Holding

The amount payable for fruit‑bearing cashew trees on surrendered land is to be computed at the notified seignorage rate for the tree’s age multiplied by the balance of years up to the thirty‑year period, not for a full thirty years.

Summary

The appellants, Vemareddy Kumaraswamy Reddy and another, had surrendered surplus agricultural land that contained fruit‑bearing cashew trees. The dispute centered on the amount payable for those trees under the Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973, specifically the seignorage rates notified in the Nellore District Gazette of 21‑03‑1982 and 23‑04‑1982. The State argued that payment was due for only one year, while the appellants claimed entitlement for the full thirty‑year period prescribed in the notifications. The Supreme Court held that the notifications meant the seignorage rate is per year and must be applied for the balance of years up to the thirty‑year horizon, i.e., for a 12‑year‑old tree the remaining 18 years, resulting in a payment of Rs 85 × 18 = Rs 1,530 per tree. The Court ordered the amount to be paid within three months and allowed the appeal.

Issues considered

Whether the amount payable for fruit‑bearing cashew trees on surrendered land is to be calculated for the full thirty‑year period or only for the remaining years up to thirty as per the notifications.
Interpretation of Rule 11 of the Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Rules, 1974 and the related notifications issued under the Forest Act.
Whether the seignorage rates specified in the notifications are to be applied per year or as a lump‑sum for the entire period.

Legislation cited

Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973s. 15

Subjects

land reformsceiling on agricultural holdingsseignorage ratesfruit‑bearing treescompensationstatutory interpretationAndhra Pradeshcashew treessurrender of landSection 15Rule 11

Judgment

A VEMAREDDY KUMARASWAMY REDDY AND ANR. '">-
.
v.
ST ATE OF A.P.

FEBRUARY 13, 2006

B [ARIJIT PASAYAT AND R.V. RAVEENDRAN, JJ.]

;..
Andhra Pradesh land Reforms (Ceiling on Agricultural Holdings) Act,
1973-Section 15--Surrender of land in excess of limit prescribed having fruit ~

bearing cashew trees-Amount payable for trees-Held: Amounts were payable
c at 'seignorage rates' notified by District Forest Officer under Rule // of
Andhra Pradesh land Reforms (Ceiling on Agricultural Holdings) Rules, 1974,
and as per notifications dated 21-3-1982 and 23-4-1982 published in Ne/lore
Discrict Gazette, amounts were to be calculated from 5th to 30thyear.-As the
trees were 12 years old at the time when land was surrendered, seignorage
D rates payable for balance 18 years only, and not for 30 years.

Interpretation of statues-To gather mens or sententa legis of ..,
legislature-Court cannot read anything into a statutory provision which is ~

plain and unambiguous.

E The appellants were holding land in excess of the limit prescribed
under the Andhra Pradesh Land Reforms (Ceiling on Agricultural
Holdings) Act, 1973. The surplus land was surrendered by them. However,
on that land there were fruit bearing cashew trees. The dispute relates to
the amount payable in respect of those trees. According to the authorities
the payment was to be made for one yi:ar only and not for thirty years as
F was claimed by the appellants. Writ petitions files by appellants before
J_
the High Court were dismissed. Hence the present appeal.

Allowing the appeal, the Court

HELD: 1. There is no dispute that the amounts payable for fruit
G bearing trees shall be at the 'seignorage rates' notified from time to time
by the District Forest Officer under Rule 11 of Andhra Pradesh Land
Reforms (Ceiling on Agricultural Holdings) Rules, 1974. A bare reading !..
of notifications dated 21-3-1982 &nd 23-4-1982 published in Nellore District
Gazette makes the position clear that the amounts are to be calculated
H 190
y

VEMAREDDY KUMARASWAMY REDDY i·. STATE OF A.P. 191

~/ from 5th to 30th year. That being so, the stand of the State Government A
as accepted by the High Court that the seignorage rate is clearly for one
year and accordingly fixing it for the 12 years is clearly unsustainable. It
is to noted that the tees were 12 years old and stood on the surrendered
land. It is further clear that upto 5 years cashew trees are held to be not
fruit bearing trees. (192-E-F; 196-E-F(
B
2. The residual question is the number of years for which the
Seignorage rates are to be accepted. There is no substance in the plea of
"'· appellants that the entitlement of the appellants is for 30 years. Admittedly
the trees were 12 years old at the time the lands were surrendered and,
therefore, for the balance 18 years only, the appellants will be entitled to c
at the relevant seignorage rates. Therefore, the amount payable for each
12 year old cashew tree at the seignorage rates, as per the Notification
dated 21-3-1982 (as amended by the Notification dated 23-4-1982) will be
the 'the seignorage rate for 12 year tree' multiplied by the 'remaining age
of the tree' that is Rs 85 x 18 =Rs 1530. The amount shall be paid within
3 months, along with other statutory entitlements, if any. [199-B-D( D
,..)
3. Statute is an edict of the legislature. The elementary principle of
~ interpreting or construing a status is to gather the mens or sententa legis
of the legislature. It is well settled in law that the Court cannot read
anything into a statutory provision which is plain and unambiguous.
E
(197-A(

Palace Admn. Board v. Rama Varma Bharathan Thampuran, AIR
(1980) SCl 187, Institute of Chartered Accountants of India v. Price
Waterhouse and Anr., AIR (1998) SC 74, State of Gujarat and Ors. v.
Dilipbhai Nathjibhai Patel and Anr., JT (1998) 2 SC 253, Jamma Masjid, f
Mercara v. Kodimaniandra Deviah and Ors., AIR (1962) SC 847, Union of
_(
India and Ors. v. Filip Tiago De Gama of Veden Vasco De Gama, AIR (1990)
SC 981, Dr. R.venkatchalam and Ors. v. Dy. Transport Commissioner and
Ors., AIR (1977) SC 842, Commissioner of Sales Tax, M.P. v. Popular
Trading Company, Ujjain, (2000) 5 SCC 515, Maulavi Hussein Haji Abraham
Umarji v. State ofGujarat and Anr., [2004) 6 SCC 672 and State ofJharkhand
G
and Anr. v. Govind Singh, (2005) 10 SCC 437, relied on.
j
Kirby v. Leather, (1965) 2 All ER 441, Crawford v. Spooner, (1846) 6
Moore PC 1, Vickers Sons and Maxim Ltd. v. Evans, (1910) AC 445 (HL)
and Lenigh Valley Coal Co. v. Yensavage, 218 FR 547, referred to. H
192 SUPREME COl'Rl REPORTS [2006[ 2 S.C.R.

A CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3066 of2000.

From the Judgment and Order dated 27 .12. 1999/4.2.2000 of Andhra
Pradesh High Court in C.R.P. Nos. 4480, 4608, 4609,4610,4611,4612 and
4613 of 1996. ·.
B WITH

CA Nos. 3068, 3069, 3070, 3072, 3073 and 3110 of 2000.

M.N. Rao, A.V. Rangam, A, Ranganadhan, Buddy A. Ranganadhan, S.
Shridhar Reddy for the Appellants.
c
Anoop, G. Chaudhary, Manoj Saxena, Amit Meharia, Praveen Kumar
Singh, Ms. Ahmed and Mohanprasad Meharia for the Respondent

The Judgment of the Court was delivered by

D ARIJIT PASA YAT, J. These appeals involve identical issues and are,
therefore, disposed of by this common judgment. Challenge in these appeals
is to the order passed by a Division Bench of the Andhra Pradesh High
Court. Factual background is almost undisputed and the controversy relates
to the scope and ambit of Rule 11 of the Andhra Pradesh Land Reforms
E (Ceiling on Agricultural Holdings) Rules, 1974 (in short the 'Ceiling Rules').
The appellants were holding land in excess of the limit prescribed under the
Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973
(in short 'the Act'). The surplus land was surrendered by them which had
cashew nut tree plantation. On the surrendered land the trees were fruit bearing
trees. The dispute relates to the amount payable in respect of fruit bearing
F trees standing on the land which were surrendered by the appellant. The
number of trees is also not in dispute. The amount payable for the land vested
in the Government the amounts were duly paid. With regtrd to the amount
payable for fruit bearing trees a Commissioner was appointed, who submitted
a report regarding number of fruit bearing trees and other trees standing on
G the land so surrendered. The Commissioner of Land Reforms Urban Ceiling,
Hyderabad, Andhra Pradesh directed the District Collector to issue necessary
instructions not to fix the compensation payable in respect of the trees under
the Rules until further orders. According to the authorities the payment was
to be made for one year only and not for thirty years as was claimed by the
t_
-
H
appellants.

-
VEMAREDDY KUMARASWAMY REDDY 1·. STATE OF A.P. [PASAYAT, J] J93

..__,,,#. Writ petitions were filed before the High Court which came to be A
dismissed by the impugned orders.

Mr. M.N. Rao, learned senior counsel for the appellants submitted that
the High Court is not correct in its view that the appellants are not entitled
to get the amount for 30 years and in accepting the stand of the Government
that it was payable only for one year. B
Learned counsel for the respondent-State on the other submitted the
view of the High Court is clearly unexceptionable. The purpose and object
of the Statute under which the lands were surrendered cannot be lost sight of.
The appellants have been rightly held to be l)ntitled for amounts payable for C
one year.

In order to appreciate the rival submissions a few provisions needs to
be noted:

A. Section 15 of the Act.
D
"15. Amount payable for lands vested in the Government:
,..).
The amount payable for any land vested in the Government under
~
this Act, shall be a sum calculated at the rate< specified in the Second
Schedule and it shall be paid at the option of the Government, either
in cash or in bonds or partly in cash and partly in bonds. The bonds E
shall be issued on such terms and carry such rate of interest as. may
be prescribed."

B. Schedule II to the Act

Clause (3) of the Second Schedule to the Act provides as follows: F
)

-"' "Where the land contains any fruit bearing trees or permanent
structures, the amount payable therefore shall be calculated in such
manner as may be prescribed."

C. Rule 1I of the Rules. G
"11. Fixation on value for fruit bearing trees and structures etc. 91)
/i The amount payable for fruit bearing trees shall be at the seignorage
rates notified by the District Forest Officer as applicable to the district
from time to time and for the Tribunal may require the District Forest
Officer in whose jurisdiction the land is situated to furnish an estimate H
1

194 SUPREME COURT REPORTS (2006] 2 S.C.R.

A of the amount payable for such trees.

(2) The amount payable for the structures of permanent nature shall
be equivalent to the depreciated value of the structure as on the
specified date and for this purpose the Tribunal may require the
Executive Engineer, Roads and Buildings Division, in the district to
B furnish an estimate of the depreciated value of such structure."

At this juncture it is important to take note of the notifications published
in the Nellore District Gazettes dated 21.3.1982 and 23.4.1982. There is no
dispute that the amounts payable for fruit bearing trees shall be at the •
"seignorage rates" notified by the District Forest Officer from time to time.
c
Notification dated 21.3.1982 reads as follows:-
"R.C.D. 4 3209/82
NELLORE DISTRICT GAZETTE
EXTRA ODRINARY
D PUBLISHED BY AUTHORITY

NELLORE SUNDAY MARCH 21 ST 1982

NOTIFICATION
E In exercise of the powers conferred under Rule 5 of the Rules to
regulate the seignorage fees to be levied for the removal of timber
-
and other procedure, issued· U/s 26 of the A.P. Forest Act, 1882, the
Collector hereby fixes the seignorage rates in respect of Cashew Trees
(Fruit bearing) in Nellore District as specified in the 'Annexure'.
F These rates shall come illto force with immediate effect.
Sd/-
H.K. Babu,
District Collector, Nellore,
Item No.64/82."
G
Seignorage rates of Cashew Trees (Fruit Bearing) in Nellore District.

H
-
y

VEMAREDDY KUMARASWAMY REDDY v. STATE OF A.P. [PASAYAT, J.) 195
_,
S.No. Tree Age Approximate Rate Seignorage A
provide
Year Girth yield per kg. rates
Rs. P.

I. 2. 3. 4. 5. 6. 7.
I. Cashew 5th 78(g) 0.75 JO 7.50 B
6th 79.50 11.50 JO 5.00
7th 80.00 3.00 JO 30.00
8th 80.50 4.50 JO 45.00
9h 81.00 6.00 10 60.00
10th 81.00 7.50 JO 75.00 c
I Ith 82.00 8.00 JO 80.00
12th 82.00 8.50 JO 85.00
13th 83.00 9.00 IO 90.00
14th 9.50 10 95.00
D
15th J0.00 JO 100.00
) 16th 84.00 10.00 10 100.00

~
17th 85.00 10.00 IO 100.00
18th 85.00 10.00 10 100.00
19th 80.00 10.00 JO 100.00
E
20th 86.00 10.00 JO 100.00
21th 87.00 10.00 JO 100.00
2nd 87.50 10.00 JO 100.00
23rd 88.00 10.00 JO 100.00
24th 88.00 10.00 JO 100.00 F
25th 89.00 10.00 IO 100.00
'·
26th 89.00 9.00 JO 90.00
27th 90.00 8.00 10 80.00
28th 90.00 7.00 JO 70.00
29th 90.00 6.00 10 60.00 G
30th 90.00 6.00 JO 60.00

(Sd) H.K. Babu,
Nell ore. Dist. Collector.
Dated 21.03.82" H
196 SUPREME l'Ol IR r REPOR rs 120061 2 S.C.R.

A The notification dated 23.4.82 which is crucial for this case reads as ..._,
follows:

"R.C.D. 4 3209/82
NELLORE DISTRICT UAZETTF
EXTRA ODRINARY
B PUBLISHED BY AUTHORITY

NELLORE APRIL 23 - 1982

NOTIFICATION

C The following sentence may be added to the Notification published
Nellore District Gazette (Extra-ordinary) dated 31.03.1982.

The seignorage rate in the column No.7 are the rate of trees per
year and the tree will yield for 30 years. The seignorage rate per tree
is to be calculated for 30 years.
D Sd/-
H.K. Babu,
District Collector, Nellore.
Dt. 23 .04.1982
U.M. No.97/82"

E
A bare reading thereof makes the position clear that the amounts are to
be calculated from 5th to 30th years.

That being so, the stand of the State Government as accepted by the
High Court that the seignorage rate is for one year and accordingly fixing it
F for the 12 year is clearly unsustainable. It is to be noted that the trees were
12 years old and stood on the surrendered land. It is further clear that up to
5 years cashew trees are held to be not fruit bearing trees.

The emphasis for the State was that the object of the concerned statue
was not to confer any benefit beyond the statutory entitlements and for that
G purpose according to learned counsel for the State the object of the statute
was vital. According to him for the purpose of construction of the notifications
of the District Collector, the same has to be read in a manner which would
give true effect to the intention of the statute. t.

We shall deal with this plea in some detail.
H
VEMAREDDY KUMARASWAMY REDDYv. STATE OF A.P. [PASAYAT, J] 197

It is said that a statute is an edict of the legislature. The elementary A
( principle of interpreting or construing a statute is to gather the mens or
sententia legis of the legislature. It is well settled principle in law that the
Court cannot read anything into a statutory provision which is plain and
unambiguous.

Interpretation postulates the search for the true meaning of the words B
used in the statute as a medium of expression to communicate a particular
thought. The task is not easy as the "language" is often misunderstood even
in ordinary conversation or_ correspondence. The tragedy is that although in
the matter of correspondence or conversation the person who has spoken the
words or used the language can be approached for clarification, the legislature C
cannot be approached as the legislature, after enacting a law or Act, becomes
fanctus officio so far as that particular Act is concerned and it cannot itself
interpret it. No doubt, the legislature retains the power to amend or repeal the
law so made and can also declare its meaning, but that can be done only by
making another law or statute after undertaking the whole process of law-
making. D
Statute being an edict of the legislature, it is necessary that it is expressed
in clear and unambiguous language. ·In spite of Co_!lrts saying so, the draftsmen
have paid little attention and they still boast of the old British jingle "I am
the parliamentary draftsman. I compose the country's laws. And of half of E
the litigation, I am undoubtedly the cause", which was referred to by this
Court in Palace Admn. Board v. Rama Varma Bharathan Thampuran, AIR
(1980) SC 1187 at. P. 1195). In Kirby v. Leather, [1965] 2 All ER 441 the
draftsmen were severely criticized in regard to Section 22(2)(b) of the (UK)
Limitation Act, I939, as it was said that the section was so obscure that the
draftsmen must have been of unsound mind. F
Where, however, the words were clear, there is no obscurity, there is
no ambiguity and the intention of the legislature is clearly conveyed, there is
no scope for the court to innovate or take upon itself the task of amending
or altering the statutory provisions. In that situation the Judges should not G
proclaim that they are playing the role of a law-maker merely for an exhibition
of judicial valour. They have to remember that there is a line, though thin,
which separates adjudication from legislation. That line should not be crossed
or erased. This can be vouchsafed by "an alert recognition of the necessity
not to cross it and instinctive, as well as trained reluctance to do so". (See:
Frankfurter, Some Reflections on the Reading of Statutes in "Essays on H
198 SUPREME COURT REPORTS [2006] 2 S.C.R.

A Jurisprudence", Columbia Law Review, P.51.) ..
Words and phrases are symbols that stimulate mental references to
referents. The object of interpreting a statute is to ascertain the intention of
the Legislature enacting it. (See Institute of Chartered Accountants of India
v. Mis Price Waterhouse and Anr., AIR (1998) SC 74). The intention of the
B Legislature is primarily to be gathered from the language used, which means
that attention should be paid to what has been said as also to what has not
been said. As a consequence, a construction which requires for its support,
addition or substitution of words or which results in rejection of words as
meaningless has to be avoided. As observed in Crawford v. Spooner, ( 1846)
c 6 Moore PC 1), Courts, cannot aid the Legislatures' defective phrasing of an
Act, we cannot add or mend, and by construction make up deficiencies which
are left there. (See The State of Gujarat and Ors. v. Dilipbhai Nathjibhai
Patel and Anr., JT (1998) 2 SC 253). lt is contrary to all rules of construction
to read words into an Act unless it is absolutely necessary to do so. (See
Stock v. Frank Jones (Tiptan) Ltd., (1978] I All ER 948 (HL)). Rules of
D interpretation do not permit Courts to do so, unless the provision as it stands
is meaningless or of doubtful meaning. Courts are not entitled to read words
into an Act of Parliament unless clear reason for it is to be found within the
four comers of the Act itself. (Per Lord Lorebum L.C. in Vickers Sons and -+
Maxim Ltd. v. Evans ( 1910) AC 445 (HL), quoted in Jamma Masjid, Mercara
E v. Kodimaniandra Deviah and Ors., AIR (1962) SC 847).

The question is not what may be supposed and has been intended but
what has been said. "Statutes should be construed not as theorems of Euclid".
Judge Learned Hand said, "but words must be construed with some imagination
of the purposes which lie behind them". (See Lenigh Valley Coal Co. v.
F Yensavage, 218 FR 547). The view was re-iterated in Union of India and
Ors. v. Filip Tiago De Gama of Vedem Vasco De Gama, AIR (1990) SC
981).

In Dr. R. Venkatchalam and Ors. etc. v. Dy. Transport Commissioner
G and Ors. etc., AIR (1977) SC 842, it was observed that Courts must avoid
the danger of a priori determination of the meaning of a provision based on
their own pre-conceived notions of ideological structure or scheme into which
the provision to be interpreted is somewhat fitted. They are not ent(tled to
usurp legislative function under the disguise of interpretation.

H While interpreting a provision the Court only interprets the law and
VEMAREDDY KUMARASWAMY REDDY r. STATE OF A.P. [PASAYAT, J] J99

A
( cannot legislate it. If a provision of law is misused and subjected to the abuse
of process of law, it is for the legislature to amend, modify or repeal it, if
deemed necessary. (See Commissioner of Sales Tax, M.P. v. Popular Trading
Company, Ujjain, [2000] 5 SCC 5 I 5). The legislative casus omissus cannot
be supplied by judicial interpretative proc~ss. (See Maulavi Hussein Haji
Abraham Umarji v. State of Gujarat and Anr., [2004] 6 SCC 672) and State B
of Jharkhand and Anr. v. Govind Singh, [2005] 10 SCC 437).

The residual question is the number of years for which the Seignorage
", rates are to be computed.

We do not find any substance in the plea of learned counsel for the
appellants that the entitlement of the appellants is for 30 years. Admittedly C
the trees were 12 years old at the time the land Jere surrendered and, therefore,
for the balance 18 years only the appellants wjll be entitled to at the relevant
seignorage rates. Therefore, the amount payable for each 12 year old cashew
I
tree at the seignorage rates, as per the Notification dated 21.3.1982 (as amended
by Notification dated 23.4.1982) will be 'the seignorage rate for 12 year tree' D
multiplied by the 'remaining age of the tree' that is Rs.85x 18 = Rs.1530.
The amount shall be paid within 3 months, along with other statutory
entitlements, if any.

The appeals are accordingly allowed to the aforesaid extent. No costs.
E
V.S. Appeal allowed.