Supreme Court Upholds Discretionary Power of Military Estates Officer in Granting Leases under Rule 27 of Cantonment Land Administration Rules, 1937. Lease Regularisation for Old Grant Occupancy Land Is Not Mandatory, and High Court's Direction for Reconsideration by Respondents Was Affirmed.

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Case Note & Summary

The appellants, joint owners of Bungalow No. 45 in Kanpur Cantonment, sought a writ of mandamus to compel the military authorities to execute a lease under Rule 27 of the Cantonment Land Administration Rules, 1937 for regularisation of their occupancy land held on old grant terms. The property was recorded as occupancy land on old grant terms, and the appellants had acquired it through sale deeds in 1958. After mutation in 1961, they applied for regularisation of their possession under Rule 27, but the Defence Ministry refused to grant a lease under Rule 27 and Schedule VII, instead offering to consider their case under Rule 28(1) and Schedule VIII. The appellants filed a writ petition in the Allahabad High Court seeking a direction for lease under Rule 27. A single Judge directed the respondents to grant the lease, rejecting the respondents' plea that Rules 16-26 and 28 applied. On appeal, the Division Bench agreed that those rules were inapplicable but held that Rule 27 did not mandate a lease in all cases; it vested discretion in the authorities and gave no absolute right to the appellants. The Division Bench set aside the single Judge's direction and ordered the respondents to reconsider the request in accordance with law. The appellants appealed to the Supreme Court by certificate under Article 133(1)(b) of the Constitution. The only question for consideration was whether the appellants were entitled to a direction for issuance of a lease under Rule 27. The Supreme Court examined Rule 27, which stated that the Military Estates Officer 'may' grant a lease with the approval of the Central Government or other appointed authority. The Court held that the use of 'may' clearly conferred discretion, and the requirement of approval by another authority reinforced the discretionary nature of the power. The Court distinguished Sardar Govindrao v. State of Madhya Pradesh, noting that the High Court's direction for reconsideration was correct. The Supreme Court affirmed the Division Bench's order and directed that the appellants' application be decided afresh, keeping in view that the power to grant a lease under Rule 27 was discretionary, but refusal should only be in suitable cases with sufficient reasons.

Headnote

A) Cantonment Land Administration - Lease Regularisation of Old Grants - Discretionary Power under Rule 27 - Cantonment Land Administration Rules, 1937, Rule 27 and Schedule VII - The Military Estates Officer's power to grant a lease for regularisation of old grants was discretionary, as indicated by the word 'may' and the requirement of approval by the Central Government or other appointed authority; the officer was not bound to grant a lease in every case. The Supreme Court upheld the High Court's direction for reconsideration of the appellants' application in accordance with law, holding that the power must be exercised on a case-by-case basis and refusal should occur only in suitable cases with sufficient reasons (Paras 4-5).

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Issue of Consideration

Whether the appellants were entitled to a direction against the respondents to issue a lease to them under Rule 27 and Schedule VII of the Cantonment Land Administration Rules, 1937, and whether Rule 27 conferred a mandatory or discretionary power.

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Final Decision

The Supreme Court held that Rule 27 conferred a discretionary power on the Military Estates Officer, subject to the approval of the Central Government or other appointed authority. The Court affirmed the Division Bench's direction that the respondents reconsider the appellants' application for a lease under Rule 27 and Schedule VII in accordance with law, deciding it afresh with the understanding that refusal should only be in suitable cases with sufficient reasons.

Law Points

  • Power to grant lease under Rule 27 is discretionary
  • use of 'may' confers discretion
  • approval of Central Government reinforces discretionary nature
  • no absolute right to lease for old grant holders
  • refusal must be based on sufficient reasons
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Case Details

1971 LawText (SC) (03) 26

Civil Appeal No. 2246 of 1969

1971-03-26

Bhargava, Vishishtha, Shelat, J.M., Dua, I.D.

1971 AIR 1599, 1971 SCR 230

Yogeshwar Prasad, S. K. Bagga, S. Bagga, V. A. Seyid Muhammad, S. P. Nayar

Sahodara Devi & Ors.

Government of India & Anr.

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Nature of Litigation

Writ petition under Article 226 of the Constitution seeking a writ of mandamus directing military authorities to execute a lease under Rule 27 of the Cantonment Land Administration Rules, 1937 for regularisation of old grant occupancy land.

Remedy Sought

The appellants sought a direction from the court to the respondents to issue a lease under Rule 27 and Schedule VII of the Cantonment Land Administration Rules, 1937.

Filing Reason

The Defence Ministry and the Military Estates Officer refused to grant a lease under Rule 27, instead offering to consider the case under Rule 28(1) and Schedule VIII, which the appellants contested.

Previous Decisions

A single Judge of the Allahabad High Court directed the respondents to grant the lease. On appeal, a Division Bench set aside that direction and ordered the respondents to reconsider the appellants' request in accordance with law, holding that Rule 27 did not create a mandatory obligation.

Issues

Whether Rule 27 of the Cantonment Land Administration Rules, 1937 conferred a mandatory or discretionary power on the Military Estates Officer to grant a lease for regularisation of old grants. Whether the appellants were entitled to a writ of mandamus directing the respondents to issue a lease under Rule 27 and Schedule VII.

Submissions/Arguments

The appellants argued that Rule 27 should be treated as mandatory, relying on Sardar Govindrao v. State of Madhya Pradesh, and that they had a right to a lease for regularisation of their old grant. The respondents contended that the power under Rule 27 was discretionary, subject to approval by the Central Government, and that the appellants had no absolute right to a lease; they also argued that the case fell under Rules 16-26 and 28, not Rule 27.

Ratio Decidendi

The use of the word 'may' in Rule 27 and the requirement of approval by the Central Government or other authority indicated that the power to grant a lease for regularisation of old grants was discretionary, not mandatory. The Military Estates Officer was not bound to grant a lease in every case; the discretion had to be exercised on a case-by-case basis, and refusal should be based on sufficient reasons in suitable cases.

Judgment Excerpts

Rule 27 only confers a power in general on the Military Estates Officer to grant leases and, by using the word 'may', it clearly gives him discretion to grant leases in suitable cases. The power of the Military Estate Officer being subject to such discretionary approval or disapproval of another authority cannot possibly be held to be required to be exercised in all cases without any discretion. The power to grant a lease under r. 27 is discretionary, but the refusal should only be in suitable cases where sufficient reasons exist for the purpose.

Procedural History

The appellants filed a writ petition under Article 226 of the Constitution in the Allahabad High Court on 18 March 1967. A single Judge heard the petition and directed the respondents to grant the lease as prayed. The respondents appealed to a Division Bench, which agreed that Rules 16-26 and 28 were inapplicable but held that Rule 27 was discretionary and gave no absolute right to the appellants. The Division Bench set aside the single Judge's direction and ordered the respondents to reconsider the request in accordance with law. The appellants then appealed to the Supreme Court by certificate under Article 133(1)(b) of the Constitution.

Acts & Sections

  • Cantonment Land Administration Rules, 1937: Rule 27, Schedule VII
  • Constitution of India: Article 226, Article 133(1)(b)
  • Cantonments Act, 1924: Section 280
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