Supreme Court of India
STATE OF WEST BENGALversusSINGELL TEA AND AGRICULTURAL INDUSTRIES LIMITED AND ORS.
- Citation
- 1993 INSC 135
- Decided
- 31 March 1993
- Disposal
- Disposed off
- Bench
- KULDIP SINGH
Holding
The Collector had no jurisdiction to terminate the tenancy without a statutory summary settlement, and possession must be restored to the company upon payment of arrears at Rs 8,769.24 per year and execution of a long‑term lease.
Summary
The State of West Bengal issued a notification under the West Bengal Estates Acquisition Act, 1953 covering the tea garden of Singell Tea and Agricultural Industries Ltd., and the Revenue Officer assessed rent. The company contended it was not an intermediary and the land was free‑hold, challenging the officer’s jurisdiction and the rent fixed at Rs 8,769.24 per year (originally Rs 2,375.94). After the High Court stayed the rent order, the Collector served a notice under Section 106 of the Transfer of Property Act and took possession of the garden, later handing it to the West Bengal Tea Development Corporation. The company filed a writ petition; the High Court ordered the State to restore possession to the company. The State and the Corporation appealed, arguing the Collector had authority to terminate tenancy. The Supreme Court held that the Collector lacked jurisdiction to terminate the tenancy without a summary settlement order under the West Bengal Estates Acquisition Rules and that possession should be restored to the company upon payment of arrears at the higher rent rate and execution of a long‑term lease. The appeals were disposed of, leaving the High Court’s order intact.
Issues considered
- The Collector’s jurisdiction to terminate the tenancy and take possession under Section 106 of the Transfer of Property Act when the rent assessment order was stayed.
- Whether a summary settlement order under Schedule F of the West Bengal Estates Acquisition Rules, 1954 was required before terminating the tenancy.
- Whether the tea garden, claimed as free‑hold, fell within the definition of an ‘intermediary’ under the West Bengal Estates Acquisition Act, 1953 and was subject to rent assessment under Section 42(2).
- The quantum of rent arrears payable and the conditions for restoring possession.
Legislation cited
- Code of Civil Procedures. 115, s. Order 41 Rule 19
- Transfer of Property Act, 1882s. 106
- West Bengal Estates Acquisition Act, 1953s. 4, s. 42(2), s. 44(3), s. 5, s. 6
- West Bengal Estates Acquisition Rules, 1954s. Schedule F
Subjects
West Bengal Estates Acquisition Actrent assessmenttenancy terminationsummary settlementtea gardenTransfer of Property Actleasefreehold landintermediarypossession
Judgment
~
STATE OF WEST BENGAL A
v.
SINGELL TEA AND AGRICULTURAL INDUSTRIES LIMITED
AND ORS.
'-., MARCH 31, 1993
B
. (KULDIP SINGH AND N.M. KASLIWAL, JJ.)
- West Bellgal Estates Acquisition Act, 1953: Sections 4, 5, 6, 44(3rTea
Estate-Acquisition of-Notice issued for assessmelll of rel!t-Resisted on the
c
groul!ds that the estate was !lot i11tem1ediary and that tea gardell was on
free-hold lalld-Tem1illatio11 of tellallcy-Order passed by the Co/lee-
ro,--Jurisdiction and validity of the order.
The appellant-State issued a notification under section 4 of the West
Bengal Estates Acquisition Act, 1953 covering the land comprised in the D
tea garden of the respondent-company. The Revenue Officer issued notices
to the respondent-company initiating proceedings for assessment of rent.
The Company objected stating that it was not an intermediary within the
meaning of the Act and since its tea estate comprised of free- hold land,
the Revenue Officer had no jurisdiction to assess the rent under Section
42(2) of the Act. The .Revenue Officer rejected the contention and fixed the E
rent at Rs.2,375.94 per year. On revision preferred by the State, the
Revenue Officer determined the rent at Rs.8, 765.24 per year.
--- The Company preferred appeals before the Tribunal. The appeals
were dismissed in default and the restoration applications ~ere also F
rejected. Thereafter, the Company preferred applications before the High
~ Court under Section 115 CPC read with Article 227 of the Constitution for
restoration of the two appeals, and obtained stay of the operation of the
Revenue Ofticer's order. During the pendency of the cases, the Additional
Deputy Commissioner informed the respondent that inspite of the
repeated reminders the company had not executed the long-term lease for G
30 years on pre-payment of the requisite number of instalments of rent
and cess. The respondent-company replied pointing out that the High
Court had granted the stay order and therefore the matter stood stayed
till the disposal of the said cases. Thereafter, the Collector served upon
the Company, a notice under section 106 of the Transfer of Property Act, H
879
880 SUPREME COURT REPORTS [1993) 2 S.C.R.
,
A 1882 determining the tenancy of the company in respect of the tea garden
'-<
on the expiry of the specilied date. The company was required to hand over
the vacant and peace-fol possession of the tea garden. In reply to the said
notice, the company stated that in view of the stay order granted by the
High Court no further proceedings be taken. Thereafter the Collector took
over the possession of the tea garden. The applications before the High
B
Court were still pending. However, aggrieved by the order of the Collector
taking over its tea garden, the Respondent preferred a Writ Petition
before the High Court. Allowing the writ petition, the High Court directed
c
the appellant-State Government and other authorities to deliver the pos-
session of the tea garden to the Company within a month. -
Aggrieved by the High Court's order, the State as also the West
Bengal Tea Development Corporation to whom the possession of the
tea garden is transferred by the State, preferred appeals, before this
'+-
'
Court.
D Disposing of the appeals, this Court,
HELD: 1. The Revenue Officer had initially determined the rent at
the rate of Rs.2,375.94 per year, but the same was not accepted by the
Government and on a representation made by the State Government, the
Revenue Officer had relixed the rent at Rs.8,769.24 per year by order
E
dated 22.8.1968. The Company had challenged the rent relixed at Rs.
8.769.24 and the High Court had stayed the order of the Revenue Officer
lixing the rent at the rate of Rs.8,769.24. In view of these circumstances, it
F
was necessary on the part of the Collector to have passed an order of
summary settlement as contemplated under Form I Schedule F of the
West Bengal Estates Acquisition Rules, 1954..The High Court was, then~-
-
fore, right in hOlding that the Collector had no jurisdiction to terminate
the tenancy on the ground of non-payment of rent for not executing a lease )I-
deed inasmuch as the Collector had not mentioned in the notice terminal·
ing the tenancy under Section 106 of the Transfer of Property Act, that he
was prepared to accept the rent at the rate of Rs. 2,375.94 per year as
G
determined initially by the Revenue Officer. (886 F-H; 887 A,B]
2. In order to do complete justice between the parties, it is proper
that the respondent-Company should be given the prosession of the tea
garden provided the Company pays the entire arrears of rent from
H 27.7.1965 to 21.4.1981. the date when the Company was dispossessed,
STATE OF W. B. v. SINGE.LL TEA & AGRI. IND. [KASUWAL, J.] 881
calculated at the rate of Rs. 8,769.24 per year after adjusting any amount A
already paid, within three months. There would be no necessity for the
Collector to make any order of summary settlement and a long term lease
should be executed as contemplated under sub-section (3) of Section 6 of
the West Bengal Estates Acquisition Act, 1953. As soon as the arrears of
rent are paid by the Company and a lease deed is executed, the Company
should be handed over the possession of the tea garden. In case any
B
increase in the amount of rent is permissible under the law doe to lapse
-
of time, the State Government would be free to take the same into con-
sideration while granting the long term lease. [887 B-D]
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 2919-20 C
of 1981.
From the Judgment and Order dated 15.9.1981 of the Calcutta High
Court in Civil Rule No.3567 (W) of 1981.
S. Murlidhar, Rathin Das and R.F. Nariman for the Appellant. D
S.S. Ray, S.M. Jain, A.P. Dhamija, Sudhanshu Atreya, B.K. Jain, S.K,
Jain and P.K. Mukherjee for the Respondents.
The Judgment of the Court was delivered by
E
KASLIWAL, J. Both the above appeals by grant of special leave are
directed against the common order of the High Court dated 15.9.1981 as
- such the same are disposed of by one single order.
The respondent Messrs Singe! Tea and Agricultural Industries
F
Limited, a private limited company incorporated under the Companies
Act, 1956 (in short 'The Company') filed a writ petition under Article 226
of the Constitution in the High Court on 22.4.1981 challenging the order
dated 16.4.1981 issued by the Collector, Darjeeling whereby possession of
the lea garden known as M/s. Singcll Tea Estate were taken over with effect
from 16.4.1981. In view of the fact that the West Bengal Tea Development G
Corporation Limited, a Government Company (in short 'The Corporation')
had been handed over the possession of the tea garden on 21.4.1981; the
said Corporation was also impleaded as a party respondent.
The State of West Bengal enacted The West Bengal Estates Acquisi- H
·,/
882 SUPREME COURT REPORTS [1993] 2 S.C.R.
A tion Act, 1953 (hereinafter referred to as 'The Act') to provide for the State
. acquisition of estates, of rights of intermediaries therein and of certain
rights of raiyats and under·raiyats and of the rights of certain other persons
in lands comprised in estates. The State Government also issued a notifica·
tion under Section 4 of the Act vesting all estates and rights of every
-y
B intermediary in the State free from all encumbrances. This notification also
covered the land comprised in the tea garden know as M/s. Singell Tea ,,..
Estate. The Revenue Officer, Kurseong, Darjeeling issued notices to the
Company initiating proceedings for assessment of rent of the said tea
garden. The Company appeared in the said proceedings and contended
that it was not an intermediary within the meaning of the Act and the
....
c provisions of the Act were not applicable to the said "tea garden as the same
was a freehold land and the Revenue Officer had not jurisdiction to assess ·~
/
the rent under Section 42(2) of the Act. The Revenue Officer rejected the
contentions of the Company and passed two orders fixing the rent at
Rs.2,375.94 per year. The Government being not satisfied with the quantum
D of rent determined by the Revenue Officer took further proceedings for
the revision of the entries in the record of rights in respect of the tea garden
and in those proceedings the Revenue Officer by order dated 22.8.1968
redetermined the rent at Rs.8,769.24 per year.
E The Company aggrieved against the aforesaid order of the Revenue
Officer preferred two appeals before the District Judge, Darjeeling acting
as Tribunal under sub-section (3) of Section 44 of the Act. Both the appeals
-
were dismissed in default. The company filed two applications for restora-
tion of the appeals under Order 41Rule19 of the Code of Civil Procedure,
but both the applications were dismissed by the Learned District Judge by
F
his order dated 16.8.1975. Thr. Company then filed two applications under
Sectio~ 115 of the Code of Civil Procedure read with Article 227 of the
Constitution in the High Court challenging the aforesaid orders of the
District Judge dated 16.8.1975. A Division Bench of the High Court by its
order dated 1.10.1975 granted interim stay of the operation of the order of
G the Revenue Officer dated 22.8.1968. During the pendency of the aforesaid
case~ in the High Court, the Additional Deputy Commissioner of Darjeel-
ing by his letter dated 20.6.1979 informed the Manager of Singell Tea . ....,.
Estate that inspite of repealed reminders, the Company had not executed
the iong term lease for 30 years on pre-payment of the requisite number
H of instalments of rent and cesses.
y
STATE OF W. B. v. S!NGELL TEA & AGRI. IND. [KASLIWAL, J.l 883
The above mentioned letter of the Additional Deputy Commissioner, A
Darjeeling was received by the Company on 8.8.1979 and was replied by
the Solicitor of the Com(Jany by letter dated 13.8.1979. In the reply, it was
pointed out that the High Court had granted the stay order and as such
y requested the Additional Deputy Commissioner to stay bis hands till the
- disposal of the said cases. Thereafter, the Collector of Darjeeling served
upon the Company a notice under Section 106 of the Transfer of Property
Act, 1882 determining the tenancy of the Company in respect of the tea
B
- garden on the expiry of 14.4.1981. The Company was requested to hand
over vacant and peaceful possession of the tea garden to the Junior Land
Reforms Officer orc,he Sub-Divisional Land Reforms Officer of the area:
or the Executive Magistrate immediately on the expiry of 14.4.1981, failing c
which it was directed that the Company would be deemed a trespasser and
would also be liable to pay mesne profits till the Company was evicted in
due course of law. The above notice was received by the Company on
15.11.1980. In reply to the said notice under Section 106 of the Transfer of
Property Act, the Solicitor of the Company replied by letter dated
D
15.12.1980 agains pointing out the issuance of the stay orders by the High
Court and requested the Collector of Darjeeling to stay his hands until
further order from the High Court. Thereafter, the Collector, Darjeeling
issued the order dated 16.4.1981 which reads as under:-
11
To : The Proprietor, E
Mis. Singella Tea Estate, P.O. Kurseong,
District : Darjeeling.
~
I do hereby take over the possession of your tea garden
known as Singe! Tea Estate with effect from 16th April,
1981 as you have failed to execute Long Term Lease/Sum- F
.......
mary Lease, by paying the government dues by 14th April,
1981 as required in the notice served upon you u/s. 106 of
Transfer of Property Act.
Sd/- Illegible
Collector, Darjeeling."
G
According to the Company, by the impugned order the Collector
intimated the Company that he would take possession of the estate. But
the language of the order shows as if the Collector had taken pos~ssion
of ·the tea estate on 16.4.1981 and he recorded the fact of taking possession H
88~ SUPREME COURT REPORTS (1993] 2 S.C.R.
A of the tea garden in the said order. According to the Company, the said
order did not mention as to how and in what manner the possession of the
tea garden was taken by the Collector. The stand of the State Government
in this regard was that possession of the tea garden was taken by the
Collector on 16.4.1981, as stated in the order. The further case of the T
Government was that the possession of the tea garden was handed over to
B the Corporation on 21.4.1981. As already stated above, the Corporation
was subsequently added as a party and an affidavit was filed by Shri Aninda
Mohan Bose, the Managing Director of the Corporation stating therein
that possession of the tea garden was taken by one Shri R.B. Sobba, Circle
-
Inspector (Land Reforms) Kurseong, L.R. Circle on behalf of the Govern-
c ment on 21.4.1981 and handed over to the Corporation. The High Court
from the above circumstances concluded that the statement made by the
Collector in the impugned order dated 16.4.1981 about his taking over the
possession of the tea garden on that date was incorrect. The High Court,
however, observed that it was not disputed that tea garden was now in the
D possession of the West Bengal Tea Development Corporation Limited
since 21.4.1981.
The High Court examined the question whether the tenancy of the
Company in respect of the tea garden could be terminated and the posses-
sion of the same could be taken over by the Government. The High Court
E in the circumstances mentioned above held that the Collector of Darjeeling
was fully aware of the stay order dated 1.10.1975 passed by the High Court
against the order of the Revenue Officer dated 22.8.1968 fixing the rent at
Rs.8,769.24 per year before issuing the notice under Section 106 of the
Transfer of Property Act as well as on the date of issuing the impugned
F ·order dated ~6.4.1981. According to the High Court, there was no question
of granting a lease so long as the rent was not determined under Section
42 (2) of the Act. As the order fixing the rent was stayed by the High Court,
the question of granting on execution of the lease by the Company could
not arise. Thus, the action of the Collector in taking possession of the tea
G garden by the impugned order dated 16.4.1981 on the ground that the
Company had failed to execute a long terms lease or summary lease by
paying the Government dues by 14.4.1981 as required in the notice given
under Section 106 of the Transfer of Property Act, was not correct. The
High Court further held that the Collector did not make any order of
summary settlement as required by paragraph 1 of Schedule F of The West
H Bengal Estates Acquisition Rules, 1954. Thus, the €ollector failed to
1----
STATE OF W. B. v. SINGELL TEA & AGRI. IND. [KASLIWAL, J.] 885
perform his statutory duty by not granting a summary settlement specifying A
th~ terms and conditions of the tenancy and violated the provisions of ihe
Rules. As regards the contention on behalf of the State Government that
the Company should have paid at lea't the rent at the rate of Rs.2,375.94
)' per year initially determined by the Revenue Officer under Section 42 (2)
of the Act, the High Court rejected the same on .the ground that the
.... Government had not accepted the same and had not made any demand
B
for payment of rent at that rate. The High Court took the view that the
rent was fixed for the second time by order dated 22.8.1968 but the demand
for payment of rent was made after a long time in 1979 and obviously such
demand would be for the enhanced rent as fixed for the second time and
the same having been stayed by the High Court, it was doubtful whether c
the tenancy could be terminated and possession could be recovered on the
ground of non-payment of rent. The High Court, as such, held that the
Collector had taken the law into his own hands and took over possession
otherwise than in accordance with law and such action on the part of the
responsible officer like the Collector cannot be approved. As a result of
D
the above findings, the High Court allowed the writ petition and issued a
writ of mandamus commanding the State Government and other
authorities to deliver the possession of the tea garden to the Company
within a month from the date of the order.
Both the State of West Bengal as well as the Corporation have come E
in appeal challenging the order of the High Court.
We have heard learned counsel for the parties and have pt!rsued the
record. The two revisions filed under Section ll5 of the Code of Civil
Procedure read with Article 227 of the Constitution challenging the two
orders passed by the District Judge dismissing the two applications filed F
under Order 41 Rule 19 of the Code of Civil Procedure for restoration of
the two appeals filed against the determination of the rent for the second
time at the rate of Rs.8,769.24 per year are still pending before the Calcutta
High Court. This Court on 13.12.1991 had passed the following order:-
G
,,. "The Calcutta High Court is requested to dispose of finally
within the three months from today Civil Rule Nos.3741-42
of 1975. These appeals to be on board on 7th April, 1992.
The . order communicated to the Calcutta High Court
forthwith." H
---1
886 SUPREME COURT REPORTS (1993] 2 S.C.R. ~ f·
However, inspite of the above order, we were informed by the
l
A
learned counsel for the parties that the Civil Rule Nos.3741-42of1975 have
not .been disposed of by the High Court. As the above mentioned two
appeals directed against the order of the High Court dated 15.9.1981 are (
pending in this Court for the last more than 11 years, we do not consider
~
B
it proper to further wait for the decision of the Civil Rule Nos.3741-42 of
1975 pending in the High Court and we propose to decide these appeals. lt
The West Bengal Estates Acquisition Act, 1953 abolished the inter-
mediaries and upon the due publication of a notification under Section 4 -
of the Act, the estates and the rights of intermediaries in the estates vested f
c in the State free from all intermediaries under Section 5 of the Act. Secti0n
6 provides for retaining certain lands by the intermediaries. Section 42
provides for retaining possession of any land subject to the liability to pay
'>--
rent as determined by the Revenue Officer. Sub- section (2) of Section 42
provides that when an intermediary is entitled to retain possession of any
r
land comprised in a tea garden under Clause (I) of sub-section (1) as read
D
with sub-section (3) of Section 6 of the Act, the Revenue Qfficer shall
determine the rent payable in respect of such land in the manner provided
in the said sub-section. In the present case, the Revenue Officer had
initially determined the rent at the rate of Rs.2,375.94 per year and on the
representation of the Stale Government the same was refixed at Rs.8,769.24 ~
E per year. So far as the Company is concerned, it had taken a clear stand
before the Revenue Officer that it was not an intermediary nor the
provisions of the Act applied in the case as the land was claimed as
freehold. - ~
F The admitted facts of the case are that the Revenue Officer had
initially determined the rent at the rate of Rs.2,375.94 per year, but the
same was not accepted by the Government and on a representation made
by the State Government, the Revenue Officer had refll<ed the rent at
Rs.8,769.24 per year by order dated 22.8.1968. The Company had chal- ~
lenged the rent refll<ed at Rs.8,769.24 and the High Court in Civil Rule
G Nos, 3741-42 of 1975 had stayed the order of the Revenue Officer dated
22.8.1968 fixing the rent at the rate of Rs.8,769.24 in view these circumstan- -"'(
ces, it was necessary on the part of the Collector to have passed an order t
of summary settlement as contemplated under Form I Schedule F. of The
West Bengal Estates Acquisition Rules, 1954. The High Court in these
H circumstances was right in holding that the Collector had no jurisdiction
'
I
~ STATE OF W. B. v. SINGELL TEA & AGRI. IND. (KASLIWAL, J:] 887
to terminate the tenancy on the ground of non-payment of rent or fornot A
executing a lease deed inasmuch as the Collector had not mentioned in the
notice terminating the tenancy under Section 106 of the Transfer of Proper-
ty Act that he was prepared to accept the rent at the rate of Rs.2,375.94
y per year as dr-termined initially by the Revenue Officer. Weagree with tht
reasoning and conclusion arrived at by the High Court.
B
Now, taking in the view the entire facts and circumstances of the case
and in order to do complete justice between the parties, we deem it proper
that the respondent-Company should be given the possession of the tea
garden prmided the Company pays the entire areas of rent from 27.7.1965
to 21.4.1981, the date when the Company was dispossessed calculated at
the rate of Rs.8,769.24 per year after adjusting any amount already paid
c
--+ within three months from today. There would be no necessity for the
Collector to make any order of summary settlement and a long term lease
shall be executed as contemplated under sub-section (3) of Section 6 of
the Act. As soon as the arrears of rent as mentioned above are paid by the
Company.and a lease deed is executed, the Company shall be handed over D
the possession of the tea garden. In case, any increase in the amount of
rent is permissible under the law due to lapse of time, the State Govern-
ment would be free. to take the same into consideration while granting the
-.,( long term lease. The learned counsel appearing for the respondent-Com-
pany had not objected for determining the arre3"s of the rent at the rate E
of Rs.8,769.24 per year, to put an end of this litigation.
- These appeals are disposed of in the manner indicated above. In the
facts and circumstances of the case, we make no order as to costs.
G.N. Appeals disposed of.
~
-., -
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