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Supreme Court of India

STATE OF UTTARAKHAND & ORSversusGURU RAM DAS EDUCATIONAL TRUST SOCIETY

Citation
2012 INSC 405
Decided
18 September 2012
Disposal
Dismissed

Holding

The expression "any person" in Section 154(1) refers only to a natural person and does not include a charitable trust, rendering the notice under Sections 166 and 167 invalid.

Summary

The State of Uttarakhand challenged the Assistant Collector's notice under Sections 166 and 167 of the U.P. Zamindari Abolition and Land Reforms Act, 1950, which declared 1.626 hectares of land transferred to the Guru Ram Das Educational Trust Society as excess and vested in the State. The High Court had held that the provisions of Section 154 did not apply to the charitable trust and set aside the notice. On appeal, the Supreme Court examined whether the phrase "any person" in Section 154(1) includes a charitable trust. It observed that the phrase is followed by "his family", which is defined to refer only to natural persons, and that a 1997 amendment was required to bring cooperative societies within the definition, indicating that legal persons were originally excluded. Consequently, the Court concluded that a charitable institution is not covered by "any person" and the notice was unjustified. The appeal was dismissed, leaving the High Court's order undisturbed.

Issues considered

  • Whether the expression "any person" in Section 154(1) of the U.P. Zamindari Abolition and Land Reforms Act, 1950 includes a charitable trust (legal person) for the purpose of applying the land‑ceiling restriction.

Legislation cited

Subjects

U.P. Zamindari Abolition and Land Reforms ActSection 154 interpretationany personcharitable trustland ceilingnatural person vs legal personnotice under sections 166 and 167property law

Judgment

                     [2012] 7 S.C.R. 1133


             STATE OF UTTARAKHAND & ORS.                           A
                               v.
    GURU RAM DAS EDUCATIONAL TRUST SOCIETY
           (Civil Appeal No. 6621 of 2012)

                   SEPTEMBER 18, 2012
                                                                   B
          [R.M. LODHA AND ANIL R. DAVE, JJ.]

     U. P. ZAMINDARI ABOLITION AND LAND REFORMS
ACT, 1950:
                                                                   c
     ss. 154(1), 166 and 167 - Notice u/ss 166 and 167 to
transferee-Educational Trust in respect of a portion of land
transferred to it by Bhumidhar - Held: Keeping in view the
definition of 'family' in the Explanation, the term 'any person'
in sub-s. (1) of s. 154 refers to a natural person and not a       D
'charitable institution' and, as such, the notice u/ss 166 and
167 issued to Educational Trust was not justified.
     A notice u/ss 167 and 167 of the U.P. Zamindari
Abolition and Land Reforms Act, 1950 was issued to the
respondent-Educational Trust in respect of 1.626                   E
hectares out of 6.785 hectares of land transferred to it by
the Bhumidhar. Ultimately, the Assistant Collector by his
order dated 27 .1.2006 held 1.626 hectares of land as
surplus. The revision filed by the respondent was
dismissed by the Commissioner. However, the writ                   F
petition of the respondent was allowed by the Single
Judge of the High Court.
    In the instant appeal filed by the State, the question
for consideration before the Court was: "whether a
charitable trust is covered by the expression 'any person'         G
occurring ins. 154(1) of the 1950 Act."
    Dismissing the appeal, the Court
    HELD: 1.1 The expression used in s.154(1) is "to any
                             1133                                  H
    1134   SUPREME COURT REPORTS             [2012] 7 S.C.R.


A person where the transferee shall, as a result of such
  sale or gift, become entitled to land which together with
  land, if any, held by his family will in the aggregate,
  exceed 5.0586 hectares (12.50 acres) in Uttar Pradesh."
  A close look at the expression would show that the
B Legislature intended to cover only natural person. It is so
  because the words 'any person' are followed in the
  sentence by the words 'his family'. 'Family' is explained
  in the Explanation appended to s.154 which means the
  transferee, his or her wife or husband, as the case may
c be, and minor children and where transferee is a minor,
  his or her parents. This makes it clear that a legal person
  is not intended to be included in the expression 'any
  person'. The word 'person', in law, may include both a
  natural person and a legal person. Sometimes it is
  restricted to the former. Having regard to the text of
0
  s.154(1) and also the scheme of that provision, there
  remains no doubt that the expression 'any person' refers
  to a natural person and not a legal person. [Para 10)
  [1137-D-G]
E     1.2 Further, in 1997, the Legislature inserted
  Explanation by U.P. Act No. 20 of 1997 declaring that in
  sub-s. (1), the expression 'person' shall include and be
  deemed to have been included on June 15, 1976 a 'Co-
  operative Society'. Had the expression 'person' included
F legal person, no explanation was necessary. [Para 10)
  [1137-H; 1138-A-B]
       1.3 Accordingly, as it must be held that a 'charitable
  institution' is not included within the meaning of the
  expression 'any person' occurring in s.154 of the 1950 Act
G and, therefore, the Assistant Collector was not justified
  in issuing notice to the respondent u/ss 166 and 167 of
  the 1950 Act. [Para 11) [1138-C-D]
      CIVIL APPELLATE JURISDICTION : Civil Appeal No.
H 6621 of 2012.
   STATE OF UTTARAKHAND v. GURU RAM DAS                      1135
         EDUCATIONAL TRUST SOCIETY

    From the Judgment and Order dated 05.09.2008 of the               A
High Court of Uttarakhand at Nainital in Writ Petition (MS) No.
1642 of 2006.

     Rachana Srivastava, Utkarsh Sharma for the Appellants.

     Shanti Bhushan, Sushendra K. Chauhan, Suman Gupta,               B
Dr. Vipin Gupta for the Respondent.

     The Judgment of the Court was delivered by

     R.M. LODHA, J. 1. We have heard Ms. Rachana                      C
Srivastava, learned counsel for the petitioners, and Mr. Shanti
Bhushan, learned senior counsel for the respondent.

     2. Delay condoned.

     3. Leave granted.                                                D
      4. The controversy in this Appeal, by special leave, is in
respect of land admeasuring 1.626 hectares situate in village
Chalang, Dehradun out of 6. 785 hectares which was transferred
by the Bhumidhar to respondent, Guru Ram Das Educational
Trust Society in 1992. A notice under Sections 166 and 167            E
of the U.P. Zamindari Abolition and Land Reforms Act, 1950
(for short, '1950 Act') was issued by the Assistant Collector
First Class/Sub Divisional Magistrate, Dehradun to the
respondent to show cause why the said land should not be
entered into the revenue records in the name of the State             F
Government and possession of the same be taken forcibly as
the transfer in its favour was void. In response to the notice, the
respondent filed its objections and set up diverse grounds. One
of the objections raised by the respondent was that there was
no prohibition under Section 154 of the 1950 Act on transfer          G
by way of sale to a charitable trust for charitable purpose.

     5. The Assistant Collector overruled the objections and, by
his order dated January 27, 2006, came to the conclusion that
the respondent held 1.626 hectares in excess of the                   H
    1136    SUPREME COURT REPORTS                   [2012] 7 S.C.R.


A permissible limit and declared that the excess land
  admeasuring 1.626 hectares shall vest in the State
  Government.

         6. Against the order of the Assistant Collector, the
    respondent filed a revision application before the
8
    Commissioner, Garhwal Division. The revisional authority
    dismissed the revision application preferred by the respondent
    Trust.

       7. Not satisfied with the orders of the Assistant Collector
C and Commissioner, the respondent challenged these orders in
  a Writ Petition ®fore the High Court of Uttarakhand. The single
  Judge of the High Court allowed the Writ Petition principally on
  the ground that the subject land was being used for non
  agricultural purpose for more than ten years and declaration
D under Section 143 of the 1950 Act was not necessary. He
  further held that the provisions of Section 154 were not
  applicable and, accordingly, quashed and set aside the orders
  of the Commissioner and Assistant Collector. It is against this
  order that the State of Uttaranchal (Now, Uttarakhand) and its
E functionaries have come up in appeal by special leave.

         8. Section 154 of the 1950 Act, as it stood at the relevant
    time, read as under :-

        "Section 154. Restriction on transfer by a bhumidhar.- (1)
F       Save as provided in sub-section (2), no bhumidhar shall
        have the right to transfer by sale or gift, any land other than
        tea gardens to any person where the transferee shall, as
        a result of such sale or gift, become entitled to land which
        together with land, if any, held by his family will in the
G       aggregate, exceed 5.0586 hectares (12.50 acres) in Uttar
        Pradesh.

        (2) Subject to the provisions of any other law relating- to
        the land tenures for the time being in force, the State
        Government may, by general or special order, authorise
H
  STATE OF UTTARAKHAND v. GURU RAM DAS 1137
 EDUCATIONAL TRUST SOCIETY [R.M. LODHA, J.]

    transfer in excess of the limit prescribed in sub-section (1)     A
    if it is of the opinion that such transfer is in favour of a
    registered co-operative society or an institution
    established for a charitable purpose, which does not have
    land sufficient for its need or that the transfer is in the
    interest of general public.                                       B

    Explanation.- For the purposes of this section, the
    expression 'family' shall mean the transferee, his or her
    wife or husband (as the case may be) and minor children,
    and where the transferee is a minor also his or her               C
    parents."

     9. The question before us is - Whether a charitable trust
is covered by the expression 'any person' occurring in Section
154( 1) of the 1950 Act?
                                                                      D
     10. It may be immediately noticed that the expression used
in Section 154(1) is ".... to any person where the transferee
shall, as a result of such sale or gift, become entitled to land
which together with land, if any, held by his family will in the
aggregate, exceed 5.0586 hectares (12.50 acres) in Uttar
                                                                      E
Pradesh." (emphasis supplied) A close look at the above
expression would show that the Legislature intended to cover
only natural person. It is so because the words 'any person' are
followed in the sentence by the words 'his family'. 'Family' is
explained in the explanation appended to Section 154 which
                                                                      F
means the transferee, his or her wife or husband, as the case
may be, and minor children and where transferee is a minor,
his or her parents. This makes it clear that a legal person is
not intended to be included in the expression 'any person'. The
word 'person', in law, may include both a natural person and a
legal person. Sometimes it is restricted to the former. Having        G
regard to the text of Section 154(1) and also the scheme of that
provision, there remains no doubt that the expression 'any
person' refers to a natural person and not an artificial person.
This is fortified by the fact that in 1997 the Legislature inserted
Explanation by U.P. Act No. 20 of 1997 declaring that in sub-         H
    1138    SUPREME COURT REPORTS                 (2012] 7 S.C.R.


A section (1) the expression 'person' shall include and be deemed
  to have been included on June 15, 1976 a 'Co-operative
  Society'. Had the expression 'person' included artificial person,
  no explanation was necessary. Since the expression 'person'
  in Section 154 did not include legal or artificial person, the
B Legislature brought in Co-operative Society by way of an
  Explanation. The Explanation came to be added in 1997 in a
  declaratory form to retrospectively bring 'Co-operative Society'
  within the meaning of expression 'any person'.

       11. Accordingly, we hold, as it must be held, that a
C 'charitable institution' is not included within the meaning of the
  expression 'any person' occurring in Section 154 of the 1950
  Act and, therefore, the Assistant Collector was not justified in
  issuing notice to the respondent under Sections 166 and 167
  of the 1950 Act.
D
       12. Though we are not in agreement with the reasoning of
  the High Court fully, but in view of what we have indicated above,
  no interference is called for in the impugned order.

E        13. Appeal is, accordingly, dismissed. No order as to
    costs.

    R.P.                                       Appeal dismissed.


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