Case Note & Summary
The petitioner, M/s. Niketan Land and Estate Pvt. Ltd., challenged an order dated 24/02/2010 passed by the Collector, Nashik, which allowed the conversion of land from agricultural to non-agricultural use subject to conditions including payment of unearned income to the State Government and continuation of the land as Occupancy Class II land. The land in question, Survey No.836 at Nashik, was originally allotted in 1949 to the father of Namdeo Eknath Bankar on a new and impartible tenure on permanent grant basis. The allottee executed a Kabuliyat in Form FI, which contained restrictions on transfer without government permission. The petitioner, as successor-in-interest, sought conversion for development purposes. The Collector imposed conditions requiring payment of unearned income (50% of the difference in value between agricultural and non-agricultural use) and maintaining Occupancy Class II status. The petitioner argued that the land should be treated as Occupancy Class I (freehold) and that no unearned income was payable. The court examined Section 29 of the Maharashtra Land Revenue Code, 1966, which categorizes landholders into Occupancy Class I (unrestricted transfer) and Occupancy Class II (restricted transfer). The court noted that the original grant was on new and impartible tenure, which inherently restricts transfer, and the Kabuliyat explicitly prohibited transfer without government consent. The court held that the land remains Occupancy Class II and the conditions imposed by the Collector were valid and in accordance with law. The petition was dismissed, upholding the Collector's order.
Headnote
A) Land Revenue - Occupancy Class II - New and Impartible Tenure - Section 29 of Maharashtra Land Revenue Code, 1966 - The land was granted on new and impartible tenure in 1949 with a Kabuliyat restricting transfer without government permission - The Collector allowed conversion to non-agricultural use subject to payment of unearned income and continuation of Occupancy Class II status - Held that the conditions are valid as the land remains subject to the original tenure restrictions and the grant was not freehold (Paras 2-10).
Issue of Consideration
Whether the condition imposed by the Collector for payment of unearned income and continuation of Occupancy Class II status on conversion of land from agricultural to non-agricultural use is valid and legal.
Final Decision
The writ petition is dismissed. The order dated 24/02/2010 passed by the Collector, Nashik is upheld. No order as to costs.
Law Points
- Interpretation of Section 29 of Maharashtra Land Revenue Code
- 1966
- Occupancy Class II land
- new and impartible tenure
- unearned income
- conversion from agricultural to non-agricultural
- Kabuliyat
- conditions of grant





