Supreme Court Dismisses Appeal in Evacuee Property and Consolidation Dispute. Adverse Possession Finding Upheld as Question of Fact; Compensation Statement Finality Under Section 240-J of U.P. Zamindari Abolition and Land Reforms Act Not Binding on Non-Party Adhivasi.

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Case Note & Summary

The dispute pertains to an evacuee property in Uttar Pradesh, where the appellant claimed adverse possession and sought to be recorded as sirdar and bhumidar in consolidation proceedings, while the respondent objected and claimed rights as Adhivasi. On May 21, 1956, one-third share of Smt. Shahida Khatoon was declared evacuee under the Custodian of Evacuee Property Act, 1950, and the appellant subsequently purchased the property. In consolidation proceedings under the Consolidation Act, the respondent filed objections, and the appellant claimed adverse possession. The Consolidation Officer and Settlement Officer initially upheld the appellant's claim, but the Deputy Director, in revision, reversed the finding on November 18, 1965, holding that the appellant was not in adverse possession. Both parties filed writ petitions, which were dismissed. On special appeal, the Division Bench of the High Court, by order dated July 30, 1974, reversed the single Judge's finding on adverse possession, thereby upholding the Deputy Director's conclusion that the appellant had no adverse possession. However, regarding Khata No. 90, the Division Bench held that since the respondent was not impleaded in the proceedings under the U.P. Zamindari Abolition and Land Reforms Act, the compensation statement did not bind her, and she was entitled to be recognized as sirdar. The appellant then filed a special leave petition before the Supreme Court. The appellant's counsel contended that the High Court and Deputy Director erred in recording no adverse possession in light of proceedings by the Assistant Director of the Custodian of Evacuee Property and the subsequent sale. The Supreme Court held that the question of adverse possession was a finding of fact recorded by the Deputy Director and upheld by the Division Bench, and it could not be re-examined in appeal. Regarding the second contention based on the Full Bench decision in Avdhesh Singh v. Bikarma Ahir, the Court observed that the Full Bench had recorded two findings: the first that finality of the compensation statement under Section 240-J extinguishes the rights of the land-holder, and the second that the compensation statement is final only between the land-holder and the State. Since the Adhivasi was not a party to those proceedings, the finding did not bind her. Consequently, the Supreme Court dismissed the appeals with no order as to costs.

Headnote

A) Property Law - Adverse Possession - Findings of Fact - Not open to re-appreciation in Supreme Court - Custodian of Evacuee Property Act, 1950; U.P. Zamindari Abolition and Land Reforms Act - The appellant contended that the High Court and Dy. Director erred in holding no adverse possession in light of proceedings by the Asst. Director of Custodian of Evacuee Property and sale thereof. The Court held that whether the appellant was in adverse possession was a finding of fact recorded by the Dy. Director as upheld by the Division Bench, and the Supreme Court cannot go into that question for the first time. Held that the finding of fact is not to be interfered with. (Paras Not mentioned)

B) Property Law - Compensation Statement Finality - Effect on Non-Party Adhivasi - Section 240-J, U.P. Zamindari Abolition and Land Reforms Act - Finality of Compensation Statement under Section 240-J extinguishes rights of land-holder and is final between land-holder and State alone; it does not bind an Adhivasi who was not a party to the proceedings. The appellant relied on the Full Bench decision in Avdhesh Singh v. Bikarma Ahir to argue that the compensation statement finality precluded the respondent's claim. The Court found that while the first point supported the appellant, the second point clarified that the statement is not binding on an Adhivasi not made a party. Held that the respondent as Adhivasi was entitled to be recognized under the Act. (Paras Not mentioned)

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Issue of Consideration

Whether the appellant was in adverse possession and entitled to be recorded as sirdar/bhumidar; whether the compensation statement finality under Section 240-J of U.P. Zamindari Abolition and Land Reforms Act precluded the respondent's claim as Adhivasi.

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Final Decision

The appeals were dismissed. No costs.

Law Points

  • Adverse possession is a finding of fact not open to re-appreciation in appeal
  • Finality of compensation statement under Section 240-J binds only landholder and State not non-party Adhivasi
  • Rights of Adhivasi cannot be extinguished by collateral proceedings
  • Findings of fact by lower authorities upheld unless perverse
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Case Details

1996 LawText (SC) (02) 223

1996-02-14

K. Ramaswamy, S. Saghir Ahmad

1996 SCC (2) 500, JT 1996 (3) 70, 1996 SCALE (2) 587

Shri Francis

Abdul Qadir (Dead) By Lrs.

Smt. Maimoona Khatoon (Dead) By Lrs & Ors.

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Nature of Litigation

Civil appeal by special leave against order of Division Bench of High Court in consolidation and evacuee property dispute.

Remedy Sought

Appellant sought reversal of High Court order and recognition of his adverse possession as sirdar and bhumidar.

Filing Reason

The appellant challenged the concurrent finding of Dy. Director and Division Bench that he was not in adverse possession, and the Division Bench's holding that respondent was entitled to sirdar rights in Khata No. 90.

Previous Decisions

Consolidation Officer and Settlement Officer upheld appellant's adverse possession claim; Dy. Director reversed on 18-11-1965; writ petitions dismissed; Special Appeal allowed in part by Division Bench on 30-07-1974 upholding Dy. Director on adverse possession but granting respondent sirdar rights in Khata No. 90.

Issues

Whether the finding of adverse possession against the appellant was perverse or erroneous Whether the compensation statement finality under Section 240-J precluded the respondent's claim as Adhivasi

Submissions/Arguments

Appellant contended that the High Court and Dy. Director erred in holding no adverse possession in view of proceedings initiated by Asst. Director of Custodian of Evacuee Property and sale thereof. Appellant argued based on Full Bench decision in Avdhesh Singh that finality of compensation statement under Section 240-J extinguished rights of land-holder and precluded respondent's claim. Respondent argued that compensation statement finality was only between land-holder and State, and since Adhivasi was not a party, her rights were not extinguished.

Ratio Decidendi

Findings of fact regarding adverse possession are not open to re-appreciation in appeal. The finality of a compensation statement under Section 240-J of the U.P. Zamindari Abolition and Land Reforms Act is limited to the land-holder and the State; it does not bind an Adhivasi who was not a party to the proceedings, and such Adhivasi can assert rights in collateral proceedings.

Judgment Excerpts

The question whether the appellant is in adverse possession is a finding of fact recorded by the Dy. Director as upheld by the Division Bench. Under those circumstances, we cannot go into the question for the first time in this appeal. The Compensation Statement signed and sealed under Section 240-J (2) of the Act is final between the land holder and the State alone. The land-holder against whom Compensation Statement has become final and who has received compensation has no locus standi to reagitate his rights in respect of the land in question. The appeals are accordingly dismissed. No costs.

Procedural History

On May 21, 1956, 1/3rd share of Smt. Shahida Khatoon was declared evacuee under Custodian of Evacuee Property Act, 1950. Appellant purchased the property. In consolidation proceedings, respondent filed objections; appellant claimed adverse possession. Consolidation Officer and Settlement Officer upheld appellant's claim, but Dy. Director reversed on November 18, 1965, holding no adverse possession. Both parties filed writ petitions; both dismissed. On special appeal, Division Bench on July 30, 1974 upheld Dy. Director on adverse possession but held respondent entitled to sirdar in Khata No. 90 because respondent not impleaded in U.P. Zamindari Abolition proceedings. Appellant filed special leave petition before Supreme Court. Supreme Court dismissed appeals on February 14, 1996.

Acts & Sections

  • Custodian of Evacuee Property Act, 1950: Section 7
  • U.P. Zamindari Abolition and Land Reforms Act: Section 240-J
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