Supreme Court Dismisses Plaintiff-Appellant's Declaration Suit in Khoti Land Transfer Dispute Due to Lack of Title. Occupancy Rights in Khoti Land Could Not Be Transferred Without Khote Consent Prior to April 1946 Under Section 9 of Khoti Settlement Act, 1880, and the 1945 Sale Without Consent Conveyed No Title; as the First 1892 Sale If Voidable Had Not Been Avoided by Khote, It Validly Transferred Title to Respondent's Predecessor.

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Case Note & Summary

The appeal arose from a suit filed by Daji Krishnaji Desai Tambulkar, the plaintiff-appellant, seeking a declaration that the suit property at Mouje Digvale in Ratnagiri district, a village held by khots, was owned by him, was under his management, and that the defendants had no right or interest therein. The plaintiff claimed title on the basis of a sale deed executed in his favour by Sitabai on February 10, 1945. Sitabai was the widow of Vishram Anna Shirsat, who succeeded Ram Raghu Shirsat, the original occupancy tenant of the land. Ram Raghu Shirsat had sold the occupancy rights to Laxman Chandba Raut by a deed dated March 8, 1892. Through a compromise and subsequent sale deeds dated December 14, 1903 and February 13, 1904, Dattatraya Bhikaji Khot Kulkarni, paternal uncle of respondent no.1, purchased the shares; after his death respondent no.1 became owner of the property. Respondents nos. 2 to 4 were tenants of respondent no.1. The land in suit was khoti land as defined in clause (10) of Section 3 of the Khoti Settlement Act, 1880. It was undisputed that Ram Raghu Shirsat was the occupancy tenant and that he could not transfer his tenancy right without the consent of the khot. It was also admitted that neither the 1892 sale in favour of respondent no.1's predecessor nor the 1945 sale in favour of the appellant had obtained the khot's consent. The plaintiff alleged that the 1892 sale deed was void on account of absence of consent, and therefore he had title under the 1945 sale. Respondent no.1 contended that Ram Raghu Shirsat lost his rights after executing the 1892 sale deed, and so the plaintiff obtained no title under the 1945 sale. The trial court dismissed the suit, holding the 1892 sale deed good and binding. On appeal, the Assistant Judge reversed the decree and decreed the suit, holding the 1892 transfer void and that the plaintiff got good title under the 1945 sale in view of the amendment of Section 9 by Section 31 of the Bombay Tenancy Act, 1939. Respondent no.1 preferred a second appeal to the High Court, which set aside the Assistant Judge's decree, restored the trial court's decree, and dismissed the suit, holding that the 1945 sale was also hit by Section 9 and that the 1892 transfer was not void. The Supreme Court noted that Section 31 of the Bombay Tenancy Act, 1939 amended Section 9 of the Khoti Settlement Act to state that the rights of khots and privileged occupants shall be heritable and transferable, but the Bombay Tenancy Act, 1939 received assent on April 2, 1940 and came into force only in April 1946 by notification. Therefore, Section 9 as it stood on February 10, 1945 made the rights of permanent tenants non-transferable without the consent of the khot. Both the 1945 sale in favour of the appellant and the 1892 sale in favour of respondent no.1's predecessor-in-interest were thus hit by the provisions of Section 9. The court held it unnecessary to determine whether the transfer without consent was absolutely void or merely voidable at the instance of the khot. If void, the sale in favour of the appellant did not convey any title. If merely voidable, the first sale in 1892 was not avoided by the khot and therefore validly conveyed title to respondent no.1's predecessor-in-interest, leaving the 1945 transferor with no title to convey. In either case the plaintiff failed to prove his title. The Supreme Court accordingly dismissed the appeal with costs, affirming the High Court's dismissal of the suit.

Headnote

A) Property Law - Khoti Land Tenure - Transferability of Occupancy Rights - Khoti Settlement Act, 1880, Sections 3, 9 and Bombay Tenancy Act, 1939, Section 31 - Section 9 as it stood prior to April 1946 prohibited transfer of a permanent tenant's occupancy rights without consent of the khot; Bombay Tenancy Act, 1939 amended Section 9 to make rights heritable and transferable, but only effective from April 1946. Both sale deeds of 1892 and 1945 executed without khot's consent were therefore hit by Section 9. Held that the 1945 sale did not confer valid title on the appellant. (Paras 1-3)

B) Property Law - Void vs Voidable Transfer - Effect on Subsequent Sale - Khoti Settlement Act, 1880, Section 9 - The court held it unnecessary to decide whether transfer without consent was void or voidable; if void, plaintiff got no title; if voidable at khot's instance and not avoided, the first sale of 1892 validly conveyed title to respondent's predecessor, leaving transferor with no title to convey in 1945. Held that in either case plaintiff failed to prove title and appeal dismissed. (Paras 1-3)

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Issue of Consideration

Whether transfers of occupancy rights in khoti land made without khot's consent prior to April 1946 were void or voidable and whether the 1945 sale deed in favour of the appellant conferred valid title when an earlier 1892 sale without consent had already been made to the respondent's predecessor.

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Final Decision

Appeal dismissed with costs; High Court judgment dismissing suit affirmed. Plaintiff failed to prove title because both sales of 1892 and 1945 lacked khot's consent, and whether the transfer was void or voidable, the plaintiff acquired no title.

Law Points

  • Prior to April 1946
  • Section 9 of Khoti Settlement Act
  • 1880 prohibited transfer of occupancy rights in khoti land without khot's consent
  • Section 31 of Bombay Tenancy Act
  • 1939 amended Section 9 but came into force only in April 1946
  • a sale without required consent does not confer title if void
  • if voidable at khot's instance and not avoided the first valid sale leaves transferor with no title to convey
  • court need not decide void or voidable if outcome same
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Case Details

1961 LawText (SC) (04) 70

Civil Appeal No. 90 of 1956

1961-04-12

Raghubar Dayal, K. Subbarao, J.R. Mudholkar

1961 AIR 1564, 1962 SCR (1) 905

M. S. K. Sastri, A. G. Ratnaparkhi

Daji Krishnaji Desai Tambulkar

Ganesh Vishnu Kulkarni and others

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Nature of Litigation

Civil suit for declaration of ownership and possession of khoti land; appeal against High Court dismissal.

Remedy Sought

Plaintiff-appellant sought declaration that the suit property was owned by him, was under his management, and that defendants had no right or interest therein, based on title from a sale deed dated February 10, 1945.

Filing Reason

The plaintiff claimed that the prior sale deed of 1892 by the original occupancy tenant to respondent's predecessor without khot's consent was void, so the 1945 sale to him passed valid title; respondent disputed this.

Previous Decisions

Trial court dismissed suit, holding 1892 sale deed good and binding. Assistant Judge reversed and decreed suit, holding 1892 transfer void and plaintiff obtained title under 1945 sale due to Section 31, Bombay Tenancy Act, 1939. High Court set aside Assistant Judge decree and restored trial court dismissal, holding 1945 sale also hit by Section 9 and 1892 transfer not void.

Issues

Whether transfer of occupancy rights in khoti land without khot's consent prior to April 1946 was prohibited under Section 9 of Khoti Settlement Act, 1880. Whether such transfer was void or voidable at khot's instance, and its effect on the subsequent sale deed of 1945.

Submissions/Arguments

Appellant argued that the sale deed dated March 8, 1892 in favour of respondent no.1's predecessor-in-interest was void as it was executed without the consent of the khot, and therefore no title passed to that predecessor, so the 1945 sale in his favour was valid. Respondent no.1 contended that Ram Raghu Shirsat lost his rights in the property after executing the 1892 sale deed, and therefore the plaintiff obtained no title under the 1945 sale because his transferor had no title to convey.

Ratio Decidendi

A transfer of occupancy rights in khoti land without the khot's consent prior to April 1946 was prohibited by Section 9 of the Khoti Settlement Act, 1880. When determining title in a later sale, the court need not decide whether such a transfer is void or voidable: if void, no title passes; if voidable at the khot's instance and not avoided, the first sale validly conveys title to the first transferee, leaving the transferor with no title to convey later. Consequently, where both the first and second sales lacked consent, the later transferee cannot prove title.

Judgment Excerpts

The rights of khots and privileged occupants shall be heritable and transferable. It is therefore not necessary to determine the question whether the sale was absolutely void or voidable as held by the Court below, as neither of the two sales has been challenged by the khot whose consent for the transfer was necessary. If such a transfer is void, the sale in favour of the appellant did not convey any title to him. If such a sale was merely voidable at the instance of the khot, the first sale in favour of the respondent no. 1’s predecessor-in-interest was not avoided by the khot, and therefore validly conveyed title to him. We accordingly dismiss this appeal with costs.

Procedural History

Plaintiff filed suit for declaration of title. Trial court dismissed suit. On first appeal, Assistant Judge reversed trial court and decreed suit. Respondent preferred second appeal to High Court of Bombay; High Court set aside Assistant Judge's decree and restored trial court's dismissal. Plaintiff appealed to Supreme Court by special leave; Supreme Court dismissed appeal with costs.

Acts & Sections

  • Khoti Settlement Act, 1880 (Bom. Act 1 of 1880): 3, 9
  • Bombay Tenancy Act, 1939 (Bom. Act XXIX of 1939): 31
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