13 January 1988
Supreme Court
Download

S. APPUKUTAN Vs THUNDIYIL JANAKI AMMA & ANR.

Case number: Appeal (civil) 3045 of 1980


1

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 13  

PETITIONER: S. APPUKUTAN

       Vs.

RESPONDENT: THUNDIYIL JANAKI AMMA & ANR.

DATE OF JUDGMENT13/01/1988

BENCH: NATRAJAN, S. (J) BENCH: NATRAJAN, S. (J) MUKHARJI, SABYASACHI (J)

CITATION:  1988 AIR  587            1988 SCR  (2) 661  1988 SCC  (2) 372        JT 1988 (1)   184  1988 SCALE  (1)159

ACT:      Kerala Land  Reforms Act,  1964 as amended by Act 17 of 1972-Explanation Il-A  to clause  (25) of Section 2 of-Scope and effect of.

HEADNOTE: %      These appeals  and Petitions for Special Leave raised a common question  of law  regarding the  scope and  effect of Explanation 11-A  to clause  (25) of section 2 of the Kerala Land Reforms  Act, 1964,  as amended by Act 17 of 1972. What fell for  consideration was whether by reason of Explanation Il-A to  section 2(25) of the Act, a person in occupation of a homestead  or a hut belonging to another during the period stipulated   in    the   Explanation    would    become    a Kudikidappukaran and be entitled to Kudikidappu rights under the Act.      Allowing Civil  Appeal No.  3045 of 1980, allowing C.A. No. 2505  of 1977  partly and  dismissing the  Petitions for Special leave, the Court, ^      HELD: The contentions of the parties in these cases had to be  examined in  the conspectus of the several amendments made by  the legislature to section 2(25) of the Act and the decisions rendered by the Kerala High Court.[669C]      Explanation Il-A has been made a non-obstante provision in order  to give over-riding effect to the Explanation over any judgment. decree or order of any court, passed against a person who  was on  16.8.68 in  occupation of a homestead or hut thereon  and who continued to be in such occupation till the 1st  day  of  January,  1970.  The  Legislature  has  by introducing Explanation II-A done away with any reference to occupation being  referable to any permission granted by the owner of  the land  or the  hut as the case may be. Not only had the  Legislature eschewed  any reference  to  permissive occupation but  had also  given a  mandate that every one in actual occupation of any land and the dwelling house thereon between 16.8.68  and 1.1.70,  irrespective of  who built the dwelling  place,   should  be   granted  recognition   as  a Kudikidappukaran. By  reason  of  this  explicit  provision, there was  no scope whatever restricting the class of person

2

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 13  

entitled to  the benefit  of Explanation  Il-A to only those who were able to prove obtainment of initial permission to 662 occupy a  homestead  or  a  hut  thereon.  Explanation  II-A equates an  occupant of  a homestead or a hut thereon during the relevant period with a Kudikidappukaran as defined under the main  clause. Such being the case, anyone satisfying the requirements of  Explanation  II-A  would  automatically  be entitled to have the status of a Kudikidappukaran and to all the benefits  flowing therefrom.  In other  words, a  person falling under  Explanation II-A has to be statutorily deemed as one permitted to occupy a homestead or the hut thereon as envisaged in  sub-clauses (a)  and (b)  of  clause  (25)  of section 2. The only limitation placed by explanation Il-A is that a  person falling  within the  terms of  the definition should satisfy  the conditions  laid down  by the proviso to the Explanation,  viz. that if he or his predecessor had not constructed  the   dwelling  house,  the  house  should  not costwise exceed  Rs.750 or rentwise exceed a monthly rent of Rs.5 and  the occupant  should not  be in possession of land exceeding three  cents  in  extent  in  any  city  or  major municipality or  five cents in any other municipality or ten cents in  any panchayat  area or township either as owner or as a  tenant on  which he  could erect a building. Viewed in the  proper  perspective,  Explanation  II-A  constitutes  a second limb  of clause (25) of section 2 to give full effect to its  intendment, viz.,  entitling a person to Kudikidappu rights under  section 2(25)  if he proves initial permission to occupy  the land  and the dwelling house without the need of proving  continuous possession during a prescribed period of time  or in  the alternative  to claim Kudikidappu rights under Explanation  lI-A  by  proving  continuous  occupation during the  period of  time prescribed  by  the  Explanation without the  necessity  of  proving  obtainment  of  initial permission  to  occupy  the  land  and  the  dwelling  house thereon. Explanation  II-A has  got operative  force of  its own, which  may be  seen from  the fact  that clause (25) of section 2  as well  as sub-clause  (b)  of  the  proviso  to Explanation II-A  lay down identical conditions which are to be satisfied  by an  applicant under  the main clause or the Explanation for  claiming rights  as a  Kudikidappukaran. If the Explanation was sub-servient to section 2(25), there was no need  for the Legislature to have provided sub-clause (b) of the  proviso to Explanation II-A. There was no repugnancy between the two provisions because section 2(25) pertains to occupants of  homesteads of  one category  while Explanation II-A  pertains   to  homestead   occupants  of  a  different category. [670A-H; 671A-G]      The Kerala  Land Reforms Act was a beneficial enactment intended  to   secure  occupancy   rights  to   farmers  and agricultural labourers  who did not have homestead lands and dwelling places  of their  own for  their occupation. In the case of  beneficial enactments,  the courts  should follow a policy of benevolent and liberal construction. Even if 663 there was any little room for doubt whether Explanation II-A could go  to the  extent of conferring Kudikidappu rights on persons who  were not  able to prove their lawful entry upon the land and the occupation of the dwelling house, it had to be held  that the Explanation had been specifically provided for  giving   greater  thrust   to  the  intendment  of  the legislature, and,  therefore, the  Explanation  warranted  a liberal and  purposive interpretation  so as  to fulfil  the object of  the legislation  and comply  with the legislative intent. [1672G-H; 673G-H; 674A]

3

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 13  

    The attention  of the  Court was drawn to a judgment of this Court  in Palayi Kizhakkekara Methai’s son K. M. Mathew and anr. v. Pothiyill Mommutty’s son Hamsa Haji & Ors., C.A. No. 165  of 1974, etc.-J.T. 1987 (2) S.C. 520, but the Court found no  conflict between  the view  taken by  the Court in these appeals  and the  view taken by this court in C.A. No. 165 of 1974, etc. [675C; 676E]      In  C.A.  No.  3045  of  1980,  the  appellant  was  in possession of  a hut  from 1982  onwards;  nevertheless  his claim for  Kudikidappu rights  under  Explanation  II-A  was rejected as  he was not able to prove grant of permission to him by  the respondent  for occupying  the hut. Since it has been held  by the  Court that  a  claimant  for  Kudikidappu rights under  Explanation  II-A,  who  did  not  suffer  any disqualification under the proviso, needed only to prove the factum of  possession between the prescribed dates for being placed on  par with a Kudikidappukaran as defined in section 2(25) of  the Act,  the appeal had to succeed, with order of the Land Tribunal, restored. [676F-H]      In the  C.A. No.  2505 of  1977, the  appellant claimed Kudikidappu rights  in respect of two sheds set out in A & B Schedules. The  appellant was  not entitled to any relief in respect of  the A  schedule property  because  it  had  been concurrently found  by all  the courts that he had taken the shed on  lease in the year 1954 under rent chit and that the shed continued  to be  in existence  and  it  had  not  been rebuilt by  the appellant.  In respect of the schedule shed, the appellant  had been  denied relief  solely on the ground that he  had failed  to prove  grant of  permission  by  the respondent  and   his  predecessor-in-title  to  occupy  the homestead and  put up  the shed.  In view  of the  factum of occupation  of  the  schedule  property  during  the  period envisaged by Explanation II-A, the appellant was entitled to a decree  in respect  of the  schedule property.  Appeal was partly allowed-in  respect of  the schedule property-and the case, remitted  to the  Land Tribunal  for  determining  the price  of   the  schedule   property  and   for  directions, etc.[677A-D] 664      The Petitions  for Special Leave failed, because it had been concurrently  found that  the  sheds  occupied  by  the respondent in each case were included in the property leased to the  petitioner  though  possession  was  allowed  to  be retained by  the respondents  and as  such, the  respondents were entitled  to claim Kudikidappu rights under Explanation II-A. As  the respondents  had been inducted into possession of the  huts by  the owner  of the  land and  as  the  lease granted to  the petitioner  comprised the  sheds occupied by the respondents  also, the petitioner could not contend that the respondents  were not  entitled to  seek the sale of ten cents of  land adjoining  each hut  under section  80 of the Act. [677E-F]       Velayudhan v. Aishabi, A.I.R. 1981 Kerala 185; Gopalan v. Chellamma, [1966] K.L.T. 673; Mariam and others v. Ouseph Xavier, 1971  K.L.T. 709;  Achutan v.  Narayani Amma, [1980] K.L.T. 160,  A.I.R. 1980  NOC 90; Moideen Kuktty v. Gopalan, [1980] K.L.T.  468; East  End Dwelling  Co. Ltd. v. Finsbary Borough Council,  [1952] AC  109:  M.  K.  Venkatachalam  v. Bombay Dyeing and Manufacturing Co. Ltd., [1959] S.C.R. 703; Commissioner of Income Tax, Delhi v. Teja Singh, A.I.R. 1959 S.C. 355;  Industrial Supplies  Pvt. Ltd. v. Union of India, [1980]  IV   S.C.C.  341;  Jeewanlal  &  Ors.  v.  Appellate Authority, 119841  4 S.C.C.  356; Bharat Singh v. Management of New  Delhi Tuberculosis Centre, New Delhi, & Ors., [1986] 2 SCC  614; Sonawari & Ors. v. Shri Ram & Anr., [1968] 1 SCR

4

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 13  

617; Azad Singh & Ors. v. Barkat Ullah Khan & ors., [1983] 2 SCR 927;  Shri Prithvi  (Cotton Mills  Ltd. & Anr. v. Broach Borough Municipality & Ors., [19701] 1 SCR 388; Hari Singh & Ors. v.  The Military  Estate Officer  & Anr.,  [1973] 1 SCR 515; D.  Cawassi &  Co. Mysore  v. State  of Mysore  & Anr., [1985] 1 SCR 825 and Palavi Kizhakkekara Mathaiy’s son K. M. Mathew & Anr. v. Pothiyill Mommitty’s son Hamsa Haji & Ors., J.T. 1987 2 S.C. 520, referred to.

JUDGMENT:      CIVIL APPELLATE  JURISDICTION: Civil Appeal No. 3045 of 1980 etc.      From the  Judgment and  order  dated  3.6.1980  of  the Kerala High (Court in C.R.P. No. 2711 of 19178      S. Padmanabhan and N. Sudhakaran for the Appellant.      Abdul Khader and K.M.K. Nair for the Respondents.      The Judgment of the Court was delivered by 665      NATARAJAN, J.  The appeals  by special  leave  and  the special leave  petitions raise  a  common  question  of  law regarding the scope and effect of Explanation II-A to Clause (25) of Section 2 of the Kerala Land Reforms Act. 1964, (for short the  Act hereafter)  as amended by Act. 17 of 1972. It is, however,  necessary to  mention two  matters even at the outset of the judgment. Had the judgments in the two appeals been pronounced after the decision in Velayudhan v. Aishabi, AIR 1981  Kerala 185  by a  Full Bench  of the  Kerala  High Court, the results would have been different and there would have been  no  necessity  for  these  appeals  being  filed. Secondly, the  decision in Velayudhan v. Aishabi. has become final since  no appeal  has been  preferred  to  this  Court against the judgment therein.      What falls  for consideration  in all  these  cases  is whether by reason of Explanation IIA to Section 2(25) of the Act, a  person  in  occupation  of  a  homestead  or  a  hut belonging to  another during  the period  stipulated in  the Explanation would become a Kudikidappuka ran and be entitled to Kudikidappu rights under the Act.      For a  proper understanding of the issue. we may make a brief reference  to the  history of  the Legislation  and to some of  the earlier decision of the High Court. Originally. the occupants  of dwelling  houses or huts on homestead land belonging to  others were  only given  a right to remove the materials  of   the  super-structure   put  up  by  them  or alternately  to  seek  monetary  compensation  thereof.  The restricted conferment  of rights  exposed the  occupants  of huts belonging  to others  to  indiscriminate  eviction.  To afford protection  to them,  the erstwhile  Cochin State and the Travancore State passed suitable enactments to safeguard their possession.  Eventually,  when  the  Travancore-Cochin State came  to be  formed, an  Act known  as the Travancore- Cochin Prevention  of Eviction  of Kudikidappukars Act, 1950 was passed.  Even under  that Act, protection was given only to  those  persons  who  had  put  up  the  super-structures themselves and not to persons who were occupying huts put up by the land owners. Protection was extended to that class of persons also  under the  Kerala Stay of Eviction Proceedings Act. 1957.  The said  Act was  amended by the Kerala Stay of Eviction Proceedings  Act, 1958.  This was  followed by  the Kerala Land  Reforms Act,  1964 (the  Act). Clause  (25)  of Section  2   of  the  Act  defined  a  Kudikidappukaran  and Kudikidappu as under:           "25. ’Kudikidappukaran  means  a  person  who  has

5

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 13  

         neither a  homestead nor  any  land  exceeding  in           extent  three   cents  in   any  city   or   major           municipality or five cents in any other 666           municipality or ten cents in any panchayat area or           town ship,  in possession  either as  owner or  as           tenant, on which he could erect a homestead and:                (a) who has been permitted with or without an           obligation to  pay rent  by  a  person  in  lawful           possession  of  any  land  to  have  the  use  and           occupation of  a portion  of  such  land  for  the           purpose of erecting a homestead; or                (b) who  has been  permitted by  a person  in           lawful possession  of any  land to occupy, with or           without an obligation to pay rent, a hut belonging           to such person and situate in the said land;                and ’Kudikidappu’  means  the  land  and  the           homestead or the hut so permitted to be erected or           occupied  together   with  the  easement  attached           thereto."      There were  two Explanation  to Section  2(25). For our purpose, it is enough if we set out Explanation II alone. It read as under:           "Explanation  II".   "Any  person   who   was   in           occupation of  a Kudikidappu  on the  11th day  of           April, 1957,  and who  continued  to  be  in  such           occupation at  the commencement of this Act, shall           be deemed  to be in occupation of such Kudikidappu           with permission  as  required  under  the  clause.           (Emphasis supplied).       In  Gopalan v.  Chellamma, [1966]  K.L.T. 673 Madhavan Nair, J.  of the  Kerala High Court held, without noticing a contrary view  taken in an earlier case in Second Appeal No. 558 of  1961, that  to be  a Kudikidappukaran, the occupancy must have  commenced with the permission of the owner of the land,  that  the  permission  given  should  not  have  been withdrawn or terminated subsequently but must have continued to be  effective till the relevant time, that Explanation II would only  have the  effect  of  extending  the  permission initially granted to the date of the commencement of the Act and that  a trespasser  forcibly entering upon the land will not be entitled to claim rights as a Kudikidappukaran.      Subsequent to  this decision, the Act underwent several amendments under  the Kerala  Land Reforms  (Amendment) Act, 1969. One  of the  changes effected  was the substitution of Explanation II 667 (extracted above) by a proviso which read as under: A           "Provided that  a person  who, on the 16th August,           1968  was  in  occupation  of  any  land  and  the           homestead thereon,  or  in  occupation  of  a  hut           belonging to  any other  person, and who continued           to be  in such  occupation at  the commencement of           the Kerala  Land Reforms  (Amendment)  Act,  1969,           shall be  deemed to  be in occupation of such land           and homestead,  or hut,  as the  case may be, with           permission  as   required  under   this   clause."           (Emphasis supplied).      The proviso  came to  be construed  by Krishna Iyer, J. (as he  then was)  in Mariam  and others  v. Ouseph  Xavier, [19711 K.L.T. 709 and the learned Judge differed only partly from the view taken in Gopalan v. Chellamma (supra) and held that "the  initial leave to occupy is obligatory to make the dweller a  Kudikidappukaran" and  that the  proviso operates only at  the  next  stage  and  hence  such  protection  was

6

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 13  

afforded  only   to  persons   who  had  initially  obtained permission to  occupy the  homestead or hut and continued to be in  occupation till  the  commencement  of  the  Act  but without reference  to any further question as to whether the permission initially  granted continued  to subsist  or  had been subsequently revoked.      After this  decision was rendered, the Legislature once again brought  about certain  amendments to the Act by means of the  Kerala  Land  Reforms  (Amendment)  Act,  1972.  The Legislature omitted  the proviso to Section 2(25) (extracted above) and  introduced Explanation  II-A with  retrospective effect. Explanation II-A is to the following effect:           Explanation Il-A  "Notwithstanding  any  judgment,           decree or order of any court, a person, who on the           16th day of August, 1968, was in occupation of any           land  and  the  dwelling  house  thereon  (whether           constructed by  him or by any of his predecessors-           in-interest or  belonging to any other person) and           continued to  be in  such occupation  till the 1st           day of  January, 1970,  shall be  deemed to  be  a           Kudikidappukaran: (emphasis supplied).           Provided that no such person shall be deemed to be           a Kudikidappukaran-                (a) in cases where the dwelling house had not           been 668           constructed by  such  person  or  by  any  or  his           predecessors-in-interest, if-                (i) such  dwelling house was constructed at a           cost, at the time of construction, exceeding seven           hundred and fifty rupees; or                (ii) such  dwelling house  could have, at the           time  of  construction,  yielded  a  monthly  rent           exceeding five rupees; or                (b) if  he has a building or is in possession           of any land exceeding in extent three cents in any           city or  major municipality  or five  cents in any           other municipality  or ten  cents in any panchayat           area or  township, either  as owner or as ten ant,           on which he could erect a building.       The scope and effect of Explanation II-A introduced by the Amending  Act of 1972 came to be construed by a Division Bench of the Kerala High Court in Achuthan v. Narayani Amma, [1980] K.L.T.  160: AIR 1980 NOC 90. The Bench held that the effect of  Explanation II-A  is to  dispense with  proof  of permissive  occupation,  either  in  sup  port  or  rebuttal thereof, and  that even  in the  absence of  such proof  and without any  enquiry as  regards the  original occupation, a person who  satisfies the  conditions mentioned  therein and does not fall within the ambit of the proviso thereto has to be deemed  a Kudikidappukaran.  However, in Moideenkuktty v. Gopalan, [1980]  K.L.T. 468  another Division  Bench took  a contrary view  and held that the legal fiction which had all along existed  right from  1955 under  Section 4(2)  of  the Travancore-Cochin Act, 1955, Explanation II to Section 2(20) of the  Agrarian Relations  Act,  1961,  Explanation  II  To Section 2(25)  of the  Kerala Land Reforms Act, 1964 and the proviso thereto  as inserted  by the  Amending Act, 1969 was only intended  to protect  a Kudikidappukaran  who began his occupation of a Kudikidappu with permission by providing for the statutory  continuance of the permission initially given till  the  commencement  of  each  of  the  above  mentioned Statutes and  the Explanation  II-A introduced  by Act 17 of 1972 had  not altered  or widened the legal fiction so as to cover  a   case  of  initial  permission  also.  The  Bench,

7

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 13  

therefore,  held   that  unless   initial   permission   for occupation of a homestead or hut is established, Explanation II-A will  not be  attracted.  It  was  on  account  of  the conflicting views  taken by  the  two  Division  Benches  in Achuthan’s case (supra) and Moideenkukutty’s case (supra), a reference was made to a Full Bench for decision 669 of the  case in  Velayudhan & Ors. v. Aishabi & Ors. (supra) The Full Bench, after elaborately tracing the history of the Legislation  and   considering  the  changes  brought  about periodically by the Legislature to confer Kudikidappu rights on occupants  of  homesteads  and  huts  and  reviewing  the earlier decisions,  came to  the conclusion that Explanation II-A could  be treated  as an  addendum to  Section 2(25) in order to  widen the  definition or alternately Section 2(25) can be treated as the main provision and Explanation II-A as an exception  thereto. In  that view of the matter, the Full Bench held that the decision in Achuthan’s case (supra) laid down the  correct law and the view taken in Moideenkukutty’s case was not sustainable.      It is  in the conspectus of the several amendments made by the  Legislature to  Section 2(25)  of the  Act  and  the decisions rendered  by the  Kerala High  Court, we  have  to examine the  contentions of  the counsel  for the appellants and the  respondents in  the respective  appeals.  The  Full Bench of the Kerala High Court has analysed the position and summed up  its view  in the  following manner  regarding the purpose underlying  the changes brought about in the Act and the new  dimension that  has now  been given  by Explanation II-A to  Section 2(25). The relevant passage in Velayudkan’s case (supra)  occurs in  para 24  at page  192 of the report (AIR 1981 Kerala 192) and is as follows:           "When the  words ’in  occupation of a Kudikidappu’           in Explanation  II to Sec. 2(25) in the K.L.R. Act           as originally enacted was held by this Court to be           suggestive of  the need  for the  person  claiming           Kudikidappu right  thereunder to  prove permissive           occupation as  on the  relevant  date  (11.4.1957)           thereunder,  the   legislature  omitted  the  word           "Kudikidappu", and  resorted to the terminology of           ’in occupation  of  any  land  and  the  homestead           thereon, or in occupation of a hut .......’ in the           proviso  to   Section  2(25)  as  amended  by  the           Amending Act,  1969. When  this Court  pointed out           that still  the emphasis  of the fiction is on the           permissive aspect  of occupation  and not  on  the           status of the person as Kudikidappukaran, and that           the words  ’homestead’ and ’hut’ are indicative of           the requirement  that permissive  occupation as on           the  relevant   date   (16.8.1968)   has   to   be           established, the  legislature reacted  by omitting           the words  ’homestead’ and  ’hut’ from the fiction           and   laying    stress   on    the    status    as           Kudikidappukaran by  enacting Explanation  II-A to           Section 2(25) of the K.L.R. Act as per the. K.L.R.           (Amending) Act, 1972." 670      At the outset it has to be pointed out that Explanation II-A has been made a non-obstante provision in order to give over-riding effect  to the  Explanation over  any  judgment, decree or  order of  any Court  passed against  a person who was, on  16.8.1968 in  occupation  of  a  homestead  or  hut thereon and  who continued to be in such occupation till the 1st day  of January  1970. Now, if we look at Explanation II to Section  2(25) as  it originally  stood and  the  proviso

8

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 13  

which  replaced  it  under  the  1969  (Amendment)  Act  and Explanation II-A  which was  introduced by  the amending Act 1972, we  may notice  the significant  changes made  by  the Legislature  and   the  underlying   reasons  therefor.   In Explanation  II,  it  was  laid  down  that  any  person  in occupation of  a Kudikidappu  during the  prescribed  period viz. 11.4.1957 to the date of commencement of the Act "shall be deemed  to be  in occupation  of  such  Kudikidappu  with permission as required under this clause". Since it was held in Gopalan’s  case (supra)  that the  use of  the words  "in occupation of  a Kudikidappu  with permission", obligated an occupant of  a Kudikidappu  to prove  initial permission  to enter a homestead or occupy a hut on the land of another and further  prove  continuance  of  such  permission  till  the relevant   date,    the   Legislature   omitted   the   word "kudikidappu"  in  the  proviso  that  was  substituted  for Explanation II  under the  1969 Amendment Act. Even then, it was held  in Mariam’s  case (supra)  that initial  leave  to occupy was obligatory to make an occupant a Kudikidappukaran because of the use of the words "with permission as required under the  clause"  in  the  proviso.  Therefore,  what  the Legislature has  done while  introducing Explanation  by the 1972 Amendment  Act is  to do  away with  any  reference  to occupation being  referable to any permission granted by the owner of  the land  or the  hut as the case may be. Not only has the  Legislature eschewed  any reference  to  permissive occupation but  has also  given a  mandate that  everyone in actual  occupation  of  any  land  and  the  dwelling  house thereon,  between   the   dates   16.8.1968   to   1.1.1970, irrespective of  who built  the  dwelling  place,  shall  be granted recognition  as a  Kudikidappukaran. The  words used are "the  person .. in occupation .... shall be deemed to be a Kudikidappukaran."  By reason  of this explicit provision, there is  no scope  whatever for  restricting the  class  of persons entitled  to the benefit of Explanation II-A to only those who are able to prove obtainment of initial permission to occupy  a homestead  or a  hut thereon.  Explanation II-A equates an  occupant of  a homestead or a hut thereon during the relevant period with a Kudikidappukaran as defined under the main  clause. Such being the case, anyone satisfying the requirements of  Explanation  II-A  would  automatically  be entitled to have the status of a Kudikidappukaran and to all the benefits flowing therefrom. In other 671 words, a  person falling  under Explanation  II-A has  to be statutorily deemed as one permitted to occupy a homestead or the hut  thereon as  envisaged in Sub-Clauses (a) and (b) of Clause(25) to  Section 2.  The  only  limitation  placed  by Explanation II-A  is that  a person falling within the terms of the definition should satisfy the conditions laid down by the proviso  to the  Explanation viz.  that  if  he  or  his predecessor had  not constructed  the  dwelling  house,  the house should not costwise exceed Rs.750 or rentwise exceed a monthly rent  of Rs.5  and the  occupant should  not  be  in possession of  land exceeding  three cents  in extent in any city or  major municipality  or  five  cents  in  any  other municipality or  ten cents in any panchayat area or township either as  owner or  as a  tenant on  which he could erect a building. viewed in the proper perspective, Explanation II-A constitutes a  second limb  of  Clause  (25)  of  Section  2 devised by  the Legislature  to  give  full  effect  to  its intendment viz.  entitling a  person  to  claim  Kudikidappu rights under  Section 2(25)  if he proves initial permission to occupy  the land  and the dwelling house without the need of proving  continuous possession during a prescribed period

9

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 13  

of time  or in  the alternative  to claim Kudikidappu rights under Explanation  II-A  by  proving  continuous  occupation during the  period of  time prescribed  by  the  Explanation without the  necessity  of  proving  obtainment  of  initial permission  to  occupy  the  land  and  the  dwelling  house thereon. Explanation II-A has got operative force of its own and this  may be  seen from  the fact  that Clause  (25)  of Section 2  as well  as Sub-Clause  (b)  of  the  proviso  to Explanation II-A  lay down identical conditions which are to be satisfied  by an  applicant under  the main clause or the Explanation for  claiming rights as a Kudikidappukaran. Both the provisions  lay down  that any  claimant for Kudikidappu rights should  not have a homestead or any land exceeding in extent three cents in any city or major municipality or five cents  in  any  other  municipality  or  ten  cents  in  any panchayat area or township in his possession either as owner or tenant  on which  he could  erect  a  homestead.  If  the Explanation is  subservient to  Section 2(25),  there was no need for the Legislature to have provided- Sub Clause (b) to the proviso  to Explanation  II-A. There  is  no  repugnancy between the two provisions because Section 2(25) pertains to occupants of  homestead of  one category  while  Explanation II-A  pertains   to  homestead   occupants  of  a  different category.      By introducing  Explanation II-A,  the Legislature  has created a  statutory fiction.  As to  how statutory fictions are to  be interpreted  is by now well-settled. The approach formulated by  Lord Asquith in East End Dwelling Co. Ltd. v. Finsbary Borough Council, [1952] AC 109 has been approved by this Court in a number of cases. The line of 672 approach set out by Lord Asquith is as under:           "If you  are bidden to treat an imaginary state of           affairs  as   real,  you   must   surely,   unless           prohibited from doing so, also imagine as real the           consequences and  incidents which  if the putative           state  of   affairs  had  in  fact  existed,  must           inevitably have  flowed from  or accompanies  it..           The statute  says that  you must imagine a certain           state of affairs; it does not say that having done           so, you  must cause  or permit your imagination to           boggle when it comes to the inevitable corollaries           of that state of affairs. "      This line of approach has been adopted by this Court in a number of cases and we may refer only to some of them. See M.K. Venkatachalam  v Bombay  Dyeing and  manufacturing  Co. Ltd., [1959]  SCR 703:  AIR 1958  SC  875;  Commissioner  of Income Tax,  Delhi  v.  Teja  Singh,  AIR  1959  SC  355  In Commissioner of  Income Tax,  Delhi v.  Teja Singh  (supra), this Court  pointed out that "it is a rule of interpretation well-settled that  in  construying  the  scope  of  a  legal fiction it  would be proper and even necessary to assume all those facts  on which  alone the  fiction can  operate."  In Industrial supplies  Pvt. Ltd.  v. Union of India, [1980] IV SCC 341, this Court observed as follows:           "It is  now axiomatic that when a legal fiction is           incorporated  in  a  statute,  the  court  has  to           ascertain for what purpose the fiction is created.           After ascertaining  the purpose,  full effect must           be given to the statutory fiction and it should be           carried to  its logical  conclusion. The court has           to assume all the facts and consequences which are           incidental or  inevitable  corollaries  to  giving           effect to  the fiction.  The legal  effect of  the           words ’as  if he  were’ in the definition of owner

10

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 13  

         in Section  3(n) of  the Nationalisation  Act read           with  Section  2(1)  of  the  Mines  Act  is  that           although the petitioners were not the owners, they           being the  contractors for the working of the mine           in question, were to be treated as such though, in           fact, they were not so."       It  has also  to be borne in mind that the Kerala Land Reforms Act  is a  beneficial enactment  intended to  secure occupancy rights  to farmers  and agricultural labourers who do not have homestead lands and dwelling places of their own for their  occupation. Incidentally, we may mention that Act 17 of  72 has been subsequently included in the 9th Schedule to the Constitution and this would reflect in fuller mea- 673 sure the anxiety of the Legislature to protect the rights of occupants of  homestead and  huts thereon.  In the  case  of beneficial enactments  the courts  should follow a policy of benevolent and  liberal construction. In Jeewanlal & Ors. v. Appellate Authority,  [1984] 4  SCC 356  it was  observed as follows:           "In construing  a social  welfare legislation, the           court  should   adopt   a   beneficent   rule   of           construction; and  if a  section is capable of two           constructions,   that   construction   should   be           preferred which fulfils the policy of the Act, and           is  more   beneficial  to  the  persons  in  whose           interest the  Act has  been passed. When, however,           the language  is plain  and unambiguous, the Court           must  give  effect  to  it  whatever  may  be  the           consequence, for,  in that  case, the words of the           statute speak  the intention  of the  Legislature.           When the  language is  explicit, its  consequences           are for  the Legislature and not for the courts to           consider.  The   argument  of   inconvenience  and           hardship is a dangerous one and is only admissible           in construction where the meaning of the status is           obscure and there are two methods of construction.           In their  anxiety to advance beneficent purpose of           legislation, the  courts must  not  yield  to  the           temptation of  seeking  ambiguity  when  there  is           none. In Bharat  Singh v.  Management of  New  Delhi  Tuberculosis Centre, New  Delhi &  Ors., [1986]  2 SCC 614, the abovesaid policy was reiterated in the following words:           "Now it  is trite to say that acts aimed at social           amelioration giving  benefits  for  the  have-nots           should receive  liberal construction. It is always           the duty  of the court to give such a construction           to a  statute as  would  promote  the  purpose  or           object of  the Act.  A construction  that promotes           the purpose of the legislation should be preferred           to a  literal construction.  A construction  which           would defeat  the rights  of the  have-not and the           underdog and  which would lead to injustice should           always be avoided."      Therefore, even  if there  is any little room for doubt whether Explanation  II-A can go to the extent of conferring Kudikidappu rights  on persons  who are  not able  to  prove their lawful  entry upon  the land  on the occupation of the dwelling house,  it has  to be held that the Explanation has been specifically provided for giving greater thrust to 674 the  intendment  of  the  legislature  and,  therefore,  the Explanation warrants  a liberal and purposive interpretation so as  to fulfil  the object  of the  legislation and comply

11

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 11 of 13  

with the legislative intent.      Mr. Abdul  Khader, learned  counsel for  the respondent however sought  to contend,  that whichever  way Explanation II-A is  construed i.e.  whether as  a legal fiction or as a re-enacted provision  of  substantive  law  the  Explanation would  still   be  trammelled   by  the  basic  prescription contained  in   the   main   clause   regarding   permissive occupation. The  counsel argued  that so long as clause (25) of Section  2 continued  to define  a Kudikidappukaran  as a person "who  has been  permitted ..  by a  person in  lawful possession .. to have the use and occupation of a portion of the land  for  the  purposes  of  erecting  a  homestead/hut belonging to  him in  the said  land", the Explanation would necessarily be  governed and  controlled  by  the  words  in Clause (25) of Section 2 and as such even if a person was in occupation  of   a  homestead  or  hut  between  the  period 16.8.1968 to  1.1.1970 he  will not  be  entitled  to  claim rights as  a Kudikidappukaran  unless he  is able  to  prove grant of  initial permission by the owner of the land or the hut, as  the case  may be. It was argued that it was not the intention of  the  legislature  to  confer  Kudikidappukaran rights  on   trespassers  and  unauthorised  occupants.  Our attention was  drawn to  the decisions in Sonawati & Ors. v. Shri Ram  & Anr.,  [1968] 1 SCR 617, and Azad Singh & Others v. Barkat  Ullah Khan  & others,  [1983] 2 SCR 927. In these decisions the  words "Cultivatory  possession" occurring  in the U.P. Zamindari abolition & Land Reforms Act and the U.P. Land Reforms  (Supplementary) Act have been held to refer to lawful possession and as such they would not, cover the case of a  trespasser upon the land. These decisions can be of no avail in  this case because Explanation II-A has avoided any reference to  permissive occupation  and has  straight  away equated an  occupant of  a homestead  during the  prescribed period with  a  Kudikidappukaran  as  defined  in  the  main clause. The  Explanation has  to be interpreted in the light of the  words used by the legislature and having in mind the object sought  to be  achieved and  the evil  sought  to  be remedied by the Act      Mr.   Abdul    Khader   alteratively   contended   that Explanation  II  A  should  be  construed  as  a  validating provision introduced  by the  legislature  to  overcome  the limitations noticed  by  the  Courts  in  the  corresponding provisions in  the  previous  enactments  and  as  such  the validation exercise  cannot be  given acceptance  unless the validating law  satisfied the tests prescribed therefor. The learned  counsel  referred  to  certain  decisions  in  this behalf. viz. Shri Prithvi Cotton Mills 675 Ltd. &  Anr. v. Broach Borough Municipality & Ors., [1970] 1 SCR 388;  Hari Singh  & Ors.  v. The Military Estate officer and Anr.,  [1973] 1  SCR 515  and D. Cawassi & Co. Mysore v. The State  of Mysore  & Anr.,  [1985] 1 SCR 825: AIR 1984 SC 1980 and  argued that a validating law can be upheld only if the legislature has competence to legislate over the subject matter and secondly, only if the legislature has removed the defects noticed  by the  Courts in  the previous  law.  This argument fails  to take  note of  the significant change the legislature has  made in the wording of Explanation II-A. It is therefore futile to contend that Explanation II-A suffers from  the  same  limitations  the  earlier  provisions  were thought to suffer from.      After the arguments were concluded, learned counsel for the respondents  have circulated  a copy  of the judgment of this Court  in C.A. No. 165 of 1974 etc. Palayi Kizhakkekara Mathaiy’s son  K.M. Mathew & Anr. v Pothiyill Mommutty’s son

12

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 12 of 13  

Hamsa Haji  & Ors.,  JT 1987 2 SC 520 delivered on 29.4.1987 wherein Section  7D of  the Kerala Land Reforms Act, 1963 as amended by the Kerala Land Reforms (Amendment) Act, 1969 has been interpreted  as conferring  benefit thereunder  only on persons  whose   occupation  of   the  private   forests  or unsurveyed lands  had a  lawful origin and not on persons in unlawful  occupation  based  on  trespass  or  forcible  and unlawful entry.  We have  carefully considered  the judgment and find  that the pronouncement therein does not in any way lend support  to the  contentions of the respondents herein. The scheme  of Sections  7A, 7B, 7C, 7D, 8 & 9 of the Kerala Land Reforms  Act,  1963  is  entirely  different  and  this position is  succinctly brought out by the following passage in the  decision referred  to above. The Court had summed up the scheme of the Act in the following words:           "On  a   careful   scrutiny   of   the   aforesaid           provisions, it  becomes abundantly  clear that the           intention  of   the  legislature   was  to   grant           protection only  to persons whose possession had a           lawful origin  in the  sense that  they had either           bona fide  believed the  lands to  be Government’s           land of  which they could later seek assignment or           had taken the lands on lease from person whom they           bona fide  believed to  be competent to grant such           leases  or  had  come  into  possession  with  the           intention of  attorning to the lawful owners or on           the basis  of arrangements  like varam  etc. which           were only in the nature of licences and fell short           of a  leasehold  right.  It  was  not  within  the           contemplation of  the legislature  to  confer  the           benefit of protection on persons 676           who had  wilfully trespassed  upon lands belonging           to others and whose occupation was unlawful in its           origin. The  expression "in  occupation" occurring           in Section  7D must  be construed  as meaning  "in           lawful occupation."      The clear  finding in  that case was that the appellant had claimed title on the basis of adverse possession and his own plea  was that  he had come into possession of the lands by trespass. He was therefore, far removed from the class of persons whom  the Legislature  wanted to  provide  for  viz. persons who had entered upon land under a bona fide mistaken belief that the land belongs to Government and is capable of assignment or  that the  land belongs  to the person who had granted them  lease etc.  The entry  was, therefore,  linked with a bona fide belief though mistaken, about the character of the  land and hence a trespasser is not entitled to claim any benefit.  But in so far as Section 2(25) and Explanation II-A of  the Act are concerned the occupant of the homestead or hut  is not  enjoined  to  prove  that  he  occupied  the homestead or  hut under a bona fide mistaken belief and that he was  not a  trespasser. He need only prove under the main clause that he had been permitted to occupy the homestead or hut  and   under  Explanation  II-A  that  he  had  been  in continuous occupation from 16.8.1968 to 1.1.1970. Presumably the Legislature  has thought that an occupant of a homestead or a hut would not have been allowed to remain in occupation for so  long if  he was a trespasser. There is therefore, no conflict between  the view  taken by us in these appeals and the view taken by this Court in CA No. 165/74 etc. (supra)      Having settled  the question  of law  we will  now deal with the  appeals and  the Special  Leave Petitions on their merits. In  C.A. No.  3045 of  1980 it  was found  that  the appellant was  in possession  of a  hut from  1962  onwards.

13

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 13 of 13  

Nevertheless  his   claim  for   Kudikidappu  rights   under Explanation II-A  was rejected  as he  was not able to prove grant of  permission to  him by the respondent for occupying the hut.  Since we have held that a claimant for Kudikidappu rights under  Explanation II-A,  who  does  not  suffer  any disqualification under  the proviso,  need  only  prove  the factum of  possession between the prescribed dates for being placed on  par with a Kudikidappukaran as defined in Section 2(25) of  the Act,  the  appeal  has  to  succeed  and  will accordingly stand  allowed. Consequently,  the order  of the Land Tribunal  Telicherry in  O.A. No. 22 of 1973 will stand restored but  having  regard  to  the  lapse  of  time,  the appellant is  directed to  pay the entire amount towards the value of  the hut  and  the  land,  as  fixed  by  the  Land Tribunal, within three months from today. 677      As regards C.A. No. 2505 of 1977, the appellant claimed Kudikidappu rights in respect of two sheds set out in plaint A  &  schedules.  In  so  far  as  A  schedule  property  is concerned, the  appellant is  not  entitled  to  any  relief because it  has been  concurrently found  by all  the Courts that he had taken the shed on lease in the year 1954 under a rent chit for running a tea shop and that the shed continued to be  in existence  and it  had not  been  rebuilt  by  the appellant. However,  in so  far as  the  shed  comprised  in schedule is  concerned, the appellant has been denied relief solely on  the ground  that he  had failed to prove grant of permission by  the respondent  and his predecessors-in-title to occupy  the homestead  and put up the shed. Having regard to the  factum of occupation of the schedule property during the period  envisaged by  Explanation II-A,  it follows that the appellant  is entitled  to a  decree in  respect of  the schedule property.  The appeal is, therefore, partly allowed in so  far as the schedule property is concerned. The matter will stand  remitted to  the Land  Tribunal  Telicherry  for determining the  price of  the  schedule  property  for  the directions regarding  the manner in which the purchase price should be paid by the appellant      Special Leave  Petitions 204 & 205 have to fail because it has  been concurrently  found that  the sheds occupied by the respondent  in each  case were  included in the property leased to the petitioner though possession was allowed to be retained by the respondents, and as such the respondents are entitled to  claim Kudikidappu rights under Explanation II-A of Section  2(25) of  the Act  As the  respondents had  been inducted into  possession of  the huts  by the  owner of the land and  as the  lease granted  to the petitioner comprised the sheds  occupied by  the respondents also, the petitioner cannot contend that the respondents are not entitled to seek the sale  of ten  cents of  land adjoining  each  hut  under Section 80B  of the  Act. Hence  the Special Leave Petitions are dismissed.      There will  be no  order as  to costs in the appeals as well as the special leave petitions. S.L.                         Appeals and Petitions dismissed 678