Holding

The Supreme Court held that the Taluk Land Board could not revisit the fuel area and rested tea area decisions due to res judicata and issue estoppel, but the appellant may seek exemption under Section 81(3) and the Board may determine the interspersed land claim.

Summary

Hope Plantations Ltd., which owned a large tea estate, claimed exemption from the ceiling area under the Kerala Land Reforms Act for land classified as fuel area, rested tea area, roads and buildings, and other agricultural land interspersed. The Taluk Land Board initially disallowed the fuel and rested tea claims, but the Kerala High Court restored them and remanded the other claims. The State appealed, and the Supreme Court examined whether the Board could revisit the fuel and rested tea decisions after the earlier Supreme Court judgment, and whether the appellant could claim exemption for cardamom plantation and interspersed land. The Court held that the principles of res judicata and issue estoppel barred the Board from re‑examining the fuel and rested tea areas, but the Board could still determine the interspersed land claim. The Court also allowed the appellant to approach the State Government for exemption under Section 81(3) of the Act. Consequently, the appeal was partly allowed and the High Court’s order on fuel and rested tea areas was upheld.

Issues considered

The applicability of res judicata and issue estoppel to administrative proceedings before the Taluk Land Board.
Whether the Taluk Land Board can review its earlier decision on fuel area and rested tea area under Sections 85(9) and 85(9A) of the Kerala Land Reforms Act.
Whether land cultivated with cardamom prior to 1 April 1964 can be treated as a plantation and exempted under Section 81(1)(e) and Section 2(44).
The scope of the Board’s power to determine "other agricultural land interspersed" under Section 2(44).
Whether the appellant may seek exemption under Section 81(3) of the Act after the earlier determinations.
The relevance of the amended provisions and subsequent case law on the interpretation of "ancillary" use of land.

Legislation cited

Code of Civil Procedure, 1908s. 11, s. Order 47 Rule 1
Constitution of Indias. 136, s. 142
Indian Evidence Act, 1872s. 115
Kerala Land Reforms Act, 1963s. 2(44), s. 81, s. 81(3), s. 82, s. 83, s. 85(5), s. 85(9), s. 85(9A)

Subjects

res judicataissue estoppeladministrative lawKerala Land Reforms Actexemptionfuel arearested tea areaagricultural land interspersedSection 85 review powerSection 81(3)cardamom plantation

Judgment

A HOPE PLANTATIONS LTD.
v.
• T ALUK LAND BOARD, PEERMADE AND ANR .

NOVEMBER 3, 1998

B
[K.T. THOMAS, D.P. WADHWA AND
SYED SHAH MOHAMMED QUADRI, JJ.]

Tenancy and Land Laws :
c Kera/a Land Reforms Act, 1963-Section 85(9) and (9-A), (5) and (2),
Form 1, Sections 2(44) and (3), 82, 81(3) and 83-Power of Taluk Land
Board under Section 85(9-A) and 85(9) to review its decision-Appel/ant,
owner ofestate mainly oftea plantation-Sought exemption ofspecific portions
of land under the heads (1) Tea Plantation, (2) Roads and Buildings, OJ Fuel
D Area, and (4) Other Agricultural Land lnterspersed-Taluk Land Board
disallowing claims under the heads 'fuel area" and "rested areas" as well
as under "other agricultural land interspersed"-High Court, in revision,
restoring the appellant's claim under heads (1) and (3) and remanding the
matter on heads (2) and (4)-0n appeal by the State, held: in respect of "fuel
area" and "rested area" order of the Taluk Land Board deserves to be
E restored-Jn the remand proceedings, Taluk Land Board took up the question
of "other agricultural land interspersed"-Appellant raising the claim for
exemption offuel area on the ground that within that area there wa.i: a pre
1964 cardamom plantation-Appellant also reiterating its claim to exemption
of the rested tea area on the ground of being within the tea plantation area-
F By a majority, Taluk Land Board allowing both the claims of the appellant
and also the claims under the head 'other agricultural land interspersed'-
High Court, in revision, disallowed the claims of 'fuel area' and cardamom
plantation' and remanded the third claim of "other agricultural land
interspersed"-During Pendency of the appeal before this Court, Cardamom
Board inspected the spot and confirmed the appellant's claim of cardamom
G plantation existing prior to 1964 within the specified area-In absence of
inclusion of such claim in the statement/return filed by the appellant in Form
1 and in view of the dispute regarding "fuel area" and "rested tea area"
having been determined by this Court-Held, there was no scope for any
review by Taluk Land BoaFd under Section 85(9) or 85-A to hold that in the
H fuel area there was cardamom plantation-Moreover, notwithstanding after
514
HOPE PLANTATION LTD. v. TALUKLANDBOARD, PEERMADE 515
remand, Taluk Land Board was also vested with the power to determine the A
"area of other agricultural land interspersed" under Section 2(44) (c), the
Board could not hold that the area under that head exceeded as claimed by
the appellant-Power of review was also subject to principles of res judicata
and estoppel-Principles ofres judicata and estoppel apply even to proceedings
before the administrative authority-However, on the question offuel area in B
a subsequent decision a larger Bench of this Court had taken a different view
and since the case that rested tea area was part of tea plantation had not been
properly projected before this Court, appellant was allowed to approach the
State Government to seek exemption under Section 81(3)-Res Judicata-
Constructive Res Judicata-Applicability-Estoppel-Administrative law-Civil
Procedure Code, 1908, Section 11 and Order 47 Rule 1 Explanation-Evidence C
Act, 1872, Section 115-Kerala Land Reforms (Ceiling) Rules, 1970, Rule 6-
Constitution of India, Articles 136 and 142-Relief

Civil Procedure Code, 1908:

Section I I-Res Judicata-Basis and scope of-Comparison with D
estoppel-"Cause of action estoppe/" and "issue estoppe/"-Distinction-
Evidence Act, 1872, Section 115.

Appellant had purchased an estate mainly of tea plantation from South
India Tea, a respondent in an earlier appeal before this Court (CA 227178) E
on the question of exclusion of "fuel area" from the plantation which was
otherwise exempt from the limitation of"ceiling area" under the provisions
of Kerala Land Reforms Act.

Appellant filed return before the Land Revenue Board in relation to
tea plantation held by it Total area of the land held by appellant was 4251.19 F
acres, out of which 267.16 acres were sought to be surrendered. Appellant
claimed exemption under four heads, viz, (i) Tea Plantation, ii) Roads and
Buildings; iii) Area for fuel trees; and iv) Other Agricultural Land
Interspersed. Taluk Land Board disallowed substantial claims of the
appellant for exemption as 'fuel area' and rested tea area'. The appellant G
filed revision before the High Court which restored the claims made by the
appellant under the heads 'fuel areas' and 'rested tea area' and in respect
of the heads 'roads and buildings' and 'other agricultural land interspersed'
remanded the matter to Taluk Land Board for re-determination of the
ceiling area. Taluk Land Board as well as the State filed an appeal before
this Court against the order of the High Court, and appeal was allowed by H
516 SUPREME COURT REPORTS [1998] SUPP. 2 S.C.R.

A this Court restoring the orders of the Taluk Land Board.
In the proceedings pursuant to remand by the High Court, Taluk Land
Board found that out of924.01 acres claimed by the appellants fuel clearing
area for firewood for tea manufacture, an area of 421.88 acres contained
cardamom plantation which had been planted prior to 1964. Taluk Land
B Board was of the view that the remaining 302.13 acres out of924.0l acres
should also be exempted as it was satisfied that the area earlier claimed was
interspersed with cardamom plantation. Since it was first claimed as fuel
clearing area the interspersed area could not be taken and exempted whole
of 924.01 acres holding that it could not be treated as surplus land. On the
C question of claim of the appellant regarding 136.17 acres as 'rested tea area',
reference was made to the observation of this Court where it was held that
if the plucking was carried on in the said land, it would be included wi1thin
the plantation. Out of fuel clearing area of 924.01 acres and rested tea 21rea
of 136.17 acres the decision ofTaluk Land Board was by majority with the
Chairman dissenting on the ground that the stand of appellant regarding
D 'rested tea area' and 'fuel area' stood concluded by the decision of this
Court. On the other two heads, namely, the area of 202.55 acres under' roads
and buildings' and other area of 263.63 acres as 'agricultural land
interspersed' with other plantation crops as claimed by the appellant, the
decision of the Taluk Land Board was unanimous. High Court, in the
E revision filed by State, agreed with Taluk Land Board that it could nott go
into the question of 'fuel area' and 'rested tea area' after the decision of
this Court. Appellant was held entitled to 200 acres of land only as fuel area.
High Court upheld the claim of apflellant for 202.55 acres of land under
building sites and roads. As regards 263.80 acres of land claimed by the
appellant as interspersed with cardamom, High Court, however, remanded
F the matter to Taluk Land Board to decide afresh. High Court also upheld
the contention of the State that in the return earlier filed by the appellant it
had not claimed any land under cardamom plantation and as such exempt
from visiting and that the appellant was not entitled to get exemption on
any ground other than that shown in the statement. Hence this appeal.
G It was contended by the appellant that statement/return which was
filed showed as to how exemption was being claimed for the lands under
Section 81 of the Act; at the time when the statement was filed, positio~1 of
law in relation to interpretation of material provision in the Act was 1~ot
very clear. There was an order of the State Land Board under Kanan Devan
H Hills (Resumption of Lands) Act, wherein ratio of fuel area worked out to
HOPE PLANTATION LTD. v. TALUKLAND BOARV, PEERMADE 517
2.3 and on that basis the chunk of land was claimed by the appellant as fuel A
area and sought to justify the entire extent of 924 acres claimed to be bona
fide used as fuel areas; under section 2(44) of the Act, agricultural lands
interspersed within the boundaries of the area cultivated with plantation
crops, not exceeding such extent as determined by the Land Board as
necessary for the protection and efficient management of such cultivation B
was treated as plantation of exemption from the ceiling area and at the
material time when Taluk Land Board made order, it was not competent
to examine the claim regarding land interspersed with plantation crops; the
proposition oflaw laid down that fuel wood supplied to the employees could
not be said to be for ancillary purpose, was no longer a good law; Taluk
Land Board, while it was seized of the matter on remand could reopen the C
whole case when it was pleaded before it in an affidavit that 421.88 acres of
land contained cardamom plantation coming within the definition of

- 'plantation' by virtue of Section 81(1)(e) of the Act; principle ofresjudicata
cannot be made applicable in these proceedings as it is a case of
expropriatory law; there could also be no plea of estoppel; the report of D
Cardamom Board accepted the majority view ofTaluk Land Board as well
as the stand of the appellant that cardamom plantation existed prior to 1964,
and therefore, the cardamom area was exempted from the provision of the
Act, Taluk Board Land had power under Section 85(9A) of the Act to review
its own decision and this could be done on the ground that there was a failure
on the part of the appellant to produce relevant data regarding fuel area, E
rested tea and cardamom plantation.

It was contended by the respondent that after the decision of this Court
in CA 227n8, the jurisdiction ofTaluk Land Board was barred on two items
namely, fuel area and rested tea area, in the statement filed in Form I, it
was nowhere mentioned that there was any cardamom plantation; F
cardamom plantation had to come within the meaning of the word
'plantation' and it was not required to refer to the exclusive definition of
the Act, Taluk Land Board on remand could not examine the appellant over
and above 263.83 acres as exempt on account of other agricultural lands
interspersed. G
Partly allowing the appeal, this Court

HELD : I.I. Form I under which statement/return is to be filed
requires complete details of the plantation as meant in Section 2(44) of the
Kerala Land Reforms Act. It is to be accompanied with various annexures. H
518 SUPREME COURT REPORTS [1998] SUPP. 2 S.C.R.

A The appellant never claimed exemption on the ground of a cardamom
plantation existing prior to 1964. It never asked for amendment of the
return/statement at any stage of the proceedings. It sought exemption on
the ground of the land under the heading "fuel area". Once the matter had
been determined by this Court in appeal, there was no scope for any review
B by the Taluk Land Board to hold that there was a cardamom plantation
existing prior to 1964 in that very area. The respondent has rightly
submitted that there was no foundation for review of that part of the land
falling under the "fuel area" which was, in fact, cardamom plantation. There
was no scope for invoking the provisions of Section 85(9) or 85(9-A) of the
Act.
c Chettian Veetil Ammadv. Ta/ukLand Board, [1980] 1SCC499, referred
to.

Devi/al Modi, Proprietor MIS Daluram Pannalal Modi v. Sales Tax
Officer, [1965] 1 SCR 686; Forward Construction Co and Ors. v. Prabhat
D Manda/ (Regd.) Andheri and Ors., [1986) 1 SCC 100 and Y.B. Patil and Ors.,
v. Y.L. Patil, AIR (1977) SC 392, relied on.
Daryao v. State of U.P., [1962) 1 SCR 574; Anant Bhikkappa Patil v.
Shankar Ramchandra Patil, AIR (1943) PC 196 and Malankara Rubber and
Produce Co. v. State of Kera/a, [1973) 1 SCR 399, referred to.
E Isabella Johnshon v. MA. Susai, AIR (1991) SC 993; Sunderabai v.
Devaji Shankar Deshpande, AIR (1954) SC 82; Chathunny v. Taluk Land
Board, (1981) KLT 74 and Thampi Gounderv. State ofKera/a, (1994) 1 KLT
89, distinguished.

1.2. The High Court had set aside the order of the Taluk Land Board
F allowing exemption of 100 acres when the appellant had claimed 268.83
acres as agricultural land interspersed within the boundaries of the area
cultivated by the appellant. The extent of this area was to be determined by
the Land Board as the Taluk Land Board at the relevant time had no
jurisdiction to so determine. The appellant had specifically claimed 263.83
G acres of such land under the head "other agricultural land interspersed".
After the remand, the Taluk Land Board was also vested with power w.e.f.
7-7-1979 to determine the extent of land under Section 2(44)(c) oHhe Act.
That would not, however, mean that the Taluk Land Board could now
determine that area under this head. To the extent that the Taluk Land
Board by its order dated 26-7-1980 upheld the claim of the appellant to
H 263.83 acres as "agricultural land interspersed within the boundaries of the
HOPE PLANTATION LTD. v. TALUKLANDBOARD, PEERMADE 519
area cultivated with plantation crops" It cannot be faulted. (536-D-E) A
2.1. The principles of estoppel and res judicata are based on public
policy and justice. Doctrine of res judicata is often treated as a branch of
law of estoppel though these two doctrines differ in some essential
particulars. Rule of res judicata prevents the parties to a judicial
determination from litigating the same question over again even though the B
determination may even be demonstratedly wrong. When the proceedings
have attained finality, parties are bound by the judgment and are estopped
from questioning it. They cannot litigate again on the same cause of action
nor can they litigate any issue which was necessary for decision in the earlier
litigation. These two aspects are "cause of action estoppel" and "issue C
estoppel". These two terms are of common law origin. Again, once an issue
has been finally determined, parties cannot subsequently in the same suit
advance arguments or adduce further evidence to show that the issue was
wrongly determined. Their only remedy is to approach the higher forum if
available. The determination of the issue between the parties gives rise to D
an issue estoppel. It operates in any subsequent proceedings in the same suit
in which the issue had been determined. Section 11 CPC contains provision
of res judicata but these are not exhaustive of the general doctrine of res
judicata. Legal principles of estoppel and res judicata are equally applicable
in proceedings before administrative authorities as they are based on public
policy and justice. [536-H; 537-A-D) E
Gopal Prasad Sinha v. State ofBihar, (1970) 2 SCC 905, relied on.

Chettian Veetil Anand v. Taluk Land Board, (1980) 1 SCC 499 and
Pioneer Rubber Plantationv. State ofKera/a, [1992) 4SCC175, referred to.

Arnoldv. National Westminster Bank Pie. (1991) 2 AC 93, referred to. F
2.2. The plea of res judicata, though technical, is based on public policy
in order to put an end to litigation. It is, however, different if an issue which
had been decided in an earlier litigation again arises for determination
between the same parties in a suit based on a fresh cause of action or where G
there is continuous cause of action. The parties then may not be bound by
the determination made earlier ifin the meanwhile, law has changed or has
been interpreted differently by a higher forum. But that situation does not
exist in the present case. Principles of constructive res judicata apply with
full force. It is the subsequent stage of the same proceedings. The
Explanation to Rule 1 of Order 47 CPC postulates that the decision on a H
520 SUPREME COURT REPORTS [1998] SUPP. 2 S.C.R.

A question of law on which the judgment of the Court is based has been
reversed or modified by the subsequent decision ofa superior court in any
other case, shall not be a ground for review of such judgment". [540-G-H)

3.1. Since the appellant never claimed exemption outside the ceiling
area on the ground of cardamom plantation, the question was never gone
B into in the earlier proceedings of this Court. This point, therefore, could
not be agitated before the Taluk Land Board dealing with the matter on
remand as finality is attached to the area under the fuel area and rested tea
area for which exemption was not fully granted. It is, therefore, unnecessary
to go into the question if a cardamom plantation existed at the relevant time.
c (541-B-C)
3.2. However, it appears proper that the appellant be given an
opportunity to approach the State Government to seek exemption under
the provisions of Section 81(3) of the Act. This is particularly so as a Three-
Judge Bench of the Court has held that supply offuel wood to employees is
D for the purpose connected with the plantation. Also, that the plea that the
rested tea area is a part of the tea plantation was not properly projected
before this Court. [541-D-E)
Pioneer Rubber Plantation v. State ofKera/a, (1992) 4 SCC 175, referred
to.
E Tea Encyclopedia ofthe Indian Tea Association, Scientific Department;
E.C. Elliot and F.J. Whitehead: Tewa Plantation in Ceylon; Claude Bald: Indian
Tea., referred to.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 540 of
1986.
F
From the Judgment and Order dated 6.11.84 of the Kerala High Court
in C.R.P. No. 2034 of 1981.
Harish N. Salve, Joy Joseph, P.H. Parekh, Sanjay Bhartari and E.R.
Kumar for the Appellant.
G P. Krishnamoorthy and K.M.K. Nair for the Respondents.

The Judgment of the Court was delivered by
D.P. WADHWA, J. This is tile second round of litigation. Earlier, it
was the Taluk Land Board and the State of Kerala which had come to this
H Court in appeal [CA No. 227178 decided in batch of appeals in Chettain
HOPE PLANTATION LTD. v. TALUKLANDBOARD, PEERMADE [D.P. WADHWA, J.]521

Veetil Ammad and Anr. v. Ta/uk Land Board and Ors., [1980] 1 SCC 499 on A
the question of exclusion of 'fuel area' and 'rested area' from the plantation
which is otherwise exempt from the limitation of "ceiling area" under the
provisions of the Kerala Land reforms Act, 1963 (for short 'the Act'). Present
appellant had purchased the estate mainly of tea plantation from South India
Tea Estate Company Ltd. which was the respondent in the earlier appeal in B
this Court. (CA 227178).
The Act came into force on April l, 1964. The Kerala Land Reforms
(ceiling) Rules, 1970 (for short 'the Rules') have been framed under the Act,
which prescribed the Form in which the return/statement is required to be
filed by a person having land in excess of the "ceiling area" fixed under the C
Act or claiming exemption of any land as not falling within the ceiling area
at all.

Predecessor-in-title of the appellant (South India Tea Estate Company
Ltd.) filed return on March 28, 1970 before the Land Board in relation to tea
plantation held by it. (Hereinafter when we refer to the appellant it will mean D
and include its predecessor-in-title as well.) Total area of the land held by the
appellant is 4251.19 acres. Out of this an area of 267 .16 acres was sought to

.. be surrendered. From the area held by the appellant it claimed exemption
under four heads, namely, (1) Tea Plantation (2) Roads & Building; (3) Area
for Fuel Trees; and (4) Other agricultural lands interspersed. By order dated
June 25, 1976 Taluk Land Board disallowed substantial claims of the appellant E
for exemption as 'fuel areas' and 'rested tea area'. Matter was taken up by
the appellant to the Kerala High Court in revision which by order dated
March 15, 1977 restored the claims made by the appellant under those two
heads and under the heads 'Roads and Buildings' and 'Other Agricultural
Land interspersed' and remanded the case to the Taluk Land Board for re- F
determination of the ceiling area. The Taluk Land Board and the State of
Kerala which felt aggrieved appealed to this Court regarding the claims of
exemption under the heads 'fuel area' and 'rested tea area'. This Court by
judgment dated May 2, 1979 allowed the appeal and restored the orders of
the Taluk Land Board. We will have occasion to refer to this judgment in
detail at a subsequent stage of this judgment. No final orders, however, could G
be passed by the Taluk Land Board under the Act as it remained seized of
the matter under the two heads on which High Court had remanded the
matter.
Analysis of the orders of the Taluk land Board and of the High Court
are best reflected as under: H
522 SUPREME COURT REPORTS [1998] SUPP. 2 S.C.R.

A Head of Exemption Exemption clai- Exemptions al- Exemptions al-
of Land med by appellant lowed by Taluk lowed by High
(In acres) Land Board by Court by order
Order dt. 25.6.76 dt. 15.3.77 (In
(In acres) acres)

B Tea Plantation 2593.64 2457.47
(including rested (136.17 disallow- 2593.64
area 136.17) ed on the ground
being rested tea)

c Roads & Buildings 202.55 188.00 Remanded

Area under Fuel 924.01 200.00
Trees (ancillary to 924,01
plantation i.e. fuel
for tea manu-
D facture, roads,
buildings, factory
etc. for working)

Other agricultural 263.83 100.00 Remanded
..
E lands interspersed

On remand Taluk Land Board again took up the matter after judgment
of this Court dated May 2, 1979 in Chettian Veetil, Ammad and Anr. v. Taluk
Land Board and Ors., [1980] 1 SCC 499. In the proceedings pursuant to the
remand the Taluk Land Board considered the question of interspersed
F agricultural land as the appellant had now pitched its claim on that basis as
well. Equally the appellant claimed that there were cardamom plantation
within the fuel area which existed and which dated back prior to April l,
1964 and which would also be exempt. It also claimed that the rested tea area
would, in fact, fall within tea plantation. Taluk Land Board by order dated
G July 26, 1980 decided the matter in favour of the appellant. Chairman of the
Taluk Land Board, however, dissented as· according to him stand of the
[
appellant regarding 'rested tea area' and 'fuel area' stood concluded by the
decision of the Supreme Court aforesaid. Aggrieved, now the State of Kerala
challenged the order in the Kerala High Court in revision. By order dated
November 6, 1984 High Court set aside the order of the Taluk Land Board
H as regards the 'fuel area' and 'rested area'. It negatived the plea of the
HOPE PLANTATION LTD. v. TALUK LAND BOARD, PEERMADE [D.P. WADHWA, J.]523

appellant that there was any plantation of cardamom within the fuel area A
existing earlier to April I, 1964. High Court also set aside the finding of the
Taluk Land Board as regards the claim of exemption for the lands interspersed
within the boundaries of the area of plantation with plantation crops and
directed the Taluk Land Board to re-determine the question afresh if it fulfilled
the requirement of Section 2(44) of the Act and also keeping in view the
observations made in the judgment. High Court, however, did not interfere B
with the decision of the Taluk Land Board as regards "lands necessary for
road, buildings, factory, store, etc." Now the break-up would be as under:-
Head ofExemption Exemption clai- Exemptions al- Exemptions al-
of Land med by appellant lowed by Taluk lowed by High
(In acres) Land Board by Court by order c
Order dt. 26.7.80 dt. 6.11.84 (In
(In acres) acres)

Tea Plantation 2593.64 2593.64 2457.47
(Including rested (136.17 dis- D
area 136.17 allowed claim as
rested)

Roads & Buildings 202.55 202.55 202.55

Area under Fuel 924.01 20000 200.00 E
Trees (ancillary to (fuel trees) (claim of carda-
plantation i.e. fuel 421.88 (carda- mom plantation
for tea manu- mom plantation and inter-
facture, roads, also claimed as spersed land
buildings, factory interspersed land disallowed)
F
etc. for working) under cardamom)
302.13 (inter-
spersed land)

Other agricultural 263.83 263.83 Remanded
lands interspersed G

The appeal filed by the State against earlier order dated March 15,
1977 of the High Court came to be decided on May 2, 1979 along with many
other appeals from the various judgments of the Kerala High Court and is
reported as Chettian Veetil Ammad and Anr. v. Taluk Land Board and Ors., H
524 SUPREME COURT REPORTS [1998) SUPP. 2 S.C.R.

A [1980) l SCC 499. This court was considering a group of appeals arising
from various judgments of the Kerala High Court relating to the
implementation of provisions for the restriction of ownership and possession
of land in excess of ceiling area and the disposal of excess land under the
provisions of the Act. This Court noted that there were three points of
B controversy and gave its decision. However, none of those points were
concerned in the appeal filed by the Taluk Land Board (CA 227178). After
giving answer to the question this Court examined individual appeals and
dealing with the appeal in the case of the appellant, it held as under :
"The controversy before us relates to exclusion of "fuel area" and
"rested area". The Company has claimed that it has planted red gum
c as fuel in 924.0 l acres as it was required for the "manufacture of
tea". The Taluk Board found it to be an exorbitant claim and reduced
it to 200 acres, but the High Court has restored the entire claim. The
General Manager of the Company has stated that firewood is being
supplied to the employees free of cost. So the claim to plant red gum
D all over is belied by its General Manager's statement. Moreover supply
of fuel wood cannot be said to be a purpose "ancillary to the cultivation
of plantation crops". The Land Board has disallowed the claim for
exemption of 136.17 acres, but it has been allowed in full by the ...
High Court. Here again the High Court was not justified in interfering
with the Board's finding of fact for there was nothing to show that
E it was an area from which crop was not gathered at the relevant time.
If that had been so, it might have been an area within the plantation.
In fact it appears from the order of the Board that no other estate had
made any such claim. The appeal is therefore allowed to the extent
that the Board's decision is restored in both these matters."
F Under Section 2 (44) of the Act when land is principally used for
cultivation of tea, coffee, cocoa, rubber, cardamom or cinnamon, it would be
-
plantation and the term 'plantation' also includes agricultural lands interspersed
within the boundaries of the area cultivated with plantation crops, namely,
tea, coffee, cardamom etc. and the extent of this area is to be determined by
G the L11nd Board or Taluk Land Board as necessary for the protection and
efficient management of the cultivation of plantation crops. The term
'plantation' also includes land used for the purpose ancillary to the cultivation
of plantation crops or even for the preparation of the same for the market
which also means lands used for the construction of office buildings, godowns,
factories, quarters for workmen, hospitals schools and play grounds. Under
H Section 2(3) 'ceiling area' means the extent of land specified under Section
HOPE PLANTATION LTD. v. TALUKLAND BOARD, PEERMADE [D.P. WADHWA,J.)525

82 as the ceiling area. Section 82 prescribes the 'ceiling area' up to which a A
person can hold the land. Section 81 exempts certain lands which may not
fall within the limits of the ceiling area. Plantation, as defined in Section
2(44), is exempt from the rigour of the ceiling area. Sub-section (3) of Section
81 empowers the Government, in public interest, to exempt any other land
over and above the ceiling area and subject to such restrictions and conditions B
as it may deem fit to impose. Section 83 prohibits any person from owning
or holding or possessing land in excess of the ceiling area. Under Section 85
where a person owns or holds land in excess of the ceiling area, he is required
to file a statement before the Land Board in the Form prescribed wherein he
is to indicate the lands proposed to be surrendered. Under sub-section (5), the
statement so filed is to be transferred by the Land Board to the Taluk Land C
Board to verify the particulars and then by order to determine the extent of
identity of the land which is surrendered. Under sub-section (9), Taluk Land
Board on certain conditions existing and at any time has power to set aside
its order made under sub-section (5) and proceed fresh under that sub-section.
Sub-section (9A) which was inserted by the Amending Act w.e.f. May 30,
1989, Taluk Land Board has been given powers to review its decisions. D

Statement/Return under sub-section (2) of Section 85 is required to be
filed in Form I under rule 4. Rules further prescribe as to how the statement
will be filed before the Land Board and then transferred to the Taluk Land
Board, its verification as to ascertainment and determination of the extent and E
identity of the land to be surrendered; publication of draft statement and
service of draft statement on persons interested; enquiry to determine extent
and identity of the land surrendered; and such other matters. Statement under
Section 85(2) in form No.I requires various particulars. Requirements under
Clauses (IO) and (11) of statement are:
F
"(10) (a) Is any land included in Annexure A in the possession of other
persons by way of mortgage or otherwise and if so,

(b) have particulars of such land been furnished in Annexure E?

(I !)(a) Is exemption claimed under Section 81 of the Act in respect G
of any land included in Annexure A, and if so,
(b) have particulars of such land been furnished in Annexure F
and statement under rule 6 in respect of plantation, if any,
been attached?"

Under Annexure A particulars of all lands owned or held or possessed H
526 SUPREME COURT REPORTS [1998] SUPP. 2 S.C.R.

A under mortgage on 1.1.1970 are to be furnished. This annexure is divided
into various sections. Under section 1, particulars of land held as owner are
required to be given. Under Sections 2 and 3 respectively, particulars ofland
held as mortgagee and as tenant are to be given.

Under Rule 6 any person claiming exemption under the provisions of
B Chapter III of the Act on the ground that any land owned or held by him or
possessed by him under a mortgage is a plantation, shall furnish to the Land
Board statement showing the following particulars namely:-

"(a) description of land (with details of survey number, if surveyed,
taluk and village), us.id by the person principally of the cultivation of
c the crops referred to in section 2 (44 );

(b) boundaries of the land;

(c) extent of the land:

(d) description of the crop or crops raised and extent of land on
D which such crops are raised;

(e) description and extent of the land (with details of survey number,
if surveyed, taluk and village) used by the person for any purpose
ancillary to the cultivating of the crops referred to in section 2 (44)
·-
or for the preparation of the same for the market;
E
(f) purpose for which the land referred to in item (e) is used; and

(g) description and extent of agricultural lands (with details of survey
numbers, if surveyed taluk and village) interspersed within the
boundaries of the area cultivated by the person with the crops referred
F to in section 2(44) and the extent of such lands which the person
considers necessary for the protection and efficient management of
such cultivation.

Taluk Land Board in its order dated July 26, 1980, made after the
G remand, found that out of 924.01 acres claimed by the appellant as fuel
clearing area for firewood for tea manufacture, an area of 421.88 acres
contained Cardamom plantation which had been planted prior to 1964. Taluk
Land Board was of the view that the remaining 302.13 acres out of 924.01
acres should also be exempted as it was satisfied that the area earlier claimed
was interspersed with cardamom plantation. But because it was first claimed
H as fuel clearing area, the interspersed area could not be taken over. It, thus,
HOPE PLANTATION LTD. v. TALUK LAND BOARD, PEERMADE [D.P. WADHWA, J.]527

exempted whole of924.0l acres holding that it could not be treated as surplus A
land. There have been Eucalyptus trees growing in whole of this area.
On the question of claim of the appellant regarding 136.17 acres as
'rested tea area', reference was made to the observation of the Supreme
Court where this Court said that if plucking was carried on in the said land,
it would be included within the plantation. Taluk Land Board held that in B
view of the affidavit dated1 February 5, 1980 filed by the appellant before it
and on its local inspection there were tree plants more than 60 years old in
the area of 136.17 acres and to that effect there was also a certificate of
United Planters' Association of Southern India (UPASI). Taluk Land Board,
therefore, exempted this area of 136.17 acres under 'rested tea' as part of the
plantation. Of these two points, i.e., fuel clearing area of 924.0 I acres and C
rested tea area of 136.17 acres, decision of the Taluk Land Board was by
majority with the Chairman who is the official member of the Board dissenting
on the ground that these questions could not be re-opened by the Taluk Land
Board after the decision of the Supreme Court dated May 2, 1979. On the
other two heads, namely, the area of202.55 acres under roads and buildings D
and other area of 263 .63 acres as agricultural lands interspersed with other
plantation crops as claimed by the appellant, the decision of the Taluk Land
Board was unanimous. High Court, in the revision filed by the State of
Kerala, agreed with the Taluk Land Board that it could not go into the
question of 'fuel area' and 'rested tea area' after the decision of the Supreme
Court. Appellant was held entitled to 200 acres of land only as fuel area. E
High Court upheld the decision of the Taluk Land Board on the claim of the
appellant for 202.55 acres of land under Building sites and roads. As regards
263.80 acres of land (claimed by the appellant as interspersed with cardamom)
High Court, however, remanded the matter to the Tribunal to decide the
question afresh. High Court upheld the contention of the State Government F
that in the return earlier filed by the appellant it had not claimed any land
under Cardamom plantation and as such exempt from vesting and that appellant
was not entitled to get exemption on any ground other than that shown in the
statement. This Order of the High Court dated November 6, 1984 has now
been challenged before us by the appellant.
G
The questions which arise for consideration are with respect to the
claims of the appellant for exemption under the following heads :
I. 136.17 acres as rested tea area (disallowed by the High Court);
2. out of 924.01 acres (earlier claimed as fuel area) 421.88 acres
as Cardamom plantation and 302.13 acres as other agricultural H
528 SUPREME COURT REPORTS (1998] SUPP. 2 S.C.R.

A land interspersed with other plantation crops (disallowed by the
High Court); and
3. 263.63 acres as other agricultural lands interspersed with
cardamom crops (remanded by the High Court).

B During the course of hearing, this Court on July 15, 1985 passed the
following order:
"Without prejudice to the rights and contentions of the parties,, we
direct that the Cardamom Board established under Section 4 of the
Cardamom Act, 1965, will appoint one of its Senior Expert officers
to inspect the area of 924 acres said to be cardamom plantation who,
c after inspection, will submit a report to this Court on the question of
existence extent of area and age of the cardamom plants in that area
(since it is stated before us by the counsel for the petitioners that
cardamom plants could be of the age varying between 20 to 40 years).
We also direct that the said officer will take the assistance and help
D of an appropriate revenue officer to be appointed by the Collector of
Iddikki in the matter of inspection and submission of report. The
inspection is to be undertaken after notice to both sides, whose
representatives will be at liberty to remain present at the inspection.
The report should be submitted to this Court within four months from
today. Such inspection and report will initially be at the cost and
E expenses of the Petitioners.

Matter to be placed on ' Board after the receipt of the Report."

Cardamom Board submitted its report accepting the claim of the
appellant as to the existence of the Cardamom plantation prior to 1964 in the
F area of 421.88 acres. State Government, however, filed objections to the
report stating that it could not be valid under the circumstances.

Mr. Salve, learned counsel for the appellant, made following
submissions:-
G 1. Statement/return, which was filed in Form-I. was without
prejudice and this fact find mention in the statement though it
was also mentioned that the appellant was engaged exclusively
in producing, manufacturing and marketing tea and all the lands
held by the appellant was for that purpose. The statement showed
as to how exemption was being claimed for the lands under
H Section 81 of the Act.
HOPE PLANTATION LTD. v. TALUK LAND BOARD, PEERMADE [D.P. WADHWA, J.]529

2. At the time when statement was filed, position of law in relation A
to interpretation of material provisions in the Act was not very
clear. There was an order of the State Land Board (with
supervisory powers over Taluk Land Boards) dated 29.3.1974
granting exemption to fuel areas as lands used for ancillary
purposes to the extent of 16,899 acres for a tea area of 23,239
acres under the Kanan Devan hills (Resumption of Lands) Act. B
The ratio of fuel area worked out to 2:3. On that basis the chunk
of land was claimed by appellant as fuel area, when as a matter
of fact, appellant wrote a letter dated 18.10.1974 to Special
Tehsildar, (Taluq Officer) Peermade, pointing out that the fuel
areas of the appellant was used for the purpose ancillary to c
cultivation and sought to justify the entire extent of 924 acres
claimed to be bona fide use as fuel areas.
3. In that very letter which the appellant wrote on 18.10.1974 it
was stated that "the lands interspersed within the tea efficient
management of the. plantation and for the preservation of the D
same. Regarding the last para of your letter, there has been no
conversion of any land into plantation since 1.4.1964. However,
we have planted up cardamom in some of our fuel lands. The
lands so planted with cardamom are now exempt as cardamom
plantation and also as land ancillary to plantation coming within
the definition of plantations." In the affidavit dated May 31, E
1976 filed by the appellant before the Taluk Land Board, it was
mentioned that there were agricultural lands within the boundaries
of the tea plantations which were required for the protection and
efficient management of plantation. In that, there were also fuel
plantations interspersed within the tea plantations. F
4. Under Section 2(44) of the Act, agricultural lands interspersed
within the boundaries of the area cultivated with plantation crops,
not exceeding such extent as may be determined by the Land
Board as necessary for the protection and efficient management
of such cultivation was treated as plantation for exemption from
G
the ceiling area. At the material time when the Taluk Land
Board made otder dated June 6, 1976, it was not competent to
examine the claim regarding land interspersed with plantation
crops. It was on that account the question had been remanded
to State Land Board for determination. But after the Act was
amended by Amending Act 27 of 1979 w.e.f. 7.7.1979 Taluk H
530 SUPREME COURT REPORTS [1998] SUPP. 2 S.C.R.

A Land Board was also empowered to examine the claim in
question. Taluk Land Board, therefore, could rightly go into this
question all over again irrespective of the earlier proceedings
which culminated up to Supreme Court (CA No. 227178).
5. The proposition of Jaw laid down that fuel wood supply to the
B employees cannot be said to be for ancillary purpose, is no
longer good law in the light of the decision of the three learned
Judges of this Court in Pioneer Rubber Plantation v. State of
Kera/a and Anr., [1992] 4 SCC 175. Although that decision is
under Kerala Private Forest (Vesting and Assignment) Act,
construing a similar provision, this Court has taken the view
c that land used for fuel area is used for ancillary purpose. This
Court has observed thus:
"we agree with the learned Judges of the larger Bench of the Kerala
High Court that it would not be in accordance with the legislative
intent to read the provisions in question without regard to the purpose
D for which exemption is specially provided for lands principally used
for the cultivation of certain cash-crops or for the preparation of such
crops for the market. Bearing in mind that, in granting the exemption,
it was the legislative intent not to disregard the legitimate interests of
the estates, namely, their efficient functioning as an industry engaged
E in the production of cash-crops and the welfare of the concerned
employees, it is necessary that a liberal and purposive construction
should be put on the section."

6. As to what is rested area' reference may be made to (I) Tea
Encyclopedia of the Indian Tea Association, Scientific
F Department, (2) Tea Planting in Ceylon by E.C. Elliot and F.J.
Whitehead and (3) Indian Tea by Claud Bald. Resting of tea is
part of tea plantation. Certain area in tea plantation are rested
temporarily with the ultimate object of increasing the vigour
and productive capacity of tne tea bush. As to what is resting
tea area was not properly projected before this Court in the
G earlier appeal (CA 227178).
7. Taluk Land Board, while it was seized of the matter on remand
could reopen the whole case, when it was pleaded before it in
the affidavit dated 18.2.1980 that 421.88 acres of land contained
Cardamom plantation coming within the definition of 'phmtation'
H by virtue of Section 81 (I)( e) of the Act etc. Prindple of
HOPE PLANTATION LTD. v. TALUKf,.ANDBOARD, PEERMADE [D.P. WADHWA, l.1531

resjudicata cannot be made applicable in these proceedings as A
it is a case of expropriatory law. Civil law principles of res
judicata cannot be invoked unless Taluk Land Board passes a
final order and if in the course of proceedings whether during
remand or otherwise, it is found that the area is exempt under
any provision of law, any acquisition of that area would be
illegal and void. Proceedings terminate only when there is order B
under Section 85 of the Act which order had yet not been passed.
There can also be no plea of issue estoppel raised by the
respondents in the circumstances of the case. Reference in this
connection was made to a decision of English House of Lords
in Arnold and Ors. v. National Westminster Bank Pie., (1991) C
2 AC 93.
8. Report has since been filed by the Cardamom Board. A perusal
of the report shows that the Cardamom Board has accepted the
majority view of the Taluk Land Board as well as the stand of
the appellant that Cardamom plantation existed prior to 1964 D
and, therefore, the Cardamom area was exempted from the
provision of the Act.
9. Taluk Land Board has power under sub-section (9A) of Section
85 to review its own decision. This could be done on the ground
that earlier decision had been made "due to the failure to produce E
relevant data or other particular relating to ownership or
possession before it or by collision or fraud or any suppression
of material fact". In the present case, there was failure on the
part of the appellant to produce relevant data regarding fuel
area, rested tea and Cardamom plantation.
F
Mr. P Krishnamurthy, learned senior counsel for the respondent, in
reply, made the following submissions:
(1) After the decision of the Supreme Court in appeal by the Taluk
Land Board (CA 227 /78), its jurisdiction was barred on two
items, namely fuel area and rested tea area. Reference was made G
to three decisions of the Supreme Court on application of the
principles of res judicata, namely, Devi/al Modi, Proprietor,
Mis. Daluram Pannalal Modi v. Sales Tax Officers, Rat/am and
Ors., [1965] 1 SCR 686; Forward Construction Company and
Ors. v. Prabhat Mandai (Regd.) Andheri and Ors., [1986] 1
SCC 100 and Y.B. Patil and Ors. v. Y.L. Patil, AIR (1977) SC H
532 SUPREME COURT REPORTS [1998] SUPP. 2 S.C.R.

A 392.

2. In the statement filed in Fonn I, it was nowhere mentioned that
there was any Cardamom plantation. If there is Cardamom
cultivation, it has to come within the meaning of the word
'plantation' and it is not required to refer to the inclusive
B definition in clause (c) to apply. When the matter was taken up
second time by the Taluk Land Board, no correction in the
original return was sought but only an affidavit was filed. There
was then local inspection and second order of Taluk Land Board,
was by majority with the Chainnan dissenting. Lot could be
said on the conduct of the Taluk Land Board making local
c inspection without there being any written application and then
surveying the whole of the area within a couple of hours on the
same day. Reference was made to the evidence and the nature
of proceedings earlier held by the Taluk Land Board, Case of
the appellant that Cardamom plantation was before 1.4.1964
D was incorrect. Letter of the appellant dated 18.10.1974 rather
shows that cultivation of Cardamom was after 1.4.1964. In the
affidavit dated 31.5.1976 of the appellant, it was stated that
main plantation was tea. Statement of the General Manager of
the appellant recorded by Taluk Land Board did not mention
any Cardamom plantation. Then again in the additional affidavit
E dated 22.6.1976 of the appellant, there is no mention of any
Cardamom cultivation. When revision was filed before the High
Court against the order of the Taluk Land Board, again there
was no mention of any cultivation of Cardamom. It was not
technically possible for the Cardamom Board to conclude that
F Cardamom plantation existed prior to 1964 and the report was
based on local inspection and queries and without any scientific
basis.

3. Taluk Land Board on remand could not examine the c:laim of
the appellant over and above 263 .83 acres as exempt on account
G of other agricultural lands interspersed.

In Devi/al Modi, Proprietor, Mis. Daluram Pannalal Modi v. Sales Tax
Officer Rat/am and Ors., [1965] I SCR 686, the question before this Court
was whether the principle of constructive res judicata could be invoked
against writ petition filed by the appellant under Article 226 of the Constitution.
H The appellant had been assessed to sales-tax for the year 1957-58 under
HOPE PLANTATION LTD. v. TALUK LAND BOARD, PEERMADE [D.P. WADHWA, J.)533

Madhya Bharat Sales Tax Act, 1950. He challenged the validity of the order A
of assessment by a writ petition which was dismissed by the High Court of
Madhya Pradesh. Appellant appeal by special leave to this Court was also
dismissed. At the hearing of the appeal before this Court, appellant sought to
raise two additional points, but he was not permitted to do so on the ground
that they had not been specified in the writ petition filed before the High B
Court and had not been raised at an early stage. On those points which were
not allowed to be raised, the appellant filed another writ petition in the High
Court challenging the validity of the same very assessment for the year 1957-
58. High Court considered the merits of the additional grounds urged by the
appellant but rejected them. Appellant again came to this Court. This Court
dismissed the appeal on the ground that principle of constructive res judicata C
was applicable in the circumstances and referred to its earlier decision in
Daryo and Ors. v. The State of UP. and Ors., [ 1962] 1 SCR 574 holding that
the general principle underlying the doctrine of res judicata i.e. ultimately
based on considerations of public policy. One important consideration of
public policy is that the decisions pronounced by courts of competent
jurisdiction should be final, unless they are modified or reversed by appellate D
authorities; and the other principle is that no one should be made to face the
same kind of litigation twice over, because such a process would be contrary
to considerations of fair play and justice.

In Forward Construction Co. and Ors. v. Prabhat Manda/ (Regd.) E
Andheri and Ors., [ 1986] 3 SCC I 00 one of the questions raised was whether
the writ petition out of which appeal had arisen in the Supreme Court was
barred by res judicata. High Court had negatived this plea for two reasons
: (I) that in the earlier writ petition the validity of the permission granted
under Rule 4(a)(i) of the Development Control rules was not in issue, and (2)
that the earlier writ petition filed by Shri Thakkar was not a bona fide one F
inasmuch as he was put up by some disgruntled builder, namely, Mis. Western
Builders. This Court said on the first reason; (which is relevant for our
purpose): "So far as the first reason is concerned, the High Court in our
opinion was not right in holding that the earlier judgment would not operate
as res judicata as one of the grounds taken in the present petition was G
conspicuous by its absence in the earlier petition. Explanation IV to Section
11 CPC provides that any matter which might and ought to have been made
ground of defence or attack in such former suit shall be deemed to have been
a matter directly and substantially in issue in such suit. An adjudication is
conclusive and final not only as to the actual matter determined but as to
every other matter which the parties might and ought to have litigated and H
534 SUPREME COURT REPORTS [1998] SUPP. 2 S.C.R.

A have had it decided as incidental to or essentially connected with the subject
matter of the litigation and every matter coming within the legitimate purview
of the original action both in respect of the matter of claim or defence. The
principle underlying Explanation IV is that where the parties have had an
opportunity of controverting a matter that should be taken to be the same
thing as if the matter had been actually controverted and decided. It is true
B that where a matter has been constructively in issue it cannot be said to have
been actually heard and decided. It could only be deemed to have been heard
and described. The first reason, therefore, has absolutely no force".

In Y.B. Patil and Ors. v. Y.L. Patil, AIR (1977) SC 392, this Court said
C that "it is well settled that principles of res judicata can be invoked not only
in separate subsequent proceedings, they also get attracted in subsequent
stage of the same proceedings. Once an order made in the course of a
proceeding becomes final, it would be binding at the subsequent stage of that
proceeding."

We may refer to two more decisions of the Supreme Court on the
D question of res judicata and estoppel.
In Smt. Isabella Johnson v. MA. Susai, AIR (1991) SC 993 this court
held that it is well settled that there can be no estoppel on a pure question
of law and the question of jurisdiction is a pure question of law. A court
which has no jurisdiction in law to try an eviction suit cannot be vested with
E jurisdiction by applying principles of res Judicata.

In Sunderabai wlo Devrao Deshpande and Anr. v. Devaji Shankar
Deshpande, AIR (1954) SC 82 under terms of an Award '.'-y tht: Arbitrator
which was made rule of the Court decree provided that rights of adoption
was lost to Gangabai from the very beginning and the adoption of Devaji was
F held to be invalid and it was declared that the adopted son Devaji was not
and could never become entitled to the property belonging to the family of
his grand father Devrao. With the object of maintaining peace and goodwill
in the family decree provided that Sunderabai widow of Devrao shall pay to
Devaji Rs. 8000 in lump sum and that decree for maintenance obtained by
G Gangabai against Sunderabai in another suit shall continue pennanently. It
may be noticed that Gangabai was the widow of pre-deceased son of Devrao.
The Award which took the shape of decree, it would appear, was accepted
by the parties and acted upon. Later on relying on the decision of the Privy
Council in Anant v. Shankar, AIR (1943) PC 196 Gangabai again adopted
Devaji. Sunderabai also adopted her daughter's son Jivaji. All this led to
H Devaji filing another suit now claiming his right as the validly adopted son
HOPE PLANTATION LTD. v. TALUK LAND BOARD, PEERMADE [D.P. WADHWA, J.)53 5

of Gangabai. This Court dismissed the suit filed by Devaji in view of principle A
of estoppel. The Court said that bar of res judicata, however, may not in
terms be applicable as the decree passed on the basis of the Award was in
terms of the compromise and that the terms of Section I 1 of the Code could
not be strictly applicable to the same but the underlying principles of estoppel
would still apply.
B
During the course of arguments, reference was made to a decision of
this Court in Malankara Rubber and Produce Co. and Ors. etc. etc. v. State
of Kera/a and Ors. etc. etc., [1973] 1 SCR 399, a case under the Kerala Land
Reformas Act, I 964 as amended in I 969 and I 97 I, where this Court held
that lands planted with eucalyptus or teak are agricultural lands. On the
interpretation of sub-section (9) and (9A) of Section 85 of the Act, we were C
referred to two decisions of the Kerala High Court. 1n Chathunny v. Taluk
Land Board, (1981) KLT 74 a Division Bench of the Kerala High Court held
that Section 85(9) of the Act enables the Taluk Land Board to set aside its
order under sub-section (5) or sub-section (7) of Section 85 and proceed
afresh under that sub-section on satisfaction of any one of the matters D
enumerated in clauses (a) to (c) of sub-section (9). In this case, order of the
Taluk Land Board under Section 85(5) or Section 85(7) had been subject
matter of revision to the High Court under Section I 03 of the Act. These
revisions had been heard and disposed of by the High Court. The question
was whether Taluk Land Board could exercise power under Section 85(9) in
such cases. High Court said that sub-section (9) of Section 85 contemplated E
that exercise of powers by the Taluk Land Board could be exercised to set
aside its "order" and once the order of the Taluk Land Board had merged
with the order of the High Court passed in revision, Taluk Land Board could
not exercise its powers under sub-section (9) of Section 85. It appeared that
because of this statement of law by the High Court, Act was amended by Act F
16 of 1989 and sub-section (9A) of Section 85 was incorporated. Thereafter,
a single Judge of the High Court in Thampi Gounder v. State of Kera/a,
(1994) I KL T 89 held that powers under sub-section (9A) of_ Section 85
could be exercised notwithstanding any revision of the High Court under
Section 103 arising out of the final orders passed by the Taluk Land Board
under sub-sections (5), (7) and (9) of Section 85 and that this would be so G
even where the order of the Taluk Land Board merged with the order of the
High Court.
Form I under which statements/return is to be filed requires complete
details of the plantation as meant in Section 2(44) of the Act. It is to be
accompanied with various annexures. The appellant never claimed exemption H
536 SUPREME COURT REPORTS [1998) SUPP. 2 S.C.R.

A on the ground of Cardamom plantation existing prior to 1964. It never asked
for amendment of the return/statement at any stage of the proceedings. It
sought exemption on the ground of the land under the heading 'fuel area'.
Once the matter had been determined by the Supreme Court in appeal, there
was no scope for any review by Taluk Land Board to hold that there was
Cardamom Plantation existing prior to 1964 in that very area. Mr. P
B Krishnamurthy is right in his submissions that there was no foundation eve1
made for review of that part of the land falling under the 'fuel area' was, in
fact, cardamom plantation. There was no scope for invoking the provisions
of sub-section (9) and/or (9-A) of Section 85 of the Act. The two decisions
of the Kerala High Court are, therefore, not quite relevant for our purposes.
c High Court by its judgment dated March 15, 1977 had set aside the
order of Taluk Land Board allowing exemption of JOO acres when appellant
had claimed 263 .83 acres as agricultural land interspersed within the boundaries
of the area cultivated by the appellant. The extent of this area was to be
determined by the Land Board as Taluk Land Board at the relevant time had
D no jurisdiction to so determine. The appellant had specifically claimed 263.83
acres of such land under the head "other agricultural land interspersed". After
the remand Taluk Land Board was also vested with power w.e.f. 7.7.1979 to
determine the extent of land under clause (c) of Section 2(44) of the Act.
That would not, however, mean that Taluk Land Board could now determine
that area under this head exceeded 263.83 acres. To the extent that Tulak
E Land Board by its order dated July 26, 1980 upheld the claim of the appellant
to 263.83 acres as "agricultural land interspersed within the boundaries of the
area cultivated with plantation crops" cannot be failed. Though under the
heads 'fuel area' and 'rested tea area' there was difference of opinion among
the Chairman and other members of the Tulak Land Board there was unanimity
p between them on the question of area of 263 .83 acres falling under the head ·
'other agricultural land interspersed'. It cannot be said that Taluk Land Board,
while determining this area, did not take into consideration relevant factors
as mentioned in clause (c) of Section 2(44) of the Act. We do not think it was
necessary for the High Court to lay down any further guidelines than what
are given in the provision and for that purpose to remand the matter again to
G the Taluk Land Board. We would, therefore, set aside the order of the High
Court to that extent.
It is settled law that principles of estoppel and res judicata are based
on public policy and justice. Doctrine of res judicata is often treated as a
branch of the law of estoppel though these two doctrines differ in some
H essential particulars. Rule of res judicata prevents the parties to a judicial
HOPE PLANTATION LTD. v. TALUK LAND BOARD, PEERMADE [D.P. WADHWA, J.)537

detennination from litigating the same question over again even though the A
detennination may even be demonstratedly wrong. When the proceedings
have attained finality, parties are bound by the judgment and are estopped
from questioning it. They cannot litigate again on the same cause of action
nor can they litigate any issue which was necessary for decision in the earlier
litigation. These two aspects are 'cause of action estoppel' and 'issue estoppel'. B
These two tenns are of common law origin. Again once an issue has been
finally detennined, parties cannot subsequently in the same suit advance
arguments or adduce further evidence directed to showing that issue was
wrongly detennined. Their only remedy is to approach the higher forum if
available. The detennination of the issue between the parties gives rise to, as
noted above, an issue estoppel. It operates in any subsequent proceedings in C
the same suit in which the issue had been detennined. It also operates in
subsequent suits between the same parties in which the same issue arises.
Section 11 of the Code of Civil Procedure contains provisions of res judicata
but these are not exhaustive of the general doctrine of res judicata. Legal
principles of estoppel and res judicata are equally applicable in proceedings
before administrative authorities as they are based on public policy and justice. D
As to what is issue estoppel was considered by this Court in Gopal
Prasad Sinha v. State of Bihar, [1970] 2 SCC 905. This case arose out of
criminal prosecution, the accused was tried on a charge under Section 409
IPC for having committing criminal breach of trust for Rs. 27,800 during the
period between January 31, 1960 to November 30, 1960, when he was acting E
as Cashier in the Public Works Department of the State. The accused contended
that he had been put up on a trial in a previous case under Section 409, IPC
for having committed criminal breach of trust with resp1,ct to certain amounts
during the period December 8, 1960 to August 17, 1961 and in that case the
High Court had acquitted him holding that he was not in charge of the cash. F
The point of issue-estoppel was, thus, raised by the accused. The trial Court
held that the aforesaid finding of the High Court could not operate as a res
judicata. High Court affirmed the decision of the trial Court. In this Court,
it was contended that substantially it was the same issue that was tried during
the earlier trial and if the accused was not .the Cashier from December 8,
1960 to August 11, 1961, he could not be held to be Cashier from January G
31, 1960 to November 11, 1960. The accused contended that the defence in
both the cases was identical and the evidence also almost the same. This
-;-i
•!
Court observed as under:

!l
I
I "In our opinion, the High Court came to the correct conclusion. The
basic principle underlying the rule of issue estoppel is that the same H
538 SUPREME COURT REPORTS [1998] SUPP. 2 S.C.R.

A issue of fact and Jaw must have been determined in the previous
litigation. The question then arises : Was it the same issue of fact
which was determined in the earlier case? A person may be acting as
a cashier at one period and may not be acting as a cashier at another
period, especially as in this case it was found that the appellant had
never been appointed as a cashier. He was a temporary senior accounts
B clerk who was alleged to be doing the work of a cashier. If there is
any likelihood of facts of conditions changing during the two periods
which are under consideration then it is difficult to say that the
prosecution would be bound by the finding in a previous trial on a
similar issue of fact. It seems to us that the later finding must
c necessarily be in contradiction of the previous determination. There
can be no such contradiction if the periods are different and the facts
relating to the carrying on of the duties of a cashier are different".

Mr. salve strongly relied on the decision of the House of Lords in
Arnold and Ors. v. National Westminster Bank Pie., (1991) 2 AC 93 to
D submit that the appellant could again raise the plea of 'rested tea area',
'Cardamom plantation' and 'agricultural land interspersed' for adjudication
before the Taluk Land Board when it was seized of the matter on remand. He
said though issue estoppel constituted a bar to relitigation between the same
parties of a decided point, appellants were not estopped to seek redetermination
E of the issue in the facts and circumstances of the case. He said the first return/
statement was filed without prejudice and though exemption was not claimed
specifically as Cardamom plantation, the fact that Cardamom was growing
was within the knowledge of the authorities. It was, in fact, brought on
record in an earlier Jetter of 1974 by the appellant. Then, there was subsequent
change of Jaw. Now, this Court by judgment in Pioneer Rubber plantation
F v. State of Kera/a and Anr., [1992] 4 SCC 175 delivered by three Hon'ble
Judges held that supply of fuel wood to the employees cannot be said to be
purpose unconnected to the cultivation of the plantation. Further as to what
is rested tea area was not correctly brought out and there is voluminous
authorities to show that keeping certain area of the plantation as rested tea
G area is in the larger interest of the plantation itself and a part of the plantation
activities. Then, there was a judgment of this Court in Ma/ankara Rubber
and Produce Co. and Ors. etc, etc. v. State of kera/a and Ors. etc. etc.,
[1973] 1 SCR 399 holding that lands planted with Eucalyptus or teak trees
are agricultural lands. Mr. Salve said all these factors will take the case out
of the bar of issue estoppel. He again pointed that when the return/statement
H was filed, position of law was not clear as the Act had then rece:ntly come
HOPE PLANTATION LTD. v. TALUKLANDBOARD, PEERMADE [D.P. WADHWA,J.]539

into force. A
In Arnalds and Ors. v. National Westminster Bank Pie., (1991) 2 AC
93 House of Lords noticed the distinction between cause of action estoppel
and issue estoppel. Cause of action estoppel arises where the cause of action
in the later proceedings, is identical to that in the earlier proceedings, the
latter having been between the same parties or their privies and having involved B
the same subject matter. In such a case the bar is absolute in relation to all
points decided unless fraud or collusion is alleged, such as to justify setting
aside the earlier judgment. The discovery of new factual matter which could
not have been found out by reasonable diligence for use in the earlier
proceedings does not according to the law of England, prevent the latter to C
be re-opened. Issue estoppel may arise where a particular issue forming a
necessary ingredient in a cause of action has been litigated and decided and
in subsequent proceedings between the same parties involving a different
cause of action to which the same issue is relevant one of the parties seeks
to re-open that issue. Here also bar is complete to re-litigation but its operation
can be thwarted under certain circumstances. The House then finally observed: D
"But there is room for the view that the underlying principles
upon which estoppel is based, public policy and justice, have greater
force in cause of action estoppel, the subject matter of the two
proceedings being identical, than they do in issue estoppel, where the
subject matter is different. Once it is accepted that different E
considerations apply to issue estoppel, it is hard to perceive any logical
distinction between a point which was previously raised and decided
and one which might have been but was not. Given that the further
material which would have put an entirely different complexion on
the point was at the earlier stage unknown to the party and could not
by reasonable diligence have been disco\<ered by him, it is hard to see F
why there should be a different result according to whether he decided
not to take the point, thinking it hopeless, or argue it faintly without
any real hope of success. In my opinion your Lordships should affirm
it to be the law that there may be an exception to issue estoppel in
the special circumstances that there has become available to a party G
further material relevant to the correct determination of a point
involved in the earlier proceedings, whether or not that point was
specifically raised and decided, being material which could not by
reasonable diligence have been adduced in those proceedings. One of
the purposes of estoppel being to work justice between the parties, it
is open to courts to recognise that in special circumstances inflexible H
540 SUPREME COURT REPORTS (1998] SUPP. 2 S.C.R.

A application of it may have the opposite result... .. "
Next question for consideration is whether the further relevant
material which a party may be permitted to bring forward in the later
proceedings is confined to matters of fact, or whether what may not
entirely inappositely be described as a change in the law may result
B in, or be an element in special circumstances enabling an issue to be
re-opened.
Your Lordships should appropriately, in my opinion, regard the
matter as entire and approach it from the point of view of principle.
If a Judge has made a mistake, perhaps a very egregious mistake, as
C is said of Walton J.' s judgment here, and a later judgment of a higher
court overrules his decision in another case, do considerati0ns of
justice require that the party who suffered from the mistake should be
shut out, when the same issue arises in later proceedings with a
different subject matter, from reopening that issue?
D I am satisfied, in agreement with both courts below, 1hat the
instant case presents special circumstances such as to require the
plaintiffs to be permitted to reopen the question of construction decided
against them by Walton J., that being a decision which I regard as
plainly wrong."

E Mr. Salve's assertions based on the aforesaid decision of the House of
Lords may be valid to an extent but then in view of the principles of law laid
by this Court on the application of res judicata and estoppel and considering
the provisions of Section 11 of the Code we do not think there is any scope
to incorporate the exception to the rule of issue estoppel as given in Arnold
F and Ors. v. National Westminster Bank Pie., (1991) 2 AC 93.

Law on res judicata and estoppel is well understood in India and there
are ample authoritative pronouncements by various courts on these subjects.
As noted above the plea of res judicata, though technical, is based on public
policy in order to put an end to litigation. It is, however, a different if an
G issue which had been decided in earlier litigation again arises for determination
between the same parties in a suit based on a fresh cause of action or where
there is continuous cause of action. The parties then may not be bound by the
determination made earlier if in the meanwhile law has changed or has been
interpreted differently by higher forum. But that situation does not exist here.
Principles of constructive res judicata apply with full force. It is the subsequent
H stage of the same proceedings. If we refer to Order XL VII of the Code
HOPE PLANTATION LTD. v. TALUK LAND BOARD, PEERMADE [D.P. WADHWA, J.]54 J

(explanation to Rule I) review is not pennissible on the ground "that the A
decision on a question of law on which the judgment of the Court is based
has been reversed or modified by the subsequent decision of a superior Court
in any other case, shall not be a ground for the review of such judgment".

Since the appellant never claimed exemption outside the ceiling area on
the ground of cardamom plantation the question was never gone into in the B
earlier proceedings of this Court. This point, therefore, could not be agitated
before the Taluk Land Board dealing with the matter on remand as finality
attached to the areas under the fuel area and rested tea area for which exemption
was not or fully granted. It is, therefore, unnecessary for us to go into the
question if cardamom plantation existed at the relevant time. We, therefore, C
uphold the judgment of the High Court on the extent of 'fuel area' and
'rested tea area' as detennined finally by this Court in CA No. 227178 and
would dismiss the appeal limited to this extent.

Though we have upheld the order of the High Court mainly on the
grounds of res judicata and estoppel, submission of the appellant commends D
to us that they be given opportunity to approach the State Government to
seek exemption under provisions of Sub-section 3 of Section 81 of the Act.
This is particularly so as a three. Judge Bench of this Court has held that
supply of fuel wood to employees is for the purpose connected with the
plantation, which is a later decision of the two Judge Bench decision of this E
Court. Further that rested tea area is a part of tea plantation was not properly
projected before this Court as has been rightly contended by Mr. Salve. It is
a matter of experience and on reference to authoritative text books if rested
tea areas are part of the plantation.

We allow the appellant to approach the State government to sei;k F
exemption under Sub-section 3 of Section 81 of the Act. For this purpose we
grant six weeks time to the appellant to apply to the State Government. The
State Government shall take decision on such application in accordance with
law explained above. Till then the stay granted by this Court by order dated
December 6, 1984 shall continue to operate.
G
With these observations the appeal stands partly allowed. There shall
be no order as to costs.

R.K.S. Appeal partly allowed.