Supreme Court Upholds Landlord's Selection Under Punjab Security of Land Tenures Act, 1953 as Reserved Area, Denying Tenant Purchase Right. Court Rules That Valid Reservation Under Section 5(1) Requires Patwari Verification and Section 5-B Selected Area Is Area Reserved Under the Act, Thus Barring Tenant's Claim Under Section 18.

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Case Note & Summary

The appeal arose from a writ petition dismissed in limine by the Punjab High Court, challenging the Financial Commissioner's order that denied a tenant's right to purchase agricultural land under the Punjab Security of Land Tenures Act, 1953. The tenant had been in continuous occupation of 49 bighas of land owned by the third respondent since 1950. He applied under Section 18 of the Act and Rule 23 for purchase of the land. The Assistant Collector allowed the application and fixed the price at Rs 20,630, payable in ten equal six-monthly instalments. The Collector affirmed this order on appeal. However, on revision, the Additional Commissioner took the view that the land had been selected by the landowner under Section 5-B, not reserved under Section 5(1), and therefore the tenant had no right to purchase under Section 18. The Financial Commissioner agreed, holding that no valid reservation under Section 5(1) had been made because the Patwari had not verified the particulars in the landowner's application. The tenant's writ petition under Article 226 was dismissed by the High Court, leading to the present appeal by special leave. The Supreme Court examined two contentions. First, whether the Financial Commissioner committed an error of law in finding no reservation under Section 5(1). The Court examined Section 5(1) read with Rules 3, 5 and 6 and held that a valid reservation only occurs when the Patwari verifies the particulars in the intimation form. Since there was no verification report on record, the Financial Commissioner's finding was not vitiated by error of law. Second, the Court considered the relationship between 'reserved area' and 'selected area' under Sections 5(1) and 5-B. It emphasized that the Act revolves around the concepts of 'permissible area' and 'surplus area'. A landowner may reserve land within the permissible area, and the balance is surplus area. If no reservation is made under Section 5(1), Section 5-B provides another opportunity to select permissible area. The Court noted that 'selected area' is not defined in the Act, indicating that the legislature did not introduce a new concept. Reservation and selection are convertible terms; one can reserve by selection and select by reservation. Therefore, the land selected under Section 5-B out of the permissible area is legitimately described as 'area reserved under the Act' for the purposes of Section 9(1)(i). Consequently, a tenant cannot claim purchase under Section 18 for such reserved area. The Court approved the decisions in Karam Singh v. Angrez Singh and Angrej Singh v. Financial Commissioner, Punjab. The appeal was dismissed, and the Financial Commissioner's order was upheld. The tenant had no right to purchase the land in question.

Headnote

A) Land Reforms - Reservation of Land by Landowner - Valid Reservation Requires Verification by Patwari - Punjab Security of Land Tenures Act, 1953, Sections 5(1), 5-B, Rules 3, 5, 6 - The landowner sent an application in prescribed form but no Patwari verification was on record - The court held that a valid reservation under Section 5(1) read with Rules 3, 5 and 6 only occurs when the Patwari verifies the particulars - Held that the Financial Commissioner's finding of no reservation under Section 5(1) was not vitiated by error of law (Paras Not mentioned).

B) Land Reforms - Selected Area under Section 5-B as Reserved Area - Tenant's Right to Purchase under Section 18 - Punjab Security of Land Tenures Act, 1953, Sections 5(1), 5-B, 9(1)(i), 18 - The Act revolves around permissible area and surplus area; reservation and selection involve the same process and are convertible terms - Although Section 9(1)(i) uses 'area reserved under the Act', the land selected under Section 5-B is included in that expression - Held that tenants cannot claim purchase under Section 18 for land included in the landowner's reserved area, and the appeal was dismissed (Paras Not mentioned).

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Issue of Consideration

Whether the Financial Commissioner erred in holding that there was no reservation under Section 5(1) of the Punjab Security of Land Tenures Act, 1953; and whether a landlord who selected area under Section 5-B could evict a tenant under Section 9(1)(i) thereby excluding the tenant's right to purchase under Section 18.

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Final Decision

The Supreme Court dismissed the appeal, holding that the Financial Commissioner's order was not vitiated by any error of law. The Court held that no valid reservation under Section 5(1) was established because the Patwari had not verified the particulars mentioned in the landowner's application, and that land selected under Section 5-B was to be treated as area reserved under the Act, which barred the tenant's right to purchase under Section 18. The Financial Commissioner's order accepting the revision and denying the appellant's purchase claim was upheld.

Law Points

  • Legal points not extracted
  • Valid reservation under Section 5(1) requires Patwari verification
  • Selected area under Section 5-B is reserved area
  • Tenant cannot purchase reserved area under Section 18
  • Reservation and selection are convertible terms
  • Surplus area defined as area other than reserved area
  • Writ jurisdiction limited to error of law apparent on record
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Case Details

1966 LawText (SC) (09) 36

Civil Appeal No. 708 of 1964

1966-10-25

Sinha, Bhuvneshwar P. (CJ), Bachawat, R.S., Shelat, J.M.

Citation not available, 1967 AIR 502, 1967 SCR (1) 926

Bhawani Lal, Mohan Lal Agarwal, Gopal Singh

Gurbax Singh

State of Punjab & Ors.

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Nature of Litigation

Civil appeal by special leave against the High Court's dismissal of a writ petition challenging the Financial Commissioner's order denying a tenant's right to purchase land under Section 18 of the Punjab Security of Land Tenures Act, 1953

Remedy Sought

The appellant sought quashing of the Financial Commissioner's order and a declaration that he, as a tenant in continuous occupation for six years, had the right to purchase 49 bighas of land under Section 18

Filing Reason

The Financial Commissioner held that the landowner had only selected the land under Section 5-B and had not reserved it under Section 5(1), thereby disentitling the tenant to purchase under Section 18; the High Court dismissed the writ petition in limine

Previous Decisions

Assistant Collector allowed the tenant's purchase application and fixed the price at Rs 20,630; Collector affirmed on appeal; Additional Commissioner reversed and referred the case to Financial Commissioner; Financial Commissioner accepted the revision, holding no reservation under Section 5(1) and that selection under Section 5-B barred the tenant's purchase right; High Court dismissed the writ petition in limine

Issues

Whether the Financial Commissioner committed an error of law in holding that the landowner had not reserved the land under Section 5(1) of the Punjab Security of Land Tenures Act, 1953 Whether a landowner who did not reserve area under Section 5(1) but selected area under Section 5-B could evict the tenant under Section 9(1)(i), and whether the tenant had a right to purchase the land under Section 18

Submissions/Arguments

Appellant contended that the Financial Commissioner committed an obvious error of law in holding that the third respondent had not reserved the land under Section 5(1) when in fact he had done so Appellant argued that a landlord who did not reserve any area under Section 5(1) but selected area under Section 5-B could not evict the tenant under Section 9(1)(i) and therefore the tenant retained the right to purchase under Section 18 Respondent/State and the landowner maintained that the land was selected under Section 5-B as permissible area, which constituted reserved area, thus excluding the tenant's purchase right under Section 18

Ratio Decidendi

A valid reservation of land by a landowner under Section 5(1) of the Punjab Security of Land Tenures Act, 1953 requires intimation to the Patwari in the prescribed form and verification of the particulars by the Patwari; without such verification there is no valid reservation. The expressions 'reservation' and 'selection' involve the same process and are convertible; land selected by a landowner under Section 5-B out of the permissible area is legitimately described as 'area reserved under the Act' for the purposes of Section 9(1)(i). Consequently, a tenant cannot claim to purchase such land under Section 18 because it is included in the landowner's reserved area.

Judgment Excerpts

A valid reservation can only be made by the land-owner under s. 5(1) of the Act, read with the rules made thereunder, when the particulars contained in the application sent by him to the Patwari were verified by the latter. The two concepts on which the entire Act revolves are the 'permissible area' and the 'surplus area'. The expressions 'reservation' and 'selection' involve the same process and indeed to some extent they are convertible for one can reserve land by selection and select land by reservation. The land selected by the landowner out of the permissible area can legitimately be described as the area reserved under the Act.

Procedural History

The tenant applied under Section 18 and Rule 23 to the Assistant Collector for purchase of 49 bighas of land. The Assistant Collector allowed the application and determined the price as Rs 20,630 payable in ten equal six-monthly instalments. The Collector, Ferozepore, confirmed this order on appeal. On a revision petition filed by the landowner, the Additional Commissioner took the view that the area was selected under Section 5-B, not reserved under Section 5(1), and referred the case to the Financial Commissioner. The Financial Commissioner agreed, held no reservation under Section 5(1) and no right to purchase under Section 18, and accepted the revision. The tenant filed a writ petition under Article 226 in the Punjab High Court, which was dismissed in limine. The tenant then appealed to the Supreme Court by special leave.

Acts & Sections

  • Punjab Security of Land Tenures Act, 1953 (Act No. 10 of 1953): 2(3), 2(4), 2(5-A), 5(1), 5-B, 5-C, 9(1)(i), 18, 19-B
  • Punjab Tenants (Security of Tenures) Act, 1950 (Act XXII of 1950), as amended by President's Act of 1951:
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