JUDGMENT : Alok Singh, J. Present petition is filed assailing the judgment and order dated 05.06.2014 passed by Collector, Nainital whereby property purchased by the petitioner in auction sale was held to be in violation of Section 154 of the U.P. Zamindari Abolition and Land Reforms Act, 1950 (for short “the Act”) and was directed to be vested in the State Government under Section 167 of the Act. 2. Brief facts of the present case, inter alia, are that M/s Ram Gopal Auto Private Limited took a term loan of Rs. 63.50 Lakh from Pradeshiya Industrial & Investment Corporation, Uttar Pradesh (hereafter referred to as “PICUP”) by mortgaging entire industrial unit situated on Khasra Nos. 39 Kha and 40 Kha, village Narsingh Malla, Kamluwaganja, Tehsil Haldwani, District Nainital; borrower – M/s Ram Gopal Auto Private Limited failed to repay the entire outstanding amount of the term loan along with interest, therefore, entire industrial unit was taken into possession by PICUP exercising powers under Section 29 of the State Financial Corporations Act; entire industrial unit was put to auction sale wherein petitioner was held to be the highest bidder; sale deed was executed in favour of the auction purchaser / petitioner, herein, by PICUP on 04.09.2009; vide impugned judgment and order dated 05.06.2014 passed by Collector, Nainital, sale deed dated 04.07.2009 executed by PICUP in favour of auction purchaser / petitioner, herein, was held in violation of Section 154 of the Act and property was directed to be vested in the State Government under Section 167 of the Act. Feeling aggrieved, petitioner has filed present petition. 3. Since all the facts are undisputed and question of law only is involved – As to whether sale deed, in question, can be held to be in violation of Section 154 of the Act and property can be directed to be vested in State Government under Section 167 of the Act, therefore, with the consent of learned counsel for the parties, present petition is disposed of today itself at the initial stage. 4. I have heard Mr. Lok Pal Singh, Advocate for the petitioner and Mr. Anil Kumar Joshi, Addl. Chief Standing Counsel for the State of Uttarakhand / respondents. 5. Sections 143, 154 as applicable in the State of Uttarakhand and Section 167 of the Act, read as under: "143. 4. I have heard Mr. Lok Pal Singh, Advocate for the petitioner and Mr. Anil Kumar Joshi, Addl. Chief Standing Counsel for the State of Uttarakhand / respondents. 5. Sections 143, 154 as applicable in the State of Uttarakhand and Section 167 of the Act, read as under: "143. Use of holding for industrial or residential purpose - (1) Where a bhumidhar with transferable rights uses his holding or part thereof for a purpose not connected with agriculture, horticulture or animal husbandry which includes pisciculture and poultry farming, the Assistant Collector in charge of the sub- division may, suo moto or on an application, after making such enquiry as may be prescribed, make a declaration to that effect. (I-A) Where a declaration under sub-section (1) has to be made in respect of a part of the holding the Assistant Collector in charge of the sub- divisions may in the manner prescribed demarcate such part for the purposes of such declaration. (2) Upon the grant of the declaration mentioned in sub-section (1) the provisions of this Chapter (other than this section) shall cease to apply to the bhumidhar with transferable rights with respect to such land and he shall thereupon be governed in the matter of devolution of the land by personal law to which he is subject. (3) Where a bhumidhar with transferable rights has been granted, before or after the commencement of the Uttar Pradesh Land Laws (Amendment) Act, 1978, any loan by the Uttar Pradesh Financial Corporation or by any other Corporation owned or controlled by the State Government, on the security of any land held by such bhumidhar, the provisions of this Chapter (other than this section) shall cease to apply to such bhumidhar with respect to such land and he shall thereupon be governed in the matter of devolution of the land by personal law to which he is subject. “154. Restriction on transfer by a bhumidhar-(1) Save as provided in sub-section (2), no bhumidhar shall have the right to transfer by sale or gift, any land other than tea garden to any person where the transferee shall, as a result of such sale or gift, become entitled to land which together with land, if any, held by his family will in the aggregate, exceed 5.0586 hectares (12.50 acres) in Uttar Pradesh. [Explanation- For the removal of doubt it is hereby declared that in this sub-section the expression “person” shall include and be deemed to have included on June 15, 1976 a “Co-operative Society” : Provided that where the transferee is a Co-operative Society, the land held by it having been pooled by its members under Clause (a) of sub-section (1) of Section 77 of the Uttar Pradesh Co-operative Societies Act, 1965 shall not be taken into account in computing the 5.0586 hectares (12.50 acres) land held by it.] (2) Subject to the provisions of any other law relating to the land tenures for the time being in force, the State Government may, by general or special order, authorize transfer in excess of the limit prescribed in sub-section (1) if it is of the opinion that such transfer is in favour of a registered co-operative society or an institution established for a charitable purpose, which does not have land sufficient for its need or that the transfer is in the interest of general public. Explanation- For the purposes of this section, the expression ‘family’ shall mean the transferee, his or her wife or husband (as the case may be) and minor children and where the transferee is a minor also his or her parents. [(3) For every transfer of land in excess of the limit prescribed under sub-section (1) prior approval of the State Government shall be necessary : Provided that where the prior approval of the State Government is not obtained under this sub-section, the State Government may on an application give its approval afterward in such manner and on payment in such manner of an amount, as fine, equal to twenty five per cent of the cost of the land as may be prescribed. The cost of the land shall be such as determined by the Collector for stamp duty.] [Provided further that where the State Government is satisfied that any transfer has been made in public interest, it may exempt any such transferee from the payment of fine under this sub-section] [UTTARAKHAND] AMENDMENT [(3) A bhumidhar with transferable rights may sell his land to any of the categories of tenure holders in the State of Uttaranchal as mentioned in Section 129 or such owner of any immovable property in Uttaranchal who has acquired it on or before 12.09.2003 or to any member of the ‘family’, which means husband, his wife and their children, including step or adopted children, and includes parents, grandparents, brothers and unmarried, widowed, separated and divorced sisters of such tenure holder of the owner, as the case may be. [(4)(1)(a) Subject to other restrictions and save as otherwise provided in this Act, “any person for his own or on behalf of his family (which means husband, his wife, minor children, unmarried sons, unmarried daughters and dependent parents) even though he is not a tenure holder under Section 129 or the owner of any immovable property in Uttarakhand, may purchase land not exceeding 250 sq. mts. for residential purpose in his lifetime without the permission;] (b) A registered agreement to sell the land executed on or before 12.09.2003 shall be valid if the sale deed on the basis of such agreement is executed on or before 31.03.2004, irrespective of any time limit provided in the agreement, unless extended by the Collector of the district for reasons to be recorded in writing. (2) Nothing in sub-section 154 (3) shall be deemed to prohibit the transfer of land by any person in favour of- (a) the State Government or Central Government or a Government company, as defined in Section 617 of the Companies Act, 1956 or a Statutory Body or Corporation or Board established by or under a Statute and owned and controlled by the State or Central Government; (b) a person who has become a non-tenure on account of- (i) acquisition of his land for any public purpose under the Land Acquisition Act, 1894; or (ii) vestment of his land in the tenants under this Act; (c) a non-tenure holder who purchases or intends to purchase land for the construction of a house or shop or purchases a built-up house or shop from the State Housing Board or from a Development Authority or from any other Statutory Corporation set up under any State or Central enactment; (d) [***] (e) a person or company according to industrial Policy of Uttaranchal in (i) Intergrated Industrial Development Centre, (ii) Industrial Area, (iii) Industrial Estates; (f) a person, society or trust for religious purposes; (g) a landless labourer of the Uttaranchal; or (h) a landless person belonging to a Scheduled Caste or Scheduled Tribe of the Uttaranchal; or (i) a village artisan of the Uttaranchal; or (j) a landless person carrying on an allied pursuit of the Uttaranchal. (3)(a) Subject to restrictions contained in Section 154, a person, society or corporate body may purchase land for the following purposes, other than those for Agriculture and Horticulture purposes, with the prior sanction of the Government in the State of Uttaranchal as may be prescribed- (i) Medical or health purposes, if it conforms to the Health and Population Policy of Uttaranchal; (ii) Hotel, Lodge, Guest House, Restaurant, Bar, Spa, way side amenities or resort, if it conforms to the Tourism Policy of the State; (iii) Educational purposes, on the recommendations of the Department of Education; (iv) Cultural Purposes; and (v) For industrial purposes in areas other than those mentioned in Section 154(4)(2)(e) or for other purposes. (b) A person, society or company may purchase land with prior sanction of the Collector of the district for Agricultural or Horticultural purposes, as may be prescribed, on furnishing an affidavit to the effect that such land will be used for Agricultural or Horticultural purposes and for uses incidental to and connected with Agriculture or Horticulture only. (b) A person, society or company may purchase land with prior sanction of the Collector of the district for Agricultural or Horticultural purposes, as may be prescribed, on furnishing an affidavit to the effect that such land will be used for Agricultural or Horticultural purposes and for uses incidental to and connected with Agriculture or Horticulture only. If the land use of such land as mentioned in the Affidavit is changed, the said transfer shall be void and consequences of Section 167 shall follow: Provided that a person who is a non-tenure holder but purchases land either under Section 154 (4)(1)(a), 154 (4)(2)(e) and 154 (4)(2)(f) or under the sanction granted under Section 154(4)(3) shall, irrespective of such purchase of land, continue to be a bhumidhar of special category as provided under Section 129-B and such bhumidhar shall be eligible to purchase land in future only with the permission, of the State Government or Collector of the district as the case may be: Provided further that such bhumidhar may mortgage or hypothecate such land for obtaining loan from banks and financial institutions or deriving any other benefit accruing from his bhumidhari rights under Section 129: Provided further that a non-tenure holder who has purchased land under Section 154 (4)(2)(e), 154(4)(2)(f) and who purchased land under Section 154(4)(3) under the sanction of Government or Collector, as the case may be, shall put land to such use for which the sanction has been granted within a period of two years or further such period as may be allowed by the State Government for reasons to be recorded in writing, to be counted from the date of registration of sale deed and if he fails to do so or diverts the use of the land for which it was sanctioned or transfers the land by way of sale, gift or otherwise except for the purpose for which it was purchased, such transfer shall be void for the purpose of this Act, and consequences of Section 167 shall follow- (5) Where,- (a) the Registrar or Sub-Registrar appointed under the Indian Registration Act, 1908 before whom any document pertaining to transfer of land is presented for registration comes to know or has reason to believe that the transfer of land is in contravention of Section 154(3) or 154(4)(3); or (b) a Revenue Officer either on an application submitted to him or on receipt of any information from any source comes to know or has reason to believe that the land has been transferred in contravention of the provisions of Section 152-A, 154(3), 154(4)(2)(e), 154(4)(2)(f) or 154(4)(3), such Sub-Registrar, Registrar or Revenue Officer, as the case may be, shall make a reference to the Collector of the district, who shall determine whether the transfer is in contravention of the provision of this Act in the manner prescribed and the consequences of Section 167 shall follow in respect of every transfer which is void; (c)(i) The State Government may, either on the report of a Revenue Officer or on an application by any person or of its own motion, call for the records of any proceedings or case for the purpose of satisfying itself as to the legality or propriety of such proceedings or order made therein and may pass such order in relation thereto as it may think fit; and (ii) No order shall be passed under this sub-section which adversely affects any person unless such person has been given a reasonable opportunity of being heard.” “167. Consequences of void transfers.– (1) The following consequences shall ensue in respect of every transfer which is void by virtue of section 166, namely– (a) the subject-matter of transfer shall with effect from the date of transfer, be deemed to have vested in the State Government free from all encumbrances; (b) the trees, crops and wells existing on the land on the date of transfer shall, with effect from the said date, be deemed to have vested in the State Government free from all encumbrances; (c) the transferee may remove other movable property or the materials of any immovable property existing on such land on the date of transfer within such time as may be prescribed. (2) Where any land or other property has vested in the State Government under sub-section (1), it shall be lawful for the Collector to take over possession over such land or other property and to direct that any person occupying such land or property be evicted therefrom. For the purposes of taking over such possession or evicting such unauthorised occupants, the Collector may use or cause to be used such force as may be necessary.” 6. As per Section 143 of the Act, if bhumidhar with transferable rights uses his holding or part thereof for a purpose not connected with agriculture, horticulture or animal husbandry, the Assistant Collector in charge of the Sub Division may, suo motu or on an application, may make a declaration to that effect, after holding such inquiry, which he deems fit. 7. Sub-Section 3 of Section 143 mandates that if loan is taken by bhumidhar from Uttar Pradesh Financial Corporation or by any other Corporation, owned or controlled by the State Government, on such land held by bhumidhar, by creating the charge thereon, provisions of the Act shall cease to apply. 8. Perusal of Section 154 would reveal that Section 154 can be pressed in service only in respect of land. 9. Section 3 (14) of the Act reads as under: “3. (14) “Land” [except in Sections 109, 143 and 144 and Chapter VII] means land held or occupied for purposes connected with agriculture, horticulture or animal husbandry which includes pisciculture and poultry farming.” 10. According to the definition of “land”, “land” means such land, held or occupied for the purpose connected with agriculture, horticulture or animal husbandry, which includes pisciculture and poultry farming. According to the definition of “land”, “land” means such land, held or occupied for the purpose connected with agriculture, horticulture or animal husbandry, which includes pisciculture and poultry farming. If land is not occupied for horticulture, agriculture or animal husbandry and is being occupied for industrial purposes, it will not fall within the definition of land, as defined under Section 3 (14) of the Act. 11. Since land, in question, is being used for industrial purposes and industry is standing thereon, therefore, property, in question, falls outside the purview of definition of “land”, as defined under Section 3 (14) of the Act. Consequently, Section 154 of the Act has no application in the present case. 12. Mr. Anil Kumar Joshi, Addl. Chief Standing Counsel for the State of Uttarakhand / respondent, does not dispute that Section 167 of the Act can be pressed in service only when land is transferred in violation of Section 154 of the Act. 13. Since property, in question, does not fall within the definition of “land”, as defined under Section 3 (14) of the Act, therefore, sale deed made by PICUP in favour of the petitioner cannot be said to be hit by Section 154 of the Act. Consequently, impugned order does not stand in the eyes of law. 14. In result, writ petition succeeds and is hereby allowed. Impugned order is hereby quashed. Respondents are directed to make necessary correction in the record accordingly.