Case Note & Summary
The appeals before the Supreme Court arose from a common judgment dated 11, 15, 16, 17.02.2005 delivered by the High Court of Judicature at Bombay in several Second Appeals concerning recission of land grants relating to properties in the Union Territory of Dadra and Nagar Haveli. The dispute traced back to the erstwhile Portuguese legal regime. Under the Organic Structure of the Lands of Nagar Haveli (OA), promulgated on 22.09.1919, agricultural lands in Nagar Haveli were granted on perpetual lease rights known as 'Alvaras'. These Alvaras, issued between 1923 and 1930 to the appellants' predecessors-in-title, were governed by the contract of emphyteusis, which transferred beneficial ownership to the grantee subject to an annual payment known as emphyteutic pension or canon. Article 7 of the OA made the Portuguese Civil Code applicable to concession contracts with certain modifications, including that rent be paid in cash, the contract be made administratively, and default in rent gave the State a right to produce and subsequently the immovable property under Articles 880 and 887 of the Civil Code. Article 8 required emphyteutic pensions to be paid in the taluk revenue office from November 1 to March 31 each year. Article 11 permitted Alvara holders to transfer, mortgage, or encumber their beneficial ownership, with transferees subrogated to the same obligations. Article 12 imposed a clear duty to cultivate land, and provided for rescission of the concession contract without indemnity or formal procedure for various failures: not starting agricultural works within one year, not bringing one-fourth of cultivable land under regular cultivation within two years, not increasing cultivated area annually by specified fractions, or not completing building work within time. Article 16 dealt with removal of building materials upon rescission. The appellants claimed that despite poor soil quality, their predecessors brought 5/8th of the land under regular cultivation, growing low-yield grains like Nagli, Kodra, and Varai. After liberation from Portuguese rule in 1954, Dadra and Nagar Haveli was integrated into the Union of India under the Constitution (Tenth Amendment) Act, 1961 and became a Union Territory on 10.08.1961. Following a land survey, the Indian administration recorded the appellants' land holdings in revenue registers. The Collector, by order dated 24.09.1965, sanctioned mutation of Alvara lands in favour of family members pursuant to a partition deed. However, on 28.10.1969, the Collector issued orders rescinding the grants on grounds of alleged breach of conditions under Article 12 of the OA. The appellants challenged the Collector's order before the High Court through writ petitions, contending that they were denied an opportunity of being heard. Meanwhile, the President of India promulgated the Dadra and Nagar Haveli Land Reforms Regulation, 1971 on 08.12.1971, providing for abolition of Alvara and Terem tenures, conferring occupancy rights, imposing ceiling, and regulating landlord-tenant relations. The provided judgment text is incomplete and does not include the High Court's detailed findings or the Supreme Court's analysis, final decision, or operative directions. Therefore, the ultimate outcome of the appeals cannot be stated based on the excerpt available.
Headnote
A) Property Law - Emphyteusis and Alvara Grants - Nature of Rights - Portuguese Civil Code, 1867, Decree No. 3602 of 1917, Government Regulation No. 985 (Organic Structure of the Lands of Nagar Haveli), 1919 - Alvara grants were conferred as perpetual lease rights under Portuguese administration between 1923 and 1930, subject to payment of fixed assessment (land revenue); these rights were expressly transferable, inheritable and capable of partition, and recognized by subsequent Indian administration. (Paras 4.1-4.5) B) Administrative Law - Rescission of Land Grants - Grounds for Rescission - Government Regulation No. 985 (Organic Structure of the Lands of Nagar Haveli), 1919, Article 12 - Article 12 empowered the Administration to rescind a contract of concession without indemnity and without formal procedure if agricultural works were not started within one year, if one-fourth of cultivable land was not brought under regular cultivation within two years, or if annual incremental cultivation obligations were not met; Collector issued rescission order dated 28.10.1969 on grounds of alleged breach of these conditions. (Paras 4.8, 4.13) C) Constitutional Law - Integration of Union Territory - Constitutional Status - Constitution (Tenth Amendment) Act, 1961, Constitution of India, Article 240 - Dadra and Nagar Haveli was liberated from Portuguese domination in 1954 and integrated into Union of India as a Union Territory with effect from 10.08.1961; President promulgated Dadra and Nagar Haveli Land Reforms Regulation, 1971 under Article 240. (Paras 4.11, 4.14) D) Land Reforms - Abolition of Tenures - Effect on Alvara Rights - Dadra and Nagar Haveli Land Reforms Regulation, 1971, Section 4 - The 1971 Regulation provided for abolition of Alvara and Terem tenures, conferment of occupancy rights on holders and tenants, imposition of ceiling on agricultural land, acquisition and distribution of excess land, and regulation of landlord-tenant relations. (Para 4.14)
Issue of Consideration
Whether the Collector's order dated 28.10.1969 rescinding Alvara grants under Article 12 of the Organic Structure of the Lands of Nagar Haveli was valid; whether Alvara holders were entitled to hearing before rescission; interpretation of Portuguese-era legal provisions governing emphyteusis and Alvara rights; effect of Dadra and Nagar Haveli Land Reforms Regulation, 1971 on pending disputes
Final Decision
Not mentioned in provided text; the judgment excerpt ends before the final reasoning and operative directions.
Law Points
- Portuguese Civil Code
- 1867 governed contracts of emphyteusis
- Decree No. 3602 of 1917 regulated land grants in Portuguese territories
- Government Regulation No. 985 (Organic Structure of the Lands of Nagar Haveli
- 1919) provided for Alvara grants as perpetual
- transferable
- inheritable tenures subject to cultivation conditions
- Article 12 of OA permitted rescission without indemnity for failure to cultivate
- Article 7 of OA incorporated Portuguese Civil Code provisions with modifications
- Article 8 prescribed payment of emphyteutic pensions
- Article 11 allowed transfer and mortgage of beneficial ownership with subrogation of obligations
- Article 16 provided for removal of building materials after rescission
- Dadra and Nagar Haveli Land Reforms Regulation
- 1971 abolished Alvara and Terem tenures and conferred occupancy rights
- Constitution (Tenth Amendment) Act
- 1961 integrated Dadra and Nagar Haveli as Union Territory
- Article 240 of Constitution empowered President to make regulations for Union Territory
