26 March 1987
Supreme Court
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SHER SINGH & ORS. Vs FINANCIAL COMMISSIONER OF PLANNING,PUNJAB & ORS.

Bench: KHALID,V. (J)
Case number: Appeal Civil 341 of 1973


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PETITIONER: SHER SINGH & ORS.

       Vs.

RESPONDENT: FINANCIAL COMMISSIONER OF PLANNING,PUNJAB & ORS.

DATE OF JUDGMENT26/03/1987

BENCH: KHALID, V. (J) BENCH: KHALID, V. (J) OZA, G.L. (J)

CITATION:  1987 AIR 1307            1987 SCR  (2) 691  1987 SCC  (2) 439        JT 1987 (2)    63  1987 SCALE  (1)644

ACT:     Punjab  Reorganisation Act, 1966 sections 88 and 89  and the  Haryana Adaptation of Laws (States and Concurrent  Sub- jects)  Order  1968,  clauses 10 and 11,  scope  and  effect of--Whether  orders passed by an Authority which has  become final would continue after reorganisation.     Punjab Security of Land Tenures Act, 1930, sections 9(1) (i), 10A(a), 10A(b) and 10B--Rights and duties under--Effect of the order passed thereunder.

HEADNOTE:     Balwant Singh was a displaced person from West Pakistan. He  owned  in all 67 standard acres of land  distributed  in various  villages. On 8.11.1960 when proceedings  under  the Punjab  Security of Land Tenures Act, 1930  were  initiated, the  Special Collector, Punjab, declared 29  standard  acres belonging to him as surplus area. While doing so, the trans- fers  made by him were ignored. He had an option  to  choose the  property  which  fell to his share. He  opted  for  the entire land belonging to him and situated in village  Semani as  his  permissible area and did not opt for  any  area  in Mohamad  Pera,  District Ferozepure. The  Special  Collector reserved for him about 18 standard acres out of his  holding in village Dhav Kharial in order to make up his  permissible area  of  50 standard acres. This part of the order  of  the Special Collector became final.     On  1.11.1966, the Punjab Reorganisation Act, 1966  came into force and as a result thereof, the original  properties that belonged to Balwant Singh fell within the new State  of Punjab  and  the  new State of Haryana.  In  December  1966, Balwant Sigh, his wife and his minor son filed a writ  peti- tion for the issuance of necessary directions to the  States of  Punjab and Haryana restraining them from  utillsing  the surplus area declared by the Special Collector by his  order dated  8.11.1960.  A learned Single Judge repelled  all  the following  three  contentions;  (1) that  after  the  States Reorganisation,  persons owning lands both in the  State  of Punjab and Haryana could claim that they should be allowed 692 permissible  area  in both the States separately;  (2)  that orders passed regarding surplus area prior to 1st  November,

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1966, and which area had not been utilised till then, should be  deemed to have no effect; and (3) that  the  proceedings declaring  surplus land were bad for want of notice  to  the transferees.     When  the  matter was taken up in appeal,  the  Division Bench  felt  that  an important question  was  involved  and therefore  referred  the appeal to a Full  Bench.  The  Full Bench  considered  the matter in detail and  held  that  the order  declaring  the area to be surplus passed  before  Ist November,  1966,  would continue to have effect  after  that date,  even if that order had not been implemented and  per- sons owning land in the newly created States is not, in law, entitled  for a separate allotment under the Act. Hence  the appeal by certificate. Dismissing the appeal, the Court,     HELD:  1.1  Under the scheme of the Punjab  Security  of Land Tenure Act, 1930, It is the entire holding of a  person on 15th April, 1953, that is to be taken into  consideration for  determining his surplus area. The  Government  acquires the  right to utilize the surplus area of a  person  against whom an order of declaration has been made for the resettle- ment of tenants ejected or to be ejected. [696D-E]     1.2  It is true that alongwith the order  declaring  the land of an owner as surplus, a corresponding right and  duty accrues  to the Government to utilise the surplus  area  for the re-settlement of tenants. In other words, the rights  on the land declared as surplus get vested in the Government to be  distributed amongst the tenants for re-settlement.  This is an indefeasible right that the Government secures. There- fore, the appellant cannot get back the land, if the surplus land had not been utilised. [697A-C]     1.3  There is nothing in the Act which imposes any  time limit for the government to utilise the land for the purpose mentioned  in the Act. Nor is there any  provision  enabling the  owner of the land to claim back the land and to get  it restored to him if utilization is not made by the government within a specified period. All that the Act contains by  way of  exception is what is seen in section 10A(b). If  at  the time of the commencement of the Act, the land is acquired by the  government under the relevant acquisition laws or  when it is a case of inheritance, the owner could claim exclusion of such land from his land for fixation of his ceiling under the Act. The second exception itself is further lettered 693 by  the provision in section lOB that where  succession  had opened  after the surplus area or any part thereof had  been utilised  under  section  10A(a), the  saving  specified  in favour of an heir by inheritance would not apply in  respect of the area so utilised. To put it short, the government had under  the  Act an unfettered right without  time  limit  to utilise the land for re-settlement of tenants subject to the two  exceptions. Though it is desirable  that  re-settlement should be done as expeditiously as possible, inaction on the part  of  the government to resettle the  tenants  will  not clothe  the owner with a power for restoration of the  land. [697B-F]     2.1  The appellant is not entitled to have the  best  of the two worlds; in other words to have his quota of full  50 acres in Punjab and another 50 acres in Haryana, this is  so because  Section 88 of the Punjab Reorganisation  Act,  1966 makes the provisions of the Act which was applicable to  the old  State  of  Punjab would continue to apply  to  the  new State.  In other words, the order passed  before  1.11.1966, which  became  final, declaring the surplus  area  would  be given effect to and the order would be implemented  uninflu-

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enced by the division of the State. [697F-G; 698B]     2.2  A  combined  reading of clauses 10 and  11  of  the Haryana Adaptation of Laws (States and Concurrent  Subjects) Order,  1968  also  makes it clear that any  order  made  or anything  done or any liability incurred or a right  accrued before  the 1st November, 1966 would not be affected by  the coming into force of the order. [698G-H]     2.3  Clauses 10 and 11 show unambiguously that  the  re- spective State Governments would be entitled to give  effect to  orders passed before 1st November, 1966,  declaring  the surplus area by utilising them for the re-settlement of  the tenants, despite the re-organisation of the State of Punjab. The orders passed will be respected by both the States.  The fact  that the land belonging to a particular  owner,  under fortuitous  circumstances,  fail  in the  two  newly  formed States,  will  not in any way affect the  operation  of  the orders  which had become final prior to 1st November,  1966. To accept the appellant’s contention would create anomalies. Persons  against whom proceedings under the Act  were  taken and  became  final  prior to 1st November,  1966,  would  be entitled to claim lands in both the States wile those  whose petitions are pending on the date the States Re-organisation Act came into force would be in a disadvantageous  position. This is not the object of the Act. Nor the scheme behind it. The  States re-organisation was a historical  accident.  The land  owners cannot take advantage of this accident, to  the detriment  of ejected tenants or tenants in need of  re-set- tlement. [698H; 699A-C] 694

JUDGMENT:     CIVIL  APPELLATE JURISDICTION: Civil Appeal No.  341  of 1973.     From  the  Judgment  and Order dated  26.2.1971  of  the Punjab and Haryana High Court in L.P.A. No. 566/1968. Harbans Singh for the Appellants. R.S. Sodhi and S.K. Sinha for the Respondents. The Judgment of the Court was delivered by     KHALID, J. This is an appeal by certificate against  the Judgment  of  a full bench of the Punjab  and  Haryana  High Court  dated 20th November, 1970. The question  involved  in this  appeal  is ingenious but untenable. The  question  re- ferred to the full bench reads as follows:               "Whether  after  the  re-organisation  of  the               State of Punjab the land owners owning land in               both  the  States of Punjab  and  Haryana  can               claim  to retain the permissible area in  each               State separately after 1st of November,  1966.               If so, whether an order declaring the area  to               be  surplus  passed prior to  the  date  above               said, but which order has not been implemented               and  the surplus land so declared has  not  in               fact  been  utilised would  continue  to  have               effect after said date?" Now  the  facts. Balwant Singh was a displaced  person  from West  Pakistan.  He owned in all 67 standard acres  of  land distributed  in  various villages. According to him  he  had sold  some  properties  to strangers and  the  remaining  in favour  of his wife and minor son in 1957. On 8th  November, 1960,  when  proceedings under the Punjab Security  of  Land Tenures  Act, 1930 (for short the Act) were  initiated’  the Special  Collector, Punjab, declared 29 standard  acres  be- longing  to him as surplus area. While doing so, the  trans-

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fers  made by him mentioned above, were ignored. He  had  an option  to choose the property which fell to his  share.  He opted  for the entire land belonging to him and situated  in village  Samani as his permissible area and did not opt  for any  area in Mohamad Pera, District Ferozepore. The  Special Collector  reserved for him about 18 standard acres  out  of his holding in village Dhab Kharial in order to make up  his permissible  area  of 50 standard acres. This  part  of  the order of the Special Collector, though 695 challenged  in  appeal, was confirmed by  the  Commissioner, Jullundar  Division on 5th January, 1965, since  the  appeal before  him was held to be barred by limitation. The  appel- lant  pursued the matter before the Financial  Commissioner, Planning,  Punjab,_by filing a revision. This was  dismissed on 19-2-1965.     On  1st November, 1966, the Punjab Re-Organisation  Act, 1966, (for short, Re-organisation Act) came into force.  The State of Punjab was distributed under the Act to the present State of Punjab, State of Haryana, Union Territory of Chand- igarh and Union Territory of Himachal Pradesh. In  December, 1966, Balwant Singh, his wife and his minor son filed a writ petition  for  the issuance of necessary directions  to  the States of Punjab and Haryana restraining them from utilising the  surplus area declared by the Special Collector  by  his order dated 8-11-1960. It is relevant to note here that  the original properties that belonged to him fell within the new State of Punjab and the new State of Haryana.     The  matter  came  before a learned  Single  Judge.  The following  questions were raised before him: (1) That  after the States Reorganisation, persons owning lands both in  the State of Punjab and Haryana could claim that they should  be allowed permissible area in both the States separately,  (2) that  orders  passed  regarding surplus area  prior  to  1st November,  1966, and which area had not been  utilised  till then,  should be deemed to have no effect and (3)  that  the proceedings  declaring  surplus land were bad  for  want  of notice  to the transferees. These contentions were  repelled by the learned Single Judge.     He took the matter in appeal. The Division Bench  before whom  the appeal was posted felt that an important  question was  involved and therefore referred the appeal to a  larger bench.     The full Bench considered the matter in detail and  held that  the  order  declaring the area to  be  surplus  passed before  1st  November, 1966, would continue to  have  effect after that date, even if that order had not been implemented and persons owning land in the newly created States is  not, in law, entitled for a separate allotment under the Act.  It is this conclusion of the Full Bench that is assailed before us on the strength of a certificate issued by the Court     Balwant Singh had more than the permissible area,  viz., 50 standard acres with him. The excess area was liable to be declared  as surplus. Surplus area was declared by the  Spe- cial Collector, by his 696 order dated November 8, 1960. It was confirmed in appeal and in  revision. The revisional order is dated  19th  February, 1965, that is before 1st November 1966, when the  Re-organi- sation Act came into force. As indicated above, by virtue of the  Re-organisation of the two States, a part of his  hold- ings  fell  in  the territory of the State  of  Haryana  and another part in the State of Punjab. He evolved a contention that he could have 50 standard acres of land in each of  the two States. On this basis, he questioned the order dated 8th

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November.,  1960. He supported this argument with the  addi- tional plea that the said order had not been implemented and the land declared surplus not utilised.     The  question that fell to be decided by the full  Bench was whether the order which had become final would  continue to  have  effect after the date of enforcement  of  the  Re- organisation  Act when that order had not been given  effect to and the surplus area had not been utilized by the Govern- ment.     Under the Scheme of the Act, it is the entire holding of a  person  on  15th April, 1953, that is to  be  taken  into consideration for. determining his surplus area. The Govern- ment  acquires  the right to utilize the surplus area  of  a person  against whom an order of declaration has  been  made for  the resettlement of tenants ejected or to  be  ejected. Sections 9(1)(i) and 10A(a), which read as follows, make the position clear:               "9(1).  Notwithstanding anything contained  in               any other law for the time being in force,  no               land  owner  shall  be competent  to  eject  a               tenant except when such tenant                     (i)  is  a tenant on the  area  reserved               under this Act or is a tenant of a small  land               owner; or..................."               "10A(a)  The State Government or  any  officer               empowered  by  it  in this  behalf,  shall  be               competent to utilise any surplus area for  the               re-settlement  of  tenants ejected, or  to  be               ejected, under clause (i) of sub-section ( 1 )               of Section 9."     It  was  contended before the High  Court  and  repeated before  us  that the order did not get finality  unless  the surplus  area  had in fact been utilised,  and  tenants  re- settled there. This contention did not find 697 favour with the High Court. We will presently examine wheth- er the contention has any merit. It is true that along  with the  order  declaring  the land of an owner  as  surplus,  a corresponding  right  & duty accrues to  the  Government  to utilise  the surplus area for the re-settlement of  tenants. In  other words, the rights on the land declared as  surplus get vested in the Government, to be distributed amongst  the tenants  for  re-settlement. This is an  indefeasible  right that  the  Government  secures. The appellant  is  not  well rounded in his contention that he could get back the land if the  surplus had not been utilised. There is nothing in  the Act  which  imposes  any time limit for  the  Government  to utilise  the land for the purpose mentioned in the Act.  Nor is  there  any provision enabling the owner of the  land  to claim back the land and to get it restored to him if  utili- zation  is  not made by the Government  within  a  specified period.  All  that the Act contains by way of  exception  is what  is seen in Section 10A(b). If at the time of the  com- mencement of the Act, the land is acquired by the Government under the relevant acquisition laws or when it is a case  of inheritance,  the owner could claim exclusion of  such  land from his land for fixation of his ceiling under the Act. The second exception itself is further lettered by the provision in  Section 10-B that where succession had opened after  the surplus  area  or any part thereof had been  utilised  under Section 10A(a), the saving specified in favour of an heir by inheritance  would not apply in respect of the area so  uti- lised. To put it short, the Government had under the Act  an unfettered right without time limit to utilise the land  for re-settlement  of  tenants  subject to  the  two  exceptions

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mentioned above. It is, of course, desirable that re-settle- ment  should be done as expeditiously as possible.  Inaction on the part of the Government to re-settle the tenants  will not  clothe  the owner with a power for restoration  of  the land. The contention of the appellant based on  non-utilisa- tion of the land has, therefore, to fail.     The second question is whether the appellant is entitled to have the best of the two worlds; in other words, to  have his quota of full 50 acres in Punjab and another 50 acres in Haryana.  Section  88 of the Re-organisation Act  makes  the position clear. It reads as follows:               "The provisions of Part II shall not be deemed               to have effected any change in the territories               to  which any law in force immediately  before               the  appointed  day extends  or  applies,  and               territorial references in any such law to  the               State of Punjab shall, until otherwise provid-               ed by a competent Legislature or other  compe-               tent authority, be construed  as  meaning  the               territories within  that  State               698               immediately before the appointed day." As  per  this Section the provisions of the  Act  which  was applicable  to  the old State of Punjab  would  continue  to apply  to  the new State. In other words  the  order  passed before 1st November, 1966, which became final, declaring the surplus  area, would be given effect to and the order  would be  implemented uninfluenced by the division of  the  State. After  the Re-organisation Act, the Governer of  Haryana  in exercise  of the powers conferred by Section 89 of  the  Re- organisation Act passed an order by name Haryana  Adaptation of  Laws  (States and Concurrent Subjects) Order,  1968,  on 23-10-1968 making it to take effect retrospectively from 1st November,  1966.  Clauses  10 and 11 of the  order  read  as follows:               "10. The provisions of this order which  adapt               or modify any law so as to alter the manner in               which,  the  authority by which,  or  the  law               under  or in accordance with which any  powers               are  exercisable shall not render invalid  any               notification,   order,  licence,   permission,               award, commitment, attachment, by-law. Rule or               regulation  duly made or issued,  or  anything               duly  done, before the appointed day; and  any               such notification, order licence,  permission,               award, commitment, attachment, bye-law,  rule,               regulation or thing may be revoked, varied  or               undone  in likemanner, to the like extent  and               in  the like circumstances as if it  has  been               made,  issued, or done after the  commencement               of  this order by the competent authority  and               under  and in accordance with  the  provisions               then applicable to such a case.               11.  Nothing  in this Order shall  affect  the               previous  operation of, or anything duly  done               or  suffered under any existing State  law  or               any right, privilege, obligation or  liability               already  acquired, accrued or  incurred  under               any  such law, or any penalty,  forfeiture  or               punishment incurred in respect of any  offence               already committed against any such law."     A  combined reading of these two clauses makes it  clear that  any order made or anything done or any  liability  in- curred  or  a right accrued before the  1st  November,  1966 would not be affected by the coming into force of the order.

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These  two  clauses show unambiguously that  the  respective State Governments would be entitled to give effect 699 to  orders passed before 1st November, 1966,  declaring  the surplus area by utilising them for the re-settlement of  the tenants, despite the reorganisation of the State of  Punjab. The orders passed will be respected by both the States.  The fact  that the land belonging to a particular  owner,  under fortuitous  circumstances,  fall  in the  two  newly  formed States,  will  not in any way affect the  operation  of  the orders  which had become final prior to 1st November,  1966. To accept the appellant’s contention would create anomalies. Persons  against whom proceedings under the Act  were  taken and  became  final  prior to 1st November,  1966,  would  be entitled to claim lands in both the States while those whose petitions are pending on the date the States  Reorganisation Act came into force would be in a disadvantageous  position. This is not the object of the Act. Nor the scheme behind it. The  States re-organisation was a historical  accident.  The land  owners cannot take advantage of this accident, to  the detriment  of ejected tenants or tenants in need of  re-set- tlement. For the above reasons, we hold that the High  Court was  justified  in  answering the question  referred  to  it against the appellant. The appeal is accordingly  dismissed. There will be no order as to costs. S.R.                                            Appeal  dis- missed. 700