Case: Bhagwan Das Vs. The State Of Punjab

Bachawat, J. (With Subba Rao, J.) 1. The appellant is a displaced person to whom 105 ordinary acres of land equivalent to 42 standard acres 11 units in village Jamalpur, Tehsil Hansi, District Hissar, were allotted by the Custodian on October 5, 1949 under the conditions published in the Notification of the East Punjab Government No. 4892/S, dated July 8, 1949. The Punjab Security of Land Tenures Act, 1953 (Punjab Act No. 10 of 1953), hereinafter referred to as the Act, came into force on April 5, 1953. On that date, the aforesaid land was equivalent to 42 standard acres 11 units, and having regard to proviso (ii) (b) to S. 2 (3) of the Act, was permissible area in relation to the appellant, and as the appellant did not own any other land in the State of Punjab, he was a small landowner within the meaning of S. 2 (2) of the Act. On October 22, 1955, as a result of consolidation proceedings, the appellant was granted 101.4/5 ordinary acres of land in exchange for the land originally allotted to him in 1949. Respondent No. 4 is a tenant of the appellant in respect of a portion of this land. 2. On February 20, 1958, the appellant filed an application before the Assistant Collector, 1st Grade, Hissar, for ejectment of respondent No. 4 under S. 9 (1) (i) of the Act on the ground that he is a tenant of the appellant who is a small landowner. On that date, the aforesaid 101.4/5 acres of land owned by the appellant was equivalent to more than 50 standard acres. On February 17, 1960, the Assistant Collector dismissed the application. He held that the appellant was a big landowner, because on the date of the application the land owned by him was equivalent to more than 50 standard acres. On appeal, on May 2, 1960, the Collector of Hissar set aside the aforesaid order, and allowed the application for ejectment. He held that the appellant was a small landowner as he was a displaced person and an allottee of less than 50 standard acres. On August 30, 1960, the Commissioner, Ambala Division, dismissed a second appeal, and on January 2, 1961, the Financial Commissioner dismissed a revision petition filed by respondent No. 4. Following his previous ruling in Pat Ram v. Milawa Ram, 1961-40 Lah LT 28 and Har Chand Singh v. Punjab State, 1961-40 Lah LT 9, the Financial Commissioner held that the status of the appellant must be determined on the date of the commencement of the Act and subsequent accretions to his holding arising out of consolidation of holdings and improvements due to good husbandry or advent of irrigation should be ignored. On August 22, 1961, the Punjab High Court allowed a petition preferred by respondent No. 4 under Art. 227 of the Constitution of India and set aside the orders of the Collector, the Commissioner and the Financial Commissioner. The High Court held that the status of the appellant must be determined by evaluating his land in terms of standard acres on the date of the application for ejectment. The appellant now appeals to this Court by special leave. 3. The question is whether the appellant is a small landowner within the meaning of S. 9 (1) (I) of the Act. On a combined reading of Ss. 2, 3, 4, 5, 5A, 5B, 5C, 10A, 19A and 19B, the scheme of the Act appears to be as follows. The entire land held by the landowner in the State of Punjab on the date of the commencement of the Act must be evaluated as on that date and the status of the landowners and his surplus, area, if any, must be then ascertained. If he is then found to be a small landowner, he continues to be so for the purpose of the Act, until he acquires more land, and on taking into account the value of the land in terms of standard acres on the date of acquisition, he is found to be a big landowner. The landowner is required to make the necessary reservations or selections and to give the necessary declarations so that his status and the surplus area, if any, held by him may be so determined. If he is a small landowner at the commencement of the Act, his status is not altered by reason of improvements in the value of his land or re-allotment of land on compulsory consolidation of holdings. 4. In an unreported decision in Surja v. Financial Commissioner of Punjab, Civil Writ No. 486 of 1961 (Punj), the Punjab High Court held that the status of the landowner for the purposes of an application under S. 14A of the Act should be determined by evaluating his land on the date of the application. On the basis of this ruling, the improvements in the land subsequent to the commencement of the Act could not be ignored; but the Legislature considered that this decision had an effect of defeating the purpose of the Act. It is well known that with a view to get rid of this decision, the Legislature inserted S. 19-F (b) in the Act by the Punjab Security of Land Tenures (Amendment and Validation) Act, 1962 (Punjab Act No. 14 of 1962). The object of this amendment will appear from the following passage in the statements of Objects and Reasons published in the Punjab Gazette (Extr.), dated April 27, 1962:"Some of the recent judicial pronouncements have the effect of defeating the objectives with which the Punjab Security of Land Tenures Act 1953 was enacted and amended from time to time. Under the scheme of the parent Act a specific period was allowed for filing of reservations by the landowners the object of which was to find out whether a person was a small landowner or not. Once that was found the intention was that such a person should continue to be treated as such for the purposes of the Act so long as he did not acquire more lands. In other words, his status was not to be altered on account of improvements made on the land or reallotment of land during consolidation. However, the High Court took a different view in Civil Writ No. 486 of 1961 (Punj). Accordingly Cls. 3, 6 and 7 of the Bill seek to neutralise the effect of the aforesaid decisions" Clause 7 of the Bill related to Ss. 19-E and 19-F. The amending Act of 1962 was passed on July 4, 1962 during the pendency of the appeal in this Court. Section 19-F is retrospective in operation and is deemed to have come into force on April 15, 1953.Section 19-F (b) reads:"19-F. For the removal of doubts it is hereby declared,- xx xx xx xx (b) that for evaluating the land of any person at any time under this Act, the land owned by him immediately before the commencement of this Act. "or the land acquired by him after such commencement by inheritance or by bequest or gift from a person to whom he is an heir, shall always be evaluated for converting into standard acres as if the evaluation was being made on the date of such commencement, and that the land acquired by him after such commencement in any manner shall always be evaluated for converting into standard acres as if the evaluation was being made on the date of such acquisition." On a reading of S. 19-F (b), it would appear that for the purposes of determining the status of the landowner and evaluating his land at any time under the Act, the land owned by him immediately before the commencement of the Act must always be evaluated in terms of standard acres as if the evaluation was being made on the date of such commencement. It is not disputed that if the land held by the appellant immediately before the commencement of the Act is so evaluated, the appellant would be a small landowner. There is no scope for evaluating the subsequent improvements in the land due to consolidation operations or otherwise. The appellant did not acquire any land after the commencement of the Act. His status as a small landowner was not altered by reason of subsequent improvements or re-allotments of land on compulsory consolidation of holdings. On the date of the application for eviction, he, therefore, continued to be a small landowner. The High Court was in error in holding that the status of the appellant should be determined by evaluating his land in terms of standard acres on the date of the application for eviction.

Decision reasoning: 1[ds]On a reading of S. 19-F (b), it would appear that for the purposes of determining the status of the landowner and evaluating his land at any time under the Act, the land owned by him immediately before the commencement of the Act must always be evaluated in terms of standard acres as if the evaluation was being made on the date of such commencement. It is not disputed that if the land held by the appellant immediately before the commencement of the Act is so evaluated, the appellant would be a small landowner. There is no scope for evaluating the subsequent improvements in the land due to consolidation operations or otherwise. The appellant did not acquire any land after the commencement of the Act. His status as a small landowner was not altered by reason of subsequent improvements or re-allotments of land on compulsory consolidation of holdings. On the date of the application for eviction, he, therefore, continued to be a small landowner. The High Court was in error in holding that the status of the appellant should be determined by evaluating his land in terms of standard acres on the date of the application for eviction.