LawforAll

advocatemmmohan

My photo
since 1985 practicing as advocate in both civil & criminal laws

WELCOME TO LEGAL WORLD

WELCOME TO MY LEGAL WORLD - SHARE THE KNOWLEDGE

Tuesday, September 17, 2019

Simply because the Exchange deed with the third party became void due to non obtaining permission from the collector, did not cloth any rights to the original vendors to reclaim their land once sold =The submission of learned counsel for the appellants that interference in the concurrent finding and the exchange deed being void as the permission from Assistant Collector has not been obtained and in consequence they are entitled for restoration/possession of plot no.2902 (area 0.34 decimals) which was originally sold by registered sale deed dated 24th January, 1973 to late N.D. Chaudhary is without substance for the reason that these are two separate transactions which has taken place of the subject plot in question. As regards the rights and interests which were transferred by the present appellants vide registered sale deed dated 24th January, 1973 in favour of late N.D. Chaudhary was never the subject matter of scrutiny and there was no violation/contravention of the provisions of Act, 1950 or of any other law has been pointed out to us. At the same time, so far as non­compliance of the mandatory requirement as envisaged under Section 161 of the Act, 1950 while executing the exchange deed dated 2nd March, 1974 is concerned, parties have to bear its consequences of the void transaction as provided under Section 166 read with Section 167 of the Act, 1950 but that will not give any preference to theappellants for restoration of their rights and to nullify the registered sale deed dated 24th January, 1973 executed after taking due consideration in favour of late N.D. Chaudhary.

REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO(S). 8179 OF 2016
SITA RAM(DEAD) THROUGH LRS.      …..APPELLANT(S)
VERSUS
BHARAT SINGH(DEAD)
THROUGH LRS & ORS.     …..RESPONDENT(S)
WITH
CIVIL APPEAL NO(S). 8181 OF 2016
J U D G M E N T
Rastogi, J.
1. These appeals arise from the judgment dated 5th July, 2007
passed by the High Court of Allahabad in setting at naught the
inter se rights of the litigating parties initiated under the Uttar
Pradesh   Zamindari   Abolition   and   Land   Reforms   Act,
1
1950(hereinafter being referred to as the “Act, 1950”) arising from
the registered deed of exchange dated 2nd March, 1974.
2. The brief facts of the case culled out from the record are
that   Smt.   Chando   and   Sita   Ram   (since   deceased)   who   were
tenure   holders   of   Plot   No.   2902   ad­measuring   0.34   decimals
situated in Village Mathura Bangar, Tehsil & District Mathura,
U.P. sold the subject plot on transfer of consideration to late N.D.
Chaudhary(father of respondent nos. 10 & 11) vide registered
sale   deed   dated   24th  January,   1973.     Late   Kesho   Ram
(father/grandfather of respondent nos. 1 to 8), who was tenure
holder of plot nos. 2863 and 2888, with consent, exchanged his
plots with plot no. 2902 owned by late N.D. Chaudhary by a
registered deed of exchange dated 2nd March, 1974.  As a result of
the deed of exchange, plot no. 2902 ad­measuring 0.34 decimals
was transferred in favour of late Kesho Ram and plot nos. 2863
and 2888 in favour of late N.D. Chaudhary.
3. That at the time of field partal (chakbandi) in the village for
correction   of   revenue   records   conducted   by   the   Assistant
Consolidation Officer (ACO) late Kesho Ram(father/grandfather of
2
respondent nos. 1 to 8) filed application under Section 9A(2) of
the   Uttar   Pradesh   Consolidation   of   Holdings   Act,   1953
(hereinafter referred to as “the Act, 1953”) and prayed that his
name be recorded on Plot No. 2902 by virtue of the exchange
deed executed between him and late N.D. Chaudhary dated 2nd
March, 1974.
4. It   may   be   noticed   that   late   N.D.   Chaudhary   who   had
exchanged his Plot No. 2902 with Plot Nos. 2863 and 2888 from
late   Kesho   Ram   also   filed   application   in   the   consolidation
proceedings and supported the case of late Kesho Ram who was
the applicant in the proceedings for opening of mutation in his
name in the revenue records.
5. At this stage Smt. Chando and Sita Ram who were the
original tenure holders of Plot No. 2902 who had sold it to late
N.D. Chaudhary, by a registered sale deed dated 24th  January,
1973, raised an objection regarding validity of the registered sale
deed dated 24th January, 1973.  The Consolidation Officer, after
appraisal of the material on record, held that the sale deed dated
24th  January, 1973 executed by Smt. Chando and Sita Ram in
3
reference to plot no. 2902 in favour of late N.D. Chaudhary was
genuine and valid and was jointly executed by Smt. Chando and
Sita   Ram   and   in   regard   to   the   exchange   of   plots,   the
Consolidation   Officer   held   that   the   exchange   was   permissible
only   with   permission   of   the   Assistant   Collector   in   terms   of
Section 161 of the Act, 1950 which, in the instance case, was not
obtained by the parties.  In the absence of permission which is
pre­requisite,   he   is   not   entitled   to   be   recorded   as   Bhumidar
under the consolidation proceedings.  When the matter travelled
in appeal under Section 11 of the Act, 1953, it was observed that
the registered sale deed dated 24th January, 1973 was not proved
based on appreciation of evidence and further held that the deed
of   exchange   dated   2nd  March,   1974   was   void   for   want   of
permission from the competent authority provided under Section
161 of the Act, 1950 and the appeal was consequently dismissed
on 18th January, 1982.
6. The matter further travelled before the State Government in
its revisional jurisdiction under Section 48 of Act, 1953 filed at
the instance of late N.D. Chaudhary and late Kesho Ram before
Deputy   Director,   Consolidation,   Mathura,   both   the   revision
4
petitions came to be dismissed although authority did not record
any finding regarding validity of the sale deed but from the order,
it   reveals   that   the   authority   proceeded   on   the   premise   that
registered sale deed dated 24th January, 1973 was genuine and
valid.
7. The order of the revisional authority dated 19th July, 1984
came to be challenged by late Kesho Ram in a writ petition under
Article 227 of the Constitution of India and taking note of the
pleadings on record, the High Court vide impugned judgment
dated 5th July, 2007 observed that the exchange deed dated 2nd
March,   1974   was   in   contravention   of   Section   166   read   with
Section 167 of the Act, 1950 and any exchange in the absence of
permission from Assistant Collector was void by virtue of Section
166 at the same time further observed that it was the State
Government who could apply for cancellation if affected by the
registered deed of exchange but it was not open to be questioned
at the instance of the original tenure holder Smt. Chando and
Sita Ram who are now being represented by their legal heirs of
plot   no.   2902   who   had   sold   with   their   consent   to   late   N.D.
5
Chaudhary on 24th January, 1973 through a registered sale deed
which was  not a subject matter of challenge in appeal before us.
8. The moot question which has been raised for consideration
is as to what will be the legal consequences if the registered
exchange deed dated 2nd March, 1974 has been executed without
following the procedure prescribed as provided under Section 161
of the Act, 1950.
9. Learned counsel for the appellants submits that the High
Court in its supervisory jurisdiction under Article 227 of the
Constitution   of   India   has   exceeded   in   its   jurisdiction   in
interfering   with   the   concurrent   finding   arrived   at   by   the
consolidation authorities holding that late N.D. Chaudhary did
not get his name mutated in the revenue records based on the
registered sale deed dated 24th January, 1973 and at the time of
initiation of the consolidation proceedings, he did not put forth
any claim or filed any objection provided under Section 9A of the
Act, 1953.  At the same time, the exchange deed dated 2nd March,
1974   was   executed   without   seeking   permission   from   the
competent   authority   (Assistant   Collector)   as   provided   under
6
Section 161 of the Act, 1950 and such exchange being void, late
Kesho Ram cannot claim any right over the plot in question to
open mutation and in consequence the appellants hold a right
over the subject plot no. 2902 even if it was sold by Smt. Chando
and Sita Ram(predecessor in interest) jointly by registered sale
deed dated 24th January, 1973.
10. Learned counsel further submits that the High Court has
failed   to   appreciate   the   legal   effect   of   Section   166   read   with
Section 167 of the Act, 1950 and the action once being held to be
void by operation of law, they are entitled to hold their right and
possession over plot no. 2902.
11. Per   contra,   learned   counsel   for   the   respondents,   while
supporting   the   finding   recorded   by   the   High   Court,   further
submits that once plot no.2902 ad­measuring 0.34 decimals was
sold by the appellants (predecessor in interest) jointly by the
registered   sale   deed   dated   24th  January,   1973   to   late   N.D.
Chaudhary,   they   have   lost   their   rights   and   interest   over   the
subject plot in question and whatever the default, if any, being
committed by late N.D. Chaudhary, it will not give support to the
7
present appellants in making their claim over the subject plot in
question   and   further   submits   that   the   permission   of   the
Assistant Collector even if not obtained would not take away
rights of the parties which have been conferred on transfer of the
property by the registered exchange deed dated 2nd March, 1974
and as per the scheme of the Act, 1950, transfers made prior to
3
rd June, 1981 are not void but are voidable at the option of the
suit to be filed by Gaon Sabha or land holder within the period of
limitation.   Indisputedly, no action was taken either by Gaon
Sabha or land holder within the period of limitation.  In the given
facts and circumstances, no error has been committed by the
High   Court   in   the   impugned   judgment   which   may   call   for
interference.
12. We have heard learned counsel for the parties and with
their assistance perused the material available on record.
13. The deed of exchange between late N.D. Chaudhary (father
of   respondent   nos.   10   and   11)   and   late   Kesho   Ram
(father/grandfather of respondent nos. 1 to 8) was executed by
the registered deed on 2nd March, 1974.  Section 161, 166 and
8
167 of the Act, 1950 as existing prior to the amendment made on
3
rd June, 1981 are ad infra:­
“Section 161 Exchange. [(1) A bhumidhar or sirdar
may exchange with :­
(a) any other bhumidhar or sirdar land held by
him, or
(b) any Gaon Sabha or local authority, lands for
the time being vested in it under Sec. 117 [ *
* *] :
Provided that no exchange shall be made except with
the   permission   of   an   Assistant   Collector   who   shall
refuse permission if the difference between the rental
value of land given in exchange and of land received in
exchange calculated at hereditary rates is more than
10 per cent of the lower rental value.
(1­A) Where   the   Assistant   Collector   permits
exchange   he   shall   also   order   the   relevant   annual
registers to be corrected accordingly.
(2)On exchange made in accordance with sub­section
(1)   they   shall  have   the   same   rights   in   the   land   so
received in exchange as they had in the land given in
exchange.”
“S. 166.Transfer   made   in   contravention   of   this
chapter   to   be   void.  Any   transfer,   made   by   or   on
behalf  of  a  sirdar or  asami in  contravention  of  the
provisions of this chapter shall be void.”
By U.P. Act 30 of 1975, the words “in contravention of this
Chapter” were substituted by the words “in contravention of the
provisions of this Act”.
“S. 167.Consequences of void transfers.  [(1)
Where a sirdar or asami has made any transfer in
contravention   of   the   provisions   of   this   Act,   the
transferee   and   every   person   who   may   have   thus
obtained possession of the whole or part of the holding
9
shall be liable to ejectment on the suit of the [Gaon
Sabha or the land holder, as the case may be,]
(2)A decree for ejectment under sub­section (1) may
direct the ejectment of the sirdar or asami from the
whole or part of the holding as the court may, having
regard to the circumstances of the case, direct].”
14. It may be relevant to refer Rule 338 of the U.P. Zamindari
Abolition & Land Reforms Rules, 1952(hereinafter being referred
to as the “Rules 1952”) for the purpose as under:­
“338. The suit applications and other proceedings
specified in Appendix III shall be instituted within the
time specified therein for them, respectively.
Appendix III
(Rule 338)
Sl.
No.
Section
of   the
Act
Description   of   suit,
application   and
other proceeding
Period   of
limitation
Time from which
period   begins   to
run
Proper
court
fees
19. 163 Suits   for   ejectment
of bhumidhar.
Six Years. From the date of
illegal transfer.
As   in
the
Court
Fees
Act,
1870,
on   the
year’s
revenue.
20. 167 Suits   for   ejectment
of   a   sirdhar   or
asami.
Do. Ditto. Ditto.
Substituted 2056/I­A­463­1952 dated 11th April, 1969”
15. It will be appropriate to take note of Sections 161, 166 and
167 amended by U.P. Act No. 20 of 1982(w.e.f. 3rd June, 1981) for
better appraisal ad infra:­
10
“Section 161 Exchange. [(1) A Bhumidhar [* * *] may
exchange with :­
(a) any other bhumidhar [* * *] land held by
him, or
(b) any Gaon Sabha or local authority, lands
for the time being vested in it under Sec.
117 [ * * *] :
Provided that no exchange shall be made except  with
the   permission of an Assistant Collector who shall
refuse permission if the difference between the rental
value of land given in exchange and of land received in
exchange calculated at hereditary rates is more than
10 per cent of the lower rental value.
(1­A) Where   the   Assistant   Collector   permits
exchange   he   shall   also   order   the   relevant   annual
registers to be corrected accordingly.
(2)On exchange made in accordance with sub­section
(1)   they   shall  have   the   same   rights   in   the   land   so
received in exchange as they had in the land given in
exchange.
S. 166. Transfer   made   in   contravention   of   this
chapter   to   be   void.­  Every   transfer   made   in
contravention  of   the   provisions   of   this   Act   shall   be
void.
S. 167. Consequences   of   void   transfers.  (1)   The
following consequences shall ensue in respect of every
transfer which is void by virtue of Section 166, namely­
(a) the subject­matter of transfer shall, with
effect from the date of transfer, be deemed
to   have   vested   in   the   State   Government
free from all encumbrances;
(b) the trees, crops and wells existing on the
land   on   the   date   of   transfer   shall,   with
effect   from   the   said   date,   be   deemed   to
have vested in the State Government free
from all encumbrances;
(c) the transferee may remove other movable
property or the materials of any immovable
11
property existing on such land on the date
of   transfer   within   such   time   as   may   be
prescribed.
(2)Where any land or other property has vested in the
State Government under sub­section (1), it shall be
lawful for the Collector to take over possession over
such land or other property and to direct that any
person   occupying   such   land   or   property   be   evicted
therefrom.   From   the   purposes   of   taking   over   such
possession or evicting such unauthorised occupants,
the Collector may use or cause to be used such force
as may be necessary.]”
16. It emerges from the pre amendment (U.P. Act No. 20 of 1982
w.e.f. 3rd June, 1981) scheme of the Act, 1950 that any transfer
made in contravention of this Chapter referred to under Section
166 which includes Section 161 as well were not be automatically
void but voidable and therefore, as a consequence of alleged void
transfers under Section 167, a suit was required to be filed by the
Gaon Sabha or the land holder, as the case may be, within
limitation of six years from the date of illegal transfer as indicated
in Appendix III annexed to Rule 338 of Rules, 1952 but after the
U.P. Act No. 20 of 1982 amended w.e.f. 3rd June, 1981, the law
has changed and every transfer made in contravention of this Act
became void in view of Section 166 and in consequence of void
transfer, the subject land is deemed to have been vested in the
State   Government   by   operation   of   law   free   from   all
12
encumbrances, and sub­section (2) of Section 167, authorises
Collector/Competent Authority to take over possession with the
use of force as may be necessary. 
17. In the instant case, the exchange deed was executed on 2nd
March, 1974 indisputedly without permission from the Assistant
Collector provided under Section 161 and its consequence was
embedded under Section 167 of the Act, 1950 authorising the
Gaon Sabha or the land holder to file a suit for ejectment within
a period of six years from the date of alleged illegal transfer which
in the instant case had expired in March 1980 much prior to the
U.P. Act No. 20 of 1982 was amended w.e.f. 3rd June, 1981.
18. After the scheme of the Act has been referred to in extenso,
it is clear that at least the amendment which has been made by
the U.P. Land Laws (Amendment) Act, 1982 with effect from 3rd
June, 1981 has no application on the case in hand.
19. The proceedings were initiated in the first instance when an
application was filed by late Kesho Ram under Section 9A(2) of
the Act, 1953 for obtaining mutation in his name in the year
13
1978  and   late  N.D.   Chaudhary  also   joined   him  and   filed   an
application supporting the claim of late Kesho Ram.
20. It reveals from the record that the Consolidation Officer has
declined the claim of late Kesho Ram for seeking the Bhumidari
rights on the premise that the permission from the competent
authority has not been obtained before the exchange deed was
executed as mandated under Section 161 of the Act, 1950 and in
its absence, no proceedings could be drawn claiming Bhumidari
rights in his favour.  Although the Settlement Officer has made
adverse comments in reference to the registered sale deed dated
24th  January, 1973, but that appears to be a factual manifest
error committed in recording such finding.
21. To   make   it   further   clear   that   under   the   pre­amended
scheme of the Act, 1950, the consequence for non­compliance of
Section   161   of   the   Act,   1950   seeking   permission   from   the
Assistant Collector, was indeed the requirement of law and the
effect of contravention and its consequence are embedded under
Section 166 and 167 of the Act, 1950 but its consequential effect,
in no manner, would take away or divest the rights and interest
14
of the parties inter se conferred in reference to the sale deed
which was originally executed in favour of late N.D. Chaudhary
by late Smt. Chando and Sita Ram in reference to plot no. 2902
ad­measuring 0.34 decimals by the registered sale deed dated
24th January, 1973. 
22. It is true that at one stage, late Smt. Chando and Sita Ram
jointly raised objection in the consolidation proceedings initiated
under Section 9A(1) of the Act, 1953 in reference to the registered
sale   deed   dated   24th  January,   1973   but   as   we   have   already
observed that the registered sale deed dated 24th January, 1973
was genuine and duly executed by the parties and it is nowhere
related   in   reference   to   the   exchange   proceedings   which   were
initiated at a later point of time and this fact became clear that so
far as the grievance of Smt. Chando and Sita Ram is concerned,
after the sale deed was registered and executed on 24th January,
1973 in favour of late N.D. Chaudhary, the ownership rights with
possession   stands   transferred.     It   is   true   that   late   N.D.
Chaudhary   had   not   initiated   proceedings   for   claiming   his
Bhumidari rights under the Act, 1953 but that, in any manner
will not, nullify his right of ownership vested on execution of a
15
registered sale deed dated 24th  January, 1973 and there is no
prohibition or restriction to the contrary has been brought to our
notice, if any, under the Act 1950.
23. At a later stage, late N.D. Chaudhary(father of respondent
nos.   10   and   11)   and   late   Kesho   Ram(father/grandfather   of
respondent nos. 1 to 8) who was the tenure holders of plot no.
2683 and 2888 got their plot exchanged by registered exchange
deed   dated   2nd  March,   1974   which   indisputedly   was   in
contravention of Section 161 of the pre­amended Act, 1950 where
it was postulated that no exchange shall be made except with the
permission   of   the   Assistant   Collector.     Indisputedly,   no
permission was sought as contemplated under the mandate of
law but under the pre­amended scheme of the Act, 1950, the
effect of exchange in contravention to the provisions of the Act
and its consequence as embedded under Section 166 and 167 of
the Act, 1950 makes the action to be voidable and not void and it
entails consequences of void transfers, in the first instance, it
only confines to sirdar or asami and not applicable upon those
who are claiming rights of Bhumidar.   At the same time, any
transfer which has been made in contravention of the provisions
16
of this Act including permission from the Assistant Collector as
required under Section 161, the ejectment may be possible only
on filing of a suit by Gaon Sabha or the land holder, as the case
may be, and after the decree of ejectment being obtained under
sub­section (1) of Section 167 of the Act, ejectment under subsection (2) of Section 167 be permissible and for filing of the suit,
the limitation has been provided under Appendix III annexed to
Rule 338 of the Rules, 1952 of which reference has been made in
terms thereof suit for ejectment could be filed within a period of
six years from the date of the illegal transfer. 
24. The  deed of  exchange  in  the  instant  case  was  executed
between   the   parties   on   2nd  March,   1974   and   the   period   of
limitation for filing of the suit had expired in March 1980 much
before the U.P. Act No. 20 of 1982 amended w.e.f. 3rd June, 1981
came into force.  Indisputedly, no suit was filed either by Gaon
Sabha   or   any   land   holder   for   ejectment   as   envisaged   under
Section 167(1) of the Act, 1950.  That apart, even assuming for
the sake of argument, the deed of exchange executed on 2nd
March, 1974 even if considered to be void, taking note of the post
amended provisions of the Act, 1950, it will still confine to the
17
deed of exchange dated 2nd  March, 1974 which was obtained
without   taking   permission   from   the   Assistant   Collector   as
envisaged under Section 161 of the Act and at the best the rights
to the parties on execution of exchange deed could not be given
effect   to   and   it   remain   inter   se   between   parties   to   the
exchange(late Kesho Ram and late N.D. Chaudhary) at the same
time, so far as the subject plot which was once transferred by the
original tenure holders, namely, Smt. Chando and Sita Ram who
are throughout contesting the matter (plot no.2902 area 0.34
decimals) to late N.D. Chaudhary by a registered sale deed dated
24th January, 1973 which has been held to be genuine and valid,
will not be under any legal impediment or having any effect on
the rights of the parties, and the said transaction was not subject
to compliance of Section 161 of the Act, 1950 and at least no
rights of any kind over plot no. 2902 area 0.34 decimals could be
claimed by the original tenure holders (appellants herein) and
their grievance that late N.D. Chaudhary had not claimed his
Bhumidari rights under the Act, 1953, suffice it to say, that no
such provision to the contrary has been brought to our notice
that if the holder has not taken steps for claiming Bhumidari
rights under the Act, 1953 that will take away or divest from the
18
legal rights conferred to the party in whose favour registered sale
deed has been executed under the mandate of law. 
25. We are of the view that at least late Smt. Chando and Sita
Ram,   whose   legal   representatives   are   contesting   the   case
throughout are not holding any locus standi to claim benefit of
the     defect   in   the   deed   of   exchange   dated   2nd  March,   1974
executed   between   different   parties   who   are   holders   to   their
respective plots in their own rights and the procedure mandated
under the law if not being followed of taking permission from the
Assistant Collector as required under Section 161 of the Act,
1950, its consequences would not revive/restore the rights to the
legal heirs of late Smt. Chando and Sita Ram(original tenure
holders) over the subject property in question.  That apart, the
present appellants have never raised any plea for cancellation of
the   registered   sale   deed   executed   in   favour   of   late   N.D.
Chaudhary dated 24th  January, 1973 which was otherwise not
the subject matter to be examined under the provisions of the
Act, 1950.
19
26. The submission of learned counsel for the appellants that
interference in the concurrent finding and the exchange deed
being void as the permission from Assistant Collector has not
been   obtained   and   in   consequence   they   are   entitled   for
restoration/possession   of   plot   no.2902   (area   0.34   decimals)
which   was   originally   sold   by   registered   sale   deed   dated   24th
January, 1973 to late N.D. Chaudhary is without substance for
the reason that these are two separate transactions which has
taken place of the subject plot in question.  As regards the rights
and interests which were transferred by the present appellants
vide registered sale deed dated 24th  January, 1973 in favour of
late N.D. Chaudhary was never the subject matter of scrutiny
and there was no violation/contravention of the provisions of Act,
1950 or of any other law has been pointed out to us.  
27. At   the   same   time,   so   far   as   non­compliance   of   the
mandatory requirement as envisaged under Section 161 of the
Act, 1950 while executing the exchange deed dated 2nd  March,
1974 is concerned, parties have to bear its consequences of the
void transaction as provided under Section 166 read with Section
167 of the Act, 1950 but that will not give any preference to the
20
appellants   for   restoration   of   their   rights   and   to   nullify   the
registered   sale   deed   dated   24th  January,   1973   executed   after
taking due consideration in favour of late N.D. Chaudhary.
28. In our considered view, the conclusions of the High Court in
its judgment impugned are unassailable and does not call for our
interference. 
29. Consequently,   the   appeals   fail   and   are   accordingly
dismissed.  No costs.
30. Pending application(s), if any, stand disposed of.
.…………………………J.
(A.M. KHANWILKAR)
………………………….J.
(AJAY RASTOGI)
NEW DELHI
SEPTEMBER 17, 2019
                                                       
21