Holding

The Board’s determination under the Kerala Land Reforms Act must be given due weight, and the evidence shows that only the demarcated 100 hectares (and 155.90 acres) were private forest vesting in the State, the remainder being exempt plantation, so the High Court’s order stands.

Summary

The State of Kerala claimed that 1534.40 acres owned by M/s Popular Estates were private forests that vested in the State under the Kerala Private Forests (Vesting and Assignment) Act, 1971. Popular Estates argued that the lands were cultivated plantations and therefore exempt under the Act’s exclusion clauses. The Kerala High Court, relying on the Taluk Land Board’s determination under the Kerala Land Reforms Act, 1963 and extensive documentary evidence, held that only about 100 hectares (plus 155.90 acres) were private forest, the rest being plantation. The State appealed, contending that the Board’s findings should not be given evidentiary weight and that the tribunal’s findings were correct. The Supreme Court affirmed that the Board’s order, unless contradicted, must be given due weight and that the High Court’s factual findings were plausible, dismissing the appeal.

Issues considered

Whether lands classified as private forest under the Kerala Private Forests (Vesting and Assignment) Act, 1971 are exempt as plantation crops under Section 2(f)(1)(i)(B).
Whether the determination of the Taluk Land Board under the Kerala Land Reforms Act, 1963 constitutes binding res judicata or merely evidence for the Vesting Act.
Whether the documentary and testimonial evidence establishes that the disputed lands were cultivated plantations and not private forests.
Whether the High Court’s findings merit interference under Article 136 of the Constitution.
Interpretation of the definition of ‘private forest’ in relation to the Madras Preservation of Private Forests Act, 1949.

Legislation cited

Kerala Land Reforms Act, 1963s. 2(47), s. 81
Kerala Private Forests (Vesting and Assignment) Act, 1971s. 2(a), s. 2(f), s. 3, s. 6, s. 8
Madras Preservation of Private Forests Act, 1949

Subjects

private forestvesting actland reformsevidentiary weightres judicataplantationKeralaspecial leaveArticle 136

Judgment

[2021] 11 S.C.R. 541 541

STATE OF KERALA & ANR. A
v.
M/S POPULAR ESTATES (NOW DISSOLVED) & ANR.
(Civil Appeal No. 903 of 2011)
B
OCTOBER 29, 2021
[INDIRA BANERJEE AND S. RAVINDRA BHAT, JJ.]
Kerala Private Forests (Vesting and Assignment) Act, 1971:
ss. 2(a), 2(f), 3, 6 and 8 – Kerala Land Reforms Act, 1963 – ss.
2(47) and 81 – Private forests – Meaning of – Nature of land – C
Determination of, by Taluk land Board – Evidentiary value of –
Held: Where the Land Board arrives at a determination about the
character of lands, under the Act of 1963, that becomes a piece of
evidence for the purposes of the Vesting Act – Unless a contrary
state of affairs shown to exist, the Board’s order to be given due D
weight – On facts, rounds of litigation between the State and the
respondent – Respondent claiming that they were owner of 1534.40
acres of land which was acquired by sale, and forest authorities
attempted to take possession of large areas of land occupied by the
respondent on the ground that they were private forests and were
vested in the State – Draft statement by the Taluk Land Board, E
wherein respondent shown to hold 1576 acres of land, of which
1537 acres fell under the exempted category, and that respondent
was eligible to retain the balance extent within the ceiling area;
and that there was no surplus land to be surrendered to the State –
High Court correctly invoked the Board’s order and held that an F
area of slightly over 100 hectares and 155.90 acres was forest land
that vested in the State, and the rest of the 1534.40 acres land had
to be treated as plantation, and thus, belonged to the respondent –
High Court placed reliance on preliminary and final report by the
Commissioner, draft statement of the land, respondent’s auditor’s
balance sheet, agricultural income tax, sales tax return, and G
employees provident fund – All these materials, support the
conclusions of the High Court, based on plausible (and not an
unreasonable) inference of the overall analysis of the evidence on
the record – Thus, the order of the High Court does not call for
interference – Madras Preservation of Private Forests Act, 1949. H
541
542 SUPREME COURT REPORTS [2021] 11 S.C.R.

A Constitution of India: Art. 136 – Discretionary Jurisdiction –
Exercise of – Held: Where two plausible views on the conclusions
that can be drawn from facts on the record exist – View taken by the
High Court being a plausible one, interference with the findings of
the High Court is not called for.
B Dismissing the appeal, the Court
HELD: 1.1 Section 2(f)(1) of the Kerala Private Forests
(Vesting and Assignment) Act, 1971 defines “private forest”, in
relation to Malabar District. Section 2(f)(1)(i) says that “private
forest” means any land to which the Madras Preservation of
C Private Forests Act, 1949 applied immediately before the
appointed day, viz., 10.05.1971. It thereafter, enacts that certain
lands are excluded from the definition of “private forest” falling
under sub-clauses (A) to (D). Lands, which are gardens or nilams
(defined in the Kerala Land Reforms Act, 1963), are excluded
from the definition of “private forest” under the Vesting Act under
D sub-clause (A). Likewise, lands used principally for the cultivation
of tea, coffee, cocoa, rubber, cardamom or cinnamon and lands
used for any purpose ancillary to the cultivation of such crops or
for the preparation of the same for the market are excluded from
the definition of “private forest” by reason of sub-clause (B).
E Explanation to Section 2(f)(1)(I)(B) further showed that lands used
for the purpose of construction of office buildings, go-downs,
factories, quarters for workmen, hospitals, schools and
playgrounds were deemed to be lands used for purposes ancillary
to the cultivation of such crops. Therefore, Section 2(f)(1)(i)(B)
evidences that lands used principally for cultivation of certain
F crops and lands used for construction of buildings for the purpose
of running and maintaining a plantation are excluded from the
definition of “private forest”. Under Section 3 of the Vesting Act
under which private forests were to vest in the Government.
[Para 29][563-D-H]
G State of Kerala v Gwalior Rayon Silk Manufacturing
and Weaving Co. 1974 (1) SCR 671; Parameswara
Sastrigal K.S. v. State of Kerala & Ors 2008 2 ILR
371; Bhawani Tea & Produce Co. Ltd. v. State of Kerala
& Ors. 1991 (2) SCC 463 : [1991] 1 SCR 550; Gwalior
H
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 543

Rayons Silk Mfg. (Wvg.) Ltd v. The Custodian of Vested A
Forests, Palghat & Anr. 1990 (Supp) SCC 785;
Malankara Rubber & Produce Co. v. State of Kerala &
Ors. [1973] 1 SCR 399; State of Kerala v. Pullangode
Rubber & Produce Co. Ltd. (1999) 6 SCC 92 : [1999]
3 SCR 1163 – referred to.
B
1.2 The State’s contention that as the respondents had
mentioned in its petition that a certain area was forest (since it
was so, by virtue of provisions of the Madras Act) therefore, does
not preclude the latter’s contention that no vesting could take
place; whether the lands were “forest” or cultivated plantations
or estates, for the purposes of Section 2(f)(1)(i)(B) of the Vesting C
Act, especially whether they stood excluded from operation of
that Act, had to be considered independently. [Para 34][567-F]
1.3 The judgment in Kunjanam Antony’s case enunciated
the rule that where the Land Board arrives at a determination
about the character of lands, under the KLR Act, that becomes a D
piece of evidence for the purposes of the Vesting Act. Therefore,
it is no longer open for the State to argue that the Board’s
determination or order, had little or no evidentiary value. In view
of the judgments of this Court, including Popular II’s case, the
enunciation of the principle that “unless a contrary state of affairs” E
were shown to exist, the Board’s order “would have to be given
due weight” had to apply, and was correctly invoked by the High
Court. [Para 35, 36][567-G; 568-D-E]
Kunjanam Antony v. State of Kerala (2003) 3 SCC 221
: [2003] 1 SCR 967; State of Kerala v. Mohammed F
Basheer (2019) 2 SCC 260; State of Kerala v. Popular
Estates (2004) 12 SCC 434 : [2004] 5 Suppl. SCR 943
– relied on.
1.4 The two reports: preliminary and final, filed by the
Commissioner, in the first proceeding (instituted by the G
respondent in 1974 by two applications) were the nearest in point
of time, to the appointed date. The preliminary report, (filed on
15.01.1976) discloses widespread cultivation of coffee, cardamom,
rubber, areca nut, etc. The two reports are part of the record.

H
544 SUPREME COURT REPORTS [2021] 11 S.C.R.

A The final report dated 12.09.1977 by the Commissioner recorded
that the Forest Range Officer, after inspection stated that “only
disputed portions in Bit Nos. 1 to 7 had been demarcated and
that the other areas were cultivated”. The respondents contention
was that this reflected the true factual position, coupled with the
Range Officer’s memorandum filed before the Commissioner on
B
01.09.1977. [Para 37][567-F-G]
1.5 A combined reading of the materials, leads to the
inference that a detailed inspection of the area took place. Only
those areas that vested with the government were demarcated
by the survey party, attached with the Superintendent, Land
C Records. It was in these circumstances that the respondent
successfully urged before the High Court that what was
demarcated was only 100 hectares and the others were not
demarcated since they were cultivated. This was borne out by
the final report. The possession with respect to 100 hectares of
D uncultivated forest lands was also covered by draft statement of
land furnished to the Board in proceedings under the KLR Act,
which was the foundation for the Board’s order dated 04.11.1980.
Both these documents confirmed that 100 hectares was vested
forest. The respondent had submitted that 533 acres was under
cardamom cultivation; 120 acres under rubber plantation; 257
E acres under coffee plantation and that 155.9 acres was forest land;
and 17.5 acres of were comprised of roads and buildings. These
arguments found favour with the High Court. There is no glaring
error in the impugned judgment, having regard to these
circumstances. [Para 38][569-A-D]
F 1.6 The tribunal entirely rejected the evidence of PW-1,
the Forest Range Officer, who gave the memorandum to the
Commissioner on 01.09.1977. The tribunal wholly discredited
and brushed aside the evidence of this officer and viewed it with
suspicion. This is clear from the repeated use of the phrase “magic
G money” suggesting that PW-1 was devious and had been bribed.
A reading of his deposition shows no such suggestion to him; no
material was placed on record that he was prosecuted for an
offence, nor were departmental proceedings initiated, for
misconduct. [Para 39][569-E]

H
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 545

1.7 The other materials on record-the auditor’s balance A
sheets, the evidence of the auditor (PW-4), the deposition of the
manager of the respondent (PW-5), who had worked since 1969
onwards reinforce the respondent’s contentions that the largest
part of the area was cultivation for plantation crops. The tribunal
unreasonably discarded these materials. The other documents,
B
Settlement arrived at between the respondents and its workers
after closure on 25.6.1982 reveal that it had 80 permanent workers
and 29 temporary workers on its rolls. Likewise, copies of income
tax returns for various dates showed that income from these
estates was consistently reported, along with expenditure. For
the year ending on 31.3.1968 income was reported as ` 81,319; C
for the year ending 31.3.1969 it was ` 95,707/-; the year ending
31.3.1970 it was ` 1,12,524; and for the year ending 31.3.1971 it
was ` 1,38,918. The respondent was apparently depositing
agricultural income tax and employees provident fund. It had
produced correspondence with these statutory authorities, as well
D
as sales tax returns. [Para 40, 41][569-F-H; 570-A-B]
1.8 The title deeds of the predecessor-in-interest of the
partners of the respondents who had acquired the lands in 1963,
show that large areas were shown as cardamon plantation. The
respondents had filed agricultural income returns and even in
1970, it was producing coffee, rubber and cardamom. The fact E
that it had some labour trouble also supported its contention that
the respondents’ plantation activities were on in full scale. All
these materials, support the conclusions of the High Court, which
are based on plausible (and not an unreasonable) inference of
the overall analysis of the evidence on the record. This court has F
carefully considered the findings of the High Court while setting
aside the order of the tribunal. The reasons which led the High
Court to conclude that the tribunal’s findings called for
interference are merited and in accord with the material evidence
on record. This Court is therefore of the opinion that no
interference with the impugned judgment of the High Court is G
called for. [Para 42, 45][570-C-D; 572-A]
1.9 Where two plausible views on the conclusions that can
be drawn from facts on the record exist, this Court, in exercise

H
546 SUPREME COURT REPORTS [2021] 11 S.C.R.

A of its discretionary jurisdiction under Article 136 of the
Constitution would not interfere with the findings of the High
Court. [Para 43][570-E]
Pritam Singh v. The State 1950 SCR 453; Tirupati Balaji
Developers Pvt. Ltd. v. State of Bihar (2004) 5 SCC 1 :
B [2004] 1 Suppl. SCR 494; Jamshed Hormusji Wadia v.
Board of Trustees, Port of Mumbai (2004) 3 SCC 214 :
[2004] 1 SCR 483; Union of India v. Gangadhar
Narsingdas Agarwal & Anr (1997) 10 SCC 305; Jai
Mangal Oraon v. Mira Nayak (Smt) & Ors (2000) 5
SCC 141 : [2000] 3 SCR 1128; Taherakhatoon (D) By
C Lrs. v. Salambin Mohammad (1992) 2 SCC 635;
Popular Plantation v. State of Kerala 1991 Supp (2)
SCC 720; State of Kerala v ACK Rajah 1994 Supp. (3)
SCC 250 – referred to.
Case Law Reference
D
[1974] 1 SCR 671 referred to Para 2
(1991) Supp 2 SCC 720 referred to Para 4
[1991] 1 SCR 550 referred to Para 12
(1994) Supp 3 SCC 250 referred to Para 21
E (1990) Supp SCC 785 referred to Para 31
[1973] 1 SCR 399 referred to Para 31
[1999] 3 SCR 1163 referred to Para 33
[2003] 1 SCR 967 relied on Para 35, 36
F [2004] 5 Suppl. SCR 943 relied on Para 36
(2019) 2 SCC 260 relied on Para 36
[1950] SCR 453 referred to Para 43
[2004] 1 Suppl. SCR 494 referred to Para 43
G [2004] 1 SCR 483 referred to Para 43
(1997) 10 SCC 305 referred to Para 44
[2000] 3 SCR 1128 referred to Para 44
(1992) 2 SCC 635 referred to Para 44

H
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 547

CIVIL APPELLATE JURISDICTION: Civil Appeal No.903 of A
2011.
From the Judgment and Order dated 05.12.2008 of the High Court
of Kerala at Ernakulam in M.F.A. No.108 of 2006 (B).
Pallav Sishodia, Sr. Adv., G. Prakash, Jishnu M. L., Mrs. Priyanka
Prakash, Mrs. Beena Prakash, Advs. for the Appellants. B

K. V. Vishwanathan, Sr. Adv., Raghanth Basant, Ms. Liz Mathew,
Raghav Mehrotra, Apoorv Singhal, Advs. for the Respondents.
The Judgment of the Court was delivered by
S. RAVINDRA BHAT, J. C
1. This appeal by special leave challenges a judgment of the Kerala
High Court1, which allowed an appeal preferred by the respondent
(hereafter called “Popular Estates”) and held that an area of slightly
over 402 acres (i.e., 100 hectares and 155.90 acres) vested in the State
of Kerala (hereafter “the state”), and the rest of the land (of a total D
1534.40 acres) had to be treated as plantation, and thus, belonged to the
said respondent.
2. Popular Estates became owners of 1534.40 acres of land. Those
lands were acquired by sale, by M/s Popular Automobiles, a registered
firm, through four registered deeds executed in 1963. These lands fell to E
Popular Estate’s share upon partition of the firm’s assets. The Kerala
Private Forests (Vesting and Assignment) Act, 1971 (hereafter “the
Vesting Act”) came into force with effect from 10.5.1971. Under Section
3 of the Vesting Act, all private forests vested in the State Government.
The Act was challenged before the Kerala High Court, which struck it
F
down, by a judgment, in 1972. That judgment was reversed by this Court’s
ruling in 19732.
3. The forest authorities attempted to take possession of large
areas of land occupied by Popular Estates, arguing that they were private
forests and had vested in the state, under the Act. Popular Estates moved
two Original Applications 3 before the Forest Tribunal (“tribunal” G
hereafter) under Section 8 of the Act claiming a declaration that no part
1
In MFA 108/2006 decided on 05.12.2008
2
State of Kerala v Gwalior Rayon Silk Manufacturing and Weaving Co.1974 (1) SCR
671
3
O.P Nos. Nos. 242 & 243/ 1974 H
548 SUPREME COURT REPORTS [2021] 11 S.C.R.

A of the estate consisting 1534.40 acres was liable to vest in the state.
Since it was being cultivated and hence, it was exempt under the provisions
of the Vesting Act. The state opposed those applications. The tribunal
appointed a commissioner to inspect the entire area and report about its
state to it. The commissioner after a preliminary inspection was of the
view that a detailed survey of the land was necessary as most of the
B
land was situated on hills, and therefore, inaccessible. Private surveyors,
appointed to survey the land were unable to complete the work. The
tribunal directed Forest Department Survey Officers to survey the lands.
The tribunal, thereafter dismissed the Original Applications4. It made
critical comments about the manner in which the surveyors had made
C the report and recorded that:
“This exclusion by the forest officials, may be due to the fact
that the magic money lulled them to sleep over the rights of
the Government or may be due to the fact that the claim
originally put forward by the forest officials was false. Neither
D way it is not very complimentary to the respondents here or to
those officials concerned. It is for the Government to make
necessary immediate enquiry in this matter through some
official, other than Forest Department official, if the
Government so think and ascertain whether any area which
legitimately come under the classification of private forest
E and which had vested in the Government besides bits 1 to 7
have been excluded by the forest officials or by the forest
survey officials. On the basis of the Commissioner’s report
and the facts mentioned by him, I am inclined to think that
prima facie it appears that areas which should really be vested
F forest have been excluded, when the claim was confined to
100 hectares.”
After orders of the tribunal, forest authorities attempted to take
possession of the land. In the meanwhile, the state also issued notification
no. 4713/1977 notifying 100 hectares of the respondent estate as private
G forest, based on survey undertaken by the forest department. Popular
Estates filed two appeals5 impugning the tribunal’s orders, before the
High Court. These were dismissed; the special leave petition against
those orders too, were dismissed. Popular Estates then filed civil suits 6
4
By order dated 15.02.1978
5
MFA 230 & 231/1978
H 6
Suit Nos. 69 & 71/ 1987 before the civil court Munsif’s Court, Hosdurg
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 549
[S. RAVINDRA BHAT, J.]

claiming that the state be permanently injuncted from taking possession. A
Initially, the civil court refused to register the plaint on grounds of
maintainability, later, the suits were entertained on the intervention of the
High Court in civil revision.
4. On 22.7.1987, the Custodian and Conservator of Vested Forests
issued a notification (Ex. A-27) under Section 6 of the Act demarcating B
324 hectares of land belonging to Popular Plantation as vested forests
under the Act. This notification was challenged in writ proceedings 7.
Popular Plantation also withdrew the two suits. Their writ petitions were
dismissed on the ground that the respondents had alternate remedy
available before the tribunal. In these circumstances, Popular Estates C
filed applications8 before the tribunal under Section 8 of the Vesting Act
challenging the notification dated 22.07.1987 and seeking a declaration
that the property covered by the applications was not private forest and
had not vested in the state government. Simultaneously, they also filed a
writ appeal9 against the order dismissing their writ petition. The writ
appeal was admitted subject to the condition that Popular Plantation D
withdraw its original applications pending before the tribunal, and upon
complying with the same, they approached the tribunal as directed, by
filing original applications in 199010 challenging the state’s jurisdiction to
issue the notification after a long lapse of time. Popular Plantation also
filed an appeal before this court, which was disposed of 11. This court E
observed that Popular Plantation had the liberty of appearing and pursuing
their application before the tribunal, confining the challenge to the validity
of the notification “on the grounds set out in the writ petition filed in
the High Court”. In the event the tribunal held it had no jurisdiction,
liberty was given to file an appeal and/or a writ petition before the High
Court to challenge the notification “but only on the said grounds”. F

5. Popular Estates amended its original applications pending before
the tribunal (OA Nos. 166 & 167/1990) and also filed a writ petition
before the High Court12 challenging the validity of the notification dated

7
G
Before the Kerala High Court in OP No. 7498/ 1987
8
Original Applications Nos. 28 & 29/ 1988
9
Before the Kerala High court in WA No. 165/1989.
10
Original Applications Nos. 166 & 167/ 1990
11
Civil Appeal No. 200/ 1991 disposed by order dated 11.1.1991 [reported in Popular
Plantation v. State of Kerala, 1991 Supp (2) SCC 720]
12
OP No. 4751/ 1993 H
550 SUPREME COURT REPORTS [2021] 11 S.C.R.

A 22.7.1987. The tribunal dismissed13 the two original applications holding
that in its earlier order it had only dealt with the status of 100 hectares of
the land and, therefore, with regard to rest of the land the State was
empowered to issue a fresh notification. This order was challenged in
an appeal before the High Court14. By a common judgment15 the High
Court allowed the appeal and writ petition, holding the notification to be
B
valid only in respect of the 100 hectares of vested forest. It was held
that there was no vesting so far as the rest of the land was concerned.
The High Court also directed the Custodian of Vested Forests to
demarcate the boundaries of the certain extent under Section 6 of the
Act and restore possession of the remaining extent of the properties to
C Popular Plantation.
6. The state appealed to this court, by special leave. The appeal16
was decided by a judgment17 dated 04.11.2004 (hereafter referred to as
“Popular-II”). This court, in Popular-II noticed that the High Court
had proceeded on the basis that the order made by the Taluk Land Board
D in a land ceiling case pertaining to Popular Plantation would amount
to res judicata. A draft statement under the provisions of the Kerala
Land Reforms Act, 1963 (hereafter, “KLR Act”) was filed. Section 81
of the KLR Act exempted private forests and plantations. Rule 10 of
the Kerala Land Reforms (Ceiling) Rules, 1970 prescribed that Taluk
Land Boards were to prepare a draft statement of lands to be surrendered
E and serve copies of such drafts on persons interested in the lands. In the
draft statement prepared by the Taluk Land Board (hereafter, “the
Board”), Popular Estates was shown to hold an extent of 1576-73-257
acres of land, of which 1537-25-645 acres fell under the exempted
category, and that Popular Estates was eligible to retain the balance
F extent within the ceiling area. The Board concluded18 that there was no
surplus land to be surrendered to the state. The state government did not
challenge the declaration made by the Board but sought to initiate
proceedings under Section 85(9-A) of the KLR Act, by issuing notice
dated 18.05.1992 for reopening the final order of the Taluk Land Board.
That notice had been challenged by Popular Estates by their civil revision
G
13
By order dated 30.10.1992
14
MFA No. 72/ 1993
15
Dated 07.04.1994 the High Court allowed MFA No. 72/1993 and writ petition OP
No. 4751/1993
16
C.A 7111/1999
17
State of Kerala v. Popular Estates, (2004) 12 SCC 434
H 18
Order of Taluk Land Board dated 04.11.1980.
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 551
[S. RAVINDRA BHAT, J.]

petition19 before the Kerala High Court by which further proceedings A
were stayed. Based on a previous judgment rendered in Kunjanam
Antony v. State of Kerala20 this court held that the Board’s determination
could not operate as res judicata, but would be a piece of evidence. This
court remanded the matter back to the tribunal.
7. The tribunal re-appreciated the evidence on the record as B
required by this court and rejected Popular Estates’ appeal21. Noticing
that the burden was upon Popular Estates to establish that the disputed
properties were not private forests but were cultivated as plantations,
the tribunal observed that in terms of the Vesting Act, especially Section
2(f) and its various components, the first requirement was to consider
whether the lands or any part of the lands fell within the purview of C
the Madras Preservation of Private Forests Act, 1949 (hereafter, “the
Madras Act”) which was immediately in force before the Vesting Act
was enacted. It was noticed that the Madras Act applied to all private
forests in Malabar and south Kanara having a contiguous area of 100
acres. The disputed properties were situated at a place within D
erstwhile Malabar district and the tribunal took note of the Range Officer’s
evidence (RW-1) which suggested that the Madras Act applied to the
disputed property. The tribunal’s order also took into account Ex. A-37,
one of the title deeds which referred to the permission granted by the
District Collector to sell the property and held that such permission was
necessary having regard to the provisions of the Madras Act. Relying E
on Section 2(f)(1)(i)(B) of the Vesting Act, the tribunal stated that this
provision takes lands which were principally used for the cultivation of
tea, coffee, cocoa, rubber, cardamom or cinnamon and lands used for
any purpose ancillary to such cultivation, out of its coverage. In this
regard Popular Estates had examined PW-5 and relied on a few F
documents to establish that the properties were cultivated with rubber,
coffee and cardamom. PW-5 was the manager of the plantation: his
services began in 1969 as Office Assistant. He stated, in his evidence
that at that stage (in 1969), 1130 acres of the estate was plantation and
that 160 acres were also planted before commencement of the Act. The
tribunal brushed aside this evidence, concluding that nothing tangible G
emerged from it and that Popular Estates necessarily had to prove that
the disputed properties were principally cultivated with rubber, coffee or
19
CRP No. 1409/ 1992
20
(2003) 3 SCC 221
21
By its order dated 25.05.2005 H
552 SUPREME COURT REPORTS [2021] 11 S.C.R.

A cardamom. The tribunal faulted PW-5’s evidence as not being precise
with respect to the extent of properties which had been planted with the
different crops. It also faulted his evidence on the ground that he had
limited knowledge since he had to deal only with the estate when he
became an Estate Supervisor in 1974-75; it was concluded that he did
not have any direct knowledge with respect to the nature or extent of
B
cultivation. The tribunal considered Ex. A37-A41 holding that they were
title deeds. It was noted that Ex. A41 was executed in 1972, i.e. after
the appointment date; and being a photocopy - was in any case
inadmissible. The other documents had come into existence
before the appointed day, however, their recitals did not disclose expressly
C that before the appointed date, the properties were cultivated with rubber,
coffee and cardamon. The tribunal noted that the schedules in two of
the documents - Ex. A-37 and 38 - showed that the properties were
cultivated with cardamom. These were to the extent of 72.762 hectares
and 89.92 acres, but were not proved to be land within the disputed
properties.
D
8. The tribunal noted that this court’s holding was that the Board’s
orders were not binding on the authorities under the Vesting Act. It
proceeded to analyse Ex. A-50 & 51 which was the draft statement of
lands surrendered to the government under the KLR Act and the certified
copy of the order of the Taluk Land Board, respectively. In this context,
E the tribunal considered Objection no.7, that Popular Automobiles owned
1530.4 acres in Maloth village and that out of this, the private forest
coming within the purview of the Madras Act - an extent of 1127.50
acres - had been converted into plantation. The tribunal discarded the
Board’s findings as inconclusive.
F 9. The tribunal further rejected the evidence of PW-1, the Range
Forest Officer, who had deposed before the earlier tribunal proceedings
in O.A. 242 & 243/1974 to say that the dispute was confined to 100
hectares. In this regard, the tribunal relied firstly, upon certain
observations of this court in Popular-II and secondly, that PW-1 had
G no authority to admit any fact to the detriment of the state. Likewise, the
tribunal rejected other documentary evidence in the form of Ex. A-11
and A-14 as well as Ex. A-6 and A-7 as insufficient to prove that the
disputed properties were principally planted with rubber, coffee or
cardamom. In the final analysis, the tribunal went by the fact that the
disputed properties were covered by the Madras Act immediately before
H the appointed date. It consequently held that Popular Estates failed to
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 553
[S. RAVINDRA BHAT, J.]

bring their case under any of the clauses to Section 2(f)(1)(i) of the A
Vesting Act (i.e. the exclusionary part), and therefore, failed to prove
that any part of such properties were Estates meant for the cultivation
of coffee, rubber, cardamom etc.
10. Aggrieved by the tribunal’s order, Popular Estates preferred
an appeal. The High Court in the impugned judgment recounted the B
entire proceedings particularly the judgement of this court in Popular-II
and the decision in Kunjanum Anthony (Supra). It gave certain weight
and credence to the observations and findings of the Board and held
that the land ceiling proceedings were not res judicata in the
proceedings under the Vesting Act but constituted a valid piece of
evidence. The impugned judgement relied upon the judgment C
in Kunjanum Antony’s case (supra) that until a contrary state of affairs
is shown to exist, the order of the Board would have to be given due
weight. The High Court observed that the excess land automatically
vests with the state like in the private forests vesting under Section 3 (1)
of the Vesting Act. The purpose of or intent of both enactments is to D
distribute excess lands to landless agricultural labourers. The High Court
was of the view that the state never alleged that the Board’s order was
obtained under fraud but rather that it was passed after considering all
statutory formalities. The Board, noted the High Court, rendered findings
with respect to the nature of the land as on the appointed date of the
KLR Act, i.e., 01.01.1970. The appointed date for the Vesting Act E
was 10.05.1971. The High Court held that there is not much difference
between the two dates in point of time and that there was nothing on
record to suggest that the land usage had changed in between.
Proceeding with its analysis on the evidence on record, the Court took
note of the title deeds (Ex. A-37 to A-40) and the balance sheets and F
profit and loss account (Ex. A-59 to A-64) to show that Popular Estates
was earning agricultural income from the land before the appointed date,
and that it maintained regular balance sheet, and profit and loss account.
The High Court was of the opinion that the notification issued on
08.07.1977 ultimately led to the state establishing that only 100 hectares
were private forest. It was also stated that Ex. A-27, i.e., the notification G
dated 22.07.1987, was issued after demarcating the land under Section
6 and taking those 100 hectares as included in the 1534.40 acres purchased
by the firm after nine years when legal proceedings were pending. Ex.
A-65 is the accounts ledger for 1970-71 which showed that there was
cultivation in the relevant accounting year. There were other letters in H
554 SUPREME COURT REPORTS [2021] 11 S.C.R.

A the form of exhibits, i.e., Ex. A-66, A-69 and A-70 which showed that
Labour authorities such as the Labour Commissioner and Provident Fund
authorities were involved with respect to labour unrest in the estate. Exhibit
A-67 and A-68 were addressed to the Agricultural Income Tax Officer
and Ex. A-71 and A-72 were letters addressed to the Sales Tax Officer.
These also showed that some labour disputes in the estate starting from
B
1983 existed and that production had slowed down. It was only after
these that Ex. A-27, notification dated 22.08.1987 was issued.
11. The High Court was of the opinion that all these documents
clearly showed that the entire area other than the 100 hectares of land
earlier notified by notification dated 08.07.1977 were not private forests
C on the appointed date but exempted in view of the definition of private
forest. The court also noted the location sketch given by PW-3 the
Commissioner, a copy of the memorandum submitted before the Advocate
Commissioner by forest officials (Ex. A-4), and the reports of the
Commissioner (Ex. A-6 and A-7), all of which revealed that only 100
D hectares in the entire lands were private forest on the appointed date.
The final report Ex. A-7, Ex A-8 and A-9 (location sketches) also showed
the details of the survey by the forest officials. All these were produced
by the Commissioner. Also, the demarcated areas by the official
survey ascertained the extent by actual theodolite survey. The High Court
observed that all these showed only the disputed area marked as Bits 1-
E 7; the plan was also exhibited as Ex. C-3. The High Court took into
account the evidence of the then Range Officer (PW-1), the
Commissioner (PW-3), PW-4 & PW-5 – all of which pointed that the
disputed area covered by Ex. A-7 was plantation on the date when the
act came into force.
F 12. The High Court then relied on the full bench decision of the
Kerala High Court in Parameswara Sastrigal K.S. v. State of Kerala
& Ors. 22. That judgment observed that if the land vested in the
government as a private forest on the appointed date, the owner cannot
thereafter alienate or transfer or assign the land for certain. However, if
G it is not a private forest vested in the government there is no impediment
for the title holder to transfer the land. The Court also took note of the
judgment of this court in Bhawani Tea & Produce Co. Ltd. v. State of
Kerala & Ors.23 where it was observed that:

22
2008 2 ILR 371
H 23
1991 (2) SCC 463
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 555
[S. RAVINDRA BHAT, J.]

“The reverse question is involved in this case, namely if the A
land was not private forest but plantation under the M.P.P.F.
Act and was similarly not private forest but plantation on
10.5.1971, it could not, without anything more, become private
forest thereafter even though it was not under the same
efficient or successful plantation as it was earlier. Whether
B
the plantation yielded any crop or not was for the owners to
decide and not by the authorities under the Vesting Act, unless
it did make specific provisions to cover such a situation.”
13. Taking note of these circumstances the court concluded that
on the appointed date, except the area of 155.9 acres of land, the rest of
the lands covered by Ex. A-27 were not private forest but plantations C
falling within the exclusions under Section 2(f)(1)(i)(A) to (D) of the
Vesting Act. The High Court finally held that 1127.50 acres of land were
plantation and 100 hectares, i.e. 247 acres were private forest. Since
there was no claim with respect to 155.90 acres of land nor any proof
that it was converted into plantation on the appointed date, that extent D
was also held to vest in the state. However with respect to the rest, i.e.
1127.50 acres minus 155.90 acres of land, the appeal was
allowed and Ex.A-27 notification to that extent was set aside.
Submission of parties
14. Mr. Pallav Sisodia, learned senior counsel argued on behalf of E
the state that the impugned judgement requires interference as it is based
on a misappreciation of the facts on record. Learned counsel urged that
the primary onus to establish that the extent of land notified by the state
was not a private forest covered by the Vesting Act lies upon the party
or individual asserting it to be so. Thus, the burden lay upon F
the appellant before the High Court, i.e. Popular Estates to prove
that the entire extent of 1534.40 acres of land were in fact under
cultivation as plantation. Mr. Sisodia submitted that before 10.05.1971,
Popular Estates was not the owner of the forest land; two partnerships
had formed since the earlier partnership was dissolved by deed dated
07.01.1972 produced as Ex. A-41. In these circumstances Popular G
Estates was not entitled to maintain the original application since
the vesting took place on 10.05.1971 and therefore, as the subsequent
purchaser could not agitate with respect to the vesting. It was alleged
that the High Court principally relied on Ex A-50 and A-51
proceedings under the KLR Act or the determination of the Land Board H
556 SUPREME COURT REPORTS [2021] 11 S.C.R.

A to allow the appeal. In this regard, learned counsel stressed that the
decision of this court in Popular-II was clear that such determinations
by the Board for an entirely different purpose could not constitute res
judicata by giving undue weight to that piece of evidence and ignoring
that the other evidence led before the tribunal was utterly inadequate;
the appellant state urged that the High Court fell into error.
B
15. The State argued that the High Court erred in holding that Ex.
A-6 and A-7 showed that only 100 hectares were private forest. In this
respect, learned counsel highlighted the observations of the tribunal that
the said two documents do not prove the fact that the rest of the lands
were in fact cultivated with plantation crops. He also relied upon the
C deposition of PW-3 (Commissioner) who had stated that he could not
ascertain the planted areas, the number of plants or the age of such
plants in his first inspection and that he had confined his second inspection
to Plot numbers 1 to 7. Learned counsel emphasised that by Ex. A-6 and
A-7 the Commissioner had reported that a thick forest existed and had
D highlighted the need to conduct a detailed survey. It was urged that the
Commissioner had visited the area in December 1975, long after the
date of vesting, i.e. 10.05.1971 and therefore, the report was not
determinative. It was further argued that the High Court completely
ignored examining whether the plantations were registered under the
Coffee Act, the Rubber Act or the Cardamom Act which now fall within
E the purview of the Spices Board under the Spices Board Act, 1986 or
whether they had any valid registration in law. In these circumstances
there could have been no conclusive finding that plantations existed, as
was asserted by Popular Estates.
16. Learned counsel relied upon the pleadings made by Popular
F Estates in the earlier rounds of litigation, especially in the first writ petition
which had challenged the enactment of the Vesting Act, in which an
assertion was made that more than 1000 acres was forest area. He also
submitted that a comparison of the respondent’s pleadings clearly
showed that there were glaring inconsistencies in this regard. It was
G submitted that in the writ petition filed at the earliest point of time in
1971, the total plantation area mentioned was 923 acres and that 682.47
acres grasslands were leased for dairy purposes. According to that writ
petition, the total extent of land was 1589.47 acres. In another writ petition
filed subsequently, another version that the plantation area was only
228.55 acres was asserted, in relation to one block; 780.34 acres was
H leased out for dairy purposes. A total of 573.69 acres of balance land
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 557
[S. RAVINDRA BHAT, J.]

were mentioned out of which 194.44 acres were plantation in one area, A
and the entire plantation area in both parcels of land put together in this
writ petition did not exceed 425 acres. It was highlighted that if one took
into account these pleadings, a conflicting picture emerged. On an overall
analysis of the pleadings, the nature of oral testimony, over reliance on
the suspect testimony and the deposition of PW-1, a Forest range officer
B
who had no business to depose against the state and PW-5, whose
evidence did not inspire confidence with respect to the specifics regarding
the area of cultivation, could not have led the High Court to reasonably
conclude that 1127 acres were in fact cultivated, based upon on almost
similar finding of the land board. It was also urged that the High Court
failed to see that the burden of proving that the lands claimed by Popular C
Estates as not covered by forest, remained unproved and undischarged.
Consequently, the High Court, even on an independent analysis of the
evidence could not have allowed the appeal.
17. Mr Sisodia concluded his arguments by saying that the primary
objective of the Vesting Act is to ensure that large chunks of private D
forests held by a few individuals or entities, but which constituted valuable
economic resource which required redistribution in terms of Directive
Principles of State Policy, were made over to those sections of society
who did not own any land. The impugned judgement therefore failed in
noticing the salutary purposes of the Act by holding that Ex. A- 27 could
be upheld only to the extent of 155.90 acres and in setting aside the E
rest.
18. It was argued on behalf of the respondent, Popular Estates,
that the order of the High Court impugned in this case, should not be
interfered with. Mr K.V. Viswanathan, learned senior counsel appearing
on behalf of Popular Estates, argued that the judgement in Popular-II F
declared that even though the determinations of Boards could not be
treated as res judicata in proceedings under the Vesting Act,
nevertheless, they had to be given due weight. They carried credibility
as long as the basis of such decision indicated factual investigation and
the order was not under a cloud. In the present case too, there was no G
reason for the tribunal to doubt or question the Board’s findings.
Reiterating the nature of the KLR Act and the objectives of the Vesting
Act, it was submitted that both enactments observed common public
good, namely determination of either excess lands or uncultivated forest
lands, but not plantation; and ensuring redistribution to deserving
categories of persons. H
558 SUPREME COURT REPORTS [2021] 11 S.C.R.

A 19. Referring to the record, Mr. Vishwanathan argued that the
High Court took all evidence: oral and documentary, into consideration.
He stressed that not only the survey by the Commissioner, but also survey
conducted by Forest range officers and the report of such officials
confirmed that the entire area was inspected, and only those portions -
covered in Bits 1 to 7 - were found to be forest lands, and consequently
B demarcated. There was general agreement that the rest of the lands
were not forest land, but were cultivated for rubber, coffee and cardamom.
Learned counsel relied on Ex A-7, Ex A-8 and Ex. A-9 (location sketch)
and the commissioner’s sketch as well. The senior counsel further argued
that Ex. A-59 to A-64 proved that Popular Estates was earning agricultural
C income from the lands, much prior to the appointed date. These
documents also established that it maintained regular balance sheet, and
profit and loss accounts.
20. Popular Estates relied on the depositions of PW-1 and PW-5.
Commenting on the statement of PW-5, learned senior counsel urged
that the tribunal wrongly rejected his testimony. It was argued that he
D
was an employee, though not working as a Superintendent when he
joined in 1969, that alone could not have been a ground to reject his
evidence.
21. It was argued next that under Section 8A of the Vesting Act,
an appeal lay, as a matter of right, to the High Court against the order of
E the tribunal. In terms of Section 8A (3), the High Court could confirm
cancel, or set aside the decision of the tribunal appealed against, remand
the matter, or pass such orders as it deemed fit. In these circumstances,
the High Court had opportunity to undertake a full margin of appreciation
of the entire evidence and arrive at its own conclusions. In support of
this, learned counsel relied upon the judgment of this Court in State of
F
Kerala v ACK Rajah24 in which the Court had observed that in deciding
the appeal under Section 8A, the High Court has very wide powers
which are not hedged by any limitation. The High Court could, in any
given matter consider the correctness and propriety of the tribunal’s
view under appeal, which arose for its consideration; it could independently
G consider the evidence and satisfy itself whether the findings of the tribunal
and its conclusions were proper. It was contended that in these
circumstances, the view of the High Court based upon its overall
appreciation of the circumstances was sound and just and did not call
for interference.
24
H 1994 Supp. (3) SCC 250
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 559
[S. RAVINDRA BHAT, J.]

22. It was reiterated by the learned counsel that the decision in A
Kunjanom Antony (supra) and Popular Estates-II are binding on the
question of law that though the decision of the Land Board under the
KLR Act cannot be conclusive as res judicata, nevertheless it has
considerable evidentiary weight and that unless the contrary state of
affairs is shown, the Board’s order would have to be given due weight.
B
Therefore, since the Board’s order was not under cloud or under appeal,
prima facie, due weight had to be given. Unfortunately, the tribunal entirely
discarded the Board’s determination which was based on the appreciation
of the objective facts. Counsel highlighted that in the present case, the
inspection undertaken was in the context of assertions made in the mid-
1970s. The determination of the Board was decisive. Therefore, it had C
considerable evidentiary weight and could not be brushed aside as a
mere piece of paper.
23. It was urged that the preliminary and final report of the
Commissioner in the earlier proceedings instituted by Popular Estates in
1974 through its two applications were also earliest in point of time. The D
preliminary report, Ex. A-6 which was filed on 15.01.1976 shows that
there was extensive cultivation of coffee, cardamom, rubber, areca nut,
etc. Learned counsel invited the attention of this court to the concerned
documents. He submitted that the final report, Ex. A-7 furnished by the
Commissioner on 12.09.1977 recorded what was observed by the Forest
E
Range Officer, i.e. only that disputed portions in Bit Nos. 1 to 7 had been
demarcated and that the other areas were cultivated. The counsel
underlined that these reflected the true ground reality. Coupled with the
Range Officer’s memorandum (Ex.A-4) which was furnished before
the Commissioner on 01.09.1977, it was clear that the areas were
inspected in detail and that only those areas that vested with the F
government were demarcated by the survey party attached with the
Superintendent, Land Records.
24. It was urged that what was demarcated was only 100 hectares
and the other areas were not demarcated since they were cultivated.
This was endorsed in the final report, Ex. A-7. It was submitted that the G
possession with respect to 100 hectares of uncultivated forest lands was
also covered by draft statement of land dated 24.01.1979, Ex. A-50
which was furnished to the Board in proceedings under the KLR Act.
This document, Ex. A-50 was the basis for the Board’s order dated
04.11.1980 (Ex. A-51). These two confirmed that only 100 hectares
H
560 SUPREME COURT REPORTS [2021] 11 S.C.R.

A was vested forest. Furthermore, learned counsel submitted that an extent
of 533 acres was under cardamom cultivation; 120 acres under rubber
plantations; 257 acres under coffee plantation; 155.9 acres was forest
land; and 17.5 acres of roads and buildings. Given these circumstances,
the reliance by the High Court on these materials to conclude that only
100 hectares and 155.90 acres was forest land that vested with the state
B
and that the rest was under cultivation, is unexceptionable.
25. Learned counsel submitted that the tribunal fell into error in
rejecting the evidence of PW-1 - the Forest Range Officer, who gave
memorandum to the Commissioner on 01.09.1977. Somehow, the
proceedings in the tribunal and the evidence of this officer were always
C viewed in a coloured manner as was evident from the oft repeated phrase
of “magic money”, insinuating that PW-1 had been bribed. It was
submitted that there was no such suggestion to him nor was any material
placed on record that he was criminally prosecuted or proceeded with
departmentally. Learned counsel likewise submitted that the tribunal erred
D in overlooking and rejecting the evidence on record such as the auditor’s
balance sheets (Ex. A-57 to A-64) as well as the auditor’s deposition as
PW-4, and the deposition of the manager of Popular Estates (PW-5 -
who had worked since 1969, though not a Superintendent but later having
regard to these accounts). It was also highlighted that the title deeds of
the predecessor-in-interest of the partners of the Popular Estates who
E had acquired the lands in 1963 clearly showed that considerable areas
were shown as cardamon plantation. The Popular Estates had filed
agricultural income returns and even as on 1970, it was producing coffee,
rubber and cardamom. The fact that it had some labour trouble also
supported its contention that Popular Estates’ plantation activities were
F on in full scale.
Relevant provisions of law
26. Before proceeding with the discussion of merits of this case,
it would be necessary to extract the relevant provisions of law, which
the High Court took into consideration, and which the parties relied on.
G The first enactment relevant in this regard, is the Madras Act, of 1949.
It applied25, to private forests in the districts of Malabar and South Kanara
(now Dakshina Kannada district of Karnataka) having a contiguous area
of 100 acres or more. The Act also applied26to forests in estates, falling
25
Section 1 (2) (i)
H 26
Section 1 (2) (ii).
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 561
[S. RAVINDRA BHAT, J.]

under the Madras Estates Land Act, 1908. “Forest” was defined as A
including “waste or communal land containing trees and shrubs,
pasture land and any other class of land declared by the State
Government to be a forest by notification”27. By virtue of Section 3
(1), no owner of any forest could, without previous sanction of the District
Collector, sell, mortgage lease or “otherwise alienate the whole or
B
any portion of the forest.”
27. The second enactment in question, is the KLR Act. It defined 28
private forests as meaning:
“a forest which is not owned by the Government, but does
not include- C
(i) areas which are waste and are not enclaves within wooded
areas;
(ii) areas which are gardens or nilams;
(iii) areas which are planted with tea, coffee, cocoa, rubber, D
cardamom or cinnamon; and
(iv) other areas which are cultivated with pepper, areca nut,
coconut, cashew or other fruit-bearing trees or are cultivated
with any other agricultural crop;
E
Section 81 provided for exceptions, and enacted inter alia that
provisions of the chapter relating to vesting of excess did not apply to
private forests. The relevant parts of Section 81 are extracted below:
“81. Exemptions. - (1) The provisions of this Chapter shall
not apply to - F
(a) lands owned or held by the Government of Kerala or the
Government of any other State in India or the Government of
India or a local authority or the Cochin Port Trust or any
other authority which the Government may, in public interest,
exempt, by notification in the Gazette, from the provisions of G
this Chapter.
********** ************
*********
27
Section 2 (a)
28
By Section 2 (47) H
562 SUPREME COURT REPORTS [2021] 11 S.C.R.

A (b) lands taken under the management of the Court of Wards:
Provided that the exemption under this clause shall cease to
apply at the end of three years from the commencement of
this Act;
(c) lands comprised in mills, factories or workshops and which
B are necessary for the use of such mills, factories or workshops;
(d) private forests;
(e) plantations;
(f) cashew estate
C Explanation. - For the purpose of this clause “cashew estate”
shall mean dry land principally cultivated with not less than
150 cashew trees per hectare.]
(g)****** **********
*******”
D 28. By Section 2 (a) of the Vesting Act, 10.05.1971 was deemed
as the “appointed date.” Section 2(f) of the Vesting Act defined
“private forest” in the following terms:
“(f) “private forest” means-
(1) in relation to the Malabar district referred to in subsection
E (2) of Section 5 of the States Reorganisation Act, 1956 (Central
Act 37 of 1956)-
(i) any land to which the Madras Preservation of Private
Forest Act, 1949 (Madras Act XXVII of 1949), applied
immediately before the appointed day excluding-
F (A) lands which are gardens or nilams as defined in the Kerala
Land Reforms Act, 1963 (1 of 1964);
(B) lands which are used principally for the cultivation of
tea, coffee, cocoa, rubber, cardamom or cinnamon and lands
used for any purpose ancillary to the cultivation of such crops
G or for the preparation of the same for the market.
Explanation.-Lands used for the construction of office
buildings, godowns, factories, quarters for workmen,
hospitals, schools and playgrounds shall be deemed to be
lands used for purposes ancillary to the cultivation of such
H crops;
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 563
[S. RAVINDRA BHAT, J.]

(C) lands which are principally cultivated with cashew or A
other fruit bearing trees or are principally cultivated with
any other agricultural crop and
(D) sites of buildings and lands appurtenant to and necessary
for the convenient enjoyment or use of, such buildings;
B
(ii) any forest not owned by the Government, to which the
Madras Preservation of Private Forest Act, 1949 did not
apply, including waste lands which are enclaves within
wooded areas.
(2) in relation to the remaining areas in the State of Kerala, C
any forest not owned by the Government, including waste
lands which are enclaves within wooded areas.
Explanation.- For the purposes of this clause, a land shall be
deemed to be a waste land notwithstanding the existence
thereon of scattered trees or shrubs.” D
29. Section 2 (1) (f) of the Vesting Act defines “private forest”, in
relation to Malabar District. Section 2(f)(1)(i) says that “private forest”
means any land to which the Madras Act applied immediately before
the appointed day, viz., 10.05.1971. It thereafter, enacts that certain lands
are excluded from the definition of “private forest” falling under sub- E
clauses (A) to (D). Lands, which are gardens or nilams (defined in the
KLR Act, 1963), are excluded from the definition of “private forest”
under the Vesting Act under sub-clause (A). Likewise, lands used
principally for the cultivation of tea, coffee, cocoa, rubber, cardamom or
cinnamon and lands used for any purpose ancillary to the cultivation of
such crops or for the preparation of the same for the market are excluded F
from the definition of “private forest” by reason of sub-clause (B).
Explanation to Section 2 (1) (i) (B) further showed that lands used for
the purpose of construction of office buildings, go-downs, factories,
quarters for workmen, hospitals, schools and playgrounds were deemed
to be lands used for purposes ancillary to the cultivation of such crops. G
Therefore, Section 2 (1) (i) (B) evidences that lands used principally for
cultivation of certain crops and lands used for construction of buildings
for the purpose of running and maintaining a plantation are excluded
from the definition of “private forest”. Section 3 of the Vesting Act under
which private forests were to vest in the Government said:
H
564 SUPREME COURT REPORTS [2021] 11 S.C.R.

A “3. Private forests to vest in Government. -(1) Notwithstanding
any thing contained in any other law for the time being in
force, or in any contract or other document, but subject to
the provisions of sub-section (2) and (3), with effect on and
from the appointed day, the ownership and possession of all
private forests in the State of Kerala shall by virtue of this
B
Act, stand transferred to and vested in the Government free
from all encumbrances, and the right, title and interest of the
owner or any other person in any private forest shall stand
extinguished.
(2) Nothing contained in sub-section (1) shall apply in respect
C of so much extent of land comprised in private forests held by
an owner under his personal cultivation as is within the ceiling
limit applicable to him under the Kerala Land Reforms Act,
1963 [1 of 1964] or any building or structure standing
thereon or appurtenant thereto. Explanation. For the
D purposes of this sub-section, ‘cultivation’ includes cultivation
of trees or plants of any species.
(3) Nothing contained in sub-section 1 shall apply in respect
of so much extent of private forests held by an owner under a
valid registered document of title executed before the appointed
E day and intended for cultivation by him, which together with
other lands held by him to which Chapter III of the Kerala
Land Reforms Act, 1963, is applicable, does not exceed the
extent of the ceiling area applicable to him under section 82 of
the said Act.

F (4) Notwithstanding anything contained in the Kerala Land
Reforms Act, 1963, private forests shall, for the purposes of
sub-section (2) or sub- section (3), be deemed to be lands to
which chapter III of the said Act is applicable and for the
purposes of calculating the ceiling limit applicable to an
owner, private forests shall be deemed to be ‘other dry lands’
G specified in Schedule II to the said Act.”
30. Section 4 of the Vesting Act provided that private forests after
being vested in the state were to be deemed to be reserved forests, and
Section 5 provided for eviction of persons in unauthorised occupation of
any such private forest. Section 6 provided for demarcation of boundaries
H of the private forests vested in the government by the Custodian.
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 565
[S. RAVINDRA BHAT, J.]

Analysis and Conclusions A
31. The definition of private forest given in Section 2(f) of the
Vesting Act and Section 2(47) of the KLR Act were considered by this
court in Gwalior Rayons Silk Mfg. (Wvg.) Ltd v. The Custodian of
Vested Forests, Palghat & Anr29. The lands involved in that case were
forests as defined in the Madras Act and continued to be so when the B
Vesting Act came into force in 1971. It was observed that the definition
of private forests applicable to the Malabar district was not general in
terms but limited to the area and lands to which the Madras Act applied,
and exempted therefrom land described under sub-clause (A) to (D). It
was held that the previous decision of this court in Malankara Rubber
& Produce Co. v. State of Kerala & Ors.30 and the earlier decision in C
State of Kerala v. Gwalior Rayons Silk Mfg. (Wvg.) Ltd31 (supra)was
a
“ a judicial recognition of the distinction between private
forest in Travancore-Cochin area in Kerala State and the
private forest in Malabar district. This distinction by itself is D
sufficient to dispel the anomalies suggested by counsel for
the appellant. Look at the definition. Sub-clause (A) refers to
gardens or nilams as defined in the KLR Act. ‘Garden’ means
lands used principally for growing coconut trees, arecanut
trees or pepper vines or any two or more of the same. ‘Nilam’
means lands adapted for the cultivation of paddy. Sub-clause E
(B) deals with what may be called plantation crops, cultivation
of which in the general sense would be cultivation of
agricultural crops. Such agricultural crops are by name
specified. Lands used for any purpose ancillary to such
cultivation or for preparation of the same for the market are F
also included thereunder. Next follows sub-clause (C). It first
refers to lands which are principally cultivated with cashew
or other fruit-bearing trees. It thus refers to only the fruit
beating trees. It next refers to ‘lands which are principally
cultivated with any other agricultural crop. If the legislature
had intended to use the term ‘agricultural crop’ in a wide G
sense so as to take within its fold all species of trees fruit-
beating or otherwise, it would be unnecessary to have the
29
1990 (Supp) SCC 785
30
[1973] 1 SCR 399
31
[1974] 1 SCR 67 1 H
566 SUPREME COURT REPORTS [2021] 11 S.C.R.

A first limb denoting only the cashew or other fruit-beating trees.
It may be significant to note that the Legislature in each sub-
clause (A) to (C) has used the words to identify the different
categories of crops or trees. The words used in every sub-
clause too have “associations, echoes and overtones”.
B 32. In Bhavani Tea & Produce Co. Ltd (supra) this court had to
consider the correct method of determining what is a private forest,
under the Vesting Act; the determination made was in connection with
the interplay of provisions of the other enactments, i.e. the KLR Act,
and the Madras Act. It was held as follows:
“Division into plots was done by the Commissioner as he
C found these plots to have been different and the demarcation
was of compact areas with few isolated areas, and such a
demarcation was contemplated under the Act. It was pointed
out that the company also contested the case on plot-by-plot
basis. The Tribunal as well as the High Court also proceeded
D on that basis. It is pointed out the company objected to the
principle of division before the High Court but did not
question the correctness of the actual division made and hence
the High Court could decide only on plot-by-plot basis. We
have no difficulty in holding that the forest area is generally
described or notified with reference to land in forest laws.
E But that does not mean that what stood on the land has to be
ignored, particularly in case of plantations which were
exempted under the M.P.P.F.Act.
While we are not inclined to agree that the entire estate of the
company was required to be taken as one whole, we find it
F difficult to agree that wherever some forest was found inside
the company’s estate the Vesting Act would apply. We find
that the M.P.P.F. Act, the Kerala Forest Act, the Kerala Land
Reform Acts considered the plantations as units by providing
that they would include the land used for ancillary purposes
as well. Therefore, while applying the Vesting Act to such
G plantations the same principle would be applicable.”
33. The correct manner of interpreting the interplay between the
Madras Act and the Vesting Act, was explained lucidly in the judgment
of this court in State of Kerala v. Pullangode Rubber & Produce Co.
Ltd32. This court observed that:
H 32
(1999) 6 SCC 92
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 567
[S. RAVINDRA BHAT, J.]

“8. It is necessary first, we think, to construe the definition A
of “private forest” in the said Act. It means, as aforestated, in
relation to the erstwhile Malabar District of the State of
Madras, land to which the Madras Preservation of Private
Forests Act applied immediately before 10-5-1971, being the
appointed day under the said Act, but excluding, inter alia,
B
“lands which are used principally for the cultivation of tea,
coffee, cocoa, rubber, cardamom or cinnamon and lands used
for any purpose ancillary to the cultivation of such crops or
for the preparation of the same for the market”.
Such lands so used are, therefore, not private forests within C
the meaning of the said Act. Now what this means is that the
lands in Malabar District aforementioned which are used (a)
principally for the cultivation of tea, coffee, cocoa, rubber,
cardamom or cinnamon, (b) for any purpose ancillary to the
cultivation of such crops, and (c) for the preparation of such
crops for the market are not private forests under the said D
Act. The use of the words “are used” in this context necessarily
refers to such use as on the appointed date under the said
Act, namely, 10-5-1971. It is not possible to give any other
meaning to the words “are used”. They must relate to use on
that particular day for it is on that day that land is or is not a E
private forest within the meaning of the said Act.”
34. The state’s contention that as Popular Estates had mentioned
in its petition that a certain area was forest (since it was so, by virtue of
provisions of the Madras Act) therefore, does not preclude the latter’s
contention that no vesting could take place; whether the lands were F
“forest” or cultivated plantations or estates, for the purposes of Section
2(f)(1)(i)(B) of the Vesting Act, especially whether they stood excluded
from operation of that Act, had to be considered independently.
35. The judgment in Kunjanam Antony (supra) enunciated the
rule that where the Land Board arrives at a determination about the G
character of lands, under the KLR Act, that becomes a piece of evidence
for the purposes of the Vesting Act. It was observed that:
“There can be no doubt that the order of the Thaluka Land
Board, a statutory authority, is binding on the authorities
under the Land Reforms Act. So far as the proceedings under
H
568 SUPREME COURT REPORTS [2021] 11 S.C.R.

A the Forest Act are concerned, the order of the Thaluka Land
Board would be a piece of evidence but it cannot be treated
as a binding on the authorities under the Forest Act. Unless
a contrary state of affairs is shown to exist, the order of the
Thaluka Land Board would have to be given due weight. From
the material placed before the High Court and also before
B
us, it appears that there is no evidence in regard to the
destruction of the rubber plantation due to fire. There is,
however, material to show that the appellant has been
cultivating tapioca. Further, the High Court recorded a finding
that there was no evidence indicating that the appellant had
C intention to cultivate the land which only meant cultivation of
rubber plantation. There is also nothing on record to show
that absence of rubber plantation was for short period and
that the land was in the process of rubber plantation.”
36. Apart from this court’s judgment in Popular II, another recent
D judgment, in State of Kerala v. Mohammed Basheer33 has also followed
the rule in Kunjanam Antony. Therefore, it is no longer open for the
state to argue that the Board’s determination or order, had little or no
evidentiary value. In view of the judgments of this court, including Popular
II, the enunciation of the principle that “unless a contrary state of
affairs” were shown to exist, the Board’s order “would have to be
E given due weight” had to apply, and was correctly invoked by the High
Court.
37. Coming to the facts of this case, what can be seen is that the
two reports: preliminary and final, filed by the Commissioner, in the first
proceeding (instituted by Popular Estates in 1974 by two applications)
F were the nearest in point of time, to the appointed date. The preliminary
report, Ex. A-6 (filed on 15.01.1976) discloses widespread cultivation of
coffee, cardamom, rubber, areca nut, etc. The two reports are part of
the record. Ex. A-7 by the Commissioner, i.e. the final report dated
12.09.1977 recorded that the Forest Range Officer, after inspection stated
G that “only disputed portions in Bit Nos. 1 to 7 had been demarcated
and that the other areas were cultivated”. The respondents contention
was that this reflected the true factual position, coupled with the Range
Officer’s memorandum (Ex. A-4) filed before the Commissioner on
01.09.1977.
33
H (2019) 2 SCC 260
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 569
[S. RAVINDRA BHAT, J.]

38. A combined reading of these materials, leads one to infer that A
a detailed inspection of the area took place. Only those areas that vested
with the government were demarcated by the survey party, attached
with the Superintendent, Land Records. It was in these circumstances
that the respondent successfully urged before the High Court that what
was demarcated was only 100 hectares and the others were not
B
demarcated since they were cultivated. This was borne out by Ex. A-7,
the final report. The possession with respect to 100 hectares of
uncultivated forest lands was also covered by draft statement of land
(Ex. A-50, dated 24.01.1979) furnished to the Board in proceedings under
the KLR Act. Ex. A-50 was the foundation for the Board’s order dated
04.11.1980 (Ex. A-51). Both these documents confirmed that 100 hectares C
was vested forest. Popular Estates had submitted that 533 acres was
under cardamom cultivation; 120 acres under rubber plantation; 257 acres
under coffee plantation and that 155.9 acres was forest land; and 17.5
acres of were comprised of roads and buildings. These arguments found
favour with the High Court. In our considered opinion, there is no glaring
D
error in the impugned judgment, having regard to these circumstances.
39. The tribunal entirely rejected the evidence of PW-1, the Forest
Range Officer, who gave the memorandum to the Commissioner on
01.09.1977. The tribunal wholly discredited and brushed aside the
evidence of this officer and viewed it with suspicion. This is clear from E
the repeated use of the phrase “magic money” suggesting that PW-1
was devious and had been bribed. A reading of his deposition shows no
such suggestion to him; no material was placed on record that he was
prosecuted for an offence, nor were departmental proceedings initiated,
for misconduct.
F
40. The other materials on record (the auditor’s balance sheets,
Ex. A-57 to A-64) the evidence of the auditor (PW-4), the deposition of
the manager of the respondent/ Popular Estates, PW-5, who had worked
since 1969 onwards reinforce the respondent’s contentions that the largest
part of the area was cultivation for plantation crops. The tribunal, in this
court’s opinion unreasonably discarded these materials. G

41. The other documents, i.e. Ex. A-66, Settlement arrived at
between Popular Estates and its workers after closure on 25.6.1982
reveal that it had 80 permanent workers and 29 temporary workers on
its rolls. Likewise, copies of income tax returns for various dates showed
H
570 SUPREME COURT REPORTS [2021] 11 S.C.R.

A that income from these estates was consistently reported, along with
expenditure. For the year ending on 31.3.1968 income was reported as
` 81,319; for the year ending 31.3.1969 it was ` 95,707/-; the year ending
31.3.1970 it was ` 1,12,524; and for the year ending 31.3.1971 it was
`1,38,918. The respondent Popular Estates was apparently depositing
agricultural income tax and employees provident fund (Ex. A-67, A-69
B
and A-70). It had produced correspondence with these statutory
authorities, as well as sales tax returns (Ex. A-71).
42. The title deeds of the predecessor-in-interest of the partners
of the Popular Estates who had acquired the lands in 1963, show that
large areas were shown as cardamon plantation. Popular Estates had
C
filed agricultural income returns and even in 1970, it was producing coffee,
rubber and cardamom. The fact that it had some labour trouble also
supported its contention that Popular Estates’ plantation activities were
on in full scale. All these materials, in the opinion of the court, support
the conclusions of the High Court, which are based on plausible (and not
D an unreasonable) inference of the overall analysis of the evidence on
the record.
43. There is some authority for the proposition that where two
plausible views on the conclusions that can be drawn from facts on the
record exist, this court, in exercise of its discretionary jurisdiction under
E Article 136 of the Constitution would not interfere with the findings of
the High Court. It has been observed in Pritam Singh v. The State34,
this Court observed that:
“On a careful examination of Article 136 along with the
preceding article, it seems clear that the wide discretionary
F power with which this Court is invested under is to be exercised
sparingly and in exceptional cases only, and as far as possible
a more or less uniform standard should be adopted in granting
special leave in the wide range of matters which can come up
before it under this article.”
G Similar observations were made in Tirupati Balaji Developers
Pvt. Ltd. v. State of Bihar35. In Jamshed Hormusji Wadia v. Board of
Trustees, Port of Mumbai36, this Court observed that-
34
1950 SCR 453
35
(2004) 5 SCC 1
36
H (2004) 3 SCC 214
STATE OF KERALA v. M/S POPULAR ESTATES (NOW DISSOLVED) 571
[S. RAVINDRA BHAT, J.]

“The discretionary power of the Supreme Court is plenary in A
the sense that there are no words in Article 136 itself qualifying
that power. The very conferment of the discretionary power
defies any attempt at exhaustive definition of such power. The
power is permitted to be invoked not in a routine fashion but
in very exceptional circumstances as when a question of law
B
of general public importance arises or a decision sought to
be impugned before the Supreme Court shocks the conscience.
This overriding and exceptional power has been vested in
the Supreme Court to be exercised sparingly and only in
furtherance of the cause of justice in the Supreme Court in
exceptional cases only when special circumstances are shown C
to exist.”
44. Likewise, in Union of India v. Gangadhar Narsingdas
Agarwal & Anr37 this court, declining to interfere with the order of the
High Court in exercise of its power under Article 136 of the Constitution,
said that even if two views are possible, the view taken by the High D
Court being a plausible one, it would not call for intervention by this
court. A similar view was expressed in Jai Mangal Oraon v. Mira
Nayak (Smt) & Ors38, wherein this court held that when there was
nothing illegal and wrong in the reasoning and conclusions arrived at by
the High Court and it appeared to be merited and in accordance with the E
interpretation of statutory provisions, this court would not interfere with
the order of the High Court under Article 136 of the Constitution. In
Taherakhatoon (D) By Lrs. v. Salambin Mohammad 39, this Court at
observed as follows:
“In view of the above decisions, even though we are now F
dealing with the appeal after grant of special leave, we are
not bound to go into merits and even if we do so and declare
the law or point out the error- still we may not interfere if the
justice of the case on facts does not require interference or if
we feel that the relief could be moulded in a different fashion.” G
45. This court has carefully considered the findings of the High
Court while setting aside the order of the tribunal. The reasons which
37
(1997) 10 SCC 305
38
(2000) 5 SCC 141
39
(1992) 2 SCC 635 H
572 SUPREME COURT REPORTS [2021] 11 S.C.R.

A led the High Court to conclude that the tribunal’s findings called for
interference are merited and in accord with the material evidence on
record. This Court is therefore of the opinion that no interference with
the impugned judgment of the High Court is called for. The appeal is
therefore, dismissed, without order on costs.
B
Nidhi Jain Appeal dismissed.

C

D

E

F

G

H