Case: Raja Bahadur Kamakshya Narainsingh And Others  Vs. The Collector And Deputy Commissioner Of Hazaribagh And Others

a dead of settlement. We may assume, therefore that on the date of publication of the notification the disputed properties were not used primarily as office or cutchery for the collection of rent of the notified estate of petitioner No. 1.It becomes, therefore, necessary to interpret the word "used" occurring in S. 4(a). It is to be noticed that this clause of S. 4 does not expressly state that a building used primarily as office or cutchery for the collection of rent must be so used as the date of the publication of the notification. In this clause the words "used primarily as office or cutchery for the collection of rent of such estate" must be read in the light of the provisions of S. 4(h) where similar words are employed.Under S. 4(h) the Collector has the power to make inquiries in respect of any transfer of any kind of interest in any building used primarily as office or cutchery for the collection of rent of such estate, if the transfer had been made at any time after the first day of January, 1946. If on due inquiry the Collector is satisfied that such transfer was made with the object of defeating the provisions of the Act or causing loss to the State or obtaining higher compensation, then the Collector may, after giving notice to the parties concerned and hearing them and with the previous sanction of the State Government, annual the transfer and dispossess the person claiming under it.These provisions clearly indicate that if any building was used primarily as office or cutchery for the collection of rent and such building had been transferred after the first day of January, 1946, the transfer could be annulled if the circumstances mentioned in S. 4(h) had been established.That is to say, under these provisions the use to which the building was put previous to its transfer after the first day of January, 1946 and not thereafter was what the Collector was concerned with and not to what use it had been put after its transfer after the first day of January, 1946. To hold otherwise would be to make the provisions of S. 4(h) meaningless.When a proprietor transfer any such building, it necessarily follows that the building thereafter was not used by him as office or cutchery for the collection of rent of his estate. If the transfer was made before the first day of January, 1946 the provisions of S. 4(h) would not apply and such a transfer would not be liable to be annulled and the building so transferred would not vest in the State on the date of the publication of the notification covering the estate on which such building stands.If, on the other hand, this transfer was made after the first day of January, 1946, a building comprised in a notified estate, which was used immediately previous to the date of the transfer primarily as office or cutchery for the collection of rent of such estate the transfer would be liable to be annulled under S. 4(h) and it would vest absolutely in the State on the publication of the notification and the provisions of S. 4(a) must be read accordingly. It would be unreasonable to construe the provisions of S. 4(a) in the way suggested by Mr. Chatterjee. The scheme of the Act has to be borne in mind and the provisions of Ss. 4(a) and 4(h) have to be read together.The petitioners had not asserted in their petition that the disputed properties were not used as office or cutchery for the collection of rent of the notified estate of petitioner No. 1 before the first of January, 1946 or before the lease in favour of the Company. On behalf of the State, on affidavit, it has been stated that the disputed properties were all along used as cutchery before the creation of the lease and that they were not being used in connection with any mining operation.In our opinion, if as a result of the inquiry under S. 4(h) the transfer of the disputed properties by the petitioner No. 1 is annulled the disputed properties must be regarded as having vested in the State, because they were used as office or cutchery for the collection of rent previous to the transfers made by the petitioner No. 1.5. It was next contended that S. 4(h) is ultra vires the Constitution, because it imposed in an unreasonable restriction on the fundamental rights of the petitioners to realize rent from the Company, as the transfer in its favour was imperilled by the notice issued to it under S. 4(b). No appeal or review was provided in the Act against the order of the Collector issuing notice or an order of annulment made by him.The Collector was left with absolute power to annul a transfer and to dispossess a person in possession thereunder.Section 4(h), however, does direct the Collector to give reasonable notice to the parties concerned and to hear them. Such annulment to dispossession which he may order must be with the previous sanction of the State Government and he is compelled to do so on terms which may appear to him fair and equitable. The power is, therefore, not quite so absolute or arbitrary as suggested.Assuming however, that the Collector has very wide powers, it is to be remembered that S. 4(h) is a part of the law of acquisition of estates as enacted by the Act and is an integral part of the machinery by which acquisition of an estate takes place. The Act is a valid law of acquisition and its whole purpose may be defeated unless there was some such provision as contained in S. 4(h). The Act being a law for acquisition of estates the question of it or S. 4(h) of it imposing any unreasonable restriction on the fundamental rights of the petitioners does not arise. In any event in Act including S. 4(h) is protected by Article 31-A of the Constitution.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]3.In our opinion, it is of little consequence in the present case whether the notified estate vested in the State by reason of the publication of the notification under S. 3 or by virtue of the provisions of S. 4 of the Act, because in either case a vesting did take place. Although the word land is used in the definition of estate, the provisions of Ss. 4, 5 and 7 show the necessary intention to include something more than the land when an estate vests in thebecomes, therefore, necessary to interpret the word "used" occurring in S. 4(a).If on due inquiry the Collector is satisfied that such transfer was made with the object of defeating the provisions of the Act or causing loss to the State or obtaining higher compensation, then the Collector may, after giving notice to the parties concerned and hearing them and with the previous sanction of the State Government, annual the transfer and dispossess the person claiming under it.These provisions clearly indicate that if any building was used primarily as office or cutchery for the collection of rent and such building had been transferred after the first day of January, 1946, the transfer could be annulled if the circumstances mentioned in S. 4(h) had been established.That is to say, under these provisions the use to which the building was put previous to its transfer after the first day of January, 1946 and not thereafter was what the Collector was concerned with and not to what use it had been put after its transfer after the first day of January,To hold otherwise would be to make the provisions of S. 4(h)would be unreasonable to construe the provisions of S. 4(a) in the way suggested by Mr. Chatterjee. The scheme of the Act has to be borne in mind and the provisions of Ss. 4(a) and 4(h) have to be readour opinion, if as a result of the inquiry under S. 4(h) the transfer of the disputed properties by the petitioner No. 1 is annulled the disputed properties must be regarded as having vested in the State, because they were used as office or cutchery for the collection of rent previous to the transfers made by the petitioner No.Collector was left with absolute power to annul a transfer and to dispossess a person in possession thereunder.Section 4(h), however, does direct the Collector to give reasonable notice to the parties concerned and to hear them. Such annulment to dispossession which he may order must be with the previous sanction of the State Government and he is compelled to do so on terms which may appear to him fair and equitable. The power is, therefore, not quite so absolute or arbitrary as suggested.Assuming however, that the Collector has very wide powers, it is to be remembered that S. 4(h) is a part of the law of acquisition of estates as enacted by the Act and is an integral part of the machinery by which acquisition of an estate takes place. The Act is a valid law of acquisition and its whole purpose may be defeated unless there was some such provision as contained in S. 4(h). The Act being a law for acquisition of estates the question of it or S. 4(h) of it imposing any unreasonable restriction on the fundamental rights of the petitioners does not arise. In any event in Act including S. 4(h) is protected by Article 31-A of thethis clause the words "used primarily as office or cutchery for the collection of rent of such estate" must be read in the light of the provisions of S. 4(h) where similar words are employed.