Research › Browse › Judgment

Allahabad High Court · body

1980 DIGILAW 771 (ALL)

State of Uttar Pradesh v. Philips Mehrotra

1980-08-20

H.N.SETH, SATISH CHANDRA

body1980
JUDGMENT : SATISH CHANDRA, CJ. 1. The State of Uttar Pradesh has filed this Writ Petition with a view to challenging the judgment of the District Judge, Allahabad. By the impugned judgment the District Judge granted permission to Respondent No. 1 to sell 1243 sq. meters land including 212.5 sq. meters of constructed area to one Smt. Florence Gandhi. The aforesaid constructed as well as vacant area is situate in the town of Dehradun. 2. The Respondents applied for permission to transfer the aforesaid constructed area and vacant land before the Competent Authority u/s 27(2) of the Urban Land (Ceiling and Regulation) Act, 1976. The Competent Authority refused to accord the requisite permission. It found that the Applicants for permission owned a large area of land in the town of Allahabad as well as at Dehradun. They were entitled to 6000 sq meters area as their ceiling area and about 7722.75 sq. meters was excess land. In this situation permission to transfer cannot be granted till the proceedings for determination of ceiling area as well as excess land are finalised and the notification u/s 10(1) of the Act has been published. For this conclusion he relied on Section 5(3) of the Act. 3. Being aggrieved by this refusal, the Respondents went up in appeal to the learned District Judge. He held that in his view the Respondents were entitled to 8000 sq. meters as their ceiling area. Even if it be assumed that they were entitled only to 6000 sq. meters, yet since they wanted permission to sell only 1243 sq. meters of land including 212.5 sq. meters built-up area, permission ought to be granted because the area sought to be transferred was well within the ceiling area. He allowed the appeal and granted the requisite permission. He further observed that the surplus area of the land possessed by the Respondents shall be adjusted for the portion now covered by the sale deed. 4. The learned Standing Counsel submitted that the permission to sell constructed area as well as vacant land could be granted u/s 27 of the Act. Section 27 was specifically subject to the provisions of Sub-section (3) of Section 5 of the Act. Section 5(3) of the Act prohibited transfers until the statement u/s 6 had been furnished and notification regarding excess vacant land had been published u/s 10(1). Section 27 was specifically subject to the provisions of Sub-section (3) of Section 5 of the Act. Section 5(3) of the Act prohibited transfers until the statement u/s 6 had been furnished and notification regarding excess vacant land had been published u/s 10(1). The notification u/s 10(1) not having yet been published, the grant of permission was premature. 5. Having heard learned Standing Counsel as well as Sri L.P. Naithani and Sri S.P. Gupta, who argued on behalf of the Respondents as amicus curiae, we are of the opinion that the submission made by learned Standing Counsel cannot be sustained. 6. Section 5 deals with transfer of vacant land. Sub-section (1) of Section 5 deals with a case where vacant land is transferred between the commencement of the appointed date and the commencement of the Act, If a transfer is made during this period, then the area so transferred has to be taken into account in calculating the extent of vacant land, and for that purpose, the excess vacant land shall be selected out of the remaining area left with the person. Sub-section (2) provides that where any excess vacant land is selected out of the vacant land transferred under Sub-section (1)(in a case where the remaining area is less than the excess vacant land) the transfer of the excess vacant land so selected shall be deemed to be null and void. Sub-section (3) of Section 5 prohibits transfer of vacant land in excess of ceiling limit. 7. Section 6 requires persons holding vacant land in excess of the ceiling limit to file statement. On the basis of such statement a draft statement in accordance with Section 8 is prepared by the Competent Authority. After disposal of objections, if any, to such a draft statement, the same is finalised u/s 9. Thereupon, the Competent Authority has to notify vacant land held by such person in excess of the ceiling limit. Such excess vacant land vests in the State. This notification is issued u/s 10(1). 8. It will be seen that Section 5 deals with transfer of 'vacant land in excess of the ceiling limit.' The 'ceiling limit' is prescribed by Section 4. The legislative intent behind Section 5 is obvious. It prohibits transfer of vacant land in excess of the ceiling limit. This notification is issued u/s 10(1). 8. It will be seen that Section 5 deals with transfer of 'vacant land in excess of the ceiling limit.' The 'ceiling limit' is prescribed by Section 4. The legislative intent behind Section 5 is obvious. It prohibits transfer of vacant land in excess of the ceiling limit. The idea is that the State Government may not be deprived of excess vacant land by its being sold before it vests in the State Government u/s 10(1). 9. Section 5 has not been designed to regulate or control transfers of land within the ceiling limit of the owner. That subject matter has been dealt with in Chapter IV beginning with Section 25. Chapter IV is headed as "Regulation of transfer and use of urban property". u/s 26 if a person desires to transfer "vacant land within the ceiling limit", he has to give notice to the Competent Authority. On receipt of such notice, the Competent Authority on behalf of the State Government has the first option to purchase such land. There is no bar to transfer of vacant land within the ceiling limit even while proceedings for determination of excess vacant land are pending. Section 26 does not operate subject to Section 5(3), obviously because it specifically deals with transfer of vacant land within the ceiling limit. 10. Section 27 of the Act is entitled "prohibition on transfer of urban property". It has been made specifically subject to Sub-section (3) of Section 5 and Sub-section (4) of Section 10. u/s 27 no person can transfer urban land with a building or portion of building for a period of ten years of the commencement of the Act or completion of the construction of the building except with the previous permission in writing of the Competent Authority. The purpose behind Section 27 is to control transfers of building plus land or portion only of the building for a period of ten years. Such transfers are permissible only with the permission of the Competent Authority. Since Section 27 is not confined to transfer of building plus land, within the ceiling limit, it has been made subject to the provisions of Sub-section (3) of Section 5 and Sub-section (4) of Section 10. This is in order to safeguard the interest of State Government. Such transfers are permissible only with the permission of the Competent Authority. Since Section 27 is not confined to transfer of building plus land, within the ceiling limit, it has been made subject to the provisions of Sub-section (3) of Section 5 and Sub-section (4) of Section 10. This is in order to safeguard the interest of State Government. In other words, it aims at preventing deprivation of the excess vacant land which is going to vest in the State Government. 11. Further, Section 27 does not require even the permission for transfer after the ten years. Section 27 operates subject to Section 10(4) also. Section 10(4) provides: (4) During the period commencing on the date of publication of the notification under Sub-section (1) and ending with the date specified in the declaration made under Sub-section (3). (i) no person shall transfer by way of sale, mortgage, gift, lease or otherwise any excess vacant land (including any part thereof) specified in the notification aforesaid and any such transfer made in contravention of this provision shall be deemed to be null and void : and (ii) no person shall alter or cause to be altered the use of such excess vacant land. 12. Here also the prohibition is for transfer of excess vacant land. Sub-section (3) of Section 5 provides : "(3) In any State to which this Act applies in the first instance and in any State which adopts this Act under Clause (1) of Article 252 of the Constitution, no person holding vacant land in excess of the ceiling limit immediately before the commencement of this Act shall transfer any such land or part thereof by way of sale, mortgage, gift lease, or otherwise until he has furnished a statement u/s 6 and a notification regarding the excess vacant land held by him has been published under Sub-section (1) of Section 10, and any such transfer made in contravention of this provision shall be deemed to be null and void." The prohibition applies to a person holding vacant land in excess of the ceiling limit, and the prohibition is in relation to 'any such land or part thereof. Here the word 'such' refers to vacant land in excess of the ceiling limit. This view is strengthened by the last clause, namely, 'and any such transfer...shall be...null and void'. Here the word 'such' refers to vacant land in excess of the ceiling limit. This view is strengthened by the last clause, namely, 'and any such transfer...shall be...null and void'. The phrase 'such transfer' refers to transfer of vacant land in excess of ceiling limit. It is not attracted to transfer of vacant land simplicities. Land in excess of ceiling limit must be involved to attract Section 5(3). 13. It will be seen that unlike Sections 26 and 27 the prohibition of Sub-section (3) of Section 5 is absolute. There is a complete ban. Any transfer made in contravention thereof has to be deemed null and void. If the submission of the learned Standing Counsel that Sub-section (3) of Section 5 applies to transfer of land within the ceiling limit by a person holding excess vacant land also, is accepted, inevitably Sub-section (3) of Section 5 will conflict with Sections 26 and 27. Under Sub-section (3) of Section 5 there is absolute prohibition, but u/s 26 as well as 27 transfer is permissible, though after serving a notice on the Competent Authority u/s 26, in case of vacant land only, and after obtaining the permission of the Competent Authority in case of sale of land plus building. In order to re-council the three provisions, and in order that all the three provisions may have their full play in their respective fields, it is apparent that Sub-section (3) of Section 5 has to be confined to transfer of vacant land in excess of the ceiling limit. It has no application to a case of transfer of land or building within ceiling limit. 14. If a person holds vacant land in excess of the ceiling limit, then the Competent Authority can validly refuse to grant permission u/s 27 where permission to transfer is sought is respect of an area which may include an area which is in excess of the ceiling limit This is the only purpose of making the provisions of Section 27 subject to Section 5(3). 15. In the present case, it has been found that the area sought to be transferred was well within the ceiling limit of the Respondents. The District Judge was justified in granting the requisite permission. We find no merit in this writ petition, and accordingly reject it summarily.