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[Cites 19, Cited by 0]

Gujarat High Court

Mustufakhan R. Pathan & 4 vs State Of Gujarat & 7 on 27 April, 2016

Author: Abhilasha Kumari

Bench: Abhilasha Kumari

                 C/SCA/3406/1992                                            CAV JUDGMENT




                     IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                        SPECIAL CIVIL APPLICATION NO. 3406 of 1992


         FOR APPROVAL AND SIGNATURE:


         HONOURABLE SMT. JUSTICE ABHILASHA KUMARI
         ================================================================
         1     Whether Reporters of Local Papers may be allowed
               to see the judgment ?
         2     To be referred to the Reporter or not ?
         3     Whether their Lordships wish to see the fair copy of
               the judgment ?
         4     Whether this case involves a substantial question of
               law as to the interpretation of the Constitution of
               India or any order made thereunder ?
         ================================================================
                          MUSTUFAKHAN R. PATHAN & 4....Petitioner(s)
                                         Versus
                           STATE OF GUJARAT & 7....Respondent(s)
         ================================================================
         Appearance:
         MR IH SYED FOR MR YH MOTIRAMANI, ADVOCATE for Petitioner No.1 - 1.8, 2 - 5
         MS ASMITA PATEL, ASST.GOVERNMENT PLEADER for Respondent No. 1
         MR MUKESH A PATEL, ADVOCATE for the Respondent(s) No. 4
         MR ZUBIN F BHARDA, ADVOCATE for the Respondent(s) No. 4
         MR. SHITAL R PATEL FOR MR KISHAN H DAIYA, ADVOCATE for Respondent(s)
         No. 3.1 , 5.1 , 5.4
         RULE SERVED for the Respondent(s) No. 6 - 8
         ================================================================
             CORAM: HONOURABLE SMT. JUSTICE ABHILASHA KUMARI

                                      Date : 27/04/2016
                                       CAV JUDGMENT

1. The   present   petition   has   been   filed   under  Articles­226   and   227   of   the   Constitution   of   India,  inter­alia, with a prayer to quash and set aside the  Page 1 of 47 HC-NIC Page 1 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT order   dated   07.08.1991/11.10.1991,   passed   by   the  Principal   Secretary,   Revenue   Department,   (Respondent  No.1),   in   Revision   Application   No.SSRD/AMD­REV­4­91,  in exercise of power under Section­211 of the Bombay  Land   Revenue   Code,   1879   ("the   Code",   for   short),  whereby   the   order   dated   21.12.1984,   passed   by   the  Special Recovery Officer, has been set aside.

2. A brief factual background of the case would be  necessary in order to understand the issues involved  in the petition.

2.1 Land bearing Block/Survey No.41, admeasuring 36­  Acres 25­Gunthas, situated at village Miroli, Taluka  Dascroi,   District   Ahmedabad   (the   land   in   question)  belonged to respondents Nos.2 and 5, who were heavily  indebted   to  respondents   Nos.7   and   8­Cooperative  Societies.   Proceedings   were   initiated   against  respondents Nos.2 to 5 under the Gujarat Co­operative  Societies   Act,   1961   ("the   Act",   for   short),   decrees  were   passed   and   certificates   were   issued   by   the  Registrar   of   Cooperative   Societies   under   Section­106  of the Act, in the years 1979 and 1980. Respondents  Nos.2 to 5 failed to make the payments as required by  Page 2 of 47 HC-NIC Page 2 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT the   certificates,   therefore,   proceedings   for   the  recovery of an amount of Rs.90,000/­ were initiated.  Notice   under   Section­152   of   the   Code   was   issued   to  respondents  Nos.2   to  5.  As  the   said  respondents   did  not   make   the   payment   of   the   outstanding   dues,   the  Special Recovery Officer issued a proclamation under  the Code on 20.10.1984, regarding the public auction  of   the   land   in   question,   for   the   recovery   of  Rs.90,000/­,   as   arrears   of   land   revenue,   by   selling  the said land. After following the due procedure and  formalities, the auction of the land in question was  held   on   21.11.1984.   Respondents   Nos.2   to   5   were  present   at   the   auction.   The  petitioners   made   the  highest   bid,   at   Rs.1,01,786/­,   which   was   duly  accepted.   The  petitioners   paid   the   entire   amount   of  Rs.1,01,786/­,   out   of   which   an   amount   of  Rs.91,235.50ps.  was paid to respondents Nos.7 and 8­ Cooperative   Societies   and   the   remaining   amount   of  Rs.10,550/­ was paid to respondents Nos.2 to 5 by the  Special   Recovery   Officer.   The   said  respondents  accepted the amount. On 21.12.1984, the order of the  confirmation of the sale of the land was passed by the  Special Recovery Officer. The possession of the land  Page 3 of 47 HC-NIC Page 3 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT was handed over to the petitioners. The said order is  to   be   found   at   Annexure­A   to   the   petition.   The  possession receipt dated 21.12.1984, is also on record  at Annexure­B. 2.2 It appears that respondents Nos.2 to 5 instituted  Regular   Civil   Suit   No.773/1985   against   the  petitioners,   praying   for   the   protection   of   their  possession over the land in question. The petitioners  also   filed   Regular   Civil   Suit   No.642/1986,   with  similar   prayers.   The   record   reveals   that   this   Court  made   an   attempt   to   find   out   the   status   of   the   two  civil   suits.   The   record   of   Regular   Civil   Suit  No.642/1986 filed by the petitioners is not traceable  and neither could learned counsel for the petitioners  or respondents throw any light on this aspect. As for  Regular Civil Suit No.773/1985, the same was withdrawn  after the passing of the impugned order. 2.3 It is the case of the  petitioners that they are  auction   purchasers   who   have   purchased   the   property  after   participating   in   the   auction   and   making   the  highest bid. There was no grievance from respondents  Nos.2   to   5   during   the   entire   proceedings   and   even  Page 4 of 47 HC-NIC Page 4 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT thereafter, respondents Nos.2 to 5, who were present  during   the   auction   proceedings,   did   not   raise   any  objection.   In   fact,   they   accepted   the   amount   of  Rs.10,550/­,   being   the   balance   after   making   the  payment of the outstanding dues to  respondents Nos.7  and   8­Cooperative   Societies.   The  petitioners   assert  that   no   grievance   was   raised   from   any   quarter   from  1984   to   1991.   All   of   a   sudden,   the  petitioners  received a notice regarding the hearing of a Revision  Application before respondent No.1, along with a copy  of   an   application   made   by  respondents   Nos.2   to   5,  asking them to appear on 22.07.1991. It is the case of  the  petitioners that  they appeared before respondent  No.1 on 22.07.1991 and pointed out that they held the  status of agriculturists even prior to the auction and  requested for time to produce documents in support of  this   assertion.   According   to   the  petitioners,  they  obtained   the   papers   of   the   relevant   revenue   record,  such   as   Village   Form   No.7/12,   and   produced   the  documents   before  respondent  No.1,   showing   that   they  were agriculturists when the auction took place. The  grievance of the  petitioners is that, without taking  the said documents into consideration or even dealing  Page 5 of 47 HC-NIC Page 5 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT with them,  respondent  No.1 set aside the order dated  21.12.1984,   passed   by   the   Special   Recovery   Officer  under Section­155 of the Code, confirming the sale of  the land in question in favour of the applicants. By  the   impugned   order   dated   07.08.1991/11.10.1991,  respondent  No.1   held   that   the  petitioners   were   not  agriculturists and, hence, could not have participated  in   the   auction.   Aggrieved   thereby,   the  petitioners  have approached this Court.

3. Mr.I.H.Syed,   learned   counsel   appearing   for  Mr.Y.H.Motiramani,  learned   advocate   for  the  petitioners, has submitted that there is a gross delay  of almost seven years in exercising suo motu powers of  revision by respondent No.1. Such a long delay is not  a reasonable one. The power under Section­211 of the  Code has to be exercised within a reasonable period of  time, as has been held by the Supreme Court and this  Court in a catena of judgments.

3.1 In support of this submission, reliance has been  placed   upon   a   judgment   of   the   Supreme   Court   in   the  case of  State of Gujarat Vs. Patel Raghav Natha and  others, reported in 1969 GLR 992.

Page 6 of 47 HC-NIC Page 6 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT 3.2 The   relevant   extract   of   the   said   judgment   is  reproduced hereinbelow :

"12.   The   question   arises   whether   the  Commissioner can revise an order made under sec.  65   at   any   time.   It   is   true   that   there   is   no  period   of   limitation   prescribed   under   sec.   211,  but it seems to us plain that this power must be   exercised   in   reasonable   time   and   the   length   of   the   reasonable   time   must   be   determined   by   the   facts   of   the   case   and   the   nature   of   the   order  which is being revised.
13. It seems to us that sec.65 itself indicates  the   length   of   the   reasonable   time   within   which   the Commissioner act under sec. 211. Under sec.   65 of the Code if the Collector does not inform  the applicant of his decision on the application  within   a   period   of   three   months   the   permission   applied for shall be deemed to have been granted.  This section shows that a period of three months  is considered ample for the Collector to make up  his mind and beyond that the legislature thinks   that   the   matter   is   so   urgent   that   permission   shall   be   deemed   to   have   been   granted.   Reading   secs. 211 and 65 together it seems to us that the  Commissioner must exercise his revisional powers  within   a   few   months   of   the   order   of   the   Collector. This is reasonable time because after  the grant of the permission for building purposes  Page 7 of 47 HC-NIC Page 7 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT the occupant is likely to spend money on starting  building operations at least within a few months  from the date of the permission. In this case the  Commissioner set aside the order of the Collector  on October 12, 1961, i.e., more than a year after  the order, and it seems to us that this order was  passed too late.
14.   We are also of the opinion that the order   of   the   Commissioner   should   be   quashed   on   the   ground that he did not give any reasons for his  conclusions.   We   have   already   extracted   the  passage above which shows that after reciting the  various   contentions   he   badly   stated   his  conclusions without disclosing his reasons. In a  matter   of   this   kind   the   Commissioner   should  indicate his reasons, however briefly, so that an  aggrieved party may carry the matter further if   so advised." 

3.3 Another judgment relied upon is that in the case  of  Janardan  D. Patel  Vs. State of Gujarat,  reported  in  1997   (1)   GLR   50.   The   relevant   paragraphs   are   as  below :

"8.   It   cannot   be   gainsaid   that   revisional  powers under the relevant provisions contained in  Rule   108(6)   of   the   Rules   are   akin   to   those  contained in Sec. 211 of the Code. What applies  to Sec. 211 of the Code would apply with equal   Page 8 of 47 HC-NIC Page 8 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT force to Rule 108(6) of the Rules.
9.   In each petition the revisional powers have  been exercised by the Deputy Collector beyond one   year after the concerned mutation entry was made   and certified by the concerned Mamlatdar. This he   could   not   have   done   in   view   of   the   aforesaid   binding ruling of the Supreme Court in the case  of Patel Raghav Natha (supra) and the aforesaid  Division Bench ruling of this Court in the case  of Bhagwanji Bawanji Patel (supra). In that view   of the matter, the impugned order at Annexure D  to each petition cannot be sustained in law. An  order affirming an illegal and invalid order is  of   no   consequence.   In   that   view   of   the   matter,  the impugned orders at Annexures E and F to each  petition  affirming  impugned  order  at  Annexure  D  to each petition cannot be sustained in law."

3.4 It   is   submitted   that,   in   the   present   case,  revisional   powers   have   been   exercised   after   a   gross  delay   of   almost   seven   years   which   is   a   highly  unreasonable period of time, and that too without any  reasons being indicated in the impugned order. 3.5 It is next submitted by learned counsel for the  petitioners   that   the   petitioners   are,   in   fact,  agriculturists and possessed that status even prior to  Page 9 of 47 HC-NIC Page 9 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT the date of the auction. The petitioners hold land in  Village   Kolat,   Taluka   Sanand   and   were   entitled   to  purchase   the   land   in   question   in   the   auction.   The  petitioners had satisfied the Special Recovery Officer  in   this   regard   and   this   fact   was   known   to   all  concerned. It is submitted that pursuant to the order  confirming the sale in favour of the petitioners, they  were put into possession of the land and their names  were   mutated   in   the   revenue   records.   No   objections  were raised by any person at that point of time.  3.6 It is contended that respondent No.1 gave a very  short period of time to the petitioners in order to  enable   them   to   produce   documents   evidencing   their  status   as   agriculturists.   These   documents   were  produced on 23.08.1991, before the impugned order was  passed,   but   find   no   mention   in   the   said   order.   The  order   bears   two   dates,   that   of   07.08.1991   and  11.10.1991.   It   is   evident   that   the   documents   were  produced before the order was signed and released on  11.10.1991, but they have not even been mentioned in  the impugned order. 

3.7 Learned   counsel   for   the   petitioners   further  submits that even otherwise, a transaction of the sale  Page 10 of 47 HC-NIC Page 10 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT of land in a public auction would not be hit by the  provisions of Section­63A of the Gujarat Tenancy and  Agricultural Lands Act ("the Tenancy Act", for short),  in view of the retrospective amendment nullifying the  condition of holding agricultural land within a radius  of 8 kilometers. It is submitted that Section­43 (1AA)  of  the   Tenancy  Act   would   override   the   provisions   of  Section­63A   and,   hence,   the   sale,   even   if   made   in  favour of a non­agriculturist (which is not the case  here) cannot be set aside. However, the petitioners do  hold agricultural land at village Kolat. The auction  purchase would not be hit by Section­63 of the Tenancy  Act, in view of the Amending Act of 2001, whereby the  condition of holding agricultural land within a radius  of 8 Kilometers has been deleted, with retrospective  effect.   The   contention   of   respondent   No.1   that   the  petitioners did not hold agricultural land within the  said   radius,   which   is   the   only   reason   for   setting  aside the sale, is, therefore, untenable. 3.8 It   is   strenuously   argued   by   learned   counsel  that, when the public auction was held by the Special  Recovery Officer, no condition was imposed that only  Page 11 of 47 HC-NIC Page 11 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT an   agriculturist   could   participate   in   the   auction.  Even if it is presumed, though not admitted, that the  petitioners   are   not   agriculturists,   the   auction  proceedings could not have been set aside due to the  retrospective amendment to the Tenancy Act. 3.9 In support of this submission reliance has been  placed   upon   a   judgment   of   a   Division   Bench   of   this  Court   dated   23.11.2010,   passed   in  Letters   Patent  Appeal No.1527/2010, in the case of State of Gujarat  Vs.   Hasmukhlal   Ishvarlal   Gandhi, wherein it is held  as below :

"4. From   the   documents   on   record,   it   becomes   clear   that   land   in   question   was   sold   through   public   auction   by   the   Special   Recovery   Officer   of   the   Land   Development   Bank   since   original   owner   was   unable   to   pay   bank   dues.   Necessary   permission in this regard was also obtained from   the   Collector.   It   is   not   in   dispute   that   the   Special   Recovery   Officer   was   vested   with   all   powers of the Collector by delegation under the   Bombay   Land   Revenue   Code   for   recovery   of   all   bank dues, except for Section 157 and 159 of the   Code. At the time of auction, no objection with   respect to status of the purchasers was raised.   Their   offer   being   highest   was   accepted.   Upon   Page 12 of 47 HC-NIC Page 12 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT payment   of   full   consideration,   sale   was   also   confirmed.

5.   Since the show cause notice leading to the  order passed by the Collector is not on record,  it   is   not   clear   what   exactly   was   the   notice  issued by the Collector to the land purchasers.  However,   it   does   appear   that   the   proceedings  arose out of mutation entry with respect to said  land upon its sale to the respondents herein. If  that   be   so,   question   of   reopening   the   order   of  Special   Recovery   Officer   dated   24.6.1985  confirming   the   sale   in   favour   of   respondents  herein   in   said   proceedings   would   not   arise.  As   already   noted,   Special   Recovery   Officer   was   exercising   delegated   powers   of   the   Collector   under   the   Bombay   Land   Revenue   Code.   While   considering   the   question   of   certification   of  mutation   entry,   validity   of   auction   sale   could   not   have   been   gone   into.   In   other   words,   from   the   record   it   appears   that   issue   was   placed   before the Collector in view of the objection by   the   Circle   Inspector   to   certification   of   mutation   entry   in   favour   of   the   purchasers.   While   examining   these   aspects,   Collector   could   not have invalidated the auction sale by setting   aside   order   of   confirmation   passed   by   the   Special Recovery Officer. It is not clear under   which   provision,   Collector   was   exercising   such   powers. If at all, order should have been taken   Page 13 of 47 HC-NIC Page 13 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT in   revision   by   the   competent   authority   in   accordance   with   law   after   issuance   of  appropriate proceedings. This was not done."

(emphasis supplied) 3.10  In support of the contention that the provisions  of Section­43(1AA) of the Tenancy Act would override  Section­63A   of   the   said   Act   and,   therefore,   the  purchaser would not be required to comply with any of  the conditions in Section­63A, learned counsel for the  petitioner has relied upon a judgment of this Court in  the case of Dahyabhai Dayalbhai Rohit and another Vs.  State of Gujarat and others, reported in 2007 (3) GLR  1974.   The   said   judgment   shall   be   discussed   at   the  stage below. 

3.11  It is submitted that the provisions of Section­ 43(1AA)   also   apply   to   a   loan   advanced   by   a  Cooperative   Society,   therefore,   the   auction   of   the  land in question, for default in the payment of the  loan advanced by respondents Nos.7 and 8­Cooperative  Societies could not have been set aside. 3.12   On   the   basis   of   the   above   submissions   it   is  urged, on behalf of the petitioners, that the petition  Page 14 of 47 HC-NIC Page 14 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT be allowed and the impugned order passed by respondent  No.1, be quashed and set aside.

4. The petition has been opposed by Ms.Asmita Patel,  learned   Assistant   Government   Pleader,   who   has  supported the impugned order and submitted that, after  the confirmation of the sale of the land in question  by the Special Recovery Officer, there was a proposal  from the Office of the Assistant Collector, Viramgam,  to  cancel   the   auction   sale  which,   according   to   him,  was   irregular   and  illegal.  There  was   also  a   request  from respondent No.2 to cancel the sale on the ground  that the petitioners were not agriculturists when the  sale took place and could not have participated in the  auction. Learned Assistant Government Pleader submits  that for the above reasons, respondent No.1 exercised  power under Section­211 of the Code and cancelled the  sale, by the impugned order dated 11.10.1991. Learned  Assistant   Government   Pleader   has   further   contended  that   at   the   relevant   point   of   time   it   was   the  requirement   of   law   that   a   person   desirous   of  purchasing   agricultural   land   must   hold   agricultural  land located within a radius of 8 Kilometers from the  Page 15 of 47 HC-NIC Page 15 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT land proposed to be purchased. The petitioners did not  fulfil this requirement. Though this condition has now  been deleted by an amendment, it was applicable when  the   auction   purchase   took   place.   Learned   Assistant  Government Pleader has further submitted that no time  period   has   been   prescribed   in   the   Code   for   the  exercise   of   power   under   Section­211,   therefore,   it  cannot be said there has been a delay on the part of  respondent No.1.

5. Mr.Zubin F. Bharda, learned advocate has appeared  for respondent No.4 (one of the original owners of the  land) and made detailed submissions to the effect that  the   original   land   owners   (respondents   Nos.2   to   5),  were not affluent persons. They had taken loans from  respondents Nos.7 and 8 Cooperative Societies, which  they   were   unable   to   repay.   Scarcity   conditions   were  prevailing   at   the   relevant   period   of   time   and   they  could   not   make   two   ends   meet.   It   is   submitted   that  their   inability   to   repay   the   amount   to   respondents  Nos.7 and  8 led  to  the  auction  of  their  land.  As  a  result,   the   original   landowners   have   been   rendered  landless.

Page 16 of 47 HC-NIC Page 16 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT 5.1 It   is   contended   that   the   petitioners   could   not  have   participated   in   the   auction   as   they   were   not  agriculturists at the relevant point of time. They did  not produce any record of their being agriculturists  when proceedings were going on before respondent No.1.  This   has   been   noted   in   the   impugned   order.   That,  though the petitioners did submit some revenue record  by way of an application on 23.08.1991, however, that  is   after   the   date   of   hearing   which   took   place   on  29.07.1991,   as   is   reflected   in   the   impugned   order.  Till the conclusion of the hearing on 29.07.1991, no  record was produced by the petitioners. The order was  ready  on  07.08.1991   and  signed   on   11.10.1991.   As   no  documents   were   produced   while   the   hearing   was   going  on,   respondent   No.1   had   no   opportunity   to   examine  them. 

5.2 It   is   contended   that   though,   on   merits,   the  petition   deserves   to   be   rejected,   however,   if   the  Court   is   desirous   of   considering   the   arguments  advanced  on  behalf   of   the   petitioners,  at  best,  the  petition   can   be   remanded   for   the   examination   and  verification   of   the   revenue   record   produced   by   the  Page 17 of 47 HC-NIC Page 17 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT petitioners,   in   support   of   their   claim   of   being  agriculturists when the auction took place. 5.3 It   is   further   submitted   by   Mr.Bharda,   learned  advocate, that the delay in the exercise of power by  respondent   No.1,   ought   not   to   be   considered   as   an  impediment to the case of the original landowners. In  an attempt to distinguish the judgment in the case of  Patel Raghav Natha and Janardan D. Patel (Supra.), on  the   aspect   of   delay   in   exercising   revisional  jurisdiction   under   Section­211   of   the   Code,   it   is  contended that the present case stands on a different  footing   where,   if   the   original   landowners   were   to  succeed, the land would revert back to them and would  not vest in the State Government. According to learned  counsel, for this reason, the delay ought not to be  strictly construed as ultimately, poor farmers would  be   the   beneficiaries.   It   is   submitted   that   the  landowners   had   represented   to   respondent   No.1   that  they were left with no land, which was the cause for  the initiation of proceedings under Section­211 of the  Code.

5.4 Learned   counsel   for   respondent   No.4   has   further  Page 18 of 47 HC-NIC Page 18 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT submitted that one would normally understand that an  agriculturist is a person who is born as such or has  been   declared   as   a   tenant,   in   accordance   with   law.  However,   the   revenue   record   produced   by   the  petitioners indicates that they became agriculturists  on   account   of   land   being   gifted   to   them   on   the  occasion of marriage. This is another reason why, at  the most, the case can be remanded to respondent No.1  for the verification of the revenue record. 5.5 It is contended that the fact that the amendment  in the Tenancy Act that took place in the year 2001,  whereby   the   condition   of   owning   agricultural   land  within a radius of 8 Kilometers has been deleted with  retrospective effect, would not be applicable in the  present   case   as   the   requirement   of   being  agriculturists was prevalent at the relevant point of  time.   The   auction   has   been   rightly   cancelled   by  respondent   No.1   and   the   impugned   order   requires   no  interference by this Court.

5.6 It is further contended that, though this Court  has   granted   interim   relief   in   favour   of   the  petitioners,   however,   such   relief   has   not   operated  Page 19 of 47 HC-NIC Page 19 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT continuously as, on a few occasions the petition was  dismissed   for   non­prosecution,   even   though   it   was  restored later on.

5.7 In   support   of   his   submissions,   learned   counsel  has relied upon a judgment of this Court in the case  of Shivalik (Aambali) Cooperative Housing Society and  others  Vs. State of Gujarat  and others, reported in  2008 (5) GLR 4476, wherein the Court has observed as  below :

"21.2  The Court restrains itself from going into  the   question   as   to   whether   the   land   could   have  been   purchased   in   the   name   of   the   proposed  society   at   the   relevant   time.   Assuming   for   the  sake   of   argument   that   it   could   have   been  purchased, the society could have purchased only  such rights which the 'vendor' had. If the entire  edifice is built on a fraud, a person cannot be  heard   complaining   that   revisional   authority  exercised power beyond 'reasonable' time. In the  present   case   the   revisional   power   is   exercised  with   much   promptness,   which   normally   does   not  happen   in   the   matter   of   an   'impersonal'   Government authority. In the present case, order  impugned was passed on 19.04.2005; a show cause  notice was issued on 30.06.2006; the matter was  heard and the order was passed on 03.05.2007."
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6. Mr.Shital   R.   Patel,   learned   advocate,   has  appeared   for   respondents   Nos.3.1,   5.1   and   5.4   (the  heirs   of   some   of   the   original   landowners)   and   has  submitted that, an impression is sought to be given to  the Court that after the auction sale was confirmed,  an entry in favour of the petitioners was mutated in  the   revenue   records.   However,   the   fact   is   that   the  said entry was cancelled later on and the names of the  original landowners were mutated in the record, which  still   stand.   The   cancellation   of   the   entry   in   the  names of the petitioners has attained finality. 6.1   It   is   submitted   that   the   suit   filed   by   the  original   landowners   against   the   petitioners   was  withdrawn   after   respondent   No.1   passed   the   impugned  order.   However,   in   the   plaint   of   that   suit   it   is  mentioned that no notice of auction was given to the  original landowners.

6.2   Reiterating   the   submissions   advanced   on   behalf  of   respondent   No.4,   Mr.Patel   has   further   submitted  that the record in support of the petitioners claim of  being   agriculturists   was   not   produced   while   the  Page 21 of 47 HC-NIC Page 21 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT hearing   of   the   revision   proceedings   was   going   on  before respondent No.1, but has been produced by way  of an additional affidavit, in this petition. At best,  the matter can be remanded.

7. In   rejoinder,   it   is   submitted   on   behalf   of   the  petitioners that a revenue entry cannot be the proof  of title but can only be used for fiscal purposes. The  possession   of   the   land   in   question   has   been   duly  handed over to the petitioners after the confirmation  of the sale in their favour and on 21.01.1985, and an  entry was posted recording the auction. 7.1 It is reiterated that the record to show that the  petitioners   were   agriculturists   was   produced   before  respondent No.1 on 23.08.1991, before the judgment was  delivered   on   11.10.1991,   as   the   petitioners   were  orally informed to submit it as soon as possible. The  averments to this effect made on oath, in paragraphs­9  and   10   of   the   petition   have   not   been   denied   or  controverted   by   respondent   No.1.   In   spite   of   the  production   of   the   relevant   documents   by   the  petitioners   showing   that   they   were   agriculturists  prior to the auction proceedings, respondent No.1 has  Page 22 of 47 HC-NIC Page 22 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT not dealt with them at all in the impugned order.

8. In the background of the above legal and factual  submissions, this Court has heard learned counsel for  the respective parties, perused the averments made in  the petition and the documents produced on record.

9. The   State   Government   is   the   only   respondent   to  have   filed   an   affidavit­in­reply,   affirmed   on  10.03.2014   to   the   petition   filed   in   the   year   1992.  That too, after the Court directed it to do so. The  original landowners have not filed any pleadings and  respondents Nos.7 and 8 Cooperative Societies have not  appeared, in spite of service of notice of Rule.

10. This   Court   issued   Rule   in   the   petition   on  19.05.1992 and granted interim relief in favour of the  petitioners.   Though   it   does   appear   from   the   record  that   the   petition   was   dismissed   for                 non­ prosecution on a number of occasions, however, it has  been   restored   to   its   original   status   on   file,   each  time. The interim relief in favour of the petitioners  is still operating.

11. In order to get a clear perspective on the legal  Page 23 of 47 HC-NIC Page 23 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT aspects arising in the petition, it would be apposite  to refer to certain relevant provisions of law in the  Tenancy Act of 1948. 

12. Section­2(2)   defines   "agriculturist"   to   mean   "a  person   who   cultivates   land   personally".   As   per  Section­2(6)  "to   cultivate   personally"   means   to  cultivate land on one's own account­ (i) by one's own  labour, or (ii) by the labour of any member of one's   family,   or   (iii)   under   the   personal   supervision   of   oneself   or   any   member   of   one's   family,   by   hired  labour   or   by   servants   on   wages   payable   in   cash   or  kind   but   not   in   crop   share,   being   land,   the   entire  area of which - (a) is situated within the limits of   a single village, or (b) is so situated that no piece   of   land   is   separated   from   another   by   a   distance   of  more than five miles; or (c) forms one compact block;

Explanation I­ A widow or a minor, or a person is   subject   to   physical   or   mental   disability,   or   a  serving   member   of   the   armed   forces   shall   be  deemed to cultivate the land personally if such  land   is   cultivated   by   servants,   or   by   hired  labour, or through tenants.

Explanation   II­   In   the   case   of   a   joint   family,  Page 24 of 47 HC-NIC Page 24 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT the land shall be deemed to have been cultivated  personally, if it is cultivated by any member of  such family, (and in the case of a family other  than   a   joint   family,   a   person,   other   than   the   husband,   or   as   the   case   may   be,   wife   of   the   person concerned or any of his lineal descendants   dependent   on   him,   shall   not   be   deemed   to   be   a  member of the family.)  Provided   that,   for   the   purpose   of   this  Explanation,   it   shall   not   be   necessary   for   a  person to so reside in such village or place if a   certificate is granted by the Collector to such  person   that   owing   to   the   smallness   of   his  holding,  limited   income  from   agriculture  or  any  other   reason   as   may   be   prescribed,   it   is   not   possible for him to so reside at such village or  place,   without   determent   to   his   means   of  livelihood, and such certificate is in force.)

13. Section­63 of the Tenancy Act reads thus :

"Section­63   Transfers   to   non­agriculturists  barred: (1) Save as provided in this Act,­
(a)  no sale  (including sales in execution  of a  decree of a Civil Court or for recovery of  arrears   of   land   revenue   or   for   sums  recoverable   as   arrears   of   land   revenue),  gift,   exchange   or   lease   of   any   land   or   interest therein, or
(b)  no mortgage of any land or interest therein,   Page 25 of 47 HC-NIC Page 25 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT in   which   the   possession   of   the   mortgaged  property is delivered to the mortgagee, [or]
(c) no   agreement   made   by   an   instrument   in  writing for the sale, gift, exchange, lease  or mortgage of any land or interest therein] shall   be   valid   in   favour   of   person   who   is  not   an   agriculturist   [or   who   being   an  agriculturist cultivates personally land not  less   than   the   ceiling   area   whether   as   an  owner   or   tenant   or   partly   as   owner   and   partly   as   tenant   or   who   is   not   an  agricultural labourer] Provided   that   the   Collector   or   an   officer  authorised   by   the   [State]   Government   in   this  behalf may grant permission for such sale, gift,   exchange,   lease   or   mortgage   [or   for   such  agreement]   on   such   conditions   as   may   be   prescribed.

[Provided further that, no such permission shall  be granted, where land is being sold to a person  who   is   not   an   agriculturist   for   agricultural  purpose, if the annual income of such person from  other sources exceeds five thousand rupees.] (2) Nothing in  this section shall be deemed to  [prohibit the sale, gift, exchange or lease, or  the agreement for sale, gift, exchange or lease  of] a dwelling house or the site thereof or any  land   appurtenant   to   it   in   the   favour   of   an  Page 26 of 47 HC-NIC Page 26 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT agricultural labourer or an artisan [or a person   carrying on any allied pursuit].

[(3)   Nothing   in   this   section   shall   apply   or   be  deemed to have applied to a mortgage of any land  or interest therein effected in favour of a co­ operative   society   as   security   for   the   loan   advanced   by   such   society   [or   any   transfer  declared   to   be   a   mortgage   by   a   court   under  Section   24   of   the   Bombay   Agricultural   Debtors'  Relief Act, 1947. (Bom. XXVIII of 1947)] [(4)   Nothing   in   section   63A   shall   apply   to   any  sale made under sub­section (1).]"

14. By way of an amendment by the Gujarat Act No.4 of  1995, it was provided that :

2. In the Bombay Tenancy and Agricultural Lands  Act, 1948, in Section­2, in sub­section (6):
(1)   for   the   portion   beginning   with   the   words  "being land, the entire area" and ending with the  words "one compact block" shall be deleted. (2) The explanation III shall be deleted.

15. The Tenancy Act was further amended by the Bombay  Tenancy   and   Agricultural   Lands   (Gujarat   Amendment)  Amending Act, 2001. Section­2 of the Gujarat Act No.4  of 1995 was amended as below :

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HC-NIC Page 27 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT "2. In the Bombay Tenancy and Agricultural Lands   (Gujarat   Amendment)   Act,   1995   (hereinafter  referred to as "the amending Act"), in section 2,  for the words "shall be deleted" occurring at two  places, the words "shall be and shall be deemed   always   to   have   been   deleted"   shall   be  substituted."                (emphasis supplied)

16. From   a   careful   perusal   of   the   above   amending  provisions of 2001, it is clear that the limitation of  holding   agricultural   land   within   a   radius   of   8  Kilometers has been deleted with retrospective effect,  as though it had never been there in the statute, from  the very beginning. "It shall be deemed always to have  been deleted." The amending Act of 2001 provides for  the abatement of all legal proceedings relating to any  order made or purported to be made under Section­84(C)  of the Tenancy Act, in contravention of the provisions  of Section­63, so far as it relates to the breach of  sub­section   (6)   of   Section­2   of   the   Provincial   Act,  pending before any Court, Tribunal or other authority  or   any   such   proceedings   initiated   by   any   such  authority on or after the commencement of the amending  Act, which has become final.

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17. The saving clause saves the proceedings that have  attained finality before the date of the commencement  of the amending Act, but provides that the amendment  shall apply to pending proceedings. 

18. In the explanation to Section­4 of the amending  Act of 2001, the word "final" has been defined to mean  where no appeal, revision or any other proceeding is  pending before any Court, Tribunal or other authority  against any such order on the date of the commencement  of the amending Act.

19. In the factual scenario of the present case, the  impugned   order   has   been   passed   on  07.08.1991/11.10.1991.   The   proceedings   had   not  attained   finality   when   the   amendment   of   2001   was  introduced, as the present petition, challenging the  impugned   order,   was   pending   when   the   amendment   came  into force. By the operation of the above amendment of  2001, all pending proceedings that have not attained  finality, stand abated due to the retrospective effect  given   in   the   amendment   regarding   the   breach   of   the  provisions   of   Section­63   as   they   then   stood,  containing   the   requirement   of   holding   agricultural  Page 29 of 47 HC-NIC Page 29 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT land   within   a   radius   of   8   Kilometers   from   the   land  proposed to be purchased.

20. The legal implications of the amendment of 2001  are that the requirement of holding agricultural land  within   a   radius   of   8   Kilometers   stood   deleted   with  retrospective   effect,   as   though   it   had   never   been  enacted   in   the   statute.   All   pending   proceedings  arising out of a breach of this requirement, that had  not   attained   finality,   stood   abated.   Applying   this  legal  position  to  the   factual  matrix   of   the   present  case, it is clear that the proceedings have not yet  attained finality. It is clear that even though there  may   have   existed   a   requirement   that   the   petitioners  hold agricultural land within a radius of 8 Kilometers  from the land purchased by them in the auction, this  requirement has now been wiped out. The retrospective  nature of the amendment and the words "shall be deemed  always to have been deleted"  make it clear that the  argument of the learned Assistant Government Pleader  and   learned   counsel   for   the   other   respondents,   that  the petitioners were bound to fulfil this condition on  the date of the auction, stands defeated.  Page 30 of 47 HC-NIC Page 30 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT

21. There can be no two views regarding the fact that  the impugned order has not attained finality by virtue  of the pendency of the petition before this Court when  then   amending   Act   of   2001   came   into   force.   The  petitioners   were   protected   by   the   grant   of   interim  relief. They are, therefore, entitled to get the legal  benefit of the amendment and by operation of law, the  requirement of their holding land within a radius of 8  Kilometers would not come in their way.

22. This   brings   us   to   the   question   regarding   the  documents   produced   by   the   petitioners   before  respondent   No.1,   showing   their   status   as  agriculturists. The record of the proceedings before  respondent   No.1   has   been   produced   by   Mr.Zubin   F.  Bharda, learned advocate for respondent No.4. It is,  in fact, a copy of the record of the State Government.  It is clear therefrom, and is not disputed by learned  counsel for any party, including the learned Assistant  Government Pleader, that the petitioners submitted the  said documents to respondent No.1 on 23.08.1991, along  with an application. The documents are copies of the  revenue   record.   The   impugned   order   mentions   that   on  Page 31 of 47 HC-NIC Page 31 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT 29.07.1991   when   the   hearing   took   place,   the  petitioners had not produced any documentary evidence  in support of their claim of being agriculturists. It  is further clear from the impugned order that, though  the hearing took place on 29.07.1991, respondent No.1  did   not   pronounce   the   final   order   on   that   date.  Peculiarly, the impugned order bears two dates. One is  07.08.1991   and   the   other   is   11.10.1991.   The   former  could   be   indicative   of   the   date   when   the   order   was  prepared   and   the   latter   when   it   was   pronounced.  Nothing   can   be   said   with   certainty   in   this   regard.  What is certain, however, is the fact that the order  was   not   pronounced   before   11.10.1991.   Therefore,   if  the   petitioners   had   submitted   the   documents   on  23.08.1991,   respondent   No.1   had   plenty   of   time   to  scrutinize   and   verify   them   between   29.07.1991   (the  date   of   hearing)   and  11.10.1991,  when   the  order  was  pronounced. The documents along with the accompanying  application, remain on the record of respondent No.1.  The hearing may have taken place on 29.07.1991 but the  order was not pronounced on that date. There appears  to   be   no   valid   excuse   for   not   taking   into  consideration   the   documents   produced   by   the  Page 32 of 47 HC-NIC Page 32 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT petitioners   while   passing   the   impugned   order,  especially   after   they   were   duly   received   after   the  date   of   hearing   but   before  the   pronouncement  of  the  order,   and   taken   on   record.   It   was   the   duty   of  respondent No.1 to have dealt with the documents that  form   a   part   of   the   record   before   the   order   was  pronounced   and   released.   However,   respondent   No.1  failed to consider the said documents for reasons best  known to him. The documents have also been produced on  the record of the present petition by the petitioners,  by way of an additional affidavit. This Court does not  propose to enter into the exercise of the verification  of the said documents or form any conclusion regarding  whether,   at   the   relevant   point   of   time,   the  petitioners were agriculturists, or not. That was for  respondent No.1 to do, which he has not done. There is  no   requirement   for   this   Court   to   venture   into   this  exercise   which   would   now   be   fruitless,   due   to   the  amendment   in   the   Tenancy   Act,   doing   away   with   the  limitation   of   holding   agricultural   land   within   8  Kilometers.   As   has   already   been   stated   earlier,   the  petitioners   cannot   be   denied   the   benefit   of   the  amending   Act   by   which   this     requirement   has   been  Page 33 of 47 HC-NIC Page 33 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT deleted   with   retrospective   effect,   as   though   it   had  not   been   enacted   in   the   first   place.   The   amendment  further provides that pending proceedings in relation  to a breach of Section­63 shall stand abated.

23. Law   has   to   take   its   own   course   and,   therefore,  by legal implication, there is no requirement, as of  today,   to   examine   the   documents   produced   by   the  petitioners   in   support   of   their   status   of  agriculturists   at   the   relevant   period   of   time.   The  contention   of   the   respondents   that   the   matter   be  remanded to respondent No.1 has no force as such an  exercise   would   now   be   an   empty   formality,   not   to  mention legally untenable.

24. As   for   the   delay   in   the   initiation   of   the  revision proceedings, the law laid down by the Supreme  Court   in   the   case   of  State   of   Gujarat   Vs.   Patel  Raghav Natha (Supra) and Janardan D. Patel Vs. State  of   Gujarat   (Supra)  would   be   squarely   applicable   to  the   present   case.   There   has   been   a   delay   of   almost  seven years in the exercise of revisional powers under  Section­211 of the Code by respondent No.1, which is  undoubtedly   an   unreasonable   period   of   time.   No  Page 34 of 47 HC-NIC Page 34 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT mitigating circumstances or explanation is to be found  in the impugned order. For this reason as well, the  impugned order is legally unsustainable. 

25. The   judgment   in   the   case   of  Shivalik   (Aambali)  Cooperative  Housing  Society  and  others  Vs. State  of  Gujarat and others (Supra),  cited by learned counsel  for respondent No.4 would not apply to the facts and  circumstances of the present case as it is rendered on  totally different facts.

26. Another   important   aspect   that   would   be   required  to   be   noticed   is   the   one   pertaining   to   Section­43  (1AA) of the Tenancy Act, read in juxtaposition with  the provisions of Section­63(1)(a). Section­43 of the  Tenancy Act contains a restriction on the transfer of  land purchased or sold under the said Act.  

27. Section­43(1AA) reads thus:

"Section­43(1AA)   Notwithstanding   anything  contained in sub­section (1), it shall be lawful   for such tenant or a person to mortgage or create  a charge on his interests in the land in favour  of   the   State   Government   in   consideration   of   a  loan   advanced   to   him   by   the   State   Government  under the Land Improvement Loans Act, 1883 (XIX  Page 35 of 47 HC-NIC Page 35 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT of 1983), the Agriculturists' Loan Act, 1884 (XII  of 1983), or the Bombay Non­Agriculturists' Loans  Act, 1928 (Bom.III of 1928), as in force in the  State of Gujarat, or in favour of a bank or co­ operative  society,  and  without  prejudice  to  any  other remedy open to the State Government, bank  or co­operative society, as the case may be, in  the   event   of   his   making   default   in   payment   of   such loan in accordance with the terms, on which  such loan was granted, it shall be lawful for the  State   Government,   bank   or   co­operative   society,   as the case may be, to cause his interest in the  land to be attached and sold and the proceeds to  be applied in payment of such loan."

28. This   provision   also   mentions   a   cooperative  society. It is clear from the above that if a mortgage  of   the   land   is   created   in   favour   of   a   cooperative  society,   as   has   been   done   in   the   present   case   by  respondents Nos.2 to 5 in favour of respondents Nos.7  and 8, the cooperative society can cause its interest  in the land, to be attached or sold and the proceeds  applied   in   payment   of   such   loan   in   the   case   of  default. In the case in hand, respondents Nos.2 to 5  took   loans   from   respondents   Nos.7   and   8   Cooperative  Societies   and   did   not   repay   the   amount.   Respondents  Nos.7   and   8,   therefore,   were   legally   entitled   to  Page 36 of 47 HC-NIC Page 36 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT realize   their   dues   by   the   auction   of   the   land   of  respondents Nos.2 to 5, as provided in Section­43(1AA)  of the Tenancy Act.

29. In this regard, it would be fruitful to advert to  the   judgment   of   this   Court   in  Dahyabhai   Dayalbhai  Rohit   and   another   Vs.   State   of   Gujarat   and   others  (Supra), wherein this Court (Coram : Mr.R.S.Garg, J.)  has held as below :

"8.     It   is   further   to   be   seen   that   Section  43(1AA)   of   the   Bombay   Tenancy   and   Agricultural  Lands   Act,   1948   provides   that   notwithstanding  anything contained in Sub­sec. (1), it shall be  lawful for such tenant or a person to mortgage or  create a charge on his interest in the land in  favour  of  the  State   Government  under  particular  Acts   or   in   favour   of   the   Banks   etc.   The   word  "Bank"   has   been   defined   in   the   Explanation   appended   to   Sec.   43.   Clause   (b)   of   the   Explanation   includes   any   subsidiary   Bank   as  defined in Clause (k) of Section 2 of the State  Bank   of   India   (Subsidiary   Banks)   1959.  Undisputedly,  Bank  of  Baroda   is  subsidiary  Bank  of the State Bank of India. It is not in dispute  before   me   that   the   land   was   mortgaged   by   the   judgment­debtors  with  the  Bank  and  the  mortgage  under the common law had a right to obtain decree  for sale of the property. Once the provisions of  Page 37 of 47 HC-NIC Page 37 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT Section   43(1)   are   not   applicable   in   view   of  Section 43(1AA) of the Act, then, mortgage would   be legal mortgage. 
9. Shri   Pujari,   learned   A.G.P.   for   the   State  submits that present is a case where Section 63  would   apply   with   its   full   force,   according   to   him,   under   the   Bombay   Tenancy   and   Agricultural  Lands Act, 1948, transfers to non­agriculturists  are   barred   and   as   the   present   petitioners   are   non­agriculturists, no sale could be effected in  their   favour.   It   is   submitted   that   no   sale  (including   sales   in   execution   of   a   decree   of   a  Civil   Court   or   for   recovery   of   arrears   of   land  revenues   or   for   sums   recoverable   as   arrears   of  land   revenue),   gift,   exchange   or   lease   or   any   land   or   interest   therein,   shall   be   valid   in  favour of a person who is not an agriculturist.  Language of Section 63 undisputedly puts ban on  such   transfer,   but   if   Section   63   is   read   with   Section 43(1AA), it will be clear that mortgage  in favour of a Bank would be valid. If a mortgage   would   be   valid,   then,   provisions   of   Section  43(1AA) would override the provisions of Section  63(1)(a) because Section 63 came in the statute  book in the year 1948, while Section 43(1AA) was  introduced   vide   Gujarat   Act   No.   16   of   1960   and  was   renumbered   by   President   Act   No.   37   of   1976  and   Gujarat   Act   No.   30   of   1977.   When   the  legislature   being   fully   aware   of   the   legal   implications   of   the   amendment   introduces   an  Page 38 of 47 HC-NIC Page 38 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT amendment in the body of the Act, then, intention  of the government is to be understood in view of  the attending circumstances.
10. It   cannot   be   gainsaid   that   the   mortgage   does create an interest in the land. If Section   63(1)(a) bars creation of interest in the land,   then, Section 43(1AA) would become nugatory and   intention   of   the   government   would   fall.   For   harmonious   construction,   one   has   to   understand   the   law   after   reading   two   provisions   in   juxtaposition. Section 43(1AA) and Section 63(1)
(a)  are  not  mutually   destructive,  these  can  be   read   together   to   survive.   Section   63(1)(a)   though puts an absolute bar even against a Court   or   against   authorities   for   sale   etc.   of   the   property   or   for   gift,   exchange   or   lease   or   creation of interest, but Section 43(1AA) carves   out   an   exception   and   permits   an   agriculturist/tenant   to   mortgage   or   create   a  charge or his interest in the land in favour of   the State Bank or a Bank. If such procedure is   permissible,   then,   it   cannot   be   argued   that   Section   63(1)(a)   shall   supersede   subsequent   provisions   which   were   brought   in   the   statute   book   to   protect   interest   of   the   agriculturists/tenants   from   the   land   grabbers.  

The   Government,   in   fact,   wanted   to   confer   an   authority   upon   the   land­owners   that   instead   of   selling   their   land   for   small   money,   they   may   Page 39 of 47 HC-NIC Page 39 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT mortgage land or create an interest of a Bank in   the land and with the time pay back the amount   and   get   their   land   redeemed.   Intention   of   the   Government   can   never   be   to   make   an   amendment   which would be nugatory because of the existing   provision or runs in conflict with the existing   provisions.

11. In my opinion, Section 63 and Section 43 can   stand   together   as   there   is   no   conflict   in   the   said provisions. 

12. Once, it is held that Section 63(1)(a), in   view   of   Section   43(1AA)   would   not   apply   to   a   mortgage,   then,   provisions   of   civil   law   would   authorize   a   Bank   to   file   a   suit   either   for   recovery  of money,  sale of the property  or for   foreclosure. If during final decree proceedings,   decretal   amount   is   not   paid,   then,   under   the   authority  of  the  Court,  Bank  would  be entitled   to   sell   the   property.   Once   Bank   sells   the   property through the agency of the Court, then,   one   cannot   be   allowed   to   say   that   sale   was   in   breach of Section 63(1)(a) of the Bombay Tenancy   and   Agricultural   Lands   Act,   1948.   I   must   hold   that   Section   43(1AA),   in   fact,   would   protect   rights of the Bank, and consequently, the rights   which accrued in favour of the petitioners. The   authorities   have   not   properly   appreciated   the   legal position and erred in granting application   made by the respondent No.4."

Page 40 of 47 HC-NIC Page 40 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT (emphasis supplied)

30. In   the   above   view   of   the   matter,   as   well,   the  sale of the land in question by way of auction cannot  be rendered nugatory.

31. While effecting the sale of the land in question  the   required   procedure   under   Chapter­XI   of   the   Code  titled   "Of   The   Realization   Of   The   Land   Revenue   And  Other   Revenue   Demands"   has   been   followed.   Under  Section­155   of   the   Code,   power   is   vested   in   the  Collector   to   cause   the   right,  title  and   interest   of  the defaulter in any immovable property other than the  land   on   which   the   arrears   are   due,   to   be   sold.  Section­165 provides for the procedure to be followed  and the issuance of a proclamation of sale. Section­ 179   provides   that   on   the   expiration   of   thirty   days  from   the   date   of   the   sale,   if   no   application,   as  contemplated in Section­178, is made to set aside the  sale   on   the   ground   of   some   material   irregularity,  mistake or fraud, or if such application was made and  rejected, the Collector shall make an order confirming  the sale. The proviso to this section vests power in  the Collector to set aside the sale for reasons to be  Page 41 of 47 HC-NIC Page 41 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT recorded in writing, even if no such application has  been made.

32. In   the   present   case,   as   is   mentioned   in   the  petition, one Shri Imamkhan Pathan made an application  on 12.12.1984, contending that he had paid some amount  to the debtors (respondents Nos.2 to 5) over the land  in   question.   However,   the   said   application   was  rejected.   It   is   an   undisputed   position   that   the  original   landowners/debtors,   respondents   Nos.2   to   5  herein, did not make any application for setting aside  the auction sale in favour of the petitioners within  30 days from the sale, as provided under Section­128  of   the   Code.   Therefore,   the   sale   was   confirmed   in  favour of the petitioners by virtue of the provisions  of Section­179 of the Code and the possession of the  land was handed over to them. Respondents Nos.2 to 5  were   present   at   the   auction,   as   is   clear   from   the  order dated 21.12.1984, passed by the Special Recovery  Officer under Section­155 of the Code. The signatures  of respondents Nos.2 to 5 were also taken during the  proceedings.   The   said   order   mentions   that   prior  notices   were   issued   to   respondents   Nos.2   to   5  under  Page 42 of 47 HC-NIC Page 42 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT Section­152 of the Code. It is clear that respondent  Nos.2   to   5­debtors,   participated   in   the   auction  proceedings   and   were   present   throughout.   The  contention   raised   by   Mr.Shital   R.   Patel,   learned  advocate   that   they   were   not   aware   of   the   auction  proceedings, is baseless.

33. At   this   juncture,   reference   may   be   made   to   the  judgment   dated   23.11.2010,   passed   by   the   Division  Bench   of   this   Court   in  Letters   Patent   Appeal  No.1527/2010,   in   the   case   of  State   of   Gujarat   Vs.  Hasmukhlal  Ishvarlal Gandhi,  the relevant extract of  which has been reproduced earlier.

34. In   the   present   case,   the   order   of   the   Special  Recovery Officer confirming the sale was passed after  following   due   procedure   as   required   under   law.   An  entry mutating the names of the petitioners pursuant  to the auction was made in the revenue record. It has  been contended by Mr.Shital R. Patel, that this entry  was later on removed. It could be possible that this  was due to the effect of the impugned order. However,  when this Court is seized of the legal issue regarding  the amendment in the Tenancy Act and the implications  Page 43 of 47 HC-NIC Page 43 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT of   the   amendment,   as   already   discussed   hereinabove,  the mutation of entries, or their cancellation, would  not   decide   the  legal  rights   of   parties  flowing   from  the statute, as amended. The issue regarding mutation  or   cancellation   of   entries   in   favour,   or   against,  either of the parties can have no significance in the  present context as nothing would turn upon it.

35. The contention on behalf of the respondents that  the interim relief granted by this Court in favour of  the petitioners has not been continuous by virtue of  the dismissal of the petition for non­prosecution on a  number of occasions, can have no relevance in the face  of   the   fact   that   every   time   that   the   petition   was  dismissed   for   non­prosecution,   it   was   subsequently  restored   to   its   original   status.   The   interim   relief  still   continues   to   operate   by   virtue   of   the  restoration   of   the   petition.   No   advantage   can   be  derived   by   the  respondents  from   this   aspect,  as  the  dismissal   of   a   petition   for   non­prosecution   and   its  subsequent   restoration   to   file,   is   a   matter   between  the Court and the petitioner, in which the respondents  have no say.

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36. The   contention   raised   on   behalf   of   respondent  No.4 that the present case be viewed in light of the  submissions   that   the   land   is   being   claimed   by   the  landowners   who   were   rendered   landless   and,   if   the  petition were to be rejected the land would revert to  the original landowners and not the State Government,  has no legal basis. This contention has been put forth  in  order  to  counter   the  argument  of  the   petitioners  regarding   unreasonable   delay   in   the   exercise   of  revisional jurisdiction by respondent No.1. It may be  unfortunate for the original landowners to have lost  their land but it cannot be ignored that it was due to  their   own   default   in   repaying   the   amount   of   loans  advanced   by   respondents   Nos.7   and   8­Cooperative  Societies. Respondents Nos.2 to 5 were well aware of  the   legal   implications   of   their   default   and   did  not  repay the amounts even after the issuance of notices  to  them.  The   due   procedure,   as   prescribed  under  the  Code has been followed and the auction has taken place  in their presence. No objections were raised by them  at any point of time within the prescribed period.

37. As   is   clear   from   the   judgment   of   the   Supreme  Page 45 of 47 HC-NIC Page 45 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT Court in the case of  Patel Raghav Natha  and of this  Court   in   the   case   of  Janardan   D.   Patel   (Supra),  revisional powers under Section­211 were exercised by  respondent No.1 after an inordinate and unreasonable  delay. The reason for initiation of proceedings may be  the   report   of   the   Assistant   Collector   or   the  application made by respondents Nos.2 to 5. However,  that does not take the impugned order out of the ambit  of   the   law   laid   down   in   the   judgments   discussed  hereinabove.   Moreover,   the   impugned   order   has   been  passed   without   examining   the   documents   submitted   by  the petitioners much before the order was pronounced,  even   after   those   documents  were   taken   on   record.   As  has   been   discussed   earlier,   due   to   the   legal  implications   of   the   amending   Act   of   2001,   the  requirement of being an agriculturist stands deleted  with   retrospective   effect   and   the   amendment   would  apply   to   pending   proceedings   that   have   not   attained  finality, and which stand abated. The petitioners are  entitled to receive the benefit of the legal position  flowing from the amending Act of 2001 and the question  whether   they   were  agriculturists  at  the   time  of  the  auction, now pales into insignificance.  Page 46 of 47 HC-NIC Page 46 of 47 Created On Thu Apr 28 03:04:28 IST 2016 C/SCA/3406/1992 CAV JUDGMENT

38. As a consequence of the above discussion, after  examining   the   matter   from   all   possible   angles   and  perspectives and for reasons stated hereinabove, this  Court   is   of   the   considered   view   that   the   impugned  order   dated   07.08.1991/11.10.1991,   passed   by  respondent No.1 deserves to be quashed and set aside.  It   is,   accordingly,   quashed   and   set   aside.   As   a  result, the land in question shall revert back to the  petitioners. The State Government shall take necessary  steps in this regard as expeditiously as possible.

39. The petition is allowed, in the above terms. Rule  is made absolute, accordingly. Parties to bear their  own costs.

(SMT. ABHILASHA KUMARI, J.) Gaurav+ Page 47 of 47 HC-NIC Page 47 of 47 Created On Thu Apr 28 03:04:28 IST 2016