SANTOSH JAYASWAL AND ANR.

ST ATE OF M.P. AND ORS.

SEPTEMBER 11, 1995

(K. RAMASWAMY AND B.L. HANSARIA, JJ.)

Indian Registration Act, 1908/lndian Stamp Act, 1899/M.P. General Clauses Act, 1957/Transfer of Prope1ty Act, 1882 :

Ss.17(1)(c) and (d)/s.2(16), Schedule I, A1ticle 35(a)/s.2(18)/s.3-Im- C movable property--Grant of benefit a1ising out of-Right to catch fish-Held, being a Profit wising out of immovable prope1ty is "immovable prope1ty"-Is profit a prendre-lnstrwnent is compuls01ily registrable under Registration Act

and required to be engrossed with necessary stamp duty under Stamp Act.

The respondent-State Government granted to the appellants right to D catch fish in the tanks. On the requirement of registration of the instruments under Indian Registration Act, 1908 and levy of stamp duty under Indian Stamp Act, 1899, it was contended before the Division Bench of the High Court that since the profit a prendre was not immovable property, the instruments were not required to be registered. The High Court E rejected the claim. Aggrieved, the appellant filed the appeals by special leave.

It was contended on behalf of the appellants that right to catch fish was in the nature of licence and as such the instruments were neither compulsorily registrable under the Registration Act nor liable to stamp duty under the Stamp Act.

Dismissing the civil appeal arising out of L.P.A. No. 22 of 1994 and _partly allowing the civil appeal arising out of L.P.A. No. 21 of 1994, this Court

HELD : l.l. Right to catch fish would be a benefit arising out of land.

Therefore, it is an immovable property. It is a profit a prendre attached to

or benefit to arise out of the land. Therefore, it is an instrument under clauses (1) to (3) of Article 35(a) of Schedule I to Indian Stamp Act, 1899, required to be engrossed with necessary stamp duty. If its value is more than H 527

A Rs. 100 or the lease is on year to year basis, it is compulsorily registrable instrument under s.17(l)(d) oflndian Registration Act, 1908. [530-D-E]

The Bihar Eastem Gangestic Fishennen Cooperative Society Ltd. v.

Sipahi Singh and Ors., [1977) 4 SCC 145, relied on.

B Ananda Behari andAnr. v. T7ie State of Olissa andAnr., [1955) 2 SCR 919; The'State of West Bengal v. Shebaits of Iswar Sli Saradia Thakurani and Ors., [1972) 4 SCC 158; Board of Revenue and Ors. v.A.M. Ansali and Ors., [1976) 3 SCC 512 and State of Olissa and Ors. v. Titaghur Paper Mills Co.

Ltd. & Anr., [1985) Supp. SCC 280, inapplicable.

C 1.2. In the instant case, in the absence of the documents and there

being no controversy before the Division Bench of the High Court whether the documents were leases or licenses, the High Court was right in holding that the documents were leases. [530-H]

1.3. In Civil Appeal arising out of L.P.A. No. 22 of 1994 since the duration of lease is more than a year, it is an instrument compulsorily registrable by operation of s.17(1)(c) of the Registration Act and liable to stamp duty under the stamp Act. Therefore, it cannot be acted upon unless it is duly engrossed with stamp duty and registered. [531-E]

E 1.4. Since duration of lease in the civil appeal arising out of L.P.A.

No. 21 of 1994 is only nine months, it is not compulsorily registrable instrument by operation of s.17(1)(c) of Registration Act. However, it is an instrument which requires to bear appropriate stamp duty. [531-D]

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 8429-30 F of 1995.

From the Judgment and Order dated 26.8.94 of the Madhya Pradesh High Court in LP.A. Nos. 21 & 22 of 1994.

Pramod Swamp, for the Appellants.

Mrs. Kitty Kumaramanglam and S.K. Agnihotri, for the Respondents.

The following Order of the Court was delivered :

H Leave granted.

These appeals by special leave arise from the judgment dated A 26.8.1994 of the Division Bench of the High Court of Madhya Pradesh in LP.A. Nos. 21 and 22 of 1994 titled State of M.P. and Others v. Santosh Jaiswal and LP.A.No. 2J./94 titled State of M.P. and Others v. Surendra Shukla. The question canvassed before the Division Bench was whether the right to catch fish in the tank granted in favour of the appellants was in the nature of a lease or licence, an instrument compulsorily registerable under B the Indian Registration Act and liable to stamp duty under the Indian Stamp Act. The Division Bench held that they were leases in respect of Santosh Jaiswal's case (L.P.A. 7 No. 21/94) for a period of nine months and in Surendra Sliukla's case (L.P.A. No. 22/94) for more than one year.

In the counter-affidavit filed in this Court, it was stated that the lease was for more than two years.

Shri Pramod Swamp, learned counsel for the appellants, contended c

that it is only a licence and that, therefore, it is neither an instrument compulsorily registrable under Section 17 of Registration Act nor liable to Stamp duty under the Indian Stamp Act, We do not agree with the learned counsel. It is true that the learned Single Judge while disposing of the writ D petition found that it was a licence but not a lease but before the Division Bench, controversy whether what was granted to the appellant is a licence or a lease was not put in issue. On the other hand, it proceeded on the premise that they were leases. The appellants were not even raised any contention in SLP nor have they placed any document before us. Under E these circumstances, we would proceed on the premise that they are leases.

The contention raised in the High Court was that since profit a prendre is not an immovable property and that, therefore, it is not compulsorily registerable instrument. That contention was rejected by the High Court.

Section 3 of the Transfer of Property Act defines "immovable proper- F ty". It does not include standing timber, growing crop or grass. Clause (26) of Section 3 of the General Clauses Act is equivalent to Section 2(18) of the M.P. General Clause Act which defines immovable property thus:

"2(18) "Immovable property" included land benefits, to arise out of land and, things attached to the earth, or permanently fastened G to anything attached to the earth."

Section 17(1)(d) of the Indian Registration Act provides that certain documents shall be registered, if the property to which they relate is situate in a district in which, and if they ave been executed on or after the specified date. By virtue of Section 17(1)(c) leases of immovable property H

A from year to year, or for any term exceeding one year, or reserving a yearly rent is compulsorily registerable instrument. This Court considered the controversy in The Bihar Eastem Gangetic Fishennen Cooperative Society Ltd. v. Sipahi Singh and Others, [1977) 4 SCC 145 and held that if the profit a prendre is a tangible immovable property, its sale has to be by means of

B a registered instrument in case its value exceeds Rs. 100. If it is intangible, the sale is required by Section 54 of the Transfer of Property Act, 1882, to be effected by a registered instrument, whatever its value. Therefore, in either situation the grant of the profit a prendre has to be by means of a registered instrument.

C Since the definition of "Immovable Property" in M.P. General Clause Act includes benefits to arise out of land and things attached to the earth, the question is whether the right to catch fish is a benefit to arise out of the land. It cannot be controverted that catching fish from the tank would be a benefit arising out of the land. Therefore it is an immoyable property.

D Even though it is a profit a prendre, since it is benefit to arise from the land, it is an immovable property. If its value is more than Rs.100 or the lease is on year to year basis, it is a compulsory registerable instrument under Section 17(1)(c) of the Indian Registration Act. It is an instrument under Article 35(a) of Schedule 1-A Clauses (1) to (3) of the Stamp Act.

Therefore, it requires to be engrossed with required stamp duty and E registered under Section 17(1)(d) of the Indian Registration Act.

Though Shri Pramod Swarup, leaned counsel for the appellant, sought reliance on the judgment of this Court in Ananda Behari and another v. The State of 01issa and Another, [1955) 2 SCR 919; The State of F West Bengal v. Shebaits of Jswar S1i Saradia Thakurani and Others, [1972) 4 SCC 158, Board of Revenue and Others v.A.M. Ansari and Others, (1976) 3 SCC 512 and State of Orissa and Others v. Titaghur Paper Mills Co. Ltd. and Another, [1985) Supp. SCC 280 they render little assistance to the facts in these cases. Therein the question was whether the right to catch fish is a lease or a licence. In view of the language of documents in those cases, G this Court considered that it would be a liecence but not a lease. Since the document has not been placed before us, we cannot decipher whether it is a licence or a lease. Since the controversy was not put in issue before the Division Bench, we proceeded on the premise that it is a lease. Under these circumstances, we are of the considered view that the Division Bench of H

the High Court is right in its conclusion that it is a lease and being of the A value of more than Rs. 100, and upwards, it is compulsorily registerable under Section 17(1)(d) of Indian Registration Act.

Under Section 17 of the Registration Act, read with Section 2(16) of the Indian Stamp Act, 'lease' means a lease of immovable property and includes a patta, a kabuliyat or other undertaking in writing, not being a B counter-part of a lease to cultivate, occupy, or pay or deliver rent for, immovable property etc. Right to catch fish is profit a prendre and benefit to arise out of land is an immovable property for the purpose of stamp duty. It would, therefore, be clear that since it is a right given to the appellants to catch fish in the tank, it is a profit a prendre attached to or C benefit to arise out of the land. Therefore, it is an instrument for the purpose of stamp duty. Since the duration of lease in LP.A. No. 21/94 is only nine months, it is not compulsorily registerable instrument by operation of Section 17(1)(c) of the Act. The Civil Appeal arising out of LP.A. 21/94 relating to Santosh J aiswal is, therefore, partly allowed. lt is an instrument which requires to bear the appropriate stamp duty but is not a D compulsorily registerable instrument. In appeal arising out of L.P.A. 22/94 of Surendra Shukla, since the duration of lease is more than a year, it is an instrument and compulsory registerable by operation of Section 17(1)( c) of the Registration Act and liable to stamp duty under the Indian Stamp Act. Therefore, it cannot be acted upon unless it is duly engrossed E with stamp duty and registered.

The appeals are accordingly disposed of. No costs.

R.P.

Appeals disposed of.