Case Note & Summary
The dispute arose from agricultural lands in Gujarat where the appellants were tenants and the respondent was the erstwhile landlord. The Bombay Tenancy and Agricultural Lands Act, 1948 was amended in 1956, and by operation of Section 32, tenants became deemed purchasers with effect from 1 April 1957, known as Tillers' day. Before that date, on 12 December 1956, the respondent landlord terminated the tenancy and filed a trust deed before the Assistant Charity Commissioner under Section 18 of the Bombay Public Trusts Act, 1950 for registration of a public trust over the lands. The trust was registered on 31 January 1957 without any notice to the appellants. The appellants challenged the registration by way of appeal to the Charity Commissioner under Section 70, which was dismissed on 8 August 1957. A further appeal to the District Judge was dismissed by the Assistant Judge, Surat on 18 August 1967. The appellants then filed First Appeal No. 347 of 1968 before the High Court, and the learned Single Judge by judgment dated 22 September 1975 set aside the registration, holding that the tenants were entitled to be heard and had not been given notice. The respondent preferred a Letters Patent Appeal No. 10 of 1976, and the Division Bench on 27 July 1979 reversed the Single Judge, holding that the creation of trust and its registration were valid. The appellants then approached the Supreme Court by special leave. The Supreme Court considered whether the tenant had a pre-existing right and was entitled to be heard before registration of trust, and whether the Letters Patent Appeal was maintainable without leave. The Court noted that the order under Section 32 of the Tenancy Act declaring the appellants as deemed purchasers had become final, thereby divesting the respondent landlord of his ownership and vesting the land in the tenants. The Court distinguished the earlier decision in Maneksha Ardeshir Irani v. Manekji Edulji Mistry, which had held that a tenant has no right to be heard under Section 88-B of the Tenancy Act in proceedings between the Collector and the trust, because in that case the tenant had not raised any pre-existing right. In the present case, the tenant had a statutory right under Section 32, and therefore was a person interested under Section 19 of the Bombay Public Trusts Act, 1950, entitled to notice and hearing before registration of trust under Section 18. The Court held that the enquiry contemplated under Section 19 was given a ceremonial send off without being complied with, and thus the Single Judge was correct in invalidating the registration. On the question of maintainability of the Letters Patent Appeal, the Court relied on Ramchandra Goverdhan Pandit v. Charity Commissioner of State of Gujarat, which held that proceedings before the District Court under Section 72(1) of the Bombay Public Trusts Act are in the nature of an appeal, and a Single Judge deciding an appeal from the District Court exercises appellate jurisdiction, requiring leave under clause 15 of the Letters Patent for a further appeal to the Division Bench. Since no leave was obtained, the Letters Patent Appeal was incompetent. The Supreme Court accordingly allowed the appeal, set aside the Division Bench judgment, and restored the Single Judge's order, with no order as to costs.
Headnote
A) Bombay Tenancy and Agricultural Lands Act, 1948 - Statutory Purchase - Divesting of Landlord's Title - Section 32 - Tenants became deemed purchasers on Tillers' day (01-04-1957) by operation of Section 32; the order under Section 32 became final, divesting the respondent landlord of ownership and vesting the land in the tenants; consequently, the erstwhile landlord had no title to create a trust or transfer property by gift to the trust - Held that creation of trust by respondent after statutory divesting was not valid in law. B) Bombay Public Trusts Act, 1950 - Registration of Trust - Right to Hearing of Interested Person - Sections 18, 19 - A tenant who has a pre-existing right in the land sought to be transferred by trust is a person vitally interested and entitled to be heard before registration; registration of trust without notice to such tenant violates Section 19 - The learned Single Judge correctly held that since the order under Section 32 was not assailed, the appellants were entitled to be heard before granting registration and vesting the land in the trust - Held that the registration of trust under Section 18 without hearing the tenant was invalid. C) Letters Patent - Appeal Maintainability - Leave of Single Judge - Clause 15 - An appeal to Division Bench under clause 15 of Letters Patent from a decision of a Single Judge of High Court in an appeal arising under Section 72 of the Bombay Public Trusts Act, 1950 is not maintainable without a certificate of leave granted by the Single Judge - Following Ramchandra Goverdhan Pandit v. Charity Commissioner of State of Gujarat, the Letters Patent Appeal filed without leave was incompetent - Held that the Division Bench judgment was set aside as appeal was not maintainable.
Issue of Consideration
Whether creation and registration of trust under Bombay Public Trusts Act, 1950 by erstwhile landlord after tenant became deemed purchaser under Section 32 of Bombay Tenancy Act is valid; Whether tenant is entitled to notice and hearing before trust registration; Whether Letters Patent Appeal before Division Bench was maintainable without leave of single judge under clause 15.
Final Decision
Appeal allowed; judgment of Division Bench in L.P.A. No. 10/76 dated 27-07-1979 set aside as incompetent for want of leave under clause 15 Letters Patent; Single Judge's order holding trust registration invalid for failure to hear tenants is sustained; no order as to costs.
Law Points
- Statutory purchase under Section 32 of Bombay Tenancy and Agricultural Lands Act
- 1948 vests ownership in tenant on Tillers' day and divests erstwhile landlord
- Tenant with pre-existing right is person interested entitled to hearing under Section 19 before registration of trust under Section 18 of Bombay Public Trusts Act
- 1950
- Letters Patent Appeal not maintainable without leave of single judge under clause 15 when appeal arises from appellate jurisdiction of District Court under Section 72 of Bombay Public Trusts Act
- Trust creation by person divested of title is invalid.
