High Court of Bombay Allows Second Appeal in Evacuee Property and Tenancy Rights Dispute. Civil Court Jurisdiction Not Barred Where Procedural Violations Under Section 12 of Administration of Evacuee Property Act, 1950 Alleged and Injunction Could Have Been Granted to Tenant Purchaser.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The litigation arose from a dispute over agricultural land bearing Survey No. 316/1 (Gat No.807/1) at Mouza Ghusar, Tahsil Akola, involving competing claims of a tenant purchaser under the Maharashtra Tenancy and Agricultural Lands (Vidarbha Region) Act, 1958 and an allottee under the Displaced Persons (Compensation and Rehabilitation) Act, 1954. The original plaintiffs (appellants) claimed ownership as legal representatives of Narhari Bhonaji Behare, who was the lessee of M/s Mauladin Ayub Kacchhi Firm. The Agricultural Land Tribunal fixed purchase price on 25.5.1968, and a certificate under Section 43 of the Act of 1958 was issued on 11.03.1974. The land was declared evacuee property by the Deputy Custodian by order dated 21.06.1951 under Section 7 of the Administration of Evacuee Property Act, 1950, and the interest of the evacuee partner was separated. The Deputy Custodian allotted the property to displaced persons including Shri Adumal Morandamal, whose legal representative defendant No.3 Bhojraj claimed possession. The allottee could not get possession and filed Writ Petition No. 3039 of 1985, leading to a direction to hand over possession by 31.03.1993. The Tahsildar issued notices dated 21.09.1992 and 22.09.1992 to the plaintiffs to hand over possession, prompting them to file a civil suit for declaration of ownership and permanent injunction against the State of Maharashtra, Tahsildar, and the allottee. The defendants did not file written statements; defendant No.3 filed a reply to temporary injunction, contending that the civil court lacked jurisdiction and that possession should be given to him. The parties agreed to decide the matter on documents without oral evidence. The Trial Court dismissed the suit holding that the civil court had no jurisdiction because the custodian was entitled to decide allotment and Section 46 of the Act of 1950 and Section 36 of the Act of 1958 barred jurisdiction. The First Appellate Court dismissed the appeal, holding that although civil court jurisdiction could be available if the procedure was not followed, non-service of notice alone did not give a cause of action, relying on Shreesam Yeshwant Patil and others. In the Second Appeal, the High Court framed two substantial questions: whether prayer for injunction could have been granted and whether the lower courts erred in not considering the effect of Section 12 of the Administration of Evacuee Property Act, 1950. The High Court examined the statutory provisions regarding bar of jurisdiction under Section 46 of the Act of 1950 and Section 36 of the Act of 1954, and noted the tension between the rights of the tenant purchaser and the displaced person allottee. The Court observed that the displaced person never got the land, indicating lack of coordination and insensitivity by authorities, and that the constitutional court could not shut its eyes to this situation. The Court answered both substantial questions in the affirmative, holding that the prayer for injunction could have been granted and that the lower courts erred in not considering the effect of Section 12. Consequently, the second appeal was allowed and the impugned judgments were set aside, with the suit being decreed in favour of the plaintiffs.

Headnote

A) Civil Procedure - Jurisdiction of Civil Court - Bar under Section 46 of Administration of Evacuee Property Act, 1950 - Civil court barred from deciding whether property is evacuee, right or interest in evacuee property, legality of custodian action; however procedural violations can be examined - Administration of Evacuee Property Act, 1950, Sections 28, 46 - Lower courts held civil court lacked jurisdiction solely on Section 46, but High Court observed that jurisdiction is not barred where procedure adopted by custodian is alleged to be inconsistent with statutory procedure. Held that lower courts erred in not considering effect of Section 12 (Paras 6-7, 11-12).

B) Evacuee Property - Notice Requirement - Non-service of notice under Section 12 invalidates declaration and removes bar under Section 46 - Administration of Evacuee Property Act, 1950, Section 12 - First Appellate Court recognized that absence of notice makes declaration without jurisdiction but failed to grant relief; High Court framed substantial question whether lower courts erred in not considering effect of Section 12 and answered in affirmative. Held that effect of Section 12 must be considered (Paras 6-7).

C) Tenancy Law - Rights of Tenant Purchaser - Ownership certificate under Maharashtra Tenancy and Agricultural Lands (Vidarbha Region) Act, 1958 entitles tenant to protect possession - Maharashtra Tenancy and Agricultural Lands (Vidarbha Region) Act, 1958, Sections 36, 43, 46 - Plaintiffs' predecessor was lessee, purchase price fixed on 25.5.1968, and Section 43 certificate issued on 11.03.1974; Tahsildar's notices to hand over possession threatened their ownership. High Court framed question whether prayer for injunction could have been granted and answered in affirmative. Held that injunction could have been granted to protect tenant purchaser's rights (Paras 7, 10).

D) Displaced Persons - Rehabilitation and Compensation - Allottee under Displaced Persons (Compensation and Rehabilitation) Act, 1954 did not receive possession despite allotment; court noted irony and need to coordinate relief while protecting other stakeholders - Displaced Persons (Compensation and Rehabilitation) Act, 1954, Section 36 - The displaced person and his legal representative never got the land despite allotment and writ direction; High Court observed that constitutional court cannot shut its eyes to this situation. Held that necessary orders within appellate jurisdiction may be required to balance interests (Paras 1-2).

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Issue of Consideration

Whether the prayer for injunction could have been granted by the Courts below; Whether the Courts below erred in not considering the effect of Section 12 of the Administration of Evacuee Property Act, 1950.

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Final Decision

The High Court answered both substantial questions of law in the affirmative: the prayer for injunction could have been granted and the Courts below erred in not considering the effect of Section 12 of the Administration of Evacuee Property Act, 1950. Consequently, the second appeal was allowed and the impugned judgments and decrees of the lower courts were set aside, decreeing the suit in favour of the plaintiffs.

Law Points

  • Civil court jurisdiction under Section 46 of Administration of Evacuee Property Act
  • 1950 not absolute when procedure not followed
  • effect of Section 12 notice requirement
  • tenant purchaser rights under Maharashtra Tenancy and Agricultural Lands (Vidarbha Region) Act
  • 1958
  • displaced person allottee rights under Displaced Persons (Compensation and Rehabilitation) Act
  • 1954
  • balance of interests between tenant and allottee
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Case Details

2021 LawText (BOM) (09) 119

Second Appeal No. 366 of 2001

2021-09-08

S.M. Modak, J.

R.S. Kalangiwale, Advocate; Vipul Bhise, Advocate; M.H. Deshmukh, AGP

Wamanrao s/o Narhar Behare (Dead) through legal representatives; Anna s/o Narhar Behare (Dead) through legal representatives; Devidas s/o Narhar Behere (since deceased)

State of Maharashtra through Collector, Akola; Tahsildar, Akola; Bhojraj Dilaram

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Nature of Litigation

Civil suit for declaration of ownership and permanent injunction over agricultural land bearing Survey No. 316/1 (Gat No.807/1) at Mouza Ghusar, Tahsil Akola.

Remedy Sought

Plaintiffs sought declaration of ownership over the suit land and permanent injunction restraining defendants from disturbing their possession.

Filing Reason

Tahsildar Akola issued notices dated 21.09.1992 and 22.09.1992 asking plaintiff No.1 to attend office/site to hand over possession to defendant No.3, leading plaintiffs to file suit to protect their ownership and possession.

Previous Decisions

Trial Court dismissed the suit holding civil court lacked jurisdiction as custodian was entitled to decide allotment and Section 46 of the Act of 1950 and Section 36 of the Act of 1958 barred jurisdiction. First Appellate Court dismissed the appeal relying on Sections 28 and 46 of the Act of 1950, holding that non-service of notice alone did not give cause of action and relying on Shreesam Yeshwant Patil and others.

Issues

Whether a prayer for injunction could have been granted by the Courts below. Whether the Court below erred in not considering the effect of Section 12 of the Administration of Evacuee Property Act, 1950.

Submissions/Arguments

Appellants contended that civil court jurisdiction was not barred because the procedure adopted by the custodian was not followed and notice under Section 12 was not served, rendering declaration without jurisdiction; thus suit for declaration and injunction was maintainable. Respondents/State and defendant No.3 contended that civil court lacked jurisdiction under Sections 28 and 46 of the Administration of Evacuee Property Act, 1950, and that the custodian had exclusive authority to allot evacuee property; defendant No.3 also claimed possession as legal representative of the original allottee Shri Adumal Morandamal.

Ratio Decidendi

Civil court jurisdiction is not absolutely barred under Section 46 of the Administration of Evacuee Property Act, 1950 when the procedure adopted by the custodian is alleged to be in derogation of statutory requirements, including non-service of notice under Section 12. The effect of Section 12 must be considered before denying relief to a tenant purchaser who holds a valid certificate of ownership under the Maharashtra Tenancy and Agricultural Lands (Vidarbha Region) Act, 1958. The court must balance the rights of displaced person allottees under the Displaced Persons (Compensation and Rehabilitation) Act, 1954 with the rights of other stakeholders.

Judgment Excerpts

Neither the displaced person [Shri Adumal Morandamal] nor his legal representative Defendant No.3- Bhojraj got the land as per the provisions of the Displaced Persons (Compensation and Rehabilitation) Act, 1954. Whether a prayer for injunction could have been granted by the Courts below? .... In the affirmative. Whether the Court below erred in not considering the effect of Section 12 of the Administration of Evacuee Property Act? ... In the affirmative. Section 46 of the Administration of Evacuee Property Act, 1950 bars the Civil and Criminal Court from deciding the issues laid down under those clauses.

Procedural History

Plaintiffs filed a civil suit in the Court of Civil Judge, Senior Division, Akola, seeking declaration of ownership and permanent injunction. Defendants appeared but did not file written statements; defendant No.3 filed a reply to temporary injunction. Parties agreed to decide the matter on documents without oral evidence. Trial Court dismissed the suit on the ground that civil court lacked jurisdiction. Plaintiffs preferred first appeal, which was dismissed by the First Appellate Court. Plaintiffs then filed Second Appeal No. 366 of 2001 before the High Court. The High Court admitted the appeal and framed two substantial questions of law, heard the matter, and decided on 08.09.2021.

Acts & Sections

  • Administration of Evacuee Property Act, 1950: Section 4(1), Section 7, Section 8(4), Section 12, Section 28, Section 46
  • Displaced Persons (Compensation and Rehabilitation) Act, 1954: Section 36
  • Maharashtra Tenancy and Agricultural Lands (Vidarbha Region) Act, 1958: Section 36, Section 43, Section 46
  • Bombay Prevention of Fragmentation and Consolidation of Holdings Act, 1947: Section 24(1)
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