Case: State Of U.P Vs. Zahoor Ahmad &amp; Anr

contended that the provisions of the Transfer of Property Act did not apply and therefore the respondent could not hold over within the meaning of Section 116 of the Transfer of Property Act. The State relied on the Government Grants Act. Section 2 of the Government Grants Act enacts that nothing in the Transfer of Property Act shall apply to any grant or other transfer of land or of any interest therein in favour of any person, but every such grant and transfer shall be construed and take effect as if the said Act had not been passed.11. An example of a Government grant within the meaning of the Government Grants Act occurs in the decision in Jnanendra Nath Nanda v. Jadu Nath Banerji ILR (1938) 1 Cal 626 - (AIR 1938 Cal 211 ). Two leases of two lots were granted by the Sunderban Commissioner an behalf of the Secretary of State. The lands comprised In the lots were waste lands of the Government. The waste lands of the Sunderbans were not the property of any subject. The Sunderbans were a vast impenetrable forest. It was the property of the East India Company. It later on vested in the Crown in those days by virtue of an Imperial statute. The history of the legislation showed that grants of Sunderbans lands which were vested in the Crown at that time were Crown Grants within the meaning of the Crown Grants Act as it then stood.12. On the other hand, there is an illustration of what is not a Government grant within the meaning of the Government Grants Act. The decision in Secretary of State for India in Council v. Lal Mohan Chaudhuri, ILR 63 Cal 523 = (AIR 1935 Cal 746) furnishes that illustration. The Government in that case granted lease in respect of Khas Mahal lands. The lease of Khas Mahal was held not to fall within the category of grants as contemplated in the then Crown Grants Act.13. The lease in die present case was for the purpose of erecting a temporary rice mill and for no other purpose. The mere fact that the State is the lessor will not by it a Government grant within the meaning of the Government Grants Act. There is no evidence in the present case in the character of the land or in the making of the lease or in the content of the lease to support the plea on behalf of the State that it was a grant within the meaning of the Government Grants Act.14. The High Court in sent case relied on a Bench decision of that Court. That is the case of Lala Kishun Chand v. Sheo Dutta, AIR 1958 A11 879. The land in that case belonged to the Government and was nazul. The management thereof vested in the notified area of the Bindi Board. The land was taken on lease by the defendant for a period of l 1/2 years in the first instance and thereafter for 4112 Years. After the expiry of the lease the defendant was permitted by the Board to continue in occupation as tenant and the rent used to be realised from him In the meantime, the plaintiff obtained a lease in regard to the land from the Commissioner. 1 he plaintiff could not get possession. The plaintiff filed a suit in the city civil court. The reamed single Judge of the High Court affirmed the decision of the courts below that the defendant was a trespasser and the defendants right as a lessee came to an end at the expiry of the lease in 1909. (sic) The High Court on appeal held that the lessee remained in possession after the termination of the lease and therefore there was holding over within the meaning of Section 116 of the Transfer of Property Act. The contention which was advanced that Section 2 of the Government Grants Act rendered the provisions of the Transfer of Property Act; in applicable was not accepted. The High Court correctly held that when the court is called upon to construe an instrument granting land by the Government it shall construe irrespective of the provisions of the Transfer of Property Act. The provisions of Section 116 of the Transfer of Property Act were correctly held by the High Court to be operative in that case.15.In the present case the High Court correctly found on the facts that the respondent after the determination of the leave held over. Even if the Government Grants Act applied Section 116 of the Transfer of Property Act was not rendered inapplicable. The effect of Section 2 of the Government Grants Act is that in the construction of an instrument governed by the Government Grants Act the court shall construe such grant irrespective of the provisions of the Transfer of Property Act. It does not mean that all the provisions of the Transfer of Property Act are inapplicable. To illustrate, in the case of a grant under the Government Grants Act Section 14 of the Transfer of Property Act will not apply because Sec-tion 14 which provides what is known as the rule against perpetuity will not apply by reason of the provisions in the Government Grants Act The grant shall be construed to take effect as if the Transfer of Property Act does not apply.16. Section 3 of the Government Grants Act declares the unfettered discretion of the Government to impose such conditions and limitations as it thinks fit, no matter what the general law of the land be. The meaning of Sections and. 3 of the Governments Grants Act is that the scope of that Act is not limited to affecting the provisions of the Transfer of Property Act only. The Government has unfettered discretion to impose any conditions, limitations, or restrictions in its grants, and the right privileges and obligations of the grantee would be regulated according to the terms of the grant, notwithstanding any provisions of any statutory or common law.

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

Explanation:
0[ds]7. With regard to the amount of rent payable the provisions of Section 116 of the Transfer of Property Act indicate that the renewal of the lease would mean that the terms and conditions would be the same as of the previous lease. The High Court, therefore, correctly found that in the absence of any agreement to pay Rs. 3000/- as annual rent or in the absence of any agreement and undertaking that the respondent would accept the amount fixed by the appellant- as the rent, the appellant was not entitled to anything more than Rupees 1000/- a year which was the amount of rent for the year 1949 to 1950.The lease in die present case was for the purpose of erecting a temporary rice mill and for no other purpose. The mere fact that the State is the lessor will not by it a Government grant within the meaning of the Government Grants Act. There is no evidence in the present case in the character of the land or in the making of the lease or in the content of the lease to support the plea on behalf of the State that it was a grant within the meaning of the Government Grantsthe present case the High Court correctly found on the facts that the respondent after the determination of the leave held over. Even if the Government Grants Act applied Section 116 of the Transfer of Property Act was not rendered inapplicable. The effect of Section 2 of the Government Grants Act is that in the construction of an instrument governed by the Government Grants Act the court shall construe such grant irrespective of the provisions of the Transfer of Property Act. It does not mean that all the provisions of the Transfer of Property Act are inapplicable. To illustrate, in the case of a grant under the Government Grants Act Section 14 of the Transfer of Property Act will not apply because Sec-tion 14 which provides what is known as the rule against perpetuity will not apply by reason of the provisions in the Government Grants Act The grant shall be construed to take effect as if the Transfer of Property Act does not apply.16. Section 3 of the Government Grants Act declares the unfettered discretion of the Government to impose such conditions and limitations as it thinks fit, no matter what the general law of the land be. The meaning of Sections and. 3 of the Governments Grants Act is that the scope of that Act is not limited to affecting the provisions of the Transfer of Property Act only. The Government has unfettered discretion to impose any conditions, limitations, or restrictions in its grants, and the right privileges and obligations of the grantee would be regulated according to the terms of the grant, notwithstanding any provisions of any statutory or common law.