Supreme Court Dismisses Appeals Against Karnataka High Court Order Upholding Cancellation of Alienation of Assigned Land. Alienation of Land Granted to Scheduled Caste Assignee Was Held Void Under Section 23 of Indian Contract Act, 1872 and Rule 43(5) of Revenue Code as It Violated Constitutional Scheme of Economic Empowerment.

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Case Note & Summary

The case involved appeals before the Supreme Court of India against concurrent orders of the Karnataka High Court and revenue authorities setting aside the alienation of government land assigned to a Scheduled Caste person. The original assignee, Dasana Rangaiah Bin Dasaiah, was granted two acres of land in Survey No. 6 of Beekanahalli village, Chikmangalur Taluk and District, on 16 November 1951, for personal cultivation. On 16 October 1968, the appellant claimed to have purchased the land from the sons and widow of the assignee. On 27 February 1987, one of the assignee's sons represented to the Assistant Commissioner that the alienation violated the Scheduled Castes and Scheduled Tribes Prohibition of Certain Lands Act, 1975. The Assistant Commissioner set aside the sale as violative of Rule 43(5) of the Revenue Code, and the appellate authority confirmed this on 17 November 1987. The High Court dismissed the writ petition and writ appeal, leading to the Supreme Court appeals. The appellant contended that the original grant prohibited alienation only for ten years, that the Act had no retrospective operation, and that he had perfected title by adverse possession after over twelve years of uninterrupted possession. The State argued that the cultivation chit imposed an absolute prohibition on alienation, title remained with the Government, and adverse possession could not run against the State without a specific plea of hostile claim. The Supreme Court examined the constitutional scheme underlying grants to Scheduled Castes and Scheduled Tribes, citing Articles 14, 21, 38, 39(b), and 46 read with the Preamble and principles from Murlidhar Dayandeo Kesekar v. Vishwanath Pandu Barde & Anr. The Court held that the assignment was intended for economic empowerment and personal cultivation, and any alienation was void under Section 23 of the Indian Contract Act, 1872 as opposed to public policy. It affirmed that Rule 43(5) of the Revenue Code imposed an absolute prohibition on alienation of assigned lands, agreeing with the High Court's view in Smt. Ammanamma v. Venkataiah & Ors. On adverse possession, the Court found that the appellant had not disclaimed derivative title or pleaded hostile possession to the State's knowledge, and therefore no adverse possession arose. Consequently, the appeals were dismissed without costs.

Headnote

A) Constitutional Law - Economic Empowerment and Directive Principles - Alienation of land assigned to Scheduled Castes/Scheduled Tribes for personal cultivation is void as opposed to public policy and constitutional scheme - Constitution of India, Articles 14, 21, 38, 39(b), 46 read with Preamble; Indian Contract Act, 1872, Section 23 - The Court analysed the nature of the grant of two acres in Survey No. 6 of Beekanahalli village to a Scheduled Caste assignee on 16-11-1951. It held that the grant was intended to secure economic justice and empowerment of weaker sections under the Directive Principles, and any alienation of such assigned land is void under Section 23 of the Contract Act as violative of constitutional policy. Held that refusal to permit alienation effectuates the constitutional policy of economic empowerment (Paras Not mentioned).

B) Property Law - Alienation of Assigned Lands - Rule 43(5) of Revenue Code imposes absolute prohibition on alienation of lands granted to depressed classes - Revenue Code, Rule 43(5) - The original grantee was required to personally cultivate the assigned land and could only encumber it for bona fide agricultural improvements; the land could not be alienated. The Court endorsed the High Court's decision in Smt. Ammanamma v. Venkataiah & Ors. that the prohibitory clause is absolute and cannot be overridden by any contrary grant; therefore the sale by the assignee's heirs to the appellant was void and conveyed no title. Held that Rule 43(5) clearly prohibits alienation and the alienation is illegal (Paras Not mentioned).

C) Limitation - Adverse Possession - A transferee under a void alienation cannot claim adverse possession against the State without disclaiming derivative title and pleading hostile claim to State's knowledge - General Principles of Limitation - The appellant had come into possession under derivative title from the original grantee who had no right to alienate. The Court held that to succeed on adverse possession against the State, the appellant must have disclaimed that title and asserted possession hostile to the State's knowledge, but no such plea or evidence was adduced; hence adverse possession was not established and no remit to the High Court was needed. Held that the appeals were dismissed (Paras Not mentioned).

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Issue of Consideration

Whether alienation of land assigned to a Scheduled Caste person under Rule 43(5) of the Revenue Code was void and whether the appellant purchaser could claim adverse possession against the State.

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Final Decision

The Supreme Court dismissed all appeals without costs, holding that the alienation of assigned land was void under Rule 43(5) of Revenue Code and Section 23 of Indian Contract Act, 1872, and that the appellant had not established adverse possession against the State.

Law Points

  • Assigned land granted to Scheduled Castes and Scheduled Tribes for personal cultivation cannot be alienated
  • alienation of such assigned land is void under Section 23 of Indian Contract Act
  • 1872
  • Rule 43(5) of Revenue Code imposes absolute prohibition on alienation of assigned lands
  • adverse possession against State requires disclaimer of derivative title and hostile claim to State's knowledge
  • economic empowerment of weaker sections is a constitutional scheme under Articles 14
  • 21
  • 38
  • 39(b)
  • 46 read with Preamble
  • limitation does not run against State for void alienation
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Case Details

1995 LawText (SC) (09) 83

Civil Appeal Nos. 8507, 8508 & 8510/95 (Arising out of SLP (C) Nos. 57/91, 11397/89 and 17011/90)

1995-09-08

K. Ramaswamy, B.L. Hansaria

1995 SCC (6) 309, JT 1995 (7) 93, 1995 SCALE (5)620

Ravi P. Wadhwani, Veerappa

R. Chandevarappa etc. etc.

State of Karnataka & Ors. etc. etc.

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Nature of Litigation

Appeals against concurrent orders setting aside alienation of government assigned land to a Scheduled Caste assignee.

Remedy Sought

Appellant purchaser sought restoration of the alienation and setting aside of revenue and High Court orders cancelling the sale.

Filing Reason

State authorities initiated action on complaint that original assignee's heirs alienated assigned land in violation of Rule 43(5) of Revenue Code and the Scheduled Castes and Scheduled Tribes Prohibition of Certain Lands Act, 1975.

Previous Decisions

Assistant Commissioner set aside sale; appellate authority confirmed on 17-11-1987; High Court of Karnataka dismissed writ petition and writ appeal; Division Bench in W.A. No.950/89 confirmed on 23-06-1989.

Issues

Whether alienation of land assigned to a Scheduled Caste person for personal cultivation was void under Rule 43(5) of Revenue Code and Section 23 of Indian Contract Act, 1872. Whether the appellant purchaser could claim adverse possession against the State after remaining in possession for more than 12 years under a derivative title from the original assignee.

Submissions/Arguments

Appellant contended that the original grant prohibited alienation only for ten years and hence alienation after 17 years was valid; the Act had no retrospective operation and prior alienation could not be set aside; appellant had perfected title by adverse possession through uninterrupted possession for over 12 years. State contended that the cultivation chit imposed absolute prohibition on alienation, title always remained with Government, limitation would not run against the Government for void alienation, and appellant never pleaded hostile claim against State to establish adverse possession.

Ratio Decidendi

Assigned lands granted to Scheduled Castes/Scheduled Tribes for personal cultivation are subject to absolute prohibition on alienation under Rule 43(5) of Revenue Code; any alienation is void under Section 23 of Indian Contract Act, 1872 as opposed to public policy and constitutional scheme of economic empowerment under Articles 14, 21, 38, 39(b), 46 read with Preamble. A transferee under such void alienation cannot claim adverse possession against the State without disclaiming derivative title and asserting hostile possession to State's knowledge.

Judgment Excerpts

The alienation was declared to be void under section 23 of the Contract Act being violative of the constitutional scheme of economic empowerment to accord equality of status, dignity of persons and economic empowerment. Rule 43(5) of the Revenue Code clearly prohibits alienation of assigned lands. If the appellant intends to plead adverse possession as against the State, he must disclaim his title and plead his hostile claim to the knowledge of the State and that the State had not taken any action thereon within the prescribed period. The appeals are accordingly dismissed. But in the circumstances, without costs.

Procedural History

Grant of two acres in Survey No.6 Beekanahalli village on 16-11-1951; appellant purchased from legal heirs of assignee on 16-10-1968; one of assignee's sons represented to Assistant Commissioner on 27-02-1987 alleging violation; Assistant Commissioner set aside sale as violative of Rule 43(5); appellate authority confirmed on 17-11-1987; writ petition and writ appeal dismissed; High Court Division Bench in W.A. No.950/89 on 23-06-1989 confirmed; Supreme Court granted leave and heard appeals.

Acts & Sections

  • Constitution of India: Articles 14, 21, 38, 39(b), 46; Preamble
  • Indian Contract Act, 1872: Section 23
  • Revenue Code: Rule 43(5)
  • Scheduled Castes and Scheduled Tribes Prohibition of Certain Lands Act, 1975:
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