26 August 1966
Supreme Court
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GAUDI RAMAMURTHY & ORS. Vs THE STATE OF ANDHRA PRADESH & ORS.

Case number: Appeal (civil) 501 of 1964


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PETITIONER: GAUDI RAMAMURTHY & ORS.

       Vs.

RESPONDENT: THE STATE OF ANDHRA PRADESH & ORS.

DATE OF JUDGMENT: 26/08/1966

BENCH: RAO, K. SUBBA (CJ) BENCH: RAO, K. SUBBA (CJ) SHELAT, J.M.

CITATION:  1967 AIR 1140            1967 SCR  (1) 181

ACT: Madras Estates (Abolition and Conversion into Ryotwari)  Act (XXVI  of 1948), s. 3(b) and Regulation XXV of 1802,  s.  4- Estate vesting in Government under notification issued under Estates   Abolition   Act--Certain  lands   granted   before permanent  Settlement partly in lieu of services and  partly for rent-Such lands whether excluded from estate under Regu- lation of 1802.

HEADNOTE: The  appellants  and  respondents  2 to  5  were  owners  of Jaggamapeta  estate in the East Godavari District of  Andhra Pradesh.   The  Vantari Muttah’, a piece of land  about  400 acres in area, was granted to their predecessor in  interest in return for services as vantarlu’ or ’foot set,#ants’ long before  the permanent settlement.  After the passing of  the Madras Estates, (Abolition and Conversion into Ryotwari) Act XXVI  of 1948 dispute arose whether the land formed part  of the  Jaggampeta estate for if it did not, the Act would  not apply to it.  After various stages of litigation a  Division Bench of the High Court decided against the apellants.  They came to this Court with special leave. it  was contended on behalf of the appellants that the  said Muttah  was granted to their  predecessor-in-interesi-before the  permanent  settlement by the then Zamindar  for  public services  subject  to a payment of  favourable  rent,  that, subsequently,  the services were discontinued,but the  grant was  continued  subject to the payment of  favourable  rent, that at the time of the permanent settlement the said  Mutta was  excluded  from  the assets of the  Zamindari  and  that therefore  the  said Muttah. was outside the  scope  of  the notification issued by the Government under Madras Act  XXVI of  1948.   On behalf of the respondent State it  was  urged that the grant was subject to the payment of the full asses- men,,  that the said assessment was paid partly in cash  and partly  by personal services to the, Zamindar, that  at  the time  of  the  Permanent  Settlement  the  said  Muttah  was included in the assets of the Zamindari and that as it was a part of the Zamindari the Government at the time of the Inam Settlement did not take any steps to enfranchise the same. HELD:(i)  Under  s.  4 of the Regulation  XXV  of  1802  the Government  was  empowered to exclude income  from  lakhiraj

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lands  i.e. lands exempt from payment of public revenue  and of  all  lands paying only favouable quit  rents,  from  the assets  of  the  Zamindari  at the  time  of  the  Permanent Settlement.   If the lands fall squarely within the mid  two categories, there is a presumption that they we-re  excluded from the assets of the Zamindari.  But if the grant of  land was  subject  to  performance of personal  services  to  the Zamindar  or subject to the payment of favourable rents  and also performance of personal services to the Zamindar, there is  no such presumption.  Indeed the presumption is that  in such  a case the income from the land was not excluded  from the  assets  of the Zamindari.  The reason for the  rule  is that in one case the personal service are equated with  the, full assessment and in the other 182 the  favourable rent together with the personal services  is equated with full assessment.  If the Zamindar in one  shape or  another  was getting the full assessment  on  the  lands there  was no reason why the Government would have  foregone its  revenue by excluding such lands from the assets of  the Zamindari. [185 F] Mahaboob  Sarafarajewant  Sri Raja  Parthasarathy  Appa  Rao Bahadur  Zamindari  Garu v. The Secretary of  State,  (1913) I.L.R.  38  Mad.  620  and  Secretary  of  State,  v.  Rejah Vasiredy, A.I.R. 1929 Mad. 676, referred to. (ii) The  grant  in the present case  was  a  pre-settlement grant.  The land was granted to the Vantarlu subject to  the payment   of  favourable  rent  and  also  subject  to   the performance  of  personal  services to  the  Zamindar.   The Government   either  before  the  permanent  settlement   or subsequent thereto never claimed a right to resume the same. Indeed it was the Zamindar who was giving remissions to  the Vantarlu  Whenever their services were not required.   There is a presumption that such I land was not excluded from  the assets of the Zamindari and the evidence adduced in the case not  only  did not rebut that presumption but also  to  some extent  supported it.  The Division Bench of the High  Court was  therefore right in holding that the Vantari Muttah  was part of the estate of the appellants and respondents 2 to  5 and was therefore, covered by the notification issued by the Government under the Estates Abolition Act, 1948. [189 D]

JUDGMENT: CIVIL APPELLATE JURISDICTION: Civil Appeal No. 501 of 1964. Appeal  by special leave from the judgment and order-  dated February 27, 1961 of the Andhra Pradesh High Court in S.  p. A. No. 137 of 1959. R. Ganapath Iyer, for the appellant. P. Ram Reddy and T. V R. Tatachari, for respondent No. 1. The Judgment of the Court was delivered by Subba  Rao,  C. J. This appeal by special leave  raises  the question, whether the land described as "Vantari Muttah"  in Talluru village was included in the assets of Jaggampetta  A and D Zamindari estates, in Peddapuram taluk, East  Godavari District,  Andhra  Pradesh,  at the time  of  the  Permanent Settlement. The  undisputed  facts may be briefly  narrated.   The  said Muttah comprises an area of 50 puttis, i.e. about 400 acres, and  five  tanks are situate therein.  The said  Muttah  was granted to the predecessor-in-interest of the appellants and respondents  2 to 5 long before the Permanent Settlement  in consideration of payment of Kuttubadi of a sum of Rs. 620/-. At  the time of Inam Settlement, it was not enfranchised  by

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the  Government.   After the Madras Estates  (Abolition  and Conversion  into Ryotwari) Act XXV] of 1948 was  passed,  on September 22, 1952, by a notification issued thereunder, the Government took over the Jagganpeta Estate.  In April  1953, when the appellants and respondents 2 to 5 183 tried to effect repairs to the tanks, the village munsif  of Talluru  tinder  instructions  from  the  1  st  respondent, obstructed  them from doing so.  Thereupon,  the  appellants filed  O.  S. No. 269 of 1953 in the Court of  the  District Munsif,  Peddapuram, against the State of Andhra and  others for  a declaration that the 1st respondent, had no right  to the said tanks and for an injunction restraining it and  its subordinates from interfering with their rights in the  said tanks.   The 1st respondent resisted the suit inter alia  on two  grounds,  namely,  (i) the entire  Vantari  Muttah  was included  in the assets of the said estate of Jaggampeta  at the time of the Permanent Settlement, and (ii) in any  view, Linder   the  grant,  the  predecessor-in-interest  of   the appellants  and respondents 2 to 5 was given only  the  land and  not  the tanks therein.  The  learned  District  Munsif upheld  the  claim of the appellants to the said  tanks  and decreed the suit.  On appeal, the learned Subordinate  Judge Kakinada, held that the said land was included in the assets of  the  Zamindari at the time of the  Permanent  Settlement and,  on  that finding, he dismissed the  Suit.  On  further appeal,  Kumarayya,  J.  of the Andhra  Pradesh  High  Court agreed  with the learned District Munsif.  But,  on  Letters Patent appeal, a Division Bench of the  HighCourt,consisting of ChandraReddy,C.J.and ChandrasekharaSastry,J.,agreed  with the learned Subordinate Judge. The result was that the  Suit of  the  appellants  was dismissed  with  costs  throughout. Hence the present appeal. On  the  pleadings, two questions arose  for  consideration, namely, (i) whether the Muttah was included in the assets of the  Zamindari at the time of the Permanent Settlement,  and (ii) even if the said Muttah was excluded from the assets of the  Zamindari,  whether the original  grant  comprised  the tanks. The second point need not detain us, for, though  Kumarayya, 1.  held on the said point in favour of the appellants,  the Division Bench did not express any opinion thereon, in  view of its decision on the first point.  As we are agreeing with the  Division Bench on the first point, it is not  necessary for us to express our opinion on the second point. Apropos  the  first point, Mr. R.  Ganapathy  Iyer,  learned counsel  for the appellants, contended that the said  Muttah was granted to the prodecessor in interest of the appellants and respondents 2 to 5 long before the Permanent  Settlement by  the  then  Zamindar for public services,  Subject  to  a payment of favourable sent, that, subsequently, the services were  discontinued, but the grant was continued  subject  to the  payment  of favourable rent, that at the  time  of  the Permanent  Settlement the said Muttah was excluded from  the assets of the Zamindari and that, therefore, the and  Muttah was  outside  the  scope of the notification  issue  by  the Government under Madras Act XXVI of 1948. 184 Mr P. Ram Reddy, learned counsel for the 1st respondent, the State  of Andhra Pradesh, argued that the grant was  subject to  the  payment  of the full I assessment,  that  the  said assessment  was paid partly in cash and partly  by  personal services to the Zamindar, that: at the time of the Permanent Settlement the said Muttah was included in the assets of the Zamindari  and that, as it was a part of the Zamindari,  the

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Government, even at the time of the Inam Settlement, did not take any steps to enfranchise the same. Before  we advert to the evidence, it will be convenient  to notice  briefly,  at  this stage, the relevant  law  on  the subject. Under  s.  3(b)  of the Estates Abolition  Act,  the  entire estate,   including  inter  alia  the  tanks,  shall   stand transferred  to  the Government and vest in it free  of  all encumbrances.   This section would be attracted only if  the suit  land was part of an estate as defined under  the  Act. It  cannot be disputed that if the land was included in  the assets   of  the  estate  at  the  time  of  the   Permanent Settlement, it would be a part of the estate.  Section 4  of Regulation  XXV  of 1802 enabled the Government  to  exclude from the said assets certain items.  Under the relevant part of the said section, the Government was empowered to exclude from  the  assets  of  the Zamindari  at  the  time  of  the Permanent  Settlement  "lands  exempt from  the  payment  of public revenue and of all other lands paying only favourable quit  rents".   Besides these two categories  of  grants  of lands,  namely, lands exempt from payment of public  revenue and  lands  paying  only favourable quit  rents,  there  was another category of lands which were granted subject to  the payment  of  favourable quit rents and also subject  to  the performance of certain services.  The said services might be public or private services, i.e., services to the  community or services to the grantor.  The third category of land  was the  subject matter of decision in  Mahaboob  Sarafarajawant Sri  Raja Parthasarathy Appa Rao Bahadur Zamindari  Garu  v. The Secretary of State(1).  Where lands in a zamindari  were pre-settlement  inams  granted  on  condition  of  rendering personal  service  to the zamindar and paying  a  favourable quit rent, the Madras High Court held that as the grant  was for  services purely personal to the zamindar,  prima  facie the  inams formed part of the assets of the zamindari.   The reason  for this rule of presumption was stated by  Sankaran Nair, J. thus :               According  to  these  cases,  therefore,  when               lands were held on condition that the  holders               were  to  render certain services  which  were               purely  personal to the Zamindar and in  which               the Government were not interested, i.e., when               such services had nothing to do with police or               magisterial  duties,  or did not  concern  the               community or the villagers, (1) (1913) I.L.R. Madras 620, 632. 185               then  the Government were entitled to  include               in  the  zamindari  assets  for  setting   the               peshkash the income from the lands allowed  in               lieu  of such services which were not  allowed               for  in the settlement; there is therefore  no               presumption they did not do so or treated  the               land as free from payment." If the services were purely personal to the zamindari, there was no reason why the Government would not have included the land  in  the assets of the zamindari for  the  purpose  for fixing  the peshkash.  The same result was arrived at  by  a different  process.  Under s. 4 of Regulation XXV  of  1802, lands  paying only favourable quit rents might  be  excluded from the assets of the zamindari.  If the grantee paid  part of the assessment in cash and part in the shape of  personal services  to the zamindari, it cannot be said that  he  held the lands paying only favourable quit rent to the  zamindar. The aspect was brought out with clarity by Venkatasubba Rao,

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J.,  in Secretary of State v. Rajah Vasireddy(1).   Therein, the learned Judge said thus :               "In  the case of personal service  inams,  was               there any reason at the time of the  permanent               settlement for treating them as "lands  exempt               from  the  payment of public  revenue  ?"  The               zamindar was receiving income from such lands,               though not of course in the shape of cash-rent               but   in  the  shape  of  services;  for   the               rendering  of services was one mode of  paying               the  rent.   It was reasonable  therefore,  to               treat them at the settlement as revenue paying               lands." The  legal  position may therefore put thus; Under s.  4  of Regulation  XXV  of  1802 the Government  was  empowered  to exclude income from lakhiraj lands, i.e., lands exempt  from payment  of  public  revenue and of all  lands  paying  only favourable  quit rents, from the assets of the zamindari  at the  time  of the permanent settlement.  If the  lands  fall squarely  within  the  said  two  categories,  there  is   a presumption  that they were excluded from the asse’s of  the zamindari.   But  if  the  grant  of  land  was  subject  to performance of personal services to the zamindar or  subject to  the payment of favourable rents and also performance  of personal   service  to  the  zamindar,  there  is  no   such presumption.  Indeed, the presumption is that in such a case the income from the land was not excluded from the assets of the zamindari.  The reason for the rule is that in one  case the  personal services are equated with the full  assessment and  in  the  other the favourable rent  together  with  the personal  services is equated with full assessment.  If  the zamindar  in  one  shape or another  was  getting  the  full assessment  on  the  lands,  there was  no  reason  why  the Government would have fore- (1) A.I.R. 1929 Madras 676, 682. Sup.CI/66-13 186 gone its revenue by excluding such lands from the assets  of the zamindari. With  this  background,  let  us  look  at  the  documentary evidence  adduced  in the case.  The relevant grant  is  not produced.  The permanent settlement accounts are not  before us.   The sanad is not placed on the evidence.   Indeed,  no document  of  a date prior to the  permanent  settlement  is exhibited.   The  question falls to be decided only  on  the basis  of the documents that came into existence  subsequent to the permanent settlement. Ex.A-3  is  a  Kaifat  dated  April  22,1818  pertaining  to ’manyams’  in the village of Jaggampadu.  The relevant  part of the document reads :               "Thimmaraju Maharajulungaru got debited in the               accounts  of  the said  village,  and  granted               towards  maintenance of Malireddy  Gopalu  for               his service.               He  (Raja)  fixed  three  hundred  and   fifty               varahas and continued it so in the same manner               receiving service from him.               Afterwards  Ammannagaru settled that cash  has               to be paid to the aforesaid ’diwanam’ (estate)               and  that  the remaining shall be  enjoyed  as               long   as   the  service  is   done   to   the               abovementioned people.  In that manner it  was               enjoyed till last year.  For the current  year               it    was   done   as   ’Amani’    (Government               supervision)."

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This  document shows that the grantee and his heirs were  to enjoy the land so long as service was done to the Raja.  The expression  "abovementioned  people" can only refer  to  the Raja’.  The service, therefore, was only personal service to the Raja. Ex.A-4 is an order of the District Collector of  Rajahmundry to  the  Estate Amin or Jaggampeta.  This  letter  is  dated September 5, 1829.  This document  shows that the  agent  of the Raja complained to   the Collector that the Vantarlu  of Thalluri village were    granted lands assessed to a kist of Rs.  2140,  that  for their service the  late  Raja  granted remission  of Rs. 620, that they were paying every year  the balance amount to the Raja, that after the death of the late Raja  they did not present themselves to the minor Raja  but were  doing  service  to  some  other  zamindar  and   that, therefore, an order might be issued directing them to pay to the  then Raja the entire assessment.  On the basis of  that request,  the  Collector  directed  the  Amin  to  make  the necessary  enquiries.  This document clearly shows that  the Zamindar’s agent asserted as early as 1928 that the Vantarlu were given remis- 187 sion  by  the zamindar only for doing personal  services  to him.   The  complaint made by the agent that  the  Vantarlu, instead of doing services to the minor Raja and attending on him,  were  doing services to another zamindar  is  a  clear indication  that the services mentioned in that  order  were the  personal services to the Raja.  Reliance was placed  on the  statement in the said order "did not even give a  reply to the message sent to them during the time of the dacoities and  disturbances  occurred  recently,  asking  them  to  be present   before  him"  and  contended  that  the   services mentioned  therein  were  the services for  the  purpose  of putting down dacoities and disturbances, which were services to  the community.  The said statement only  describes  when the  notice  was sent and not the nature  of  the  services. Even  if  it  described the nature of  the  services,  their personal  attendance on the Raja during the  troubled  times could  not make them any the less personal services to  him. It  was  also  said  that  the  fact  that  the  Collector’s interference was sought was indicative of the public  nature of  the services.  The Collector in those days was a  person of  power and prestige in a district and there  was  nothing unusual  in  a zamindar seeking his help in  the  matter  of collecting his dues from recalcitrant serviceholders. Ex.  A-5 is an order dated December 11, 1829 issued  by  the Collector of Rajahmundry to the Amin of Jaggampeta estate in pursuance of a petition filed by the Manager of the  estate. Assertions  similar to those found in Ex.  A-4 were made  by the  Manager of the Estate in the petition filed by  him  to the Collector which is referred to in Ex.  A-5. Ex.  A-7  is a petition dated April 24, 1830  filed  by  the Vantarlu  of  Thalluru  village to  the  Enquiry  Collector, Rajahmundry.   In.. that petition it was admitted  that  the Raja  granted  a  land to them assessed to  a  kist  of  310 varahas  for their living, that they were doing services  to the Samastanam, that after the death of the Raja, his  widow told  them  that she would adopt a boy and that  during  his minority  their  services were not required but in  view  of their past services to her ancestors she would allow them to enjoy  the  land  only on payment of  half  the  assessment. After  narrating all the subsequent events, the  petitioners went on to say :               "From  the time when Lakshminarasayya got  the               ’nimebadi’ done in that manner, we the sharers

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             by   obtaining  the  goodwill  of   Sri   Raja               Vatchavayi  Venkatapathigaru, got the  present               and  were paying 155 varahs to the estate  and               were  in  enjoyment  of  50  putties  of  land               assessed to a kist of Rs. 3101- as ’vasathi’. This petition also supports the case of the Government  that the  Vantarlu were doing personal services to  the  zamindar and  that  it  was  the zamindar who  gave  a  remission  of assessment  in  lieu  of  their  services.   The  fact  that Lakshminarasayya dispensed with 188 the  services  of the Vantarlu during the  minority  of  the adopted  son shows that the services were only  personal  to the  zamindar, for, if they were public services,  the  fact that the zamindar was a minor would be irrelevant. The  learned  counsel for the appellants  contended  on  the basis of this document that whatever might be the conditions of the grant at the time of its origin before the  permanent settlement,  the  zamindar put an end to  the  services  and confirmed  the  grant subject to the payment  of  favourable quit rent and, therefore, the grant squarely fell within the scope  of s. 4. of the said Regulation (XXV of  1802).   But this document contains only an assertion on the part of  the Vantarlu : and even if that assertion be true, it would only show  that  Lakshminarasayya  did  not  dispense  with   the services for good but only exempted the Vantarlu from  doing the services till the minor zamindar attained majority. Ex.  A-16 dated November 9, 1831, Ex.  A-17  dated  February 27,  1832  and  Ex.  A-18 dated March 8,  1833  are  similar orders  issued by the Collector to the Amin  of  Jaggampeta. They contain recitals similar to those contained in Exs.  A- 3, A-4 and A-5. Ex.  A-10  is  an order dated July 7,  1831  issued  by  the Collector  to  the Amin of Jaggampeta.   Therein,  when  the Manager  of  the  estate resumed the land  and  gave  it  to another on the ground that the Vantarlu were not paying  the assessments, the Collector directed that they should be  put back in possession of the said land.  But, in doing so,  the Collector  did  not say that the Zamindar had  no  right  to resume  the  land but only observed that it did not  do  any credit to the estate to dispossess Muttadars of the land and grant  it  to some one else.  This document does  not  throw much light on the question raised before us. Lastly,  we have the fact that the Government did  not  take any  steps to enfranchise the land.  For the default of  the Government,  no  doubt  the appellants  cannot  be  made  to suffer.  But that circumstance probablises the contention of the  Government  that  the Muttah was not  included  in  the assets  of the zamindari, for, if included it is not  likely that  the  Government  would not have  enfranchised  it  and imposed assessment thereon. Strong reliance was placed on the expressions "Vantarlu" and "manyam" found in some of the documents and an argument  was made  that the said expressions indicated that the  services were  public services.  The expression "manyam" is found  in Ex.A-3. In Wilson’s Glossary "manyam" is defined thus :               "Land in the south of India, held either at  a               low   assessment,  or  altogether   free,   in               consideration of services done to the state or               community, as in the case of the officers.               189               and  servants of a village.......... the  term               is  also  laxly applied to any free  grant  or               perquisite held in hereditary right by members               of a village community."

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The  expression  "manyam" does not,  therefore,  necessarily mean  a  grant for public services.  It is also  used  in  a loose  sense  to  indicate an inam.  That  apart,  the  word "manyam" is only found in a Kaifiat of 1818 and in no  other ducument  it  finds  a place.  Be that as it  may,  such  an ambiguous expression in a solitary document which came  into existence  in 1818 cannot outweigh the other evidence  which we  have  considered  in detail.  Nor  does  the  expression "Vantarlu"  indicate  public  servants.   It  means   "foot- servants"; it may also be used to denote a sepoy.   Whatever may  be its meaning, the name is not decisive of the  nature of  the service.  A foot-servant or a sepoy could  certainly do personal service to a zamindar : he might look after  his safety. The following facts emerge from a consideration of the docu- mentary  evidence.   The grant was a  pre-settlement  grant. The land was granted to the Vantarlu subject to the  payment of  favourable rent and also subject to the  performance  of personal  services to the zamindar.  The Government,  either before the permanent settlement or subsequent thereto, never claimed  a  right to resume the same.  Indeed,  it  was  the zamindar who was giving remissions to the Vantarlu  whenever their  services were not required.  There is  a  presumption that  such  a land was not excluded from the assets  of  the zamindari and the evidence adduced in the case not only does not  rebut  that  presumption  but  also,  to  some  extent, supports it. We, therefore, agree with the Division Bench of the  High  Court  holding that the  Vantari  Muttah  of  the appellants  was  part  of the  Jaggampeta  estate  and  was, therefore,  covered  by  the  notification  issued  by   the Government under the Estates Abolition Act, 1948. In the result, the appeal fails and is dismissed with  costs of the first respondent.        G.C.                          Appeal dismissed. 190