15 July 1968
Supreme Court
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RAM KISTO MANDAL AND ANR. Vs DHANKISTO MANDAL

Case number: Appeal (civil) 1123 of 1965


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PETITIONER: RAM KISTO MANDAL AND ANR.

       Vs.

RESPONDENT: DHANKISTO MANDAL

DATE OF JUDGMENT: 15/07/1968

BENCH: SHELAT, J.M. BENCH: SHELAT, J.M. HEGDE, K.S.

CITATION:  1969 AIR  204            1969 SCR  (1) 342

ACT: Sonthal  Parganas Settlement Regulation 3  of  1872--Certain transfers of land barred by s. 27 of Regulation-Exchange  of land  whether such transfer-High Court must take  notice  of plea  even if not raised at earlier stage-Burden of  proving that  s. 27 applicable, on whom lies-Suit When barred by  s. 11 of Regulation. Indian Limitation Act, 1908, Art. 141-Transferee from  widow with  life  estate  whether  can  claim  adverse  possession against reversioners.

HEADNOTE: A  widow with a life estate in certain raiyati lands in  the Sonthal Parganas in Bihar exchanged a part of the lands  for other  lands.   After her death her  husband’s  reversioners filed  a suit challenging this exchange as well  as  certain other  transfers.   The  trial court as well  as  the  first appellate  court decided in favour of the  plaintiffs.   The High Court however held that the, aforesaid exchange of land was  a  valid transaction and that the plaintiffs  were  not entitled to raise for the first time before it the plea that transfers  of land by exchange were prohibited by s.  27  of the  Sonthal Parganas Settlement Regulation 3 of 1872.   The High Court gave two reasons for not allowing the plea to  be raised  for  the first time before it, namely (a)  that  the defendants  could  have  shown if the  contention  bad  been raised  earlier that as provided by s. 27(1) the  record  of rights  had set out the right of the last female  holder  to transfer  the  said lands and that if that were  so,  s.  27 would  not bar transfer of the said lands by such a  person; and  (b) that the defendants could also have contended  that if  the, said exchange was invalid by reason of  ’s.  27(1), they held the lands after the said exchange adversely to the reversioners and that they being in possession for more than twelve   years   their  title  was  completed   by   adverse possession.    Against   the  High  Court’s   judgment   the plaintiffs came as appellants to this Court.  The  questions that  fell  for consideration were : (i)  whether  the  High Court  was  right  in disallowing the  appellants  to  raise before it the plea based on s. 27(1) of the Regulation 3  of 1872;  (ii) whether the appellants’ claim could be  resisted on  the ground of adverse possession under Art. 141  of  the

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Indian  Limitation Act, 1908; (iii) whether an  exchange  of land  was  transfer within the meaning of s.  27(1)  of  the Regulation; (iv) whether the validity of the exchange  could not be challenged in view of s. 11 of the Regulation. HELD  : (i) The High Court was not right in disallowing  the contention  based on s. 27(1) on the ground that it was  not raised earlier because from the District Court’s judgment it was  clear that the contention was in fact canvassed  before it. [346 G-H] The language of s. 27 is moreover clear and unambiguous.  It prohibits  any transfer of a holding by a raiyat  either  by sale,  mortgage  or  lease  or  by  any  other  contract  or agreement.  The section is comprehensive enough to include a transfer  of the holding by way of an exchange.   Subsection (2) of the s. 27 in clear terms enjoins upon the courts  not to  recognise any transfer of such lands by sale,  mortgage, lease etc. or by 343 or  under  any  other  agreement  or  contract   whatsoever. Therefore,  even  assuming  that the contention  as  to  the invalidity  of the said exchange under s. 27 was raised  for the first time before the High Court, the language of sub-s. 2  being  absolute  and clear, the High Court  had  to  take notice  of such a contention and was bound to hold  such  an exchange invalid if it was shown that sub-s. (1) applied  to the transaction [347 C-E] The burden of showing that s. 27 applied to, the case was on the  appellants.   But  once it was  shown  that  the  lands exchanged   were  raiyati  lands  situate  in  the   Sonthal Parganas,  if  the  respondent  wanted  to  show  that   the prohibition did not apply by relying on the exception to the rule  laid  down  in sub-s. (1), the burden  to  prove  that exception  would  shift  on  to  the  respondent.   It  was, therefore,  for the respondent to establish that the  record of  rights  contained  an  entry  to  the  effect  that  the transferor  in  respect  of those lands  had  the  right  to transfer them.  The High Court was, therefore, not justified in  disallowing the appellants contention based on s. 27  on the ground that if it had been raised earlier the respondent would have shown that there was such an entry in the  Record of Rights as to the Transferor’s right to transfer  the-said lands [348 C-E-] (ii) The High Court was also not correct in disallowing  the said contention on the ground that the respondent could have shown  that he had completed his title to the properties  in question  by  adverse possession, if the said  exchange  was invalid under s. 27.  Such a plea was in f act raised by the respondent  and was rightly rejected by the District  Court. A person who has been in adverse possession for twelve years or more of property inherited by a widow from her husband by any  act  or omission on her part is not  entitled  on  that ground to hold it adversely as against the next reversioners on  the  death  of such a widow.  The  next  reversioner  is entitled  to  recover possession of the property  if  it  is immoveable, within twelve years from the widow’s death under Art. 134 of the Indian Limitation Act, 1908.  This rule does not  rest  entirely on Art. 141 but is in  accord  with  the principles  of Hindu Law and the general principle  that  as the  right  of  a reversioner is in the  nature  of  a  spes successionis  and  he does not trace that title  through  or from  the widow, it would be manifestly unjust if he  is  to lose his right by the negligence or sufferance of the widow. [348 F-H, 349 B] Kalipada Chakraborti v. Palani Bala Devi, [1953] S.C.R. 503, relied On.

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(iii)     Under  s.  118 of the Transfer  of  Property  Act, 1882,  a transaction is exchange when two  persons  mutually transfer  the  ownership of one thing for the  ownership  of another  provided it is riot an exchange for money only.   A transfer  of  property in completion of an exchange  can  be made  only in the manner provided for the transfer  of  such property by sale. it is not therefore, right to say that  an exchange does not involve transfer of property and therefore does not fall within the scope of s. 27. The exchange in the present   case      was made when s. 27 was in force and its subsequent repeal could not have the effect of rendering  an invalid   and   void   transaction  a  valid   and   binding transaction [349 C-F] (iv) The only, effect of s. 1 1 of the Regulation is that  a decision  of a settlement officer under the  Regulation  has the force of a - decree of a civil court and such a decision can only be challenged subsequently in a court of law to the limited  extent provided, in s. 25A.  However  the  question whether in the present case the exchange was valid or not by reason of s. 27 was neither agitated before, nor  determined by, any settlement officer or court and therefore the bar of s. 11 could not apply to the present suit [349 H] 344

JUDGMENT: CIVIL  APPELLATE  JURISDICTION : Civil Appeal  No.  1123  of 1965. Appeal  by special leave from the judgment and decree  dated March 20, 1963 of the Patna High Court in Appeal from Appel- late Decree No. 1467 of 1968. B.   P. Jha, for the appellants. R.   C. Prasad, for the respondents. The Judgment of the Court was delivered by Shelat J. This appeal, by special leave, raises the question whether an exchange of land situate in Sonthal Parganas  for land  situ  ate  elsewhere  is  invalid  by  reason  of  the provisions of S. 27 ( 1 ) of the Sonthal Parganas Settlement Regulation, 3 of 1872.  It is not in dispute that the  lands in  question,  set  out in Schedule B  to  the  plaint  were raiyati lands and were governed by the said Regulation. The appeal arises from a suit filed by the appellants for  a declaration  of title and possession of lands  described  in Schedules  B, C and D to the plaint.  The lands belonged  to one  Tonu  Mandal  who died several years  ago  leaving  him surviving  two daughters, Manoda and Nilmoni  Dasi.   Manoda died  in 1940 and Nilomoni Dasi died in 1948.  On the  death of  the said Tonu Mandal, the two. daughters  inherited  his property   as  limited  owners.   There  was  a   settlement thereafter between them as a result of which the said Manoda got  10  annas share and the said Nilmoni Dasi got  6  annas share  in the said properties.  On Manoda’s  death,  Nilmoni Dasi  succeeded. to her share.  Consequently,  Nilmoni  Dasi was  possessed  of the entire property of Tonu Mandal  as  a limited owner.  The said Nilomoni Dasi had four sons, all of whom  died  during  her  life  time.   She  left,   however, grandsons  surviving her.  These grandsons  were  defendants first  party in the suit and Schedule D properties  were  in their  possession at the time when the suit was filed.   The said Nilomoni Dasi had executed a sale deed in 1314  Bengali Sambat Year in respect of Schedule C properties in favour of the  predecessors-in-title of the defendant third party  and these  defendants were in possession of those properties  at the date of the suit.  In 1295 Bengali Sambat Year, she  had

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also   executed  a  deed  of  exchange  in  favour  of   one Premonitory   Dasi  under  which  she  gave  away  Sch.    B properties  in  exchange for Sch.  E properties  situate  in village  Gokrul.  In accordance with the said exchange,  the names  of  the two ladies were recorded as  raiyats  of  the respective   properties.   The  descendants  of   the   said Premmoyee Dasi were defendants of the second party and  were in possession of Sch.  B properties at the date of the suit. The defendants of the first party were in possession of Sch. E properties. 345 The  said Tonu Mandal had two brothers, Santusta Mandal  and Bhim Mandal.  Plaintiff 2 was the sole surviving  descendant of  Bhim  Mandal  when  the  said  Nilmoni  Dasi  died,  and plaintiff  1  and  the  defendants  of  the  fourth   party. Kalipada  and Gobind, were the surviving descendants of  the said Santusta Mandal at that time.  Under the, Dayabhaga law by  which  the  parties were governed,  the  two  appellants (plaintiffs)  and  the defendants of the fourth  party  were the, nearest reversioners of the said Tonu Mandal after  the death  of Nilmoni Dasi and were entitled to succeed  to  his estate,  the  share  of  the  appellants  and  that  of  the defendants of the fourth party being equal.  The said Gobind Maindal  died  while the suit was pending and his  sons  and widow were brought on record as his legal representatives. The  appellants’ case was that the said sale deed in  favour of  the defendants of the third party and the said  deed  of exchange in favour of the said Premmoyee Dasi were not valid and  binding on them, being neither for legal necessity  nor for  the  benefit  of the estate of  Tonu  Mandal  and  that defendants  of  the  first  party had  no  right,  title  or interest to the properties in their possession after Nilmoni Dasi  died.   The defendants, on the other  hand,  contended that  the  said sale and the said exchange  were  for  legal ,necessity or for the benefit of the estate and that as they were  in possession of the said properties for a  very  long time  their  title  therefore had ripened in  any  event  by adverse possession.  The trial court and the District  Court in appeal concurrently found that the said Nilmoni Dasi  was in  possession of Schs.  D and E properties and  though  the defendants  of the first party took possession on her  death of  the  said  properties,  they had  no  right,  title,  or interest therein and were trespassers.  Both the courts also rejected the plea of adverse, possession on the ground  that Art.  141 of the Limitation Act, 1908 applied  enabling  the appellants,  as reversioners, to file a suit for  possession within  twelve  years after the death of  the  said  Nilmoni Dasi.  They also concurrently found that the said sale  deed in favour of defendants of the third party and the said deed of exchange in favour of the said Premmoyee Dasi, the mother of defendant 6, were neither for legal necessity nor for the benefit  of the estate of Tonu Mandal.  The trial Court,  on these findings, passed a decree, which was confirmed by  the District court, in favour of the appellants-declaring  their title  to an 8 annas share in Schs.  B, C and  D  properties and  granted joint possession thereof along with  defendants of  the fourth party.  The District court  while  confirming the decree passed by the trial court clarified that in  view of the finding that the said deed of exchange was not  valid and binding on the appellants, the respondent (defendant  6) was entitled to fall back upon Sch.  E properties. 346 Aggrieved  by  the said judgment and decree  passed  by  the District Court, the respondent filed second appeal No.  1467 of  1958  and the two grandsons of the  said  Nilmoni  Dasi,

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Tribhanga  Gorain and Pawan Gorain, preferred second  appeal No.  1468  of  1958  in the  High  Court.   The  High  Court dismissed second appeal No. 1468 of 1958 on the ground  that it  was  not  entitled  to  interfere  with  the  concurrent findings  of  fact  arrived at by the trial  court  and  the District  court.  So far as second appeal No. 1467  of  1958 was  concerned, the High Court came to the  conclusion  that the said deed of exchange executed by Nilmoni Dasi was valid and binding on the appellants and consequently set aside the decree  in relation to Sch.  B properties and dismissed  the appellants’ suit in regard thereto. Before the High Court, the appellants raised two contentions in regard to Sch.  B properties : (1) that the said exchange was  neither for legal necessity nor for the benefit of  the estate  of Tonu Mandal; and (2) that in any event S.  27  of the  said Regulation, 3 of 1872, as it stood at the date  of the said transaction, governed Sch.  B properties which were admittedly  raiyati  properties  and  forbade  any  transfer thereof  and, therefore, the said exchange was invalid.   As regards  the  first  contention, the High  Court  held  that though. the said exchange could not be said to be for  legal necessity, it was for the benefit of the estate.   Regarding the  second  contention,  the  High  Court  disallowed   the contention  on the ground that it was raised for  the  first time  during the arguments before it and it could not  allow it  to be raised as it involved an investigation of  certain facts, namely, (a) that the respondents could have shown  if the  contention had been raised earlier that as provided  by S.  27(1),  the record of rights had set out  the  right  of Nilomoni  Dasi to transfer the said lands and that  if  that were so, s. 27 would not bar transfer of the said lands,  by such a person; and (b) that the respondents could also  have contended that if the said exchange was invalid by reason of S.  27(1),  they  held the lands  after  the  said  exchange adversely to the reversioners of Nilmoni Dasi and that  they being  in possession for more than twelve years their  title was completed by adverse possession. The  High Court, however, was not correct in its  view  that the  contention based on s. 27(1) was raised for  the  first time in the course of arguments before it.  It is clear from the judgment of the District court that the contention based on  S.  27 was in fact canvassed before it.  That  is  clear from the fact that the District Judge, in the course of  his judgment,  has  clearly drawn a  distinction  between  lands situate  in Sonthal Parganas, that is, Sch.   B  properties, and  the lands situate in village Birbhum, that is  Sch.   E properties  and has observed that whereas s. 27  applied  to the former it did not apply to the latter.  The High  Court, therefore, 347 was  not  right in disallowing the said  contention  on  the ground that it was not raised earlier.  Section  27 of the Regulation laid down an absolute bar  to sales of the rights of a raiyat.  As aforesaid, it is not in dispute that the said Nilnoni Dasi was a raiyat in  relation to  the lands in Sch.  B properties.  The  section  provided that "No transfer by a raiyat of his right in his holding or any  portion thereof by sale, gift, mortgage, lease  or  any other contract or agreement, shall be valid unless the right to  transfer has been recorded in the Record of  Rights  and then  only to the extent to which such right  is  recorded". Sub-section  (2) of that section provided that "No  transfer in  contravention of subsection (1) shall be  registered  or shall be in any way recognised as valid by any court whether in the exercise of civil, criminal or revenue jurisdiction."

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The  language  of  s.  27  is  clear  and  unambiguous.   It prohibits  any transfer of a holding by a raiyat  either  by sale,  gift, mortgage or lease or by any other  contract  or agreement.  The section is comprehensive enough to include a transfer of the holding by way of an exchange.  The Sch.   B properties  were admittedly of raiyati character  and  were, therefore,  inalienable.  Sub-section (2) of s. 27 in  clear terms enjoins upon the courts not to recognise any  transfer of  such lands by sale, mortgage, lease etc. or by or  under any other agreement or contract whatsoever.  Therefore, even assuming  that the contention as to the, invalidity  of  the said  exchange  under s. 27 was raised for  the  first  time before  the  High Court, the language of  sub-s.  (2)  being absolute  and  clear, the High Court had to take  notice  of such a contention and was bound to hold such an exchange  as invalid if it was shown that sub-s. (3) of s. 27 applied  to that transaction. The  prohibition against transfers of raiyati lands  situate in  Sonthal  Parganas has its roots in the peculiar  way  of life of Sonthal villages, which favoured the emergence of  a powerful village community with its special rights over  all the lands of the village.  This community of village raiyats has preferential and reversionary right,,; over all lands in the  village, whether cultivated or uncultivated.  There  is also  in  the majority of the villages of  this  district  a headman,  who,  in addition to  performing  certain  village duties,  collects rent from the raiyats and pays it  to  the proprietor.   One  of  his duties in  his  capacity  as  the headman is to arrange for settlement of lands in his village which  may fall vacant and be available for settlement.   AR the  raiyats  in the village are included in  the  Jamabandi prepared  for  the village and it is the headman’s  duty  to settle  the available land to one of the Jamabandi  raiyats. It is manifest that the interest of the village community as also  of  the  headman would suffer if the  land,  which  as raiyati land would be included in the Jamabandi, is  allowed to be taken out of the total quantity of the raiyati  lands. If once these lands are allowed 348 to lose their raiyati character, it is certain the,  village may  find  in the course of a few years the total  stock  of land available for settlement to resident raiyats  dwindling before their eyes.  It was in this state (if things that the alienation of a raiyati holding in any form was  interdicted by  Government orders in 1887.  These orders had the  effect of  checking the practice of open transfers.  But  transfers in  disguised  forms continued as is clear from  a  note  by McPherson  to the settlement report of the Sonthal  Parganas wherein  he  warned against such disguised  transfers.   His note  was  accepted  by Government and the  result  was  the amendment  of  the Regulation by which S.  27  was  inducted therein: (see Jyotish Thakur v. Tarakan Jha) (1). Section  27  having  thus laid down  a  prohibition  against transfer  of  raiyati land, the burden of  showing  that  it applied  and, therefore, the said exchange was invalid  was, no  doubt, upon the appellants.  But once it was shown  that the  subject  matter  of  the  exchange,  namely,  Sch.    B properties, was raiyati land situate in Sonthal Parganas, if the  respondent wanted to show that the prohibition did  not apply by relying upon the exception to the rule laid down by sub-s. (1) the burden to prove that exception would shift on to the respondent.  It was, therefore, for the respondent to establish  that the record of rights contained an  entry  to the effect that the transferor in respect of those lands had the right to transfer them.  The High Court, therefore,  was

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not  justified in disallowing the contention raised  by  the appellants either on the ground that the said contention was raised for the first time before it or on the ground that if raised  earlier, the respondent could have shown that  there was  such  an  entry  in the Record  of  Rights  as  to  the transferor’s right to transfer the said lands. The High Court also was not correct in disallowing the  said ,contention  on  the ground that the respondent  could  have shown that he had completed his title to Sch.  B  properties by adverse possession if the said exchange was invalid under s. 27.  Such a plea was in fact raised by the respondent and was  rightly  rejected by the District court on  the  ground that S. 141 of the Limitation Act, 1908 applied and that the suit  having  been filed only two years after the  death  of Nilmoni  Dasi, their claim to a declaration  and  possession was not barred.  A person who has been in adverse possession for  twelve years or more of property inherited by  a  widow from  her husband by any act or omission on her part is  not entitled on that ground to. hold it adversely as against the next  reversioners on the death of such a widow.   The  next reversioner  is  entitled  to  recover  possession  of   the property,  if it is immovable, within twelve years from  the widow’s  death  under  Art. 141.  This rule  does  not  rest entirely on Art. 141 but is in accord with the (1)  [1963] Sup.  1 S.C.R. 13,20,21. 349 principles  of Hindu law and the, general principle that  as the  right  of  a  reversioner is  in  the  nature  of  spes succession  is and he does not trace that title  through  or from  the widow, it would be manifestly unjust if he  is  to lose his right by the negligence or sufferance of the  widow :  (cf.   Kalipada Chakraborti v. Palani  Bata  Devi(1)  and Mulla’s  Hindu Law, 13th ed. 233).  The High Court was  thus in error in disallowing the said contention on either of the two grounds suggested by it. Counsel  for the respondent, however, contended that  s.  27 does   not  in  express  terms  mention  an  exchange   and, therefore, a transaction of exchange was beyond the scope of that section.  Under s. 118 of the Transfer of Property Act, 1882,  a transaction is exchange when two  persons  mutually transfer  the  ownership of one thing for the  ownership  of another  provided  it is not an exchange of money  only.   A transfer  of  property in completion of an exchange  can  be made  only in the manner provided for the transfer  of  such property by sale.  It is not, therefore, right to, say  that an  exchange  does  not involve transfer  of  property  and, therefore,  does  not fall within the scope of  s.  27.   As aforesaid, the language of s. 27(1) is comprehensive  enough to  include  any  agreement or  contract  of  exchange  and, consequently it must be held, given the other conditions  of that  section, that section would apply to a transaction  of exchange.  It is true, that ss. 27 and 28 of the  Regulation were   repealed   by  the  Santal   Tenancy   (Supplementary Provisions)  Act, 14 of 1949.  But s. 27 was in  force  when the  said transaction of exchange was made and governed  the transaction made by Nilmoni Dasi and Premmoyee, Dasi.   That transaction being invalid and void, the fact that s. 27  was subsequently repealed made no difference as the repeal could not  have,  the  effect of rendering  an  invalid  and  void transaction a valid and binding transaction. The  next  contention  was that by reason of s.  11  of  the Regulation, the appellants’ suit was not maintainable as the validity  of  the said exchange could not be agitated  in  a court once the settlement court had made an entry in  regard thereto.  Section 11 laws down that except as provided in s.

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25A no suit shall be filed in any civil court regarding  any matter  decided by any settlement officer and his  decisions and  orders  regarding  the  interests  and  rights   above- mentioned shall have the force of a decree of a court.   But neither  s.  11  nor  s.  25A  of  the  Regulation  has  any application  to  the facts of the instant  case.   The  only effect of s. 1 1 is that a decision of a settlement  officer under  the Regulation has the force of a decree of  a  civil court   and   such  a  decision  can  only   be   challengEd subsequently  in  a  court  of law  to  the  limited  extent provided by s. 25A.  However, the question whether the said (1) [1953] S. C.  R. 503. 12Sup.C.I/68-8 350 exchange  of Sch.  B properties for Sch.  E  properties  was invalid  or  not  by reason of s. 27  was  neither  agitated before,  nor determined by, any settlement officer or  court and,  therefore,  the  bar of s. 1 1  cannot  apply  to  the present  suit.  That being the position, we do not  see  any merit in the contention raised by counsel on the basis of S. II. For  the reasons aforesaid, the High Court was in  error  in interfering with and setting aside the decree passed by  the trial  court  and  confirmed by  the  District  Court.   The District court was also right in holding that in view of the appellants  being entitled to Sch.  B properties, they  were not  entitled to their alternative claim in respect of  Sch. E  properties and that consequently the  successors-in-title of  the  said Premmoyee Dasi would be entitled  to  Sch.   E properties.  We, therefore, allow the appeal, set aside  the judgment and decree passed by the High Court and restore the decree  passed  by  the trial court  and  confirmed  by  the District  court. The respondents will pay to the  appellants the  costs of this appeal and in the High Court.                                    Appeal allowed. G.C. 351