MADHAV HARI JOSHIversusDIVISIONAL MANAGER, LIFE INSURANCE CORPORATION OF INDIA & ANR.
- Citation
- 2019 INSC 9
- Decided
- 4 January 2019
- Disposal
- Appeal(s) allowed
Holding
The Supreme Court held that LIC’s wrongful retention of the premium for five years constituted deficiency of service and that mere interest was insufficient, thereby directing an additional compensation of Rs 2,00,000.
Summary
Madhav Hari Joshi paid Rs 1,75,000 as premium for LIC's Jeevan Aastha Plan but the insurer neither issued the policy nor refunded the amount for nearly five years. Joshi filed a consumer complaint seeking a refund with interest and compensation of Rs 5,00,000. The District Forum ordered a refund and Rs 4,25,000 compensation; the State Commission affirmed, but the National Consumer Disputes Redressal Commission upheld only the refund with 12% interest, deleting the compensation. Joshi appealed to the Supreme Court, arguing that the insurer's omission constituted a deficiency of service and that mere interest was inadequate redress. The Court held that LIC’s retention of the money for five years clearly amounted to deficiency of service and that the appellant was entitled to additional compensation for loss of use of his funds. Accordingly, the Court modified the NCDRC order, directing LIC to pay an extra Rs 2,00,000 in addition to the refund and interest, and disposed of the appeals without costs.
Issues considered
- Whether LIC's failure to issue the policy or refund the premium amounts to deficiency of service under the Consumer Protection Act.
- Whether the compensation awarded by the District Forum should be upheld despite its deletion by the National Consumer Disputes Redressal Commission.
- Whether an additional amount beyond interest is warranted to compensate the consumer for loss of use of his money.
Legislation cited
Subjects
Judgment
208 [2019]REPORTS
SUPREME COURT 1 S.C.R. 208 [2019] 1 S.C.R.
A MADHAV HARI JOSHI
v.
DIVISIONAL MANAGER,
LIFE INSURANCE CORPORATION OF INDIA & ANR.
(Civil Appeal Nos. 49-50 of 2019)
B
JANUARY 04, 2019
[DR. D. Y. CHANDRACHUD AND HEMANT GUPTA, JJ.]
Consumer Protection:
Deficiency of service – Appellant-consumer submitted a
C proposal to Life Insurance Corporation (LIC) under one of its plans
– Alongwith proposal, paid Rs.1,75,000/- –The policy not issued
nor money refunded – Complaint seeking refund of money with
interest and also compensation of Rs.5,00,000/- – District Forum
directed refund of the amount and in addition compensation of
Rs.4,25,000/- – State Commission confirmed the order – National
D Commission maintained the order of refund alongwith 12% interest,
but refused the compensation – Review petition dismissed – On
appeal, held: In the facts of case, deficiency of service was clearly
establlished – LIC held the money of the consumer wrongfully for
five years – Its omission to refund has deprieved the consumer of
E the use of his money – Hence, mere direction of interest will not
provide sufficient redress – To meet the ends of justice, in addition
to the amount directed to be paid by National Commission, payment
of further amount of Rs.2,00,000/- is directed towards all the claims.
Disposing of the appeals, the Court
F HELD: 1. It appears from the letter of the Branch Manager
of LIC (dated 15th April, 2009) that he had already received a
decision to complete the proposal with extra premium. Admittedly,
even the extra premium of Rs.10,000/- was paid by the appellant
as part of his payment of Rs.1,75,000/-. The remaining formalities
that were required to be observed were to be fulfilled by the
G Development Officer and not by the appellant. LIC retained the
moneys of the appellant for a period of nearly five years. No
effort was made to refund the moneys. In this view of the matter,
a deficiency of service was clearly established. [Paras 18, 19][213-
D-E]
H
208
MADHAV HARI JOSHI v. DIVISIONAL MANAGER, LIFE 209
INSURANCE CORPORATION OF INDIA
2. The plan in question was not exclusively an insurance A
based product. By being linked to the equity market, it had an
investment element. LIC held on to the moneys of the appellant
wrongfully for five years. Its omission to refund has deprived
the appellant of the use of his moneys. Hence, a mere direction
for the payment of interest on the principal sum will not provide
B
sufficient redress. The ends of justice would be met, if the
direction, which has been issued by the National Commission, is
modified and an additional amount of Rs.2,00,000/- is directed to
be paid towards all the claims, demands and outstandings,
including litigation expenses, in addition to what has been ordered
by National Commission. [Paras 20, 21][213-G-H; 214-A-B, D] C
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 49-50
of 2019.
From the Judgment and Order dated 26.02.2015 of the National
Consumer Disputes Redressal Commission, New Delhi in Revision
Petition No. 4493 of 2014 and order dated 29.04.2015 in Review Petition D
No. 80 of 2015 in Revision Petition No. 4493 of 2014.
Subodh S. Patil, Adv. for the Appellant.
R. Chandrachud, Karan Sharma, Advs. for the Respondents.
The following Judgment of the Court was delivered: E
JUDGMENT
1. Delay condoned.
2. Leave granted.
3. The present appeals arise from the decisions of the National F
Consumer Disputes Redressal Commission (“the National Commission”)
dated 26 February, 20151 and 29 April, 20152.
4. The appellant submitted a proposal to the Life Insurance
Corporation (LIC) under its Jeevan Aastha Plan on 31 January, 2009.
On 15 April, 2009, the Branch Officer of LIC responded to the proposal G
in the following terms:
“We are in receipt of your proposal for plan Jeevan Astha on
31.1.2009.
1
Revision Petition No.4493 of 2014
2
Review Petition No.80 of 2015 H
210 SUPREME COURT REPORTS [2019] 1 S.C.R.
A Alongwith special reports the case was referred to our divisional
office for decision. We have received the decision to complete
the proposal with class V health extra.
Shree Jeevan Astha Plan was a close ended paln up to 21.2.2009.
We can offer you another plan. Kindly inform us the plan and
B accordingly so that we can proceed further in completion of your
proposal.”
5. It is not in dispute that together with the proposal, the appellant
had paid an amount of Rs.1,75,000/- (Rupees one lakh seventy five
thousand only) inclusive of an amount of Rs.10,000/- towards additional
C risk premium.
6. The Jeevan Aastha Plan was open for subscription for 45 days
between 8 December, 2008 and 22 January, 2009.
7. Upon receipt of the above letter dated 15 April, 2009, the
appellant addressed a communication to the Chairman of LIC recording
D his grievance that he had already complied with all formalities, including
the payment of additional premium and had undergone a medical test.
8. In response to his representation, the appellant was issued a
communication dated 23 July, 2009 by the Manager (Admn.), LIC. The
letter reads thus:
E
“We are in receipt of your letter dt.27.06.2009 originally addressed
to our Chairman. In this regard we would like to inform you that
the proposal was accepted by our higher office on 02.03.2009
subject to the following requirements:
1) Consent for Cl. V extra
F
2) Reason for nomination if favour of Sister-in-law
3) Moral Hazard Report by Development Officer
The above decision was informed to the agent (Sri S.S. Joshi)
who has introduced the proposal’s to convey the same to you in
G time. It is learnt from the agent that you have not given your
consent for extra premium.”
9. Eventually, as it transpires, neither was a policy issued to the
appellant nor were his moneys refunded. That led him to institute a
complaint before the District Consumer Disputes Redressal Forum,
H
MADHAV HARI JOSHI v. DIVISIONAL MANAGER, LIFE 211
INSURANCE CORPORATION OF INDIA
Thane (“the District Forum”) in 2012. By his complaint, as amended, A
the appellant sought a refund of his investment of Rs.1,75,000/- together
with interest and compensation in the amount of Rs.5,00,000/-.
10. The District Forum allowed the complaint by directing LIC to
refund the amount of Rs.1,75,000/-. In addition, compensation in the
amount of Rs.4,25,000/- was granted on the ground that the appellant B
had been deprived of his moneys for a period of five years.
11. The State Consumer Disputes Redressal Commission, Mumbai
(“the State Commission”) confirmed the order of the District Forum.
12. LIC instituted revisional proceedings before the National
Commission. The direction for the payment of Rs.1,75,000/- has been C
maintained by the National Commission. The appellant was also granted
interest at the rate of 12% per annum from the date on which the principal
amount was paid to LIC till the date on which it was deposited with the
District Forum. However, the direction for the payment of compensation
has been deleted. D
13. A review petition instituted against the order in revision was
dismissed.
14. Learned counsel appearing on behalf the appellant submits
that by the order of the National Commission, all findings of fact recorded
in favour of the appellant were confirmed. However, the direction for E
the payment of compensation has been deleted without any reason or
justification.
15. Learned counsel further submitted that both in the letter dated
15 April, 2009 as well as in the subsequent letter dated 23 July, 2009, the
appellant was called upon to pay an extra premium which as a matter of F
fact, had already been paid. The remaining two conditions in regard to
the nomination which was made in favour of a relative and for a ‘moral
hazard report’ by the Development Officer were required to be fulfilled
by LIC. Hence, the appellant completed all necessary formalities. Once
the proposal was accepted, it has been submitted that there was no
G
justification to deny the issuance of a policy. Moreover, it was submitted
that the policy was an equity-based plan. As a result of the retention of
the moneys by LIC for nearly five years, the appellant lost the benefit of
an enhancement in the value of his investment in a booming equity market
and should be suitably compensated. Hence, it has been urged that the
refund ordered with 12% interest would not be a sufficient recompense. H
212 SUPREME COURT REPORTS [2019] 1 S.C.R.
A 16. On the other hand, learned counsel appearing on behalf of
LIC submitted that LIC had, by its letters, informed the appellant that
the plan stood closed on 21 February, 2009 and he could apply for an
alternative plan. The appellant having failed to do so, it has been urged
that there is no warrant for the grant of compensation and the order of
the National Commission does not call for interference.
B
17. From a reading of the impugned judgment of the National
Commission, it emerges that all findings of fact have, in fact, been
recorded in favour of the appellant. For convenience of reference, we
extract paragraphs 6, 7 and 8 from the impugned order hereafter:
C “6. On a perusal of the letters dated 15-04-2009 and 23-07-2009
issued by LIC we find that the proposal submitted by the
complainant was kept pending till he submitted (i) consent for
Clause V Express, (ii) the reasons for nomination in favour of
sister in law and (iii) moral hazard report from the development
officer was received. Thus, the petitioner found the complainant
D eligible for the Jeevan Asthan policy on his completing the aforesaid
requirements.
7. As regards extra premium amounting to Rs.10,000/-, it is an
admitted case that the complainant had paid Rs.1,75,000/- as against
the regular premium of Rs.1,65,000/-. In view of the aforesaid
E payment, the requirement to submit the consent to pay an additional
premium became redundant. As regards reasons for nominating
sister in law, a perusal of the relevant policy would show that if
the person nominated was a distant relative or not related to the
life to be assured, such cases were not to be considered and
F nomination in favour of a close relative was to be insisted upon.
If the proposer insisted for nomination in favour of a person not
related (included a distant relative) to him/her then a letter was to
be sent at his/her address to obtain consent for the desired
nomination and a special MHR is to be obtained at least from a
Development Officer regarding the genuineness of the nomination
G to ensure that no moral hazard was involved. In the case before
us it is obvious that the complainant was insisting upon nomination
in favour of his sister in law. The LIC, therefore, should have
sent a letter to her seeking consent for the said nomination.
However, no such letter was addressed by the petitioner to the
H sister in law of the complainant. As far as special MHR is
MADHAV HARI JOSHI v. DIVISIONAL MANAGER, LIFE 213
INSURANCE CORPORATION OF INDIA
concerned, it was to be obtained by LIC and not by the proposer A
so as to verify the genuineness of the nomination and to ensure
that no moral hazard is involved. That also was not done in this
case and the matter was simply kept pending till the last date for
issuing the said policy expired on 21.02.2009.
8. That is petitioner’s own case that Jeevan Astha policy was to B
close on 21.02.2009. Therefore, if any consent was to be obtained
from the nominee or any verification was to be done, that ought to
have been done well before the date on which the scheme was to
close. The proposer cannot be made to suffer on account of the
delay and the negligence on the part of the petitioner LIC in not
processing the proposal expeditiously and well before the Scheme C
was to close on 21.02.2009.”
These findings are borne out from the record.
18. It appears from his letter dated 15 April, 2009 that the Branch
Manager of LIC had already received a decision to complete the proposal D
with extra premium. Admittedly, even the extra premium of Rs.10,000/
- was paid by the appellant as part of his payment of Rs.1,75,000/-. The
remaining formalities that were required to be observed were to be fulfilled
by the Development Officer and not by the appellant. LIC retained the
moneys of the appellant for a period of nearly five years. No effort was
made to refund the moneys. E
19. In this view of the matter, a deficiency of service was clearly
established. The National Commission has awarded interest at 12% per
annum on the principal sum of Rs.1,75,000/-. The District Forum had
quantified the compensation payable to the appellant at Rs.4,25,000/-.
The District Forum did not indicate the basis on which the above F
computation was made.
20. Learned counsel appearing on behalf of the appellant submitted
that the plan for which he had applied was an equity based market plan
and, hence, he has lost the benefit of an escalation in his investment
value. There is merit in this submission. The plan in question was not G
exclusively an insurance based product. By being linked to the equity
market, it had an investment element. LIC held on to the moneys of the
appellant wrongfully for five years. Its omission to refund has deprived
the appellant of the use of his moneys. Hence, a mere direction for the
payment of interest on the principal sum will not provide sufficient redress.
H
214 SUPREME COURT REPORTS [2019] 1 S.C.R.
A 21. In our view, the ends of justice would be met, if the direction,
which has been issued by the National Commission, is modified and an
additional amount of Rs.2,00,000/- is directed to be paid towards all the
claims, demands and outstandings, including litigation expenses.
22. The addition which has been directed to be made by this Court
B shall be paid over to the appellant within a period of one month from
today.
23. Learned counsel appearing on behalf of LIC states that the
amount which has been ordered to be paid by the National Commission
has already been deposited in the District Forum. The additional amount
C which has been directed by this Court shall also be deposited before the
District Forum within the period stipulated. The amount shall be released
to the appellant by the District Forum on proper identification.
24. We clarify that the above amount of Rs.2,00,000/- shall be in
addition to what has been ordered by the National Commission.
D 25. The appeals are accordingly disposed of. There shall be no
order as to costs.
Kalpana K. Tripathy Appeals disposed of.
E
F
G
H
[2019] 1 S.C.R. 215 215
HANSRAJ A
v.
MEWALAL AND ORS.
(Civil Appeal Nos. 87-88 of 2019)
JANUARY 09, 2019 B
[ASHOK BHUSHAN AND K. M. JOSEPH, JJ]
U.P. Consolidation of Holdings Act, 1953 – Consolidation
Scheme – Proposal of chaks – Assistant Consolidation Officer
proposing chaks to the appellant-original tenure holder and
C
respondents-co tenure holder on the plot opening towards pitch
road in the north of the plot – Objections to the proposed chaks by
the respondents that their possession is towards north of the plot
whereas appellant is in possession towards south of the plot, as
such proposed chaks should be in accordance with their possession
– Objections allowed – Challenge to, by the appellant – Settlement D
Officer holding that the appellant was original tenure holder of
plot, gave appellant chak on pitch road including area where his
boring and pumping set was situated and joint holder was given
chak on the north east side where he started construction – Upheld
by the Deputy Director Consolidation – Writ petition thereagainst,
E
allowed by the High Court – Sustainability of – Held: Not
sustainable – All the co-sharers had right in the plot and holdings
were not partitioned as per law – Appellant was fully justified in
claiming right of allotment on a portion of plot on the pitch road –
There was no justifiable reason for setting aside the order of the
Settlement Officer, Consolidation and Deputy Director, F
Consolidation – Equity was adjusted by the order of Settlement
Officer in making the chak in the manner that chak of every co-
sharer was on the pitch road which needed no interference by the
High Court – Thus, the order of the High Court set aside – U.P.
Zamindari Abolition & Land Reforms Act, 1950 – s. 176.
G
Allowing the appeals, the Court
HELD: 1.1 When in the northern side of the plot a pitch
road was constructed which was prior to consolidation operation,
the co-sharers of plot were entitled to get the benefit of road and
H
215
216 SUPREME COURT REPORTS [2019] 1 S.C.R.
A when the Settlement Officer of Consolidation had carved the chaks
in the manner that all the co-sharers including the appellant and
respondents were given the chaks on the pitch road which order
was confirmed by the Deputy Director of Consolidation, there is
no valid reason for the High Court to reverse the orders passed
by the Deputy Director of Consolidation and the Settlement
B
Officer Consolidation. The reasons as given by the High Court
indicate that the High Court had noticed that as house of one of
the petitioners (writ petitioners) is situated in the north eastern
side and boring and pumping set of the appellant is situated in
the southern side, the High Court justified the order of the
C Consolidation Officer. The High Court lost sight of the fact that
by amendment made by the Settlement Officer Consolidation,
one of the writ petitioners, R was allotted chak at the north east
corner on the Plot where his house was in existence and the
appellant was given the chak also on pitch road including his boring
and pumping set. [Para 10][220-D-H]
D
1.2 Even though parties were in possession of some portions
of the plot by mutual arrangement, there was no partition of
holding. The agricultural holding can be partitioned by instituting
the proceedings u/s. 176 of the U.P. Zamindari Abolition & Land
Reforms Act, 1950. Till holding is divided in accordance with
E section 176 every co-sharer of plot has right on the holding. It is
not the case of any of the parties that holding was partitioned by
an order obtained under Section 176. All the co-sharers had right
in the plot in question and holdings were not partitioned as per
law. The appellant was fully justified in claiming right of allotment
F on a portion of plot on the pitch road. The Assistant Consolidation
Officer has proposed the chaks to the parties in a manner so that
every one gets chak on the pitch road. The Consolidation Officer
has reversed the allotment of chaks by putting the appellant on
the southern side away from the road and allocating the chaks on
the pitch road in favour of the respondents which order was rightly
G reversed by the Settlement Officer of the Consolidation which
was an equitable order by which R who was given chak including
the area where he was constructing the house on the northeastern
portion of the plot. The appellant was allotted an area comprising
his pumping set and also by allocating chak part of which was on
H pitch road, other respondents were allotted the chak in such a
HANSRAJ v. MEWALAL AND ORS. 217
manner that everyone got their chak on the pitch road. There A
was no justifiable reason for setting aside the order of the
Settlement Officer Consolidation and Deputy Director,
Consolidation. It is to be noticed that Settlement Officer
Consolidation and Deputy Director while passing their orders
have also inspected the spot and the orders passed by them were
B
on the basis of spot inspection. The High Court in exercise of its
jurisdiction under Act 226 committed error in allowing the writ
petition by restoring the order of the Consolidation Officer which
was an inequitable order. In the facts and circumstances of the
instant case, equity was adjusted by the order of Settlement Officer
of Consolidation in making the chak in the manner that chak of C
every co-sharer was on the pitch road which order needed no
interference by the High Court. The appellant filed a review which
was too dismissed by the High Court. The orders of the High
Court are unsustainable and are set aside [Paras 11-13][221-A-
B, D-H; 222-A-B]
D
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 87-88
of 2019.
From the Judgment and Order dated 25.07.2013 of the High
Court of Judicature at Allahabad in Writ B No. 55952 of 2012 and order
dated 20.01.2014 in Civil Misc. Review Application No. 250902 of 2013. E
Ashok Kumar Singh, Shantwanu Singh, Advs. for the appellant.
The Judgment of the Court was delivered by
ASHOK BHUSHAN, J. 1. The appellant aggrieved by the
judgment of the High Court of Allahabad in Writ-B No.55952 of 2012 F
has come up in these appeals. The High Court by the impugned judgment
dated 25.07.2013 has allowed the writ petition filed by the private
respondents by setting aside the order dated 28.04.2012 of the Settlement
Officer Consolidation and order dated 19.07.2012 of Deputy Director of
Consolidation.
G
2. The brief facts necessary to be noticed for deciding these
appeals are:
The appellant along with his brother Bansraj were Bhumidhar
of Plot No.677 of Village Bahria, District Basti. Bansraj, brother of the
appellant by sale deed dated 12.10.1989 sold his 1/2 share in favour of
H
218 SUPREME COURT REPORTS [2019] 1 S.C.R.
A respondents. The Village in question was brought under Consolidation
operation after issuance of notification under the U.P. Consolidation of
Holdings Act, 1953 (hereinafter referred to as ‘the Act’). The Assistant
Consolidation Officer prepared a provisional Consolidation Scheme
proposing chaks to the appellant as well as respondents on Plot No.677
of which appellant was original tenure holder and the respondents were
B
co-tenure holders by virtue of sale deed from Bansraj. In the northern
side of Plot No.677 a pitch road was constructed six years before start
of Consolidation operation. The Assistant Consolidation Officer proposed
chaks to the appellant and the respondents opening towards pitch road
in the north of Plot No.677. The respondents filed belated objection under
C Section 21 of the Act objecting to the chaks as proposed by the Assistant
Consolidation Officer. The case of the objectors was that they should be
proposed chaks on Plot No.677 in accordance with their possession.
They stated that Their possession is towards north of the plot whereas
the appellant is in possession towards South of the Plot No.677. The
Consolidation Officer allowed the objection filed by the respondents.
D
The respondents were allotted chaks on the pitch road towards north,
the chak of appellant was carved on the south of the plot away from the
pitch road.
3. The appeal was filed by the appellant before the Settlement
Officer Consolidation under Section 21(2) of the Act. The Settlement
E Officer Consolidation noted that appellant was original tenure holder of
Plot No.677 and Ram Milan etc. have also become joint holders on the
basis of the sale deed. Ram Milan was constructing a house on the north
east side of the plot after obtaining permission of Settlement Officer
Consolidation which construction was stopped on the objection of the
F appellant. The Settlement Officer Consolidation concluded that it would
be legal and appropriate to give chak to all the joint holders adjacent to
pitch road. The appeal was allowed. Ram Milan was given chak on the
north east side where he started construction. The appellant was given
chak on the pitch road including area where his boring and pumping set
was situated.
G
4. Against the order of the Settlement Officer Consolidation
revision was filed by the respondents under Section 48 of the Act. The
Deputy Director, Consolidation affirmed the order of the Settlement
Officer Consolidation. The Deputy Director, Consolidation has also
inspected the spot and found that all the co-tenure holders have been
H
HANSRAJ v. MEWALAL AND ORS. 219
[ASHOK BHUSHAN, J.]
allotted chak adjacent to the pitch road and if the claim of the revisionist A
is allowed the appellant shall not get chak adjacent to pitch road which
would be illegal.
5. Aggrieved by the order of the Deputy Director, Consolidation a
writ petition was filed by the respondents. Learned Single Judge while
allowing the writ petition has given the following reasons: B
“I have considered the arguments of the learned counsel for the
parties and examined the material available on record. From the
perusal of the order of Consolidation Officer, it is proved that the
house of one of the petitioners is situated in the northern side and
boring and pumping set of respondent no.3 are situated in the C
southern side as such severance of the possession on the spot is
fully proved. In the circumstances of the case, the Consolidation
Officer has rightly allotted the chak to the petitioners in the northern
side and no interference was required in it. The orders of Settlement
Officer Consolidation as well as Deputy Director of Consolidation
are illegal and are liable to be set aside.” D
6. Learned counsel for the appellant submits that appellant being
original tenure holder of Plot No.677 he was co-sharer on the entire plot
and was rightly proposed chak by the Assistant Consolidation Officer on
a part of the pitch road. The area on the pitch road became valuable
after construction of the road and the appellant could not have been E
denied his chak on the part of pitch road. The Consolidation Officer
committed error in setting aside chak proposed by the Assistant
Consolidation Officer, which was rightly reversed by the Settlement
Consolidation Officer and Deputy Director, Consolidation. He submitted
that there was no partition of the agricultural land in accordance with F
law nor there was any right in the respondents to claim chak comprising
the entire area of the plot on the pitch road.
7. No one appeared for the respondents.
8. As noted above, the Assistant Consolidation Officer has
proposed chaks to the parties which were all on the pitch road. The G
Consolidation Officer allowed the objection filed by the respondents under
Section 21(1) by allocating chaks to the respondents on the northern
side of the plot on the pitch road by carving the chak of the appellant on
the southern side away from the pitch road. The Consolidation Officer
allowed the objection of the respondents by noticing following reasons:
H
220 SUPREME COURT REPORTS [2019] 1 S.C.R.
A “(i) The objectors are cultivating as per the sketch maps produced
by them.
(ii) The House of Ram Milan is situated on the northern eastern
corner.
(iii) The Assistant Consolidation Officer has not shown the chak
B of Ram Milan in his proposal.”
9. The Settlement Officer Consolidation set aside the order of
Consolidation Officer in the appeal filed by the appellant. The Settlement
Consolidation Officer has allotted the chak to Ram Milan on the north
east corner. The Settlement Officer Consolidation allocated the chaks
C of the parties in the manner that every one was allotted the chak on the
pitch road. The reason for altering the chaks by the Consolidation Officer
with regard to Ram Milan was fully satisfied by the Settlement Officer
of Consolidation since he was allotted the chak where he was constructing
the house. In the chak of the appellant, the trees and boring and pumping
D set were also included to maintain the possession of the parties on the
plot.
10. The appellant was original holder of the Plot No.677/1. When
in the northern side of the plot a pitch road was constructed which was
prior to consolidation operation, the co-sharers of Plot No.677 were entitled
E to get the benefit of road and when the Settlement Officer of Consolidation
had carved the chaks in the manner that all the co-sharers including the
appellant and respondents were given the chaks on the pitch road which
order was confirmed by the Deputy Director of Consolidation, we see
no valid reason for the High Court to reverse the orders passed by the
Deputy Director of Consolidation and the Settlement Officer
F Consolidation. The reasons as given by the High Court, as noticed above,
indicate that the High Court had noticed that as house of one of the
petitioners (writ petitioners) is situated in the north-eastern side and boring
and pumping set of the appellant is situated in the southern side, the High
Court has justified the order of the Consolidation Officer. The High Court
G has lost sight of the fact that by amendment made by the Settlement
Officer Consolidation, one of the writ petitioners, Ram Milan was allotted
chak at the north east corner on the Plot No.677 where his house was in
existence and the appellant was given the chak also on pitch road including
his boring and pumping set.
H
HANSRAJ v. MEWALAL AND ORS. 221
[ASHOK BHUSHAN, J.]
11. There is one more reason due to which no interference was A
required in the order of the Settlement Officer Consolidation and the
Deputy Director, Consolidation, i.e., the appellant and the respondents
were all co-sharers of Plot No.677. Even though parties were in
possession of some portions of the plot by mutual arrangement, there
was no partition of holding. It is relevant to note that agricultural holding
B
can be partitioned by instituting the proceedings under Section 176 of
U.P. Zamindari Abolition & Land Reforms Act, 1950 which is as follows:
“176. Holding of a bhumidhar or sirdar divisible. - (1) A
bhumidhar may sue for [division] of his holding.
(2) To every such suit the Gaon Sabha concerned shall be made C
a party.”
Till holding is divided in accordance with Section 176 every co-
sharer of plot has right on the holding.
12. It is not the case of any of the parties that holding was
partitioned by an order obtained under Section 176. All the co-sharers D
had right in the plot in question and holdings were not partitioned as per
law. The appellant was fully justified in claiming right of allotment on a
portion of plot on the pitch road. The Assistant Consolidation Officer
has proposed the chaks to the parties in a manner so that every one gets
chak on the pitch road. The Consolidation Officer has reversed the E
allotment of chaks by putting the appellant on the southern side away
from the road and allocating the chaks on the pitch road in favour of the
respondents which order was rightly reversed by the Settlement Officer
of the Consolidation which was an equitable order by which Ram Milan
who was given chak including the area where he was constructing the
house on the north-eastern portion of the plot. The appellant was allotted F
an area comprising his pumping set and also by allocating chak part of
which was on pitch road, other respondents were allotted the chak in
such a manner that everyone got their chak on the pitch road. There
was no justifiable reason for setting aside the order of the Settlement
Officer Consolidation and Deputy Director, Consolidation. It is to be G
noticed that Settlement Officer Consolidation and Deputy Director while
passing their orders have also inspected the spot and the orders passed
by them were on the basis of spot inspection. The High Court in exercise
of its jurisdiction under Act 226 committed error in allowing the writ
petition by restoring the order of the Consolidation Officer which was
H
222 SUPREME COURT REPORTS [2019] 1 S.C.R.
A an inequitable order. In the facts and circumstances of the present case,
equity was adjusted by the order of Settlement Officer of Consolidation
in making the chak in the manner that chak of every co-sharer was on
the pitch road which order needed no interference by the High Court.
The appellant filed a review which was too dismissed by the High Court
on 20.01.2014.
B
13. In view of the foregoing discussion, we are of the view that
orders of the High Court are unsustainable and are hereby set aside.
The appeals are allowed, judgment dated 25.07.2013 as well as order
dated 20.01.2014 are set aside. The writ petition filed by the respondents
stand dismissed. No costs.
C
Nidhi Jain Appeals allowed.
D
E
F
G
H
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