Summarize the following court judgment. os. 621	 655 and 678 of 1955. Under Article 32 of the Constitution for the en forcement of fundamental rights. N.C. Chatterjee (section K. Kapur and Ganpat Rai	 with him) for the petitioners. 533 M. C. Setalvad	 Attorney General for India (Kan Singh and P. G. Gokhale	 with him) for respondent No. 1. K.R. Chowdhury	 for Goma	 Ghisa and Rama	 respondents in Petition No. 655 and Dhira	 respondent in petition No.678. September 27. The judgment of the Court was delivered by VENKATARAMA AYYAR J. These are applications under article 32 of the Constitution by certain jagir dars of Marwar	 challenging the constitutionality of sections 81 to 86 of the Marwar Land Revenue Act No. XL of 1949 (hereinafter referred to as the Act) on the ground that they infringe the fundamental rights of the petitioners under article 14	 article 19(1) (f) and article 31(2) of the Constitution. These sections provide for fixing fair and equitable rent payable by the tenants and prescribe the procedure to be followed therefor. Section 81 of the Act provides that when any local area has been brought under settlement operations by a notification under section 64	 the Settlement Officer or an Assistant Settlement Officer shall inspect every village in the local area	 divide it into soil classes and assessment circles	 select rentrates for the area and publish them in such manner as may be prescribed. If objections to these proposals are received	 he has to consider them	 and submit his report to the Board of Revenue. The Board has the power to sanction the proposals with or without any modifications	 and it has also the power to direct further enquiry into the matters. With a view to arriving at fair and equitable rates	 the Settlement Officer is required under section 82 to have regard to the collection of rent and cesses in the nature of rent during the ten years preceding the settlement excluding such years as the Government may	 by notification in the Official Gazette	 declare to be abnormal the average of the prices of agricultural produce during the same period	 the nature of the crops grown and the quantity of the produce and their value. Section 82(2) provides that the rent rates shall not 534 exceed one third of	 the value of the produce of unirrigated lands and one fourth of the value of the produce of irrigated lands. Under section 84	 the Settlement Officer shall determine rents whether by way of abatement	 enhancement or commutation payable for all holdings in the occupation of tenants on the basis of the rates sanctioned by the Board of Revenue. Section 86 enacts that any rent fixed by order of the Settlement Officer shall be payable from the first day of July next following the date of such order	 "unless the Settlement Officer thinks fit for any reasons to direct that it shall be payable from some earlier date". Acting under section 81 of the Act	 the Settlement Officer formulated certain proposals with reference to the rent rates in the villages comprised in the jagirs of the petitioners	 and they were published in the Gazette on 12th December 1953. Objections to those rates were filed by the petitioners on the 12th January	 1954. On 13th October 1954 the Additional Settlement Commissioner submitted his final proposals to the Settlement Officer	 who forwarded the same to the Board of Revenue for sanction. After making further enquiry	 the Board passed an order on 4 12 1954 determining the rent rates payable. Subsequent to this	 an order was also passed under section 86 of the Act bringing the sanctioned rate into operation from 1 7 1954. This order is not itself the subject of attack in these proceedings	 and it cannot be	 seeing that Petition No. 621 of 1954 was filed on 24th November 1954 before that order was passed	 and Petitions Nos. 655 and 678 of 1954 merely repeat verbatim the allegations in Petition No. 621 of 1954. Before us	 the petitioners conceded that they were not impugning the correctness of the order passed under section 86 in so far as it gave operation to the rates of rent from 1st July	 on its merits	 but that they were attacking the section as bad only as a step in establishing that the scheme of the Act	 of which section 86 is an integral part is	 taken as a whole	 an infringement of their fundamental rights under articles 14	 19 and 31(2). We have now to consider 535 whether sections 81 to 86 of the Act are bad as infringing the above provisions of the Constitution. The contention that sections 81 to 86 of the Act are void as being repugnant to article 14 is sought to be made out on two grounds. It is stated firstly that the Act applies ' only to what was prior to its merger the State of Marwar	 that the present State of Rajasthan comprises Marwar and 17 other States which have merged in it	 and that as the Act	 as it stands	 is directed against the jagirdars in one area of the State and not the whole of it	 it has become discriminatory and void. This contention is clearly untenable. What article 14 prohibits is the unequal treatment of persons similarly situated	 and therefore before the petitioners can claim the protection of that article	 it is incumbent on them to establish that the conditions which prevail in other areas in the State of Rajasthan are similar to those which obtain in Marwar. But of this	 there has been neither allegation nor proof. On the contrary	 it is stated by the respondents in para 10 of their statement that the tenants in the jagirs of Marwar were paying much more by way of rent and cesses than those in the Khalsa area of the State	 that with a view to remove the inequality between the two classes of tenants within the State	 a law was passed in 1943 providing for settlement of rent	 and that again on 10 1 1947 another law was passed abolishing all cesses (lags) and fixing the maximum share of rent payable in kind. These special features	 it is argued	 form sufficient justification for a separate legislation for this area	 It is also stated that the other States had their own rent laws suited to their conditions. There are no materials on which we could hold that the impugned Act is discriminatory in character	 and we cannot strike it down merely on the ground that it does not apply to the whole of the State of Rajasthan. A similar question arose for decision in Bowman vs Lewis(1). There	 some of the areas in the State of Missouri were governed by a judicial procedure diff (1) ; 68 536 erent from that which prevailed in others. Repelling the contention that this differentiation offended the equal protection clauses of the Fourteenth Amendment	 the Court observed: "Each State has the right to make political subdivisions	 of its territory for municipal purposes	 and to regulate their local government. As respects the administration of justice	 it may establish one system of courts for cities and another for rural districts; one system for one portion of its territory and another system for another portion. Convenience	 if not necessity	 often requires this to be done	 and it would seriously interfere with the power of a State to regulate its internal affairs to deny to it this right If a Mexican State should be acquired by a treaty and added to an adjoining State or part of a State in the United States	 and the two should be erected into a new State	 it cannot be doubted that such new State might allow the Mexican laws and judicature to continue unchanged in the one portion and the common law and its corresponding judicature in the other portion. Such an arrangement would not be prohibited in any fair construction of the Fourteenth Amend ment. It would not be based on any respect of persons or classes	 but on municipal considerations alone and a regard to the welfare of all classes within the particular territory or jurisdiction". This Court has also repeatedly held that classification might properly be made on territorial basis if that was germane to the purposes of the enactment. Having regard to the fact that the conditions of tenants vary from locality to locality	 we have no hesitation in holding that a tenancy legislation restricted to a portion of a State cannot be held on this ground alone to contravene article 14. The second ground urged in support of the contention that article 14 has been infringed is that discrimination must result from the settlement of rent being taken up only with reference to portions of the 537 area to which the Act applies and not to the whole of it	 because the rent rate is to be fixed on the basis of the average of the ten years preceding the settlement; and if the proceedings are started for different areas on different dates	 that might result in different rates being fixed	 and that would make for inequality such as is prohibited by article 14. We are unable to agree with this	.contention. Settlement operations can be conducted only by a specialised staff having technical knowledge and administrative experience	 and it might be beyond the capacity of the State to undertake them for the whole area at one and the same time. To accede to the contention of the petitioners would	 in effect	 be to prevent the States from carrying on settlement operations. It was held by this Court in Biswambhar Singh vs The State of Orissa and other8(1) and in Thakur Amar Singhji vs State of Rajasthan(2) that a provision authorising the taking over of estates on different dates was not repugnant to article 14	 and the principle of those decisions would apply to the present case as well. The contention that the impugned provisions are in contravention of article 14 must	 therefore	 be rejected. It is then contended that the provisions in question are repugnant to article 19(1) (f) of the Constitution	 because they deprive landlords of their right to realise rents from the tenants freely and without hindrance	 and are an encroahment on their right to hold property. The provision in section 82 that the Settlement Officer should	 in determining the average collection for the previous ten years	exclude from consideration abnormal years as notified by the Government was particularly attacked as a. device to reduce the rent payable to the landlord and an invasion of his rights to the property. We are unable to agree with this contention. The fundamental right which a citizen has to hold and enjoy property imports only a right to recover reasonable rent when the lands are cultivated by a tenant	 and therefore a legislation whose object is to fix fair and equitable (1) ; 	 845. (2) ; 	 538 rent cannot be said to invade that right. The contention that the provision in section 82(1) (a) that abnormal years as notified in the Gazette should be excluded in determining average collections is calculated to reduce the rent	 and is therefore unreasonable is unfounded	 because a declaration that a year is abnormal is made not only when there are bumper crops but also when the yield is very low	 and the provision is intended equally for the benefit of the tenant and of the landlord. A provision of this kind is usual in all tenancy legislation	 and there is nothing unreasonable or unfair about it. It was next contended and this was the contention most pressed on us that section 86 is bad as it confers on the Settlement Officer a power to bring the rent rates into operation from a date earlier than ' the succeeding year and even retrospectively from a date prior to the settlement	 and that such a power was repugnant to both article 19(1)(f) and article 31(2). The argument with reference to Article 19(1)(f) is that section 86 is an encroachment on the rights of a person to hold property	 and can be valid only if it falls within article 19(5)	 that it is only a law of 'a regulatory character that is protected by article 19 (5)	 that there could be regulation only with reference to rights to be exercised in future	. and that a law giving retrospective operation is consequently outside article 19(5). This contention rests on an assumption for which there is no basis. The question whether a law is valid under. Article 19 (5) can arise only when there is a violation of the fundamental right declared in article 19 (1) (f)	 and if the right to hold property imports	 as we have held it does	 only a fight to recover reasonable rent from cultivating tenants	 that right cannot be held to have been invaded by a law fixing reasonable rent	 even when it is retrospective in operation. If the rent fixed is reasonable with reference to a period subsequent to the settlement	 it must be reasonable for the period prior to it as well	 and if the settlement is not an encroachment on the rights of the holder as regards the future and that is conceded it cannot be an encroachment as regards 539 the past. A consideration	 therefore	 of the question whether a law under article 19(5) should be regulatory ' and whether a law with retrospective operation could be said to be regulatory would be wholly irrelevant for the purpose of the present controversy. The argument in support of the contention that section 86 is repugnant to article 31(2) is that to the extent that it gives retrospective operation	 it deprives the landlord of the right to rent which had accrued prior to the settlement	 and that is taking property without payment of compensation. But it is well settled that a law which regulates the relation of landlord with his tenant is not one which takes property within article 31(2)	 even though it has the effect of reducing his rights. In Thakur Jagannath Baksh Singh vs United Provinces(1)	 the question arose for decision whether the provisions of Act XVII of 1939	 United Provinces	 under which the rent payable to a landlord became diminished were obnoxious to section 299(2) of the Government of India Act	 1935. It was held by the Federal Court that they were not	 and in affirming this decision on appeal	 the Privy Council in Thakur Jagannath Baksh Singh vs United Provinces(2) observed: "The appellant relies on certain express provisions of the Government of India Act. Thus he relies on section 299 of the Act	 which provides that no person	 shall be deprived of his property in British India save by authority of law	 and that neither the Federal nor a Provincial Legislature shall have power to make any law authorising the compulsory acquisition of 'land for public purposes save on the basis of providing for the payment of compensation. But in the present case there is no question of confiscatory legislation. To regulate the relations of landlord and tenant and thereby diminish rights	 hitherto exercised by the landlord in connection with his land	 is different from compulsory acquisition of the land". It was finally urged that section 86 in so far as it (1) [1948] 6 F.L. J. 55; A.I.R. 1948 F.C. 29. (2) [1946] L.R. 73 I.A. 123. 540 conferred authority on the Settlement Officer to give retrospective operation to the rent rates was bad	 because the exercise of that authority was left to his arbitrary and uncontrolled discretion	 that the Act laid down no rules and prescribed no conditions under which the discretion had to be exercised	 and that the power conferred in those terms must be held to be unconstitutional. The decision in Thakur Raghubir Singh vs Court of Wards	 Ajmer and another(1) was relied on	 in support of this contention. There	 the question was as to the validity of a power conferred on the Court of Wards to take over the management of an estate "if a landlord habitually infringes the right of a. tenant". Under the Act	 the decision whether the condition aforesaid was satisfied depended on the subjective satisfaction of the Chief Commissioner.	 and that was final and not liable to be questioned in civil courts. It was held that a power which could be exercised at the absolute discretion of the authority was an encroachment on the rights of a citizen to hold property under article 19(1)(f)	 and that it was not saved by article 19(5). But	 in the present case	 section 86 of the Act expressly lays down that if a Settlement Officer decides to bring rates into operation from a date earlier than the following 1st of July	 it must be for reasons. There is no force in the contention that section 86 does not lay down under what circumstances such an order could be passed	 because the very nature of the thing requires that a large discretion should be left to the authority. Discretion which is wide is not necessarily arbitrary. It was said that under section 233 of the Act the civil courts are debarred from enquiring into the reasonableness of the order; but that is because matters concerning revenue and settlement are within the exclusive jurisdiction of revenue courts	 and under section 62 of the Act	 the Board of Revenue has revisional jurisdiction over all orders passed in connection with settlement. We think that the power conferred on the Settlement Officer to fix an earlier date for giving operation to the rent rate is reasonable and valid	 (1) ; 541 and that it invades no fundamental rights of the landlord. For the reasons given above	 we must hold that the scheme embodied in sections 81 to 86 of the Act does not transgress any of the Constitutional limitations	 and is valid. In the result	 the petitions are dismissed but in the circumstances	 without costs.

The petitioners	 who are jagirdars of Marwar	 sought to impugn the constitutional validity of sections 81 to 86 of the Marwar Land Revenue Act which embody a scheme for fixing fair and equitable rents payable by cultivating tenants on the ground that they infringed their fundamental rights under articles 14	 19(1)(f) and 31(2) of the Constitution. Their contentions were that after the merger of Marwar in the State of Rajasthan the Act had become discriminatory as it applied only to the jagirdars of Marwar and not to the entire body of jagirdars of the State of Rajasthan	 that settlement of rents made with reference to different areas on different dates on the basis of previous ten years ' average of collections might result in different rates of rent and lead to inequality such as is prohibited by article 14	 that the Act deprived the landlords of their right to realise rents from the tenants freely and without hindrance and invaded their right to hold property guaranteed by article 19(1)(f) of the Constitution	 that the power conferred on the Settlement Officer by section 86 of the Act to enforce the rates of rent retrospectively is an invasion of their right to hold property and amounts to acquisition of property without compensation and that it confers absolute and uncontrolled discretion on the Settlement Officer and is an encroachment on the right to hold property. Held	 repelling these contentions	 that article 14 only prohibits unequal treatment of persons similarly situated and a classification might properly be made on territorial basis	 if that was germane to the purposes of the enactment and no tenancy legislation can be held to contravene the article solely on the ground that it does not apply to the entire State. Before the petitioners could succeed it was 532 incumbent on them to show that conditions obtaining in other parts of the State were similar to those in Marwar and this they had failed to do. Bowman vs Lewis ; 	 referred to. That the provision in the Act for assessment of rents with reference to a portion of the area to which the Act applies is not a contravention of article 14. To hold otherwise would be to make it impossible for any State to carry on its settlement operation. Biswambhar Singh vs The State of Orissa and others; 	 	 and Thakur Amar Singhji vs State of Rajasthan	 ; 	 applied. That the fundamental right to hold property in the case of a	 landlord in respect of his tenanted lands is no more than the right to receive reasonable rents and no legislation which has for its object the settlement of fair and equitable rents can contravene article 19 (1)(f) of the Constitution even though it may give such rents retros pective operation. That the provision in section 86 of the Act empowering the Settlement Officer to give retrospective operation to the rates of rent does not contravene article 19(1)(f) and	 therefore	 no question as to whether such a provision is not of a regulatory character and as such prohibited by article 19(5) can at all arise. That it is well settled that a law which regulates the relation of a landlord with his tenant is not one which takes property within the meaning of article 31(2) even though it has the effect of reducing his rights. Consequently	 there is no contravention of article 31(2) of the Constitution. Thakur Jagannath Baksh Singh vs United Provinces	 [1943] 6 F.L.J. 55: A.I.R. 1943 F.C. 29 and Thakur Jagannath Buksh vs United Provinces	 L.R. 73 I.A. 123	 relied on. That section 86 of the Act does not confer an absolute and uncon trolled discretion on the Settlement Officer and such power as it gives does not constitute an encroachment on the right to hold property within the meaning of article 19(1)(f) of the Constitution. Thakur Baghubir Singh vs Court of Wards	 Ajmer and another; 	 	 explained and distinguished.