the property through competent documents”. (Referred to in: Chitharanjan v. State of Kerala, WP(C) No. 25830/2010, 24.01. 2025, Harisankar V. Menon, J.)

In Chitharanjan v. State of Kerala, WP(C) No. 25830/2010 (2025:KER:5422) 24.01. 2025 (Harisankar V. Menon, J.) it is pointed out as under:

  • “7. …. In the settlement register at Ext. R1(a), there is no dispute that the entire properties under old Survey No. 2211 having an extent in excess of 107 Acres are shown as “puramboke….
  • 8…. As regards the petitioner in WP(C) No. 25830 of 2010 also, the title is traceable to some documents of the Attingal Sub Registry of the yeas 1959, 1957 and 1061. But, it is categorically found that even in these documents, there is no mention as to the receipt of pattayam with respect to the property in question.
  • 11. …. As already noticed, the settlement register describes the property as “Puramboke”. … In view of the discussions made above, I am of the opinion that the contentions raised by the learned Senior Government Pleader with respect to the malpractices committed, cannot be brushed aside.
  • 13….. However, I notice that WP(C) No.25830 of 2010 the entry with respect to the Settlement Register is to be considered at first, which admittedly is against the petitioner. The case of the State is that some foul play is carried out subsequently at the instance of those interested and therefore, the subsequent entries cannot be acted upon.
  • 14. On the other hand, the learned Government Pleader relied on Vallikunnil Janaki Amma and Ors. v. Sree Amruthamangalam Kshethram Moorthi, Kozhikode and Anr. [2014 (1) KHC 57], which laid down the principle with respect to the acceptability/relevance of the Settlement Register. As already noticed, I have found that the Settlement Register describes the property under old Survey No. 2211 as “Puramboke”. To the same effect is the judgment of a learned Single Judge in WP(C) No. 20520 of 2021 dated 11.10.2021. This Court further notices the judgment of the Apex Court in Suraj Bhan and Ors. v. Financial Commissioner and Ors. [(2007) 6 SCC 186] which held that mere entry in the revenue records does not confer title on a person. As already noticed, in view of the entries in the Settlement Register, the requirement of an appropriate assignment cannot be lost sight of.

In Travancore Devaswom Board v. Mohanan Nair M.N.,  (2013) 3 KLT 132, (T.R. Ramachandran Nair, J ; A.V. Ramakrishna Pillai, J), it is observed as under:

  • “18. …. The land register as well as the settlement register will establish the plea of the Board that the property having an extent of 2.26 acres is Temple property. Thus, Section 27 of Act of 1950 is clearly attracted and the property is clearly Devaswom property.”
  • “51. As far as the property herein is concerned, the land register and the settlement register produced herein are relevant. The property having the entire extent of 2.26 acres is described as ”kavu” (holy grove) in the settlement register. In the land register also it is described as ”kshethram irippu sthalam” (property where the temple is situated). No other document or other evidence is there to prove the contrary. Therefore, these documents will definitely show that the item of property will fit in with the requirement of Section 3(1)(x) of the Act.”
  • “75. … Apart from that, in the light of Section 27 of the Travancore Cochin Hindu Religious Institutions Act and in the light of the settlement register and land register, the property is described as Temple puramboke and not Government puramboke. Further Government lands are covered by the exemption u/s 3(1)(x) of the Land Reforms Act and therefore he cannot claim any fixity of tenure. There is no claim by the Government here to the property.”

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Law on Summons to Defendants and Witnesses

Saji Koduvath, Advocate, Kottayam.

PROVISIONS of the CPC as to Issuance of Summons IN A NUTSHELL

Sec.CaptionCrux of Provisions in a nutshell
    27.Period within which defendant be required to appear and answer the claim of the suit – from date of the institution of the suit.Not beyond thirty days.  
          28.(1) Manner (Rules) of service of summons where defendant resides in another State In such manner as may be prescribed by rules in that State
  (2) How to issue summons by the Court to which such summons is sent; and how to return the summons.The Court to which such summons is sent, shall proceed as if it had been issued by such Court; and shall then return the summons to the Court of issue together with the record (if any) of its proceedings with regard thereto.
  (3) What language Where the language of the summons sent for service is different. Where the language of the summons sent for service is different, a translation of the record,—
(a) in Hindi, where the language of the Court issuing the summons is Hindi, or
(b) in Hindi or English where the language of such record is other than Hindi or English.
29.Service of foreign summonses. Summonses and other processes issued by
(a) any Court established in any part of India to which this Code do not extend, or
(b) any Court established by the Central Government outside India, or
(c) any other Court outside India to which the Central Government has, by notification, declared the provisions of this section to apply,
How summons sent to the Courts in the territories to which this Code extends is served?Summons may be sent to the Courts in the territories to which this Code extends, and served as if they were summonses issued by such Courts.
30.Power to order discovery and the like.  The Court may
(a) make such orders as may be necessary in all matters relating to the delivery and answering of interrogatories, the admission of documents and facts, and the discovery, inspection, production, impounding and return of documents or other material objects producible as evidence;
(b) issue summonses whose attendance is required to give evidence or to produce documents or such other objects;
(c) order any fact to be proved by affidavit.
31.Procedure for issue of summons to witness.The provisions in sections 27, 28 and 29 shall apply.
    32.How the Court compels the attendance of witnesses.  The Court may compel the attendance and for that purpose may
(a) issue a warrant for his arrest;
(b) attach and sell his property;
(c) impose a fine upon him not exceeding five thousand rupees;
(d) order him to furnish security for his appearance and in default commit him to the civil prison.

Order V: Issue and Service of Summons

 Rule 1 (1) What is required in summons?To appear and to file the written statement of his defence  within thirty days from the date of service summons
 Where the defendant fails to file the written statement within thirty days – Effect?Allowed to file the same on such other days specified by the Court for reasons to be recorded in writing, but which shall not be later than ninety days from the date of service of summons
   (2) Appearance of  defendant – How?(a) In person, or
(b) by a pleader duly instructed, or
(c) by a pleader accompanied by some person able to answer all such questions.
2.Copy of plaint be accompanied.Every summons shall be accompanied by a copy of the plaint.
3.(1)Where Court sees reason to require the personal appearance – How to deal?The summons shall Order him to appear in person.
  4.When to order appear-in-person?Resident
within the local limits of the Court’s ordinary original jurisdiction, or
at place less than fifty miles from the court-house or
where there is railway or other established public conveyance – less than two hundred miles.
5.Summons to be for…Either to settle issues or for final disposal.
6.How period fixed for appearance of defendantFixed with reference to the current business of the Court; and allow the defendant sufficient time to enable him to appear and answer on such day.
  7.What should be the Order as to produce documents in the summonsThe summons shall Order the defendant to produce all documents or copies thereof specified in rule 1A of Order VIII in his possession or power upon which he intends to rely in support of his case.
8.Where the summons is for the final disposal of the suit, what should be directed? Direct the defendant to produce, all witnesses.
              9.    How should be delivery of summons by Court
(1) Where the defendant resides within the jurisdiction of the Court or has an agent within that jurisdiction:
The summons shall be delivered to the proper officer as are approved by the Court.
(2) The proper officer may by an officer of another Court:The summons may be sent to him.
(3) How the services of summons may be made?By delivering a copy thereof by registered post acknowledgement due addressed to the defendant or his agent empowered to accept the service,
or by speed post or by such courier services
or by any other means of transmission of documents (including fax message or electronic mail service) provided by the rules made by the High Court
At whose expenses the service of summons ne made?The plaintiff’s.
 (4) where a defendant resides outside the jurisdiction of the CourtWhere a defendant resides outside the jurisdiction of the Court, and the Court directs that the service of summons by such mode in sub-rule (3) (except by registered post acknowledgment due), the provisions of rule 21 shall not apply. (Rule 21 applies to service of summons where defendant resides within jurisdiction of another Court – within or without the State. Under this rule summons is sent by its officers or by post to any Court having jurisdiction in the place where the defendant resides.)
 (5) When an acknowledgment is received back to the effect that the defendant or his agent had refused to to accept the summons
The Court issuing the summons shall declare that the summons had been duly served on the defendant
Where the summons was properly addressed, and acknowledgment has not been received by the CourtThe declaration referred to in this sub-rule shall be made notwithstanding the fact that acknowledgment, has not been received by the Court within thirty days from the date of issue of summons.
9A.(1) When summons given to the plaintiff for service?In addition to the service under rule 9 on the application of the plaintiff,
 (2) How the service shall be effected?By delivering to the defendant a copy thereof signed by the Judge or such officer or by such mode of service as is referred to in sub-rule (3) of rule 9.
 (3) What all provisions apply?The provisions of rules 16 and 18 shall apply to a summons served under this rule as if the person effecting service were a serving officer.
 (4) When re-issue summons to be served by the Courton the application of the party If such summons, when tendered, is refused or if the person served refuses to sign an acknowledgment of service or for any reason such summons cannot be served personally.
 10.Mode of service.By delivering or tendering a copy thereof signed by the Judge or such officer and sealed with the seal of the Court.
 11.where there are more defendants than oneService of the summons shall be made on each defendant. 
 12.Service on defendant, or on his agent.Wherever it is practicable service shall be made on the defendant or an agent. 
 13.(1)  Service on agent by whom defendant carries on business. In a suit relating to any business or work, service on any manager or agent shall be good service.   
 14.Service on agent in charge for immovable property.Where the defendant has no agent empowered it may be made on any agent of the defendant in charge of the property.
 15.Where service may be on an adult member of defendant’s family.  Where there is no likelihood of his being found at the residence within a reasonable time and he has no agent empowered – service may be made on any adult member of the family, whether male or female, who is residing with him.  Explanation- A servant is not a member of the family.
 16.Person served to sign acknowledgement.  Where the serving officer delivers a copy of the summons – he shall require the signature of the person to whom the copy is so delivered to an acknowledgement of service endorsed on the original summons. 
 17.Procedure when defendant refuses to accept service, or cannot be found.  Where the defendant or his agent refuses to sign or where serving officer cannot find defendant, and no agent to accept service, nor any other person – service be made, the serving officer shall affix a copy of the summons on the outer door or some other conspicuous part of the house in which the defendant ordinarily resides or carries on business and shall then return the original to the Court with a report and the name and address of the person (if any) by whom the house was identified and in whose presence the copy was affixed.
 18. Endorsement of time and manner of service.  The serving officer shall, where the summons has been served under rule 16, endorse on the original summons, a return stating time and manner summons was served, and the name and address of the person (if any) identifying the person served and witnessing the delivery of the summons. 
 19.Examination of serving officer.  Where summons is returned under rule 17, the Court shall, if the return is not verified by the affidavit examine the serving officer on oath, touching his proceedings, and may make such further enquiry; and shall either declare summons duly served or order such service as it thinks fit.
19A. (1)  Simultaneous issue of summons for service by post in addition to personal service.  Court shall, in addition to, and simultaneously with, issue of summons for service in rules 9 to 19 also direct summons to be served by registered post, or his agent Provided that nothing in this sub-rule shall require the Court to issue a summons by registered post, where, in the circumstances of the case, the Court considers it unnecessary. 
(2) When an acknowledgment is received back to the effect that the defendant or his agent had refused to to accept the summons
The Court issuing the summons shall declare that the summons had been duly served on the defendant
Where the summons was properly addressed, and acknowledgment has not been received by the CourtThe declaration referred to in this sub-rule shall be made notwithstanding the fact that acknowledgment, has not been received by the Court within thirty days from the date of issue of summons.  
20.Substituted service.   (1) Where the Court is satisfied there is reason to believe that the defendant is avoiding service, Court shall order the summons to be served by affixing in the Court-house, and also upon conspicuous part of the house in which the defendant is known to have last resided or in such other manner as the Court thinks fit.
(1A) advertisement in a newspaperWhere the Court orders advertisement in a newspaper, it shall be a daily newspaper circulating in the locality the defendant resided,
(2) Effect of substituted service- Shall be as effectual as if it had been made on the defendant personally. 
(3) Where service substituted, time for appearance to be fixed- Where service is substituted by order of the Court, the Court shall fix such time for the appearance of the defendant as the case may require.
 21.Service of summons where defendant resides within jurisdiction of another Court.Summons may sent by the Court within or without the State, either by one of its officers or by post to any Court having jurisdiction in the place where the defendant resides.
 22.Service of summons within presidency towns – of Calcutta, Madras and Bombay -issued by Courts outside.  It shall be sent to the Court of Small Causes within whose jurisdiction it is to be served.
 23.Duty of Court to which summons is sent.Proceed as if it had been issued by such Court and shall then return the summons to the Court of issue, together with the record of its proceedings.
 24.Service on defendant in prison.  Shall be delivered or sent by post to the officer in charge of the prison.
 25.Service where defendant resides out of India and has no agent.Shall be addressed to the defendant at the place where he is residing and sent to him by post.
Bangladesh or PakistanMay be sent to any Court in that country (not being the High Court) having jurisdiction in the place where the defendant resides:
where any such defendant is a public officer in Bangladesh or PakistanMay be sent for service on the defendant, to such officer or authority in that country as the Central Government may, by notification specify.
 26.Service in foreign territory through Political Agent or Court.May be sent to such Political Agent or Court, by post, or otherwise, or if so directed by the Central Government, through the Ministry of that Government dealing with foreign affairs, or in such other manner as may be specified by the Central Government
 26A.Summonses to be sent to officer to foreign countries. Where Central Government has declared summonses may be sent to an officer of the Governmentmay be sent to such officer, through the Ministry of the Government of India dealing with foreign affairs;   and if such officer returns any such summons with an endorsement purporting to have been made by him that the summons has been served on the defendant, such endorsement shall be deemed to be evidence of service.
 27.Service on civil public or on servant of railway officer or on servant of railway company or local authority.send it for service to the head of the office in which he is employed together with a copy to be retained by the defendant.
 28.Service on soldiers, sailors or airmen.Court shall send the summons for service to his commanding officer.
 29.Duty of person to whom summons is delivered or sent for service,under rule 24, rule 27 or rule 28(1)  such person shall be bound to serve it if possible and to return it under his signature, with the written acknowledgement of the defendant.
(2) Where from any cause service is impossiblesummons shall be returned with a full statement of such cause and of the steps taken to procure service.
 30.Substitution of letter for summons.(1) The Court may, substitute for a summons a letter signed by the Judge or such officer, where the defendant is of a rank entitling him to such mark of consideration.
   (3) A letter so substituted may be sent to the defendant by post or by a special messenger selected by the Court, or in any other manner which the Court thinks fit; and where the defendant has an agent empowered to accept service, the letter may be delivered or sent to such agent.

Order 16 : SUMMONING AND ATTENDANCE OF WITNESSES

1.  List of witnesses and summons to witnesses(1) On or before such date as the Court may appoint,
and not later than fifteen days after the issues are settled,
the parties shall present in Court a list of witnesses
and obtain summonses to such person .
  (2) A party desirous of obtaining any summons
shall file an application stating the purpose for which the witness is proposed to be summoned.
  (3) The Court may permit a party to call any witness,
if shows sufficient cause for the omissionin the said list.
  (4)Summonses may be obtained by the parties on an application to the Court within five days of presenting the list of witnesses under sub-rule (1).
 1A. Production of witnesses without summonsA party to the suit may, without applying for summons bring any witness to give evidence or to produce documents.
 2. Expenses of witnesses to be paid into Court on applying for summons(1) The party applying for a summons shall,
before the summons is granted
and within not be later than seven days from the date of making application under sub-rule (4) of rule 1,
pay into Court such a sum of money as appears to the Court to be sufficient to defray the travelling and other expenses of the person summoned.
 Payment  in the case of an expert(2) In determining the amount the Court may,
in the case of an expert, allow reasonable remuneration for the time occupied both in giving evidence and in performing any work of an expert character necessary for the case.
  regard shall be had, to a any rules made in that behalf(3) Where the Court is subordinate to High Court, regard shall be had, in fixing the scale of such expenses to a any rules made in that behalf.
  Payment(4) Expenses to be directly paid to witnesses   Where the summons is served directly by the party on a witness, the expenses referred to in sub-rule (1) shall be paid to the witness by the party or his agent.
 3. Tender of expenses to witnessThe sum so paid into Court shall be tendered at the time of serving the summons.
 4. Procedure where insufficient sum paid in(1) Where it appears to the Court that the sum paid into Court is not sufficient , the Court may direct such further sum, and, in case of default, may Order such sum to be levied by attachment and sale of the movable property of the party obtaining the summons; or the Court may discharge the person summoned without requiring him to give evidence; or may both Order such levy and discharge such person as aforesaid.
  Expenses of witnesses detained more than one day(2) Expenses of witnesses detained more than one day
Where it is necessary to detain the person summoned for a longer period than one day, the Court may, from time to time, Order the party at whose instance he was summoned to pay into Court such sum as is sufficient to defray the expenses of his detention for such further period, and, in default of such deposit being made, may Order such sum to be levied by attachment and sale of the movable property of such party; or the Court may discharge the person summoned without requiring him to give evidence, or may other Order such levy and discharge such person as aforesaid.
 5. Time, place and purpose of attendance to be specified in summonsEvery summons for the attendance of a person to give evidence or to produce a document shall specify the time and place at which he is required to attend, and also whether his attendance is required for the purpose of giving evidence or to produce a document, or for both purposes; and any particular document, which the person summoned is called on to produce, shall be described in the summons with reasonable accuracy.
 6. Summons to produce documentAny person may be summoned to produce a document, without being summoned to give evidence, and any person summoned merely to produce a document shall be deemed to have complied with the summons if he causes such document to be produced instead of attending personally to produce the same.
See Blog: Notice to Produce Documents in Civil Cases
 7. Power to require persons present in Court to give evidence or produce documentAny person present in Court may be required by the Court to give evidence or to produce any document then and there in his possession or power.
8.  Summons how servedEvery summons under this Order, not being a summons delivered to a party for service under rule 7A, shall be served as nearly as may be in the same manner as a summons to a defendant and the rules in Order V as to proof of service shall apply in the case of all summonses served under this rule.

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Pecuniary & Subject-Matter Jurisdiction of Civil Courts

Saji Koduvath, Advocate, Kottayam.

Provisions of the CPC as to Jurisdiction in a Nutshell

Sec.CaptionProvisions in a nutshell
15Civil suits to be institutedIn the Court of the lowest grade competent to try it.
16Suits for:
(a) recovery of immovable property
(b) partition of immovable property
(c) foreclosure, sale or redemption in the case of a mortgage of or charge
(d) any other right to or interest in immovable property
(e) compensation for wrong to immovable property,
(f) recovery of movable property actually under distraint or attachment
To be instituted in
Local limits of the court whose jurisdiction the property or subject-matter is situated.

It will be subject to the pecuniary or other limitations.

17Suits for:
(a) relief respecting immovable property, or
(b) compensation for wrong to immovable property –
situate within jurisdiction of different Courts.
To be instituted
In any Court within the local limits of whose jurisdiction any portion of the property is situate.
18Local limits of jurisdiction of Courts are uncertain.Suit to be instituted
Any one of those Courts. Record a statement to that effect. Appellate or Revisional Court shall not allow the objection unless, at the time of the institution – no reasonable ground for uncertainty and there has been a consequent failure of Justice.
19Compensation for wrongs to person or movables.If the wrong was done within the local limits of one Court and the defendant resides within the limits of another Court, the suit may be instituted at the option of the plaintiff in either of the said Courts.
20Other suitsSuit to be instituted in
Court within the local limits of whose jurisdiction:
(a) the defendant resides, or carries on business; or
(b) any of the defendants resides, or carries on business, provided that in such case either the leave of the Court is given, or the defendants acquiesce in such institution; or
(c) the cause of action, wholly or in part, arises.
21Objections to jurisdiction
(a) as to the place of suing or
(b) as to the competence of a Court with reference to the pecuniary limits of its jurisdiction
No such objection shall be allowed by any appellate or Revisional Court unless such objection was taken in the Court of first instance at the earliest possible opportunity, and unless there has been a consequent failure of justice.
21A. Suit to set aside decree (in former suit between the same parties) on objection as to –place of suing. No suit shall lie on ground based on the place of suing.
99. Whether decree to be reversed or modified, nor shall, any case be remanded, in appeal for error or irregularity not affecting merits or jurisdictionNo decree shall be reversed or substantially varied on account of (a) any misjoinder or non-joinder of parties or causes of action or (b) any error, defect or irregularity, not affecting the merits of the case or the jurisdiction of the Court.Provided that nothing in this section shall apply to non-joinder of a necessary party.
99A. Whether order under section 47 to be refused or modified unless decision of the case is prejudicially affectedNo order under section 47 shall be reversed or varied on account of – any error, defect or irregularity in any proceeding relating to such order, unless such error, defect or irregularity has prejudicially affected the decision of the case.

PART I

Introduction

“Ubi Jus Ibi Remedium” (where there is a right, there is a remedy) is a fundamental principle of civil law. It ensures that if and when a Civil Right is infringed, law confers a civil remedy. It includes:

  • Declaration
  • Injunction or recovery, or
  • Damages or compensation.

Section 9 CPC is casted in enforcement of the principle, “Ubi Jus Ibi Remedium”. The jurisdiction of the Civil Court under Section 9 is a plenary one.

Section 9 of CPC reads as under:

  • 9. Courts to try all civil suits unless barred—The Courts shall (subject to the provisions herein contained) have jurisdiction to try all suits of a civil nature excepting suits of which their cognizance is either expressly or impliedly barred.

PART II

Pecuniary & Territorial (Place of Filing) Jurisdiction in Civil Suits

The Civil Procedure Code governs the law as to the court in which a civil suit is to be filed.  Various aspects as to the same are contained in Sec. 15 to 21 of the CPC, under the caption ‘Place of Suing’.

With respect to the jurisdiction of courts, it is held in Harshad Chiman Lal Modi v. DLF Universal Ltd., AIR 2005 SC 4446, as under:

  • “The jurisdiction of a court may be classified into several categories. The important categories are:
    • (i)   Territorial or local jurisdiction;
    • (ii)  Pecuniary jurisdiction; and
    • (iii) Jurisdiction over the subject matter.

Sec. 15 to 21 of the CPC read as under:

  • Section 15 Court in which suits to be instituted.
  • Every suit shall be instituted in the Court of the lowest grade competent to try it.
  • Section 16 Suits to be instituted where subject-matter situate.
  • Subject to the pecuniary or other limitations prescribed by any law, suits
    • (a) for the recovery of immovable property with or without rent or profits,
    • (b) for the partition of immovable property,
    • (c) for foreclosure, sale or redemption in the case of a mortgage of or charge upon immovable property,
    • (d) or the determination of any other right to or interest in immovable property,
    • (e) for compensation for wrong to immovable property,
    • (f) for the recovery of movable property actually under distraint or attachment,
  • shall be instituted in the Court within the local limits of whose jurisdiction the property is situate:
  • Provided that a suit to obtain relief respecting, or compensation for wrong to, immovable property held by or on behalf of the defendant may, where the relief sought can be entirely obtained through his personal obedience, be instituted either in the Court within the local limits of whose jurisdiction the property is situate, or in the Court within the local limits of whose jurisdiction the defendant actually and voluntarily resides, or carries on business, or personally works for gain.
  • Explanation.– In this section “property” means property situate in 1[India].
  • Section 17 Suits for immovable property situate within jurisdiction of different Courts.
  • Where a suit is to obtain relief respecting, or compensation for wrong to, immovable property situate within the jurisdiction of different Courts, the suit may be instituted in any Court within the local limits of whose jurisdiction any portion of the property is situate:
  • Provided that, in respect of the value of the subject-matter of the suit, the entire claim is cognizable by such Court.
  • Section 18 Place of institution of suit where local limits of jurisdiction of Courts are uncertain.
  • (1) Where it is alleged to be uncertain within the local limits of the jurisdiction of which of two or more Courts any immovable property is situate, any one of those Courts may, if satisfied that there is ground for the alleged uncertainty, record a statement to that effect, and thereupon proceed to entertain and dispose of any suit relating to that property, and its decree in the suit shall have the same effect as the property were situate within the local limits of its jurisdiction:
  • Provided that the suit is one with respect to which the Court competent as regards the nature and value of the suit to exercise jurisdiction.
  • (2) Where a statement has not been recorded under sub-section (1), and an objection is taken before an Appellate or Revisional Court at a decree or order in a suit relating to such property was made by a Court not having jurisdiction where the property is situate, the Appellate or Revisional Court shall not allow the objection unless in its opinion there was, at the time of the institution of the suit no reasonable ground for uncertainty as to the Court having jurisdiction with respect thereto and there has been a consequent failure of Justice.
  • Section 19 Suits for compensation for wrongs to person or movables.
  • Where a suit is for compensation for wrong done to the person or to movable property, if the wrong was done within the local limits of the jurisdiction of one Court and the defendant resides, or carries on business or personally works for gain, within the local limits of the jurisdiction of another Court, the suit may be instituted at the option of the plaintiff in either of the said Courts.
  • Section 20 Other suits to be instituted where defendants reside or cause of action arises.
  • Subject to the limitations aforesaid, every suit shall be instituted in a Court within the local limits of whose jurisdiction-
  • (a) the defendant, or each of the defendants where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain; or
  • (b) any of the defendants, where there are more than one, at the time of the commencement of the suit, actually and voluntarily resides, or carries on business, or personally works for gain, provided that in such case either the leave of the Court is given, or the defendants who do not reside, or carry on business, or personally work for gain, as aforesaid, acquiesce in such institution; or
  • (c) the cause of action, wholly or in part, arises.
  • Explanation I.- Where a person has a permanent dwelling at one place and also a temporary residence at another place, he shall be deemed to reside at both places in respect of any cause of action arising at the place where he has such temporary residence.
  • Explanation II.- A corporation shall be deemed to carry on business at its sole or principal office in [India] or, in respect of any cause of action arising at any place where it has also a subordinate office, at such place.

PART III

Defect on the basis of Pecuniary and Territorial Jurisdiction

Generally speaking, the defects on the basis of pecuniary and territorial jurisdiction are not so serious compared to the defect for lack of jurisdiction in the subject matter or inherent lack of jurisdiction. It is reflected in Sec. 21, 21A, 99 and 99A, CPC.

Section 21, 21A, 99 and 99A CPC reads as under:

  • 21. Objections to jurisdiction.
  • (1)] No objection as to the place of suing shall be allowed by any appellate or Revisional Court unless such objection was taken in the Court of first instance at the earliest possible opportunity and in all cases where issues or settled at or before such settlement, and unless there has been a consequent failure of justice.
  • (2) No objection as to the competence of a Court with reference to the pecuniary limits of its jurisdiction shall be allowed by any Appellate or Revisional Court unless such objection was taken in the Court of first instance at the earliest possible opportunity, and in all cases where issues are settled, at or before such settlement, and unless there has been a consequent failure of justice.
  • (3) No objection as to the competence of the executing Court with reference to the local limits of its jurisdiction shall be allowed by any Appellate or Revisional Court unless such objection was taken in the executing Court at the earliest possible opportunity, and unless there has been a consequent failure of justice.]
  • 21A. Bar on suit to set aside decree on objection as to place of suing.
  • No suit shall lie challenging the validity of a decree passed in a former suit between the same parties, or between the parties under whom they or any of them claim, litigating under the same title, on any ground based on an objection as to the place of suing.
  • Explanation.-The expression “former suit” means a suit which has been decided prior to the decision in the suit in which the validity of the decree is questioned, whether or not the previously decided suit was instituted prior to the suit in which the validity of such decree is questioned. 
  • 99. No decree to be reversed or modified for error or irregularity not affecting merits or jurisdiction.
  • No decree shall be reversed or substantially varied, nor shall any case be remanded in appeal on account of any misjoinder or non-joinder of parties or causes of action or any error, defect or irregularity in any proceedings in the suit, not affecting the merits of the case or the jurisdiction of the Court.
  • Provided that nothing in this section shall apply to non-joinder of a necessary party.
  • 99A. No order under section 47 to be refused or modified unless decision of the case is prejudicially affected.
  • Without prejudice to the generality of the provisions of section 99, no order under section 47 shall be reversed or substantially varied, on account of any error, defect or irregularity in any proceeding relating to such order, unless such error, defect or irregularity has prejudicially affected the decision of the case.

No reversal purely on Technical Grounds, unless Failure of Justice

In Kiran Singh v. Chaman Paswan, AIR 1954 SC 340,  it was observed as under:

  • “The policy underlying sections 21 and 99 of the Civil Procedure Code and Section 11 of the Suits Valuation Act is the same, namely, that when a case had been tried by a Court on the merits and judgment rendered, it should not be liable to be reversed purely on technical grounds, unless it had resulted in failure of justice, and the policy of the Legislature has been to treat objections to jurisdiction both territorial and pecuniary as technical and not open to consideration by an appellate Court, unless there has been a prejudice on the merits”

See Blog (Cllick): Natural Justice – Not an Unruly Horse, Cannot be Placed in a Straight-Jacket & Not a Judicial Cure-all.

Section 21A CPC Takes-in Objection as to Pecuniary Jurisdiction also

In Subhas Mahadevasa Habib v. Nemasa Ambasa Dharmadas, AIR 2007 SC 1828, it is held as under:

  • “Though Section 21A of the Code speaks of a suit not being maintainable for challenging the validity of a prior decree between the same parties on a ground based on an objection as to “the place of suing”, there is no reason to restrict its operation only to an objection based on territorial jurisdiction and excluding from its purview a defect based on pecuniary jurisdiction.”

When parties, by agreement, to confer jurisdiction on a Court

Our Apex Court held in Hakam Singh v. Gammon (India) Ltd., AIR 1971 SC 740, as under:

  • “It is not open to the parties by agreement to confer by their agreement jurisdiction on a Court which it does not possess under the Code. But where two courts or more have under the Code of Civil Procedure jurisdiction to try a suit or proceeding an agreement between the parties that the dispute between them shall be tried in one of such Courts is not contrary to public policy. Such an agreement does not contravene s. 28 of the Contract Act.”

In Seth Hiralal Patni vs Sri Kali Nath, 1962 AIR 199, the Supreme Court held as under:

  • “The decision of the Privy Council in the case of Ledgard v. Bull, (1886) LR 13 IA 134, is an authority for the proposition that consent or waiver can cure defect of jurisdiction but cannot cure inherent lack of jurisdiction. In that case, the suit had been instituted in the Court of the Subordinate Judge, who was incompetent to try it. By consent of’ the parties, the case was transferred to the Court of the, district Judge for convenience of trial. It was laid down by the Privy Council that as the Court in the suit had been originally instituted was entirely lacking in jurisdiction, in the sense that it was incompetent to try it, whatever happened subsequently was null and void because consent of parties could not operate to confer jurisdiction on a Court which was incompetent to try the suit. That decision has no relevance to a case like the present where there could be no question of inherent lack of jurisdiction in the sense that the Bombay High Court was incompetent to try a, suit of that kind. The objection to its territorial jurisdiction is one which does not go to the competence of the Court and can, therefore, be waived. In the instant case, when the plaintiff obtained the leave of the, Bombay High Court on the original side, under el. 12 of the Letters Patent, the correctness of the procedure or of the order granting the leave could be. questioned by the defendant or the objection could be waived by him. When he agreed to refer the matter to arbitration through Court, he would be deemed to have waived his objection to the territorial jurisdiction of the Court, raised by him in his written statement. It is well settled that the objection as to local jurisdiction of a Court does not stand on the same footing as an objection to the competence of a Court to try a case. Competence of a Court to try a case goes to the very root of the jurisdiction, and where it is lacking, it is a case of inherent lack of jurisdiction. On the other hand, an objection as to the local jurisdiction of a Court can be waived and this principle has been given a statutory recognition by ‘enactments like s. 21 of the Code of Civil Procedure. Having consented to have the controversy between the parties resolved by reference to arbitration through Court, the defendant deprived himself of the right to question the authority of the Court to refer the matter to arbitration or of the arbitrator to render the award. It is clear, therefore, that the defendant is estopped from challenging the jurisdiction of the Bombay High Court to entertain the suit and to make the reference to the arbitrator. He is equally estopped from challenging the authority of the arbitrator to render the award.”

Availability of Alternative Forum – Objection be Taken at the Earliest,

It is held by our Apex Court Kiran Singh v. Chaman Paswan: AIR 1954 SC 340. as under:

  • “The policy underlying sections 21 and 99 of the Civil Procedure Code and section 11 of the Suits Valuation Act is the same, namely, that when a case had been tried by a Court on the merits and judgment rendered, it should not be liable to be reversed purely on technical grounds, unless it had resulted in a failure of justice, and the policy of the Legislature has been to treat objections to jurisdiction both territorial and pecuniary as technical and not open to consideration by an appellate Court, unless there has been a prejudice on the merits.”(Quoted in: Bahrein Petroleum v. P.J. Pappu, AIR 1966 SC 634)

It is held by our Apex Court in Ramesh Chand Ardawatiya v. Anil Panjwani, AIR 2003 SC 2508, as under:

  • “Where there is a special tribunal conferred with jurisdiction or exclusive jurisdiction to try a particular class of cases even then the civil court can entertain a civil suit of that class on availability of a few grounds. An exclusion of jurisdiction of the civil court is not to be readily inferred. (See Dhulabhai v. State of M.P, (1968) 3 SCR 662) An objection as to the exclusion of the civil court‘s jurisdiction for availability of alternative forum should be taken before the trial court and at the earliest, failing which the higher court may refuse to entertain the plea in the absence of proof of prejudice.”

PART IV

Inherent Lack of Jurisdiction

As shown above, defects on pecuniary and territorial jurisdiction are not so fatal as compared to inherent lack of jurisdiction or jurisdiction on the subject matter of the suit. The objections as to the first category has to be raised in the pleadings at the earliest opportunity. If it is not done the party concerned is loses his chance.

Inherent Lack of Jurisdiction or Jurisdiction on the Subject Matter

The objections to the second category (inherent lack of jurisdiction or jurisdiction on the subject matter) can be raised without pleading and at any stage of the suit or even in execution or collateral proceedings.

In view of Sec. 21 CPC (objection as to the place of suing shall be taken in the Court of first instance at the earliest possible opportunity) it is held in Hasham Abbas Sayyad v. Usman Abbas Sayyad, AIR 2007 SC 1077, as under:

  • “We may, however hasten to add that a distinction must be made between a decree passed by a court which has no territorial or pecuniary jurisdiction in the light of Section 21 of the CPC; and a decree passed by a court having no jurisdiction in regard to the subject matter of the suit. Whereas in the former case, the appellate court may not interfere with the decree unless prejudice is shown, ordinarily the second category of the cases would be interfered with.”

The third category in this line is the objection that can be raised in any stage, including appeal or revision, without pleading, but not in execution or collateral proceedings (eg. bar by limitation). Ittyavira Mathai v. Varkey Varkey, AIR 1964 SC 907; Bhawarlal Bhandari v. M/s. Universal Heavy Mechanical Lifting Enterprises, AIR 1999 SC 246.

It is held by our Apex Court in Kiran Singh v. Chaman Paswan, AIR 1954 SC 340. as under:

  • “It is a fundamental principle well established that a decree passed by a Court without jurisdiction is a nullity, and that its invalidity could be set up whenever and wherever it is sought to be enforced or relied upon, even at the stage of execution and even in collateral proceedings. A defect of jurisdiction, whether it is pecuniary or territorial, or whether it is in respect of the subject-matter of the action, strikes at the very authority of the Court to pass any decree, and such a defect cannot be cured even by consent of parties.” (Referred to in : Foreshore Co-operative Housing Society Limited v. Praveen D. Desai (Dead) AIR 2015 SC 2006.)

Lack of ‘Subject-Matter-Jurisdiction

Decision on a Labour Dispute by a Civil Court and pronouncement on a civil matter by the Rent Controller are the common examples of lack of ‘subject-matter jurisdiction’.

Our Apex Court held in P. Dasa Muni Reddy v. P. Appa Rao, AIR 1974 SC 2089, that there will be no res judicata if the former suit was filed in a court where it had no jurisdiction over the subject matter. The Court held as under:

  • “The appellant proved that the appellant made a mistake of fact in regard to the building, being outside the mischief of the Act. The appellant instituted the-suit before the Rent Controller in mistake about the underlying and fundamental fact that the building was outside the ambit of the Act. The Civil Court has jurisdiction in the subsequent suit which is the subject of this appeal. The appellant is not disentitled to any relief on the grounds of res judicata or estoppel or waiver. As one cannot confer jurisdiction by consent similarly one cannot by agreement waive exclusive jurisdiction of courts. The Civil Court and not the Rent Control possesses jurisdiction over the building in question.”

In Chief Engineer Hydel Project v. Ravinder Nath, AIR 2008 SC 1315, it was held that the civil court had no jurisdiction to decide the dispute of termination of service of a workman as the labour Court alone had the jurisdiction with respect to the same. The Supreme Court held as under:

  • “Once the original decree itself has been held to be without jurisdiction and hit by the doctrine of coram non judice, there would be no question of upholding the same merely on the ground that the objection to the jurisdiction was not taken at the initial, First Appellate or the Second Appellate stage. It must, therefore, be held that the civil court in this case had no jurisdiction to deal with the suit and resultantly the judgments of the Trial Court, First Appellate Court and the Second Appellate Court are liable to be set aside for that reason alone and the appeal is liable to be allowed.”

See Blog: Civil Rights and Jurisdiction of Civil Courts

Where court has No Jurisdiction Over the Subject Matter, Order Will Be Nullity

In Harshad Chiman Lal Modi v. DLF Universal Ltd., AIR 2005 SC 4446, it is held as under:

  • “So far as territorial and pecuniary jurisdictions are concerned, objection to such jurisdiction has to be taken at the earliest possible opportunity and in any case at or before settlement of issues. The law is well settled on the point that if such objection is not taken at the earliest, it cannot be allowed to be taken at a subsequent stage. Jurisdiction as to subject matter, however, is totally distinct and stands on a different footing. Where a court has no jurisdiction over the subject matter of the suit by reason of any limitation imposed by statute, charter or commission, it cannot take up the cause or matter. An order passed by a court having no jurisdiction is nullity.”

Void Judgment: When No declaration needed. When a Judgment or Order (or any other transaction) is wholly without jurisdiction or ab initio void, it can be attacked at any time, in any court, either directly or collaterally.

  1. A void judgment
    • entered by a court which lacks jurisdiction over the parties or the subject matter, or
    • lacks inherent power to enter the particular judgment, or
    • an order procured by fraud
      • Long v. Shorebank Development Corp., (182 F.3d 548 (C.A. 7 III. 1999).
      • Referred to by Kerala High Court in Sulochana Gupta v. RBG Enterprises Pvt.  Ltd.  dt. 09 Sep 2020.
  2. Void acts, void transactions, void decrees
    • wholly without jurisdiction, ab initio void.
      • 2009-4 KLT 840; (2002) 9 SCC 28; 2013 SC 1226;  2009 4 KLT 840.
      • Dhurandhar Prasad Singh v. Jai Prakash University AIR 2001 SC 2552, T. Arivanandanam v. T. V. Satyapal, (1977) 4 SCC 467; N. V. Srinivasa Murthy v. Mariyamma, (2005) 5 SCC 548, Manoharlal Chatrath v. Municipal Corporation of Delhi, AIR 2000 Delhi 40.
  3. Void document,
    • then suit for recovery of possession simpliciter can be filed, without the need to seek a declaration about invalidity of the documents.
      • Rajasthan State Industrial Development and Investment Corporation v. Subhash Sindhi Cooperative Housing Society, (2013) 5 SCC 427; State of Maharashtra v. Pravin Jethalal Kamdar: 2000 SC 1099; Sanjay Kaushish v. D.C. Kaushish, AIR 1992 Delhi 118.
    • A void document is not   required   to   be   avoided,   whereas   a   voidable document must be.
      • Ranga-nayak-amma v. K.S.   Prakash, (2008) 15 SCC 673.
  4. Sale which was entirely without jurisdiction,
    • is   non   est   in   the   eye   of   law, and such   a nullity does not, from its very nature, need setting aside.
      • Mahadeo Prasad Singh v. Ram Lochan, (1980) 4 SCC 354;
  5. When a document is void ab initio,
    • a decree for setting aside the same would not be necessary as the same is non-est in the eye of law, as it would be a nullity.
      • Prem   Singh v. Birbal, (2006) 5 SCC 353  
  6. Order without jurisdiction obtained by collusion
    • Not necessary to bring an independent suit for setting it aside.
      • Gram Panchayat of Village Naulakha v. Ujagar Singh, AIR 2000 SC 3272.
  7. If declaration surplusage
    • Appanna v. Jami Venkatappadu, 1953 Mad.611.
  8. Cannot be & cannot be required to be set aside.
    • Ishar Singh Kripal Singh and Co., 1956 Cal. 321

See Blog: Declaration and Injunction

Void act or transaction – When Required to be Set Aside

There are instances where it is not permissible for a party to treat the judgment and order as null and void without getting it set aside from the competent court, such as:

  1. When an order is void to one but valid to another.
    • “It is well settled principle of law that even a void order is required to be set aside by a competent Court of law, inasmuch as an order may be void in respect of one person but may be valid in respect of another. A void order is necessarily not non-est. An order cannot be declared to be void in collateral proceedings and that too in the absence of the authorities who were the authors thereof.”
      • M. Meenakshi v. Metadin Agarwal, 2006-7 SCC 470; Quoted in Inderjit Singh Grewal v. State Of Punjab (2011) 12 SCC 588. Also See: Anita International v. Sugar Works Mazdoor Sangh, 2016-9 SCC 44  
  2. Where legal effect cannot be taken away without setting aside
    • In cases where legal effect of a document cannot be taken away without setting aside the same, it cannot be treated to be void but would be obviously voidable.
      • Dhurandhar Prasad Singh v. Jai Prakash University, AIR 2001 SC 2552, (2001) 6 SCC 534.
  3. If an order is void; but, not non-est
    • It is required to be set aside.
      • Tungabadra Sugar Works Mazdoor Sangh, 2016-9 SCC 44.
    • For setting aside such an order, the party has to approach the appropriate forum resorting to appropriate proceedings.
      • Inderjit Singh Grewal vs State Of Punjab (2011) 12 SCC 588.   Referred: State of Kerala v. M.K. Kunhikannan Nambiar, AIR 1996 SC 906, Tayabbhai M. Bagasarwalla v. Hind Rubber Industries, AIR 1997 SC 1240,
  4. Fraud on Character of document (not contents).
    • E.g.: A sale deed was got executed as if it was a lease.
      • See: Prem Singh v. Birbal -(2006) 5 SCC 353; 2014 (3) KLJ 55.
  5. When a declaration cannot be obtained in collateral proceedings
    • Even if a decree is void ab initio, declaration to that effect has to be obtained by the person aggrieved from the competent court. More so, such a declaration cannot be obtained in collateral proceedings.
      • Inderjit Singh Grewal v. State Of Punjab (2011) 12 SCC 588   Relied on in: Shyam Sundar Singh v. Smt. Sulochana Devi on 23 November, 2021

When Declaration Sufficient; Need NOT be Set Aside

  • “An order may be void for one and voidable for the other. An invalid order necessarily need not be non est; in a given situation it has to be declared as such.”
    • Sultan Sadik v. Sanjay Raj Subba, AIR 2004 SC 1377, Referred to in Inderjit Singh Grewal v. State Of Punjab (2011) 12 SCC 588  
  • A party aggrieved by an invalid, void or ultra vires order, he has to approach the court for the relief of declaration that the order is inoperative and therefore, not binding upon him. It can be avoided automatically, simply seeking a declaration. It need not be set aside.
    • State of Punjab v. Gurdev Singh, Ashok Kumar, AIR 1991 SC 2219, (1991) 4 SCC 1.

Nullity can be raised in Execution or in Collateral proceedings

  1. Order without Jurisdiction
    • With respect to a matter over which an authority has no jurisdiction is a nullity and is open to collateral attack, an order passed by an authority which has jurisdiction over the matter, but has assumed it otherwise than in the mode prescribed by law, is not a nullity. It may be liable to be questioned in those very proceedings, but subject to that it is good, and not open to collateral attack.
      • Central Potteries Ltd. v. State of Maharashtra AIR 1966 SC 932  
  2. If possible in execution or collateral proceedings to establish – null and void
    • Orders of Courts have to be obeyed unless and until they are set aside in appeal/revision. Alternatively in any proceedings for execution or in a collateral proceedings where an order is sought to be enforced or relied on, it is possible for a party to establish that the order is null and void. Then the Court considering the matter, if satisfied, will hold that the order is null and void and therefore not executable or enforceable…………………..”
      • S. Balasubramaniyam v. P. Janakaraju, AIR Kant R 2099. Referred to by Kerala High Court in Sulochana Gupta v. RBG Enterprises Pvt.  Ltd.  dt. 09 Sep 2020.

See Blog: Void, Voidable, Ab Initio Void, Order Without Jurisdiction and Sham Transactions

Conclusion

It is trite law that a decree passed by a Court totally without jurisdiction is a nullity. The law on the point can be summarised as under:

  • Lack of jurisdiction hits a Judgment or Order by, lack of jurisdiction:
    • over the parties, or
    • as to territorial limit,
    • pecuniary limit or
    • the subject matter.
  • Lack of Jurisdiction is also visited by:
    • ‘lack of inherent power’ to enter the particular judgment, or
    • an order procured by fraud or collusion.
  • It is not permissible to treat a Judgment or an Order of a Court/Authority as null and void without setting it aside or declared by the competent court.
    • A judgment of nullity would operate erga omnes i.e. for and against everyone concerned if only it is so declared by the Court.
    • It is not permissible for any person to ignore the same merely because in his opinion the order is void.
    • Or, it cannot be determined by the parties.
  • If only patent and latent invalidity, or inherent lack of jurisdiction/competence, then only such a declaration is permissible.
  • Where a decree is passed by a Court without jurisdiction was a nullity, its invalidity could not be corrected, even by the consent of the concerned parties.

Though the principle that a decree passed by a Court without jurisdiction is a nullity was applied strictly in earlier times, there is a slow change in the attitude of the courts as regards the rigidity to see the Orders and Judgments as without jurisdiction, inasmuch as the courts began to apply the doctrines of prejudice, acquiescence, patent and latent invalidity, etc, in this matter.



Read in this Cluster (Click on the Topic):

Book No. 1.   Handbook of a Civil Lawyer

Book No. 2: A Handbook on Constitutional Issues

Book No. 3: Common Law of CLUBS and SOCIETIES in India

Book No. 4: Common Law of TRUSTS in India

Land Acquired Can be Got Returned – If Not Used for the Purpose of Acquisition, Under 2013 Acquisition Act

Saji Koduvath, Advocate, Kottayam.

Land Acquisition Act 2013, Section 101 Speaks as under:

  • Return of unutilised land. When any land acquired under this Act remains unutilised for a period of five years from the date of taking over the possession, the same shall be returned to the original owner or owners or their legal heirs, as the case may be, or to the Land Bank of the appropriate Government by reversion in the manner as may be prescribed by the appropriate Government.
  • Explanation.–For the purpose of this section, Land Bank means a governmental entity that focuses on the conversion of Government owned vacant, abandoned, unutilised acquired lands and tax-delinquent properties into productive use.

State Amendments

Andhra Pradesh

  • In the principal Act, in section 101, for the words a period of five years, the words a period specified for setting up of any project or for five years, whichever is later, shall be substituted.

Haryana

After section 101 of the principal Act, the following section shall be inserted, namely:-

  • “101A. Power to denotify land.- When any public purpose, for which the land acquired under the Land Acquisition Act, 1894 (Central Act 1 of 1894) becomes unviable or non-essential, the State Government shall be at liberty to denotify such land, on such terms, as considered expedient by the State Government, including the payment of compensation on account of damages, if any, sustained by the land owner due to such acquisition:
  • Provided that where a part of the acquired land has been utilized or any encumbrances have been created, the landowner may be compensated by providing alternative land alongwith payment of damages, if any, as determined by the State Government.”

Land Acquisition Act, 1894

Following decisions under the old Act, Land Acquisition Act of 1894 make it clear – ‘Acquired Land Vests in State, and It cannot be Divested’, even if it is not used for the purpose for which it was acquired, or used for any other purpose.

Indore
Development Authority vs Manoharlal, AIR 2020 SC 1496
Once award has been passed on taking possession under Section 16 of the Act of 1894, the land vests in State. There is no divesting provided under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (for mere non-payment under Land Acquisition Act of 1894), as once possession has been taken there is no lapse under Section 24(2).
Note: (i). Under Section 24(2) of the 2013 Act, where an award under Sec. 11 of 1894 Act has been made five years or more prior to the commencement of 2013 Act but the physical possession of the land has not been taken or the compensation has not been paid, the said proceedings ‘shall be deemed to have lapsed’.
(ii). It is held in this decision that the word or should be read as “and” (as conjunctive not disjunctive) so as to limit the lapsing only in cases where both, payment has not been made and possession has not been taken.
Cases Referred to:
Fruit & Veg. Merts Union Vs. Delhi Improvt. Trust, AIR 1957 SC 344
Lt Governor of HP Vs. Avinash Sharma, (1970) 2 SCC 149
Nasiruddin Ramai Vs. State Trpt Ap. Tribunal, 1975-2 SCC 671
Gulam Mustafa Vs. State of Maharashtra, 1976-1 SCC 800
R S Nayak Vs. A R Antulay, 1984-2 SCC 183
Suresh Chand Vs. Gulam Chisti, 1990-1 SCC 593
Satendra Prasad Jain Vs. State of UP, 1993-4 SCC 369
P. Chinnanna v. State of AP, (1994) 5 SCC 486
Awadh Bihari Yadav Vs. State of Bihar, 1995-6 SCC 31
State of Tamil Nadu Vs. Mahalakshmi Ammal, 1996-7 SCC 269
Pratap Chanda Sheo Narain Vs. St. of Rajasthan, (1996) 3 SCC 1
State of Punjab Vs. Sadhu Ram, 1996 7 JT 118
Chandragauda Ramgonda Vs. State of Mahtra, 1996-6 SCC 405
Star Wire India Ltd Vs. State of Haryana, 1996-11 SCC 698,
C Padma Vs. Dty Secretary Govt of T N, 1997-2 SCC 627
State of Kerala Vs. M Bhaskaran Pillai, 1997-5 SCC 432
Padmasundara Rao Dead Vs. State of TN, 2002-3 SCC 533
Northern Indian Glass Indts Vs. Jaswant Singh, 2003-1 SCC 335
Gov of A P Vs. Syed Akbar, 2005-1 SCC 558
Sita Ram Bhandar Society Vs. Lt Govr Delhi, 2009-10 SCC 501
Sulochana Chandrakant Vs. Pune Munipl Trapt, 2010-8 SCC 467
V Chandrasekaran  Vs. Administrative Officer, 2012-12 SCC 133
Jagannath Temple Mg Comte Vs. Siddha Math, 2015-16 SCC 542
Jagannath Temple Vs. Siddha Math, (2015) 16 SCC 542,
Workmen of Dimakuchi Tea Estate Vs. Mangt., 1958 SCR 1156 (the court to consider the objects and reasons of the legislature, which the legislature had in mind.)
Comsr. of Sales Tax v. Modi Sugar Mills, 1961 (2) SCR 189  (The legal fiction of lapsing cannot be extended beyond its legitimate field)
Braithwaite & Co. v. E.S.I.C, 1968 (1) SCR 771
V. Chandrasekaran vs. Administrative Officer,   (2012) 12 SCC 133,  It is a settled legal proposition, that once the land is vested in the State, free from all encumbrances, it cannot be divested and proceedings under the Act would not lapse, even if an award is not made within the statutorily stipulated period. Cases Referred to:
Awadh Bihari Yadav v. State of Bihar, (1995) 6 SCC 31
U.P. Jal Nigam v. Kalra Properties, AIR 1996 SC 1170  
Allahabad Devt. Authty. v. Nasiruzzaman,  (1996) 6 SCC 424,  
M. Ramalinga Thevar v. State of TN, (2000) 4 SCC 322
Govt of AP v. Syed Akbar, AIR 2005 SC 492.
Lt. Governor of HP. v. Shri Avinash Sharma, 1970-2 SCC 149,
Satendra Prasad Jain v. State of U.P. AIR 1993 SC 2517
Rajasthan Housing Board v. Shri Kishan,  1993-2 SCC 84.
Sulochana Chandrakant Galande v. Pune Municipal Transport, 2010-8 SCC 467  Once the land is acquired, it vests in the State free from all encumbrances. It is not the concern of the land owner how his land is used and whether the land is being used for the purpose for which it was acquired or for any other purpose. He becomes persona non grata once the land vests in the State. He has a right to get compensation only for the same. The person interested cannot claim the right of restoration of land on any ground, whatsoever. Change of user is concerned, it is a settled legal proposition that once land vests in the State free from all encumbrances, there cannot be any rider on the power of the State Government to change user of the land in the manner it chooses. If by virtue of a valid acquisition of land, land stands vested in the State, thereafter, claimants are not entitled to restoration of possession on the grounds that either the original public purpose is ceased to be in operation or the land could not be used for any other purposes. Cases referred to:
C. Padma. Vs. Dty. Sectry. Govt. TN (1997) 2 SCC 627,
Bhagat Singh Vs. State of UP, AIR 1999 SC 436;
Niladri Narayan Vs. State of WB, AIR 2002 SC 2532;
Northern Indian Glass Vs. Jaswant Singh, (2003) 1 SCC 335,
Satendra Prasad Jain Vs. State of UP, AIR 1993 SC 2517,
Awadh Bihari Yadav Vs. State of Bihar (1995) 6 SCC 31;
U.P. Jal Nigam Vs. Kalra Properties AIR 1996 SC 1170;
Chandragauda Vs. State of Maharashtra, (1996) 6 SCC 405; Allahabad Develt Authty Vs. Nasiruzzaman (1996) 6 SCC 424;
State of Kerala  Vs. M. Bhaskaran Pillai AIR 1997 SC 2703;
M. Ramalinga Thevar Vs. State of TN (2000) 4 SCC 322;
Printers (Mysore) Ltd. Vs. M.A. Rasheed, (2004) 4 SCC 460;
Bangalore Devt Autty Vs. R. Hanumaiah, (2005) 12 SCC 508;
Government of AP Vs. Syed Akbar, AIR 2005 SC 492.
Tamil Nadu Housing Board v. L. Chandrasekaran, (2010) 2 SCC 786, On Section 48-B (TN Amendment)Utilised substantial portion. If remaining land not needed for the purpose for which it was acquired, or for any other public purpose; or, if the acquired land has already been transferred to other agency, the Government cannot exercise power under Section 48-B. Government cannot be compelled to reconvey to the original owner. The question of transfer of the land to the original land owner under Section 48-B will arise only in case the Government is satisfied that the land is not required for the purpose for which it was acquired.
Tamil Nadu Housing Board v. Keeravani Ammal, (2007) 9 SCC 255.Sec. 48-B introduced into the Land Acquisition Act in the State of Tamil Nadu is an exception to the general rule that the land on acquisition become the property of the State and it could be used by the Government for any other public purpose –  also be sold by public auction. Sec.48-B must requires a strict construction.
Northern Indian Glass Industries Vs. Jaswant Singh. (2003) 1 SCC 335.  After land vests in State under Section 16 of the Land Acquisition Act, following taking of possession by Collector, owner has no right to seek to revest the land in himself even if the land is not used for the purpose for which acquired. Therefore, when once the land of the appellant vests with the authorities, they have no right to seek to revest the land in himself and they cannot seek for restitution of possession, that too when the land is very much needed for the expansion of the bus depot by the respondents.
Government of Andhra Pradesh v. Syed Akbar, AIR 2005 SC 492Once the land has vested in the State, it cannot be Divested. Acquired land having vested in the State and the compensation having been paid to the claimant, he was not entitled to restitution of possession.
State of Kerala v. M. Bhaskaran Pillai (1997) 5 SCC 432. “It is settled law that if the land is acquired for a public purpose, after the public purpose was achieved, the rest of the land could be used for any other public purpose. In case there is no other public purpose for which the land is needed, then instead of disposal by way of sale to the erstwhile owner, the land should be put to public auction.
C. Padma vs. Deputy Secretary to the Govt. of TN (1997) 2 SCC 627Acquired land having vested in the State and compensation paid to the claimant, the claimants, thereafter, are not entitled to restitution of possession on ground that either original public purpose had ceased to be in operation or the land could not be used for any other purpose. “In terms of the agreement as contemplated in Chapter VII of the Act, the company had delivered possession subject to the terms and conditions thereunder. It is seen that one of the conditions was that on cessation of the public purpose, the lands acquired would be surrendered to the Government.”
Gulam Mustafa v. State of Maharashtra, AIR 1977 SC 448.Once the original acquisition is valid and title has vested in the Municipality, how it uses the excess land is no concern of the original owner.
The Fruit & Vegetable Merchants Union v. The Delhi Improvement Trust, AIR 1957 SC 344In the cases contemplated by Ss. 16 and 17 the property acquired becomes the property of Government without any conditions or limitations either as to title or possession. The legislature has made it clear that the vesting of the property is not for any limited purpose or limited duration.

Apex Court Ordered to Give-Back Land

Our Apex Court ordered to give back the properties acquired, in Uddar Gagan Properties Limited vs. Sant Singh, (2016) 11 SCC 378 and Royal Orchid Hotels Limited vs. G. Jayarama Reddy, (2011) 10 SCC 608 to its prior owners on the ground that the proceedings were vitiated by fraud and there was colourable exercise of power.

Uddar Gagan Properties Ltd. case

Uddar Gagan Properties Ltd., entered into collusive agreements with some of the farmers/owners whilst the acquisition proceedings were under way. Pointing out that the acquisition in that case was not completed and the title did not vest in the State, the Apex Court held that the entire administrative action could be held to be vitiated by fraud and there was colourable exercise of power.

Royal Orchid Hotels Limited

In the case of Royal Orchid Hotels Limited the Apex Court found the entire exercise was fraudulent and colourable exercise of power. In the facts of the case the Apex Court found that fraud unravels everything and upon diversion of the public purpose, the acquisition proceedings were liable to be quashed; and the land was ordered to be returned to the original land owners in spite of their having earlier accepted the compensation.

Mr. Felton Fernandes Vs. Union of India

The aforesaid two decisions of the Apex Court were distinguished by the  Bombay High Court, in Mr. Felton Fernandes Vs. Union of India, 2018(5) ALL MR 886, related to the land acquisition for Chhatrapati Shivaji International Airport (formerly known as Sahar International Airport) at Bombay.

The petitioners argued before the High Court that though the land was acquired for public purpose, it was diverted from the public purpose and utilised for a private and purely commercial user. According to them it was a fraudulent action and called for quashing of the acquisition. They further contended, relying on Uddar Gagan Properties Limited vs. Sant Singh and Royal Orchid Hotels Limited vs. G. Jayarama Reddy that this land was no longer to be used for a public purpose, and therefore it must be reverted to the original owners. But, the High Court held that even when a land acquired by State was utilised by the State for private commercial purpose, there is no provision in law, which enabled the prior owner of the land to reclaim same. The court pointed out that the operator of airport had been given permission for exploiting the land forming part of project for ancillary uses; and that such user could not be termed as fraudulent so as to vitiate original acquisition of land. And that once land vested in State under Sec.7, the State could not be divested of its title for non-user of land for purpose for which it was acquired, and therefore the acquisition notification could not be quashed. The High Court relied on Gulam Mustafa vs. State of Maharashtra, (1976) 1 SCC 800: AIR 1977 SC 448, which held as under:

  • “5. At this stage Shri Deshpande complained that actually the municipal committee had sold away the excess land marking them out into separate plots for a housing colony. Apart from the fact that a housing colony is a public necessity, once the original acquisition is valid and title has vested in the municipality, how it uses the excess land is no concern of the original owner and cannot be the basis for invalidating the acquisition. There is no principle of law by which a valid compulsory acquisition stands voided because long after the requiring authority diverts it to a public purpose other than the once stated in the Section 9(3) declaration.”

The Bombay High Court noticed that it was inconceivable that when the original acquisition was made in 1953 under Sec. 7 of the Act, there was any plan for diversion of use of the land for any private purpose, and it could not be termed as fraudulent.

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POSSESSION is a Substantive Right Protected in Indian Law

Saji Koduvath, Advocate, Kottayam.

Introspection

  • Divergent views exist as to injunction against “true owner”.
    • One view is that no injunction can be passed in a suit filed by the person in unlawful possession (against the true owner).
      • See: Prahladji Chenaji v. Maniben Jagmalbhai, 2022 SCC OnLine SC 258 (Two Judge Bench).
    • The other view is that a trespasser also is entitled for injunction (even against the true owner), for, he cannot be evicted otherwise than on “due process of law” (by the true owner).
      • See: Rame Gowda v. M. Varadappa Naidu, 2004-1 SCC 769 (Three Judge Bench).
  • Legal principles have to be evolved and an authoritative judicial pronouncement has to be penned-down taking note of conflicting views on this subject and laying down cogent and rationale reasonings.

Introduction.

The law as to ‘protection of possession’ by courts in India can be summarised as under:

  • Possession by itself is a substantive right recognised by law. It is heritable and transferable.
  • It is trite law that courts protect settled possession.
  • Generally speaking, injunction is a possessory remedy.
  • But, an injunction cannot be issued against a true owner or title holder and in favour of a trespasser or a person in unlawful possession.

Two Essential Elements of Possession

Sir Thomas Erkine Holland, in his treatise, ‘The Element of Jurisprudence’ pointed out that the concept of possession has two essential elements – corpus and animus. (Quoted in: Kanti Lal vs Smt. Shanti Devi, AIR 1997 Raj 230).

‘Possession Follows Title’ and ‘Title Follows Possession’

The legal principles, ‘Possession Follows Title’ and ‘Title Follows Possession’, are Rules of Evidence. It is recognised in S. 110 and 114 of the Indian Evidence Act. These principles are applied in cases where there are no sufficient and independent evidence to prove possession or title, as the case may be.

Read Blog: When ‘Possession Follows Title’; ‘Title Follows Possession’?

Section 110 of the Evidence Act

Section 110 of the Evidence Act, 1872, reads as under:

  • “110. Burden of proof as to ownership.When the question is whether any person is owner of anything of which he is shown to be in possession, the burden of proving that he is not the owner is on the person who affirms that he is not the owner.”

Section 110 deals with the burden of proof as to ownership. When a dispute arises as to whether a person in possession of anything is its owner, the burden of proving that he is not its owner is on the person who avers that he is not the owner. Section 110 is based on the principle that possession itself may raise a presumption of title. This applies when the facts disclose no title in either of the disputants, and possession alone decides. That is, presumption is invoked only when the facts as to title are not known.

  • M.  Siddiq   v. Mahant Suresh Das (Ayodhya Case), 2020-1 SCC 1;
  • State of A.P. v. Star Bone Mill & Fertiliser Company, (2013) 9 SCC 319;
  • Chief Conservator of Forests v. Collectors, AIR 2003 SC 1805).

The Apex Court, in M.  Siddiq   v. Mahant Suresh Das (Ayodhya Case), relied on Nair Service Society v. Fr. KC Alexander, AIR 1968 SC 1165, wherein it was observed that when no title in either of the disputants, ‘possession alone decides’.

Sec. 110 is Based on ‘Ownership‘; and NOT on ‘Title

Under S. 110, ownership is presumed on the proof of possession. It ‘follows from well settled principle of law that normally, unless contrary is established, title always follows possession’ (Chuharmal v.  Commissioner of Income Tax, M P, AIR  1988 SC 1384; 1988 3 SCC 588).

Though Sec. 110 is, generally, said to be based on the principle ‘Title Follows Possession’, what is decisively articulated in this section is ‘ownership‘; and not ‘title‘. That is, in law, ownership alone can be presumed; and not title. Title is the legal and authoritative expression of ownership; or, it is the legal recognition of a right.

M.  Siddiq  v. Mahant Suresh Das (Ayodhya Case), 2020-1 SCC 1, lays down (paras 784 and 785) the following:

  • For Section 110 to be attracted, there must be a dispute as to ownership of anything.
  • Section 110 deals with the burden of proof.
  • The ‘thing’ must be in possession of one individual.
  • That individual is presumed to be the owner (on the principle that ‘title follows possession’. That is, possession in and of itself may raise a presumption of title.)
  • Section 110 applies when the facts disclose no title in either of the disputants in which case, possession alone decides (because, presumption cannot be invoked when the facts are known).
  • The law casts the burden of disproving ownership on that individual in the person who affirms that the individual in possession is not the owner.

Section 114 of the Evidence Act

S. 114, Evidence Act, expressly permits the court to ‘presume the existence of any fact which it thinks likely to have happened, regard being had to the common course of natural events, human conduct and public and private business, in their relation to the facts of the particular case’. Therefore, by virtue of Sec. 114, both the presumptions, on title and possession, can be invoked; that is,

  • (i) possession can be presumed on the basis of title (possession follows title), and
  • (ii) title/ownership can be presumed on the basis of possession (title follows possession).

When ‘Possession Follows Title‘, Invoked

In Jones v. Chopman, (1849) 2 Ex. 803: 18 LJ Ex. 456: 76 PR 794; Maule, J, expounded the doctrine ‘Possession Follows Title’ as under:

  • “If there are two persons in a field, each asserting that the field is his, and each doing some act in the assertion of the right of possession, and if the question is, which of these two is in actual possession, I answer, the person who has the title is in actual possession and the other person is a trespasser. In such a case who is in possession is to be determined by the fact of the title and having the same apparent actual possession; The question as to which of the two really is in possession is determined by the fact of the possession; following the title, that is by the law, which makes it follow the title.” (Mitra quoted it in “Law of Possession and Ownership of Property”, as pointed out in Indore Development Authority vs. Manoharlal, (2020) 8 SCC 129)

In Indore Development Authority vs. Manoharlal, (2020) 8 SCC 129, Arun Misra, J. pointed out as to possession as under:

  • “247. The concept of possession is complex one. It comprises the right to possess and to exclude others, essential is animus possidendi. Possession depends upon the character of the thing which is possessed. If the land is not capable of any use, mere non-user of it does not lead to the inference that the owner is not in possession. The established principle is that the possession follows title. Possession comprises of the control over the property. The element of possession is the physical control or the power over the object and intention or will to exercise the power. Corpus and animus are both necessary and have to co-exist.”

Arun Misra, J. held further:

  • “251. A person with title is considered to be in actual possession. The other person is a trespasser. The possession in law follows the right to possess as held in Kynoch Limited v. Rowlands, (1912) 1Ch 527. Ordinarily, the owner of the property is presumed to be in possession and presumption as to possession is in his favour.”

Injunction Suit- Need Not Venture on Title

In Iqbal Basith v. N. Subbalakshmi, (2021) 2 SCC 718, the appellants were seeking the relief of permanent injunction only. Their title to the suit property was not disputed by the respondents. The two reports of the Pleader Commissioner also confirmed the possessory title of the appellants along with property tax registers and municipal tax receipts. The appellants had more than sufficiently established their lawful possession of the suit property. In this situation our Apex Court held as under:

  • “15. The conclusion by the courts below that the appellants had failed to establish title and therefore could not be said to be in lawful possession is therefore held to be perverse and unsustainable. Similarly, the conclusion that the identity of the suit property was not established is also held to be perverse in view of letter dated 16.04.1956 from the municipality, referred to herein above. The contention of the respondents feebly seeking to question the title of the appellants was rejected holding that they had nothing to do with the suit schedule property and that their conduct was questionable. Yet the appellants were wrongly denied the relief of permanent injunction. In our considered opinion the Trial Court and the High Court both posed unto themselves the wrong question venturing to decide the title of the appellants, and arrived at an erroneous conclusion.”

Settled Possession Vs. Rights of True Owner

When the relief of injunction or possession sought for in a suit is negated, and the title of the defendant as the owner is upheld, can the defendant recover the property without instituting a (second) suit, i.e., otherwise than on “due process of law“?

  • Earlier consistent view (See: Aarti v. Aruna Gautham 2015-1 RCR Civil – 160: SC) was that the true owner was not legally entitled to eject the trespasser by force (otherwise than on due process of law), especially when the trespasser is in settled possession.
  • Present view: In Prahladji Chenaji v. Maniben Jagmalbhai: 2022-2 RCR (Civil) 395; 2022 SCC OnLine SC 258 (Followed in: Kesar Bai v. Genda Lal, 2022-10 SCC 217) it is held that the ‘due process’ or ‘due course’ condition was satisfied the moment the rights of the parties were adjudicated upon (in the first round), and therefore the possession of the plaintiff is not lawful or ‘rightful‘.

It is held in Prahladji Chenaji as under:

  • “Where once a suit is held not maintainable, no relief of injunction can be granted. Injunction may be granted even against the true owner of the property, only when the person seeking the relief is in lawful possession “
  • Note: Kesar Bai v. Genda Lal, 2022-10 SCC 217 (M.R. Shah, Sudhanshu Dhulia, JJ.) calls for reading along with Prahladji Chenaji v. Maniben Jagmalbhai: 2022-2 RCR (Civil) 395; 2022 SCC OnLine SC 258 (M.R. Shah, B.V. Nagarathna, JJ.).

View Prevailed in India – Courts Protect Settled Possession

Possession by itself is a substantive right recognised by law.

  • Nair Service Society Ltd. v. K.C Alexander, AIR 1968 SC 1165,
  • Kuttan Narayanan v. Thomman Mathayi, AIR 1966 Ker 179;
  • Phirayalal Kapur v. Jia Rani, AIR 1973 Delhi 186;
  • Nallammal v. Ayisha Beevi, 2017-5 Mad LJ 864). 

It is trite law that courts protect settled possession.

  • Poona Ram v. Moti Ram, AIR 2019 SC 813,
  • Aarti v. Aruna Gautham. 2015 -1 RCR (Civil) 160,
  • Rame Gowda v. M. Varadappa Naidu, 2004-1 SCC 769.
  • Krishna Ram Mahale v. Shobha Venkat Rao, (1989) 4 SCC 131
  • Ram Rattan v. State of Uttar Pradesh, (1977) 1 SCC 188.
  • Puran Singh v. The State of Punjab, (1975) 4 SCC 518,
  • Munshi Ram v. Delhi Administration, (1968) 2 SCR 455,

Nature of Property and Claim of Occupant Whether Bona Fide were Determinative Factors

In Government of A.P. v. Thummala Krishna Rao, (1982) 2 SCC 134,  the question considered was whether summary remedy for evicting a person provided for by section 6 of the Andhra Pradesh Land Encroachment Act, 1905, could be resorted to. It was pointed out

  • the duration of encroachment, short or long, was not the determinative matter
  • what was relevant for the decision was more the nature of the property and
  • whether the claim of the occupant was bona fide.

It was also found that if there was bona fide dispute, on title between the Government and the occupant, it must be adjudicated upon by the Ordinary courts of law. The Government cannot decide such questions unilaterally in its own favour and evict any person summarily. Duration of occupation would be relevant requiring an impartial adjudication according to the established procedure of law, if the person –

  • occupied openly for an appreciable length of time and
  • could be taken, prima facie, to have a bonafide claim to the property.

Even Rightful Owner to Take Recourse to law; He cannot take the law in his own hands

In Rame Gowda v. M. Varadappa Naidu, (2004) 1 SCC 769, our Apex Court Court (R.C. Lahoti, B.N. Srikrishna, G.P. Mathur, JJ.) observed that the law will come to the aid of a person in peaceful and settled possession by injuncting even a rightful owner. It is held as under:­ 

  • “8. It is thus clear that so far as the Indian law is concerned the person in peaceful possession is entitled to retain his possession and in order to protect such possession he may even use reasonable force to keep out a trespasser.
  • A rightful owner who has been wrongfully dispossessed of land may retake possession if he can do so peacefully and without the use of unreasonable force.
  • If the trespasser is in settled possession of the property belonging to the rightful owner, the rightful owner shall have to take recourse to law; he cannot take the law in his own hands and evict the trespasser or interfere with his possession. 
  • The law will come to the aid of a person in peaceful and settled possession by injuncting even a rightful owner from using force or taking law in his own hands, and also by restoring him in possession even from the rightful owner (of course subject to the law of limitation), if the latter has dispossessed the prior possessor by use of force.
  • In the absence of proof of better title, possession or prior peaceful settled possession is itself evidence of title. Law presumes the possession to go with the title unless rebutted. The owner of any property may prevent even by using reasonable force a trespasser from an attempted trespass, when it is in the process of being committed, or is of a flimsy character, or recurring, intermittent, stray or casual in nature, or has just been committed, while the rightful owner did not have enough time to have recourse to law. In the last of the cases, the possession of the trespasser, just entered into would not be called as one acquiesced to by the true owner.” (quoted in: Subramanya Swamy Temple, Ratnagiri v. V. Kanna Gounder, 2009-3 SCC 306; Poona Ram v. Moti Ram, AIR 2019 SC 813)

What is the settled possession or effective possession of a person without title which would entitle him to protect his possession even as against the true owner was made clear in Rame Gowda v. M. Varadappa Naidu, (2004) 1 SCC 769. It reads as under:

  • “9. …The “settled possession” must be (i) effective, (ii) undisturbed, and (iii) to the knowledge of the owner or without any attempt at concealment by the trespasser. The phrase “settled possession” does not carry any special charm or magic in it; nor is it a ritualistic formula which can be confined in a straitjacket. An occupation of the property by a person as an agent or a servant acting at the instance of the owner will not amount to actual physical possession.” (quoted in Samarpan Varishtha Jan Parisar vs Rajendra Prasad Agarwal, AIR 2022 SC 2209)

Even the Rightful Owner cannot Eject a Trespasser with Force

In Karthiyayani Amma v. Govindan, AIR 1980 Ker 224, the Kerala High Court considered the question whether the rightful owner can eject a trespasser in possession with force; and whether a person in illegal possession could sustain a suit for injunction against the true owner, from forcibly dispossessing him from the property.  It was held as under:

  • “The ultimate position, therefore, reduces itself to this:
  • Can a person in possession without title sustain a suit for injunction against the rightful owner if he proves possession? Yes.
  • In this case, plaintiff is found to in be possession. On the finding, he should be granted the injunction prayed for. A person in possession can be evicted only in due process of law. Even the rightful owner cannot eject him with force. If he cannot be evicted with force, he continues to be in possession and he can resist invasion of his possession by everyone including the rightful owner. If the rightful owner threatens his peaceful possession, he can approach Courts of Law and pray for the equitable relief of injunction to protect his possession”. (Followed in: Aiysumma v. Mariyamma, 1994-2 CIVCC 52, 1994-1 KerLT 570. )

It is pointed out in Suresh v. Ashok Girdharilal Chandak, 2016-1 MHLJ 171 that ‘bearing in mind the basic principle of law in civil jurisprudence that even a trespasser cannot be evicted without following due process of law and no one can be allowed to take law into his own hands to recover possession of the property without following due process of law and without proving title to the immovable property in possession of a person holding actual physical possession thereof’.

Divergent Views

It is observed by our Apex Court, in Prataprai N. Kothari v. John Braganza, AIR 1999 SC 1666, as under:

  • “It is quite obvious that the learned single Judge had not taken note of the principle of possessory title or the principle of law that a person who has been in long continuous possession can protect the same by seeking an injunction against any person in the world other than the true owner. It is also well settled that even the owner of the property can get back his possession only by resorting to due process of law.

Divergent Views are set out in Sopan Sukhdeo Sable v. Assistant Charity Commissioner, AIR 2004 SC 1801 also. They are the following:

  • first, a person in settled possession cannot be disposed by the owner except by recourse of law
  • second, a trespasser in possession cannotnot seek injunction against the true owner.

In this case, a forceful postulation is posed-

  • A trespasser ousted can seek restoration of possession under Section 6 of the Specific Relief Act, 1963 (even) against the true owner. If so, can’t the trespasser seek injunction as to possession, against the true owner?

In Sopan Sukhdeo Sable v. Assistant Charity Commissioner, AIR 2004 SC 1801, the appellants were the plaintiffs whose suit was rejected in terms of Order VII, Rule 11 of the Code of Civil Procedure. It is held in this decision as under:

  • “24. There are two different sets of principles which have to be borne in mind regarding course to be adopted in case of forcible dispossession. Taking up the first aspect, it is true that where a person is in settled possession of property, even on the assumption that he has no right to remain in property, he cannot be disposed by the owner except by recourse of law. This principle is laid down in Section 6 of the Specific Relief Act, 1963. That Section says that if any person is dispossession without his consent from immovable property otherwise than in due course of law, he or any person claiming through him may, by suit, recover possession thereof, notwithstanding any other title that may be set up in such suit. That a person without title but in “settled” possession – as against mere fugitive possession – can get back possession if forcibly dispossessed or rather, if dispossessed otherwise than by due process of law, has been laid down in several cases. It was so held by this Court in
    • Yashwant Singh v. Jagdish Singh, AIR 1968 SC 620,
    • Krishna Ram Mohate v. Mrs. Shobha Venkata Rao, (1989) 4 SCC 131 at p. 136;
    • Ram Rattan v. State of UP, (1977) 1 SCC 188, and
    • State of UP v. Maharaja Dharmender Prasad Singh, (1989) 2 SCC 505.

The leading decision quoted in these rulings is the decision of the Bombay High Court in

  • K. K. Verma vs. Union of India, AIR 1954 Bom 358.
  • 25. Now the other aspect of the matter needs to be noted. Assuming a trespasser ousted can seek restoration of possession under Section 6 of the Specific Relief Act, 1963 can the trespasser seek injunction against the true owner?
  • This question does not entirely depend upon Section 6 of the Specific Relief Act, but mainly depends upon certain general principles applicable to the law of injunctions and as to the scope of the exercise of discretion while granting injunction.
  • In Mahadeo Savlaram Sheike vs. Pune Municipal Corporation, (1995) 3 SCC 33, it was held, after referring to Woodrofe on “Law relating to injunction: L. C. Goyal Law of injunctions:
    • David Bean Injunction Jayce on Injunctions and other leading Articles on the subject that the appellant who was a trespasser in possession could not seek injunction against the true owner.
  • In that context this Court quoted Shiv Kumar Chadha vs. MCD (1993) 3 SCC 161 wherein it was observed that injunction is discretionary and that:
    • “Judicial proceedings cannot be used to protect or to perpetuate a wrong committed by a person who approaches the Court.”
  • 26. Reference was also made to Dalpat Kumar vs. Prahlad Singh (1992) 1 SCC 719 in regard to the meaning of the words prima facie case and balance of convenience and observed in Mahadeos case (supra) that:
    • “It is settled law that no injunction could be granted against the owner at the instance of a person in unlawful possession.”
  • 27. The question of forcible possession as claimed is also a matter which can be pressed into service by the parties before the trial Court and if raised the Court shall deal with it considering its relevance to the suit and accept it or otherwise reject the plea in accordance with law. We do not think it necessary to express any opinion in that regard.
  • 28. …. Looking into the nature of dispute it would be appropriate if the trial Court makes an effort to complete the trial within six months from the date of the judgment. The parties are directed to co-operate for disposal of the suit early within the stipulated time. The appeal is allowed to the extent indicated without any order as to costs.”

No Injunction in favour of a Trespasser, against the ‘True Owner’

Following decisions also say – no injunction can be passed, in favour of a trespasser, against the ‘true owner’ of a property:

  • Tamil Nadu Housing Board v. A. Viswam, 1996 (8) SCC 259;
  • Premji Ratansey Shah v. Union of India, 1994 (5) SCC 547.

See Blog (Click): Civil Rights and Jurisdiction of Civil Courts

Injunction is a possessory remedy

Five judge bench of the Kerala High Court held as under in E. Keshava Bhat v. K.S. Subraya Bhat, AIR 1980 Ker 40:

  • “Unaided by authorities, we think that in suits for injunction, we are concerned only with the question of possession; the nature and the character of the possession is immaterial. If the plaintiff does not make out his possession, there is no need at all to consider whether the defendant is in possession, and if so, in what character or capacity; and if the plaintiff makes out his case of possession, the question of defendant’s tenancy again would not fall for consideration.” 

See also:

  • Ladies Corner, Bangalore vs State of Karnataka, ILR 1987 KAR 1710, 1987 (1) KarLJ 402.
  • Patil Exhibitors (Pvt.) Ltd. vs The Corporation of The City (M Venikatachaliah, J.) : AIR 1986 Kant 194, ILR 1985 Kar 3700, 1985 (2) KarLJ 533.
  • Referred to in Chetak Constructions Vs. Om Prakash, AIR 2003 MP 145.

Kesar Bai v. Genda Lal – HC and SC Approached in different Perspectives

Kesar Bai v. Genda Lal, 2022-10 SCC 217, arose from a suit seeking declaration of ownership and permanent injunction. The findings of the High Court were the following:

  • the plea of ownership claimed by the plaintiff based on a sale deed and the plea of adverse possession were contrary to each other;
  • the plaintiffs could not have been permitted to take both the pleas at the same time;
  • but, in view of the fact that the plaintiff was in possession of the suit land since the execution of the said sale deed, the plaintiff was entitled for injunction on the basis of his possession.

Setting aside the High Court judgment the Apex Court held as under:

  • “The possession/alleged possession of the plaintiffs could not have been protected by passing a decree of permanent injunction in favour of the plaintiffs”.

Person in possession can use Reasonable Force to keep out a Trespasser

Though in Rame Gowda v. M. Varadappa Naidu, (2004) 1 SCC 769, our Apex Court Court observed that the rightful owner shall have to take recourse to law if the trespasser is in settled possession of the property belonging to the rightful owner, and the owner cannot take the law in his own hands and evict the trespasser, it is pointed out as under:

  • “8. It is thus clear that so far as the Indian law is concerned the person in peaceful possession is entitled to retain his possession and in order to protect such possession he may even use reasonable force to keep out a trespasser.
  • A rightful owner who has been wrongfully dispossessed of land may retake possession if he can do so peacefully and without the use of unreasonable force.”

Law Recognises Efficacy of Possession in Section 6 of the Specific Relief Act

Section 6 of the Specific Relief Act allows one to file a suit for recovery of property, on the strength of his prior possession, if he had lost his possession within 6 months of the suit. In such a case, he need not prove his title; and he can succeed on establishing that he has been dispossessed otherwise than in accordance with law within six months.

Sec. 6 of the Specific Relief Act, 1963 reads as under:

  • 6. Suit by person dispossessed of immovable property.
  • (1) If any person is dispossessed without his consent of immovable property otherwise than in due course of law, he or any person claiming through him may, by suit, recover possession thereof, notwithstanding any other title that may be set up in such suit.
  • (2) No suit under this section shall be brought
    • (a) after the expiry of six months from the date of dispossession; or
    • (b) against the Government.
  • (3) No appeal shall lie from any order or decree passed in any suit instituted under this section, nor shall any review of any such order or decree be allowed.
  • (4) Nothing in this section shall bar any person from suing to establish his title to such property and to recover possession thereof.

If Title not Perfected by Adver. Posn, Can one eject a Trespasser After 6 Months

High Courts differ, as pointed out in Kuttan Narayanan v. Thomman Mathayi, AIR 1966 Ker 179.

Now it is settled that if one fails to exercise his option by filing a suit under Section 6 of the Specific Relief Act within six months, he is at liberty to file a suit to recover his possession (with or without declaration) by a regular suit for recovery of possession. It can be based on title or on his possession in assumed or presumed character of ownership (even if title not perfected by doctrine of adverse possession) on the principle that possession is good title against all the world but the rightful owner. See: Kuttan Narayanan v. Thomman Mathayi, AIR 1966 Ker 179; Kanti Lal v. Smt. Shanti Devi, AIR 1997 Raj 230. (Refer End-Note also)

‘Possession is good against all but the True Owner’ & Sec. 6 of the Sp. Relief Act

The principle ‘Possession is Good against all but the True Owner’ is declared in Parry v. Clissold, (1907) AC 73. In this decision it was also pointed out that if the rightful owner did not come forward and assert his title within the period of limitation, his right would be extinguished and the possessory owner acquires an absolute title.

The Supreme Court of India while accepting this principle in Nair Service Society Ltd. vs. K.C. Alexander, AIR 1968 SC 1165, pointed out that the law in India allows a plaintiff to maintain a possessory suit under Sec. 9 (preset Sec. 6) of the Specific Relief Act. Such a suit can be filed against a title holder, if he had dispossessed the plaintiff ‘otherwise than in due course of law’.

In Nair Service Society Ltd. vs. K.C. Alexander, AIR 1968 SC 1165, it is observed as under:

  • “17. … To express our meaning we may begin by reading 1907 AC 73 (Perry V. Clissold), to discover if the principle that possession is good against all but the true owner has in any way been departed from.
  • 1907 AC 73 reaffirmed the principle by stating quite clearly:
    • “It cannot be disputed that a person in possession of land in the assumed character of owner and exercising peaceably the ordinary rights of ownership has a perfectly good title against all the world but the rightful owner. And if the rightful owner does not come forward and assert his title by the process of law within the period prescribed by the provisions of the statute of Limitation applicable to the case, his right is for ever extinguished and the possessory owner acquires an absolute title.”
  • Therefore, the plaintiff who was peaceably in possession was entitled to remain in possession and only the State could evict him. The action of the Society was a violent invasion of his possession and in the law as it stands in India the plaintiff could maintain a possessory suit under the provisions of the Specific Relief Act in which title would be immaterial or a suit for possession within 12 years in which the question of title could be raised.”

In Poona Ram v. Moti Ram, AIR 2019 SC 813, our Apex Court explained the principle ‘possession is a good title of right against any one who cannot show a better’ as under:

  • “9. The law in India, as it has developed, accords with jurisprudential thought as propounded by luminaries like Salmond. Salmond on Jurisprudence states:­
    • “These two concepts of ownership and possession, therefore, may be used to distinguish between the de facto possessor of an object and its de jure owner, between the man who actually has it and the man who ought to have it. They serve also to contract the position of one whose rights are ultimate, permanent and residual with that of one whose rights are only of a temporary nature.
    • x x x x x
    • In English law possession is a good title of right against any one who cannot show a better. A wrongful possessor has the rights of an owner with respect to all persons except earlier possessors and except the true owner himself. Many other legal systems, however, go much further than this, and treat possession as a provisional or temporary title even against the true owner himself. Even a wrongdoer, who is deprived of his possession, can recover it from any person whatever, simply on the ground of his possession. Even the true owner, who takes his own, may be forced in this way to  restore it to the wrongdoer, and will not be permitted to set up his own superior title to it. He must first give up possession, and then proceed in due course of law for the recovery of the thing on the ground of his ownership. The intention of the law is that every possessor shall be entitled to retain and recover his possession, until deprived of it by a judgment according to law.
    • Legal remedies thus appointed for the protection of possession even against ownership are called possessory, while those available for the protection of ownership itself may be distinguished as proprietary. In the modern and medieval civil law the distinction is expressed by the contrasted terms petitorium (a proprietary suit) and possessorium (a possessory suit).”
  • 10. As far back as 1924, in the case of Midnapur Zamindary Co. Ltd. v. Naresh Narayan Roy, AIR 1924 PC 144, the learned Judge observed that in India, persons are not permitted to take forcible possession; they must obtain such possession as they are entitled to through a court. Later, in the case of Nair Service Society Ltd. v. K.C. Alexander, AIR 1968 SC 1165, this Court ruled that when the facts disclose no title in either party, possession alone decides. It was further held that if Section 9 of the Specific Relief Act, 1877 (corresponding to the present Section6) is employed, the plaintiff need not prove title and the title of the defendant does not avail him. When, however, the period of six months has passed, questions of title can be raised by the defendant, and if he does so the plaintiff must establish a better title or fail. In other words, such a right is only restricted to possession in a suit under Section 9 of the Specific Relief Act (corresponding to the present Section 6) but does not bar a suit on prior possession within 12 years from the date of dispossession, and title need not be proved unless the defendant can provide one.
  • 11. It was also observed by this Court in Nair Service Society Ltd. (supra) that a person in possession of land in assumed character of owner and exercising peaceably the ordinary rights of ownership has a perfectly good title against the entire world except the rightful owner. In such a case, the defendant must show in himself or his predecessor a valid legal title and probably a possession prior to the plaintiff’s, and thus be able to raise a presumption prior in time.”

CHANGE IN VIEW OF THE APEX COURT

Should the Defendant-Rightful-Owner Approach the Court Again For Recovery?

Before Kesar Bai v. Genda Lal, our Apex Court held in Padhiyar Prahladji Chenaji v. Maniben Jagmalbhai, 2022 SCC OnLine SC 258 (M.R. Shah, B.V. Nagarathna, JJ.) to the following effect (see ‘End Notes’ below):

  • The plaintiff is not entitled to any injunction and/or protect his possession against the rightful owner, more particularly, when he fails to get the declaratory relief with respect to the title.
  • In a suit for permanent injunction to restrain the defendant from interfering with the plaintiff’s possession, the only thing the plaintiff will have to establish is that as on the date of the suit, he was in lawful possession of the suit property and the defendant has tried to interfere or disturb his possession
  • the plaintiff, who has failed to get any declaratory relief on title cannot be said to be in “lawful possession”. Only when the person seeking the relief is in lawful possession and enjoyment of the property, he is legally entitled to be in possession, and not to disposes him, except in due process of law.
  • The contention of the plaintiff that even if the plaintiff failed to get the declaratory relief and the suit is dismissed, once the plaintiff is found to be in possession, her possession cannot be disturbed except in due process of law and the only remedy available to the defendant would be “to file a substantive suit to get back the possession is noticed only to be rejected outright”.
  • In Maria Margarida Sequeira Fernandes Vs. Erasmo Jack de Sequeira, (2012) 5 SCC 370, it was held that the ‘due process’ or ‘due course’ condition was satisfied the moment the rights of the parties were adjudicated upon by a court of competent jurisdiction, and that it did not matter who brought the action to court.
  • In Maria Margarida Sequeira Fernandes Vs. Erasmo Jack de Sequeira, the Court has approved the following findings of the High Court of Delhi in Thomas Cook (India) Ltd. Vs. Hotel Imperial (2006) 88 DRJ 545:
    • “In this context, when a party approaches a court seeking a protective remedy such as an injunction and it fails in setting up a good case, can it then say that the other party must now institute an action in a court of law for enforcing his rights i.e. for taking back something from the first party who holds it unlawfully, and, till such time, the court hearing the injunction action must grant an injunction anyway? I would think not.”
  • Once the rights of the parties are adjudicated and the defendant is held to be the true owner, it can be said that due process of law has been followed and thereafter the plaintiff is not entitled to any permanent injunction against the true owner.
    • Note: It is not specifically stated in this decision, Prahladji Chenaji v. Maniben Jagmalbhai, that one can resume possession using force.

Read Blog: Kesar Bai v. Genda Lal, (2022) 10 SCC 217: Is Something Remains Untold?

When Recovery of Possession granted Without Declaration

Persons having clear title and possession suing for injunction, should not be driven to the costlier and more cumbersome remedy of a suit for declaration. (Anathula:  AIR 2008 SC 2033). Injunction or recovery is granted without declaration in the following cases:

Relevant ActWhen Injunction or Recovery Granted Without Declaration
Sp. Relief Act
Sec. 34
1. Title: well established; clear,simple and straight-forward; or settled right (lawful possession)Well established possession
2. No Substantial questions of fact and law exists (2017 -7 MLJ 627; 2005-4 MLJ 258): Unnikrishnan Vs. Ponnu Ammal: 1999 1 KLT 298: AIR 1999 Ker 405.
3. No serious denial or cloud(not any apparent defect) on title (or right):   Anathula: AIR 2008 SC 2033. (Such as settled or lawful possession: Anathula: AIR 2008 SC 2033; infringement of trade mark or copyright: 2004-3 SCC 90).
4. Void acts:2000 SC 1099; 2009-4 KLT 840; (2002) 9 SCC 28; AIR 1977 SC 1718; 2013 SC 1226
5. Fraud on character of a document (not contents): Premsingh Vs. Birbal: (2006) 5 SCC 353
Sp. Relief Act
Sec. 38
Particular instances specified in Sec. 38 (2) & (3) of the Sp. Rlf. Act
1. Breach of Contractual obligations(including Bylaw provisions)
2. Trustee invades plaintiff’s right.                
3. No standard for ascertaining damages.
4. Compensation in money would not be adequate relief.
5. Necessary to prevent multiplicity of judicial proceedings.
SR Act: Sec. 41(h)Fiduciary obligation (attached to trust): 41(h).
..No lis (no dispute for defendant): 2010-168 DLT 132
Evd. Act, S. 57Facts judicially noticeable: Evd. Act, S. 57
Contract Act
Sec. 74
Law confers a right; or, Right arises under an Act. (Eg. with expression “shall be void”):(2015)7 SCC 601; 2003 SC 4102 Sec. 74 Contract Act: while resisting a claim of return of advance or to support forfeiture of earnest money, the defendant can resist it without a counter claim. In Kailash Nath Associates Vs. Delhi Development Authority (2015) 4 SCC 136, it is held: “The Section applies whether a person is a plaintiff or a defendant in a suit.”
..Established custom/customary-rights. Eg. Village pathway, Marumakkathayam
Consti-tutionConstitutional right: Art. 19, 21, 300A etc.
Evd. ActEstoppel against defendant S. 115, 116 (tenant), 117 (licencee) Evd. Act
..Acquiescence against defendant
..Already declared (in earlier civil case).

See Blog (Click): Declaration and Injunction

No Res Judicata on a Finding on Title, in an Injunction Suit

In Sulochana Amma Vs. Narayanan Nair [(1994) 2 SCC 14] it is observed as under:

“The decision in earlier case on the issue between the same parties or persons under whom they claim title or litigating under the same title, it operates as a res-judicata. A plea decided even in a suit for injunction touching title between the same parties, would operate as res-judicata. It is a settled law that in a Suit for injunction when title is in issue, for the purpose of granting injunction, the issue directly and substantially arises in that suit between the parties when the same is put in issue in a later suit based on title between the same parties or their privies in a subsequent suit, the decree in injunction suit equally operates as a res-judicata.”

Anathula Sudhakar Vs. P. Buchi Reddy, AIR 2008 SC 2033, the Supreme Court held that where the issue of title involves complicated or complex questions of fact and law, or where court feels that parties had not proceeded on the basis that title was at issue, the court should not decide the issue of title in a suit for injunction. It is clear that findings of title in such suits are redundant so far as res judicata is concerned, The Court proceeded to hold as under:

“Where there are necessary pleadings regarding title, and appropriate issue relating to title on which parties lead evidence, if the matter involved is simple and straight-forward, the court may decide upon the issue regarding title, even in a suit for injunction. But such cases, are the exception to the normal rule that question of title will not be decided in suits for injunction. But persons having clear title and possession suing for injunction, should not be driven to the costlier and more cumbersome remedy of a suit for declaration, merely because some meddler veraciously or wrongfully makes a claim or tries to encroach upon his property. The court should use its discretion carefully to identify cases where it will enquire into title and cases where it will refer to plaintiff to a more comprehensive declaratory suit, depending upon the facts of the case.”

(Both, Sulochana Amma and Anathula are referred to in T. Ravi Vs. B. Chinna Narasimha, 2017-7 SCC 342)

See Blog: Res Judicata and Constructive Res Judicata

Mutation will not confer ‘title’; It merely raises a Presumption on Possession

It is a settled proposition of law (i) that the mutation entry in revenue documents will not confer any right, title or interest in favour of any person and (ii) that the mutation in the revenue record is only for the fiscal purpose. After pointing out these legal propositions it is observed in Jitendra Singh vs The State Of Madhya Pradesh, 2021 SCC OnLine SC 802, as under:

  • “6. Right from 1997, the law is very clear. In the case of Balwant Singh v. Daulat Singh (D) By Lrs., reported in (1997) 7 SCC 137 , this Court had an occasion to consider the effect of mutation and it is observed and held that mutation of property in revenue records neither creates nor extinguishes title to the property nor has it any presumptive value on title. Such entries are relevant only for the purpose of collecting land revenue. Similar view has been expressed in the series of decisions thereafter.
  • 6.1 In the case of Suraj Bhan v. Financial Commissioner, (2007) 6 SCC 186 , it is observed and held by this Court that an entry in revenue records does not confer title on a person whose name appears in record-of-rights. Entries in the revenue records or jamabandi have only “fiscal purpose”, i.e., payment of land revenue, and no ownership is conferred on the basis of such entries. It is further observed that so far as the title of the property is concerned, it can only be decided by a competent civil court. Similar view has been expressed in the cases of:
    •  Suman Verma v. Union of India, (2004) 12 SCC 58; Faqruddin v. Tajuddin (2008) 8 SCC 12;
    • Rajinder Singh v. State of J&K, (2008) 9 SCC 368; 
    • Municipal Corporation, Aurangabad v. State of Maharashtra, (2015) 16 SCC 689; 
    • T. Ravi v. B. Chinna Narasimha, (2017) 7 SCC 342; 
    • Bhimabai Mahadeo Kambekar v. Arthur Import & Export Co., (2019) 3 SCC 191; 
    • Prahlad Pradhan v. Sonu Kumhar, (2019) 10 SCC 259; and 
    • Ajit Kaur v. Darshan Singh, (2019) 13 SCC 70.”

As pointed out above, it is observed by the Apex Court in State of AP v. Star Bone Mill & Fertiliser Company, (2013) 9 SCC 319 that a revenue record is not a document of title; it merely raises a presumption in regard to possession (Quoted in M.  Siddiq   v. Mahant Suresh Das, 2020-1 SCC 1). The argument as to ownership based upon entries in the revenue records had been negated in Prahlad Pradhan  v. Sonu Kumhar, (2019) 10 SCC 259. It was held that the revenue record does not confer title to the property nor do they have any presumptive value on the title. (Quoted in Prabhagiya Van Adhikari Awadh Van Prabhag v. Arun Kumar Bhardwaj (SC): 2021)

Revenue Records Do Not Confer or Lose Title

The Supreme Court in  Smt. Bhimabai Mahadeo Kambekar v. Arthur Import and Export Company (2019) and Commissioner, Bruhath Bangalore Mahanagra Palike vs Faraulla Khan (2021) observed that mutation in revenue records will not confer or lose title. In this case the court relied on:

  • Sawarni Vs. Inder Kaur, (1996) 6 SCC 223,
  • Balwant Singh Vs. Daulat Singh, (1997) 7 SCC 137 and
  • Narasamma Vs. State of Karnataka, (2009) 5 SCC 591).

Settled Possession and Established Possession

In A. Subramanian v. R. Pannerselvam, AIR 2021 SC 821, the Supreme Court held that even a trespasser, who is in established possession of the property could obtain injunction. But, it was cautioned that the matter would be different, if the plaintiff himself elaborated in the plaint about title dispute and fails to make a prayer for declaration of title along with injunction relief.

In Poona Ram v. Moti Ram, AIR 2019 SC 813, it was pointed out in a case where there was no document to prove settled possession that ‘merely on doubtful material and cursory evidence, it cannot be held that the plaintiff was ever in possession of the property, and that too in settled possession’. It held further as under:

  • “13. The crux of the matter is that a person who asserts possessory title over a particular property will have to show that he is under settled or established possession of the said property. But merely stray or intermittent acts of trespass do not give such a right against the true owner. Settled possession means such possession over the property which has existed for a sufficiently long period of time, and has been acquiesced to by the true owner. A casual act of possession does not have the effect of interrupting the possession of the rightful owner. A stray act of trespass, or a possession which has not matured into settled possession, can be obstructed or removed by the true owner even by using necessary force. Settled possession must be (i) effective,(ii) undisturbed, and (iii) to the knowledge of the owner or without any attempt at concealment by the trespasser. There cannot be a straitjacket formula to determine settled possession. Occupation of a property by a person as an agent or a servant acting at the instance of the owner will not amount to actual legal possession. The possession should contain an element of animus possidendi. The nature of possession of the trespasser is to be decided based on the facts and circumstances of each case.”

Mandatory Injunction – To Preserve Status Quo of the Last Non-Contested Status

Dorab Cawasji Warden v. Coomi Sorab Warden, AIR  1990 SC 867 : (1990) 2 SCC 117, is the laudable decision on interim mandatory injunction. It is laid down in this decision that interlocutory mandatory injunctions are granted to:

  • (i) preserve or restore the status quo ante, of the last non-contested status which preceded the pending controversy, or
  • (ii) to compel the undoing of those acts that have been illegally done, or
  • (iii) the restoration of that which was wrongfully taken from the party complaining.

It is also pointed out that the court would consider the prospect of granting of a mandatory injunction finally, after trial; and delineated that a fresh state of affairs cannot be allowed to be created by the grant of such an injunction.

Long continuous Possession and Injunction against True Owner

In Prataprai N. Kothari v. John Braganza, AIR 1999 SC 1666, dismissing the appeal it is observed by our Apex Court as under:

  • “It is quite obvious that the learned single Judge had not taken note of the principle of possessory title or the principle of law that a person who has been in long continuous possession can protect the same by seeking an injunction against any person in the world other than the true owner. It is also well settled that even the owner of the property can get back his possession only by resorting to due process of law.

Salmond on Jurisprudence (12th Edn.), says as under:

  • “In English law possession is a good title of right against anyone who cannot show a better. 

Settled-Possessory- Title, in Part Performance

In Ghanshyam v. Yogendra Rathi, AIR 2023 SC 2754, 2023-7 SCC 361, the Supreme Court allowed the plaintiff (purchaser in an agreement for sale) to recover property from the defendant/title-holder (true-owner). It was on two, main, grounds:  

  • First, the plaintiff/purchaser was having settled-possessory- title, in part performance under Sec. 53A of the Transfer of Property Act, 1882

The defendant/title-holder (allowed to occupy a portion of the property for a period of 3 months as a licencee) failed to vacate despite notice.

Gratuitous Possession – Owner can Reclaim Even Without Knowledge of the Other

In Anima Mallick v. Ajoy Kumar Roy, (2000) 4 SCC 119, our Apex Court held that where the sister gave possession as gratuitous to her brother, the sister could reclaim such possession even without knowledge of the brother; and that ‘no one acquires title to the property if he or she was allowed to stay in the premises gratuitously. Even by long possession of years or decades such person would not acquire any right or interest in the said property. (Relied on in Maria Margadia Sequeria v. Erasmo Jack De Sequeria 2012 (5) SCC 370, Indore Development Authority v. Manoharlal, (2020) 8 SCC 129; AIR 2020 SC 1496.)

Possession Follows Title and Adverse Possession

It is held in MS Jagadambal v. Southern Indian Education Trust, 1988 (Supp) SCC 144 that the possession continues with the title holder unless and until the defendant acquires title by adverse possession (possession follows title). In LN Aswathama v. P Prakash, 2009-13 SCC 229, the Supreme Court held as under:

  • “In law, possession follows title. The plaintiffs having established title to the suit property, will be entitled to decree for possession, unless their right to the suit property was extinguished, by reason of defendant being in adverse possession for a period of twelve years prior to the suit.”

Adverse Possession Inchoate until title is upheld by a Competent Court

One can acquire right of easement and adverse possession by prescription. But, prescriptive rights are said to be inchoate (started; but, not full-blown) until the such title is upheld by a competent court. It was observed in Sultan Ahmad v. Valiullah (1912) 10 ALJ 227, that the result of the Easements Act and the similar provisions of the Limitation Act was that a right of easement could not be said to be perfected until the right was declared by a decree of court. See also:

  • Sultan Ahmad v. Valiullah (1912) 10 ALJ 227 is referred to in: Nachiparayan v. Narayana Goundan, (1920): 60 Ind Cas 171, (1920) 39 MLJ 574; Arjuna Udayar v. Manuswamy Naicker, 1999-1 CurCC 97;
  • D. Ramanatha Gupta vs S. Razaack, AIR 1982 Kant 314..
  • See also: Tradesh and Miners, Ltd v. Dhirendra Nath Banerjee, AIR 1944 Pat 261.

Determination of Possession by Court By Photographs, CD or Commission

Can a commission be appointed to find out the physical possession of a property?

  • No.

In Bandi Samuel v. Medida Nageswara Rao, 2017 (1) ALT 493 it is pointed out that the factum of possession of the property in dispute, which is nothing, but fishing of information and not elucidating any matter in dispute.

  • See also: Malaya Gounder v. Palanisamy (1995) 1 MLJ 626,
  • Puttappa v. Ramappa, AIR 1996 Kant 257,
  • Rajendran v. Lilly Ammal alias Nelli Ammal, 1998 (II) CTC 163,
  • Benz Automobiles Private Limited v. Mohanasundaram, 2003 (3) MLJ 391,
  • D. Kuttiyappan v. Meenakshiammal Polytechnic Unit, 2005 (4) CTC 676,
  • Devadoss v. A. Duraisingh, 2002 (3) CTC 748,
  • Parepally Satyanarayana v, Vutukuri Meeneder Goad, 2008 (1) ALT 461;
  • KMA Wahab v. Eswaran, 2008 (3) CTC 597,
  • Ramdas Trimbak v. Bajirao Sanap, 2018-1 MHLJ 866, 2018-5 AIR BomR 57,
  • S. Kalam v. V. Valliammai,  2021-7 Mad LJ 137,
  • K. Sellammal v. M. Valarmathy, 2022, Madras High Court.

In Indore Development Authority v. Manoharlal, 2020-8 SCC 129, AIR  2020 SC 1496, it is observed:

  • “270. The decision in Velaxan Kumar (supra) cannot be said to be laying down the law correctly. The Court considered the photographs also to hold that the possession was not taken. Photographs cannot evidence as to whether possession was taken or not. Drawing of a Panchnama is an accepted mode of taking possession. Even after re-entry, a photograph can be taken; equally, it taken be taken after committing trespass. Such documents cannot prevail over the established mode of proving whether possession is taken, of lands. Photographs can be of little use, much less can they be a proof of possession. A person may re-enter for a short period or only to have photograph. That would not impinge adversely on the proceedings of taking possession by drawing Panchnama, which has been a rarely recognised and settled mode of taking possession.
  • 271. In the decision in Raghbir Singh Sehrawat v. State of Haryana, (2012) 1 SCC 792 the observation made was that it is not possible to take the possession of entire land in a day on which the award was declared, cannot be accepted as laying down the law correctly and same is contrary to a large number of precedents. The decision in Narmada Bachao Andolan v. State of M.P. (2011) 7 SCC 639, is confined to particular facts of the case. The Commissioner was appointed to find out possession on the spot. DVDs and CDs were seen to hold that the landowners were in possession. The District Judge, Indore, recorded the statements of the tenure-holder. We do not approve the method of determining the possession by appointment of Commissioner or by DVDs and CDs as an acceptable mode of proving taking of possession. The drawing of Panchnama contemporaneously is sufficient and it is not open to a court Commissioner to determine the factum of possession within the purview of Order XXVII, Rule 9 CPC. Whether possession has been taken, or not, is not a matter that a court appointed Commissioner cannot opine. However, drawing of Panchnama by itself is enough and is  a proof of the fact that possession has been taken.”

Kerala High Court held in Thomas VY@ Sajimon v. Joseph VY, ILR 2020-3 Ker446,  2020-3 Ker LJ  574, 2020-3 KHC 613, as under:

  • “15. In a suit for permanent prohibitory injunction, the burden is entirely on the plaintiff to bring convincing evidence to show his possession over the plaint schedule property and for so doing, it is not permissible for the plaintiff to invoke Order 26 Rule 9 CPC, which is intended for a different purpose. In a matter relating to the investigation into the disputed question of fact of possession, the power of appointment of Commissioner for local investigation cannot be exercised by the Court to assist the party to collect evidence, where the party can collect evidence by itself. If a party claims that, that party is in possession of the disputed property and if the other party denies the same by filing the written statement, the disputed fact can be adjudicated by the Court after framing of issues and recording the evidence of the parties. So many articles may be found in the building at the time of local inspection by the Commissioner. Even clothes and other articles may be found in the building. The Commissioner has to just make an inventory of the items found in the building. The Commissioner cannot report about the ownership of the articles found in the premises, as the said aspect is a matter for evidence. If at all the Commissioner makes any such report, the Court shall not accept the report, even for primary satisfaction without any other convincing material. If the Advocate Commission is deputed for the purpose of ascertaining the possession of the party over the property, the said aspect can be done only after gathering information from the people in the locality, which amounts to fishing out the evidence or gathering of evidence and hence the same is only hearsay information. The party can even otherwise examine the persons, with whom the Commissioner makes enquiry, before the Court to prove the possession of the person over the property in question. The fishing out of information is to make a local enquiry collecting hearsay materials from the persons gathered there or the like, which is different from collection of materials which he finds at the scene. That apart, if that task is left to be decided by the Advocate Commissioner, any fraudulent litigant can create evidence and with the assistance of the Commissioner, he will be able to prove that he is in possession of the property, which is not the purpose for which Order 26 was enacted. Therefore, it is always advisable not to appoint an Advocate Commissioner, as in the present case, to find out the possession of the property, which has to be decided only from oral and documentary evidence to be adduced by the parties. The High Court of Madras in Mr. D. Kuttiyappan v. Meenakshiammal Polytechnic Unit, (2005) 4 MLJ 592, held that the Advocate Commissioner cannot be appointed to note down the factum of possession or the enjoyment . I respectfully agree with the view of the High Court of Madras in D. Kuttiyappan (Supra). Thus, it is settled law that the power of appointment of Commissioner for local investigation cannot be exercised by the Court to enable any party to collect evidence through the Commissioner to prove the factum of possession or enjoyment. This being the situation, the argument of the learned Counsel for the defendant that the report of the Commissioner would show the possession of the defendant in the plaint schedule property cannot be accepted even for the prima facie satisfaction of the Court.”

Adverse Possession – Present view – Give prominence to overt and adverse acts of trespasser. 

Following are the important decisions to see the present view on adverse possession:

  1. Karnataka Board of Wakaf v. Govt of India – AIR 2004 SC 2096
  2. T. Anjanappa v. Somalingappa [(2006) 7 SCC 570]
  3. PT Munichikkanna Reddy v. Revamma, AIR 2007 SC 1753
  4. Ravinder Kaur Grewal v. Manjit Kaur AIR 2019 SC 3827: (2019) 8 SCC 729

PT Munichikkanna Reddy v. Revamma, AIR 2007 SC 1753, is the latest decision of the Supreme Court that discussed various views on adverse possession. It is observed in this decision as under:

  • “Adverse possession in one sense is based on the theory or presumption that the owner has abandoned the property to the adverse possessor on the acquiescence of the owner to the hostile acts and claims of the person in possession. It follows that sound qualities of a typical adverse possession lie in it being open, continuous and hostile.”
  • Thus, there must be intention to dispossess. And it needs to be open and hostile enough to bring the same to the knowledge and plaintiff has an opportunity to object

U.N. Mitra, in the “Law of Limitation and Prescription” (Tagore Law Lectures – 12th Edition, Vol.2, Page 1430) it is stated as under:

  • “A squatter is one who settles on land without title or with a view to acquiring title. He is a person who settles or locate on land enclosed or unenclosed with no bona fide claim or colour of title and without consent of the owner. He is merely an intruder and no matter how long he may continue there, no right in law vests in him. A squatter who does not set up a claim of right cannot plead adverse possession. No length of squatting possession would operate as a good or valid defence in a suit for possession by the true owner. A mere squatter or intruder who does not deny the title of the true owner or set up any right in himself cannot claim to be in adverse possession. ………” (Quoted in: K.J. Abraham v. Mrs. Mariamma Itty, ILR 2016-3 Ker 98)

In a nutshell, adverse possession arises from:

  1. acquiescence of the owner to the hostile acts; and
  2. hostile acts of the trespasser.

Article 65 of Limitation Act, 1963: Major Changes in Law of Adverse Possession

Articles 65 of the Limitation Act, 1963 brought-in  complete change insofar as the onus of proof is concerned (from the earlier law of 1908): The new provision casted onus on the trespasser to prove claims of title by ‘adverse’ possession. Adverse possession arises, under Article 65 of Limitation Act, 1963, only ‘by the positive and hostile acts’ of the trespasser; that is, mere possession is not sufficient, but, it must be ‘adverse’ to the true owner.

Article 65 of Limitation Act reads as under:

65. For possession of immovable property or any interest therein based on title.12 yearsWhen the possession of Defendant becomes
adverse to the plaintiff.

In T. Anjanappa v. Somalingappa, (2006) 7 SCC 570, it is observed that the possession must be open and hostile enough to be capable of being known by the parties interested in the property, though it is not necessary that there should be evidence of the adverse possessor actually informing the real owner of the former’s hostile action

Our Apex Court held as under:

  • “The concept of adverse possession contemplates a hostile possession i.e., a possession which is expressly or impliedly in denial of the title of the true owner. Possession to be adverse must be possession by a person who does not acknowledge the other’s rights but denies them. The principle of law is firmly established that a person who bases his title on adverse possession must show by clear and unequivocal evidence that his possession was hostile to the real owner and amounted to denial of his title to the property claimed. For deciding whether the alleged acts of a person constituted adverse possession, the animus of the person doing those acts is the most crucial factor. Adverse possession is commenced in wrong and is aimed against right. A person is said to hold the property adversely to the real owner when that person in denial of the owner’s right excluded him from the enjoyment of his property.
  • …The High Court has erred in holding that even if the defendants claim adverse possession, they do not have to prove who is the true owner and even if they had believed that the Government was the true owner and not the plaintiffs, the same was inconsequential. Obviously, the requirements of proving adverse possession have not been established. If the defendants are not sure who is the true owner the question of their being in hostile possession and the question of denying title of the true owner do not raise…… Therefore, the defendants are in possession and enjoyment of the property knowing fully well that the property belonged to the plaintiff’s father and the plaintiff’s vendor also did not take any action to evict them and the plaintiff and his vendor were aware that the properties belonged to them and despite the same, the plaintiff’s vendor did not take any action to evict them. Hence, the appellants/defendants have also perfected title by adverse possession. Therefore, the 2nd substantial question of law of is answered in favour of the appellants/defendants.”

Possession is heritable and transferable

Possession is a heritable and transferable right. [See: Nallammal Vs. Ayisha Beevi, 2017-5 Mad LJ 864; Phirayalal Kapur Vs. Jia Rani, AIR 1973 Delhi 186]. A settled possession can be protected by court-injunction.

How to Plead Adverse Possession 

It is really a troublesome matter for the advocates. Karnataka Board of Wakaf v. Govt of India – AIR 2004 SC 2096; T. Anjanappa v. Somalingappa – [(2006) 7 SCC 570]; and PT Munichikkanna Reddy v. Revamma – AIR 2007 SC 1753, guide us in this field. It may be necessary to plead the following modules.

  • The claimant has been in ‘hostile and open, continuous uninterrupted as of right‘ possession of the land,
  • in denial of the title of the rightful owner,
  • adversely to the interest of the owner of the land,
  • started with wrongful disposition of the rightful owner,
  • exercising absolute rights of ownership in respect of the land,
  •  on and from .. . .. (Specify date).

And, it is appropriate to plead ‘hostile and open’ possession as under:

  • Claimant’s acts were hostile enough to make the true owner aware of the adverse possession;
  • or, he made the true owner knew as to his hostile acts or adverse possession (from the inception).

See Blog: Adverse Possession: An Evolving Concept

Sec. 27,  Limitation Act  –  Extinguishment of right to property: 

Sec. 27 of the Limitation Act speaks that at the determination of the period “hereby limited to any person for instituting a suit for possession of any property”, his right to such property shall be extinguished.

Adverse possession confers title under Sec. 27 (by necessary implication, because extinguished title of real owner comes to vest in wrongdoer – because, rights thereon had already been lost to the true owner, and passed over to the ‘possessory/adverse’ owner).

Therefore it is clear that Sec. 27 is a provision in the Limitation Act that gives a substantial right to a party. In view of Sec. 27 one can seek declaration of title by adverse possession and consequential injunction or recovery. That is why it is held in Ravinder Kaur Grewal v. Manjit Kaur,  AIR 2019 SC 3827: (2019) 8 SCC 729, that the person acquiring title by adverse possession can use it as a sword.

Legal Position of Licencees

In Samarpan Varishtha Jan Parisar v. Rajendra Prasad Agarwal, AIR 2022 SC 2209, our Apex Court held that the inmates in an old age home have no substantive right for seeking injunction as they are only licensees. The court relied on the following earlier decisions:

  • In Associated Hotels of India v. R.N. Kapoor AIR 1959 SC 1262 it was held that in case of a licensee, the legal possession continues with the owner as in terms of Sec. 52 of the Indian Easements Act, 1882, grant of a mere right to do upon the property of another, something which would in the absence of such right be unlawful.
  • In Sohan Lal Naraindas v. Laxmidas Raghunath Gadit (1971) 1 SCC 276, it has been held that a lease creates an interest in the property whereas a license creates no estate or interest in the immovable property of the grantor.
  • In Behram Tejani and Ors. v. Azeem Jagani (2017) 2 SCC 759, it is held that a person holding the premises gratuitously or in the capacity as a caretaker or a servant would not acquire any right or interest in the property and even long possession in that capacity would be of no legal consequences.

The Supreme Court quoted the following from the Three-Judge Bench decision in Maria Margarida Sequeira Fernandes v. Erasmo Jack De Sequeira, (2012) 5 SCC 370, which reads as under:

  • “1. No one acquires title to the property if he or she was allowed to stay in the premises gratuitously. Even by long possession of years or decades such person would not acquire any right or interest in the said property.
  • 2. Caretaker, watchman or servant can never acquire interest in the property irrespective of his long possession. The caretaker or servant has to give possession forthwith on demand.
  • 3. The Courts are not justified in protecting the possession of a caretaker, servant or any person who was allowed to live in the premises for some time either as a friend, relative, caretaker or as a servant.
  • 4. The protection of the Court can only be granted or extended to the person who has valid, subsisting rent agreement, lease agreement or license agreement in his favour.
  • 5. The caretaker or agent holds property of the principal only on behalf of the principal. He acquires no right or interest whatsoever for himself in such property irrespective of his long stay or possession.”

Also relied on:

  • Maganlal Radia v. State of Maharashtra 1971 Mh.L.J. 57,
  • Conrad Dias of Bombay v. Joseph Dias of Bombay 1994 SCC OnLine Bom 528,
  • Hyderabad Metropolitan Development Authority v. Hotel Malligi Pvt. Ltd. 2017 SCC OnLine Hyd 1,
  • General Merchant Association v. The Corporation of Chennai 1998 SCC OnLine Mad 848.

End Notes:

While considering whether possessory title can be made the foundation for a suit in ejectment filed even after the expiry of six months, it is held in Kuttan Narayanan VS Thomman Mathai, AIR 1966 Ker 179, as under as regards ‘Possessory Title’.

  • “6. Possession by itself is a substantive right recognised by law and has legal incidents attached to it apart from ownership. Even before the acquisition of statutory title by adverse possession for the requisite period under the Limitation Act, the possessory owner has well-defined rights in property. It is now settled beyond all dispute that this interest is heritable, devisable and transferable. This interest is referred to as possessory title as distinct from proprietory title. A person having such interest must be allowed to enforce those rights against all the world except those who have a better title or better right than himself. Salmond on Jurisprudence, Eleventh edition, observes at page 345:
  • “In English law possession is a good title of right against any one who cannot show a better. A wrongful possessor has the rights of an owner with respect to all persons except earlier possessors and except the true owner himself.”
  • and at pages 473 and 474 it is observed:
  • “On the other hand, the thing of which possession is taken may already be the property of some one else. In this case the title acquired by possession is good, indeed, against all third persons, but is of no validity at all against the true owner. Possession, even when consciously wrongful, is allowed as a title of right against all persons who cannot show a better, because of a prior title in themselves. Save with respect to the rights of the original proprietor, my rights to the watch in my pocket are much the same, whether I bought it honestly, or found it, or abstracted it from the pocket of some one else. If it is stolen from me, the law will help me to the recovery of it. I can effectually sell it, lend it give it away, or bequeath it, and it will go on my death intestate to my next of kin. Whoever acquires it from me, however, acquires in general nothing save my limited and imperfect title to it, and holds it, as I do, subject to the superior claims of the original owner.
  • If a possessory owner is wrongfully deprived of the thing by a person other than the true owner, he can recover it. For the defendant cannot set up as a defence his own possessory title, since it is later than, and consequently inferior to, the possessory title of the plaintiff. Nor can he set up as a defence the title of the true owner the jus tertii, as it is called; the plaintiff has a better, because an earlier, title than the defendant, and it is irrelevant that the title of some other person, not a party to the suit, is better still. The expediency of this doctrine of possessory ownership is clear. Were it not for such a rule, force and fraud would be left to determine all disputes as to possession, between persons of whom neither could show an unimpeachable title to the thing as the true owner of it.”
  • Pollock & Wright in their book’Possession in the Common Law’ expressed themselves thus at “page 91:
  • “Existing possession, however acquired, is protected against any interference by a mere wrongdoer; and the wrongdoer cannot defend himself by showing a better title than the plaintiff’s in some third person through or under whom he does not himself claim or justify. ‘Any possession is a legal possession’ i. e. lawful and maintainable ‘against a wrongdoer.'”
  • and at page 95:
  • “It would be possible at first sight to suppose that, as between a succession of independent occupiers who were all wrongdoers as against the true owner, the law must be indifferent, with the result of conferring an absolute title upon the person who happens to be in possession when the time of limitation expires. Reflection, however, shows this to be contrary to the reason and principles of the law. Possession being once admitted to be a root of title, every possession must create a title which, as against all subsequent intruders, has all the incidents and advantages of a true title …In the language of the modern authorities, ‘possession is good title’ nothing less ‘against all but the true owner.”‘
  • 7. The English doctrine of possessory title is expressed in the following terms by Cockburn, C. J., in Asher v. Whitlock 1886 Law Journal 35 Q. B. 17:
  • “I take it to be established by authority that possession is good against all the world except the person who can show a better title than the one in possession. Doe v. Dyeball ILR. 20 Cal. 834 shows that possession, even for a year, is sufficient against a mere subsequent possession. The whole law of disseisin was founded upon the principle that the disseisin gives title to the disseisor against all the world but the disseisee.”‘
  • 8. Their Lordships of the Judicial Committee of the Privy Council in Perry v. Clissold & c. 1907 A. C. 73, 79 decided :
  • “It cannot be disputed that a person in possession of land in the assumed character of owner and exercising peaceably the ordinary rights of ownership has a perfectly good title against all the world but the rightful owner. And if the rightful owner does not come forward and assert his title by process of law within the period prescribed by the provisions of the Statute of Limitations applicable to the case, his right is for ever extinguished, and the possessory owner acquires an absolute title.’
  • 9. The above is certainly the doctrine of English Law. The rule of English Law that possession is good title against all but the true owner has been adopted by the decisions of the Indian High Courts and also by the decisions of the Judicial Committee of the Privy Council in the Indian cases. In Khajah Enaetoollah Chowdhry v. Kishen Soondur Surma &c. VIII Weekly Reporter 386, 387 & 388 Dwarkanath Mitter, J. posed the question thus:
  • “Can the Civil Courts give a decree for immovable property on the bare ground of illegal dispossession in a suit brought after six months from the date of such dispossession, it being borne in mind, however, that the defendant has failed to prove his own title to the same?”
  • and answered the same in the following terms:
  • “But we do not see any reason why a mere wrongful dispossessor should require proof from his adversary of anything beyond the illegal dispossession complained of. He himself has not got and never had any title to the land. The act of dispossession committed by him has been entirely without any sanction from law. Justice and equity require that he should be compelled to restore the party wronged by him to the same position which the latter enjoyed before the date of the illegal ejectment. To adopt the contrary view appears to us to be tantamount to holding out a premium in favour of wrong and violence.”
  • and in Hari Khandu v. Dhondi Natha VIII Bombay Law Reporter 96 Sir Lawrence Jenkins, C. J. said: “Possession is evidence of ownership, and is itself the foundation of a right to possession.” and Subramania Ayyar, J. in Mustapha Saheb &c. v. Santha Pillai &c. ILR. 23 Mad. 179,182 said:
  • “that the rule of law that a party ousted by a person who has no better right is. with reference to the person so ousting, entitled to recover by virtue of the possession he had held before the ouster even though that possession was without any title” is so firmly established as to render a lengthened discussion about it quite superfluous.”
  • 10. In Sundar v. Parbati ILR. 12 All. 51 decided by their Lordships of the Judicial Committee of the Privy Council, the suit was for partition and recovery of possession filed by the junior widow of a deceased Hindu against the senior widow who denied the junior widow’s right to separate possession and contended that she was entitled to manage the whole estate. The Subordinate Judge decreed the plaintiff’s suit. A Bench of the Allahabad High Court reversed the decree of the Subordinate Judge and dismissed the suit. Lord Watson delivering the judgment of the Board, observed at page 57:
  • “If it were necessary to determine the point, their Lordships would probably have little difficulty in accepting the opinion of the High Court that a Hindu Brahman cannot lawfully adopt his own sister’s son. But apart from that question, and also from any question touching the legal effect of Baldeo Sahai’s will, the fact of joint possession by the two widows of the estates which belonged to the testator, ever since the death of Premsukh in 1879, appears to them to be sufficient for disposing of this suit in favour of the appellant. Their Lordships are at a loss to understand, at all events to appreciate, the grounds upon which the Chief Justice endeavours to differentiate between the authorities which he cites, the import of which he correctly states, and the position of the parties to this action. Their possession was lawfully attained, in this sense that it was not procured by force or fraud, but peaceably, no one interested opposing. In these circumstances, it does not admit of doubt that they are entitled to maintain their possession against all comers except the heirs of Premsukh or of Baldeo Sahai, one or other of whom (it is unnecessary to say which) is the only person who can plead a preferable title. But neither of these possible claimants is in the field, and the widows have therefore, each of them, an estate or interest in respect of her possession, which cannot be impaired by the circumstance that they may have ascribed their possession to one or more other titles which do not belong to them. It is impossible to hold that a joint estate is not also partible; and their Lordships will therefore humbly advise Her Majesty that the judgment of the High Court ought to be reversed, and that of the Subordinate Judge restored.”
  • The above principle was reiterated by their Lordships of the Judicial Committee in Ismail Ariff v. Mahomed Ghous ILR. 20 Cal. 834. At page 843 their Lordships observed:
  • “It appears to their Lordships that there is here a misapprehension of the nature of the plaintiff’s case upon the facts stated in the judgment. The possession of the plaintiff was sufficient evidence of title as owner against the defendant. By S.9 of the Specific Relief Act (Act 1 of 1877), if the plaintiff had been dispossessed otherwise than in due course of law, he could, by a suit instituted within six months from the date of the dispossession, have recovered possession, notwithstanding any other title that might be set up in such suit. If he could thus recover possession from a person who might be able to prove a title, it is certainly right and just that he should be able, against a person who has no title and is a mere wrong-doer, to obtain a declaration of title as owner, and an injunction to restrain the wrong-doer from interfering with his possession. The Appellate Court, in accordance with the judgment above quoted, has dismissed the suit. Consequently, the defendant may continue to wilfully, improperly and illegally interfere with the plaintiff’s possession, as the learned judge say he has done, and the plaintiff has no remedy. Their Lordships are of opinion that the suit should not have been dismissed; and that the plaintiff was entitled in it to a declaration of his title to the land.”
  • The principle underlying the rule that possession is a good title against all the world except the person who can show a better title is stated thus in Narayana Row v. Dharmachar ILR. 26 Mad: 514, 518:
  • “The principle underlying the rule of law in question seems to be that acquisition of title by operation of the law of limitation being a lawful mode of acquiring title, the person in peaceable possession is entitled to maintain such possession against all but the true owner and that therefore a third party who has no better title than the person in possession has no right to invade upon the possession of the latter and interrupt or arrest his lawful acquisition of title by his continuing to remain in possession for the statutory period. ‘ It is the true owner alone that is entitled to assert his title as against the person wrongfully in possession, and prevent such wrongful possession ripening into prescriptive title. But a third party who without deriving title under the true owner and without his authority, interrupts such possession before it has ripened into prescriptive title, is a trespasser, not only against the true owner, but also against the party actually in possession; and. subject to the law of limitation, either of them is entitled to maintain a suit in ejectment against such intruder as a trespasser.”
  • 11. We are therefore of the view that a person in juridical possession, if dispossessed by a trespasser without title, can recover possession on the sole ground of his prior possession even beyond six months from the date of dispossession and this is enough to dispose of the second appeal.
  • 12. But the learned advocate for the appellant relying on the decision in Nisa Chand Gaita & C.V.. Kanchiram Bagani ILR. 26 Cal. 579 submitted that mere previous possession for any period short of the statutory period of twelve years will not entitle a plaintiff to a decree for recovery of possession in a suit brought more than six months after dispossession, even if the defendant could not establish any title to the disputed land. The. point which, arose for decision in ILR. 26 Cal. 579 was whether the plaintiff is entitled to a decree merely upon proof of previous possession for a period less than twelve years, on the ground that the defendant has established no title, the suit having been brought more than six months after the date of dispossession. ILR. 20 Cal. 834 was distinguished thus:
  • “There (in ILR. 20 Cal. 834) the plaintiff was in possession when he brought his suit, whereas in the present case the plaintiff is out of possession. What the plaintiff asked for in the case of Ismail Ariff v. Mahomed Ghous was a decree declaring his right, and an injunction restraining the defendant from disturbing his possession; what the plaintiff asks for in this case is only recovery of possession; and what was said by their Lordships of the Judicial Committee with reference to the plaintiff’s right to obtain this relief is to be found in the following passage of their judgment: “It appears to their Lordships that there is here a misapprehension of the nature of the plaintiff’s case upon the facts stated in the judgment. The possession of the plaintiff was sufficient evidence of title as owner against the defendant. By S.9 of the Specific Relief Act (1 of 1877), if the plaintiff had been dispossessed otherwise than in due course of law, he could by a suit instituted within six months from the date of the dispossession, have recovered possession, notwithstanding any other title that might be setup in such suit. If he could thus recover possession from a person who might be able to prove a title, it is certainly right and just that he should be able, against a person who has no title and is a mere wrong doer, to obtain a declaration of title as owner, and an injunction to restrain the wrong-doer from interfering with his possession.” This shows, as we understand the judgment, that the reason for their Lordships’ decision was this: that as the plaintiff, had his position been rendered somewhat worse by his being dispossessed, could, by instituting a suit within six months for recovery of possession under S.9 of the Specific Relief Act, have recovered possession even as against a person who might establish a better title, it was only right and just that if he brought his suit before he was dispossessed he could be declared entitled to retain possession as against a mere wrong-doer, and should obtain an injunction restraining the wrong-doer from interfering with his possession. But, though that was so in the case of a plaintiff who was in possession, and had, therefore, a possibility open to him of being restored to possession upon mere proof of possession, by instituting a suit under S.9 of the Specific Relief Act upon being dispossessed, it does not follow that it should be so in the case of a plaintiff who had been in possession, and allowed more than six months to elapse after his dispossession, and therefore lost the possibility of recovering possession, by a suit under S.9 of the Specific Relief Act, upon mere proof of previous possession.”
  • 13. Distinguishing I. L. R.20 Cal. 834 in the above manner, the Calcutta High Court in ILR. 26 Cal, 579 sought support for the dictum in the following observations of the Privy Council in J. P. Wise &c. v. Ameerunnissa Khatoon & c. VII L. R. Indian Appeals 73, 80.
  • “It is quite clear that the plaintiff’s have failed to make out a title. The Defendants were put into possession by the Government, who were entitled to the lands, and they were ordered by the Magistrate under the Code of Criminal Procedure to be retained in possession. If the Plaintiffs had wished to contend that the Defendants had been wrongfully put into possession and that the Plaintiffs were entitled to recover on the strength of their previous possession without entering into a question of title at all, they ought to have brought their action within six months under S.15 of Act XIV of 1859; but they did not do so. The High Court, with reference to this point say (and, in their Lordships’ opinion, correctly say): “Further, de facto possession having been given to the Defendants under S.318 of the Code of Criminal Procedure, in accordance with the Deputy Collector’s award, the plaintiff will not be entitled to a decree until and unless he can show a better title to these lands than the Defendants. The fact that the Plaintiffs’ possession as regards B, C, and D was confirmed under Act IV of 1840, and that the defendants Nos. 2 and 3 unsuccessfully endeavoured to disturb them by regular suit, does not bar the right of Government. S.2 of Act IV of 1840 only affects persons concerned in the dispute. If Kalkini had belonged to a private individual he might have reduced into his own possession lands which had accreted to the estate and which undoubtedly were his. But lands to which he is unable to make out a title cannot be recovered on the ground of previous possession merely, except in a suit under S.15 of Act XIV of 1859, which must be brought within six months from the time of that dispossession.”
  • The Calcutta High Court on an interpretation of ILR. 20 Cal. 834 and L. R. VII I. A. 73 has therefore taken the view that S.9 of the Act operates as a bar to the institution of suits in which the claim for possession of any immovable property is based on anything but proprietory title.
  • 14. On the other hand, the decision in ILR. 20 Cal. 834 was relied on by the other High Courts for the position that possessory title can be made the foundation for suits in ejectment filed after six months from the date of dispossession against trespassers who have noctitle.
  • 15. The effective answer to the basis of the decision of the Calcutta High Court in ILR. 26 Cal. 579 has been furnished by Subramania Ayyar & O’ Farrelll JJ. in Mustapha Saheb & c. v. Santha Pillai & c. ILR. 23 Mad. 179,183. Subramania Ayyar J. at page 183 observed:
  • “And with reference to the grounds on which decision in Nisa Chand Gaita v. Kanchiram Bayani (ILR. 26 Cal. 579) seems to rest, it is necessary to make but two observations. The first is that S.9 of the Specific Relief Act cannot possibly be held to take away any remedy available with reference to the well-recognised doctrine expressed in Pollock and Wright on Possession thus: Possession in law is a substantive right or interest which exists and has legal incidents and advantages apart from the true owner’s title, (at page 19). The second observation is that in Wise v. Ameerunnissa Khatoon (L. R.7 I. A. 73) relied on in Nisa Chand Gaita v. Kanchiram Bagani (ILR. 26 Cal. 579) the defendant had a better right than the plaintiff, since the possession of the former was authorised by the Government whose property the land in dispute was and consequently nothing said by their Lordships in a case wherein such were the facts can rightly be construed as intended to lay down the law differently from what it had been all along understood to be.”
  • and O’Farrell, J. observed:
  • “All the dictum of the Privy Council in Wise v. Ameerunnissa Khatoon (L. R.7 I. A. 73) appears to amount to is this, that where a plaintiff in possession without any title seeks to recover possession of which he has been forcibly deprived by a defendant having a good title, he can only do so under the provisions of S.9 of the Specific Relief Act and not otherwise.”
  • 16. The Madras High Court again in ILR. 26 Mad. 514 relying on ILR. 20 Cal. 834 took the view that S.9 of the Act is in no way inconsistent with the position that as against a wrong-doer, prior possession of the plaintiff in an action of ejectment is sufficient title, even if a suit is brought more than six months after the date of dispossession and the wrong-doer cannot successfully resist the suit by showing that the title and right to possession are in a third person, and a plea of jus tertii is no defence unless the defendant can show that the act complained of was done by authority of the true owner and it is immaterial however short or recent the plaintiff’s possession was. The only effect of S.9 of the Act is that if a summary suit be brought within the time prescribed by that section, the plaintiff therein who was dispossessed otherwise than in due course of law will be entitled to be reinstated even if the defendant who thus dispossessed him be the true owner or a person authorised by or claiming under him, but a decree in such a suit will not have the force of res judicata on the question of title.
  • 17. We are in respectful agreement with the observations in ILR. 23 Mad. 179 and hold that the decision in ILR. 26 Cal. 579 has proceeded on an incorrect interpretation of the decisions in ILR. 20 Cal 834 and L. R.7 I. A. 73.
  • 18. There remains only to consider the decision of Mr. Justice Raman. Nayar in Vasudeva Kurup v. Ammini Amma 1964 KLT. 468 where it was held that a person in possession without title is entitled to remain in possession even as against the lawful owner until evicted in due course of law and is therefore entitled to get an order of injunction restraining the true owner from disturbing his possession. The right of a person in possession without title to get an injunction on the basis of possessory title against the true owner is not a point arising in the second appeal and we are not expressing any opinion on that aspect. The point decided in 1964 KLT. 468 has no direct bearing on the question to be decided in the second appeal except that possessory title is recognised as the foundation of a claim for maintaining one’s possession. This only supports the view we are taking in this appeal.
  • 19. We therefore fall in line with the decisions of the Allahabad, Madras, Bombay and Patna High Courts and hold that possessory title can be made the foundation for a suit in ejectment filed even after the expiry of six months from the date of possession against a trespasser who has no title.”

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Government is the OWNER of All Leasehold-Plantation-Lands in Kerala.

Saji Koduvath, Advocate, Kottayam.

Key takeaways

  • Plantation-tenancy-lands (plantation, developed by the landlord) above 30 acres are exempted from Chapter II of the KLR Act, 1963. Therefore, tenants of such plantation-tenancy-lands are not entitled to benefits under Chapter II, such as Fixity of Tenure (to the tenants), Purchase Certificate within the ceiling limit, etc.
  • Tenancy-lands where Plantation is developed by the tenant (above or below 30 acres) are not exempted from Chapter II. Therefore, tenants of such Plantation lands are entitled to benefits under Chapter II, such as Fixity of Tenure (to the tenants), purchase certificate within the ceiling limit, etc.
  • Both such Plantation lands (plantation, developed by the landlord or tenant) vest in the Government under Sec. 72.
  • Both such Plantation lands are exempted from provisions as to the ceiling limit (under Sec. 81, in Chapter III)
  • Government Need Not Pay ‘Land-Value’, as such, if such Lands are Acquired.
  • A tenant who got ‘fixity’ over such land cannot ‘sell’ it as his absolute property.
  • A purchase certificate cannot be given by the LT for land beyond the ceiling limit.
  • Section 81(4) “permits use of the land not exceeding 5% of the extent of such holding for floriculture, dairy farms, hotels, restaurants, etc.
  • Note: •➧1. The ‘vesting in Govt’ under Sec. 72 is absolute.
    It is further clear from – Sec. 72E (tenant has to pay rent for the unassigned land(e.g., exempted plantation land) vested in Government under Sec. 72) and Sec. 112(5A)(a) (land-value need not be given to the land-owner, in case of acquisition). Sec. 72F(5)(h) [Land Tribunal to fix the rent stated in Sec. 72E]
                •➧2. Sec. 72B(2) KLR Act provides that a cultivating tenant will get a Purchase Certificate for the extent below the ‘ceiling limit’ alone.
                •➧3. The provisions of the KLR Act are legislated following Proviso to Article 31A(1) of the Constitution, which says that the State need not pay compensation to the land owners (when land is acquired) above the ‘ceiling limit‘.
  • Note: 1. Section 81(1) exempts Government lands from the provisions of Chapter III. The Proviso says that following Government lands will not stand exempted. 
    • 1. Government-lease-lands
    • 2. Lands that fall under Section 13 (Fixity) and
    • 3. Lands that fall under Section 72 (Lease lands vest in Government).
  • 2. The effect of Chapter III on Government-lease-lands and on the lands that fall under Section 13 (Fixity) and 72 (vest in Government) is that the tenants (both Government’s tenants and the erstwhile Private landholders’ tenants) have to pay ‘rent‘ to the Government under Sec. 72F(h).
  • 3. Under Sec. 112 (5A) of the KLR Act, on acquisition, the cultivating tenants are entitled to compensation for improvements (only) for the land vested in the Government under Sec. 72.
    Sec. 112 (5A)(a) says that the compensation for any building or other improvements belonging to the landowner shall be awarded to the Government; and clause (b) says that the balance remaining after deducting the compensation referred to in clause (a) and the value of the land occupied by the homestead or hut, if any, shall be apportioned between the cultivating tenant and the Government in proportion to the profits derivable by them from the land.

Abstract

Analysis of Exemption under S. 3(1)(viii), KLR Act

  • If tenant raised plantation on bare land leased –
  • Such tenants are not excluded (from Chapter II) by the ‘Exemption’ clause under S. 3(1)(viii).
    • Therefore, tenants of such tenancy-land are entitled for benefits under Chapter II, such as
      • Fixity under Sec. 13,
      • purchase certificate within ceiling limit.
    • Such lands vest in Govt. under Sec. 72 also.

Chapter I , KLR Act

  • Chapter II of the Kerala Land Reforms Act, 1963 pertains (mainly) to
    • ‘fixity’ (to tenants),
    • vesting of property in Govt.,
    • purchase of landlord’s rights by cultivating tenants,
    • issuance of ‘certificate of purchase’,
    • rights and liabilities of Kudikidappukars etc.; and
  • Chapter II shall not apply [under Sec. 3(1) ] to
    • leases-lands belonging to or vested in the Govt,
    • Leases of private forests,
    • tenancies of plantations exceeding 30 acres, etc.

Chapter III, KLR Act

  • Chapter III pertains, inter alia, to
    • ceiling limit,
    • surrender,
    • vesting of excess land in Govt. etc.; and
  • Chapter III shall not apply [under Sec. 81(1) ] to
    • lands owned or held by the Government,
    • private forests,
    • plantations, etc.

Proviso to Article 31A(1) of the Constitution of India

  • The provisions of the KLR Act as regards ‘vesting’‘excess land’ etc., are legislated predicated upon Proviso to Article 31A(1) of the Constitution which states that the State need not pay compensation to the former land owners (when land is acquired) above the ‘ceiling limit‘.
  • Proviso to Article 31A(1) reads as under:
    • “Provided further that where any law makes any provision for the acquisition by the State of any estate and where any land comprised therein is held by a person under his personal cultivationit shall not be lawful for the State to acquire any portion of such land as is within the ceiling limit applicable to him under any law for the time being in force or any building or structure standing thereon or appurtenant thereto, unless the law relating to the acquisition of such land, building or structure, provides for payment of compensation at a rate which shall not be less than the market value thereof.”

1. S. 3(1)(viii) deals with exemption of ‘Plantation-Tenancy’ (plantation, developed by the landlord), above 30 acres.

  • S. 3(1)(viii), exempt from Chapter II –
    • plantation-tenancy (plantation, developed by the landlord) above 30 acres.
    • That is, such plantation-tenancy-land, above 30 acres, should have been a plantation when it was leased.
    • In other words, such plantation-tenancy-land, above 30 acres, must have been developed as plantation by the landlord.

Thus, if tenant has raised plantation on bare land leased, it is not excluded (from the benefits under Chapter II offered to Tenants) by the Exemption under S. 3(1)(viii).

  • The tenants (who put up plantation on the bare land) have the rights and benefits provided under Chapter II – such as
    • fixity under Sec. 13 and
    • vesting in Government under Sec. 72.
    • (But not purchase certificate under Sec. 72B, for it is not allowable above ceiling limit.)

2. S. 3(1)(viii) provides benefit (fixity under Sec. 13) to

  • plantation-tenancy-land below 30 acres.
  • See: Rev. Fr. Jerome Fernandes v. Be Be Rubber Estate, 1972 KLT 613; Poddar Plan. Ltd v. Thekkemariveettil Madhavi Amma, 2014 1 ILR(Ker) 813; 2013 4 KLJ 781; 2014 1 KLT 439 .
  • Therefore:
    • Contract applies to termination of tenancy, above 30 acre  plantation-tenancy-land (land must have been a plantation when it was leased).
    • Land lord is entitled Sec. 81 exemption over such plantation.

Who is the OWNER of the (exempted) Leasehold-Plantation Lands in Kerala

It is the State, in case of lands beyond the ceiling-limit.

Following are the relevant provisions:

  • Sec. 13 – It proclaims that every tenant shall have fixity of tenure in respect of his holding.
  • Sec. 72 – It declares that the title of a land is vested in Government free from all encumbrances created by the landowners and intermediaries and subsisting thereon, if-
    • (i) it is held by a cultivating tenant and
    • (ii) the tenant is entitled to fixity of tenure.
  • Sec. 72E – The cultivating tenant shall pay rent to the Government from 01.01.1970 – for the unassigned land(e.g. exempted plantation land) vested in Government under Sec. 72],    
  • Sec.72F(5)(h) – Land Tribunal to fix the rent stated in Sec. 72E] and
  • Sec. 72B – It enables ‘cultivating tenants’ to get the assignment of leasehold land within ceiling area (by purchase certificate provided in Sec. 72K).
  • Sec. 81(1)(e) – Exempts plantation from ceiling limits.
  • Section 81(4) allows the person holding a plantation to use land “not exceeding 5% of the extent of such holding for floriculture, medicinal plants, for conducting dairy farms, for establishing hotels or resorts or other tourism projects, etc.
  • Section 87, Explanation II – It states that if a plantation for which exemption is given on recognition of a specific ‘plantation-crop’ is converted into any other ‘plantation-crop’, or the plantation activity is not continued, the exemption will be lost; and the converted land will be taken for considering the ceiling limit.
  • Sec. 112(5A) – When a land is acquired, compensation for any building or other improvements belonging to the land owner shall be awarded to the Government; and when compensation is given to the tenant, no ‘value of the land’ be given for the entire land].
  • Proviso to Article 31A(1) of the Constitution of India: The provisions of the KLR Act as regards ‘vesting’‘excess land’ etc. are legislated predicating upon Proviso to Article 31A(1) of the Constitution which states that the State need not pay compensation to the former land owners (when land is acquired) above the ‘ceiling limit

Sec. 72A – Compensation to land owner for vesting under Sec. 72 in Govt. – No right remains with (erstwhile owner) thereafter.

It is 16 times fare rent for land plus (+) value of structures of land owner plus (+) half value of timber trees. Note: Same rate under Sec. 55 & 72D(2) Land above ceiling limit payment is only under Sec. 88 – on surrendering land. (It is paid by Govt.)

  • Sec. 72D – Cultivating tenant to pay purchase price (for getting assignment).
  • Sec. 72D(1A)- No purchase price is land below One Hect.
  • Sec. 72D(2)  – Purchase price to Govt. – 16 times fare rent for land plus (+) value of structures of land owner plus (+) half value of timber trees) Note: Same rate under Sec. 72A & 55

Vesting in  Government u/s. 72 is independent of issuance of Purchase Certificate

The rights of the landlord would vest in the Government, under Sec. 72 KLR Act. A tenant is free to apply for and obtain Purchase Certificate within the Ceiling Limit under Sect. 59(2) and 72B or 72C. from such property. Vesting of lease property in Government under Sec. 72 is independent of issuance of Purchase Certificate. In Perumal Smaraka Nidhi v. Harrisons Malayalam Limited (RFA No. 336/2011; dt. 31. 01. 2013; K.M. Joseph, J.) held –

  • The rights of the landlord would vest in the Government, under Sec. 72 KLR Act.
  •  Sec. 72 would appear to contemplate vesting when there is no certificate of purchase issued under Sec. 59 (2).
  • If no certificate of purchase has been issued under sub Sec. (2) of Sect. 59 (irrespective of whether the tenants have applied), under Section 72, there will be vesting, if other conditions are satisfied.

Plantation Land Cannot be Assigned to a Tenant

  • From the above, it is clear:
    1. Plantation-tenancy-lands above 30 acre are not exempted from Chapter II; and are exempted from ceiling limit (under Chapter III).
    2. Tenants who hold the plantation-tenancy-lands are entitled to fixity of tenure under Sec. 13.
    3. As the tenants who hold the plantation land are cultivating tenants, such lands are vested in Government [according to Sec. 72].
    4. The plantation land, above ceiling limit [under Sec. 72B], cannot be assigned (by the Land Tribunal) to a tenant. (Note: No rider to Sec. 72B and 72C, by way of proviso or otherwise, exempting plantation.)
  • Therefore, the answer to the question – who is the OWNER of the (exempted) Leasehold-Plantation Lands in Kerala – is that the Government of Kerala is the OWNER. (See: Perumal Smaraka Nidhi vs M/S Harrisons Malayalam Ltd., 31. 01. 2013)

2. Provisions as to Fixity, Purchase Certificate,  Plantation-Exemption, Ceiling Area, etc.

  • Tenant & Fixity
    • Section 13(1) reads as under:
    • 13. Right of tenants to fixity of tenure.  (1) Notwithstanding any thing to the contrary contained in any law, custom, usage or contract or in any decree or order of court, every tenant, shall have fixity of tenure in respect of his holding, and no land from the holding shall be Limited except as provided in Sections 14 to 22.”
    • Tenant is defined in Sec 2 (57) as under:
    • (57) tenant moans any person who has paid or has agreed to pay rent or other consideration for his being allowed to possess and to enjoy any land by a person entitled to lease that land, and includes- …. ….. ….. “
  • Cultivating Tenant & Vesting of land in Government
    • Section 72(1) reads:
    • 72. Vesting of landlord’s rights in Government: (1) On a date to be notified by the Government in this behalf in the Gazette, all right, title and interest of the landowners and intermediaries in respect of holdings held by cultivating tenants (including holders of kudiyirippus and holders karaimas) entitled to fixity of tenure under Section 13, and in respect of which certificates of purchase under Sub-section (2) of Section 59 have not been issued, shall, subject to the provisions of this section, vest in the government free from all encumbrances created by the landowners and intermediaries and subsisting thereon the said date”
    • It provides (automatic) vesting of leasehold properties in Govt. Conditions thereof are:
      • (i) the land must be held by cultivating tenants;
      • (ii) they should be entitled to fixity of tenure under Sec. 13.
    • Sec. 2(8) defines cultivating tenant as under:
    • cultivating tenant means a tenant who is in actual possession of, and is entitled to cultivate, the land comprised in his holding.”
  • Issue of Purchase Certificate
    • Section 72B, 72C and 72K(1) & (2) read as under:
    • 72B. Cultivating tenants right to assignment. – (1) The cultivating tenant of any holding or part of a holding, the right, title and interest in respect of which have vested in the Government under Section 72, shall be entitled to assignment of such right, title and interest:
    • Provided that
    • (a) no cultivating tenant shall be entitled to assignment of the right, title and interest in respect of any holding or part of a holding under this Section if he, or if he is a member of a family, such family, owns an extent of land not less than-the ceiling area.
    • (b) where the cultivating tenant or, if he is a member of a family, such family, does not own any land or owns an extent of land which is less than the ceiling area, he shall be entitled to the assignment of the right, title and interest in respect of only such extent of land as will, together with the land, if any, owned by him or his family, as the case may be, be equal to the ceiling area.
    • Explanation. – In calculating the extent of land owned by the cultivating tenant or, where he is a member of a family, by such family, for the purposes of clauses (a) and (b) of the foregoing proviso, the portion of the land owned by such cultivating tenant or by the family, which is liable to be assigned to the cultivating tenants holding under him or such family, shall not be taken into account.
    • (2) The provisions of Section 82 shall, so far as may be, apply to the calculation of the ceiling area for the purposes of the proviso to Sub-section (1);
    • Provided that if no date has been notified under Section 83, the date notified under Section 72 shall be deemed to be the date notified under Section 83.
    • (3) Any cultivating tenant entitled to assignment of the right, title and interest in respect of a holding or part of a holding under Sub-section (1) may apply to the Land Tribunal within whose jurisdiction such holding or part is situate within two years from the dote of vesting of such right, title and interest in the Government under Section 72, or such further time as may be allowed by the Government in this behalf, for such assignment to him.
    • (4) An application under Sub-section (3) shall contain the following particulars, namely:(a) the village, survey number and extent of the holding or part to which the assignment relates.(b) the name and address of the landowner and intermediaries and also of every other person interested in the land and the nature of their interest so far as they arc known to him;(c) the particulars regarding the other lands owned or held by him or if he is a member of a family; by such family; and(d) such other particulars as may be prescribed.
    • (5) Where a cultivating tenant is entitled to the assignment of the right, title and interest in respect of only a portion of the holding held by him, he may indicate in the application under Sub-section (3) his choice of the portion to which the assignment shall relate.”
    • 72C. Assignment where application is not made by cultivating tenant Notwithstanding anything contained in Sub-section (3) of Section 72B [or Section 72BB], the Land tribunal may, subject to such rules as may be made by the Government in this behalf, at any time after the vesting of the right, title and interest of the landowners and intermediaries in tile Government under Section 72, assign such right, title and interest to the cultivating tenants entitled thereto, and the cultivating tenants shall be bound to accept such assignment.”
    • 72K. Issue of certificate of purchase. – (1) As soon as may be after the determination of the purchase price under Section 72F [or the passing of an order under Sub-section (3) of Section 72MM] the Land Tribunal shall issue a certificate of purchase to the cultivating tenant, and thereupon the right, title and interest of the landowner and the intermediaries, if any, in respect of the holding or part thereof to which the certificate relates, shall vest in the cultivating tenant free from all encumbrances created by the landowner or the intermediaries, if any.
    • (2) The certificate of purchase issued under Sub-section (1) shall be conclusive proof of the assignment to the tenant of the right, title and interest of the landowner and the intermediaries, if any, over the holding or portion thereof to which the assignment relates.”
    • Note: Sec. 72F speaks as to ‘Land Tribunal to issue notices and determine the compensation and purchase price; and Sec. 72MM provides for jointly applying, by the cultivating tenant, the landowner, the intermediary, the holders of encumbrances, etc, to the Land Tribunal, for an order for ‘assignment by mutual agreement’ to the cultivating tenant.

3. The Tenants are Liable to pay ‘Rent and Land Tax

The land being vest in Govt. under Sec. 72, Sec. 72E casts duty on the ‘cultivating tenant’ to pay ‘rentto the Government (for the unassigned land(e.g. exempted plantation land) vested in Government under Sec. 72).

In Jagannath Temple Managing Committee v. Siddha Math,  (2015) 16 SCC 542, while dealing with the ‘vesting’ under Land Acquisition Act,1894, it is held that ‘it is a settled principle of law that once a property is vested by an Act of legislature, to achieve the laudable object, the same cannot be divested by the enactment of any subsequent general law and vest such property under such law.’

  • (LA Act, 1894, Sec. 16 reads as under: Power to take possession. When the Collector has made an award under section 11, he may take possession of the land, which shall thereupon vest absolutely in the Government, free from all encumbrances.)

The concept of ‘vesting’ was also considered in The Fruit & Vegetable Merchants Union v. The Delhi Improvement Trust, AIR 1957 SC 344. In this decision it is held as under:

  • “(19) That the word “vest” is a word of variable import is shown by provisions of Indian statutes also. For example, S. 56 of the Provincial Insolvency Act (5 of 1920) empowers the Court at the time of the making of the order of adjudication or thereafter to appoint a receiver for the property of the insolvent and further provides that “such property shall thereupon vest in such receiver”. The property vests in the receiver for the purpose of administering the estate of the insolvent for the payment of his debts after realising his assets. The property of the insolvent vests in the receiver not for all purposes but only for the purpose of the Insolvency Act and the receiver has no interest of his own in the property. On the other hand, Ss. 16 and 17 of the Land Acquisition Act (Act 1 of LA), provide that the property so acquired, upon the happening of certain events, shall “vest absolutely in the Government free from all encumbrances”. In the cases contemplated by Ss. 16 and 17 the property acquired becomes the property of Government without any conditions or limitations either as to title or possession. The legislature has made it clear that the vesting of the property is not for any limited purpose or limited duration. It would thus appear that the word “vest” has not got a fixed connotation meaning in all cases that the property is owned by the person or the authority in whom it vests. It may vest in title, or it may vest in possession, or it may vest in a limited sense, as indicated in the context in which it may have been used in a particular piece of legislation. The provisions of the Improvement Act, particularly Ss. 45 to 49 and 54 and 54-A when they speak of a certain building or street or square or other land vesting in a municipality or other local body or in a trust, do not necessarily mean that ownership has passed to any of them.” [Quoted in Indore Development Authority vs Manoharlal (Arun Mishra, J.), (2020) 8 SCC 129.]

Sec. 72E reads as under:

  • 72E. Rent of holdings vested in Government but not assigned to cultivating tenants. – Where in respect of any holding or part thereof, the right, title and interest of the landowner and intermediaries have vested in the Government under Section 72 and the cultivating tenant is not entitled to the assignment of such right, title and interest by virtue of Sub-section (1) of Section 72, the cultivating tenant shall be liable to pay to the Government the rent payable under this Act from the date of vesting under Section 72.

With respect to payment of tax it is stated as under in Sec. 72S:

  • 72S. Liability for assessment alter the date of vesting under Section 72. (1)] Notwithstanding anything contained in the Kerala Land Tax Act, 1961, or in any other law for the time being in force, or in any contract, where the right, title and interest of the landowner and the intermediaries, if any, in respect of a holding have vested in the Government under Section 72, the cultivating tenant of that holding shall be liable to pay the basic tax payable in respect of that holding under the said Act and other taxes and cesses due in respect of that holding.
  • (2) In the case of a holding or part of a holding in respect of which an application for resumption under the provisions of this Act is rejected, the cultivating tenant shall be liable to pay the basic tax and other taxes and cesses in respect of such holding or part of the holding, as the case may be, with effect on and from the date notified under Sub-section (1) of Section 72.

4. Provisions as to Excess, Ceiling Return, Surrender, Exemption, Etc.

  • Section 81 – exemptions:
    • S. 81, the first Section in Chapter III deals with exemption from ceiling limit of plantation, industrial land, etc. Sec. 81(1)(e) reads as under:
    • Exemptions: (1) The provisions of this Chapter shall not apply to–
      • (a) lands owned or held by the Government ….
      • …. …..
      • (e) plantations;
      • …………”
    • Note: Provisions of Chapter III shall apply to Government- lease-lands also, by virtue of the Proviso to sub-section (1)(a) of Sec. 81). The Proviso reads as under:
    • “Provided that the exemption under this clause shall not apply to lands owned by the Government of Kerala and held by any person under lease whether current or time expired or otherwise.”
    • Plantation: Under Sec. 2, clause (44), plantation means any land used by a person principally for the cultivation of tea, coffee, cocoa, rubber, cardamom or cinnamon.
  • Section 82 & 83 – ceiling area:
    • S. 82 & 83 deal with ceiling area and bars holding land excess of ceiling fixed.
    • Sec. 83 reads as under:
    • “83. No person to hold land in excess of the ceiling area. With effect from such dates as may be notified by the Government in the Gazette, no person shall be entitled to own or hold or to possess under a mortgage lands in the aggregate in excess of the ceiling area.”
  • Section 85(1) – surrender of excess land:
    • 85. Surrender of excess land. (1) Where a person owns or holds land excess of the ceiling area on the date notified under Section 83, such excess land shall be surrendered as hereinafter provided: …. ….”

Read Blog: Relevant provisions of Kerala Land Reforms Act in a Nutshell

5. Effect of Conversion or Sale of A Portion of Exempted Land

Section 87 reads as under:

  • “S.87. Excess land obtained by gift, etc. to be surrendered – (1) Where any person acquires any land dafter the date notified under Section 83 by gift, purchase, mortgage with possession, lease, surrender or any other kind of transfer inter vivos or by bequest or inheritance or otherwise and in consequence thereof the total extent of land owned or held by such person exceeds the ceiling area, such excess shall be surrendered to such authority as may be prescribed.
  •        Explanation 1 – Where any land is exempted by or under Section 81 and such exemption is in force on the date notified under Section 83, such land shall, with effect from the date on which it ceases to be exempted, be deemed to be land acquired after the date notified under Section 83.
  •        Explanation II – Where, after the date notified under Section 83, any class of land specified in Schedule II has been converted into any other class of land specified in that Schedule or any land exempt under Section 81 from the provisions of this Chapter is converted into any class of land not so exempt and in consequence thereof the total extent of land owned or held by a person exceeds the ceiling area, so much extent of land as is in excess of the ceiling area, shall be deemed to be land acquired after the said date.

Explanation II is explained by the Full Bench of the Kerala High Court in Mathew K. Jacob v. District Environmental Impact Assessment Authority,2018-4 KLT 913, as under:

  • “The consequence is that the benefit of the exemption would be lost and the extent added to the account of the assessee or the declarant in determination of his ceiling area.”

That is, if a person converts any portion of his exempted land to any other class, that converted extent will be added to his account in determining his ceiling limit; and the Taluk Land Board can intervene. In short, the exemption will stand lost for that much extent of portion.

Section 87, Explanation II states that if a plantation for which exemption is given on recognition of a specific ‘plantation-crop’ is converted into any other ‘plantation-crop’, or the plantation activity is not continued, the exemption has to be lost; and the converted land will be taken for considering the ceiling limit. [Note: Here, ‘conversion’ does not envisage ‘sale’; for sale of plantation (land with plantation) alone is permitted – not sale after/for conversion.]

  • Note: In One Earth One Life v. State of Kerala, 2019-1 KLT 985, it is held that a ‘transfer’ of such a plantation will be “against the provisions of the Act(illegal).
  • Title to the property is not decided by the TLB (Harikumar v. State of Kerala, 2013 (2) KLT 44 (Para 9) Jagadeesachandran Nair v. Mamomohanan Pandarathil, 2013 (4) KLT 584 (para 11); Both decisions were referred to in Harrisons Malayalam Limited v. State of Kerala, Represented By The Chief Secretary, 2018-2 KHC 719; 2018-2 KLT 369 (para 54).

Sec. 87(1A) provides – Person referred to above (transferee) also should file statement (Return).

Purport of Sec. 87

Section 87 reflects the legislative intention in protecting plantations. The protection is on economic grounds. That is, certain crops and cultivations that made the land of Kerala renowned from ancient times were to be protected. Section 87 and the Explanations are to be read and interpreted in the light of their intentions. The Kerala High Court aptly appreciated these provisions in this background in One Earth One Life v. State of Kerala, 2019-2 KHC(SN) 10; 2019-1 KLT 985.

In State Human Rights Protection Centre, Thrissur v. State of Kerala, 2009(3)KLJ 110, it is held as under:

  • “19.There is no restriction on alienation of lands exempted under Section 81 (1)(a) of the Land Reforms Act ,since such lands are exempted from the operation of Chapter III of the Kerala Land Reforms Act dealing with ceiling on holding. It is not the excess land that is alienated but the exempted land………”

It was further held in para 21-  

  • ”……Any exemption from ceiling provision under the Kerala Land Reforms Act has a purpose and the purpose in the present case is public interest and that public interest is the use of land for industrial purpose. Since under the Kerala Land Reforms Act there is no restriction on alienation of the exempted category of lands and since the transferee is subjected to the acid test of eligibility and entitlement for exemption in terms of use of the land, the transfer made by the HMT will also be subjected to the same test, namely use of the transferred land for industrial purpose. In other words, HMT is legally entitled to transfer 100 acres of land notified under Ext.R1(i) notification, but the transferee will have to use that land for industrial purpose and that purpose only. Therefore, the transfer is not vitiated in any way; but the transferee will have to use the land only for industrial purpose. That is a covenant on the land.” (Quoted in: One Earth One Life v. State of Kerala, 2019-2 KHC(SN) 10; 2019-1 KLT 985)

In Everest Stone Crusher and Granites v. District Collector, District Collectorate, Kannur, 2020-6 KHC 289, it is held as under:

  • “Therefore, Ext.P13 prohibitory order issued by the 1st respondent District Collector, during the pendency of suo motu proceedings under Section 87 of the Act, cannot be said to be one issued without reasonable grounds to believe that any document relating to transfer of land of the land owned by the petitioner, which may be presented before the 3rd respondent registering officer, is intended to defeat the provisions of the said Act. The said order warrants no interference in this writ petition, invoking the extra ordinary jurisdiction of this Court under Article 226 of the Constitution of India.”

6. Fragmentation has to be Treated as Conversion for Non-exempted Category

The decision in One Earth One Life v. State of Kerala, 2019-2 KHC(SN) 10; 2019-1 KLT 985, arose from the Writ Petition filed for a declaration that the fragmentation and sale of a Rubber Plantation for non-plantation purposes was illegal as it defeated the purpose of the Kerala Land Reforms Act. When the matter was placed before the Taluk Land Board under Sec 87, KLR Act, it found that there was no change in classification of the land and therefore dropped the proceedings. The High Court held as under:

  • “34. Section 81 of the KLR Act is in pith and substance a special provision, with its main objective of giving exemption to certain lands including the lands maintained as plantations is to prevent fragmentation of the land and to keep it as plantation itself to improve the economy of the state for welfare of people as a whole while the Act creates a regime, the State is under an obligation to safeguard, the intended purpose of the provisions of the Act in its spirit. ….. …… It could be gathered from the records that the proposal to transfer 1.03 acres of land to each workers in discharge of their service or retrenchment benefits will definitely divide the plantation into separate slots and that would definitely change the character/nature of the plantation, which could be termed as ‘conversion’ and that will be against the provisions of the Act.”
  • “37. …. Fragmentation of the estate and transfer of it has to be treated as a case of conversion of plantation into some other category of land. Such being the scenario, fragmentation amounts to serious violation of the provisions of KLR Act. Hence, we are not impressed by the argument of the learned counsel for the respondent No.18 that the fragmented plots will be maintained as plantation by the transferees, so as to extend/avail the benefit of HMT’s case (supra). Taking into account of all the relevant aspects, we have no hesitation in holding that dropping of the suo motu proceedings initiated under Section 87 of KLR Act by the TLB in a cursory manner, is not at all reasonable or justifiable when tested on the touchstone of the object and intention, which the legislation seeks to achieve and beyond what is required, in the interest of the public.”

7. Can a Tenant of Plantation Transfer his Rights, Fragmenting the Plantation

Possession by itself is a substantive right recognised by law. It is heritable and transferable. (Kuttan Narayanan v. Thomman Mathayi, AIR 1966 Ker 179; Phirayalal Kapur Vs. Jia Rani, AIR 1973 Delhi 186; Nallammal Vs. Ayisha Beevi, 2017-5 Mad LJ 864). 

See Blog: POSSESSION is a Substantive Right in Indian Law

Therefore, a tenant of plantation having rights of fixity (Sec. 13) may have the right to transfer it to another. In any case, the change of character or nature of the plantation by fragmentation being amount to ‘conversion’ that will be against the provisions of the Act, as pointed out in One Earth One Life v. State of Kerala, 2019-2 KHC(SN) 10; 2019-1 KLT 985.

9. Cultivating Tenants, were Obliged to Apply LT & The Legal Basis of Balanoor Plantations case

The legal basis of the decision, Balanoor Plantations & Industries Ltd. v. State of Kerala, 2018(3) KLT 283, can be derived from Sec. Sec. 85(3) of the KLR Act.

Sec. 85(3) and (3A) of the KLR Act read as under:

  • (3). Where, after the final settlement of claims for resumption of lands held by a person as tenant, such person holds land in excess of the ceiling area, or where after the purchase of the right, title and interest of the landowner** and the intermediary by the cultivating tenant in respect of lands owned by a person, such person owns land in excess of the ceiling area, such excess land shall be surrendered as hereinafter provided.
  • (3A). The person bound to file a statement under Sub-section (2) shall, within a period of three months from the date of final settlement or purchase, file a statement before the Land Board, and the provisions of the said Sub-section shall, as far as may he, apply in regard to the particulars to be contained in such statement, the calculation of the excess land and for the procedure for the surrender of the same.] [Substituted by Act No. 35 of 1969.

**Why the WordsAfter The Purchase of the Right, Title And Interest of the Landowner” Included?

It is definite: Excess shall be surrendered. If the claimant of Plantation Exemption (under Sec. 81) is a tenant, he must have approached the LT (with respect to each plantation, if he has more plantations under different landlords).

  • Because (i) this sub-section itself says as to the settlement of claims for resumption and purchase of the right, title, and interest of the landowner by the cultivating tenant, and (ii) LT is the only authority to determine tenancy (Land Board cannot determine it). It is the principle applied in the Balanoor case.

Land Board or Taluk Land Board (deals with exemption on the ground of plantation, excess land issues etc.) cannot adjudicate on tenancy right.

Note: A tenant cannot avail benefits declaring himself to be a cultivating-tenant; on the contrary, he has to approach the competent statutory authority (for the same) under the KLR Act; that is, the Land Tribunal.

  • Note: Tenant must have approached the LT (with respect to each plantation, if he has more plantations) (He cannot declare himself a tenant)
    It is clear from the following provisions:
    S. 54(1) – A cultivating tenant has to apply to LT(for the purchase of right, title and interest.)
    S. 55 – Purchase price and fair rent fixed by LT
    S. 57 – LT after giving notice and enquiries, pass orders (on the application for the purchase of right, title and interest).
    S. 57(3) – LT allots the purchase land it determines.
    S. 57(6) – The Land Tribunal forwards a copy of orders to the Land Board.
    S. 61 – Cultivating tenant to pay rent (under orders of LT)
    S. 59 – The purchase price shall be deposited with the LT (to the credit of the Land Board) and issue of certificate – to cultivating tenant.
    S. 72D. The cultivating tenant has to pay purchase price to the Government (fixed by the LT) on the assignment to him of the right, title and interest of the landowner. (If the extent of land is one hectare or below, he shall not be liable to pay.)

A cultivating tenant, “entitled to assignment” of the right under Sec. 72B, if failed to apply the same, will not have ‘vested right to continue’, as a cultivating tenant (in any case, beyond the ceiling limit) and he will not be entitled to the benefit of fixity under Sec. 13 of the KLR Act.

  • Note: The tenant who opts to avail benefits of plantation-exemption, under Sec. 81, cannot seek fragmentation (Sec. 87, Explanation II) of the plantation land and obtain purchase-certificate (under Sec. 72A, 72B or 72C). Still, he stands as a cultivating tenant, “entitled to assignment” of the right under Sec. 72B. As shown elsewhere, there is an option for the tenant – either to obtain purchase-certificate or to avail plantation-exemption.

Sec. 72B provides for cultivating tenant’s rights to get assignment by purchase certificate (through LT) – within ceiling area. A tenant was “obliged to apply” for it within 2 years from 1-1-1970. Therefore, the cultivating tenants entitled to assignment of the right, title and interest were “obliged to apply” to the Land Tribunal within the time fixed for asserting the claim as cultivating tenants. This decision (Balanoor Plantations) also says that tenants having ‘no bona fide claim’ as to cultivating-tenancy will not have the benefit of fixity under Sec. 13 of the KLR Act, and they will have ‘no vested right to continue’.

Sec. 73B(3) reads as under:

  • “(3) Any cultivating tenant entitled to assignment of the right, title and interest in respect of a holding or part of a holding under Sub­section (1) may apply to the Land Tribunal within whose jurisdiction such holding or part is situate within two years from the date of vesting of such right, title and interest in the Government under Section 72, or such further time as may be allowed by the Government in this behalf, for such assignment to him.”

It is not lawful to initiate Suo Motu proceedings (under Section 72C) by the Government for the benefit of a Plantation Tenant (entitled, within the time allowed, to purchase a certificate below the ceiling limit), because Explanation II to Section 87 disfavours the fragmentation of the plantation land.

  • Still, because of subsection (3) of Section 85, the tenant could have obtained a purchase certificate (under Section 72B) within the statutory period.

10. Who is the OWNER of Exempted (Leasehold) Plantation (Private) Lands in Kerala?

It is the Government itself, though by virtue of Chapter II (Sec. 13), the tenant has ‘Fixity’. It is clear from the following:

  • 1. Ceiling Limit: The maximum extent of land assignable under a Purchase Certificate is circumscribed by the ceiling limit, under Section 72B(1)(a) and (b) of the Kerala Land Reforms Act, 1963.
  • 2. Plantation Exemption: Owners and tenants of plantations are permitted to retain plantation lands in excess of the ceiling limit by availing the ‘exemption’ provided under Section 81. However, the said exemption does not confer any absolute proprietary right over such land.
  • 3. Exempted-plantation-land Vest in Government: Title/ownership of unassignedexempted-plantation-land is vested with the Government, under Section 72(1).
  • 4. Prior Owners and Tenants will be Deemed as Tenants of the Govt. Such tenants have to pay ‘Rent’ to the Government (Section 72E) for the unassignedexempted-plantation-land.  The rent is fixed by the Land Tribunal [Section 72F(5)(h) ].
  • 5. On Acquisition, No Land Value to Previous Owners or Tenants: If the land vested in Government under Section 72 is acquired, land-value will not be paid to the former land-owner or the tenant (Section 112(5A).
  • 6. Exemption will be lost, if “Fragmented”:The exemption granted to a plantation will be lost if it is “fragmented” or the plantation-crop is abandoned (under Section 87).

It is Government itself, though by virtue of Chapter II (Sec. 13) the tenant has ‘Fixity’. 

  • 1. Plantation (lease) lands VEST in GOVT, automatically
  • Because,
  • Sec. 72 provides for 
    • mandatory and involuntary vesting in Government
    • of leasehold lands that is held by cultivating tenants entitled to fixity of tenure under Sec. 13 (even if the extent exceeds ceiling limit).
    • See: Perumal Smaraka Nidhi vs M/S Harrisons Malayalam Ltd., 31. 01. 2013.
  • 2.  ‘Vesting’ in Govt. is ‘Vesting of Ownership
  • It is for the reasons –
    • Declared to be ‘vested’ in Government (Sec. 72).
    • Plantation land cannot be fragmented (Sec. 87, Explanation II); and, therefore (if the tenant opts to avail benefits of plantation- exemption, under Sec. 81) no part of plantation land can be assigned, or purchase-certificate can be issued, to the tenants (under Sec. 72A, 72B or 72C), even within ceiling limit. (Note: No rider to Sec. 72B and 72C, by way of proviso or otherwise, exempting plantation.)
    • Such a tenant is liable to pay ‘rent’ (Sec. 72E) to the Government (for the unassigned land(e.g. exempted plantation land) vested in Government under Sec. 72).
  • 3. ‘Exemption’ in Chapter III Cannot be read into Sec. 72B(2)
  • Sec. 72B(2) specifies that the provisions of Section 82 (as to ceiling limit) shall apply (when assignment is made; that is, purchase certificate is issued). It reads-“
    • (2) The provisions of Section 82 shall, so far as may be, apply to the calculation of the ceiling area for the purposes of the proviso to Sub-section (1).”
  • As per Section 82, the “ceiling area” in the case of an adult unmarried person or a family consisting of a sole surviving member shall be five standard acres, so however, the ceiling area shall not be less than six and more than seven and a half acres in extent. Sub-section (2) of Section 82 provides that for the purposes of Chapter III, all the lands owned or held individually by the members of a family or jointly by some or all of the members of such family shall be deemed to be owned or held by the family. In calculating the extent of land owned or held by a family or an adult unmarried person, Sub-section (3) of Section 82 provides for taking into account the share held by a member or members of the family or adult unmarried person jointly with other persons. Sub-section (4) of Section 82 provides for ignoring conversion of any class of land in Schedule II to any other class of land in that Schedule after the commencement of the Act. Explanation II to Section 82 provides that for the purposes of the said Section, an adult unmarried person shall included a divorced husband or divorced wife who has not remarried. (State of Kerala v. Puliyangattu Krishnan Master, ILR 2008-1 Ker 563) 
  • The exemption provision in Sec. 81 (Chapter III) cannot be brought-forth or read-into Sec. 72B (provision for assignment/purchase-certificate) in Chapter II.
  • Because,
    • The scheme of the KLR Act is not to confer ‘title’ on the planters in large area (KLR Act is, inter alia, to confer ‘title’ to cultivating tenants).
    • Proviso to Sec. 72B(1) shows – Sec. 72B(1) is an an independent provision. (It says as to assignment to a cultivating tenant within the ceiling limits.)
    • Sec. 72B(2) refers Section 82 (as to ceiling limit) as an independent provision – only to make clear the ‘limit’ or area; that is – “so far as may be, apply to the calculation of the ceiling area“.
    • When a provision (here, ceiling limit in Sec. 82) in Chapter III is referred in a section in another Chapter (here, Sec. 72B), to state the limit in area, it cannot be said – the colour or smell reflected on the first provision (here, Sec. 82), by virtue of another section (here, Sec. 81, the exemption provision) is reflected also on the latter section (here, Sec. 72B).
    • Note: No rider to Sec. 72B and 72C, by way of proviso or otherwise, exempting plantation.
  • Further:
    • Chapter II of the KLR Act (dealing with ‘Tenancy’) is exclusive and exhaustive as to ‘fixity’, and ‘vesting’ of land in Government.
    • It is not stated anywhere in the Act – the right and title of the (leased-plantation) land vested in Government under Sec. 72, will be divested in any manner (to the previous owner, or to the tenant or to anybody else), in any circumstance.
    • Sec. 72E provides for collection of ‘rent‘ from the holders of the plantation (for the unassigned land(e.g. exempted plantation land) vested in Government under Sec. 72). It is for the reason that (ownership of) the land vests in Govt.
    • Proceedings initiated by Taluk Land Board under Chapter III (in respect of plantation) do not confer title.
  • 4. Government Need Not Pay ‘Land-Value‘, as such, if Acquired
    • For the above (plantation land vest in Govt.), the Government Need Not Pay ‘Land-Value‘, as such, to the tenant, or the former owner, if such Lands are Acquired.
  • 5. Tenant cannot ‘Sell’ Plantation Land as his absolute property
    • A tenant who got ‘fixity’ over such land cannot ‘sell’ this land as his absolute (ownership) property.

What is the legal right attached to former ‘tenants’ of Plantations, after vesting the land with Govt. under Sec. 72?

  • Though the tenant has fixity (Sec. 13), it is not Tenancy – For no landlord-tenant relation with the Govt.  (At the most, it can be a statutory-tenancy.)
  • Not Grant or Licence/Permission – For Grant as well as Licence/Permission arise from a contract (express or implied).
  • Therefore, it can termed only as a “Legal Right conferred by Statute“, the KLR Act.
  • What are the Stipulations attached to that “Legal Right”?
    • Subject to the condition – not to “convert” it for any other use, other than the specific plantation (Sec. 87).
  • When Such a land is Required for Govt., Should it be Acquired?
    • The ownership being vested in Govt. it need not be ‘strictly’ “acquired”.
    • But no provision in Sec. 72 for ‘resuming’, if and when Govt. needs it.
  • Sec. 112 of the KLR Act
    • But, Sec. 112 of the KLR Act says as to ‘Apportionment of land value in cases of acquisition’.
    • Because the “Legal Right is conferred by Statute“ upon the former tenants of the plantation, they are entitled for certain compensation, when that land is required for the Govt..
    • In cases falling under Chapter II (pertaining to, tenants entitled for fixity, issuance of purchase certificate etc.) Section 72 deals with the right, title and interest of the land owners and intermediaries in respect of the holdings held by the cultivating tenants; and says -the land will be free from encumbrances created by the land-owners and intermediaries.
    • However, insofar as the cultivating tenant is concerned, an absolute right is vested with him to seek assignment (within ceiling limit) subject to the payment of purchase price – as stated in Section 72D. (See: Glen Leven Estate (P) Ltd. v. State of Kerala, 2022-6 Ker LT 439.)
    • No ‘authority’ is also named in any law to fix the compensation to be given to the former tenants, when the Govt. requires it.
  • Therefore, it is said – Apportionment of land value in cases of ‘acquisition’.
    • Note:  It makes no difference (SUBSTANTIALLY, IN DETERMINING COMPENSATION) whether such a plantation land is “acquired” or not. Because, even if the land is not ‘acquired’, Govt. has to pay compensation for improvements to the former tenants (who holds the land by virtue of the “Legal Right conferred by Statute“, the KLR Act).

Who is the OWNER of Exempted (Leasehold/Granted) GOVERNMENT  (Plantation) Lands ?

  • It is Govt. itself.
  • Chapter II pertaining to fixity, issuance of Purchase Certificate etc. do not apply to Government lands. Therefore the Provisions as to the Grant or Lease in the Grant-Deeds and that in the Lease-Deeds fully continues to apply.
  • Chapter III grants exemption from ceiling limit on Plantations in Government-lands also.
  • Therefore, it is clear that the OWNERSIP of Exempted (Leasehold) Plantation (Govt.) Lands continues with the Government (in spite of the exemption from ceiling limit on Plantations in Chapter III).
  • Further, the Government Grants Act, 1895 and Government Lands Grants Act, 1940 apply to Malabar and Cochin areas, respectively. These Acts made restrictions in the “grant or other transfer of land or of any interest therein heretofore made or hereafter to be made by or on behalf of the Government to, or in favour of, any person whomsoever”.  By virtue of Section 2, Transfer of Property Act and Tenancy Acts did not to apply to lands given as grant by the Government.

Apportionment’s of land value in cases of Acquisition

Sec. 112 of the KLR Act reads –

  • “112. Apportionment’s of land value in cases of acquisition – (1) Where any land is acquired under the law for the time being in force providing for the compulsory acquisition of land for public purposes, the compensation awarded under such law in respect of the land acquired shall be apportioned among the landowner, intermediaries, cultivating tenant and the kudikidappukaran in the manner specified in this Section.
  • (2) The compensation for any building or other improvements shall be awarded to the person entitled to such building or other improvements.
  • (3) The kudikidappukaran shall be entitled to the value of the land occupied by his homestead or hut subject to a minimum of-
    • three cents in a city or major municipality; or
    • five cents in any other municipally; or
    • ten cents in a panchayat area or township.
  • (4) The difference between the value of three cents or five cents or ten cents, as the case may be, and the value of the extent of the land occupied by the homestead or hut shall, notwithstanding anything contained in the Kerala Land Acquisition Act, 1961, be borne by the Government or the local authority or the company or other person on whose behalf the land is acquired.
  • (5) The balance remaining after deducting the compensation referred to in Sub-section (2) and the value of the land occupied by the homestead or hut shall he apportioned among the landowner, the intermediaries and the cultivating tenant in proportion to the profits derivable by them from the land acquired immediately before such acquisition.
    • Explanation. – “Profits derivable from the land” shall be deemed to be equal to (i) in the case of a landowner, the rent which he was entitled to get from the tenant holding immediately under him; (ii) in the case of an intermediary, the difference between the rent which he was entitled to get from his tenant and the rent for which he was liable to his landlord; and (iii) in the case of a cultivating tenant, the difference between the net income and the rent payable by him; and the rent payable by the cultivating tenant and the intermediary for the purposes of this Explanation shall be as calculated under the provisions of this Act.
  • (5A) Notwithstanding anything contained in Sub-sections (2) and (5), where there the right, title and interest of the landowner and the intermediaries in respect of the land acquired have vested in the Government under Section 72, –
    • the compensation for any building or other improvements belonging to such landowner and intermediaries shall be awarded to the Government; and
    • the balance remaining after deducting the compensation referred to in clause (a) and the value of the land occupied by the homestead or hut, if any, shall be apportioned between the cultivating tenant and the Government in proportion to the profits derivable by them from the land.
  • Explanation. – “Profits derivable from the land” shall be deemed to be equal to-
    • in the case of the cultivating tenant, the difference between the net income immediately before the acquisition and the rent which he was liable to pay immediately before the date on which the right, title and interest of the landowner and the intermediaries have vested in the Government; and
    • in the case of the Government, such rent.
  • (7) In this Section, “homestead” includes a dwelling house occupied by a person who is deemed to be a kudikidappukaran under Explanation IIA to clause (25) of Section 2.”

Apportionment depends upon rights on the date of acquisition

  • Valia Raja v. Veeraraghava Iyer, 1961 Ker LT 103, it was held that the question of apportionment of compensation has to depend upon the rights of the parties on the date of the acquisition. Referrd to in: Varkey Thomas Vs. Annamma Abraham,  1969 Ker LT 903.

Glen Leven Estate (P) Ltd. v. State of Kerala, 2022-6 Ker LT 439

  • In Glen Leven Estate (P) Ltd. v. State of Kerala, 2022-6 Ker LT 439, the question as to ‘rival claims raised by the cultivating tenant and landlord for compensation on acquisition’ arose. The land was leased out by landlords. The lease-rights came in the cultivating tenants by transfer. The Government contended that the tenant was a cultivating tenant and the land vested upon the Govt. under Sec. 72 KLR Act. Hence tenant alone would be entitled to get compensation for the improvements to be determined under the Kerala Compensation for Tenants Improvements Act, 1958, in view of Section 20(1) of the KLR Act.
  • The landlords argued that the land was a plantation (over 30 acres) when it was (originally) leased, and therefore, they are entitled to claim exemption and benefits in the light of the exemption under clause (viii)  of Section 3 (1) of the KLR Act. Since there would be no fixity of tenure, it being a plantation, there would not be vesting of rights of the land owner in the Government. Hence, there should be the apportionment of the compensation between the lessor and the lessee and it should be decided in the acquisition proceedings.
  • The single Judge dismissed the writ petition, ‘leaving open the liberty of the lessee as well as the landlords, to approach the civil court seeking relief against the Government, and also to resolve the inter se dispute by and between the tenant and the landlords’.
  • The Division Bench, in appeal held that ‘land acquisition’ proceedings are to be initiated. It is pointed out that (even if it is a land vested in Govt.) there is no provision in Sec. 72 for ‘resuming’ if and when Govt. need it. The court also observed as under –
    • “31. On an analysis of the provisions of Section 72(1) of the Act, 1963, it is clear that when the Government notified the said provision with effect from 01.01.1970, all right, title and interest of the landowners and intermediaries in respect of holdings held by cultivating tenants (including holders of kudiyirippus and holders karaimas) entitled to fixity of tenure under Section 13, and in respect of which certificates of purchase under sub-Section (2) of Section 59 have not been issued, vested in the Government.
    • 32. Therefore, it is clear from Section 72 that what is vested with the Government is the right, title and interest of the land owners and intermediaries in respect of the holdings held by the cultivating tenants. It is nothing but a legal fiction by which the interest held by a cultivating tenant in a property of a landlord or intermediary is protected from 01.01.1970 .
    • 34. On a conjoint reading of Sections 72 and 72A, it can be seen that vesting of rights in the Government contained under Section 72 is the rights held by the landlord and the intermediary in respect of holdings held by the cultivating tenants. However, the same will not, in any manner, interfere with the rights enjoyed by a cultivating tenant in contemplation of the provisions of the Act, 1963.”
    • 42. Therefore, we have no doubt in our mind to hold that Section 72 of Act, 1963 would only deal with the right, title and interest of the land owners and intermediaries in respect of the holdings held by the cultivating tenants free from encumbrances created by the land owners and intermediaries. However, the legal provisions discussed above would make it clear that insofar as the cultivating tenant is concerned, an absolute right is vested with him to seek assignment subject to the payment of purchase price in contemplation of Section 72D of the Act, 1963.
  • While considering the right of landlord, it is pointed out (basing on the principle, or scheme of the KLR Act**) that the landlord may have right for compensation under Section 72BB. The Division Bench said-
    • “36. So also, sub-Section (1) of Section 72BB dealing with ‘the right of landlord to apply for assignment and compensation’ specifies that any landowner or intermediary, whose right, title and interest in respect of any holding have vested in the Government, may apply to the Land Tribunal for the assignment of such right, title and interest to the cultivating tenant and for the payment of the compensation due to him under Section 72A.”
  • **Note: 1. If plantation-lease-(leasing a land when plantation existed)-above-30-acre-
    • Sec. 72, 72 BB etc. will not apply (such land being excluded from Chapter II, under Sec. 3(1)(viii), KLR Act).
  • 2. In case of a plantation-lease-above-30-Acre-
    • on termination of the lease period, the land lord can resume the land, on the basis of his title; for, the tenant will not have fixity in such case, the land being exempted from the benefits of Chapter II (as per Sec. 3(1)(viii) of the KLR Act).
  • 3. The landlords of such plantation will get the benefits (under Sec. 81) and protection from ceiling limit that is stipulated under the provisions of Sec. 82, 83 etc. (that is, there will be no ceiling limit).
  • 4. In such a case, the right of landlord may be on a higher level or footing than the tenant (to get compensation).
  • 5. It cannot be compared with a plantation that is put up by the tenant. The tenants of such plantation will-
    • get fixity under Sec. 13 (though they will not get Purchase Certificate)
    • get the benefits and protection (under Sec. 81) from ceiling limit that is stipulated under the provisions of Sec. 82, 83 etc. (that is, there will be no ceiling limit).
    • In such a case, the right for compensation, if any, of the landlord will be nil or negligible.
  • The Division Bench, inter alia, on the above observations directed ‘the State and its officials to take proceedings for the acquisition of the land’.

Criticism on Glen Leven Estate (P) Ltd. v. State of Kerala, 2022-6 Ker LT 439

The Division Bench failed to consider–

  • The right, title and interest of the land (above ceiling limit) ‘vest’ with the Government under Sec. 72. It is absolute. It is not a ‘fiction; but, it is real and actual.
  • In K. Jayaprakashan v. State of Kerala, 2023-3 KLT 541, it is observed as under: “Section 72 of the Act deals with vesting of landlord’s rights in Government. As per sub-section (1) of Section 72 ….  all right, title and interest of the landowners and intermediaries in respect of holdings held by cultivating tenants (including holders of kudiyiruppus and holders of karaimas) entitled to fixity of tenure under Section 13 … shall, subject to the provisions of this section, vest in the Government free from all encumbrances created by the landowners and intermediaries and subsisting thereon on the said date”.
  • The absolute nature of vesting is further clear from Sec. 72E and Sec. 112(5A).
  •  The nature of this statutory ‘vesting in Govt’ (under Sec. 72) is further clear from – Sec. 72E (tenant has to pay rent for the unassigned land(e.g. exempted plantation land) vested in Government under Sec. 72) .
  • Sec. 112(5A) deals with unassigned land (that is, no purchase certificate is given). Under this sub section land-value need not be given (even) to the land-owner or the tenant (tenant has no right above that of land owner in this regard) over and above the “value of the land occupied by the homestead or hut” – that is, the actual area where the ‘homestead or hut’ is situated; whatever may be the area of land outside it.
  • This provision is applied to lease-lands vested in Govt. under Sec. 72 and no purchase certificate is given (to the tenant)., in case of acquisition).
  • Sec. 72B(2) KLR Act spells-out that a cultivating tenant will get Purchase Certificate for the extent below the ‘ceiling limit’ alone. That is, the tenant has no “absolute rights” above the ceiling limit.
  • Plantation-lands, usually, involve Hundreds or Thousands of Acres of “excess” land. The assignment-possible-land (within ceiling limit) may be miniscule (7.5 acres or 15 acres). Therefore, the analogy drawn by the Bench (tenant has a right seek assignment) is not apt at all.
  • When land vested in Govt. under Sec. 72 is acquired, in the light of Sec. 112(5A) land-value need not be given to the land-owner or the tenant, over and above the “value of the land occupied by the homestead or hut” – that is, the actual area where the ‘homestead or hut’ is situated; whatever may be the area of land outside it.
  • The aforesaid provision of law in the KLR Act is legislated following Proviso to Article 31A(1) of the Constitution which says that the State need not pay compensation to the land owners (when land is acquired) above the ‘ceiling limit‘.
    • When a landowner has no vested right over and above the ceiling limit, it is illogical and irrational to say that the tenant will have it.
  • The rights of ‘tenants’ of Plantations, to continue in the land till the plantation exists, after vesting the land with Govt., is a ‘Legal Right conferred by Statute’. It is not Tenancy – for no landlord-tenant relation with the Govt. It is not a Grant or Licence/Permission – for such rights arise from a contract (express or implied). Therefore, it can be termed only as a “Legal Right conferred by Statute“, the KLR Act.
    • It goes without saying – If no compensation is payable to the land-owners above the ceiling limit, it need not be given to tenants.
  • It is most unjustifiable to confer undue rights or benefits to the plantation-tenants (majority are BIG Companies) which had not been given to Maharaja of Travancore (whose 191 acres of lands in Thiruvananthapuram – above the ceiling limit, 15 acres – in the City was ‘mercilessly’ taken under the Orders of the Land Board Trivandrum, No. LB(B)2-18919/70, dated 15.01.1972). It is a sheer fact that lands of thousands of middleclass property owners was also harshly taken by under the provisions of the Act. (Note: Only limited right to continue the specified plantation-crop alone is given by the ‘exemption’; and, according to law, in case the land is ‘converted’, the exemption-benefit would be lost.)

No Land value to be given for the “excess” land (Beyond Ceiling Limit)

From the following words in Sect. 112, it is beyond doubt that no Land value to be given for the entire land and it is limited to a portion.

  • building or other improvements
  • land occupied by the homestead or hut”
  • any building or other improvements“.

It is true, “exemption” is given to plantation, to hold land over and above ceiling limit. It is only a statutory permission to continue, subject to conditions. It will be lost when it is “fragmented” or the crop is abandoned. As stated elsewhere, it is also most unjustifiable to confer undue rights or benefits to the plantation owners or tenants (majority are BIG Companies) which had not been given to thousands of middleclass property owners whose property had been harshly sized or expropriated under the provisions of the KLR Act.

1040 Proclamation and Grant of Plantation Land by Travancore Government

In George A. Leslie v. State of Kerala, AIR 1970 Ker 21 (K. K. Mathew, J.), it was argued that benefits of 1040 (1865) Travancore Pattom Proclamation were also entitled to by the Grantees of plantation land. After analysing the provisions of the grant deed it was held that Proclamation of 1040 (1865), which conferred full rights on tenants of pandarapattom land, did not apply to grant-lands.

George A. Leslie v. State of Kerala – AIR 1970 Ker 21

It was observed in this decision as under:

  • “Ext. P-l is a grant made under the Travancore Regulation II of 1040 and the Rules for the sale of Waste Land on the Travancore Hills dated 24th April 1865. It conferred a heritable and transferable interest in the grantees of the land comprised in it. Clause 5 in Ext. P-l, which is identical with Section 5 in Form A of the Rules for the sale of Waste Land on the Travancore Hills, is the relevant provision for deciding this question. It provides:
    • “Grantees can appropriate to their own use within the limits of the grant all timber except the following and such as may hereinafter be reserved, namely, Teak, Gole Teak, Blackwood, Ebony, Karcomthaly, Sandalwood; should they carry any timber without the limits of the grant, it will be subject to the payment of kuttikanom or customs duty or both, as the case may be, in the same way as timber ordinarily felled”.
  • 10. We think that if title to the reserved trees passed to the grantees, a provision of this nature would have been quite unnecessary. There was no purpose in stating that the grantees will be free to appropriate the reserved trees for consumption within the limits of the grant, if title to the trees passed to the grantees; the provision is a clear indication that the grantees were allowed to cut and appropriate the reserved trees for consumption within the limits of the grant as a matter of concession.”

It was pointed out –

  • Travancore Pattom Proclamation of 1040 (1865), which conferred full rights on tenants of pandarapattom land. They have no application to the land or trees comprised in grants for cultivation of coffee or tea (under Rules for the sale of Waste Land on the Travancore Hills dated 24th April 1865).

The above findings of Mathew, J. was approved the Apex Court in State of Kerala v. Kanan Devan Hills Produce Co. Ltd., (1991) 2 SCC 272, under the following words:

  • “We agree with the interpretation given to the clause by Mathew, J. and hold that the respondent- company did not acquire absolute proprietary rights over the Concession Area or the trees and the timber therein.”

The effect of Grant deeds were also considered in the following two important cases by the Supreme Court-

  • Kannan Devan Hills Produce Co. Ltd. v.  The State of Kerala, AIR 1972 SC 2301
  • State of Kerala v. Kanan Devan Hills Produce Co. Ltd., (1991) 2 SCC 272

Kannan Devan Hills Produce Co. Ltd. v.  The State of Kerala, AIR 1972 SC 2301

The Supreme Court, in Kannan Devan Hills Produce v. The State of Kerala, AIR 1972 SC 2301 (Sikri (Cj), Shelat, A.N. Ray, I.D. Dua, , H.R.  Khanna, JJ.) held that Kenan Devan Hills Concession (on grant deeds) fall within the expression “Janmam right” vested with Sircar. The State of Kerala made an Act – the Kannan Devan Hills (Resumption of Lands) Act, 1971, to “vest” the possession of the land remained in the possession of the Kannan Devan Hills Produce Co. Ltd.

According to the petitioner Company, ‘it has at all times been holding, cultivating, enjoying and dealing with the Concession Land as the absolute, owner thereof’.

According to the State, this land is dealt with under this heading – Pandaravaka Lands, i.e. lands belonging to the Sircar. and that it was only “granted” to the company for ‘coffee cultivation’. The State asserted in this case –

  • that the petitioner Company was not an absolute owner, but only a lessee under the Government, especially since the 1899 Proclamation issued by H.H. the Maharaja declaring that Kannan Devan Hills was ‘an integral part’ of the ‘territory’.
  • that the petitioner’s predecessor-in-title was John Danial Munro, who obtained, the first Pooniat Concession from Punjar Valiya Raja, on July 11, 1877. This Concession recited that an, application was made for the grant of the above property to the Raja for coffee cultivation.
  • It was further stipulated in the Concession that
    •  “you shall clear and remove the jungles, and reclaim the waste lands within the said boundaries, and cultivate them with coffee up to the year 1058 and from the year 1059, pay our rent collector a yearly rent at the rate of 3,000 British Rupees.”
  • H.H. the Maharaja executed a deed of ratification, dated November 28, 1878, by which the Government ratified the First Pooniat Concession dated July 11, 1877.
  • This deed of ratification laid down –  the Government permitted the grantee to hold the land. (it is similar to the ‘Grant/Title’ deeds executed by the State in all other ‘Grants’ – under the ‘Grant Rules’).
  • Clause 5 of the Deed of Ratification, is important. It provides, inter alia, that
    • “The grantee can appropriate to his own use within the limits of the grant all timber except the following and such as may hereafter be reserved namely, Teak, Cole Teak, Blackwood, Ebony, Karoonthaly, Sandalwood; should he carry any timber without the limits of the grant it will be subject to the payment of Kooteekanom, or Customs Duty……….
  • The eleventh clause reads – “The land granted shall be held in perpetuity as heritable or transferable property, but every case of transfer of the grant by the grantee shall be immediately made known to the Sircar, who shall have the right of apportioning the tax, if a portion of the holding is transferred.”
  • The twelfth clause stipulates – “The discovery of useful mines and treasures within the limits of the grant shall be communicated to the Sircar, and the grantee shall in respect to such mines and treasures, abide by the decision of the Sircar.”
  • The sixteenth clause provides – “The grantee shall be bound to preserve the forest trees growing on the banks of the principal streams running through the tract to the extent of fifty yards in breadth on each side of the stream, the Underwood only being permitted to be cleared and coffee planted instead. Similarly he shall also be bound to preserve the, trees about the crest of the hill to the extent of a quarter of a mile on each side.”
  • Royal Proclamation was made on September 24, 1899 provided that ‘Anjanad and Kannan Devan Hills is an integral portion of our territory and that the inhabitants of the said tract are ‘hereby informed and warned that they are not to pay any taxes, rents or dues, or make any other payment to the Poonjar Chief.

Points came for consideration in this decision were the following:

  • Whether the Kannan Devan Hills (Resumption of Lands) Act, 1971 was protected from challenge under Art. 31A of the Constitution. That is, whether these lands fall within expression ‘Janmam right’ or “estate”  in art. 31A of the Constitution.
  • If the lands acquired were an “estate”, or with ‘Janmam right’ owned by the Company, the land reform enactment did not have stood valid. (Note: Kesavananda Bharathi Case came in 1973.)

The Apex Court found the following:

  • The janmam rights (even if remained with the Poonjar Chief, H.H. the Maharaja became the janmi by the Royal proclamation of 1899.
  • The nature of ‘janmam right’ has been examined by this Court previously in Kavalappara Kottarathil Kochuni v. State of Madras [1960] 3 S.C.R. 887 Subba Rao, J., observed that janmam right in Kerala is an “estate and it is the freehold interest.
  • The Sircar itself is one of these janmis and it was the largest Janmi. It came to possess janmam lands by gift, purchase, escheat, confiscation and other ways
  • If any person wants land in Travancore, he must obtain it from, some one of the body of Janmis, i.e. from the Sircar, which is the Chief Janmi, or from some other Janmi.

The Apex Court observed as under:

  • “… On the material placed before us it is difficult to resist the conclusion that the lands in dispute fall within the expression “Janmam right”.
  • If, as stated in Travancore Land Revenue Manual Volume IV, there are no lands that do not belong to a Janmi and the Sircar becomes a janmi by gift, escheat confiscation or otherwise, the effect of the Royal Proclamation of 1899 must be that the Sircar became the Janmi.”

The Apex Court further found –

  • The Registered Lands included inter alia, (a) Pandaravaka lands and (b) Janmam lands.
  • Regarding Pandaravaka lands it is stated : “Pandaravaka or Sircar lands are, lands of which the State is the landlord or the Jenmi and whatever rights which vest in the ryots are derived from the Sircar.”
  • Kenan Devan Hills Concession is dealt with under this heading, i.e. Pandaravaka Lands.
  • It thus appears that the State grants like Kanan Devan Hills Concession and Ten Square Miles Concession, and Munro Lands, were treated under the heading ‘Pandaravaka Lands, i.e. lands belonging to the Sircar (that is, such Grant-lands were not ‘owned’ by the holders thereof).

On these findings The Apex Court upheld the Kannan Devan Hills (Resumption of Lands) Act, 1971 and dismissed the challenge of the Company.

State of Kerala v. Kanan Devan Hills Produce Co. Ltd., (1991) 2 SCC 272

With respect to the same property  it was held in State of Kerala v. Kannan Devan Hills Produce Co. Ltd., (1991) 2 SCC 272as under:

  • “The Trial Court in a detailed and well-reasoned judgment dismissed the suit of the company. The Trial Court on the interpretation of First Concession (Exhibit P- 1), Second Concession (Exhibit P-2), deed of ratification (Exhibit P-62) and the Government agreement with the Society dated August 2, 1866 (Exhibit P-64) came to the conclusion that the company did not acquire absolute proprietary rights over the Concession Area or the trees and timber in the said area. It was held that the Poonjar Chief had only conveyed heritable and transferable possessory rights over the Concession area to the grantee. It was also held that absolute rights over the trees and timber in the Concession Area did not pass to the grantee and it had only the right to use and remove timber subject to the restrictions imposed in the deeds of conveyance/ratification.”

It is observed:

  • “An identical clause in another grant entered into by the Travancore Government came for consideration before a Full Bench of the Kerala High Court in George A Leslie v. State of Kerala, [1969] K. L.T. 378, K. K. Mathew, J. (as the learned Judge then was) interpreted the clause as under:
    •  We think that if title to the reserved trees passed to the grantees, a provision of this nature would have been quite unnecessary. There was no purpose in stating that the grantees will be free to appropriate the reserved trees for consumption within the limits of the grant, if title to the trees passed to the grantees; the provision is a clear indication that the grantees were allowed to cut and appropriate the reserved trees for consumption within the limits of the grant as a matter of concession.”
  • “We agree with the interpretation given to the clause by Mathew, J. and hold that the respondent- company did not acquire absolute proprietary rights over the Concession Area or the trees and the timber therein.”

It is observed further:

  • “It was further held by Mathew, J. (in George A. Leslie v. State of Kerala, 1969 KLT 378) that kuttikanam being the governments share of the value of the trees owned by the government it has the power to fix the value of the trees. We agree with the reasoning and conclusions reached by Mathew, J.”

The Apex Court upheld and approved “the judgment and findings” of the Trial Court.

Effect of Travancore Govt. Leases after Royal Pattom Proclamations of 1040 and 1061

During the second half of the 19th century several Royal Proclamations were promulgated with a view to confer rights in the land to the tenants who were the real cultivators. Majority of the people were engaged in agriculture; but the lands belonged to Jenmies (Sircar, Brahmins or Devaswoms). The cultivators held the land under lease arrangement known as Pattom, Otti, Inam and Viruthi etc. One of the important Regulations came in the line of agrarian reforms was the Royal Proclamation of 1040 ME (1865 AD). It pertained to Pattom (lease) tenements created (by Sircar) on Sirkar lands known as Pandaravaka lands. It is exalted as the Magna Carta of peasants of Travancore it being led to conferring land to tillers, step by step.

Paragraph 9 of the Royal Proclamation of 1061 (1886) brought in further radical changes as regards Pandarapattam lands. It said as under:

  • “These lands were originally the absolute property of Government, and the tenants were mere tenants-at-will; but, by the Royal Proclamation of the 21st Edavam 1040, Government generously waived all right to these lands, and declared them to be the private, hereitable, saleable property of the holders.”

Section 22 of the Settlement Proclamation of 1061 (1886) made further changes in land tenure.

Those changes were:

  • (1)   no debt shall be recognised as due to the holder;
  • (2) no interest shall be deducted from the Pattom on such debt;  
  • (3) no reduction of debt or a corresponding enhancement of the Sirkar demand shall be made when such properties were transferred by sale.
  • The properties held on the tenures in question shall be recognised as so many favourably assessed lands or Inams and confirmed to the holders as such.

Clause 7 of Section 24 of the Proclamation provided as under:

  • “There shall be no further interference on the part of the Government with these free holds, except such as might be necessary for the punctual realization of the quit rent payable”.(Quoted in: Padmanabharu Govindaru  v. The State of Kerala, AIR 1963 Ker 86.)

Now a question arises: What is the impact of 1040 and 1061 (1886) Proclamations over the ‘Government Land Leases’ made after 1061 (1886)? Do such leased lands qualify as “estate” under Article 31A of the Constitution?

The legitimate answer is that the lands leased out (by the Government) after 1061 (1886) do not acquire the rights of ‘permanency of tenure’ or attain the ‘proprietary interest’ conferred by the Pattom Proclamations of 1040 and 1061. If such rights are axiomatically conferred as a matter of course, the result would be that the Government cannot ‘lease’ lands (after the Proclamations), for, the lease character would be lost at the moment it is made.

In Rev. Fr. Victor Fernandez v. Albert Fernandez (five Judge Bench), 1971 Ker LT 1, AIR 1971 Ker 168 (Per PT Raman Nayar, CJ, T Krishnamoorthy Iyer, P Unnikrishna Kurup, JJ.), concluded that the land covered by the Royal Proclamations of 1040 and 1061 were “estates” falling under Art. 31A of the Constitution. It was on the finding that the Proclamation “secured permanency of tenure”, and “proprietary interest” in the soil. It was observed as under:

  • “7. It is impossible to accept the contention advanced on behalf of the plaintiff in this case that,even after the Proclamation of 1040, the holders of these lands had no proprietary interest whatsoever in the soil and remained tenants in the strict sense of that term, with only the right of enjoyment, the only difference being that they secured permanency of tenure, the Government still remaining the full and absolute proprietor of the soil.”

Therefore, there is a clear difference between leases made before and after the Proclamations, and the rights conferred by the Proclamations do not apply to leases made after them.

Also Read: Plantation-Tenants Not Approached The Land Tribunal are Ineligible for Plantation-Exemption-Orders from the Land Board

End Notes:

How to deal with Govt. property upon which title is claimed by plaintiffs dealt with in Union of India v. Ibrahim Uddin, : (2012) 8 SCC 148.

Facts, in a nutshell, were this –

  • Plaintiff Ibrahim Uddin filed the Suit for declaration that he was the owner of the suit property originally had been with the Maratha Government.
  • The ancestors of the plaintiff having close association with the Maratha Government, were made a grant in respect of the suit land in the year 1800.
  • The land was partitioned between the ancestors in 1819.
  • The Union of India claimed title over the suit land, thus the suit.
  • UoI averred that the land belonged to it, a part of which has been leased out to several persons for agriculture work and their lease has been renewed from time to time.
  • As they became unauthorised occupants, proceedings had been initiated in accordance with law and eviction order had been passed against the occupants/tenants.
  • The trial Court came to the conclusion that the plaintiff could not prove any kind of grant by the Maratha Government to his ancestors in 1800.
  • Plaintiff failed to prove the partition between his ancestors in 1819.
  • The lease deed alleged to have been executed in favour of the Military Estate Officer under the Union of India, was not successfully proved.
  • In view of the above, the suit was dismissed.
  • The first appeal before the District Judge, Agra.
  • In appeal, under Order XLI Rule 27 CPC the Will executed by his maternal grandfather dated 1.3.1929 in his favour bequeathing the suit property was marked.
  • The First Appeal was allowed on conclusion that Maratha Government had made the gift of land in favour of plaintiff’s forefathers which was subsequently partitioned.
  • The registered partition deed stood duly proved and it was the proof of the title of the plaintiff.
  • The appellant UoI did not produce any document to show its title and failed to produce the original record, thus, adverse inference was drawn under Section 114 clause(g) of the Indian Evidence Act, 1872.
  • The Second Appeal was dismissed. Hence, the appeal before the Supreme Court.

The Apex Court held –

  • It is not permissible to claim the relief of declaration without seeking consequential relief by virtue of the proviso of Section 34 of Specific Relief Act, 1963  (Relying on: Ram Saran v. Ganga Devi, AIR 1972 SC 2685, Vinay Krishna v. Keshav Chandra, AIR 1993 SC 957, Gian Kaur v. Raghubir Singh, (2011) 4 SCC 567).
  • There was nothing on record to show that Maratha Government had made a gift to the ancestors of the plaintiff.
  • A case not specifically pleaded can be considered by the court. The pleadings in substance contain the necessary averments to make out a particular case and issue has been framed on the point. In absence of pleadings, the court cannot make out a case not pleaded, suo motu (Bachhaj Nahar v. Nilima Mandal, AIR 2009 SC 1103 relied on). Hence the claim of title by virtue of the Will cannot be taken note of being not based on pleadings.
  • The Will had been executed prior to the birth of the plaintiff.  it could not have been taken into consideration without proper scrutiny of facts and, that too, without any pleading.
  • The rent note allegedly executed by the fore-fathers of the plaintiff. The said rent note does not provide any description of the property nor does it bear any date. The rent note does not provide any period at all. It could not be linked to prove the title.
  • UoI produced the certified copies of the Extract from General Land Register prepared on 15.3.1948 in support of its case and denying title of the plaintiff/respondent No.1.
  • The High Court rejected the same on the ground that the partition among the ancestors of the plaintiff had taken place prior to enactment of the Cantonment Land Administration Rules, 1925, though there is nothing on record to prove the said partition.
  • More so, the partition would not be a conclusive factor to determine the title of ownership.
  • The General Land Register maintained under the Cantonment Act, 1924 and the Rules made thereunder are public documents and the certified copies of the same are admissible in evidence in view of the provisions of Section 65 read with Section 74 of the Evidence Act.
  • It is settled legal position that the entries made in General Land Register maintained under Cantonment Land Administration Rules is conclusive evidence of title. (Vide: Chief Executive Officer v. Surendra Kumar Vakil, AIR 1999 SC 2294; and Union of India & Ors. v. Kamla Verma, (2010) 13 SCC 511). The title of government cannot be disputed.

The Apex Court allowed the appeal and held –

  • There was nothing on record to prove the grant/gift by the Maratha Government in favour of ancestors of plaintiff/respondent No.1 in the year 1800.
  • The alleged partition in the year 1819 even if had taken place, cannot be a proof of title.
  • Presumption under Section 90 of the Evidence Act in respect of 30 years’ old document coming from proper custody relates to the signature, execution and attestation of a document i.e. to its genuineness but it does not give rise to presumption of correctness of every statement contained in it.
  • If the Will was ignored, there was nothing on record to show as how the plaintiff  could claim the title. The truth of contents of a document have to be proved like any other fact.
  • The rent note did not prove anything.
  • The Will in absence of any pleading could not be taken on record. More so, the Will was not proved in accordance with law i.e. Section 68 of the Evidence Act.
  • The court cannot travel beyond the pleadings as no party can lead the evidence on an issue/point not raised in the pleadings and in case, such evidence has been adduced or a finding of fact has been recorded by the Court, it is just to be ignored.
  • Though it may be a different case where in spite of specific pleadings, a particular issue is not framed and parties having full knowledge of the issue in controversy lead the evidence and the court records a finding on it.
  • The first appellate court as well as the High Court recorded a finding that the Union of India failed to prove its title over the suit land. The said courts did not realise that this was not the issue to be determined, rather the issue had been as to whether the plaintiff was the owner of the suit land.

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End Notes

Relevant provisions of KLR Act, in a Nutshell

Section Provisions in a Nutshell
Chap. II 
3(1)
Exemptions – (i) Nothing in this Chapter shall apply to – (viii) Tenancies of plantations exceeding 30 acres.
“Provided that the provisions of this chapter, other than sections 53 to 72S, shall apply to tenancies in respect of agricultural lands which are treated as plantations under sub clause (c) of clause (44) of Section 2”.
7 EPersons acquired lands (before 2005 amendment in KLR Act) for consideration below 1 Ha. 61 Are 87 Sq.m. (4 acre) will be deemed to be tenants .
13Fixity: “Every tenant, shall have fixity of tenure in respect of his holding.”
22Landlord desiring to resume any land shall apply to the Land Tribunal.
31Fair rent determined by Land Tribunal.
51B. Landlord not to enter on land surrendered or abandoned by the tenant. 
Contravention is made punishable.
54(1)
55
57
57 (3)
57 (6)
61
54(1). A cultivating tenant (to purchase the right) has to apply Land Tribunal.
55. Purchase price is fixed by LT (on fair rent u/s. 31) to be paid u/s. 59
57. The LT after enquiries, pass orders determining purchase price.
(3). The Land Tribunal allows the purchase of the land it determines.
(6). The Land Tribunal forwards  orders to the Land Board.
61. Tenant to pay rent (under orders of LT) pending proceedings.
59When Sec. 54 application is allowed (by the LT), the purchase price (determined u/s. 57 by the LT) shall be deposited with the Land Tribunal to the credit of the Land Board and issue of certificate – to cultivating tenant.
72
Sec. 72 provides for automatic vesting of lease-properties held by cultivating tenants in Govt.  ILR 2010(2) Ker. 845. 
72(1) says: Holdings upon which tenanat entilted fixity under sec. 13 vest in govt.
72BCultivating-tenant “shall be entitled to assignment” of land vested in Govt. under Sec. 72 –within ceiling area and get purchase certificate (through LT) (2 years from 1-1-1970). Effect of non-filing (See Balanoor Plantations case. 2018(3) KLT 283.)
72DThe cultivating tenant has to pay the purchase price to the Government on the assignment to him of the right, title and interest of the landowner. (If the extent of land is one hectare or below, he shall not be liable to pay.)
72ESuch a tenant is liable to pay rent to the Govt. for the unassigned land – under Purchase Certificate (E.g., exempted-plantation-land). The Land Tribunal fixes the rent under Sec. 72F(5)(h).
72CProvides for suo moto action by LT. (No time limit). Rule 5 of the Vesting & Assignment Rules provides – LT may suo moto – notwithstanding no application – assign to cultivating tenant. (See  S.72C also). 
72KLT shall issue purchase certificate.  It shall be conclusive proof of assignment.
74Prohibition of future tenancies.
Chap. III 
81
Exemption from ceiling and excess for Govt. lands, private forests, plantations, industrial or commercial undertakings, etc.
Proviso – There will be an exemption (as plantation, land given to educational institution, trust, etc.) on Government lands, given under grant, lease, etc.
See: HMT (Machine Tools) Limited v. Taluk Land Board, 2009 (3) KLJ 110; MT Joseph v.  State of Kerala, AIR 1974 Ker 28.
82Ceiling area – 5/10 standard acres.
83No person can hold or possess excess of ceiling area. (Holding is by tenant.)  It is a total bar. (Note:  plantations, industrial area etc. are exempted.)
Apply to tenant also. 1980 KLT 259 (Gopalan Nair Vs. State), 1976 KLT 306  (Thomas Mariamma Vs. TLB), Raghunath Laxman Wani v. The State of Maharashtra (AIR 1971 SC 2137)
The policy of the Act – no person –“be permitted to hold any land in excess of the ceiling area.” Raghunath Laxman Wani v. State of Maharashtra, 1971-3 SCC 391, Bhikoba Shankar Dhumal v. Mohan Lal Punchand Tatbed, 1982-1 SCC 680, State of U.P v. Civil Judge, Nainital, AIR 1987 SC 16, State Vs. Puliyangattu, 2008(1) KLJ 571.
84Certain transfers – void.
85(1)Surrender excess.
85(2)Owners and Tenants (having land in excess of the ceiling area) should furnish ceiling return to Land Board before March31, 1971, before the Land Board (including lands exempted under S. 81).
Note: Effect of non-filing: See – Balanoor Plantations case – 2018(3) KLT 283.State of Kerala Vs. Varkey Mathew, AIR 1996 SC 1009.
 According to S. 3(1) (viii), “tenancies of plantations exceeding 30 acres” is exempted from Chapter II. Therefore, the landlord can recover such plantation lands after the period of tenancy. Such landlords also had to file a ceiling return within the time stipulated.
85(3)Excess shall be surrendered.
Note: Tenant must have approached the LT (with respect to each plantation, if he has more plantations) (He cannot declare himself a tenant) It is clear from the following provisions:
(Before 1. 1. 1970)
S. 54(1) – A cultivating tenant has to apply to LT(for the purchase of right, title and interest.)
S. 55 – Purchase price and fair rent fixed by LT
S. 57 – LT after giving notice and enquiries, pass orders (on the application for the purchase of right, title and interest).
S. 57(3) – LT allots the purchase land it determines.
S. 57(6) – The Land Tribunal forwards a copy of orders to the Land Board.
S. 61 – Cultivating tenant to pay rent (under orders of LT)
S. 59 – The purchase price shall be deposited with the LT (to the credit of the Land Board) and issue of certificate – to cultivating tenant.
(After 1. 1. 1970)
S. 72B – cultivating tenant to apply to the LT, for Purchase Certificate.
S. 72D. The cultivating tenant has to pay purchase price to the Government [fixed by the LT] on the assignment to him of the right, title and interest of the landowner. (If the extent of land is one hectare or below, he shall not be liable to pay.)
S. 72F(5) – Land Tribunal shall issue notice to consider the claims and objections from the land owner or intermediaries, and pass an order specifying, inter alia, the rent [under S. 72F(5)(h) ] payable by the cultivating tenant to the Government.
S. 72F(6) & (7) – LT shall pass Orders on encumbrance or charge for maintenance or alimony and compensation payable to the landowner or that intermediary.
It is not lawful to initiate Suo Motu proceedings (under Section 72C) by the Government for the benefit of a Plantation Tenant (entitled, within the time allowed, to purchase a certificate below the ceiling limit), because Explanation II to Section 87 disfavours the fragmentation of the plantation land.
Still, because of subsection (3) of Section 85, the tenant could have obtained a purchase certificate (under Section 72B) within the statutory period.
It is the principle applied in the Balanoor case. Note: (i) The sub-section (3) itself says as to the settlement of claims for resumption and purchase of the right, title, and interest of the landowner by the cultivating tenant, (ii) LT is the only authority to determine tenancy (Land Board cannot determine it), and (iii) it is clear that even if it is a plantation-exemption-land (beyond ceiling limit), the tenant has to file petition under Section 54 – for fixing Purchase price and fair rent fixed by LT and for allotting the land under section 57(3) and for effecting the payments of ‘rent’ and ‘purchase price’(to the credit of the Land Board)  under sec. 61 and 59.
85(3A)The person bound to file a statement under sub-section (2) (that is, Owners and Tenants – having land in excess of the ceiling area)  shall, within a period of three months from the date of final settlement or purchase, file a statement before the Land Board, and the provisions of the said Sub-section shall, as far as may he, apply in regard to the particulars to be contained in such statement, the calculation of the excess land and for the procedure for the surrender of the same.
85(5)On receipt of the statement under Sub-section (2) or Sub-section (3A), the Land Board shall transfer the statement to such Taluk Land Board and such Taluk LandBoard shall determine the extent and identity of the land to be surrendered.
85(7)Whereon a person fails to file statement under 85(2) or (3A), LB shall intimate that fact to TLB  –  TLB shall determine land to be surrendered. It is obvious – The LB can intimate TLB as to non-filing, on the basis of the records it obtained under Sec. 57(6) and 59. That is, those tenants who are not entitled to get a purchase certificate also has to file an application under Sec. 54(1) and 85(2) or (3A). Effect of non-filing: See – Balanur Plantations case (With respect to Sec. 72B application) – 2018(3) KLT 283. Statute prescribes liability on the person who owes or hold the land in excess of the ceiling limit to file statement:  State of Kerala Vs. Varkey Mathew, AIR 1996 SC 1009.
[TLB not to do, suo motu, without direction from LB. 1980 KLT 120, referred to in 2019(1) KLT 985.]
85AFile ceiling return within March  2, 1973 before Land Board..
86(1)On determination of the extent to be surrendered under S. 85- Excess vests in Govt. and Taluk Land Board shall issue an order accordingly.
86(3)Where any person fails to surrender as demanded, the TLB may order an officer to take possession
86(4)Where any land, vests in the Govt, under s. 86(1) (including that of cultivating tenant) the ownership of such land shall vest in the Govt.
86(6)Nothing applies to property of Govt. under KLC Act.
87
Exp. II
If a person converts any portion of exempted land for any other class, that converted extent will be added to his account in determining his ceiling limit. That is, the exemption will be lost for the portion that exceeds the ceiling limit. (Mathew K Jacob v. District Environmental Impact Assessment Authority, 2018-4 KLT 913)

Read in this Cluster (Click on the Topic):

Book No. 1.   Handbook of a Civil Lawyer

Book No. 2: A Handbook on Constitutional Issues

Book No. 3: Common Law of CLUBS and SOCIETIES in India

Book No. 4: Common Law of TRUSTS in India

No Adjudication Needed If Power of Attorney is Sufficiently Stamped

Saji Koduvath, Advocate, Kottayam.

Introduction.

It is sad, almost in all States in India, the authorities, especially that of Revenue Department, require people to ‘adjudicate’ documents executed outside India, even if it is clear that it is properly stamped. One among such documents is power of attorney.

Provisions of the Registration Act.

Section 31 of The Indian Stamp Act, 1899 speaks as under:

  • “31. Adjudication as to proper stamp.—
  • (1) When any instrument, whether executed or not and whether previously stamped or not, is brought to the Collector, and the person bringing it applies to have the opinion of that officer as to the duty (if any) with which it is chargeable, and pays a fee of such amount (not exceeding five rupees and not less than [fifty naye paise]) as the Collector may in each case direct, the Collector shall determine the duty (if any) with which, in his judgment the instrument is chargeable.
  • (2) For this purpose the Collector may require to be furnished with an abstract of the instrument, and also with such affidavit or other evidence as he may deem necessary to prove that all the facts and circumstances affecting the chargeability of the instrument with duty, or the amount of the duty with which it is chargeable, are fully and truly set forth therein, and may refuse to proceed upon any such application until such abstract and evidence have been furnished accordingly: Provided that—
  • (a) no evidence furnished in pursuance of this section shall be used against any person in any civil proceeding, except in an enquiry as to the duty with which the instrument to which it relates is chargeable; and
  • (b) every person by whom any such evidence is furnished, shall, on payment of the full duty with which the instrument to which it relates, is chargeable, be relieved from any penalty which he may have incurred under this Act by reason of the omission to state truly in such instrument any of the facts or circumstances aforesaid.”

If proper stamp duty Paid no Requirement of Adjudication

The Madras High Court, in Manoharan v. Velu, (1998) III M.L.J 272, held that a power of attorney executed on proper stamp need not be produced before the Collector for the purpose of certification or adjudication that the full duty with which it is chargeable has been paid. It was observed Manoharan v. Velu as under:

  • “5. This power document satisfies the definition ‘power of attorney’ as defined in Sub-sec.(21) of Sec.2 of the Act. It is not in dispute that this power document is engrossed on Indian Non-Judicial stamp paper of the value of Rs.5, which is the proper stamp duty, payable on that instrument. On these facts, the question that arises for consideration is whether the said power document should be  necessarily produced before the Collector to certify by endorsement on such instrument that the full duty with which it is chargeable has been paid or not. To decide this question, the court has to necessarily look into Secs.31 and 32 of the Act. Sec.32 of the Act starts with the following words’ “When an instrument brought to the Collector under Sec.31, is etc., etc. Therefore, if the provisions of Sec.32 of the Act have to be applied, then the instrument should have been necessarily produced under the provisions of Sec.31 of the Act before the Collector concerned. Sec.31 of the Act enable a person bringing to the Collector any instrument whether executed or not and whether previously stamped or not, to have his opinion as to the duty (if any) with which it is chargeable and thereupon the Collector on payment of a fee, shall determine the duty (if any) with which, in his judgment the instrument is chargeable. Sub-sec.(2) of Sec.31 of the Act deals with the power of the Collector to collect materials, in order to determine the stamp duty, if any, chargeable on the instrument produced before him.
  • Therefore, it is clear that only in a case where the opinion of the Collector is sought for regarding the payment of the proper stamp duty, the Collector gets the power to proceed in accordance with Sec.31 of the Act, Once the Collector gets the jurisdiction under Sec.31 of the Act in the manner I have stated above, then only Sec.32 of the Act gets attracted.
  • 6. Since in this case, the instrument has been charged with the proper stamp duty payable under the Act and since it has not been produced by the power of Attorney Agent of the deceased second plaintiff before the  Collector, the Collector does not get any jurisdiction at all to go into that question. The argument the learned counsel for the respondents that the requirement of producing such an instrument before the Collector is mandatory, (Where the instrument had been executed outside India) cannot be sustained. The Proviso to the main section of the Act cannot alter the scope of the very section itself. To attract clause (b) of the Proviso to Sub-sec.(3) of Sec.32 of the Act necessarily the document whether it is executed in India or outside India should have been produced before the Collector under Sec.31(1) of the Act. So long as the document was not produced before the Collector, under Sec.31(1) of the Act seeking his opinion on proper stamp duty chargeable, there is no question of relying upon or referring to the Proviso to Sub- sec.(3) of Sec.32 of the Act.”

Kerala High Court, quoting above portions from Manoharan v. Velu, it was held in Anitha Rajan v. Revenue Divisional OfficerAIR 2010 Ker153, that it was not necessary to produce the power of attorney, even if executed outside India, for adjudication if it was sufficiently stamped. The High Court definitely held further that the Village Officer, Nattika Village erred in directing the petitioner to produce the (sufficiently stamped) original power of attorney before the Revenue Divisional Officer for adjudication under sections 31 and 32 of the Kerala Stamp Act, 1959.

Use of Adhesive Stamps in Power of Attorney

Rule 13 of the Indian Stamp Rules, 1925, provides for using adhesive stamp in the case of Power of Attorney. Similar provisions are in the State Stamp Rules also.

  • It may be noted that the law requires that document must have been stamped before it had been executed (or signed).


Read in this Cluster (Click on the Topic):

Book No. 1.   Handbook of a Civil Lawyer

Book No. 2: A Handbook on Constitutional Issues

Book No. 3: Common Law of CLUBS and SOCIETIES in India

Book No. 4: Common Law of TRUSTS in India

Notice to Produce Documents in Civil Cases

Saji Koduvath, Advocate, Kottayam.

Important Provisions in the Civil Procedure Code, In a nutshell

Order XI, rule 15.
Inspection of documents referred to in pleadings or affidavits
A party to a suit is entitled at any time to give notice to any other party, in whose pleadings or affidavits reference is made to any document to produce such document for the inspection of the party giving such notice, or of his pleader, and to permit him or them to take copies thereof.
rule 16.
Notice Form
Notice to any party to produce any documents referred to in his pleading or affidavits shall be in Form No. 7 in Appendix C, with such variations as circumstances may require
rule 18.
Order for inspection.
Where the party omits to give such notice of a time for inspection or objects to give inspection, the Court may, on the application of the party, make an order for inspection.
rule 21.
Non-compliance with order for discovery.
Where any party fails to comply with order for discovery or inspection of document, the suit may be liable to be dismissed, and, if a defendant, to have his defence, if any struck out. Where an order is made dismissing any suit, the plaintiff shall be precluded from bringing a fresh suit on the same cause of action.
Order XII, rule 2.
Notice to admit documents
Either party may call upon the other party to admit, within seven days from the date of service of the notice any document.
rule 3.
Notice Form
Notice to admit documents shall be in Form No. 12 in Appendix C, ‘with such variations as circumstances may require’.
rule 8.
Notice to produce documents
Notice to produce documents shall be in Form No. 12 in Appendix C, ‘with such variations as circumstances may require’.
rule 12.
Notice Form
Form No. 12 says as to Notice “to produce and show to the court at the first hearing of this suit all books, papers, letters, copies of letters and other writings and documents in your custody, possession or power, containing any entry, memorandum or minute relating to the matters in question in this suit, and particularly.”...
Order XVI
rule 6.
Summons to produce document.
Any person is summoned to produce a document, without being summoned to give evidence, shall be deemed to have complied with the summons if he causes such document to be produced instead of attending personally to produce the same.

Notice to Produce Documents under Order XI rule 16 & Order XII rule 8

Order XI rule 16 (when reference is made to any document, in pleadings or affidavits)

Order XI rule 16 notice is provided after giving the substantive right to give notice to the other party, in whose pleadings or affidavits reference is made to any document to produce such document for the inspection, under rule 15. (The form is given in Form No. 7 in Appendix C.)

  • Note: For giving notice under Order XI rule 16, document must have been referred to in pleadings or affidavits.

Order XII rule 8

But, (abruptly) without giving a substantive direction (as in Order XI rule 15**) to one party to the suit, it is stated in Order XII rule 8 that a notice can be given to produce documents (in Form No. 12 in Appendix C) to ‘produce and show to the Court’. #

  • **To give notice to any other party, in whose pleadings or affidavits reference is made to any document to produce such document for the inspection of the party.
  • #The form No. 12 shows that it is given by one party or his advocate to the other.

Order XII Rule 8 reads as under:

  • Notice to produce documents: Notice to produce documents shall be in Form No. 12 in Appendix C, with such variations as circumstances may require. An affidavit of the pleader, or his clerk, or of the service of any notice to produce, and of the time when it was served, with a copy of the notice to produce, shall in all cases be sufficient evidence of the service of the notice, and of the time when it was served.”
    • Note: Order XII rule 8 itself contains – “with such variations as circumstances may require”; and in the heading of Form No. 12 it is stated – “(General Form)”.

Form No. 12 reads as under:

  • “Take notice that you are hereby required to produce and show to the Court at the first hearing of this suit all books, papers, letters, copies of letters and other writings and documents in your custody, possession of power, containing any entry, memorandum or minute relating to the matters in question in this suit, and particularly.”
  • First Hearing
    • First-hearing is not defined in the CPC. In Siraj Ahmad Siddiqui v. Shri Prem Nath Kapoor, AIR 1993 SC 2525, our Apex Court held as under:
    • “13. The date of first hearing of a suit under the Code is ordinarily understood to be the date on which the court proposes to apply its mind to the contentions in the pleadings of the parties to the suit and in the documents filed by them for the purpose of framing the issues to be decided in the suit.”

From the above, it is clear:

  • The Form No. 7 and Form No. 12 (Appendix – C) notices are given by one party or his advocate to the other.
  • Order XII rule 8 Notice is – to produce and ‘show court’ only (as stated in Form No. 12). But, Order XI rule 15 states – notice can be given by one party to the other party ‘to produce document for the inspection of the party, or of his pleader, and to permit him or them to take copies thereof‘.
  • Order XI rule 15 is confined to documents referred to in pleadings or affidavits. But, Order XI rule 8 is not so confined.
  • It is reasonable to conclude that this power given to a party (to give notice by one party to other – under Order XI rule 8) is to be exercised, normally, ‘at the first hearing‘ alone (see: Form No. 12); and, even if it can be given effect to in a subsequent stage (by the orders of the court), it is only in exceptional circumstances. (The reason thereof is plain.)
  • It will also be rationale to infer that the Order XI rule 8 does not allow a party to see the document produced – for, Form No. 12 says as to ‘show court’ only; and does not allow ‘to produce document for the inspection of the party, or of his pleader, and to permit him or them to take copies thereof‘, as provided under Order XI rule 15. (The logic behind it is explicit.)

See Blog: Best Evidence Rule in Indian Law

A Discordant Note – For, Inclusion of rule 8 in Order XII is Incongruent

Order XII deals with ‘Admission’. Rule 8 thereof hands out ‘Notice to produce documents’. It can be seen, on a plain reading, that rule 8 is not confined to “Admission”. Therefore, inclusion of rule 8 in Order XII is incongruent.

No Adverse Presumption Possible

Is it possible to draw adverse presumption for non production of a document (in spite of notice under rule 8 in Order XII) is an interesting question.

The answer will be negative, when we go by provisions of CPC. They are the following:

  • It only gives power to a party to give notice to other party; it does not require court intervention.
  • Order XII rule 8 Notice is – to produce and ‘show court’ only (as stated in Form No. 12)
  • It is directed to be exercised ‘at the first hearing‘ alone (see Form No. 12); and, in any case, even if it is possible to give effect to (by the court), in a subsequent stage, it can be done only in exceptional circumstances.
  • Under Order XI rule 15, where any party fails to comply with order for discovery or inspection of document, the suit may be liable to be dismissed, and, if a defendant, to have his defence, if any struck out. Such stringent measures are not attached to non-compliance of Order XII rule 8.

But, the provisions of the Evidence Act (Sec. 66) stipulates that ‘if the adverse party knows that he will be Required to Produce’ a document, it is his duty to produce the document, even if it was not sought-for by notice. (Sec. 114 of the Evidence Act lay down the circumstances in which adverse presumption can be drawn when a document – in possession – is not produced.) Sec. 66 directs that the notice to produce such document must be “as prescribed by law, and if no notice is prescribed by law, then such notice as the Court considers reasonable under the circumstances of the case”.

In view of the words in Sec. 66 of the Evidence Act as to the notice “prescribed by law”, in civil cases, the notice to be issued (for production of document) is that provided under Order XII rule 8.

Important Provisions in the Evidence Act (in this regard) In a Nutshell

66. Rules as to notice to produceSecondary evidence of the documents shall not be given unless the party proposing to give such secondary evidence have given notice to the other party.
Provided that such notice shall not be required
(1) when the document to be proved is itself a notice;
(2) when, from the nature of the case, the adverse party must know that he will be required to produce it;
(3) when it appears or is proved that the adverse party has obtained possession of the original by fraud or force;
(4) when the adverse party or his agent has the original in Court;
(5) when the adverse party or his agent has admitted the loss of the document;
(6) when the person in possession of the document is out of reach of, or not subject to, the process of the Court.
89. Presumption as to due execution, etc., of documents not produced.The Court shall presume that every document, called for and not produced after notice to produce, was attested, stamped and executed in the manner required by law.  
130. Production of title-deeds of witness not a party.No witness who is not a party to a suit shall be compelled to produce (i) his title-deeds to any property, or (ii) any document in virtue of which he holds any property as pledge or mortgagee.
131. Production of documents or electronic records which another person could refuse to produce.No one shall be compelled to produce documents in his possession or electronic records under his control, which any other person would be entitled to refuse to produce if they were in his possession or control, unless such last-mentioned person consents to their production.
144. Evidence as to matters in writing.Any witness may be asked, whilst under examination, whether any contract, grant or other disposition of property, as to which he is giving evidence, was not contained in a document, and if he says that it was, or if he is about to make any statement as to the contents of any document, which, in the opinion of the Court, ought to be produced, the adverse party may object to such evidence being given until such document is produced.
162. Production of documentsA witness summoned to produce a document shall, if it is in his possession or power, bring it to Court, notwithstanding any objection which there may be to its production or to its admissibility. The validity of any such objection shall be decided on by the Court.
163. Giving, as evidence, of document called for and produced on notice: When a party calls for a document which he has given the other party notice to produce, and such document is produced and inspected by the party calling for its production, he is bound to give it as evidence if the party producing it requires him to do so.
164. Using, as evidence, of document production of which was refused on notice.When a party refuses to produce a document which he has had notice to produce, he cannot afterwards use the document as evidence without the consent of the other party or the order of the Court.  

No Notice Required if Adverse Party knows that ‘he will be required to produce it

Sec. 66 of the Evidence Act stipulates that secondary evidence of the documents shall not be permitted unless the party proposing to give such secondary evidence have given notice to the other party. But, the proviso to the section states, among other things, that when, from the nature of the case, the adverse party knows that “he will be required to produce it,” then such notice is not required.

 In Hiralal Devji Kharva v. Ladhibai Gokal, 1979- 2 Guj LR 390, it was held that where the adverse party is expected to know from the facts of the case that the document is required to be produced and fails to produce the same the non service of notice would not preclude the party from leading secondary evidence. 

Adverse party must know that he will be Required to Produce it

A witness says ‘whilst under examination, whether any contract, grant or other disposition of property, as to which he is giving evidence, was not contained in a document, and he says that it was‘ (Sec. 141 Evd. Act) and the adverse party ‘objects to such evidence being given (Sec. 141 Evd. Act) until such document is produced (expressly or impliedly) it falls under the head, “he will be required to produce it ” (Sec. 66, 2nd proviso, Evd. Act).

In a proper case, the question – “Can you produce the document in court”, and the answer – “Yes”, will exonerate the party from giving a (formal) “notice to the other party” for it attracts – “the adverse party must know that he will be required to produce it“.

Sec. 22 of the Evidence Act (admissions as to contents of documents) is also relevant here. It reads as under:

  • “22. When oral admissions as to contents of documents are relevant.—Oral admissions as to the contents of a document are not relevant, unless and until the party proposing to prove them shows that he is entitled to give secondary evidence of the contents of such document under the rules hereinafter contained, or unless the genuineness of a document produced is in question.”

Best Available Evidence must be Produced; If Not, Adverse Presumption will be Taken

It may not be safe to a party to a suit to fall-back technically on non-reception of notice under Sec. 66 Evidence Act, in the teeth of the ‘best evidence rule’.

It is the duty of the party to lead the best evidence in his possession even though onus of proof do not lie on him, and he is not called upon to produce the said evidence; and the Court will draw adverse inference under Section 114(g) of the Evidence Act if such evidence is withheld.

But this rule cannot be applied blindly. Mere non-production of documents would not result in adverse inference, invariably (as shown below). Courts take into consideration the pleadings and decide whether the document/evidence withheld has any relevance. The court also cannot lose sight of the fact that burden of proof is on the party which makes a factual averment. The conduct and diligence of the other party is also important. Existence of some other circumstances may justify non-production (Union of India v. Ibrahim Uddin, (2012) 8 SCC 148).

The rule that best available evidence must be produced is taken in the following cases:

  • Murugesam Pillai v. Gnana Sambandha Pandara Sannadhi, AIR 1917 PC 6; 
  • Hiralal v. Badkulal, AIR 1953 SC 225; 
  • A. Raghavamma v. A. Chenchamma, AIR 1964 SC 136; 
  • The Union of India v. Mahadeolal Prabhu Dayal, AIR 1965 SC 1755; 
  • Gopal Krishnaji Ketkar v. Mohamed Haji Latif, AIR 1968 SC 1413;
  • M/s. Bharat Heavy Electrical Ltd. v. State of U.P.,  AIR 2003 SC 3024;
  • Khatri Hotels Pvt. Ltd. v. Union of India, (2011) 9 SCC 126.

In Mohan Lal Shamlal Soni v. Union of India, AIR 1991 SC 1346, the Supreme Court held as under:

  • “It is a cardinal rule in the law of evidence that the best available evidence should be brought before the Court to prove a fact or the points in issue. But it is left either for the prosecution or for the defence to establish its respective case by adducing the best available evidence and the Court is not empowered under the provisions of the Code to compel either the prosecution or the defence to examine any particular witness or witnesses on their sides. Nonetheless if either of the parties withholds any evidence which could be produced and which, if produced, be unfavorable to the party withholding such evidence, the court can draw a presumption under illustration (g) to Section 114 of the Evidence Act.”

Invoking best evidence rule it is observed by the Supreme Court in Musauddin Ahmed v. State of Assam, (2009) 14 SCC 541, as under:

  • “13. It is the duty of the party to lead the best evidence in its possession which could throw light on the issue in controversy and in case such a material evidence is withheld, the Court may draw adverse inference under Section 114 illustration (g) of the Evidence Act notwithstanding that the onus of proof did not lie on such party and it was not called upon to produce the said evidence (vide Gopal Krishnaji Ketkar v. Mohamed Haji Latif, AIR 1968 SC 1413).”

In Jitendra v. State of M.P, (2004) 10 SCC 562, our Apex Court observed that charas and ganja seized from the accused was the best evidence in that case and the non-production of the same in court was seriously taken note of by the court and observed that that mere oral evidence as to the same was insufficient.(See also: Mohd. Aman, Babu Khan v. State of Rajasthan, AIR 1997 SC 2960.)

In Tomaso Bruno v. State of U.P, (2015) 7 SCC 178, it is observed as under:

  • “22. To invoke Section 106 of the Evidence Act, the main point to be established by the prosecution is that the accused persons were present in the hotel room at the relevant time. PW-1 Ram Singh-Hotel Manager stated that CCTV cameras are installed in the boundaries, near the reception, in the kitchen, in the restaurant and all three floors. Since CCTV cameras were installed in the prominent places, CCTV footage would have been best evidence to prove whether the accused remained inside the room and whether or not they have gone out. CCTV footage is a strong piece of evidence which would have indicated whether the accused remained inside the hotel and whether they were responsible for the commission of a crime. It would have also shown whether or not the accused had gone out of the hotel. CCTV footage being a crucial piece of evidence, it is for the prosecution to have produced the best evidence which is missing. Omission to produce CCTV footage, in our view, which is the best evidence, raises serious doubts about the prosecution case.”

With regard to adverse presumption the Apex Court held in Tomaso Bruno as under:

  • “28. As per Section 114 (g) of the Evidence Act, if a party in possession of best evidence which will throw light in controversy withholds it, the court can draw an adverse inference against him notwithstanding that the onus of proving does not lie on him. The presumption under Section 114 (g) of the Evidence Act is only a permissible inference and not a necessary inference. Unlike presumption under Section 139 of Negotiable Instruments Act, where the court has no option but to draw statutory presumption under Section 114 of the Evidence Act.”

Directing Production Without Discovery “NOT the Correct Approach

The indisputable reciprocity between ‘discovery’ and ‘production’, and the sequence in which the they are arrayed in Rule 12 and 14, ensure that compliance of Rule 12 is a necessary pre-condition for ordering ‘production’ under Rule 14. Therefore, it is definite that discovery under Rule 12 partakes its ‘production’ (as the next step, under Rule 14).

The afore-stated propositions are fortified by the following:

  1. Ordering production, under Rule 14, is purely a discretionary matter with court.
    • Rule 14 reads – ” It shall be lawful for the court” … to order the production … of such of the documents in his possession or power … ”.
    • Import of these words are obvious in itself. That is, wide-open discretion is given to the court for ordering production under rule 14.
  2. It is unquestionable that a party to the suit has no vested right to seek ‘production’ of any document under rule 14-
    • even after ‘discovery’ of the same under rule 12.
  3. Similarly, the party to the suit has no vested right to seek production of ‘all documents‘ discovered under Rule 12.

Of course, no doubt, the court has discretion to summon a party to produce documents under O.16 R.14 which reads as under:

  • O. 16 R. 14: “Court may of its own accord summon as witnesses strangers to suit: Subject to the provisions of this Code as to attendance and appearance and to any law for the time being in force, where the Court at any time thinks it necessary [to examine any person, including a party to the suit], and not called as a witness by a party to the suit, the Court may, of its own motion, cause such person to be summoned as a witness to give evidence, or to produce any document in his possession on a day to be appointed, and may examine him as a witness or require him to produce such document.”

But, the words “of its own accord”, “subject to the provisions of this Code … and to any law” and “the Court may” make it clear that this provision is not intended to use openhandedly.

See Blog: Production of Documents in Court: Order 11, Rule 14 CPC is not independent from Rule 12

Section 130 Evidence Act

  • Sec. 130 stipulates that no witness who is not a party to a suit shall be compelled to produce
    • (i) his title-deeds to any property, or
    • (ii) any document in virtue of which he holds any property as pledge or mortgagee.

It will be interesting to consider whether the court has jurisdiction to compel a party to produce his title-deeds to any property applying the converse analogy on the negative assertion in Section 130 (otherwise than ‘discovery’ under Rule 12).

The answer is – No.

In Dolagovinda Pradhan Vs. Bhartruhari Mahatab, 1993 CIVCC 394, 1993-3 LJR 506, 1991-2 Ori LR395, 1991-3 CurCC 519, it is observed (obiter) that under Order 11, Rule 14, CPC, it would be lawful for the Court to require, the party to the suit, to produce such documents in his possession relating to any matter in question in the suit subject to its lawful objections. The High Court pointed out the converse analogy on the negative assertion in Section 130 Evidence Act (which provides that no witness who is not a party to a suit shall be compelled to produce his title-deeds to any property). Though the High Court merely referred to “lawful” authority of the court to require production of the document from a party, it clear that the postulation laid down is that the court has the “power” to order production, because the court placed the proposition in converse to the direction in Sec. 130 of the Evidence Act. It does not appear to be a correct proposition in the light of ML Sethi v. RP Kapur (supra).

Courts to Admit Documents Without Proof

Sections 162, 163 and 164 of the Evidence Act, reads as under:

  • 162. Production of documents. –– A witness summoned to produce a document shall, if it is in his possession or power, bring it to Court, notwithstanding any objection which there may be to its production or to its admissibility. The validity of any such objection shall be decided on by the Court.
  • The Court, if it sees fit, may inspect the document, unless it refers to matters of State, or take other evidence to enable it to determine on its admissibility.
  • 163. Giving, as evidence, of document called for and produced on notice: When a party calls for a document which he has given the other party notice to produce, and such document is produced and inspected by the party calling for its production, he is bound to give it as evidence if the party producing it requires him to do so.
  • 164. Using, as evidence, of document production of which was refused on notice. –– When a party refuses to produce a document which he has had notice to produce, he cannot afterwards use the document as evidence without the consent of the other party or the order of the Court.

In Government of Bengal v. Santiram Mondal, AIR 1930 Cal 370, and R v. Makhan, AIR 1940 Cal 167 it was observed that Section 163 of the Evidence Act applies to Criminal Proceedings also. It is observed in Government of Bengal v. Santiram Mondal, AIR 1930 Cal 370, with respect to a document used under Sec. 163, as under:

  • “The further contention is that if they are to be admitted, they cannot be put in or at any rate used without proof. But the section itself says that the party calling for it is bound to give it as evidence if required to do so, and that certainly means that it goes in as a record of the particular proceeding and that it can be looked at to see what it includes or omits.”

Court’s Jurisdiction to Require to Prove an Admitted Document

In any case, besides the powers of the court under Sec. 165 of Evidence Act, the scheme of the Procedural Acts (Evidence Act, CPC and CrPC) shows that the court has jurisdiction to require the party concerned to prove that document. We can see it in Sec. 58 of Evidence Act, Order XII, Rule 2A Proviso of the CPC and Sec. 294 of the CrPC .

Section 294 of Code of Criminal Procedure reads as follows:

  • “294. No formal proof of certain documents. (1) Where any document is filed before any Court by the prosecution or the accused, the particulars of every such document shall be included in a list and the prosecution or the accused, as the case may be, or the pleader for the prosecution or the accused, if any, shall be called upon to admit or deny the genuineness of each such document.
  • (2) The list of documents shall be in such form as may be prescribed by the State Government.
  • (3) Where the genuineness of any document is not disputed, such document may be read in evidence in any inquiry, trial or other proceeding under this Code without proof of the signature of the person to whom it purports to be signed:
  • Provided that the Court may, in its discretion, require such signature to be proved.”

See Blog: PRODUCTION, ADMISSIBILITY & PROOF OF DOCUMENTS


Foot Notes:

Provisions in the Civil Procedure Code

Order XI rule 15 and Order XII rule 2 are the main provisions in the CPC to give notice to the other party to produce documents for ‘inspection’ and ‘show court’ (see form of notice in Form No. 12 in Appendix C of the CPC), respectively.

Order XI rule 15 to 21 read as under:

  • 15. Inspection of documents referred to in pleadings or affidavits. Every party to a suit shall be entitled at any time to give notice to any other party, in whose pleadings or affidavits reference is made to any document or who has entered any document in any list annexed to his pleadings or produce such document for the inspection of the party giving such notice, or of his pleader, and to permit him or them to take copies thereof; and any party not complying with such notice shall not afterwards be at liberty to put any such document in evidence on his behalf in such suit unless he shall satisfy the Court that such document relates only to his own title, he being a defendant to the suit, or that he had some other cause or excuse with the Court shall deem sufficient for not complying with such notice, in which case the Court may allow the same to be put in evidence on such terms as to costs an otherwise as the Court shall think fit.
  • 16. Notice to produce. Notice to any party to produce arty documents referred to in his pleading or affidavits shall be in Form No. 7 in Appendix C, with such variations as circumstances may require.
  • 17. Time for inspection when notice given. The party to whom such notice is given shall, within ten days from the receipt of such notice, deliver to the party giving the same a notice stating a time within three days from the delivery thereof at which the documents, or such of them as he does not object to produce, may be inspected at the office of his pleader, or in the case of bankers’ books or other books of account or books in constant use for the purposes of any trade or business, at their usual place of custody, and stating which (if any) of the documents he objects to produce, and on what ground. Such notice shall be in Form No. 8 in Appendix C, with such variations as circumstances may require.
  • 18. Order for inspection. (1) Where the party served with notice under rule 15 omits to give such notice of a time for inspection or objects to give inspection, or offers inspection elsewhere than at the office of his pleader, the Court may, on the application of the party desiring it, make an order for inspection in such place and in such manner as it may think fit :
  • Provided that the order shall not be made when and so far as the Court shall be of opinion that, it is not necessary either for disposing fairly of the suit or for saving costs.
  • (2) Any application to inspect documents, except such as are referred to in the pleadings, particulars or affidavits of the party against whom the application is made or disclosed in his affidavit of documents, shall be founded upon an affidavit showing of what inspection is sought, that the party applying is entitled to inspect them, and that they are in the possession or power of the other party. The Court shall not make such order for inspection of such documents when and so far as the Court shall be of opinion that it is not necessary either for disposing fairly of the suit or for saving costs.
  • 19. Verified copies. (1) Where inspection of’ any business books is applied for, the Court may, if it thinks fit, instead of ordering inspection of the original books, order a copy of any entries therein to be furnished and verified by the affidavit of some person who has examined the copy with the original entries, and such affidavit shall state whether or not there are in the original book any and what erasures, interlineations or alterations :
  • Provided that, not withstanding that such copy has been supplied, the Court may order inspection of the book from which the copy was made.
  • (2) Where on an application for an order for inspection privilege is claimed for any document, it shall be lawful for the Court to inspect the document for the purpose of deciding as to the validity of the claim of privilege unless the document relates to matters of State.
  • (3) The Court may, on the application of any party to a suit at any time, and whether an affidavit of documents shall or shall not have already been ordered or made, make an order requiring any other party to state by affidavit whether any one or more specific documents, to be specified in the application, is or are, or has or have at any time been, in his possession or power; and, if not then in his possession, when he parted with the same and what has become thereof. Such application shall be made on an affidavit stating that in the belief of the deponent the party against whom the application is made has, or has at some time had, in his possession or power the document or documents specified in the application, and that they relate to the matters in question in the suit, or to some of them.
  • 20. Premature discovery. Where the party from whom discovery of any kind or inspection is sought objects to the same, or any part thereof, the Court may if satisfied that the right to the discovery or inspection sought depends on the determination of any issue or question in dispute in the suit, or that for any other reason it is desirable that any issue or question in dispute in the suit should be determined before deciding upon the right to the discovery or inspection, order that such issue or question be determined first, and reserve the question as to the discovery or inspection.
  • 21. Non-compliance with order for discovery. (1) Where any party fails to comply with any order to answer interrogatories, or for discovery or inspection of document, he shall, if a plaintiff, be liable to have his suit dismissed for want of prosecution, and, if a defendant, to have his defence, if any struck out, and to be placed in the same position as if he had not defended, and the party interrogating or seeking discovery or inspection may apply to the Court for an order to that effect and an order may be made on such application accordingly, after notice to the parties and after giving them a reasonable opportunity of being heard.
  • (2) Where an order is made under sub-rule (1) dismissing any suit, the plaintiff shall be precluded from bringing a fresh suit on the same cause of action.

Order XII rule 2 and 8 read as under:

  • 2. Notice to admit documents. Either party may call upon the other party [to admit, within [seven] days from the date of service of the notice any document,] saving all just exceptions; and in case of refusal or neglect to admit, after such notice, the costs of proving any such document shall be paid by the party so neglecting or refusing, whatever the result of the suit may be, unless the Court otherwise directs; and no costs of proving any document shall be allowed unless such notice is given, except where the omission to give the notice is, in the opinion of the Court, a saving of expense.
  • 2A. Document to be deemed to be admitted if not divided after service of notice to admit documents. (1) Every document which a party is called upon to admit, if not denied specifically or by necessary implication, or stated to be not admitted in the pleading of that party or in his reply to the notice to admit documents, shall be deemed to be admitted except as against a person under a disability :
  • Provided that the Court may, in its discretion and for reasons to be recorded, require any document so admitted to be proved otherwise than by such admission.
  • (2) Where a party unreasonably neglects or refuses to admit a document after the service on him of the notice to admit documents, the Court may direct him to pay costs to the other party by way of compensation.
  • 3. Form of notice. A notice to admit documents shall be in Form No. 9 in Appendix C, with such variations as circumstances may require.
  • 8. Notice to produce documents. Notice to produce documents shall be in Form No. 12 in Appendix C, with such variations as circumstances may require. An affidavit of the pleader, or his clerk, of the service of any notice to produce, and of the time when it was served, with a copy of the notice to produce, shall in all cases be sufficient evidence of the service of the notice, and of the time it was served.

Order XVI rule 6 reads as under:

  • 6. Summons to produce document. Any person may be summoned to produce a document, without being summoned to give evidence, and any person summoned merely to produce a document shall be deemed to have complied with the summons if he causes such document to be produced instead of attending personally to produce the same.

Provisions in the Evidence Act

Sec. 66 of the Evidence Act reads as under:

  • 66. Rules as to notice to produce.—Secondary evidence of the contents of the documents referred to in section 65, clause (a) , shall not be given unless the party proposing to give such secondary evidence has previously given to the party in whose possession or power the document is, [or to his attorney or pleader,] such notice to produce it as is prescribed by law; and if no notice is prescribed by law, then such notice as the Court considers reasonable under the circumstances of the case.
  • Provided that such notice shall not be required in order to render secondary evidence admissible in any of the following cases, or in any other case in which the Court thinks fit to dispense with it:—
  • (1) when the document to be proved is itself a notice;
  • (2) when, from the nature of the case, the adverse party must know that he will be required to produce it;
  • (3) when it appears or is proved that the adverse party has obtained possession of the original by fraud or force;
  • (4) when the adverse party or his agent has the original in Court;
  • (5) when the adverse party or his agent has admitted the loss of the document;
  • (6) when the person in possession of the document is out of reach of, or not subject to, the process of the Court.

Sec. 89 of the Evidence Act reads as under:

  1. Presumption as to due execution, etc., of documents not produced. ––The Court shall presume that every document, called for and not produced after notice to produce, was attested, stamped and executed in the manner required by law.

Sec. 130 and 131 of the Evidence Act reads as under:

  1. Production of title-deeds of witness not a party. –– No witness who is not a party to a suit shall be compelled to produce his title-deeds to any property, or any document in virtue of which he holds any property as pledge or mortgagee or any document the production of which might tend to criminate him, unless he has agreed in writing to produce them with the person seeking the production of such deeds or some person through whom he claims.
  2. Production of documents or electronic records which another person, having possession, could refuse to produce. –– No one shall be compelled to produce documents in his possession or electronic records under his control, which any other person would be entitled to refuse to produce if they were in his possession or control, unless such last-mentioned person consents to their production.

Sec. 144 of the Evidence Act reads as under:

  • 144. Evidence as to matters in writing. –– Any witness may be asked, whilst under examination, whether any contract, grant or other disposition of property, as to which he is giving evidence, was not contained in a document, and if he says that it was, or if he is about to make any statement as to the contents of any document, which, in the opinion of the Court, ought to be produced, the adverse party may object to such evidence being given until such document is produced, or until facts have been proved which entitle the party who called the witness to give secondary evidence of it.
  • Explanation. –– A witness may give oral evidence of statements made by other persons about the contents of documents if such statements are in themselves relevant facts.

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Read in this cluster (Click on the topic):

Book No. 1.   Handbook of a Civil Lawyer

Book No. 2: A Handbook on Constitutional Issues

Book No. 3: Common Law of CLUBS and SOCIETIES in India

Book No. 4: Common Law of TRUSTS in India

Law on Meetings: An Overview

Saji Koduvath, Advocate, Kottayam.

Synopsis

  1. Introduction
  2. Annual General Meetings Mandatory,
  3. Sufficiency of Notice,
  4. General Law – Convening of Meetings,
  5. Service of Notice,
  6. Meeting – Quorum,
  7. Agenda of a Meeting,
  8. Calling Extra-Ordinary General Body,
  9. Drafting and Confirming Minutes,
  10. Minutes Signed by Chairman– Evidence,
  11. Omission in Minutes,
  12. How Minutes Prepared,
  13. Rule of Majority,
  14. Society or Club: Dissolution ,
  15. Adjournment of Meeting,

Provisions of the Societies Registration Act, 1860:

  • 4. Annual list of managing body to be filed:-
  • Once in every year, on or before the fourteenth day succeeding the day on which, according to the rules of the society, the annual general meeting of the society is held, or, if the rules do not provide for an annual general meeting, in the month of January, a list shall be filed with the Registrar of joint-stock Companies, of the names, addresses and occupations of the governors, council, directors, committee or other governing body then entrusted with the management of the affairs of the society.

1. Introduction

Sec. 4 of the Societies Registration Act, 1860 postulates holding of Annual General Meeting. These provisions (also the Memorandum and Articles of Association of the society) as to holding Annual General Meetings, are mandatory; and not directory.[1] As per Sec. 2 of the Societies Registration Act the management of the affairs of a society is entrusted with the governing body.  The rules of the society have to direct the details of such entrustment.

It is pertinent to note that the Societies Registration Act, 1860 does not specifically direct ‘election’ of the governing body. But various States’ amendments (and State-Acts) provide for the same. The mode and modalities of formation of the governing body is determinedly left, under Sec.16, to the ‘Rules and Regulations of the society’.

Sec.16 reads:

  • Governing body defined: The governing body of the society shall be the governors, council, directors, committee, trustees, or other body to whom by the rules and regulations of the society the management of its affairs is entrusted.

2. Holding Annual General Meetings is a Mandatory Provision

Sec. 4 of the Societies Registration Act requires holding the annual general meeting of the societies, once in every year, according to the rules of the society, and directs holding of an annual general meeting in the months of January, if the rules do not provide for annual general meetings.

It is held in Sarbjit Singh Vs. All India Fine Arts and Crafts Society[2] that the provisions in the Memorandum and Articles of Association for holding Annual General Meetings between April and October are mandatory and not directory. This is so also for the reason that the Societies Registration Act itself postulates holding of Annual General Meeting.

3. Sufficiency of Notice

When a question arose as to whether the provision in the Co-operative Rules that provides 15 clear days notice for moving a no-confidence motion was directory or mandatory, following the Supreme Court decision in Narasimhiah Vs. Singri Gowda[3], it was held in V A Jose Vs. Joint Registrar of Co-operative Societies[4]that the provision was only directory since the legislature has not provided any consequence that is to follow if 15 clear days notice has not been given and since the petitioner did not explain in what manner he was prejudiced by not getting 15 clear days notice. It was also held that the petitioner being participated in the disputed meeting he had no right to challenge the invalidity in the notice for convening the meeting[5].

In Shackleton on the Law and Practice of Meetings[6], it has been stated:

  • Length of Notice: “It is clear: where the regulations provide for a stated period of notice to be given, this requirement must be met or the meeting will be invalid”.

4. General Law with regard to the Convening of Meetings

In Raja Himanshu Dhar Singh Vs. Additional Registrar Co-Operative Societies[7] the general law with regard to the convening of meetings has been expressed quoting Shackleton, “Meetings, Law and Practice”, as under:

  • “When notice is necessary, the following general rules must be observed.
  • 1. Every person, entitled to attend the meeting must be summoned, unless he is beyond reasonable summoning distance or is too ill to attend.
  • 2. The notice must be frank, clear and free from trickiness, and if any special business is to be transacted this must be clearly stated.
  • 3.The notice must be served strictly in accordance with the regulations of the body on whose behalf it is given and if any particular method is prescribed by Act of Parliament this also must be observed.
  • 4. An irregular notice may be ratified by the appropriate body at a subsequent meeting.”

5. Service of Notice

The bye laws being the contract between the members and the club, company or a society, if the bye laws provide provisions for the service of notice, they have to be adhered to. Otherwise, individual notice has be given to all members. Shackleton on the Law of Practice of Meetings says:

  • “The Regulations of the body on whose behalf notice is being given usually prescribe the method to be followed. The Rules of a club, for example, may provide that notices of meetings shall be posted at the club house and a copy sent to every member. Where no club rule prescribes a mode, it is within the general functions of the committee of a club to say how notices should be given on each particular occasion. The greater the importance of the matter to be discussed, for example where the expulsion of a club member is to be considered or rules are to be altered, the more the need to send a copy of the notice to each member rather than merely affixing it to the club notice board. On the other hand, in matters affecting clubs the courts eschew a meticulous examination of the rules: reasonableness and fairness are given more weight than a rigid interpretation. In the words of Megarry V.C., “allowance must be made for some play in the joints. In general, if there are no specific provisions, and subject to custom and practice … for example, the following of similar previous arrangements … notice may be given by advertisement: a notice in newspapers[8] convening a meeting of debenture holders under a trust deed has been held good. Where a particular form of service is provided for in the regulations, no other form is permitted; thus, where service by post is stipulated, delivery by dropping the notice into the letter box personally or by handing it to a clerk would not be in order.”

6. Meeting – Quorum

In Punjab University Vs. Vijay Singh Lamba[9] it is held by our Apex Court that the absence of a quorum in the meeting renders the meeting unlawful.

7. Agenda of a Meeting

It is held by the Supreme Court in Myurdhwaj Co-op. Group Housing Society Ltd. Vs. Presiding Officer, Delhi Co-op. Tribunal[10] that a general body can always with the approval of the house in the meeting of its members take up any other matter not covered by the agenda and on that account, no illegality could be held.

It is held in Vice Chancellor, Utkal University Vs. SK Ghosh[11] by our Apex Court that if the Rules of a body require resolutions to be moved and passed in a meeting called for the purpose, then every member of the body entitled to take part in the meeting must be given notice so that he can attend and express his views. Individual assents given separately cannot be regarded as equivalent to the assent of a meeting because the incorporated body is different from the persons of which it is composed. Therefore, it was held that an omission to give proper notice even to a single member in such circumstances would invalidate the meeting and that it would invalidate resolutions which purport to have been passed at it”. It is pointed out in a Kerala decision that each case must be governed by its own facts and no universal rule can be laid down; and that it may well be that in the same body certain things, such as routine matters can be disposed of more easily and with less formality than others. It all depends on the nature of the body and its rules. The substance is more important than the form and if there is substantial compliance with the spirit and substance of the law, an unessential defect in form will not be allowed to defeat what is otherwise a proper and valid resolution. [12]

When there was no agenda with respect to something which would not fall within the category of routine matters but was a matter which was of paramount importance and non inclusion of the same in the agenda goes to the root of the matter (like induction of new members to the society), that cannot be simply whisked away by saying that that can be brought within the last item shown in the agenda ‘other matters as allowed by the President’. [13]

Expulsion of certain members of a Samajam from the committee, and admission of others as committee members, was held to be illegal and improper for those decisions were taken not as item in the agenda, by the Kerala High Court, in St. Philomina Sadhujana Samajam Vs. Mathew.[14]

8. Calling Extra-Ordinary General Body

Even if no specific provision is provided for in the bye laws of a society, the governing body has the power to convene an extraordinary meeting either on their own decision or on the requisition of members.[15]

Subject to the provisions in the Act, if any, applicable and the bye laws, the final authority of every society and club shall vest in the general body[16] of the members in general meeting, summoned in such manner as may be specified in the bye-laws.

9. Drafting and Confirming Minutes

According to Shackleton[17] minutes, as a rule, show only the decisions recorded at a meeting, preceded possibly by a short narration dealing with the essential points leading up to the decision.

In Dr. Chetkar Jha V. Dr. Vishwanath Prasad Verma[18] our Apex Court has observed:

  • “The question then is whether the minutes, as drafted and placed before the meeting on July 3, 1963, could be altered as was done on that day. The alteration clearly was not of a minor or a clerical error but constituted a substantial change. Minutes of a meeting are recorded to safeguard against future disputes as to what had taken place thereat. They are a record of the fact that a meeting was held and of the decision taken thereat. Usually they are written up after the termination of the meeting, often from rough notes taken by the person who is to draft them and then are placed before the ‘next meeting for what is generally known as “confirmation”, though they are placed for verification and not for confirmation. Indeed, there is no question of any confirmation at the next meeting of a decision already taken, for, a decision once taken does not require any confirmation. Accordingly, when minutes of a meeting are placed before the next meeting the only thing that can be done is to see whether the decision taken at the earlier meeting has been properly recorded or not. The accuracy of the minutes and not the validity of the decision is, therefore, before the meeting. Once a decision is duly taken it can only be changed by a substantive resolution properly adopted for such a change. When, therefore, a decision is taken and is minuted and such minutes are signed by the Chairman they become prima facie evidence of what took place at the meeting. In the case of company meetings, every meeting of directors or managers in respect of whose proceedings minutes have been so made is deemed to have been properly held and convened and all proceedings had there to have been duly had and all appointments of directors, managers or liquidators are deemed to be valid unless the contrary is proved. (cf. Halsbury’s Laws of England, 3rd ED., Vol. 6, p. 318). This is the position when minutes have been signed by the Chairman. After such signature they cannot be altered. But before the minutes are signed they can be altered if found to be inaccurate or not in accord with what was actually decided. If that were not to be so, it would result in great hardship and inconvenience, for, however, inaccurate they are, they cannot be altered to bring them in conformity with the actual decision. [cf. Talbot, W.F., Company Meetings, (1951 Ed.), p. 82]. This was precisely what was done at the meeting of July 3, 1963 and no objection to the course adopted then by the Chairman and the Syndicate could be validly taken particularly as none present then had raised any protest against the alteration. The decision relied on by Mr. Jha in In re, Botherham Alum and Chemical Company (1883) 25 Ch D 103 is altogether on a different question and cannot be of any assistance.”

If reports are submitted to the meetings, (reports of committee, etc.), it is not usual to set out in extenso the full report, a reference in the minute by which the report can be identified will usually satisfy the most exacting Chairman.  When minutes are signed by the Chairman of the meeting, or the next succeeding meeting, they are prima facie evidence of the proceedings thereat and decisions recorded therein are deemed to be valid until the contrary is proved.

The Chairman of a meeting has prima facie authority to decide all incidental questions which arise at the meeting and an entry by him in the minute book of the result of a poll, or of his decision of all such questions, although not conclusive, is prima facie evidence of that result and the onus of displacing that evidence is thrown on those who impeach the entry.

Where the Chairman made an entry in the minute book that a resolution had been confirmed, the Court, in the absence of evidence that the votes were improperly disallowed, declined to question the decision of the Chairman.

10. Minutes Signed by Chairman– Prima Facie Evidence

Once a decision is duly taken it can only be changed by a substantive resolution properly adopted for such a change. When, therefore, a decision is taken and is minuted and such minutes are signed by the Chairman, they become prima facie evidence of what took place at the meeting[19]. It is held our Apex Court in Kerala State Electricity Board Vs. Hindustan Construction Co Ltd.[20] that a subsequent decision taken not to confirm the minutes cannot in any way dilutes or wipe out the decision which had already been taken.

The Chairman who signs at the next succeeding meeting need not necessarily have been present at the meeting of which the minutes are a record. If they have previously been circulated he will often sign them without having them read if the meeting so agrees[21]. His action in signing them as merely to record that they are a correct record of the business transacted. If there should be an error in them, of an immaterial kind, such a misspelt word or a clerical error, the alteration could be made by the Chairman and initialed.[22]

There may, however, be occasions, where the Chairman, although having no reason to question the accuracy of the record, refuses to sign the minutes. In such cases a record should be made in the minutes to the effect that the minutes of the previous meeting were correct.[23]

In Prince Marine Transport Services Private Limited v. State of Maharashtra, 2024 BHC(AS) 9336 (Bom) it is pointed out as under:

  • “Minutes book is the primary documents and it contains recording of discussion in the meeting and then decision taken. Whereas copy of the board resolution is nothing but the reproduction of decision taken in the meeting.”

11. Omission in Minutes

If, however, a material point is omitted, it is competent for a member at any time to prove at law the inaccuracy of minutes and have the resolutions set aside.[24]

12. How Minutes Prepared

Shackleton on the ‘Law and Practice of Meetings’,[25] it has been laid down:

  • “5. Essential Points in Drafting Minutes: Minutes should commence with the name of the body concerned and give the type of meeting (e.g executive committee). They should state the date, time and place of the meeting and the time the meeting finished (at the end of the minutes). They should also contain a record of the names of the members present and “in attendance,” and whether present for all or part of the meeting or a note of the list attendance sheets or other document where their names may be found. They should also record the name of the member taking the chair.

Minutes should:

  • (a) be taken by the person best placed to do so. Independence, discretion and a good understanding of the business of the organization are key here. It is recommended that a member who is required to make a significant contribution to the meeting does not also take the minutes;
  • (b) be accurate. If there are any especially complex or technical areas recorded in the minutes, it is good practice to double check these with the relevant member to ensure complete accuracy, whilst preparing the draft minutes. The Chairman of the meeting should be given the opportunity to comment on the first draft before they are circulated to all members;
  • (c) be clear and unambiguous. Minutes must be easily understood; not just by the members but by others who may need to glean a good understanding of the company’s business and decision-making e.g. auditors. Avoid too many acronyms and technical language; instead refer to the papers for the detail if the reader requires this;
  • (d) be well structured. A good minute taker will be able to omit the recording of discussions which strayed away from the agenda items and were not relevant. He should also re-order the minutes to tie in with the agenda if the meeting was not well chaired and the meeting did not strictly follow the agenda order;
  • (e) be concise. Not too long or too short, dependent of course on the culture and style of the organisation and the personal preferences of the Chairman;
  • (f) record the essential elements of the discussion on each item, i.e. narration which is vital to an understanding of the proceedings. This will encourage members to speak up next time and also helps remind the organization why they made a particular decision and how they came to it. The full text of all resolutions should be recorded;
  • (g) avoid comment and expressions of opinion unless an essential part of the decision-making process;
  • (h) be produced in a timely fashion. Minutes should ideally be produced within 48 hours of the meeting to ensure accuracy. The minute taker should agree with the Chairman a sensible time period for distribution of the minutes to members after the meeting, taking into account any annual programme of meetings and the period of time between each. He/she should also agree whether any attendees at the meeting are entitled to receive copies of the minutes. The past tense should be used to record events at the meeting, e.g. “It was reported that,” and the past perfect tense for events prior to the meeting, e.g. “Mr. X reported that he had completed his survey.”

The following are examples of minutes with suggested improvements:

  • 1. Mr. X reported that we had secured a further contract on satisfactory terms from the Z Co. Ltd. The use of the word “we” instead of “the company” is a common mistake. In addition, the minute omits important particulars. The following is suggested as a more useful record:
  • 1A. Mr. X reported the signature on behalf of the company of a contact dated … .with the Z. Co. Ltd. for the purchase of a further 1,000 tonnes of coal of the same quality as that previously supplied, at … per tonne, to be delivered to the company’s Birmingham factory, delivery as required July/December [year]. The previous contract was at … per tonne. The approval of the contract was ratified. From a directors’ meeting:
  • 2. Resolved that transfers of 1,000 Ordinary shares produced be approved and passed. The minute should read:
  • 2A. It was resolved that transfers nos….to … inclusive, produced to the meeting, details of transferor and transferee below, relating to 1,000 ordinary shares in the company, be and they are hereby approved for registration and that the common seal of the company be affixed to certificates nos…. to ….relating thereto. From the meeting of a charity:
  • 3. Mr Jones said that before we move on to normal business there is a petition which is being presented by the St. Albans branch for the relief of VAT on charities. There are petition forms here tonight and we hope that if possible you will all sign before you leave. An improved version: 3A. The treasurer drew attention to a petition which was being presented by the St Albans branch for the relief of VAT on charities and invited members to sign it at the conclusion of the meeting.

From the minutes of a management meeting:

  • 4. Radios, cabs, yard and general housekeeping were extremely poor. General Comment: “A Disgrace” This might be better written as:
  • 4A. The attendees felt that the standard of housekeeping, particularly in respect of the radios, cabs and yard, was extremely poor and indeed disgraceful and it was agreed that (action to be taken, by whom and in what timescale.) Within a single paragraph it may not be necessary to introduce every sentence with words which imply reported speech. For example, the minutes of a meeting of the council of an association could (quite correctly) read as follows:
  • 5. The chairman expressed disappointment at the figures for 1996. She stressed the need for urgent action, to avoid exhaustion of the reserves. She said that, with additional expenditure on the awards, pressure on resources would be acute. She pointed out that part of the problem resulted from the decision of previous councils not to increase subscription rates. This could be better reported as follows:
  • 5A. The chairman expressed disappointment at the figures for 1996. With additional expenditure on the awards, and because previous councils had decided not to increase subscription rates, urgent action was necessary to avoid exhaustion of the reserves. The names of the proposers and seconders of motions are usually shown, but there is no need to record details of voting. Motions which are not seconded need not be recorded although it can be useful in understanding the collective will of members.
  • 6. Confirmation of the Minutes: Decisions once arrived at do not need confirmation:
  • At a vestry meeting it was the usual procedure to read over at the next meeting the resolutions of the preceding one. At the second of two meetings there was considerable diversity of opinion as to the votes admitted at the first meeting, but judgment was to the effect that there was no necessity for the confirmation by the second vestry of what was legally done at the first, if the first was a legal vestry meeting the election thereat was legal. However, confirmation of the minutes as an accurate record of the decisions made at the previous meeting is usually obtained by submitting them to the chairman of the next meeting for signature. If they have not been previously circulated he will ask the secretary to read them, and, if the meeting confirms (usually on a show of hands) that they are a correct record, he will sign them. If they have previously been circulated, he will sign them without their being read out if the meeting so agrees.

13. Rule of Majority

Every member of a company, club or society joins the same on the basis that the majority would be entitled to determine its affairs.[26]

In Satyavart Sidhantalankar Vs. Arya Samaj, Bombay,[27] it was observed that every member of a corporation or an incorporated company joins the same on the basis that prima facie the majority of members are entitled to exercise powers and control operations generally and the same would be the position in the case of unincorporated associations of individuals whether the same be registered under the Societies Registration Act or not. The rule of majority was held to be the normal basis of these associations. It was determined that the members of such associations know fully well that the affairs of these associations would be conducted normally by the vote of the majority of members thereof and no member would be heard to contend to the contrary.

If the rules of  the society or club provided that the decision of a particular question must be by a majority, the decision would bind all the members unless the act complained of is a fraud on the minority or is ultra vires the society or club. In all other matters about which the rules are silent, the majority does not have any right to coerce the minority[28].

The principle in Milligan Vs. Mitchel[29] and Free Church of England Vs. Overtoun[30] that it is not open for the majority of the members of an association to alter the fundamental principles upon which it is founded unless such a power is specifically reserved is referred to in Prasanna Venkitesa Rao Vs. Srinivasa Rao.[31]

In Free Church of England Vs. Overtoun House of Lords (by a majority of 5-2) found that the minority was entitled to the assets of the Free Church. It was observed that when men subscribe money for a particular object, and leave it behind them for the promotion of that object, their successors have no right to change the object endowed. It was further held that, by adopting new standards of doctrine (and particularly by abandoning its commitment to ‘the establishment principle’, which was held to be fundamental to the Free Church), the majority had violated the conditions on which the property of the Free Church was held.

It is held in Inderpal Singh Vs. Avtar Singh[32] that Rule of Law demands and dictates that the people follow the Law. The Constitution, whether of the State or of a Society registered under the Societies Act, is paramount. The doctrine of factum valet is applicable to cure the violation of a directory provision or a mere matter of form but does not cure the violation of the fundamental principles or the essence of the transaction.

14. Unregistered Society or Club – Dissolution on Unanimous Decision

If the Rules of an unregistered society or a club do not contain a provision for the dissolution of the club by a vote of the majority, its dissolution could be brought about only by a unanimous decision.[33]

15. Adjournment of Meeting by the Chairman

In Deodutt Sharma v. Zahoor Ahmed Zaid[34] it is held: 

  • “From the aforesaid view of cases the following principles clearly emerge:- 
  • 1 That once a meeting had been properly called and it meets the chairman of the meeting can only adjourn it with the consent of the majority of the members subject of course to the rules and regulations of the particular body in relation to which such a question might arise. Thus where a meeting according to a statute or the rules under which it has been called must have a certain quorum and such quorum is not present the chairman will have the authority to adjourn the meeting because in its absence no lawful meeting can be held.
  •  2 In the absence of any rule to the contrary the common law doctrine should be held to prevail that the adjournment of the meeting rests with the majority of the members present and is not a matter merely of the pleasure of the chairman.
  •  3 An exception to the aforesaid rule which has been almost universally accepted is that where disorder breaks out at a meeting the chairman has an inherent right[35] even if it has not been granted by statute or the rules to adjourn the meeting without consulting the majority.
  •  4 These exceptions apart if the chairman adjourns a meeting contrary to the wishes of the members present and thereby interrupts or leaves unfinished the business for which the meeting was summoned the remaining members can lawfully continue the business; and in the absence of their proper chairman it is open to them to elect another chairman to act as his substitute and continue the business and any business which was duly notified in the notice for the meeting could be transacted to completion and if it is so transacted it would be valid.
  •  5 Where however the adjournment has been properly ordered by the chairman or it having been ordered the members have acquiesced in it and thereafter it dawns on or strikes some of them to continue the business of the meeting then such continuance should be held to be invalid as being a surprise or a fraud on the members who may have already left the meeting.”

[1]      Sarbjit Singh Vs. All India Fine Arts & Crafts Society: ILR 1989-2 Del 585.

[2]      ILR 1989-2 Del 585

[3]      AIR 1966 SC 330

[4]      LR 2007 (1) Ker 10

[5]      See: Shackleton on Law and Practice of Meeting, Eighth Edition, Page 4,         Also Re British Sugar Refining Co. (1857) 3 K & J. 408.

[6]      Ninth Edition, in paragraph 5-08 (8)

[7]      AIR1962 All 439

[8]      Moran Mar Basselios Catholicos Vs. Thukalan Paulo Avira : AIR 1959 SC 31

[9]      1976 (3) SCC 344

[10]    (1998) 6 SCC 39

[11]    AIR 1954 SC 217

[12]    K. Nanu Vs. C.H. Kunhikrishna Kurup: 2013 Ker LJ 769.

[13]    K.  Nanu Vs. C.H. Kunhikrishna Kurup: 2013 Ker LJ 769;         See M.I. Builders Pvt. Ltd. Vs. Radhey Shyam Sahu- AIR 1999 SC 2468;        Kodiyathur Panchayath Vs. District Panchayath Officer 1977 KLT 80.

[14]    1974 Ker LT 731;         See also: Kodiyathur Panchath Vs.. District Panchayath Officer:  1977 Ker LT 80

[15]    See: Shackleton on the Law and Practice of Meetings (Seventh Edition) Page 120;        Company meetings Law and Procedure by B. K. Sen Gupta (1985), Page 221

[16]    Supreme Court Bar Association Vs. Registrar of Societies: ILR 2012-22 Del  1031;        Girish Mulchand Mehta Vs. Mahesh S. Mehta. 2010 (1) Bom. C.R 31

[17]    Shackleton on the Law and Practice of Meetings

[18]    AIR 1970 SC 1832;        Quoted in Kerala State Electricity Board Vs. Hindustan Construction Co.: AIR 2007 SC 425

[19]    Chetkar Jha Vs. Viswanath Prasad Verma:  1971 (1) SCR 586: AIR 1970 SC 1832.

[20]    AIR 2007 SC 425.        Referred to: Chetkar Jha Vs.Viswanath Prasad Verma: AIR 1970 SC 1832.

[21]    Shackleton on the Law and Practice of Meetings

[22]    Shackleton on the Law and Practice of Meetings

[23]    Shackleton on the Law and Practice of Meetings

[24]    Shackleton on the Law and Practice of Meetings

[25]    Tenth Edition, at page 86: Quoted in Kerala State Electricity Board Vs. Hindustan Construction Co Ltd. AIR 2007 SC 425;        See also: (i) The Law and Procedure of Meetings by Matthew Moore, Lecturer in Law at Exeter College, Devon,        (ii) The Law of Meetings in India by Mr. B. A. Masodkar.        (iii) Principles of Statutory Interpretation by Guru Prasanna Singh.

[26]    Satyavart Sidhantalankar Vs. Arya Samaj, Bombay : AIR 1946 Bom  516,

[27]    1946 AIR Bom  516,

[28]    Raja Himanshu Dhar Singh Vs. Addl Registrar Co-op Societies AIR1962 All 439;        J.N. Chaudhary Vs. State of Haryana (2014) 11 SCC 249; AIR1991 NOC 78

[29]    40 ER 852

[30]    (1904) AC 515

[31]    AIR 1931 Mad. 12.              

[32]    2007-4 Raj LW 3547

[33]    NF Barwell Vs. John Jackson: AIR 1948 All 146.        It is considered in Shridhar Misra Vs. Jaichandra Vidyalankar: AIR1959  All 598;        See also Jamiat Ulama Vs. Maulana Mahmood Asad Madni: ILR 2008 -17 Dlh 1950;        Raja Himanshu Dhar Singh Vs. Addl Regtr Co-Op. Societies: AIR1962 All 439

[34]    AIR 1960 Raj 25

[35]    See also: John Vs. Rees: 1969 (2) All ER 274



Read in this cluster (Click on the topic):

Book No. 1.   Handbook of a Civil Lawyer

Book No. 2: A Handbook on Constitutional Issues

Book No. 3: Common Law of CLUBS and SOCIETIES in India

Book No. 4: Common Law of TRUSTS in India

Expulsion of Members & Removal of Office-Bearers

Saji Koduvath, Advocate, Kottayam.

Synopsis.

  • 1.      Introduction
  • 2.      Expulsion, Strict Compliance of Rules Essential
  • 3.      Principles of Natural Justice
  • 4.      Three Principles of Law as to Enquiry
  • 5.      Judicial Review: Constraints
  • 6.      Courts’ Jurisdiction in Disciplinary Matters
  • 7.      Sources of Civil Court’s Jurisdiction
  • 8.      Natural Justice: Commonsense Justice
  • 9.      Natural Justice: Strict Compliance
  • 10.    Natural Justice: Rules and Subsidiary Rules
  • 11.    Natural Justice: Audi Alteram Partem – Requirements
  • 12.    Natural Justice: Courts Generally Read-Into the Provisions
  • 13.    Natural Justice: Recognized as part of Article 14
  • 14.    Hearing: Must be a Genuine Hearing
  • 15.    Natural Justice: Circumstances
  • 16.    Natural Justice: Not Unruly Horse
  • 17.    Natural Justice: Principles Undergone a Sea Change
  • 18.    Compliance of Substantive and Procedural Provisions
  • 19.    Natural Justice:  Laxity in Disciplinary Action
  • 20.    Natural Justice:  Laxity in Disciplinary Action
  • 21.    Natural Justice: Laxity in Domestic Tribunal
  • 22.    Natural Justice: Violation and Alternate Remedy:
  • 23.    Natural Justice: Administrative Process & Urgency
  • 24.    Natural Justice: Inordinate Delay in Disciplinary Proceedings
  • 25.    Charges Should Not be Vague
  • 26.    Court Jurisdiction – Expulsion in Violation of Natural Justice
  • 27.    Court’s Jurisdiction in Expulsion from a Political Party
  • 28.    Court Does Not Sit in Appeal
  • 29.    Appointment of Impartial Enquiry Officer
  • 30.    Ex-communication
  • 31.    Proof in Disciplinary Action
  • 32.    Misconduct in Labour Cases
  • 33.    Court Scrutinises Acts of Trustees
  • 34.    No Action against Trustees, if Bona Fide Act
  • 35.    Degree of Prudence Expected
  • 36.    Jurisdiction of Courts in Removal of Persons Holding Office
  • 37.    Breach of Bye-law or Mismanagement Entails removal
  • 38.    Trustees Actuated by Dishonest and Corrupt Motives
  • 39.    Misconduct or negligence
  • 40.    Claim of Adverse Title by a Trustee
  • 41.    Assertion of Private Ownership
  • 42.    If Trustees have Interest Adverse to Beneficiaries
  • 43.    District Courts’ Jurisdiction under S R Act, Limited
  • 44.    Court Examines Reasons of Supersession of Societies
  • 45.    Non-Payment of Subscription: Not Amount to Resignation
  • 46.    No expulsion for arrears  if no notice
  • 47.    Office-Bearer Can be Removed by No-Confidence Motion
  • 48.    Office-Bearer – Removal by Motion of No-confidence
  • 39.    Removal of Earlier Committee

Provisions of the Societies Registration Act, 1860:

  • 1. Societies formed by memorandum of association and registration
  •  Any seven or more persons associated for any literary, scientific, or charitable purpose, or for any such purpose as is described in section 20 of this Act, may, by subscribing their names to a memorandum of association, and filing the same with Registrar of Joint-stock Companies [..] form themselves into a society under this Act.
  • 2. Memorandum of association
  • The memorandum of association shall contain the following things, that is to say, the name of the society; the object of the society; the names, addresses, and occupations of the governors, council, directors, committee, or other governing body to whom, by the rules of the society, the management of its affairs is entrusted. A copy of the rules and regulations of the society, certified to be a correct copy by not less than three of the members of the governing body, shall be filed with the memorandum of association.
  • 15. Member defined: For the purposes of this Act a member of a society shall be a person who, having been admitted therein according to the rules and regulations thereof, shall have paid a subscription, or shall have signed the roll or list of members thereof, and shall not have resigned in accordance with such rules and regulations;
  • Disqualified members: But in all proceedings under this Act no person shall be entitled to vote or be counted as a member whose subscription at the time shall have been in arrears for a period exceeding three months

Introduction

The associations have the right to manage their affairs by themselves. They have the right to enforce the internal discipline even by expelling an erring member.

Since expulsion of a member from society or club visits him with harsh adversities, it will always be an exceptional decision and ithas to be taken only in exceptional circumstances. It has to be done cautiously and after due considerations. And, it should also be strictly in accordance with law.

In Halsbury’s Laws of England[1] it is stated:

  • “201. Expulsion. As a society is founded on a written contract expressing the terms on which the members associate together, there is no inherent power to expel a member, and a member may not therefore be expelled unless the rules provide that power. Any power of expulsion must be exercised in good faith, for the benefit of the society and strictly in accordance with the rules. If rules give the committee or some other authority power to expel a member for some act of disobedience or misconduct on his part, its decision cannot be questioned, provided the decision is arrived at after the member’s defense has been heard or he has been given an opportunity of being heard. If a member is not given the opportunity the decision will be null and void. If the rules have been strictly observed, and the member has had due notice and full opportunity of answering the charges made against him and the power of expulsion has been exercised in good faith and for a reason which is not manifestly absurd, no tribunal can interfere to prevent the expulsion”.

Expulsion, Strict Compliance of Rules Essential

Strict compliance of Rules and bye laws is essential for expulsion of a member from a society.[2] In the celebrated decision, TP DaverVs. Lodge Victoria,[3] the Supreme Court held:

  • “4. The source of the power of associations like clubs and lodges to expel their members is the contract on the basis of which they become members. This principle has been restated by Lord Morton in Bonsor v. Musicians’ Union. There, one Bonsor, who became a member of a trade union, was expelled. In that context Lord Morton observed:‘When Mr. Bonsor applied to join the respondent union, and his application was accepted, a contract came into existence between Mr. Bonsor and the respondent, whereby Mr. Bonsor agreed to abide by the rules of the respondent union, and the union impliedly agreed that Mr. Bonsor would not be excluded by the union or its officers otherwise than in accordance with the rules’.
  • This contractual origin of the rule of expulsion has its corollary in the cognate rule that in expelling a member the conditions laid down in the rules must be strictly complied- with. In Maclean v. The Workers’ Union, the contractual foundation of the power is described thus:‘In such a case as the present, where the tribunal is the result of rules adopted by persons who have formed the association known as a trade union, it seems to me reasonably clear that the rights of the plaintiff against the defendants must depend simply on the contract, and that the material terms of the contract must be found in the rules’.
  • Proceeding on that basis, the learned Judge observed:‘It is certain, therefore, that a domestic tribunal is bound to act strictly according to its rules and is under an obligation to act honestly and in good faith.’
  • The same idea was expressed by the Calcutta High Court in Ezra Vs. Mahendra Nath Banerji thus: ‘where the rule provides in any particular respect that some condition must be fulfilled, then that condition must be strictly complied with, since the power of expulsion is itself dependent on the terms of the rule’. 
  • The next question is whether the doctrine of strict compliance with rules implies that every minute deviation from the rules, whether substantial or not, would render the act of such a body void. The answer to this question will depend upon the nature of the rule infringed; whether a rule is mandatory or directory depends upon each rule, the purpose for which it is made and the setting in which it appears. 
  • 8. The following principles may be gathered from the above discussion.
  • (1) A member of a Masonic lodge is bound to abide by the rules of the lodge; and if the rules provide for expulsion, he shall be expelled only in the manner provided by the rules.[4]
  •  (2) The lodge is bound to act strictly according to the rules, whether a particular rule is mandatory or directory falls to be decided in each case, having regard to the well settled rules of construction in that regard.
  •  (3) The jurisdiction of a civil court is rather limited; it cannot obviously sit as a court of appeal from decisions of such a body; it can set aside the order of such a body, if the said body acts without jurisdiction or does not act in good faith or acts in violation of the principles of natural justice as explained in the decisions cited supra.”[5]

Principles of Natural Justice

In AR Antulay Vs. RS Nayak[6] a seven Judge Bench of our Apex CourtCourt has held that when an order has been passed in violation of a fundamental right or in breach of the principles of natural justice, the same would be nullity.[7]

The Supreme Court in SL Kapur Vs. Jagmohan[8] held as under:

  • “In our view the principles of natural justice know of no exclusionary rule dependent on whether it would have made any difference if natural justice had been observed. The non-observance of natural justice is itself prejudice to any man and proof of prejudice independently of proof of denial of natural justice is unnecessary. It ill comes from a person who has denied justice that the person who has been denied justice is not prejudiced.”

The principles of law as to natural justice, to be applied in an action for termination of an employee, are applied in the matter of expulsion of a member of a society also.

Three Principles of Law as to Enquiry

Following are the three important principles of law as to enquiry:

  • (i)   It should be on proper charge or show cause notice[9]
  • (ii)  Finding should be based on proper evidence.[10]
  • (iii) Natural justice should be complied with.          

When a member is expelled on the allegation of violation of Rules,the Rules violated has to be cited in the show-cause notice.[11]

It is laid down by our courts that preliminary enquiry cannot be the basis of findings for punishment[12]and that collection of materials from outside sources by enquiry officer vitiates enquiry. The enquiry officer is also not expected to travel beyond charges.[13] Granting opportunity for cross examination is integral part of natural justice.[14]

Judicial Review: Constraints

The disciplinary authority is the sole judge of facts.[15]

The jurisdiction of the courts to interfere with the decision of the domestic[16] or departmental authorities is limited. It was not for the Court to consider whether the ground adopted by the tribunal or authority alone would have been sufficient to bring home the action imposed.

The court, while exercising the power of judicial review, cannot substitute its own conclusion on penalty and impose some other penalty. But, in proper cases the court or tribunal would remit[17] the matter to the concerned authority to impose appropriate punishment or appropriately mould the relief, either directing the disciplinary/appellate authority to reconsider the penalty imposed, or to shorten the litigation; it may itself, in exceptional and rare cases, impose appropriate punishment with cogent reasons in support thereof.[18]

Courts’ Jurisdiction in Disciplinary Matters

The courts have jurisdiction in the actions of the disciplinary authority in the following circumstances:

  • (i)    Actions without jurisdiction;[19]
  • (ii)   Acts not in good faith;[20]
  • (iii) The findings, prima facie, did not make out a case of misconduct,[21] or without evidence[22]  and utterly perverse;[23]
  • (iv) The proceedings were held in violation of the principle of natural justice,[24]such as noproper charge or vague charge,[25] full opportunity had not been given to the employee to meet the charge, etc.;
  • (v)   The proceedings were in violation of the statutory Regulations[26] or Rules[27] prescribing the mode of enquiry;
  • (vi) The decision is vitiated on the principle of perversity.[28]
  • (vii) Punishment imposed shocks the conscience of the Court.[29]
  • (ix) The appellate authority had not adverted to the relevant facts;[30]
  • (x)   Punishment without sufficient reasons or valid grounds.[31]
  • (xi)  Without any credible material.[32]

While dealing with CP and Berar Municipalities Act, it is held by the Full Bench in Municipal Commissioner, Kareli Vs. State of MP[33] that the Court has power to examine the sufficiency of reasons. It was observed:

  • “In a democratic society it is of the essence that democratic institutions are allowed to function and not superseded on trumpery charges inadequately brought home or unreasonably accepted. The Courts will be vigilant to see that such over-reaching powers are kept within the four corners of the statute granting them. We think that the fact that a reasonable opportunity to show cause has been made a condition precedent to the exercise of the power and that reasons for the supersession have to be notified to the electorate shows that there is not to be a subjective appraisal but that the reasons must be sufficient under the Act and an objective test is indicated. The requirements of the law are not satisfied by accepting insufficient or inadequate reasons for supersession. We think that the Courts are at liberty to examine the reasons for this limited purpose in addition to the purposes which the learned Judges of the earlier Division Bench (Mangalmurti and Mudholkar JJ.) have already indicated in their order.”

Participation of a delinquent in the inquiry by itself does not absolve management from the blemish of bringing a defective charge.[34]

Where punishment imposed shocks the conscience of the Court,[35] the court or tribunal would, in proper cases, appropriately mould the relief, either directing the disciplinary/appellate authority to reconsider the penalty imposed; or to shorten the litigation, it may itself, in exceptional and rare cases, impose appropriate punishment with cogent reasons in support thereof.

Sources of Civil Court’s Jurisdiction

The jurisdiction of a civil court to interfere with the internal affairs of associations is ‘rather limited’.[36] Courts get jurisdiction to interfere with the internal affairs of associations if there are cogent grounds such as acts without jurisdiction, acts in violation of the principles of natural justice, acts with malafides, etc.[37]Beyond the general jurisdiction of courts to intervene and set right illegalities, the jurisdiction thereof is obtained by Courts from three sources: 

  • (i)    contract,[38]
  • (ii)   court is the protector of all charities[39] and
  • (iii) formation of associations is, besides common law right as well as statutory right, a fundamental right[40] protected by our courts.

Courts will not delve in the internal disputes of an association[41] unless it is shown[42] that the aggrieved parties have worked out and exhausted their remedies[43] (but, failed to resolve disputes)under the bye laws, before (a) the machinery or body (domestic tribunals)[44], if any,  provided in its bye laws,[45] or (b) the body or authority which has to take cognisance of the matter, under the scheme of its bye laws, or (c) the authorities under the statute, if any, holds the field.[46]

Natural Justice: Commonsense Justice

See Chapter: Court’s Jurisdiction to Interfere in the Internal Affairs

Natural Justice: Strict Compliance

Natural justice has been variously defined. It is another name for common sense justice. It is held in Canara Bank v. Debasis Das:[47]

  • “Rules of natural justice are not codified canons. But they are principles ingrained into the conscience of man. Natural justice is the administration of justice in a common sense liberal way. Justice is based substantially on natural ideals and human values. The administration of justice is to be freed from the narrow and restricted considerations which are usually associated with a formulated law involving linguistic technicalities and grammatical niceties. It is the substance of justice which has to determine its form. Principles of natural justice are those rules which have been laid down by the courts as being the minimum protection of the rights of the individual against the arbitrary procedure that may be adopted by a judicial, quasi-judicial and administrative authority while making an order affecting those rights. These rules are intended to prevent such authority from doing injustice.”[48]

In this decision it is also held:

  •        “Even an administrative order which involves civil consequences[49] must be consistent with the rules of natural justice. This Court has elaborated the expression `civil consequence’ by observing that it encompasses infraction of not merely property or personal rights but of civil liberties, material deprivations and non-pecuniary damages. This Court has further stated, that, in its wide umbrella comes everything that affects a citizen in civil life.”[50]

Removal of a member or an office bearer of a society on the basis of proved misconduct[51] is a quasi-judicial proceeding in nature. Therefore, the principles of natural justice[52] are required to be given full play and strict compliance should be ensured, even in the absence of any provision providing for the same. Principles of natural justice require a fair opportunity of defense to such member or office bearer.

In Board of High School and Intermediate Education, UP Vs. Ghanshyam Das Gupta[53] the Supreme Court observed as follows:

  • If a statutory authority has power to do any act which will prejudicially affect the subject then, although there are not two parties apart from the authority and the contest is between the authority proposing to do the act and the subject opposing it, the final determination of the authority will yet be a quasi-judicial act provided the authority is required by the Statute to act judicially. The statute is not likely to provide in so many words that the authority passing the order is required to act judicially; that can only be inferred from the express provisions of the statute in the first instance in each case and no one circumstance alone will be determinative of the question whether the authority set up by the statute has the duty to act judicially or not. The inference whether the authority acting under a statute where it is silent has the duty to act judicially will depend on the express provisions of the statute read along with the nature of the rights affected, the manner of the disposal provided the objective criterion if any to be adopted, the effect of the decision on the person affected and other indicia afforded by the statute. A duty to act judicially may arise in widely different circumstances which it will be impossible and indeed inadvisable to attempt to define exhaustively.”[54]

Any breach of a bye-law would not result into automatic cessation of membership but the procedure for removal or expulsion from membership would be required to be followed even in case of breach of bye-laws of a society.[55]

When a committee of an association continues to exercise powers even after cessation of their period of office opportunity of being heard should be given to the members of the committee concerned.[56] It is well settled that principles of natural justice must be read into the byelaws and the statute, unless there is a clear directive to the contrary.[57]

Natural Justice: Rules and Subsidiary Rules

Formerly, only two rules were recognised:

  • (1) Nemo debet esse judex propria causa
  • (2) Audi alteram partem

Subsequently, more subsidiary rules were recognized, such as:

  • Without bias
  • Right to reasons.

Our Apex Court expounds the purport and extent of principles of natural justice in A.K. KraipakVs. Union of India[58] as under:

  • “The aim of the rules of natural justice is to secure justice or to put it negatively to prevent miscarriage of justice. These rules can operate only in areas not covered by any law validly made. In other words they do not supplant the law of the land but supplement it. The concept of natural justice has undergone a great deal of change in recent years. In the past it was thought that it included just two rules namely:
  • (1) no one shall be a judge in his own case (Nemo debet esse judex propria causa) and (2) no decision shall be given against a party without affording him a reasonable hearing (Audi alteram partem).
  • Very soon thereafter a third rule was envisaged and that is that quasi-judicial enquiries must be held in good faith, without bias and not arbitrarily or unreasonably. But in the course of years many more subsidiary rules came to be added to the rules of natural justice.
  • Right to reasons is an indispensable part of a sound system of judicial review. Under our Constitution an administrative decision is subject to judicial review if it affects the right of a citizen, it is therefore desirable that reasons should be stated.”

Natural Justice: Audi AlteramPartem – Requirements

  • Charge/show cause notice;
  • Examination of witnesses and opportunity to cross-examine;
  • Opportunity to the delinquent to examine witnesses including himself; and
  • Findings with reasons.

It is observed in Sur Enamel and Stamping Works Pvt. Ltd. Vs. Their Workmen:[59]

  • “… An enquiry cannot be said to have been properly held unless,
  • the employee proceeded against has been informed clearly of the charges leveled against him,[1]
  • (ii) the witnesses are examined ­ ordinarily in the presence of the employee ­ in respect of the charges, 
  • the employee is given a fair opportunity to cross-examine witnesses,
  • he is given a fair opportunity to examine witnesses including himself in his defense if he so wishes on any relevant matter, and
  • the inquiry officer records his findings with reasons for the same in his report.”

In Chamoli District Co-Operative Bank Ltd. Vs. Raghunath Singh Rana[60] our Apex Court laid down that the following principles would emerge as to the enquiry against a workman: 

  • “(i) The enquiries must be conducted bona fide and care must be taken to see that the enquiries do not become empty formalities.
  • (ii) If an officer is a witness to any of the incidents which is the subject matter of the enquiry or if the enquiry was initiated on a report of an officer, then in all fairness he should not be the Enquiry Officer. If the said position becomes known after the appointment of the Enquiry Officer, during the enquiry, steps should be taken to see that the task of holding an enquiry is assigned to some other officer. 
  •  (iii) In an enquiry, the employer/department should take steps first to lead evidence against the workman/delinquent charged and give an opportunity to him to cross-examine the witnesses of the employer. Only thereafter, the workman/delinquent be asked whether he wants to lead any evidence and asked to give any explanation about the evidence led against him. 
  • (iv) On receipt of the enquiry report, before proceeding further, it is incumbent on the part of the disciplinary/punishing authority to supply a copy of the enquiry report and all connected materials relied on by the enquiry officer to enable him to offer his views, if any.”

In this case (Chamoli District Co-operative Bank Ltd. Vs. Raghunath Singh Rana) our Apex Court referred to the following decisions:

  • (i)   Sur Enamel and Stamping Works Pvt. Ltd. Vs.Their Workmen.[61]
  • (ii) State Bank of India Vs. R.K. Jain.[62]  It is held: “……As emphasised by this Court in Ananda Bazar Patrika Vs.. Its Workmen, (1964) 3 SCR 601, the termination of an employee’s service must be preceded by a proper domestic inquiry held in accordance with the rules of natural justice. Therefore, it is evident that if the inquiry is vitiated by violation of the principles of natural justice or if no reasonable opportunity was provided to a delinquent to place his defense, it cannot be characterized as a proper domestic inquiry held in accordance with the rules of natural justice ……”
  • (iii) State of Uttranchal Vs. Kharak Singh.[63] It is held: “… … If an officer himself sees the misconduct of a workman, it is desirable that the enquiry should be left to be held by some other person who does not claim to be an eye-witness of the impugned incident. As we have repeatedly emphasised, domestic enquiries must be conducted honestly and bona fide with a view to determine whether the charge framed against a particular employee is proved or not, and so, care must be taken to see that these enquiries do not become empty formalities.  …  ….. It is necessary to emphasise that in domestic enquiries, the employer should take steps first to lead evidence against the workman charged, give an opportunity to the workman to cross-examine the said evidence and then should the workman be asked whether he wants to give any explanation about the evidence led against him. It seems to us that it is not fair in domestic enquiries against industrial employees that at the very commencement of the enquiry, the employee should be closely cross-examined even before any other evidence is led against him……” Followed Associated Cement Co. Ltd. Vs.The Workmen.[64]
  • (iv) ECIL Vs. B. Karunakar.[65]It is held:  “(1) Where the enquiry officer is other than the disciplinary authority, the disciplinary proceedings break into two stages. The first stage ends when the disciplinary authority arrives at its conclusions on the basis of the evidence, enquiry officer’s report and the delinquent employee’s reply to it. The second stage begins when the disciplinary authority decides to impose penalty on the basis of its conclusions. If the disciplinary authority decides to drop the disciplinary proceedings, the second stage is not even reached. While the right to represent against the findings in the report is part of the reasonable opportunity available during the first stage of the inquiry viz., before the disciplinary authority takes into consideration the findings in the report, the right to show cause  against the penalty proposed belongs to the second stage when the disciplinary authority has considered the findings in the report and has come to the conclusion with regard to the guilt of the employee and proposes to award penalty on the basis of its conclusions. The first right is the right to prove innocence. The second right is to plead for either no penalty or a lesser penalty although the conclusion regarding the guilt is accepted.
  •          It is the second right exercisable at the second stage which was taken away by the Forty-second Amendment. The second stage consists of the issuance of the notice to show cause against the proposed penalty and of considering the reply to the notice and deciding upon the penalty. What is dispensed with is the opportunity of making representation on the penalty proposed and not of opportunity of making representation on the report of the enquiry officer. The latter right was always there. ….. 
  •          Article 311(2) says that the employee shall be given a “reasonable opportunity of being heard in respect of the charges against him”. ….  Hence, when the enquiry officer is not the disciplinary authority, the delinquent employee has a right to receive a copy of the enquiry officer’s report before the disciplinary authority arrives at its conclusions with regard to the guilt or innocence of the employee with regard to the charges leveled against him. That right is a part of the employee’s right to defend himself against the charges leveled against him. A denial of the enquiry officer’s report before the disciplinary authority takes its decision on the charges, is a denial of reasonable opportunity to the employee to prove his innocence and is a breach of the principles of natural justice.”
  • (v) Radhey Shyam Gupta Vs. U.P. State Agro Industries Corporation.[66]It is held in this decision: “34. But in cases where the termination is preceded by an enquiry and evidence is received and findings as to misconduct of a definitive nature are arrived at behind the back of the officer and where on the basis of such a report, the termination order is issued, such an order will be violative of the principles of natural justice inasmuch as the purpose of the enquiry is to find out the truth of the allegations with a view to punish him and not merely to gather evidence for a future regular departmental enquiry. In such cases, the termination is to be treated as based or founded upon misconduct and will be punitive. ….”
  • (vi) Syndicate Bank Vs. Venkatesh Gururao Kurati.[67]It is held: “18. In our view, non-supply of documents on which the enquiry officer does not rely during the course of enquiry does not create any prejudice to the delinquent. It is only those documents, which are relied upon by the enquiry officer to arrive at his conclusion, the non-supply of which would cause prejudice, being violative of principles of natural justice. Even then, the non-supply of those documents prejudice the case of the delinquent officer must be established by the delinquent officer. It is well-settled law that the doctrine of principles of natural justice are not embodied rules. It cannot be put in a strait jacket formula. It depends upon the facts and circumstances of each case. To sustain the allegation of violation of principles of natural justice, one must establish that prejudice has been caused to him for non-observance of principles of natural justice.”

No order can be passed behind the back of a person adversely affecting him; and such an order if passed, is liable to be ignored being not binding on such a party as the same has been passed in violation of the principles of natural justice.[68] Failure to supply the delinquent the documents, on the basis of which charges were framed, along with the charge-sheet, amounts to non observance of natural justice.[69]

Natural Justice: Courts Generally Read-Into the Provisions

Even if the statute does not provide for notice, it is incumbent upon the quasi-judicial authority to issue a notice to the concerned persons disclosing the circumstances under which proceedings are sought to be initiated against them, failing which the conclusion would be that principle of natural justice are violated.[70] Courts generally read into[71] the provisions of the relevant sections a requirement of giving a reasonable opportunity of being heard before an order is made which would have adverse civil consequences for the parties affected.[72]

It is held in C.B. GautamVs. Union of India:

  • “The observance of principles of natural justice is the pragmatic requirement of fair play in action. In our view, therefore, the requirement of an opportunity to show cause being given before an order for purchase by the Central Government is made by an appropriate authority under Section 269 -UD must be read into the provisions of Chapter XX -C. There is nothing in the language of Section 269 -UD or any other provision in the said Chapter which would negate such an opportunity being given. Moreover, if such a requirement were not read into the provisions of the said Chapter, they would be seriously open to challenge on the ground of violations of the provisions of Article 14 on the ground of non-compliance with principles of natural justice.”[73]

Natural Justice: Recognized as part of Article 14

In Union of India Vs. Tulsiram Patel[74]the Supreme Court declared that principles of natural justice have now come to be recognized as being a part of the constitutional guarantee contained in Article 14 of the Constitution.[75]

Hearing: Must be a Genuine Hearing

The Supreme Court, in Maneka Gandhi Vs. Union of India,[76] has held that the person affected must have a reasonable opportunity of being heard and the hearing must be a genuine hearing and not an empty public relations exercise.

Authority has to Apply its Mind

In Ravi Yashwant BhoirVs. Chief Minister[77] the Supreme Court observed: 

  • ”34. In a democratic institution like ours, the incumbent is entitled to hold the office for the term for which he has been elected unless his election is set aside by a prescribed procedure known to law or he is removed by the procedure established under law. The proceedings for removal must satisfy the requirement of natural justice and the decision must show that the authority has applied its mind to the allegations made and the explanation furnished by the elected office-bearer sought to be removed.”

Natural Justice: Requirements Depend Upon the Circumstances

Principles of natural justice are neither treated with absolute rigidity nor as imprisoned in a straight-jacket. It   has   many facets. Sometimes, this doctrine is applied in a broad way, sometimes in a limited or narrow manner.[78]

Applicability and requirements of natural justice depend upon the circumstances of the case [79] and it is not possible to lay down rigid rules as to when the principles of natural justice are to apply; nor as to their scope and extent.  Everything depends on the subject-matter.[80]  Whether an order in violation of natural justice is bad or not is depended on facts and circumstances of each case.[81] Its essence is good consciousness in a given situation; nothing more but nothing less.[82]

In Keshav Mills Co Ltd. Vs. Union of India, AIR 1973  SC 389 it is held:

  • “… We do not think it either feasible or even desirable to lay down any fixed or rigorous yard-stick in this manner. The concept of Natural Justice cannot be put into a straight-jacket. It is futile, therefore, to look for definitions or standards of Natural Justice from various decisions and then try to apply them to the facts of any given case. The only essential point that has to be kept in mind in all cases is that the person concerned should have a reasonable opportunity of presenting his case and that the administrative authority concerned should act fairly, impartially and reasonably…”

Natural Justice: Not Unruly Horse & Doctrine of ‘Straight-Jacket’

Natural justice is not an unruly horse, no lurking landmine, nor a judicial cure-all.It is well settled that natural justice cannot be placed in a straight-jacket; its rules are not embodied and they do vary from case to case and from one fact-situation to another.[83]

It was observed by our Apex Court in Suresh Koshy George Vs. University of Kerala[84] that the rules of natural justice are not embodied rules. What particular rule of natural justice should apply to a given case must depend to a great extent on the facts and circumstances of that case, the framework of the law under which the enquiry is held and the constitution of the Tribunal or body of persons appointed for that purpose. Whenever a complaint is made before a court that some principle of natural justice had been contravened the court has to decide whether the observance of that rule was necessary for a just decision on the facts of that case.

In Chairman, Board of Mining Examination Vs. Ramjee,[85] V.R. Krishna Iyer, J. observed as under:

  • “Natural justice is no unruly horse, no lurking land mine, nor a judicial cure-all. If fairness is shown by the decision-maker to the man proceeded against, the form, features and the fundamentals of such essential processual propriety being conditioned by the facts and circumstances of each situation, no breach of natural justice can be complained of. Unnatural expansion of natural justice without reference to the administrative realities and other factors of a given case, can be exasperating. We can neither be financial nor fanatical but should be flexible yet firm in this jurisdiction. No man shall be hit below the belt – that is the conscience of the matter.”

In Union of India Vs. P K Roy,[86] V. Ramaswami, J. observed:

  • “But the extent and application of the doctrine of natural justice cannot be imprisoned within the straight jacket of a rigid formula. The application of the doctrine depends upon the nature of the jurisdiction conferred on the administrative authority, upon the character of the rights of the persons affected, the scheme and policy of the statute and other relevant circumstances disclosed in the particular case.”

Natural Justice: Principles Undergone a Sea Change

Natural Justice& Principle of ‘No Prejudice’

Denial of natural justice ‘itself causes prejudice’ was the uniformly followed legal concept in early times. It is pointed out in Gulab Babusaheb Bargiri Vs. Executive Engineer, Maharashtra State Electricity Board[87]  that after Maneka Gandhi Vs. Union of India,[88] the principle of natural justice has undergone a sea change.

In PD Agrawal v. State Bank of India[89] the Apex Court observed that the principles of natural justice had undergone a sea change. Relying on State Bank of Patiala v. S.K. Sharma[90] and Rajendra Singh v. State of MP[91] the Court pointed out that principle of law was that some real prejudice must have been caused to the complainant. 

Analysing previous judgments it is observed in State of UP v. Sudhir Kumar Singh[92] that the following are the tests to determine the non-observance of natural justice:

  • “(1) Natural justice is a flexible tool in the hands of the judiciary to reach out in fit cases to remedy injustice. The breach of the audi alteram partem rule cannot by itself, without more, lead to the conclusion that prejudice is thereby caused.
  • (2) Where procedural and/or substantive provisions of law embody the principles of natural justice, their infraction per se does not lead to invalidity of the orders passed. Here again, prejudice must be caused to the litigant, except in the case of a mandatory provision of law which is conceived not only in individual interest, but also in public interest.
  • (3) No prejudice is caused to the person complaining of the breach of natural justice where such person does not dispute the case against him or it. This can happen by reason of estoppel, acquiescence, waiver and by way of non-challenge or non-denial or admission of facts, in cases in which the Court finds on facts that no real prejudice can therefore be said to have been caused to the person complaining of the breach of natural justice.
  • (4) In cases where facts can be stated to be admitted or indisputable, and only one conclusion is possible, the Court does not pass futile orders of setting aside or remand when there is, in fact, no prejudice caused. This conclusion must be drawn by the Court on an appraisal of the facts of a case, and not by the authority who denies natural justice to a person.
  • (5) The “prejudice” exception must be more than a mere apprehension or even a reasonable suspicion of a litigant. It should exist as a matter of fact, or be based upon a definite inference of likelihood of prejudice flowing from the non-observance of natural justice.”

PD AgrawalVs. State Bank[93] of India speaks as under:

  • “The principles of natural justice cannot be put in a straight jacket formula. It must be seen in circumstantial flexibility. It has separate facets. It has in recent time also undergone a sea change.
  • … In Ajit Kumar Nag vs. General Manager (PJ), Indian Oil Corpn. Ltd., Haldia,[94] a Three Judge Bench of this Court opined: “We are aware of the normal rule that a person must have a fair trial and a fair appeal and he cannot be asked to be satisfied with an unfair trial and a fair appeal. We are also conscious of the general principle that pre-decisional hearing is better and should always be preferred to post-decisional hearing. We are further aware that it has been stated that apart from Laws of Men, Laws of God also observe the rule of audi alteram partem. It has been stated that the first hearing in human history was given in the Garden of Eden. God did not pass sentence upon Adam and Eve before giving an opportunity to show cause as to why they had eaten the forbidden fruit. (See R. v. University of Cambridge) But we are also aware that the principles of natural justice are not rigid or immutable and hence they cannot be imprisoned in a straitjacket. They must yield to and change with exigencies of situations. They must be confined within their limits and cannot be allowed to run wild. It has been stated: ‘To do a great right after all, it is permissible sometimes to do a little wrong.’ [Per Mukharji, C.J. in Charan Lal Sahu v. Union of India (Bhopal Gas Disaster),[95] SCC p. 705, para 124.] While interpreting legal provisions, a court of law cannot be unmindful of the hard realities of life. In our opinion, the approach of the Court in dealing with such cases should be pragmatic rather than pedantic, realistic rather than doctrinaire, functional rather than formal and practical rather than ‘precedential’.
  • …Decision of this Court in S.L. Kapoor vs. Jagmohan  [(1980) 4 SCC 379], whereupon Mr. Rao placed strong reliance to contend that non-observance of principle of natural justice itself causes prejudice or the same should not be read “as it causes difficulty of prejudice”, cannot be said to be applicable in the instant case. The principles of natural justice, as noticed hereinbefore, has undergone a sea change. In view of the decision of this Court in State Bank of Patiala & Ors.vs. S.K. Sharma [(1996) 3 SCC 364] and Rajendra Singh vs. State of M.P. [(1996) 5 SCC 460], the principle of law is that some real prejudice must have been caused to the complainant. The Court has shifted from its earlier concept that even a small violation shall result in the order being rendered a nullity. To the principal doctrine of audialterempartem, a clear distinction has been laid down between the cases where there was no hearing at all and the cases where there was mere technical infringement of the principal. The Court applies the principles of natural justice having regard to the fact situation obtaining in each case. It is not applied in a vacuum without reference to the relevant facts and circumstances of the case. It is no unruly horse. It cannot be put in a straightjacket formula. [See VivekaNandSethi vs. Chairman, J. & K. Bank Ltd. & Ots. (2005) 5 SCC 337 and State of U.P. vs. Neeraj Awasthi & Ors.JT 2006 (1) SC 19. See also Mohd. Sartaj vs. State of U.P. (2006) 1 SCALE 265.]”

In Managing Director ECIL Hyderabad Vs. B Karunakar II[96] it is held:

  • “The next question to be answered is what is the effect on the order of punishment when the report of the enquiry officer is not furnished to the employee and what relief should be granted to him in such cases. The answer to this question has to be relative to the punishment awarded. When the employee is dismissed or removed from service and the inquiry is set aside because the report is not furnished to him, in some cases the non-furnishing of the report may have prejudiced him gravely while in other cases it may have made no difference to the ultimate punishment awarded to him. Hence to direct reinstatement of the employee with back-wages in all cases is to reduce the rules of justice to a mechanical ritual. The theory of reasonable opportunity and the principles of natural justice have been evolved to uphold the rule of law and to assist the individual to vindicate his just rights. They are not incantations to be invoked nor rites to be performed on all and sundry occasions. Whether in fact, prejudice has been caused to the employee or not on account of the denial to him of the report, has to be considered on the facts and circumstances of each case. Where, therefore, even after the furnishing of the report, no different consequence would have followed, it would be a perversion of justice to permit the employee to resume duty and to get all the consequential benefits. It amounts to rewarding the dishonest and the guilty and thus to stretching the concept of justice to illogical and exasperating limits. It amounts to an “unnatural expansion of natural justice” which in itself is antithetical to justice.”
  • “Hence, in all cases where the enquiry officer’s report is not furnished to the delinquent employee in the disciplinary proceedings, the Courts and Tribunals should cause the copy of the report to be furnished to the aggrieved employee if he has not already secured it before coming to the Court/ Tribunal and given the employee an opportunity to show how his or her case was prejudiced because of the non-supply of the report. If after hearing the parties, the Court/Tribunal comes to the conclusion that the non-supply of the report would have made no difference to the ultimate findings and the punishment given, the Court/Tribunal should not interfere with the order of punishment. The Court/ Tribunal should not mechanically set aside the order of punishment on the ground that the report was not furnished as it regrettably being done at present. The courts should avoid resorting to short cuts. Since it is the Courts/Tribunals which will apply their judicial mind to the question and give their reasons for setting aside or not setting aside the order of punishment, (and not any internal appellate or revisional authority), there would be neither a breach of the principles of natural justice nor a denial of the reasonable opportunity. It is only if the Court/Tribunal finds that the furnishing of the report would have made a difference to the result in the case that it should set aside the order of punishment.”

The Supreme Court has, in Uma Nath Pandey Vs. State of UP,[97] held as follows:

  • “The crucial question that remains to be adjudicated is whether principles of natural justice have been violated and if so, to what extent any prejudice has been caused, it may be noted at this juncture that in some cases it has been observed that where grant of opportunity in terms of principles of natural justice do not improve the situation, ‘useless formality theory’ can be pressed into service.”

It is further held in this decision as under: 

  • “8. Natural justice is another name for common sense justice. Rules of natural justice are not codified canons. But they are principles ingrained into the conscience of man. Natural justice is the administration of justice in a common sense liberal way. Justice is based substantially on natural ideals and human values. The administration of justice is to be freed from the narrow and restricted considerations which are usually associated with a formulated law involving linguistic technicalities and grammatical niceties. It is the substance of justice which has to determine its form.
  • 9. The expressions ‘natural justice’ and ‘legal justice’ do not present a watertight classification, It is the substance of justice which is to be secured by both, and whenever legal justice fails to achieve this solemn purpose, natural justice is called in aid of legal justice. Natural justice relieves legal justice from unnecessary technicality, grammatical pedantry or logical prevarication. It supplies the omissions of a formulated law. As Lord Buckmaster said, no form or procedure should ever be permitted to exclude the presentation of a litigant’s defense.
  • 10. The adherence to principles of natural justice as recognised by all civilised States is of supreme importance when a quasi-judicial body embarks on determining disputes between the parties, or any administrative action involving civil consequences; is in issue. These principles are well settled. The first and foremost principle is what is commonly known as audi alteram partem rule. It says that no one should be condemned unheard. Notice is the first limb of this principle. It must be precise and unambiguous. It should apprise the party determinatively of the case he has to meet. Time given for the purpose should be adequate so as to enable him to make his representation. In the absence of a notice of the kind and such reasonable opportunity, the order passed becomes wholly vitiated. Thus, it is but essential that a party should be put on notice of the case before any adverse order is passed against him. This is one of the most important principles of natural justice. It is after all an approved rule of fair play. The concept has gained significance and shades with time. When the historic document was made at Runnymede in 1215, the first statutory recognition of this principle found its way into the ‘Magna Carta’. The classic exposition of Sir Edward Coke of natural justice requires to ‘vocate, interrogate and adjudicate’. In the celebrated case of Cooper v. Wandsworth Board of Works the principle was thus stated: ‘(E)ven God himself did not pass sentence upon Adam before he was called upon to make his defense. “Adam” (says God), “Where art thou? Hast thou not eaten of, the tree whereof I commanded thee that thou shouldest not eat?”

In Dharampal Satyapal Ltd Vs. Deputy Commissioner of Central Excise, Gauhati[98] our Apex Court held:

  • “Even if it is found by the Court that there is a violation of principles of natural justice, the Courts have held that it may not be necessary to strike down the action and refer the matter back to the authorities to take fresh decision after complying with the procedural requirement in those cases where non-grant of hearing has not caused any prejudice to the person against whom the action is taken. Therefore, every violation of a facet of natural justice may not lead to the conclusion that order passed is always null and void. The validity of the order has to be decided on the touchstone of ‘prejudice’. The ultimate test is always the same, viz., the test of prejudice or the test of fair hearing.”

But, in this decision our Apex Court held that the administrative authority cannot jump over the compliance of the principles of natural justice on the ground that even if hearing had been provided it would have served no useful purpose and dispense with the requirement of issuing notice by itself deciding that no prejudice will be caused to the person against whom the action is contemplated.

  • “At the same time”, our Apex Court pointed out “it cannot be denied that as far as Courts are concerned, they are empowered to consider as to whether any purpose would be served in remanding the case keeping in mind whether any prejudice is caused to the person against whom the action is taken.”

In A.S. Motors Pvt. Ltd Vs. Union of India[99] our Apex court observed:

  • “What the Courts in essence look for in every case where violation of the principles of natural justice is alleged is whether the affected party was given reasonable opportunity to present its case and whether the administrative authority had acted fairly, impartially and reasonably. The doctrine of audi alteram partem is thus aimed at striking at arbitrariness and want of fair play. Judicial pronouncements on the subject have, therefore, recognised that the demands of natural justice may be different in different situations depending upon not only the facts and circumstances of each case but also on the powers and composition of the Tribunal and the rules and regulations under which it functions. A Court examining a complaint on violation of rules of natural justice is entitled to see whether the aggrieved party had indeed suffered any prejudice on account of such violation”.

Compliance of Substantive and Procedural Provisions

It is observed in KL KatyalVs. Central Secretariat Club (RC Lahoti, J.)[100]that the court may not interfere except in a clear case of violation of the provisions of the constitution or of the principles of natural justice.

In State Bank of India at Patialia Vs. SK Sharma[101]  it is held:

  • “(1) An order passed imposing a punishment on an employee consequent upon a disciplinary/departmental enquiry in violation of the rules/ regulations/ statutory provisions governing such enquiries should not be set aside automatically. The Court or the Tribunal should enquire whether (a) the provision violated is of a substantive nature or (b) whether it is procedural in character.”

The court held further:

  • “(2) A substantive provision has normally to be compliedwith as explained hereinbefore and the theory of substantial compliance of the test of prejudice would not be applicable in such a case.
  • (3) In case of violation of a procedural provision, the position is this: procedural provisions are generally meant for affording a reasonable and adequate opportunity to the delinquent officer/ employee. They are, generally speaking, conceived in his interest. Violation of any and every procedural provision cannot be said to automatically vitiate the enquiry held or order passed. Except cases falling under -“no notice”, “no opportunity” and “no hearing” categories, the complaint of violation of procedural provision should be examined from the point of view of prejudice, viz. whether such violation has prejudiced the delinquent officer employee in defending himself properly and effectively. If it is found that he has been so prejudiced, appropriate orders have to be made to repair and remedy the prejudice including setting aside the enquiry and/ or the order of punishment. If no prejudice is established to have resulted therefrom, it is obvious, no interference is called for. In this connection, it may be remembered that there may be certain procedural provisions which are of a fundamental character, whose violation is by itself proof of prejudice in such cases. As explained in the body of the judgment, take a case where there is a provision expressly providing that after the evidence of the employer/ government is over, the employee shall be given an opportunity to lead defense in his evidence, in a case, the enquiry officer does not give that opportunity in spite of the delinquent officer/ employee asking for it. The prejudice is self-evident. No proof of prejudice, i.e., whether the person has received a fair hearing considering all things. Now, this very aspect can also be looked at from the point of view of directory and mandatory provisions, if one is so inclined. The principle stated under (4) hereinbelow is only another way of looking at the same aspect as is dealt with herein and not a different or distinct principle.
  •  (4)(a) In the case of a procedural provision which is not of a mandatory character, the complaint of violation has to be examined from the standpoint of substantial compliance. Be that as it may, the order passed in violation of such a provision can be set aside only where such violation has occasioned prejudice to the delinquent employee.
  • (b) In the case of violation of a procedural provision, which is of a mandatory character, it has to be ascertained whether the provision is conceived in the interest of the persons proceeded against or in public interest. If it is found to be the former, then it must be seen whether the delinquent officer has waived the said requirement either expressly or by his conduct. If he is found to have waived it, then the order of punishment cannot be set aside on the ground of the said violation. If, on the other hand, it is found that the delinquent officer/ employee has not waived it or that the provision could not be waived by him, then the Court or Tribunal should make appropriate directions (include the setting aside of the order of punishment), keeping in mind the appropriate adopted by the Constitution Bench in B. Karunakar. The ultimate test is always the same, viz., test of prejudice or the test of fair hearing, as it may be called.
  • (5) Where the enquiry is not governed by any rules/ regulations/ statutory provisions and the only obligation is to observe the principles of natural justice or, for that matter, wherever such principles are held to be implied by the very nature and impact of the order/ action – the Court or the Tribunal should make a distinction between a total violation of natural justice (rule of audialteram pattern) and violation of a facet of the said rule, as explained in the body of the judgment. In other words, a distinction must be made between “no opportunity” and no adequate opportunity, i.e., between “no notice”/ “no hearing” and “no fair hearing”, (a) In the case of former, the order passed would undoubtedly be invalid (one may call it ‘void’ or a nullity if one chooses to). In such cases, normally, liberty will be reserved for the Authority to take proceedings afresh according to law, i.e., in accordance with the said rule (audi alteram partem). (b) But in the later cases, the effect of violation (of a facet of the rule of audi alteram partem) has to be examined from the standpoint of prejudice; in other words, what the Court or Tribunal has to see is whether in the totality of the circumstances, the delinquent officer/ employee did or did not have a fair hearing and the orders to be made shall depend upon the answer to the said query. (It is made clear that this principle (No. 5) does not apply in the case of rule against bias, the test in which behalf are laid down elsewhere.)
  • (6) While applying the rule of audi alteram partem (the primary principle of natural justice) the Court/ tribunal/authority must always bear in the ultimate and overriding objective underlying the said rule, viz., to ensure a fair hearing and to ensure that there is no failure of justice. It is this objective which should guide them in applying the rule to varying situations that arise before them.
  • (7) There may be situations where the interests of State or public interest may call for a curtailing of the rule of audi alteram partem. In such situations, the court may have to balance public/ State interest with the requirement of natural justice and arrive at an appropriate decision.”

Natural Justice:  Laxity in Disciplinary Action

In HiraNath Mishra Vs. The Principal, Rajendra Medical College, Ranchi[102] the Supreme Court examined the application of principles of natural justice in the context of an order that was passed by the Principal of a College expelling certain male students against whom grave misbehaviour towards the girls had been alleged. The Enquiry Committee had not recorded the statements of the girl students in the presence of the male students. After making necessary enquiry, the Committee found that the male students were guilty of misconduct and recommended that they should be expelled. Acting on this report, the Principal passed the order of expulsion. The Supreme Court held that in such circumstances, the requirement of natural justice was fulfilled.

In Avinash NagraVs. Novodaya Vidyalaya Samiti[103]  also the Supreme Court upheld dispensing with a regular enquiry in the matter of misbehaviour of a teacher against a girl student and observed that the denial of cross-examination did not vitiate the enquiry on the ground of violation of principles of natural justice.

Natural Justice:  Laxity in Disciplinary Action of a Voluntary Association

The executive committee of a voluntary association cannot be put on par with a Court or a Tribunal when dealing with the disciplinary matters concerning the membership of the Body. They have very wide latitude in deciding as to when disciplinary action is warranted. The procedure to be followed by such an association also cannot be that which is normally expected to be followed in a Court, or a Tribunal. Even principles of natural justice are not required to be applied with the same degree of rigour as they would be in the case of adjudication before a Court or a Tribunal.[104]

In Daman Singh Vs. State of Punjab and Haryana[105] it is observed:

  • “So if the statute which authorises compulsory amalgamation of Co-operative Societies provides for notice to the societies concerned, the requirement of natural justice is fully satisfied. The notice to the society will be deemed as notice to all its members. That is why S. 13(9)(a) provides for the issue of notice to the societies and not to individual members. S.13(9)(b), however, provides the members also with an opportunity to be heard if they desire to be heard. Notice to individual members of a Co-operative society, in our opinion, is opposed to the very status of a Co-operative society as a body corporate and is, therefore, unnecessary. We do not consider it necessary to further elaborate the matter except to point out that a member who objects to the proposed amalgamation within the prescribed time is given, by S. 31(11), the option to walk-out, as it were, by withdrawing his share, deposits or loans as the case may be.”

Natural Justice: Laxity in Deptl. Proceedings & Domestic Tribunal

It is well settled law that strict rules of the Evidence Act, and the standard of proof envisaged therein, do not apply to departmental proceedings or domestic tribunal.[106] A domestic tribunal is free to evolve its own procedure.[107]

But in Bareilly Electricity Supply Co. Ltd. Vs. The Workmen,[108] the Supreme Court observed that the application of the principles of natural justice does not imply that what is not evidence can be acted upon. It was pointed out that the minutes of the meeting could not have been relied upon when neither the original was produced nor was any justification put forth for the absence of the signed copy of the original.

Natural Justice: Violation and  Alternate Remedy:

Courts will not delve in the internal disputes of an association unless it is shown[109] that the aggrieved parties have worked out and exhausted[110] their remedies (but, failed to resolve disputes) under the bye laws, before: (a) the machinery or body (domestic tribunals), if any,  provided in its bye laws,[111] or (b) the body or authority which has to take cognizance of the matter, under the scheme of its bye laws, or (c) the authorities under the statute, if any, holds the field.[112] But, the rule of exhaustion of alternate remedy does not apply if there is violation of principle of natural justice,[113] as action in violation of natural justice is void.[114]

In Titaghur Paper Mills Company Ltd. Vs. State of Orissa[115] though the appellant pleaded that there was violation of natural justice and the impugned order was without jurisdiction, the Supreme Court held that the petitioner should avail his alternate remedy of appeal.

In Shaji K. Joseph Vs. V. Viswanath[116] it is held:

  • “In our opinion, the High Court was not right in interfering with the process of election especially when the process of election had started upon publication of the election program on 27th January, 2011 and more particularly when an alternative statutory remedy was available to Respondent No.1 by way of referring the dispute to the Central Government as per the provisions of Section 5 of the Act read with Regulation 20 of the Regulations.”

With respect to election to the office of Chairman of a Panchayat Union under the Tamil Nadu Panchayats Act, 1958 it was held in S.T. MuthusamiVs. K. Natarajan[117]  that election petition is an effective alternative remedy.  Umesh Shivappa AmbiVs. Angadi Shekara Basappa[118] is a case relating to election of the President, Vice – President and Chairman, etc. under the Karnataka Co-operative Societies Act, wherein our Apex Court reversed the judgment with the observation:

  • “Once an election is over, the aggrieved candidate will have to pursue his remedy in accordance with the provisions of law and the High Court will not ordinarily interfere with the elections under Article 226. The High Court will not ordinarily interfere where there is an appropriate or equally efficacious remedy available, particularly in relation to election disputes.”[119]

Natural Justice: Administrative Process & Urgency

The maxim audi alteram partem cannot be invoked if the import of such maxim would have the effect of paralyzing the administrative process or where the need for promptitude or the urgency so demands. In Ajit Kumar Nag v. General Manager (PJ), Indian Oil Corpn. Ltd., Haldia[120] it is held that the approach of the Court in dealing with such cases should be pragmatic rather than pedantic, realistic rather than doctrinaire, functional rather than formal and practical rather than precedential. The concept of natural justice sometimes requires flexibility in the application of the rule.[121]

Natural Justice: Inordinate Delay in Disciplinary Proceedings

Unexplained and unjustifiable long delay in initiating and in conducting departmental disciplinary proceedings will result in causing great prejudice to the person against whom such a proceeding is initiated and it will be a ground for quashing the proceedings.[122]

Right of Appeal: Not an Ingredient of Natural Justice

Right of Appeal is a creation of statute.[123] Right to appeal is neither an absolute right[124] nor an ingredient of natural justice.[125] It must be conferred by statute and can be exercised only as permitted by statute.[126]If the legislature provides for no appeal in a particular case, or provides for an appeal subject to certain conditions, it is a piece of proper legislation. Even if a statute denied right of appeal, the same cannot be said to be a bad legislation.[127]

Charges Should Not be Vague

The charges should be specific, definite and giving details of the incident which formed the basis of charges and no enquiry can be sustained on vague charges.[128] In Surath Chandra Chakravarty Vs. The State of West Bengal[129] our Apex Court held that it is not permissible to hold an enquiry on vague charges, as the same do not give a clear picture to the delinquent to make out an effective defense as he will be unaware of the exact nature of the allegations against him, and what kind of defense he should put up or rebuttal thereof.

The Court observed as under: 

  • “The grounds on which it is proposed to take action have to be reduced to the form of a definite charge or charges which have to be communicated to the person charged together with a statement of the allegations on which each charge is based and any other circumstance which it is proposed to be taken into consideration in passing orders has to be stated. This rule embodies a principle which is one of the specific contents of a reasonable or adequate opportunity for defending oneself. If a person is not told clearly and definitely what the allegations are on which the charges preferred against him are founded, he cannot possibly, by projecting his own imagination, discover all the facts and circumstances that may be in the contemplation of the authorities to be established against him.”[130]

In Sawai Singh Vs. State of Rajasthan[131]our Apex Court found that charges were vague and it was difficult to meet the charges. Therefore although the concerned delinquent had participated in the inquiry, the Court opined that participation by itself does not exonerate the department to bring home the charge.

Civil Court has Jurisdiction when Expulsion in Violation of Natural Justice

Where a member of an association is expelled without observing the principles of natural justice,[132] or where a club had followed a procedure not warranted by the Rules of the Club,[133] the civil court will have the jurisdiction to interfere.[134]

In State of Kerala Vs. M/s N. Ramaswami Iyer and Sons[135] the Supreme Court held:

  • “It is true that even if the jurisdiction of the Civil Court is excluded, where the provisions of the statute have not been complied with or the statutory tribunal has not acted in conformity with the fundamental principles of judicial procedure, the Civil Courts have jurisdiction to examine those cases.”[136]

Halsbury’s Laws of England[137] reads:

  • “Where the rules providing for expulsion have been strictly observed and the Committee or the members have otherwise acted properly, the court has no jurisdiction to interfere even though it considers that the Committee or the members voting for expulsion have, in fact, come to a wrong conclusion. The burden of proving want of good faith lies on the person who alleges that he has been wrongfully expelled.”

Court’s Jurisdiction in Expulsion of a Member from a Political Party

Whether a Civil Court has a jurisdiction to entertain a suit relating to expulsion from membership of a political party, particularly when an appeal against such order of expulsion was pending before the appellate authority was the question came up for consideration in Arunachal Pradesh Congress Committee Vs. Kalikho Pul.[138]  In this case no notice was ever served upon the member giving him an opportunity to defend himself and explain before expelling him from the party. The party could not say about the procedure to be followed by the appellate authority and/or when such appeal was going to be disposed. The court upheld the contentions of the expelled member observing that that the Civil Court had jurisdiction to examine whether the expulsion was in good faith, in conformity with the Constitution and whether notice as required under the Constitution of the Party was served and the established principles of law of natural justice was followed by giving the member a chance of defense and explanation.[139]

Court Does Not Sit in Appeal

It is trite law that the Court does not sit in appeal over the findings of the enquiry officer as observed by our Apex Court, in UP State Road Transport Corpn. Vs. Musai Ram.[140] It is held in Board of Control for Cricket in India Vs. Cricket Association of Bihar:[141]

  • “We are at any rate not sitting in appeal against the findings of a domestic tribunal set up to enquire into the allegations of misconduct leveled against a team official of a participating team. We are not, therefore, reappraising the material that has been assembled by the probe committee and relied upon to support its finding. The finding is by no means without basis or perverse[142] to call for our interference with the same.”

The Supreme Court in TP Daver Vs. Lodge Victoria,[143] held that jurisdiction of courts to interfere in cases involving expulsion of a member from the organization is extremely limited, and the Court’s enquiry is confined to find out whether the decision making is within the four corners of the rules, and the Courts cannot sit in appeal over the decisions of the organization.[144]

In Leo Francis Xaviour Vs. The Principal, Karunya Institute of Technology, Coimbatore[145] it is held as under:

  • “26. As it is found on the facts that there was an enquiry satisfying the requirements of the principles of natural justice, this Court cannot interfere with the finding of the Enquiry Committee and the consequential order of expulsion passed against the petitioner. The plea taken by the first respondent that it is a private college and the jurisdiction of this Court under Article 226 of the Constitution of India cannot be invoked by the petitioner against the said College is well founded. Inasmuch as the principles of natural justice have been complied with, this Court has no jurisdiction to interfere with the order of expulsion passed against the petitioner.”

In Maharashtra State Board of Secondary and Higher Secondary Education Vs. KS Gandhi[146] it is observed that the power of judicial review in case of student indiscipline is very limited and in such cases this Court does not sit in appeal over decisions of the school authorities.[147]

Appointment of Impartial Enquiry Officer

Merely because all the members of a society have participated in the discussion concerning an allegation against a member, the Society can’t be expected to appoint an outsider to hold the disciplinary proceeding, to avoid blame of institutional bias. In Lalit Kumar ModiVs. Board of Control for Cricket in India[148] it was pointed out that it may not be financially possible as well for such small societies. Merely because a member has participated in such a meeting he cannot be accused of bias to disentitle him from being appointed on the Disciplinary Committee, especially when only a prima facie opinion was formed in such meeting.

Ex-communication:

‘Ex-communication’ is defined in Black’s Law Dictionary as ‘a sentence of censure pronounced by one of the spiritual courts for offences falling under the ecclesiastical cognizance. It is described as two-fold: (1) The lesser excommunication, which is an ecclesiastical censure, excluding the party from the sacraments; (2) the greater, which excludes him from the company of all Christians.[149]

Sardar Syedna Taher Saiffuddin Saheb Vs. State of Bombay[150] (1962B P Sinha, CJ., A.K Sarkar, Das Gupta, N. Rajagopala Ayyangar, Mudholkar, J.J.)

  • Note: Sarkar, Das Gupta , Rajagopala Ayyangar were also judges in Durgah Committee, Ajmer Vs. Syed Hussain Ali.

The Bombay Prevention of Excommunication Act, 1949 was challenged in this decision. This Act made act of “ex-communication” illegal under Sec. 3, which reads as under:

  • “3. Notwithstanding anything contained in any law, custom or usage for the time being in force to the contrary, no excommunication of a member of any community shall be valid and shall be of any effect.”

Sec. 4 made excommunication, a punishable offence. The Act was challenged by the head of the Dawoodi Bohras, as:

  • being impinging upon the right of the Dawoodi Bohras to freely practice their religion according to their own faith and practice, a right guaranteed under Articles 25 and 26 of the Constitution.
  • It was contended that the right of the head of the Dawoodi Bohra community to ex-communicate is an essential part of the creed of the Dawoodi Bohra sect as it is a necessary measure of discipline for maintenance of integrity of the community, to hold together the community, so that the community faith, belief and practice can be preserved and hence protected by Article 26(b).

The Supreme Court, by majority (4 : 1), accepted the argument and struck down the Act as violative of Article 26(b) of the Constitution.  It is pointed out in this decision as under:

  • “The content of Arts. 25 and 26 of the Constitution came up for consideration before this Court in:
    • The Commissioner, Hindu Religious Endowments Madras Vs. Sri Lakshmindra Thirtha Swamiar of Sri Shirur Matt;
    • Mahant Jagannath Ramanuj Das Vs. The State of Orissa;
    • Sri Venkatamana Devaru Vs. The State of Mysore;
    • Durgah Committee, Ajmer Vs. Syed Hussain Ali and several other cases
  • and the main principlesunderlying these provisions have by these decisions been placed beyond controversy.
    • The first is that the protection of these articles is not limited to matters of doctrine or belief, they extend also to acts done in pursuance of religion and therefore contain a guarantee for rituals and observances, ceremonies and modes of worship which are integral parts of religion.
    • The second is that what constitutes an essential part of a religious or religious practice has to be decided by the courts with reference to the doctrine of a particular religion and include practices which are regarded by the community as a part of its religion.

In this decision the Constitution Bench of our Apex Court:

  • observed that the exercise of the power of ex-communication by the religious head on religious ground form part of the management of its affairs in matters of religion and
  • held that it was difficult to agree that court was not a forum for vindication of such right. [151]

While considering the question whether the ex-communication of the Catholicos by the Patriarch of Antioch was valid, in Most Rev. P.M.A. Metropolitan Vs. Moran Mar Marthoma,[152] Sahai, J. observed that two questions arose: one, the jurisdiction of the civil court to examine ex-communication; and second, whether the ex-communication was in accordance with law.

RM  Sahai, J. further held as under:

  • “Taking up the first question as to whether the civil courts are competent to decide on the validity of the excommunication, the answer, in this connection, has been given while deciding the objection of maintainability of the suit under Section 9 Civil Procedure Code. Yet it would not be inappropriate to mention how far the protection of a civil court extends regarding the ecclesiastical matters. The law has been explained in paras 315, 332 and 337 of Halsbury’s Laws of England, Vol. 14. A church is formed by the voluntary association of individuals. And the churches in the commonwealth are voluntary body organised on a consensual basis their rights apart from statutes will be protected by the courts and their discipline enforced exactly as in the case of any other voluntary body whose existence is legally recognised. Therefore, all religious bodies are regarded by courts of law in the same position in respect of the protection of their rights and the sanction given to their respective organisations. It is further settled that discipline of a church cannot affect any person except by express sanction of the civil power or by the voluntary submission of the particular person. But, for purposes of enforcing discipline within a church religious body may constitute a tribunal to determine whether its rules have been violated by any other members or not and what will be the consequence of that violation. In such case the tribunals so constituted are not in any sense courts, they derive no authority from the statutes and they have no power of their own to enforce their sentence. Their decisions are given effect to by the courts as decision of the arbitrators whose jurisdiction rests entirely on the agreement of the parties. Consequently if any member of such body has been injured as to his rights in any matter of mixed spiritual and temporal character the courts of law will, on due complaint being made, inquire into the laws and rules of the tribunal or authority which has inflicted the injury and will ascertain whether any sentence pronounced was regularly pronounced by competent authority, and will give such redress as justice demands. See Long, Dame and Anadrav. In Hasanali  Vs. Mansoorali, it was held that a court of law cannot recognise a purported ex-communication as valid if principles of substantial justice have not been complied with.”

Proof in Disciplinary Action

The Supreme Court has, in Union of India Vs. Gyan Chand Chattar,[153] held that serious charges of corruption against the employees are to be proved to the hilt, as it brings civil and criminal consequences upon them. It was held that such serious charges can’t be proved on the basis of mere probabilities. The Court held that disciplinary inquiry must strictly adhere to the statutory provisions and the principles of natural justice and inquiry must be conducted fairly and finding should not be perverse[154] or unreasonable and suspicion can’t take the place of proof.

A Constitution Bench of our Apex Court in State of Orissa Vs. Bidyabhushan Mohapatra[155]  held that having regard to the gravity of the established misconduct, the punishing authority had the power and jurisdiction to impose punishment. The penalty was not open to review by the High Court under Article 226. If the High Court reached a finding that there was some evidence[156] to reach the conclusion, it became unassessable.

Regional Manager, U.P.S.R. T.C.,Etawah Vs. Hoti Lal[157]the Supreme Court held that the court, while exercising the power of judicial review cannot substitute its own conclusions on the penalty imposed on the employee, by imposing some other penalty. If the punishment imposed on the employee shocks the conscience of the Court it can mould the relief by directing the disciplinary authority to reconsider the penalty imposed.[158]

Misconduct in Labour Cases

In Pearce Vs. Foster (QBD) it is held:

  • “If a servant conducts himself in a way inconsistent with the faithful discharge of his duty in the service, it is misconduct which justifies immediate dismissal. That misconduct, according to my view, need not be misconduct in the carrying on of the service of the business. It is sufficient if it is conduct which is prejudicial or is likely to be prejudicial to the interests or to the reputation of the master, and the master will be justified, not only if he discovers it at the time, but also if he discovers it afterwards, in dismissing that servant.”

The assessment of evidence in a domestic enquiry is not required to be made by applying the same yardstick as a Civil Court could do when a lis is brought before it. The Indian Evidence Act is not applicable to the proceeding in a domestic enquiry so far as the domestic enquiries are concerned, though principles of fairness are to apply. It is also fairly well settled that in a domestic enquiry guilt may not be established beyond reasonable doubt and the proof of misconduct would be sufficient. In a domestic enquiry all materials which are logically probative including hearsay evidence can be acted upon provided it has a reasonable nexus and credibility.[159] Confessional evidence and circumstantial evidence, despite lack of any direct evidence, was sufficient to hold the delinquent guilty of misconduct and to justify the termination.[160]

The principles generally apply to erring office bearers and members of societies also.

Court Scrutinises Acts of Trustees

Generally, superior authorities and authorities with supervisory powers will have disciplinary jurisdiction over those who are appointed or supervised; and normally, trustees may not have such superior authorities and authorities with supervisory powers. Therefore, in the matters of public trusts, the beneficiaries, or other persons who have a right to complain, can approach the civil court, invoking Sec. 92 CPC or otherwise.

No Action against Trustees, if Bona Fide Act

Actiontaken bona fide, though it is a mistaken one, will not lead to take action on breach of trust.[161] There must be gross negligence or misconduct for removal of trustees. Want of capacity or of fidelity which is calculated to put the trust in jeopardy will be actionable. But, failure in the discharge of duty on account of mistake or misunderstanding is not a ground for removal unless such failure shows want of capacity to manage the trust.[162] It is legitimate to bring-in these principles into the acts and duties of the office-bearers of a society or a club also.

Degree of Prudence Expected

It was observed in Jagat Narain Vs. Mathura Das[163] that the degree of prudence expected from a manager of an endowment would be the prudence which an ordinary man would exercise with the knowledge available to him and the transaction would have to be judged not by the result, but by what might have been expected to be its results at the time it was entered into.

While considering the sale of an old house by the manager of a temple, which was not in a dilapidated condition but it required extensive repairs, it was held in BehariLal Vs. Thakur Radha Ballabhji[164] that the sale was neither a prudent act nor it was for the benefit of the estate. In K.P.L.S. Palaniappa Chetty Vs. Shreenath Devasikamony Pandara Sannadhi[165]  it was laid down that a Shebait would not be justified in selling debutter land solely for the purpose of getting capital to embark in the money lending business. Mulla’s Hindu Law reads:

  • “He (Shebait) is not entitled to sell the property for the purpose of investing the price of it so as to bring in an income larger than that derived from the property itself.”[166]

Jurisdiction of Courts in Removal of Persons Holding Office

If obligations not faithfully discharged

If there is a breach of trust or mismanagement on the part of the trustee, a suit can be brought in a Civil Court by any person interested for the removal of the trustee and for the proper administration of the endowment.[167]

In Raja Peary Mohan MukerjiVs. MonoharMukerji,[168] the Privy Council observed:

  • “… As a part of office it is indisputable that there are duties which must be performed, the estate does need to be safeguarded and kept in proper custody and it be found that a man in the exercise of his duties has put himself in a position in which the Court thinks that the obligations of his office can no longer be faithfully discharged that is sufficient ground for his removal.”[169]

It is appropriate to say that these principles relating to trust[170] fully apply to the affairs of the societies and clubs also. It is trite law that if a trustee denies the validity of the trust, that by itself is sufficient to remove him from the trusteeship.

Breach of Bye-law or Mismanagement Entails removal

The members of a club or society, both registered and unregistered, are bound by the memorandum of association and its rules and regulations. The bye laws bind its members as a contract.[171] When a person becomes a member of the society, he would have no independent rights, and lose his individuality[172] qua the society except those that are given to him by the statutes concerned and bye laws;[173] and the rights of members merge in the rights of the society.[174]

In State of U.P. Vs. COD Chheoki Employees’ Co-op. Society[175] it is held:

  • “Thus, it is settled law that no citizen has a fundamental right under Article 19(1)(c) to become a member of a Cooperative Society. His right is governed by the provisions of the statute. So, the right to become or to continue being a member of the society is a statutory right. On fulfillment of the qualifications prescribed to become a member and for being a member of the society and on admission, he becomes a member. His being a member of the society is subject to the operation of the Act, Rules and bye-laws applicable from time to time. A member of the society has no independent right qua the society and it is the society that is entitled to represent as the corporate aggregate. No individual member is entitled to assail the constitutionality of the provisions of the Act, Rules and the bye-laws as he has his right under the Act, Rules and the bye-laws and is subject to its operation. The stream cannot rise higher than the source.”

Nevertheless, any breach of a bye-law would not result into automatic cessation of membership but the procedure for removal or expulsion from membership would be required to be followed even in case of breach of bye-laws of a society.[176]

Trustees Actuated by Dishonest and Corrupt Motives

The principles apply to office bearers of societies also.

In Managing Committee of SS Endowment Vs. Mohd.Ahsan[177] the Oudh Court held that the test which must be applied is whether the acts or omissions complained of disclose conditions which render intervention necessary in order to save the trust property. The court also said that it is to be seen whether such state of affairs was brought about deliberately or willfully and whether the trustees were actuated by dishonest and corrupt motives.

Misconduct or negligence

In S. Veeraraghava Achariar Vs. V. Parthasaruthy Iyengaar[178] it was held that once a person accepts an office of trusteeship the motive for all his actions should be the interest of the institution and that alone. Even though the evidence in a case against the trustees may not be sufficient to warrant, generally speaking, their removal from office on the ground of misconduct or negligence, still their removal may be ordered, if, in the opinion of the court, such removal is necessary in the interests of the trust to be administered.

Claim of Adverse Title by a Trustee

Apart from Section 116 Evidence Act, a Shebait or Mutawalli is not permitted to make any adverse assertion of title upon a property of the temple or wakf, he holds.

Assertion of Private Ownership

Betrayal of fiduciary position of a trustee entails his removal. In Srinivas Chariar Vs. CN Evalappa Mudaliar[179] the Judicial Committee held that an assertion to private ownership[180] was enough ground for removal of a trustee. It was also said that it was not open to the court on any sound principles, either of administration or of law, to permit the continuance of the trustee in the office in such a case.

If Trustees have Interest Adverse to Beneficiaries

Trustees become disqualified if they have any interest adverse to that of the beneficiaries. In Avanthi Explosives Vs. Principal Subordinate Judge Tirupathi[181] Andhra Pradesh High Court has held that the obligation of a director to disclose his interest in a contract entered into or to be entered into is an obligation similar to that of a trustee and directors are in the position of trustees according to common law and they have a fiduciary relation towards the shareholders.

In Narayandas Vs. Sangli Bank[182] it was held by our Apex Court that a director of a company stood in a fiduciary position towards the Company and was bound to protect its interest. He must not place himself in a position in which his personal interest conflicts with his duty.

District Courts’ Jurisdiction under S R Act, Limited[183]

First proviso of Sec. 13, Societies Registration Act, 1880, lays down that in the event of any dispute arising among the governing body or the members of the society while in its dissolution, the adjustment of its affairs shall be referred to the principal court of original civil jurisdiction of the district in which the chief building of the society is situate; and the court shall make such order in the matter as it shall deem requisite.

Several State (Societies Registration) Acts/Amendmentsprovide for a specific forum – District Court – as the authority to entertain and try suits or applications for certain specific matters as to the administration of the societies. But, generally, restricted or limited jurisdiction alone is conferred to such forum under those Acts/ Amendments.

The reliefs outside the purview of these provisions can be validly raised in a proper Civil Court;[184]as otherwise, arbitrary and inequitable results will be brought-in and it will leave the aggrieved persons without any remedy at all, in respect of matters which are not specifically provided for in these provisions.[185]

In R. R. Rajendra Menon Vs. Cochin Stock Exchange Ltd.[186] it is observed:

  • “No provision in the Act has been brought to our notice as specifying expressly or impliedly that an application to compel a company to comply with the requirements in S. 257 will lie in the company court. The Act specifies certain questions or disputes to be resolved by the Central government, certain others by the Company Law Board and certain matters to be dealt with by the company court. Only such matters as are specified in the Act or in the rules to be dealt with by the court could the company court deal with. The jurisdiction of the ordinary civil court can be regarded as impliedly barred in respect of those matters specified in the Act to be dealt with by the court. It cannot be held that the jurisdiction of the Civil Court in respect of all other matters relating to a company is barred. The corollary is that, unless a particular matter is specified in the Act to be dealt with by the company-court, it cannot exercise jurisdiction merely because it is also a matter which relates to a company.”

Court Examines Reasons or Grounds of Supersession of Societies

While dealing with CP and Berar Municipalities Act, it is held by the Full Bench in Municipal Commissioner, Kareli Vs. State of MP[187] that the Court has power to examine the sufficiency of reasons. It was observed:

  • “In a democratic society it is of the essence that democratic institutions are allowed to function and not superseded on trumpery charges inadequately brought home or unreasonably accepted. The Courts will be vigilant to see that such over-reaching powers are kept within the four corners of the statute granting them. We think that the fact that a reasonable opportunity to show cause has been made a condition precedent to the exercise of the power and that reasons for the supersession have to be notified to the electorate shows that there is not to be a subjective appraisal but that the reasons must be sufficient under the Act and an objective test is indicated. The requirements of the law are not satisfied by accepting insufficient or inadequate reasons for supersession. We think that the Courts are at liberty to examine the reasons for this limited purpose in addition to the purposes which the learned Judges of the earlier Division Bench (Mangalmurti and Mudholkar JJ.) have already indicated in their order.”

Section 33 of the M.P. Societies Registrikaran Adhiniyam, 1973 speaks of supersession[188] of the Governing Body by the State Government by removing the governing body and appointing a person or persons to manage the affairs of the society for a specified period not exceeding two years in the first instance. It is held in Suresh Vs. State of MP[189] that the power of supersession was not an administrative power but was a quasi-judicial in nature.

In Indian National Congress Vs. Institute of Social Welfare[190] it is observed by the Supreme Court, when it considered as to what constitutes exercise of quasi judicial power, as under:

  • “24. The legal principles laying down when an act of a statutory authority would be a quasi-judicial act, which emerge from the aforestated decisions are these: Where (a) a statutory authority empowered under a statute to do any act (b) which would prejudicially affect the subject (c) although there is no lis or two contending parties and the contest is between the authority and subject and (d) the statutory authority is required to act judicially under statute, the decision of the said authority is quasi-judicial.”

Defaulting Members Are Not Entitled For Any Notice

In Adv. Babasaheb Wasade v. Manohar Gangadhar Muddeshwar (Vikram Nath and Justice Ahsanuddin Amanullah, JJ.), AIR 2024 SC 768, our Apex Court held that defaulting members of a society are not entitled to get notice for meeting of election, under Section 15 of the Societies Registration Act, 1860, even if their membership was not terminated or ceased. It is held as under:

  • “Section 15 of the Registration Act would disentitle such defaulting members from being given any notice even if their membership was not terminated or ceased.”

Mere Non-Payment of Subscription: Not Amount to Resignation

While considering Section 2 (b) of the Karnataka Societies Registration Act (similar provision to Sec. 15 of the Societies Registration Act), High Court of Karnataka, in Lingappa Police Patil Vs. Registrar of Societies,[191] referred to dictionary meaning of ‘resignation’ and Supreme Court decisions[192] and held:

  • “In view of what we have noted hereinabove, it cannot be said that mere non-payment of the subscription would amount to resignation within the meaning of Section 2 (b) of the Act.
  • Nonpayment of subscription would also not amount to relinquishment of membership, unless a person is afforded a specific opportunity of making payment by calling upon him to pay the arrears or face the consequences.”

It is also held that the Rule of the Society which declared a person would cease to be a member merely on his default to make the subscription, without even providing him an opportunity to show cause for not making the payment within a specified period appeared “to be very harsh” and that “confiscatory and deprivatory provisions made, resulting in civil consequences, should not have been allowed” to be incorporated in the bye laws.It is on the principle that rules of natural justice require that that no person can be condemned unheard[193]

The Division Bench struck down the impugned Rule it being contrary to the provisions of the Act.

No expulsion for arrears  if no notice

The rules of natural justice requires notice calling upon a member of a society to pay the arrears, before he be expelled for nonpayment.[194]

Office-Bearer of a Co-Op Society Can be Removed by No-Confidence Motion

In Vipulbhai M. Chaudhary Vs. Gujarat Co-operative Milk Marketing Federation Limited,[195] Chairperson of a Co-operative Society was removed from the office through a ‘no confidence motion’ by the Director Board. Power is vested in the General Body to remove the entire committee by passing a vote of no-confidence. To the question whether, in the absence of a specific provision for removal of the Chairperson/ elected-office-bearer by ‘no-confidence’ in the Act, Rules or even Bye-laws of a Co-operative Society, the Chairperson or the elected-office-bearer can be removed by a motion of no-confidence, our Apex Court held that Ninety Seventh Amendment of our Constitution, provided constitutional status to the Co-operative Societies and it has brought out radical changes in the concept of Co-operative Societies – including the concept as to ‘collective responsibility to the Parliament, or Legislative Assembly itself implies that the Council of Ministers shall be liable to be dismissed if it ceases to enjoy the confidence of the House.’

Democratic functioning and autonomy have now become the core constitutional values of a Co-operative Society. In the background of the constitutional mandate,the question is not what the statute does say but what the statute must say. If the Act or the Rules or the Bye-laws do not say, what they should say in terms of the Constitution, it is the duty of the court to read the Constitutional spirit and concept into the Acts. Applying the Constitutional spirit, our Apex Court held that removal of the Chairperson from the office through the ‘no confidence motion’ was valid.

Office-Bearer of a Society or a Club: Removal by Motion of No-confidence

Sans the constitutional mandate with respect to Co-operative Societies, as mentioned above, it has to be stated that, without an express power in the Act or bylaw, an elected-office-bearer of a society or club cannot be removed by a motion of noconfidence of the managing committee which elected that office-bearer.

Before the decision of the Supreme Court stated above, Kerala High Court   in S Lakshmanan Vs. V Velliankeri,[196]relying on Sec. 16 of the General Clauses Act, (It lays down that when a power to make any appointment is conferred by a statute, then, unless a contrary intention appears, the authority having such power of making the appointment shall also have the power to suspend or dismiss any person so appointed whether by itself  or by any other authority in exercise of such power.) and considering the following arguments, it was heldthat the Chairperson or the electedofficebearer of a Co-operative Society cannot be removed by a motion of noconfidence:

  • (i)   Passing of a no-confidence resolution was not a matter of day to day affairs of the society, and it was a matter of great importance; and therefore, could not be the subject matter of an implied power or procedure of passing of an ordinary resolution such a drastic power could not be read into the Act, where there were no provisions.
  • (ii)  The principles of collective responsibility, adverted to in the Constitution and the Constitutional conventions based upon British Parliamentary practice, were hardly applicable in the matter;
  • (iii) The affairs of a Co-operative Society could never be equated to that of the Parliament or a Legislative Assembly.
  • (iv) A Co-operative Society was the creature of the statute and must function within the parameters of the statute and the rules thereunder; and where the statute wanted to recognise and prescribe a procedure for a no-confidence motion, it had to deal with it specifically.
  • (v) Once this term had been prescribed by the statute, the members of the Committee are entitled to hold their office for the full term unless their tenure is terminated in accordance with the manner prescribed in the statute itself. That manner can be prescribed either in the Act, or in the Rules or in the Bye-laws. If there is no such prescription, then the members of the Committee shall be entitled to hold their office for the full tenure as indicated in the Rules. such a tenure cannot be cut short by exercise of an implied power.
  • (vi) A right arising in connection with election laws is not a common law right. It is a special right created by the conditions and manner prescribed by the law concerned,[197] and the argument of implied power by application of common law principles has no relevance.
  • (vii)The term of office prescribed is to give a security of tenure to carry on the management of the society effectively and efficiently in the interest of the Society as a whole.

It was also pointed out that under the provisions of the Co-operative Act, members of the committee had no licence to do what they please. They were controlled by the overriding ‘supervisory powers of the authorities’ under the Act; and there was also a specific provision in the Co-operative Societies Act which empowered the General Body to remove the entire committee by passing a vote of no-confidence.

It is legitimate to state that without an express enabling power in the bylaw, an elected-office-bearer of a society or club cannot be removed by a motion of noconfidence of the managing committee even though the managing committee had elected that office-bearer. It is a right arising under the provisions of its bye laws, and not conferred under the common-law-principles.

Since General Body of a society or club is supreme,[198] the properly convened General Body has the right to remove any one or all of the elected-office-bearers (subject to the fundamental principles of substantive justice, including observance of natural justice) unless no clause in the bye laws restricts the same.

Removal of Earlier Committee

When a committee of an association continues to exercise powers even after cessation of their period of office, it is within the competence of the General Body of the Association to take up the matter,if provisionsof the byelaws or the enactment concerned do not, expressly or impliedly, mandates otherwise. In proper cases, the members can approach the civil court also.

In any event, opportunity of being heard should be given to the members of the committee concerned.[199] It is well settled that principles of natural justice must be read into the byelaws and the statute, unless there is a clear directive to the contrary.[200]

In K. Srinivas Vs. Commissioner of Fisheries[201]it was observed that the Registrar of Co-operative Societies being conferred the power of general superintendence and to issue directions, in the public interest, to prevent the affairs of the society from being conducted in a manner detrimental to the interest of the members of the society, it was the Registrar of Co-operative Societies who had the power to declare that the managing committee had ceased to hold office.


[1]      Fourth Edition, Vol. 19(I), p 143: Referred to in D Dwarakanantha Reddy Vs. ChaitnyaBharathi: AIR  2007 SC 1794

[2]      Md. Moinuddin Vs. Commr. for Cooperation: AIR 2014 SC 2680; Narayan Vs. Assistant Registrar, Cooperative Societies: AIR 1994 Bombay 239; Bhaskar Laxman Rane Vs. Shri Gurudev Nityanand: 1998 (3) Mh.L.J.127; Kolhapur ZillaSahakariDoodh Vs. State of Maharashtra: 2008 (2) MAH. L.J.231; SurenderRohilla Vs. Inderprastha Cooperative House Building Society: 2014-2-CPJ 272; M. Sekar Vs. The Tamil Nadu State Council of the CPI: 2015-7 MLJ 689.

[3]      AIR 1963 SC 1144.

[4]      See also: Board of Control for Cricket Vs. Cricket Association: AIR 2015 SC 3194;          Capt. DK Giri Vs. Secunderabad Club: AIR 2018  AP 48.

[5]      Quoted in : Board of Control for Cricket Vs. Cricket Association: AIR  2015 SC 3194; D Dwarakanantha  Reddy Vs. Chaitnya Bharathi Ednl. Society : AIR 2007 SC 1794

[6]      (1988) 2 SCC 602

[7]      See also: Board of Control for Cricket Vs. Cricket Association: AIR 2015 SC 3194; Capt. DK Giri Vs. Secunderabad Club: AIR 2018  AP 48.

[7]      Quoted in : Board of Control for Cricket Vs. Cricket Association: AIR  2015 SC 3194; D Dwarakanantha Reddy Vs. Chaitnya Bharathi Ednl. Society : AIR 2007 SC 1794

[7]      (1988) 2 SCC 602,  See also: State of Haryana Vs. State of Punjab: (2004) 12 SCC 673;   Rajasthan State Road Transport Corporation Vs. ZakirHussain: (2005) 7 SCC 447.

[8]      AIR 1981 SC 136.

[9]      Narinder Mohan Arya Vs. United India Insurance Co. : AIR 2006 SC 1748; Rajasthan STC Vs. Bal Mukund Bairawa: (2009) 4 SCC 299 : (2009)5 SCJ 757; Firstone Tyre and Rubber Company Vs. Employees’ Union: AIR 1981 SC 1626; Union of India Vs. Gyan Chand Chatter: (2009) 12 SCC 78.  Sawai Singh Vs. State of Rajasthan: AIR 1986 SC 995; State of Andhra Pradesh Vs. S. Sree Rama Rao; AIR 1963 SC 1723; U.P.S.R.T.C.   Vs. Ram Chandra Yadav: AIR 2000 SC 3596; Union of India Vs. Gyan Chand Chattar, (2009) 12 SCC 78; Anil Gilurker Vs. Bilaspur Raipur Kshetria Gramin Bank : (2011) 14 SCC 379.

[10]    Workmen Vs. Hindustan Steel Ltd. : AIR 1985 SC 251; Rajastan STC Vs. Bal Mukund Bairawa: (2009) 4 SCC 299:  (2009)5 SCJ 757; MV Bijlani Vs. Union of India : 2006 SC 3475; Roop Singh Negi Vs. Punjab National Bank – AIR 2008 SC (Sup.) 921; Vijay Singh Vs. State of U.P. – AIR 2012 SC 2840; M.S. Bindra Vs. Union of India – AIR 1998 SC 3058; Registrar Vs. Uday Singh – AIR 1997 SC 2286; Zora Singh Vs. JM Tandon – AIR 1971 SC 1537; State of Uttaranjal Vs. Kharak Singh: 2008 AIR (SCW) 7507;  Union of India Vs. Naman Singh Sekhawat: 2008 AIR (SCW) 2813.                

[11]    A.C. Muthiah v. Board of Control for Cricket: (2011) 6 SCC 617: 2010 (2) CTC 429

[12]    Amlendu Ghosh Vs. District Traffic Superintendent: AIR 1960 SC 992.  See also: NaryanDattatraya Ramteerathakhar Vs. State of Mahastra:  AIR 1997 SC 2148

[13]    Narinder Mohan Arya Vs. United India Insurance Co: AIR 2006 SC 1748

[14]    AyaaubkhanNoorkhanPatan Vs. State of Maharashtra: AIR 2013 SC 58

[15]    B.C. Chaturvedi Vs. Union of India: AIR 1996 SC 484

[16]    Lalit Kumar Modi Vs. Board of Control Cricket: 2011-10 SCC 106; Workmen of Firestone Tyre Co Vs. Management: Sheikh Ismail: AIR  1973 SC 1227; Delhi Cloth And General Mills Company Limited Vs. LudhBudh Singh: AIR  1972 SC 1031 ;  Labour Commissioner Madhya Pradesh Vs. Burhanpur Tapti Mills: AIR 1964 SC 1687.

[17]    State Bank of India’s case: AIR (SCW) 1465

[18]    B.C. Chaturvedi Vs. Union of India: AIR 1996 SC 484; Union of India Vs. G. Ganayutham: AIR 1997 SC 3387.

[19]    TP Daver Vs. Lodge Victoria No. 363 SC Belgaum, 1963 AIR SC 1144;  State of Orissa Vs. Bidyabhushan Mohapatra: AIR 1963 SC 779.  Referred to in BC Chaturvedi Vs. Union of India: AIR 1996 SC 484; Lalit Kumar ModiVs. Board of Control for Cricket in India:  2011-10 SCC 106.

[20]    TP Daver Vs. Lodge Victoria No. 363 SC Belgaum, 1963 AIR SC 1144

[21]    Union of India Vs. Sardar Bahadur: (1972) 2 SCR 218: (1972) Lab IC 627).

[22]    B.C. Chaturvedi Vs. Union of India: AIR 1996 SC 484; Jagmohan Dalmia Vs. BCCI: AIR 2008 Cal. 227

[23]    Bhagat Ram Vs. State of Himachal Pradesh: AIR 1983 SC 454

[24]    TP Daver Vs. Lodge Victoria No. 363 SC Belgaum, 1963 AIR SC 1144; High Court of Judicature at Bombay Vs. Shashikant S. Patil: (2000) 1 SCC 416;  Jagmohan Dalmia Vs. BCCI: AIR 2008 Cal. 227

[25]    Sawai Singh Vs. State of Rajasthan: AIR 1986 SC 995

[26]    High Court of Judicature at Bombay Vs. Shashikant S. Patil: (2000) 1 SCC 416

[27]    TP Daver Vs. Lodge Victoria No. 363 SC Belgaum, 1963 AIR SC 1144

[28]    High Court of Judicature at Bombay Vs. Shashikant S. Patil: (2000) 1 SCC 416

[29]    B.C. Chaturvedi Vs. Union of India: AIR 1996 SC 484;  Union of India Vs. G. Ganayutham: AIR 1997 SC 3387.

[30]    State Bank of India’s case: AIR AIR (SCW) 1465

[31]    Most Rev. PMA Metropolitan Vs. Moran Mar Marthoma: AIR 1995 SC 2001.

[32]    Dr. TP Senkumar Vs. Union of India: 2017 (2) Ker LT 453 (SC)

[33]    AIR 1958 MP 323 (FB).

[34]    Sawai Singh Vs. State of Rajasthan: AIR 1986 SC 995.

[35]    B.C. Chaturvedi Vs. Union of India: AIR 1996 SC 484; Union of India Vs. G. Ganayutham: AIR 1997 SC 3387.

[36]    TP Daver Vs. Lodge Victoria No. 363 SC Belgaum: 1963 AIR SC 1144

[37]    TP Daver Vs. Lodge Victoria No. 363 SC Belgaum: 1963 AIR SC 1144, Capt. DK Giri Vs. Secunderabad Club: AIR 2018 AP 48; M. Sekar Vs. The Tamil Nadu State Council of the CPI: 2015-7 MLJ 689; D. Dwarakanantha Reddy Vs. Chaitnya Bharathi Educational Society : AIR 2007 SC 1794; Board of Control for Cricket Vs. Cricket Asson. of Bihar: AIR  2015 SC 3194.

[38]    Board of Trustees, Ayurvedic & Unani Tibia College, Delhi Vs.The State: AIR 1962 SC 458; TP Daver Vs. Lodge Victoria No. 363 SC Belgaum: 1963 AIR SC 1144; Siddheshwar Sahkari Sakhar Karkhana Vs. Commir. of IT, Kolhapur: AIR 2004 SC 4716; Hyderabad Karnataka Education Society Vs. Registrar of Societies: AIR 2000 SC 301; Daman Singh Vs. State of Punjab: AIR 1985 SC 973; Zoroastrian Co-op. Housing Society Ltd. Vs. District Registrar: AIR 2005 SC 2306; State Bank of India Staff Association Vs. Mohindra Bhattacharyya:  AIR 1991 Cal 378; BCCI Vs. Netaji Cricket Club: AIR 2005 SC 592.

[39]    C Chikka Venkatappa Vs. D Hanumanthappa: 1970 (1) Mys LJ 296; Narayan Krishnaji Vs. Anjuman E Islamia: AIR 1952 Kar 14: Thenappa Chattier Vs. KuruppanChhietier: AIR 1968 SC 915. Nelson Vs. KallayamPastotate: AIR 2007 SC 1337

[40]    A P Dairy Development Corpn. Vs. B Narasimha Reddy: AIR 2011 SC 3298;  Dharam DuttVs. Union of India: AIR 2004 SC 1295.

[41]    Kowtha Suryanarayana Rao Vs. Patibandla Subrahmanyam: AIR 1940 Mad 902.

[42]    Madras Gymkhana Club Vs. KC Sukumar: 2010-1 CTC 199.

[43]    A. Venkatasubbiah Naidu Vs. S. Chellappan: 2000 (7) SCC 695: AIR 2000 SC 3032;         Superintending Engineer Periyar Electricity Distribution Circle Erode Vs. Pavathal: 2002-2 CTC 544; 2002-1 Mad LJ 515. G. Bala Subrahmanyam Vs. Bar Council of AP: 2014 (2) ALD 101; 2014 (1) ALT 264; AP AryaVysyaMahasabha  Vs. MutyapuSudershan: 2015 (5) ALD 1: 2015 (6) ALT 227; Umesh Shivappa Ambi Vs. Angadi Shekara Basappa: (1998) 4 SCC 529: AIR 1999 SC 1566; Avtar Singh Hit Vs. Delhi Sikh Gurdwara Management Committee (2006) 8 SCC 487; Harnek Singh Vs. Charanjit Singh: AIR  2006 SC 52; Supreme Court Bar Association Vs. B.D. Kaushik: (2011) 13 SCC 774; NP Ponnuswami Vs. Returning Officer1952 SCR 218 : AIR 1952 SC 64

[44]    UjjalTalukdarVs. Netai Chand Koley: AIR 1969 Cal 224. Rashmi Bala Saxena Vs. Jiwaji University Gwalior: AIR  1989 MP 181

[45]    Supreme Court Bar Association Vs. BD Kaushik: (2011) 13 SCC 774

[46]    G. BalaSubrahmanyam Vs. Bar Council of AP: 2014 (2) ALD 101; 2014 (1) ALT 264; AP Arya Vysya Mahasabha  Vs. Mutyapu Sudershan: 2015 (5) ALD 1: 2015 (6) ALT 227.

[47]    AIR 2003 SC 2041: (2003) 4 SCC 557

[48]    Quoted in Poonam Vs. State of U.P. 20016-2 SCC 779.

[49]    See: D.K. Yadav Vs. J.M.A. Industries Ltd. AIR 1992 SC 1795

[50]    AIR 2003 SC 2041.  Referred to in Prakash Ratan Sinha Vs. State of Bihar: 2009-14 SCC 690.

[51]    Indian National Congress (I) Vs. Institute of Social Welfare: AIR 2002 SC 2158; Bachhitar Singh V. State of Punjab: AIR 1963 SC 395;  Union of India v. H.C. Goel: AIR 1964 SC 364; Jyoti Basu Vs. Debi Ghosal: AIR 1982 SC 983; Mohan Lal Tripathi Vs. District Magistrate, Raebareli: AIR 1993 SC 2042;  Ram Beti Vs. District Panchayat Rajadhikari: AIR 1998 SC 1222.

[52]    Chamoli District Co-Op. Bank Ltd.. Vs. Raghunath Singh Rana: 2016 AIR (SCW) 2510

[53]    AIR 1962 SC 1110

[54]    Quoted in K Chelliah Vs. Chairman Industrial Finance Corporation:  AIR1973 Mad 122.

[55]    Hree Vitthal Sahakari Vs. Wadikuroli Vividh KaryakariSeva Society: 2011-4 BCR 290

[56]   AwariDevannaVs Divisional Co Operative Officer: 1994-1 ALT 363; K. Srinivas VS Commissioner of Fisheries: 2009 3 ALD 1; 2009 2 ALT 604.

[57]   Institute of Chartered Accountants of India Vs. L.K. Ratna: AIR 1987 SC 71;  C.B. Gautam Vs. Union of India: (1993) 1 SCC 78.

[58]    AIR 1970 SC 150.  Quoted in: Mohinder Singh Gill Vs. Election Commissioner: (1978) 1SCC 405

[59]    (1964) 3 SCR 616

[60]    2016 AIR (SCW) 2510

[61]    (1964) 3 SCR 616

[62]    (1972) 4 SCC 304.

[63]    (2008) 8 SCC 236.

[64]    [1964] 3 SCR  652

[65]    AIR 1994 SC 1074.             

[66]    (1999) 2 SCC 2.

[67]    (2006) 3 SCC 150.

[68]    J.S. Yadav Vs. State of U.P.: (2011) 6 SCC 570

[69]    Bilaspur Raipur Kshetriya Gramin Bank Vs. Madanlal Tandon: AIR  2015 SC 2876.

[70]    East India Commercial Company Vs. The Collector of Customs: 1962 AIR SC 1893;   U.O.I. Vs. Madhumilan Syntex 1988-3 SCC 348;   Morarji Goculdas Vs. U.O.I. 1995 Supp3 SCC 588;   Metal Forgings Vs. U.O.I. 2003 2 SCC 36.

[71]    S.P. Malhotra Vs. Punjab National Bank” AIR 2013 SC 3739; Manohar Vs. State of Maharashtra: AIR 2013 SC 681; Punjab National Bank Vs. Kunj Behari Misra, AIR 1998 SC 2713; Yoginath D. Bagde Vs. State of Maharashtra : AIR 1999 SC 3734; State Bank of India Vs. K.P. Narayanan Kutty: AIR 2003 SC 1100; J.A. Naiksatam Vs. Prothonotary: AIR 2005 SC 1218; P.D. Agrawal Vs. State Bank of India : AIR 2006 SC 2064; Ranjit Singh Vs. Union of India : AIR 2006 SC 3685; Canara Bank Vs. Shri Debasis Das: AIR 2003 SC 2041; KanwarNutwar Singh Vs. Director of Enforcement:  2010 AIR (SCW) 6427.

[72]    C.B. Gautam Vs. Union of India (1993) 1 SCC 78.  Referred: Union Union of India Vs. Col. J. N. Sinha (1970) 2 SCC 458, Olga Tellis Vs. Bombay Municipal Corporation (1985) 3 SCC 545.

[73]    Quoted in: Arcot Textile Mills Vs. Regional Provident Fund: AIR 2014 SC 295.

[74]    AIR 1985 SC 1416; referred to in Board of Control for Cricket in India Vs. Cricket Association of Bihar: AIR 2015 SC 3194.

[75]    See also: Central Inland Water Trans. Corpn. Vs. BrojoNath Ganguly: AIR 1986 SC 1571.

[76]    (1978) 1 SCC 248

[77]    (2012) 4 SCC 438

[78]    Arcot Textile Mills Vs. Regional Provident Fund: AIR  2014 SC 295

[79]    Ajit Kumar Nag v. General Manager, Indian Oil Corpn.: AIR 2005 SC 4217;

[80]    Natwar Singh Vs. Director of Enforcement (2010) 13 SCC 255

[81]    Ex Armymen’s Protection Service Vs. Union of India: AIR 2014 SC 1376; A.S. Motors Pvt. Ltd Vs. Union Of India: 2013 AIR (SCW) 3830; Muhammed Yunus Khan Vs. State of U.P.: 2010-10 Scale 2867.   

[82]    Mohinder Singh Gill Vs. Election Commissioner: (1978) 1SCC 405; A.K. Kraipak Vs. Union of India: AIR 1970 SC 150.           

[83]    Maharashtra State Financial Corpn. Vs. M/s. Suvarna Board Mills: 1994-5 SCC 566.

[84]    AIR 1969 SC 198

[85]    AIR 1977 SC 965

[86]    AIR 1968 SC 850

[87] 2001-1 Bom CR 390: 2000-3 Bom LR 741: 2001 1 MhLJ 63

[88] AIR 1978 SC 597

[89] AIR 2006 SC 2064

[90] (1996) 3 SCC 364

[91] (1996) 5 SCC 460

[92] 2020 SCC OnLine SC 847

[93]    AIR 2006 SC 2064. See also: A.S. Motors Pvt. Ltd Vs. Union of India: 2013 AIR (SCW)  3830.

[94]    AIR 2005 SC 4217:  (2005) 7 SCC 764.

[95]    (1990) 1 SCC 613: AIR 1990 SC 1480.

[96]    AIR 1994 SC 1074

[97]    (2009) 12 SCC 40

[98]    2015 AIR (SCW) 3884: 2015 (8) SCC 519. Followed, Managing Director ECIL Hyderabad Vs. B Karunakar II: AIR 1994 SC 1074.

[99]    2013 AIR (SCW) 3830

[100]  1994-30 DRJ 669

[101]  AIR 1996 SC 1669; (1996) 3 SCC 364

[102]  (1973) 1 SCC 805

[103]  (1997) 2 SCC 534

[104]  Chennai Kancheepuram Tiruvelore District Film Distributors Association Vs. Chinthamani S. Murugesan: 2001 (3) CTC 349: 2001-Supp. Mad LJ 48;    A C Muthiah Vs. Board of Control for Cricket in India: (2011) 6 SCC 617: 2010 (2) CTC 429.      

[105]  AIR1985 SC 973

[106]  Maharashtra State Board of Secondary Edn. Vs. K.S. Gandhi: (1991) 2 SCC 716.  See also: Executive Engineer Vs. Sri Seetaram Rice Mill: (2012)2 SCC 108;   Harekrishna K. Vadhwani Vs. Vasupujya Smruti Co -op. Hsg. Soc.: 2004(1) GLH 257;   Banaskantha District Co -op. Union Ltd. Vs. State of Gujarat 2011(2) GLR 1707; State of U.P. Vs. C.O.D. Chheoki Employees’ Co-op. Society Ltd : AIR 1997  SC  1413;  B.C. Chaturvedi Vs. Union of India: AIR 1996 SC 484.

[107]  Kurukshetra University Vs. Vinod Kumar: AIR 1977 Pj&Hr 21

[108]  AIR 1972 SC 330

[109]  Especially, in discretionary reliefs: Madras Gymkhana Club Vs. Sukumar 2010-1 CTC 199

[110]  See: A. Venkatasubbiah Naidu Vs. S. Chellappan: 2000 (7) SCC 695: AIR  2000 SC 3032; Superding Engineer Periyar Electricity Vs. Pavathal: 2002-2 CTC 544; 2002-1 Mad LJ 515.

[111]  Supreme Court Bar Association Vs. BD Kaushik: (2011) 13 SCC 774

[112]  G. Bala Subrahmanyam Vs. Bar Council of AP: 2014 (2) ALD 101; 2014 (1) ALT 264;         AP Arya Vysya Mahasabha  Vs. Mutyapu Sudershan: 2015 (5) ALD 1: 2015 (6) ALT 227

[113]  A.V. Venkateswaran, Collector Vs. Ramchand Sobhraj Wadhwani : AIR 1961 SC 1506;  SatwatiDeswal Vs. State of Haryana: [2010] 1 SCC 126 ;  State of H.P. Vs. Gujarat Ambuja Cement Ltd.: AIR 2005 SC 3936;  Dhulabhai Vs. State of M P : AIR 1969 SC 78; Whirlpool Corporation Vs. Registrar of Trade Marks, Mumbai:  AIR 1999 SC 22.

[114]  Rajasthan STC Vs. Bal Mukund Bairawa: (2009) 4 SCC 299 : (2009)5 SCJ 757;

[115]  AIR 1983 SC 603

[116]  AIR  2016 SC 1094

[117]  AIR 1988 SC 616

[118]  AIR 1999 SC 1566

[119]  Quoted in: Avtar Singh Hit Vs. Delhi Sikh GurdwaraMgent. Comte. (2006) 8 SCC 487. Similar view in: Harnek Singh Vs. Charanjit  Singh: AIR  2006 SC 52.  Also see: Supreme Court Bar Association Vs. BD Kaushik: (2011) 13 SCC 774; NP Ponnuswami Vs. Returning Officer: AIR 1952 SC 64.

[120]  AIR 2005 SC 4217.

[121]  See also: Arcot Textile Mills Vs. Regional Provident Fund: AIR  2014 SC 295.

[122]  State of Madhya Pradesh Vs. Bani Singh : 1990 (Supp) SCC 738, (more than 12 years); State of Punjab Vs. Chaman Lal Goyal: (1995) 2 SCC 570 (5½ years); M. Balakrishnan Vs. The Corporation of Madurai: 1995 (II) CTC 589; The Commr, Sankarapuram Panchayat Vs. S.A. Abdul Wahab: 1996 Writ L.R.677, State of Andhra Pradesh Vs. N. Radhakishan: (1998) 4 SCC 154, B. Loganathan Vs. The Union of India: 2000 (III) CTC 351 (SC) (15 years); Union of India Vs. Central Administrative Tribunal: 2005 (2) CTC 169(20 years); P.V. Mahadevan Vs. M.D., Tamil Nadu Housing Board: 2005 (4) CTC 403(SC) (20 years);  M.V. Bijlani Vs. Union of India: (2006) 5 SCC 88, (13 years), P. Anand Vs. The Principal Commissioner: 2006 (5) CTC 723; K. Kumaran Vs. The State of Tamil Nadu:  2007 (3) CTC 763 (18 years); Ranjeet Singh Vs. State of Haryana 2008 (3) CTC 781 (SC) (9 years).

[123]Usha Udyog Vs. Customs, Excise and Gold: 2000-86 DLT 667: 2000-71 ECC 416, Mohan Lal Saraf Vs. Chairperson, Debts Recovery: 2013-2 ADJ 497, 2013-3All LJ 99

[124]Satya Nidhan Banerji Vs. Mdhazabbur Ali Khan: AIR  1932 All 47; Gadagotlu Sitaramaiah Vs. Collector Of Central Excise Hyderabad: AIR1960 AP 294, Iddesh Tours And Travels Vs. Comrof Service Tax Mumbai: 2019-367 ELT 235

[125] Vijay Prakash D. Mehta Vs. Collector of Customs:  AIR 1988 SC 2010; Unicipal Committee Hoshiarpur Vs. Punjab State Electricity Board: AIR  2011 SC  209, Tecnimont Pvt Ltd Vs. State of Punjab: 2019-12 SCALE 562, Usha Udyog Vs. Customs, Excise and Gold: 2000-86 DLT 667: 2000-71 ECC 416; Shyam Kishore Vs. Municipal Corporation of Delhi: AIR  1991 Del  104

[126]Usha Udyog Vs. Customs, Excise and Gold: 2000-86 DLT 667: 2000-71 ECC 416; Discharged Servicemens Assn. Vs. State of Kerala: 1999-2 KerLJ 1133: 2000-1 KerLT 281.

[127] Nathamani Gounder Vs. State of Tamil Nudu: 1986-2 LLJ 423,

[128]  State of Andhra Pradesh Vs. S. Sree Rama Rao; AIR 1963 SC 1723;  Sawai Singh Vs. State of Rajasthan: AIR 1986 SC 995; U.P.S.R.T.C.   Vs. Ram Chandra Yadav: AIR 2000 SC 3596;  Union of India Vs. Gyan Chand Chattar, (2009) 12 SCC 78;   Anil Gilurker Vs.Bilaspur Raipur Kshetria Gramin Bank : (2011) 14 SCC 379 .

[129]  AIR 1971 SC 752.                

[130]  See also: Narinder Mohan Arya Vs. United India Insurance: AIR 2006 SC 1748; Rajastan STC Vs. Bal Mukund Bairawa:  (2009) 4 SCC 299: (2009)5 SCJ 757; Anil Gilurkar Vs.Bilaspur Raipur Kshetria Bank 2011 AIR (SCW)  5327; FirstoneTyre and Rubber Company Vs. Employees’ Union: AIR 1981 SC 1626; Union of India Vs. Gyan Chand Chatter: (2009) 12 SCC 78.

[131]  AIR 1986 SC 995

[132]  Ambalal Sarabhai Vs. Phiros H. Antia: AIR 1939 Bom. 35.  See also:  C.D. Sekkilar Vs. R. Krishnamoorthy: AIR 1952  Mad  151.  Husein Miya Dosumiya vs. Chandulal Jethabhai: AIR 1954 Bom 239;     Rajasthan State Road Trant. Corpn. Vs. Bal Mukund Bairawa: (2009) 4 SCC 299.    Personal hearing necessary: Mumbai Cricket Asson. Vs. Ratnakar: (2014) 2 Mah LJ 726. Action on report of enquiry officer based on ‘no evidence’: Roop Singh Negi Vs. Punjab National Bank : AIR 2008 SC (Sup.) 921; Jagmohan Dalmia Vs. BCCI: AIR 2008 Cal. 227. Narinder Mohan Arya Vs. United India Insurance Co. : AIR 2006 SC 1748, T.P. Daver Vs. Lodge Victoria AIR 1963  SC  1144;  Central Inland Water Transport Corporation Vs. Brojo Nath Ganguly: AIR 1986 SC 1571; Institute of Chartered Accounts of India Vs. L.K. Ratna, 1986 (4) SCC 537; Delhi Transport Corp. Vs. DTC Mazdoor Congress 1991 (Supp.1) SCC 600; LIC of India Vs. Consumer Education and Research Centre 1995(5) SCC 482; Escorts Farms Vs. Commissioner Kumaon Division (2004) 4 SCC 281; SM Kamble Vs. Jt. Registrar, Co-Op. Societies: (2008) 1 AIR Bom R 274.

[133]  Kalyan Kumar Dutta Gupta Vs. B.M. Verma: AIR 1995 Cal. 140 (DB).    Also see: Deepak R Mehtra Vs. National Sports Club of India: ILR 2009-19 Dlh 216.

[134]  T.P. Daver v. Lodge Victoria No. 363 S.C. Belgaum: AIR 1963 SC 1144. 

[135]  AIR 1966 SC 1738.

[136]  See: Firm Seth Radhakishan Vs. Administrator, Municipal Committee, Ludhiana:  AIR 1963 SC 1547; Secretary of State Vs. Mask & Co.: AIR 1940 PC 43; Premier Automobiles Ltd. Vs. Kamlakar Shantnram: AIR 1975 SC 2238: Rajasthan STC Vs. Bal Mukund Bairawa: (2009) 4 SCC 299 : (2009)5 SCJ 757: Referred to: Narinder Mohan Arya  Vs. United India Insurance Co. : AIR 2006 SC 1748; Roop Singh Negi Vs. Punjab National Bank : AIR 2008 SC (Sup.) 921; Dhulabhai  Vs. State of M P : AIR 1969 SC 78. See also: ShridharMisra Vs. Jaichandra Vidyalankar:   AIR 1959 All 598; K K Jain Vs. Federation Of Indian Export Organisations: AIR  2002 Del 408; Gegong Apang  Vs. Sanjoy Tassar: AIR  2001 Gau 1; Sardar Kanwaldeep Singh Vs. Assistant Registrar Firms, Societies and Chits, Faizabad: AIR 1994 All 161;  Gaurav A Jain Vs. M P University of Agriculture And Technology, AIR  2004 Raj 247.

[137]  4thEdnVol 6: Para 241: Quoted in K.L. Katyal Vs. Central Secretariat Club (Regd):1994-30 DRJ 669 .

[138]  AIR 2015 Gau 179.

[139]  See also: M. Sekar Vs. The Tamil Nadu State Council of the CPI: 2015-7 MLJ 689

[140]    1999-3 SCC 372.

[141]  AIR  2015 SC 3194

[142]    General Manager (P), Punjab Sind Bank Vs. Daya Singh: (2010) 11 SCC 233

[143]  AIR 1963 SC 1144

[144]  See: All India Hockey Federation Vs. Indian Olympic Association: (1994) 55 DLT 607, Ashok Kumar Vs. SBI Officers Association: (2013) 201 DLT 433. See also: Meghal Homes Pvt Ltd Vs. Niwas Girni K K Samiti: AIR   2007 SC 3079; Capt Kailash Nath Harsh Vs. D C Patel: AIR 1999 Bom 133.

[145]  AIR 1993 Mad 233

[146]  (1991) 2 SCC 716

[147]  See also: BC Chaturvedi Vs. Union of India: AIR 1996 SC 484.  Bhagat Ram Vs. State of Himachal Pradesh: AIR 1983 SC 454.

[148]  2011 AIR-SCW  5919: 2011-10 SCC 106

[149]  Quoted in Most Rev. PMA Metropolitan Vs. Moran Mar Marthoma, AIR 1995 SC 2001, by RM Sahai, J.

[150]AIR 1962 SC 853

[151]  Referred to in Most Rev. PMA Metropolitan Vs. Moran Mar Marthoma, AIR 1995 SC 2001, by RM Sahai, J.

[152]  Most Rev. P.M.A. Metropolitan Vs. Moran Mar Marthoma, AIR 1995 SC 2001

[153]  (2009) 12 SCC 78

[154]  B.C. Chaturvedi Vs. Union of India: AIR 1996 SC 484

[155]  AIR 1963 SC 779:  B.C. Chaturvedi Vs. Union of India: AIR 1996 SC 484.

[156]  B.C. Chaturvedi Vs. Union of India: AIR 1996 SC 484

[157] AIR 2003 SC 1462

[158]Damoh Panna Sagar Rural Regional Bank Vs. Munna Lal Jain: AIR 2005 SC 584

[159]Workmen of Balmadies Estates Vs. Management Balmadies Estate: Supp AIR 2008 SC 1366; 2008 4 SCC 517.

[160]J.D. Jain v. Management of State Bank of India and Anr. (1982) 1 SCC 143;

Referred to in Workmen of Balmadies Estates Vs. Management Balmadies Estate: Supp AIR 2008 SC 1366; 2008 4 SCC 517.          

[161]  Vidyodaya Trust Vs. Mohan Prasad: AIR 2008 SC 1633.

[162]  Azizor Rahman Choudhury Vs. Ahidennessa Choudharani: AIR 1928 Cal. 225

[163]AIR 1928 All 454 (FB). Referred to in Bhagauti Prasad KhetanVs. Laxminathji Maharaj: AIR 1985 All 228.

[164]AIR 1961 All 73.  Referred to in Bhagauti Prasad Khetan Vs. Laxminathji Maharaj: AIR 1985 All 228.

[165]AIR 1917 PC 33.    Referred to in Bhagauti Prasad Khetan Vs. Laxminathji Maharaj: AIR 1985 All 228.

[166]  Quoted with approval in Sridhar Vs. Sri Jagannath Temple, AIR 1976 SC 1860. Referred to in Bhagauti Prasad Khetan Vs. Laxminathji Maharaj: AIR 1985 All 228.

[167]  Thenappa Chettiar  Vs.Karuppan Chettiar: AIR 1968 SC 915 

[168]  AIR 1922 PC 235; (1921) ILR 48 Cal. 1019

[169]  See also: Satish Chandra GiriVs. Dharanidhar Singha Boy: AIR 1940 PC 24.

[170]  Mrs. Kalidha Adib Begum And Anr. Vs. S.A. Bashirunnissa Begum Hussaini : 1970-83 MadLW 116

[171]  Board of Trustees, Ayurvedic & Unani Tibia College Vs. The State: AIR 1962 SC 458;  Siddheshwar Sahkari Sakhar Karkhana Vs. Commr of IT: AIR 2004 SC 4716; Hyderabad Karnataka Education Society Vs. Registrar of Societies: AIR 2000 SC 301; Daman Singh Vs. State of Punjab AIR 1985 SC 973. Zoroastrian Co-op. Housing Society Vs. Dist Regtr, Co-op. Societies: AIR 2005  SC 2306; State Bank of India Staff Association Vs. Mohindra Bhattacharyya:  AIR 1991 Cal 378.                 

[172]  Daman Singh Vs. State of Punjab: AIR 1985  SC 973; Damyanti Naranga Vs. Union of India: AIR 1971 SC 966; Zoroastrian Co-op. Housing Society Vs. Dist Regtr, Co-op. Societies: AIR 2005  SC 2306

[173]  Zoroastrian Co-op. Housing Society Vs. Dist Regtr, Co–operative: AIR  2005 SC 2306;  Syed Munir Hoda Vs. Bader Sayeed: TLMAD-2012-0-2262;   Supreme Court Bar Association Vs. B.D. Kaushik: : (2011) 13 SCC 774; State of U.P. Vs. C.O.D. Chheoki Employees’ Co-op. Society Ltd : AIR 1997  SC  1413.

[174]  Zoroastrian Co-op. Housing Society   Vs. Dist Regtr, Co-op. Societies: AIR 2005  SC 2306

[175]  AIR 1997  SC  1413.   Quoted in Zoroastrian Co-op. Housing Society Ltd. Vs. Dist. Regtr:  AIR 2005  SC  2306; Supreme Court Bar Association Vs. B D Kaushik: (2011) 13 SCC 774;  Chandigarh Housing Board Vs. Devinder Singh: AIR 2007 SC 1723.

[176]  Hree Vitthal Sahakari Sahakar Karkhana Ltd  Vs. Wadikuroli Vividh Karyakari Seva Society Ltd. 2011-4 BCR 290

[177]  AIR 1947 Oudh 28

[178]  AIR 1925 Mad. 1070

[179]  AIR 1922 PC 325; See also Janardhana Mishra Alias Janardhana Prasad Vs. State (1996) 1 Mad LJ 588

[180]  SrinivasChariar and another Vs. C.N. Evalappa Mudaliar: AIR 1922 PC 325.    See also: Janardhana Mishra Alias Janardhana Prasad Vs. State (1996) 1 Mad LJ 588;  Idol of A M Kamakala Kameshwarar Temple Vs. Sri Siddaraja Manicka Prabha Temple: 2011-6 Mad LJ  386; Deputy Commissioner Judicial Vs. M Perumal: 2003-3 Mad LJ  151 .

[181]  1987- 62   Comp. Cases 301

[182]  AIR 1966 SC 170

[183]  See Chapter: COURT’S JURISDICTION TO INTERFERE IN THE INTERNAL AFFAIRS

[184]  With respect to Companies, see: Dwarka Prasad Agarwal Vs. Ramesh Chandra Agarwala: AIR 2003 SC 2696;      R. Prakasam Vs. Sree Naryana Dharma Paripalana: (1980) 50 Comp. Cases 611(Ker);      R. R. Rajendra Menon Vs. Cochin Stock Exchange Ltd.: (1990) 69 Comp. Cases 256

[185]  Firm of Illuri Subbayya Chetty Vs. State of Andhra Pradesh: AIR 1984 SC 322; Antony Vs. Thandiyode Plantations: 1995 (2) KLT 512. Parayakadu Nalukulangara Devaswom Vs. Padmanabhan: 1983 KLJ 232: 1983 KLT 803;  Dhulabhai Vs. State of M P : AIR 1969 SC 78; R. Prakasam Vs. SreeNarayana Dharma ParipalanaYogam: (1980) 50 Comp. Cases 611(Ker).    

[186]  (1990) 69 Comp. Cases 256

[187]AIR 1958 MP 323 (FB).

[188]  A few States give power in the Act to the Government to supersede societies.

[189]AIR 1970 MP 154 

[190]  (2002) 5 SCC 685

[191]  ILR 1997 Kar 3127

[192]  J. K. Cotton Spinning and Weaving Mills Co. Ltd. Vs. State of UP, AIR1990 SC 1808; Union Of India Vs. Gopal Chandra Misra, AIR 1978 SC 694

[193]  Sarbjit Singh Vs. All India Fine Arts and Crafts Society: ILR 1989-2 Del 585.

[194]  Shri Sarbjit Singh Vs. All India Fine Arts and Crafts Society: ILR (1989) II Delhi 585

[195]  AIR 2015 SC 1960

[196]  AIR 2002 Ker 325:  Followed: Veeramachaneni Venkata Narayana Vs. Dty Registrar: ILR 1975 AP 242; Hindurao Vs. Krishnarao, AIR 1982 Bom. 216;  Jagdev Singh Vs. The Registrar, Co-operative Societies, Haryana:  AIR 1991 P & H 149; Narayanan Nair Vs. Joint Registrar, 1982 KLT 602;     Bar Council of Delhi Vs. Bar Council of India, AIR 1975 Delhi 200.

[197]  Jyoti Basu   Vs. Debi Ghosal(1982) 1 SCC 691

[198]  Supreme Court Bar Association Vs. Registrar of Societies: ILR 2012-22 Del  1031; Girish Mulchand Mehta Vs. Mahesh S. Mehta. 2010 (1) Bom. C.R 31

[199]   Awari Devanna Vs Divisional Co Operative Officer: 1994-1 ALT 363; K. Srinivas VS Commissioner of Fisheries: 2009 3 ALD 1; 2009 2 ALT 604.

[200]   Institute of Chartered Accountants of India Vs. L.K. Ratna: AIR 1987 SC 71; C.B. Gautam Vs. Union of India: (1993) 1 SCC 78.

[201]   2009 3 ALD 1; 2009 2 ALT 604



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