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Supreme Court of India

STATE OF M.P.versusGHISILAL

Citation
2021 INSC 763
Decided
22 November 2021
Disposal
Appeal(s) allowed

Holding

When land is declared surplus under the Urban Land (Ceiling and Regulation) Act, 1976 and the authority's orders are final, civil courts lack jurisdiction to entertain suits for declaration or injunction, rendering such suits non‑maintainable.

Summary

The State of Madhya Pradesh took possession of 16,000.32 square metres of land in Bhopal that had been declared surplus under the Urban Land (Ceiling and Regulation) Act, 1976, and allotted it to the Bhopal Development Authority for housing the poor. The heir of the original owner filed a civil suit seeking a declaration that the land was not surplus and an injunction against the State, claiming possession had not been taken. The trial court and appellate courts decreed in his favour, but the State appealed to the Supreme Court. The Court held that the ULC Act is a self‑contained code providing specific appeal and revision remedies, thereby excluding the jurisdiction of civil courts to entertain suits concerning land declared surplus once the authority’s orders become final. It also found that possession had indeed been taken by the State, as evidenced by the panchnama and a district judge’s report. Consequently, the appeal was allowed, the lower courts' judgments were set aside, and the suit was dismissed.

Issues considered

  • Whether a civil suit for declaration and injunction is maintainable when the land is subject to the Urban Land (Ceiling and Regulation) Act, 1976 and the competent authority's orders have become final.
  • Whether the jurisdiction of civil courts is barred by implication due to the availability of appeal and revision remedies under the ULC Act.
  • Whether possession of the surplus land was taken by the State.

Legislation cited

Subjects

Urban Land Ceiling ActCivil court jurisdictionDeclaration suitSurplus landAppeal and revision remediesPossessionSelf‑contained code

Judgment

1178                       [2021]
                SUPREME COURT     10 S.C.R. 1178
                               REPORTS                      [2021] 10 S.C.R.


 A                                 STATE OF M.P.
                                           v.
                                      GHISILAL
                          (Civil Appeal No. 2153 of 2012)
                               NOVEMBER 22, 2021
 B
            [R. SUBHASH REDDY AND HRISHIKESH ROY, JJ.]
              Urban Land (Ceiling and Regulation) Act, 1976: ss. 10(1),
       (3) – Land in the urban agglomeration – Declaration of surplus
       land – Jurisdiction of civil court – Held: In view of provisions of
       appeal, revision before the designated appellate and revisional
 C     authorities available for aggrieved parties under the Act, the
       jurisdiction of the civil courts to try suit relating to land which is
       subject-matter of ceiling proceedings, stands excluded by implication
       – Civil court cannot declare, orders passed by the authorities under
       the Act as illegal or non est – On facts, orders passed by the
 D     competent authorities, that the original declarant was holding excess
       land and the consequential notifications issued u/s. 10(1), (3) have
       become final, it was not open for the respondent to file a suit seeking
       declaration – Trial court erred in entertaining the suit, as filed by
       the respondent and even the first appellate court and second
       appellate court have not considered the various grounds raised by
 E     the appellant in proper perspective – Thus, the order passed by the
       trial court as upheld by the appellate court, set aside.
              Allowing the appeal, the Court
              HELD: 1.1 The land in question is in the Urban
       Agglomeration and covered by the Urban Land (Ceiling and
 F     Regulation) Act, 1976. As such, original owner late PS had filed
       declaration under the provisions of the ULC Act and after
       conducting necessary inquiry, final orders were passed by the
       competent authority declaring 16000.32 square meters of land
       as surplus land. It is also clear from the material placed on record
       that consequent to final orders passed by the competent authority,
 G     notifications under Section 10(1) and 10(3) of the ULC Act were
       issued. Although, it is the case of the respondent - plaintiff that
       possession was taken without issuing notice, as such it cannot
       be considered as valid taking over of possession, but it is evident
       from the copy of the panchnama, the respondent, who claims to

 H
                                        1178
                   STATE OF M.P. v. GHISILAL                            1179


be the legal heir of late PS, is also a signatory as a witness to the   A
same. Though the respondent - plaintiff was a witness to the
panchnama for taking over possession, a belated attempt was
made by filing the present suit by the respondent without even
questioning the orders passed by the competent authority under
the Act, declaring the land in question as a surplus land. The trial
court as well as appellate court fell in error in recording a finding   B
that possession was not taken, inspite of taking possession by
conducting panchnama for which respondent is a signatory. In
view of the stand of the appellant, of taking over possession of
the land by conducting panchnama for which respondent is a
signatory, it is difficult to believe the stand of the respondent
that possession was not taken. In view of the stand of the              C
respondent that possession is with the respondent, this Court
called for a report from the District Judge. Pursuant to the same,
report dated 14.04.2021 was sent by the Principal District and
Sessions Judge, Bhopal, Madhya Pradesh to this Court. It is
evident from such report that the appellant has taken possession
of the land and the same was allotted to the Bhopal Development         D
Authority and the same was utilised for construction of about
400 houses for needy slum dwellers by spending huge amount.
Thus, it is clear that possession of the land was not only taken
but same is utilised for a public purpose. [Para 13][1184-F-G;
1085-A-F]
                                                                        E
       1.2 The Urban Land (Ceiling and Regulation) Act, 1976 is
a self-contained Code. Various provisions of the Act make it clear
that if any orders are passed by the competent authority, there is
provision for appeal, revision before the designated appellate
and revisional authorities. In view of such remedies available for
aggrieved parties, the jurisdiction of the civil courts to try suit     F
relating to land which is subject-matter of ceiling proceedings,
stands excluded by implication. Civil court cannot declare, orders
passed by the authorities under the ULC Act, as illegal or non
est. More so, when such orders have become final, no declaration
could have been granted by the civil court. [Para 14][1185-F-H;
1186-A]                                                                 G
       1.3 It is clear from the orders passed by the competent
authorities, that the original declarant was holding excess land
to the extent of 16000.32 square meters. When the orders passed
by the competent authority and consequential notifications issued
                                                                        H
1180            SUPREME COURT REPORTS                      [2021] 10 S.C.R.


 A     under Section 10(1) and 10(3) of the ULC Act have become final,
       it was not open for the respondent to file a suit seeking
       declaration, as prayed for. As the jurisdiction of the civil courts is
       barred by necessary implication, trial court fell in error in
       entertaining the suit, as filed by the respondent and even the
       first appellate court and second appellate court have not
 B
       considered the various grounds raised by the appellant in proper
       perspective. [Para 15][1186-B-D]
             1.4 The judgment and decree in Civil Suit as confirmed by
       the first appellate Court and the High Court, is set aside.
       Consequently, the suit filed by the respondent is dismissed.
 C     [Para 17][1186-F-G]
             Competent Authority, Calcutta, under the Urban Land
             (Ceiling and Regulation) Act, 1976 and another v. David
             Mantosh and others (2020) 12 SCC 542:[2019] 4 SCR
             331 – relied on.
 D
             State of Assam v. Bhaskar Jyoti Sarma and others (2015)
             5 SCC 321 : [2014] 14 SCR 1451; Indore Development
             Authority v. Manoharlal and others (2020) 8 SCC 129
             : [2020] 3 SCR 1; Vidya Devi v. State of Himachal
             Pradesh and others (2020) 2 SCC 569; Mangalsen v.
 E           State of Uttar Pradesh and another (2014) 15 SCC 332;
             Gaiv Dinshaw Irani and others v. Tehmtan Irani and
             others (2014) 8 SCC 294 : [2014] 5 SCR 646; State of
             Uttar Pradesh v. Hari Ram (2013) 4 SCC 280 : [2013]
             2 SCR 301 – referred to.
 F                            Case Law Reference
       [2014] 14 SCR 1451              referred to             Para 9
       [2020] 3 SCR 1                  referred to             Para 9
       (2020) 2 SCC 569                referred to             Para 10
 G     (2014) 15 SCC 332               referred to             Para 10
       [2014] 5 SCR 646                referred to             Para 10
       [2013] 2 SCR 301                referred to             Para 10
       [2019] 4 SCR 331                relied on.              Para 16
 H
                    STATE OF M.P. v. GHISILAL                                 1181


      CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2153                    A
of 2012.
     From the Judgment and Order dated 08.11.2006 of the High Court
of Madhya Pradesh at Jabalpur in Second Appeal No. 129 of 2006.
       Saurabh Mishra, AAG, Aakash Nadolia, Sunny Choudhary, Advs.
for the Appellant.                                                            B

      Ms. Pragati Neekhra, Adv. for the Respondent.
      The Judgment of the Court was delivered by
      R. SUBHASH REDDY, J.
                                                                              C
       1. This Civil Appeal is preferred by the appellant - State of Madhya
Pradesh, aggrieved by the judgment and order dated 08.11.2006 passed
in Second Appeal No.129 of 2006. By the aforesaid order, the High
Court has dismissed the Second Appeal, preferred by the appellant herein
confirming the judgment and decree passed by the learned IV Additional
District Judge, Bhopal, in Civil Appeal No.37-A/2005 dated 23.07.2005         D
and the judgment and decree dated 24.12.2004 passed by the learned
XIIth Civil Judge, Class - II, Bhopal, in Civil Suit No.138-A/2004.
      2. Necessary facts, in brief, are as under:
       3. The agricultural land bearing Survey Nos.171 to 184, 214, 217
and 284 admeasuring 17.18 acres situated at Village Bag Sevania, Tehsil       E
Huzur, District Bhopal, was recorded in the name of Late Padam Singh
as a Bhoomi Swami. In the aforesaid land, late Padam Singh was having
1/4th share. As the said land was covered by the Urban Land (Ceiling
and Regulation) Act, 1976 (for convenience sake, hereinafter referred
to as ‘ULC Act’), late Padam Singh has filed declaration as contemplated      F
under the provisions of the ULC Act. The competent authority has
determined an extent of 16000.32 square meters of land as vacant land
and the same was declared surplus. Consequent to passing of final orders
by the competent authority, a notification under Section 10(1) of the
ULC Act was issued on 16.09.1983 and the notification as contemplated
under Section 10(3) of the ULC Act was published in the Madhya Pradesh        G
Gazette, Part - III dated 20.01.1984.
       4. It is the case of the appellant herein that after following the
necessary procedure contemplated under the ULC Act, possession of
the surplus land was taken. Thereafter, the revenue entries were corrected
                                                                              H
1182             SUPREME COURT REPORTS                           [2021] 10 S.C.R.


 A     showing the State as owner to the extent of the surplus land declared by
       the competent authority. It is also the case of the appellant that as the
       possession was already taken prior to coming into force of the Urban
       Land (Ceiling and Regulation) Repeal Act 1999 (for convenience sake,
       hereinafter referred to as ‘Repeal Act’), the said land was allotted for
       the purpose of constructing dwelling houses to the poor.
 B
              5. The respondent herein had filed suit for declaration and
       permanent injunction on 09.09.2003, claiming himself to be the sole heir
       and adopted son of Late Padam Singh. The relief in the suit reads as
       under:
 C            “1) That the surplus land of 16000.32 square meters which has
              been declared surplus, declaration be exempted under the Urban
              Land (Ceiling and Regulation) Act, 1976 because possession has
              not been taken.
              2) That the defendant be restrained from interfering with the
 D            possession of the respondent.”
              6. The Trial Court i.e., XII Civil Judge, Class - II, Bhopal, by the
       judgment and decree dated 24.12.2004, decreed the suit on the ground
       that possession has not been taken, before the Repeal Act has come into
       force. Trial court also granted consequential relief restraining the appellant
 E     herein from interfering with the possession of the respondent. As against
       the judgment and decree passed by the trial Court, the matter was carried
       by way of first appeal, by the appellant, before the IV Additional District
       Judge, Bhopal and the Appellate Court has dismissed the appeal by the
       judgment and decree dated 23.07.2005. As against the same, the appellant
       has carried the matter by way of Second Appeal before the High Court.
 F     The Second Appeal is also dismissed by the impugned judgment and
       decree dated 08.11.2006.
              7. The aforesaid impugned judgment is questioned in this appeal
       mainly on the ground that after necessary notifications were issued under
       Section 10 of the ULC Act, appellant has taken possession and utilised
 G     the subject land for construction of houses for the poor by spending
       huge amounts. It is the case of the appellant that the respondent has not
       questioned the orders passed by the competent authority declaring the
       land as surplus land, it is not open to seek declaration by the respondent
       - plaintiff as prayed for. A specific ground was raised in the grounds of
       appeal that after taking possession, land was recorded in the name of
 H
     STATE OF M.P. v. GHISILAL [R. SUBHASH REDDY, J. ]                          1183


the Government and the surplus land was allotted to Bhopal Development          A
Authority for the benefit of slum dwellers and the said Authority has
already constructed 100 (hundred) houses on the land by spending about
Rs.1.50 Crores by the time the appeal was preferred to this Court. It is
also the case of the appellant that relief as sought in the suit is a belated
attempt, though such suit is not maintainable in law.
                                                                                B
     8. We have heard Mr. Saurabh Mishra, learned Additional
Advocate General appearing for the appellant - State, and Mrs. Pragati
Neekhra, learned counsel for the respondent, at length.
       9. It is contended by the learned counsel for the appellant that
though the suit as framed is not maintainable at all, the Courts below          C
have not only entertained the suit but also granted decree contrary to the
various orders and notifications issued under the provisions of the ULC
Act, 1976. It is submitted that when possession was already taken and
the land is recorded in the name of the Government, trial court has
erroneously decreed the suit of the respondent and confirmed on appeal
on the premise that possession is not taken. It is submitted that in fact,      D
not only possession of the subject land is taken and recorded in the name
of the Government, but the same is also allotted to the Bhopal
Development Authority for construction of houses for the poor and
substantial amount is spent for construction of houses. It is submitted
that in any event, the declaration as prayed for, is not at all maintainable    E
when the orders passed by the competent authority have become final
and possession of the land was taken prior to coming into force of the
Repeal Act. The learned counsel for the appellant, in support of his
arguments, has placed reliance on the judgments of this Court in the
cases of State of Assam v. Bhaskar Jyoti Sarma and others1, Indore
Development Authority v. Manoharlal and others2and Competent                    F
Authority, Calcutta, under the Urban Land (Ceiling and Regulation)
Act, 1976 and another v. David Mantosh and others3.
       10. On the other hand, Mrs. Pragati Neekhra, learned counsel for
the respondent, has vehemently opposed the case of the appellant and
submitted that when the original declarant died before possession is taken,     G
without issuing any fresh notice to the only legal heir of the original
declarant, it was not open to the appellant authorities to take possession
1
  (2015) 5 SCC 321
2
  (2020) 8 SCC 129
3
  (2020) 12 SCC 542                                                             H
1184             SUPREME COURT REPORTS                          [2021] 10 S.C.R.


 A     consequent to the orders passed under the ULC Act. It is submitted that
       in any event, if the suit filed as prayed for is not maintainable, this Court
       may mould the relief by issuing appropriate directions. The learned counsel,
       in support of her arguments, has placed reliance on the judgments of this
       Court in the cases of Vidya Devi v. State of Himachal Pradesh and
       others4, Mangalsen v. State of Uttar Pradesh and another5, Gaiv
 B
       Dinshaw Irani and others v. Tehmtan Irani and others6and State of
       Uttar Pradesh v. Hari Ram7.
             11. Having heard the learned counsel for the parties, we have
       perused the impugned judgment and other material placed on record.
 C           12. As evident from the copy of the plaint, which is placed on
       record, the respondent filed the suit for declaration and permanent
       injunction. The prayer in the suit reads as under:
              “(A) A decree be passed in favour of the plaintiff and against the
              defendant to the effect that 16000.32 square meters of surplus
 D            declared land out of the disputed land of the ownership of the
              plaintiff the description whereof has been given in Para 1 is free
              from the provisions of Urban Land Ceiling Act, 1976 because the
              possession whereof was not received by the government till the
              date the Repeal Act became effective.

 E            (B) A permanent injunction be passed in favour of the plaintiff
              and against the defendant thereby directing the defendant not to
              interfere in the peaceful possession of the plaintiff.”
               13. It is not in dispute that the land in question is in the Urban
       Agglomeration and covered by the ULC Act, 1976. As such, original
       owner late Padam Singh has filed declaration under the provisions of the
 F
       ULC Act and after conducting necessary inquiry, final orders were passed
       by the competent authority declaring 16000.32 square meters of land as
       surplus land. It is also clear from the material placed on record that
       consequent to final orders passed by the competent authority, notifications
       under Section 10(1) and 10(3) of the ULC Act were issued. Although, it
 G     is the case of the respondent - plaintiff that possession was taken without
       issuing notice, as such it cannot be considered as valid taking over of

       4
         (2020) 2 SCC 569
       5
         (2014) 15 SCC 332
       6
         (2014) 8 SCC 294
       7
 H       (2013) 4 SCC 280
     STATE OF M.P. v. GHISILAL [R. SUBHASH REDDY, J. ]                            1185


possession, but it is evident from the copy of the panchnama, the                 A
respondent, who claims to be the legal heir of late Padam Singh, is also
a signatory as a witness to the same. Though the respondent - plaintiff
was a witness to the panchnama for taking over possession, a belated
attempt was made by filing the present suit by the respondent without
even questioning the orders passed by the competent authority under
                                                                                  B
the Act, declaring the land in question as a surplus land. The trial court
as well as appellate court fell in error in recording a finding that possession
was not taken, inspite of taking possession by conducting panchnama
for which respondent is a signatory. In the judgment relied on by the
learned counsel for the appellant in the case of Indore Development
Authority2, this Court while dealing with the provisions of the Land              C
Acquisition Act has held that when the possession of the land is taken by
drawing a panchnama, that amounts to taking physical possession of
the land. It is further held that anybody claiming possession thereafter
has to be treated as a trespasser and has no right to possess the land
which vests with the State free from all encumbrances. In view of the
                                                                                  D
stand of the appellant, of taking over possession of the land by conducting
panchnama for which respondent is a signatory, it is difficult to believe
the stand of the respondent that possession was not taken. In view of
the stand of the respondent that possession is with the respondent, this
Court called for a report from the District Judge. Pursuant to the same,
report dated 14.04.2021 was sent by the learned Principal District and            E
Sessions Judge, Bhopal, Madhya Pradesh to this Court. It is evident
from such report that the appellant has taken possession of the land and
the same was allotted to the Bhopal Development Authority and the
same was utilised for construction of about 400 houses for needy slum
dwellers by spending huge amount. Thus, it is clear that possession of
                                                                                  F
the land was not only taken but same is utilised for a public purpose.
       14. The Urban Land (Ceiling and Regulation) Act, 1976 is a self-
contained Code. Various provisions of the Act make it clear that if any
orders are passed by the competent authority, there is provision for appeal,
revision before the designated appellate and revisional authorities. In
view of such remedies available for aggrieved parties, the jurisdiction of        G
the civil courts to try suit relating to land which is subject-matter of
ceiling proceedings, stands excluded by implication. Civil court cannot
declare, orders passed by the authorities under the ULC Act, as illegal
or non est. More so, when such orders have become final, no declaration
could have been granted by the civil court. In this regard reference may
                                                                                  H
1186                SUPREME COURT REPORTS                         [2021] 10 S.C.R.


 A     be made to the judgment of this Court in the case of Competent
       Authority, Calcutta, under the Urban Land (Ceiling and Regulation)
       Act, 19763. We are totally in agreement with the aforesaid view taken
       by this Court.
               15. In this case, it is clear from the orders passed by the competent
       authorities, that the original declarant was holding excess land to the
 B
       extent of 16000.32 square meters. When the orders passed by the
       competent authority and consequential notifications issued under Section
       10(1) and 10(3) of the ULC Act have become final, it was not open for
       the respondent to file a suit seeking declaration, as prayed for. As we
       are of the view that jurisdiction of the civil courts is barred by necessary
 C     implication, trial court fell in error in entertaining the suit, as filed by the
       respondent and even the first appellate court and second appellate court
       have not considered the various grounds raised by the appellant in proper
       perspective.
               16. Although it is contended by the learned counsel appearing for
       the respondent to mould the relief, it is trite principle that where the suit
 D     is filed with particular pleadings and reliefs, it is to be considered with
       reference to pleadings on record and the reliefs claimed in the suit only.
       The judgments relied on by the learned counsel for the respondent would
       not render any assistance to support the case of the respondent. As we
       are in agreement with the view taken by this Court earlier in the case of
 E     Competent Authority, Calcutta, under the Urban Land (Ceiling and
       Regulation) Act, 19763 this appeal is to be allowed by setting aside the
       judgment and decree passed by the trial court as confirmed by the appellate
       court on the ground that such suit itself was not maintainable.
               17. For the aforesaid reasons, the Civil Appeal is allowed. The
       impugned judgment and decree dated 24.12.2004 in Civil Suit No.138-
 F     A/2004 passed by the learned XII Civil Judge, Class - II, Bhopal, as
       confirmed by the first appellate Court vide judgment and decree dated
       23.07.2005 in Civil Appeal No.37-A/2005 and the High Court vide
       judgment and order dated 08.11.2006 in S.A. No.129 of 2006, is set
       aside. Consequently, the suit filed by the respondent before the learned
 G     XII Civil Judge, Class-II, Bhopal stands dismissed, with no order as to
       costs.




 H     Nidhi Jain                                                       Appeal allowed.


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