Case Note & Summary
The Supreme Court addressed a dispute over entitlement to compensation in a land acquisition proceeding. The appellant, Durga Das, claimed a share in compensation as a tenant over certain acquired lands. The family originally owned 14 canals 18 marlas of land, consisting of Kishori Lal, Kewal Krishan, and their sister Koushalya. Kishori Lal and Koushalya sold their respective shares, and Kewal Krishan sold his specified share to the appellant. Subsequently, when lands belonging to Vijay Kumar, admeasuring 1 canal 5 marlas and 2 canals 3 marlas, were acquired by the Government, the appellant laid claim as a tenant based on revenue entries. The Reference Court and the High Court of Himachal Pradesh in M.F.A.No.24/80 dated May 5, 1984, recorded concurrent findings that the appellant was not a tenant and therefore not entitled to a share in compensation. The appellant challenged this by special leave. The Supreme Court upheld the view that the appellant, having only purchased a specified share from Kewal Krishan, could not be considered a tenant in respect of other lands belonging to different owners. The Court reiterated that mutation entries do not confer title; they are merely fiscal entries for collection of land revenue from the person in possession. Title must rest on the basis of actual acquisition of rights, not on mutation entries. Since the appellant did not execute any lease deed in respect of the other lands, he could not claim tenancy over Vijay Kumar's land. Consequently, the Court directed that the compensation amount be paid to Vijay Kumar. If the appellant had withdrawn any amount, the bank guarantee furnished by him was to be encashed and the balance paid to him; if no withdrawal was made, the bank guarantee was to be discharged. The appeal was dismissed with no order as to costs.
Headnote
A) Property Law - Tenancy and Compensation - Mutation entries do not confer title - Not mentioned - Appellant claimed tenant's share in compensation for acquired land; courts below held purchase of specified share did not make him tenant in other lands; Supreme Court affirmed, holding title rests on acquisition, not revenue entries, and no lease deed executed. Held appeal dismissed, compensation payable to Vijay Kumar, bank guarantee directions issued (Paras 1-2).
Issue of Consideration
Whether the appellant was a tenant in occupation of the acquired land and entitled to compensation as a tenant.
Final Decision
Appeal dismissed. The Court directed the amount to be paid to Vijay Kumar; if the appellant had withdrawn the amount, the bank guarantee should be encashed and the balance paid to the appellant; if the amount was not withdrawn, the bank guarantee furnished by the appellant should be discharged. No costs.
Law Points
- Mutation entries do not confer title
- title based on acquisition not revenue records
- purchase of specified share does not create tenancy in other lands
- tenant must have lease deed


