Supreme Court Allows Appeal Against Cancellation of Land Allotment After 13 Years — Delay Unreasonable Despite No Limitation Prescribed Under UPZALR Act. Allottees Who Constructed Houses and Resided for 13 Years Have Legitimate Expectation; Suo Moto Power Must Be Exercised Within Reasonable Period.

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Case Note & Summary

The Supreme Court allowed the appeal against the judgment of the Allahabad High Court which had upheld the cancellation of land allotment to the appellants after 13 years. The appellants were allotted 150 sq. yards each in Gata No. 185 Mi in Rampur Kedhar Village, Uttar Pradesh in 1994 for residential purposes under Section 122-C(i)(d) of the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950. They constructed houses and resided there with their families. In 2007, the Lekhpal reported that the land was originally designated as Panchayat Ghar under Section 132 of the Act and the allotment was irregular. The Tehsildar proposed cancellation, and show cause notices were issued. The Additional Collector rejected the appellants' preliminary objection on limitation, holding that no limitation is prescribed under Section 122-C(6) for suo moto cancellation. The revision and writ petition were dismissed. The Supreme Court held that even where no limitation is prescribed, statutory authority must exercise its power within a reasonable period. Relying on State of Punjab v. Bhatinda Milk Producer Union Limited and Ibrahimpatnam Taluk Vyavasaya Coolie Sangham v. K. Suresh Reddy, the Court found that 13 years delay was unreasonable, especially since the allottees had constructed houses and were in possession, and no fraud or misrepresentation was alleged against them. The Court set aside the impugned orders and allowed the appeal, directing that the allotments shall not be cancelled on the ground of limitation.

Headnote

A) Land Law - Cancellation of Allotment - Limitation - Suo Moto Power - Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950, Section 122-C(6) - Whether the Collector can cancel an allotment at any time when no limitation is prescribed - Held that even where no period of limitation is prescribed, the power must be exercised within a reasonable period, which depends on the facts and circumstances of the case. In the present case, initiation of proceedings after 13 years, during which allottees had constructed houses and were residing, was held to be unreasonable. (Paras 12-14)

B) Land Law - Cancellation of Allotment - Reasonable Period - Factors - Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950, Section 122-C(6) - Factors to determine reasonable period include nature of the statute, rights and liabilities, and conduct of parties - Held that 13 years delay in initiating cancellation proceedings, without any allegation of fraud or misrepresentation against the allottees, was not reasonable. (Paras 12-14)

C) Land Law - Allotment of Land - Legitimate Expectation - Allottees who have constructed houses and resided for 13 years have a legitimate expectation that their allotment will not be cancelled after such a long period, especially when no fraud is alleged against them. (Para 14)

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Issue of Consideration

Whether the suo moto power of the Collector under Section 122-C(6) of the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950 to cancel an allotment can be exercised at any time without any limitation, or must be exercised within a reasonable period.

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Final Decision

The Supreme Court allowed the appeal, set aside the impugned orders of the High Court, Additional Commissioner, and Additional Collector, and held that the cancellation proceedings initiated after 13 years were not within a reasonable period. The allotments in favour of the appellants shall not be cancelled on the ground of limitation.

Law Points

  • Limitation for suo moto cancellation of allotment must be reasonable
  • No limitation period prescribed does not mean power can be exercised at any time
  • Reasonable period depends on facts and circumstances
  • Allottees who have constructed houses and resided for 13 years have legitimate expectation
  • Fraud or illegality must be established for delayed cancellation
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Case Details

2024 LawText (SC) (5) 163

Civil Appeal No. 1234 of 2012 (arising out of SLP(C) No. 1234/2010)

2024-03-13

Aravind Kumar, J

Tanmaya Agarwal (for respondent-state)

Shyamo Devi And Others

State of Uttar Pradesh and Others

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Nature of Litigation

Civil appeal against High Court judgment dismissing writ petition challenging cancellation of land allotment.

Remedy Sought

Appellants sought to set aside the orders of the Additional Collector, Additional Commissioner, and High Court, and to prevent cancellation of their land allotment.

Filing Reason

The appellants were allotted land in 1994 for residential purposes; after 13 years, proceedings were initiated to cancel the allotment on the ground that the land was originally designated as Panchayat Ghar.

Previous Decisions

Additional Collector rejected preliminary objection on limitation (07.02.2008); Additional Commissioner dismissed revision (23.09.2009); High Court dismissed writ petition (19.01.2010).

Issues

Whether the suo moto power under Section 122-C(6) of UPZALR Act can be exercised at any time without limitation? Whether initiation of cancellation proceedings after 13 years is reasonable?

Submissions/Arguments

Respondent-State argued that fraud vitiates all acts, no limitation is prescribed under Section 122-C(6), and the land was reserved as Panchayat Ghar under Section 132, and use for residential purposes violated Section 143. Appellants (not present) had earlier contended that proceedings were barred by limitation as they were initiated after 13 years.

Ratio Decidendi

Even where no period of limitation is prescribed for exercise of suo moto power, such power must be exercised within a reasonable period. What is reasonable depends on the facts and circumstances. In this case, 13 years delay in initiating cancellation proceedings, during which allottees had constructed houses and were in possession, was held to be unreasonable.

Judgment Excerpts

It is trite that if no period of limitation has been prescribed, statutory authority must exercise its jurisdiction within a reasonable period. What, however, shall be the reasonable period would depend upon the nature of the statute, rights and liabilities thereunder and other relevant factors.

Procedural History

Allotment in 1994; Lekhpal report in 2007; show cause notice 05.07.2007; Additional Collector order 07.02.2008 rejecting limitation objection; Revision dismissed by Additional Commissioner 23.09.2009; Writ Petition dismissed by Allahabad High Court 19.01.2010; Supreme Court granted leave on 17.07.2012 and finally decided on 13.03.2024.

Acts & Sections

  • Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950: 122-C, 122-C(6), 122-C(7), 132, 143
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