Supreme Court Allows Appeals in Land Exchange Dispute Under U.P. Zamindari Abolition and Land Reforms Act, 1950 — Exchange Deed Without Permission Void, But Voidable Only at Instance of Gaon Sabha or Land Holder

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Case Note & Summary

The appeals arise from a judgment of the Allahabad High Court dated 5th July 2007 concerning a dispute over land rights under the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950. The facts are that Smt. Chando and Sita Ram (predecessors of the appellants) sold Plot No. 2902 to N.D. Chaudhary (father of respondent nos. 10 and 11) via a registered sale deed on 24th January 1973. Subsequently, N.D. Chaudhary exchanged this plot with Kesho Ram (predecessor of respondent nos. 1 to 8) for plots 2863 and 2888 through a registered exchange deed dated 2nd March 1974, without obtaining permission from the Assistant Collector as required under Section 161 of the Act. During consolidation proceedings, the appellants objected to the exchange, claiming the sale deed was invalid and the exchange void. The Consolidation Officer held the sale deed valid but the exchange void for want of permission. On appeal, the appellate authority held the sale deed not proved and the exchange void. The revisional authority dismissed revisions but proceeded on the premise that the sale deed was valid. The High Court, in a writ petition, held that the exchange was void under Section 166 but could only be challenged by the State, not by the appellants who had sold the land. The Supreme Court framed the issue of the legal consequences of an exchange without permission under Section 161. The appellants argued that the exchange was void and they retained rights over the plot. The respondents contended that the appellants lost rights after the sale and that the exchange was voidable only at the instance of Gaon Sabha or land holder, and no action was taken within limitation. The Supreme Court analyzed Sections 161, 166, and 167 of the Act, noting that prior to the 1981 amendment, Section 166 declared transfers in contravention of the chapter void, and Section 167 provided for ejectment suits by Gaon Sabha or land holder within six years. The Court held that the exchange deed was void under Section 166 for want of permission, but the remedy of ejectment under Section 167 was available only to the Gaon Sabha or land holder, not to third parties like the appellants. Since the appellants had already sold the land in 1973, they had no subsisting rights. No suit for ejectment was filed within limitation. The Court allowed the appeals, set aside the High Court's order, and dismissed the writ petition filed by Kesho Ram, thereby upholding the concurrent findings of the consolidation authorities that the exchange was void but the appellants had no right to challenge it.

Headnote

A) Land Law - Exchange of Land - Void vs Voidable - Sections 161, 166, 167 of Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950 - The exchange of land without permission of Assistant Collector under Section 161 is void under Section 166, but the remedy of ejectment under Section 167 is available only to Gaon Sabha or land holder, not to a third party who has already sold the land. The appellants, who sold the land in 1973, cannot challenge the exchange deed of 1974. (Paras 13-20)

B) Land Law - Limitation for Ejectment - Section 167 read with Rule 338 of U.P. Zamindari Abolition & Land Reforms Rules, 1952 - Suit for ejectment under Section 167 must be filed within six years from the date of illegal transfer. No such suit was filed by Gaon Sabha or land holder within limitation, and the appellants, being third parties, cannot seek ejectment. (Paras 14, 20)

C) Land Law - Rights of Transferor After Sale - The appellants, having sold the land by registered sale deed in 1973, lost all rights and interest in the property. They cannot claim any right over the land based on alleged invalidity of a subsequent exchange deed between the buyer and another party. (Paras 11, 20)

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Issue of Consideration

What are the legal consequences of a registered exchange deed executed without following the procedure prescribed under Section 161 of the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950?

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Final Decision

The Supreme Court allowed the appeals, set aside the impugned judgment of the High Court dated 5th July 2007, and dismissed the writ petition filed by late Kesho Ram. The Court held that the exchange deed was void under Section 166 but the remedy of ejectment under Section 167 was available only to Gaon Sabha or land holder, not to the appellants who had already sold the land. The concurrent findings of the consolidation authorities that the exchange was void were upheld, but the appellants had no right to challenge it.

Law Points

  • Exchange of land without permission of Assistant Collector under Section 161 of U.P. Zamindari Abolition and Land Reforms Act
  • 1950 is void
  • but voidable only at the instance of Gaon Sabha or land holder under Section 167
  • not by third parties who have already transferred their rights
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Case Details

2019 LawText (SC) (9) 86

Civil Appeal No(s). 8179 of 2016 with Civil Appeal No(s). 8181 of 2016

2019-09-17

Rastogi, J.

Sita Ram (Dead) Through LRs.

Bharat Singh (Dead) Through LRs & Ors.

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Nature of Litigation

Civil appeals arising from a land dispute under the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950 and the Uttar Pradesh Consolidation of Holdings Act, 1953.

Remedy Sought

The appellants sought to set aside the High Court's judgment and to establish their right over Plot No. 2902 based on the alleged invalidity of the exchange deed.

Filing Reason

The appellants challenged the High Court's order which held that the exchange deed was void but could not be challenged by them as they had already sold the land.

Previous Decisions

The Consolidation Officer held the sale deed valid and the exchange void for want of permission. The appellate authority held the sale deed not proved and the exchange void. The revisional authority dismissed revisions. The High Court held the exchange void but not challengeable by the appellants.

Issues

Whether the exchange deed dated 2nd March 1974, executed without permission under Section 161 of the U.P. Zamindari Abolition and Land Reforms Act, 1950, is void or voidable? Whether the appellants, who sold the land in 1973, have any right to challenge the exchange deed of 1974?

Submissions/Arguments

Appellants: The exchange deed is void under Section 166 for want of permission, and the appellants retain rights over the plot despite the sale deed. Respondents: The appellants lost rights after the sale; the exchange is voidable only at the instance of Gaon Sabha or land holder, and no action was taken within limitation.

Ratio Decidendi

An exchange of land without permission of the Assistant Collector under Section 161 of the U.P. Zamindari Abolition and Land Reforms Act, 1950 is void under Section 166, but the remedy of ejectment under Section 167 is available only to the Gaon Sabha or land holder, not to a third party who has already transferred their rights. The appellants, having sold the land in 1973, lost all rights and cannot challenge the exchange deed of 1974.

Judgment Excerpts

The moot question which has been raised for consideration is as to what will be the legal consequences if the registered exchange deed dated 2nd March, 1974 has been executed without following the procedure prescribed as provided under Section 161 of the Act, 1950. Any transfer, made by or on behalf of a sirdar or asami in contravention of the provisions of this chapter shall be void. Where a sirdar or asami has made any transfer in contravention of the provisions of this Act, the transferee and every person who may have thus obtained possession of the whole or part of the holding shall be liable to ejectment on the suit of the Gaon Sabha or the land holder, as the case may be.

Procedural History

The dispute originated in consolidation proceedings under the U.P. Consolidation of Holdings Act, 1953. The Assistant Consolidation Officer received an application under Section 9A(2) from late Kesho Ram for mutation based on the exchange deed. The Consolidation Officer held the sale deed valid and the exchange void. The appellate authority under Section 11 of the Act, 1953 dismissed the appeal on 18th January 1982, holding the sale deed not proved and the exchange void. The revisional authority under Section 48 of the Act, 1953 dismissed revisions on 19th July 1984. Late Kesho Ram filed a writ petition under Article 227 of the Constitution before the Allahabad High Court, which passed the impugned judgment on 5th July 2007. The present appeals were filed before the Supreme Court against that judgment.

Acts & Sections

  • Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950: 161, 166, 167
  • Uttar Pradesh Consolidation of Holdings Act, 1953: 9A, 11, 48
  • Uttar Pradesh Zamindari Abolition & Land Reforms Rules, 1952: 338
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Supreme Court Supreme Court Allows Appeals in Land Exchange Dispute Under U.P. Zamindari Abolition and Land Reforms Act, 1950 — Exchange Deed Without Permission Void, But Voidable Only at Instance of Gaon Sabha or Land Holder
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