Case Note & Summary
The dispute arose over agricultural land in village Gudha, originally used for common purposes such as 'gair mumkin rasta' and 'gao charand', later recorded as shamilat deh and vested in the Gram Panchayat under Section 3 of the Punjab Village Common Lands (Regulation) Act, 1953. Pursuant to the Haryana Municipal Common Land (Regulation) Act, 1974, the land was mutated in the name of the Notified Area Committee. After a Full Bench of the Punjab & Haryana High Court declared the 1974 Act void, the former owners, respondents before the Supreme Court, filed a suit seeking a declaration that the land reverted to them by virtue of the proviso to Rule 3 of the Punjab Gram Panchayat Rules, 1965. The trial court dismissed the suit, but the Additional District Judge, Karnal allowed the appeal, and the High Court dismissed the Notified Area Committee's second appeal in limine. The Supreme Court granted special leave to appeal under Article 136 of the Constitution. The core legal issues were whether the whole Sabha area needed to be included in the notified area for the Committee to claim the land, and whether the proviso to Rule 3 of the Punjab Gram Panchayat Rules, 1965 operated to divest the Gram Panchayat of land vested under the 1953 Act. The respondents argued that the whole Sabha area must have been included and that the proviso caused reversion to co-sharers and owners, and that the later omission of the proviso by notification on 22.12.1976 did not matter because the area had been declared notified on 6.10.1975. The appellants contended that Section 8(2) of the Punjab Gram Panchayat Act, 1952 only reduces the jurisdiction of the Notified Area Committee if part of the area is included, and that the proviso applied only to lands vested under the 1961 Act or managed under the East Punjab Consolidation Act, 1948. The Supreme Court accepted the appellants' submissions. On the first issue, it held that Section 8(2) of the Panchayat Act clearly provides that if only a part of a Gram Panchayat area is included in a municipality, cantonment, notified area or small town, the jurisdiction of the Notified Area Committee is reduced to that part. There was no evidence that the suit land was outside the included territory. Therefore, the first contention was not legally sound. On the second issue, the Court examined Rule 3 of the Punjab Gram Panchayat Rules, 1965 and the proviso. The proviso refers to land vested in the Panchayat under the Punjab Village Common Lands (Regulation) Act, 1961 or land managed under the East Punjab Consolidation and Prevention of Fragmentation Act, 1948. The suit lands vested under the 1953 Act. The Additional District Judge had reasoned that because Section 16 of the 1961 Act repealed the 1953 Act, the vesting could be deemed under the 1961 Act due to the saving clause. The Supreme Court rejected this: Section 16's proviso protects things done or actions taken under the repealed Act, not rights already vested by operation of the 1953 Act. Such acquired rights are protected by Section 4(c) of the Punjab General Clauses Act, 1898, which states that repeal does not affect any right acquired under the repealed enactment. Consequently, the Gram Panchayat's right over the land remained unaffected, and the proviso to Rule 3 did not operate. The Court held that neither the main part nor the proviso of Rule 3 could be used to claim reversion. Accordingly, the appeal was allowed, the impugned judgment was set aside, and the plaintiffs' suit was dismissed with no order as to costs.
Headnote
A) Municipal Law - Inclusion of Gram Panchayat Area in Notified Area - Effect of Partial Inclusion - Punjab Gram Panchayat Act, 1952, Section 8(2) - Respondents contended that for vesting whole Sabha area must be included in notified area. Court held that if only part of Gram Panchayat area is included, jurisdiction of Notified Area Committee is reduced to that part, and there was no evidence suit land was outside included territory - Held that first contention was not legally sound (Paras 3-6). B) Property Law - Vesting of Shamilat Deh Land - Effect of Repeal of 1953 Act by 1961 Act - Punjab Village Common Lands (Regulation) Act, 1953, Section 3; Punjab Village Common Lands (Regulation) Act, 1961, Section 16; Punjab General Clauses Act, 1898, Section 4(c) - Addl. District Judge held vesting continued only under 1961 Act due to saving clause, but Supreme Court held that proviso to Section 16 of 1961 Act does not apply to rights vested by operation of 1953 Act; such rights are protected by Section 4(c) of General Clauses Act - Held that repeal did not affect Gram Panchayat's acquired right over suit lands (Paras 7-9). C) Statutory Interpretation - Proviso to Rule 3 of Punjab Gram Panchayat Rules, 1965 - Scope Limited to Lands under 1961 Act and East Punjab Consolidation Act, 1948 - Punjab Gram Panchayat Rules, 1965, Rule 3 proviso - Proviso referred only to land vested under 1961 Act or managed under East Punjab Consolidation Act, not land vested under 1953 Act; suit lands vested under 1953 Act, hence proviso did not operate - Held that neither main part nor proviso of Rule 3 could be used to claim reversion; appeal allowed and suit dismissed (Paras 7-10).
Issue of Consideration
Whether land included in shamilat deh vested in Gram Panchayat under Section 3(a) of Punjab Village Common Land (Regulation) Act, 1953 got divested due to proviso to Rule 3 of Punjab Gram Panchayat Rules, 1965; whether whole Sabha area must be included in Notified Area Committee for vesting; whether omission of proviso by notification dated 22.12.1976 altered legal position after area declared notified area on 6.10.1975
Final Decision
Appeal allowed; impugned judgment set aside; suit filed by respondents dismissed; parties to bear own costs.
Law Points
- Repeal and saving clause under Section 16 of Punjab Village Common Lands (Regulation) Act
- 1961 does not affect rights vested under repealed 1953 Act
- Section 4(c) of Punjab General Clauses Act
- 1898 protects acquired rights
- Rule 3 of Punjab Gram Panchayat Rules
- 1965 proviso applies only to lands vested under 1961 Act or managed under East Punjab Consolidation Act
- 1948
- not lands vested under 1953 Act
- Inclusion of part of Gram Panchayat area in notified area only reduces jurisdiction under Section 8(2) of Punjab Gram Panchayat Act
- 1952


