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Section 5B of the Act prescribes that any transfer of land gifted in pursuance of the provisions of Section 5A, made in contravention of the prescribed terms and conditions, shall be void and the gifted land so transferred shall revert to and re-vest in Panchayat free from all encumbrances. Sections 5A and 5B of the Act were inserted vide Haryana Amendment Act No.25 of 1976 with retrospective effect.

Section 15 of the Act authorises the State Government to make rules for carrying out the purposes of the Act. Under Clause (ff) of sub-section (2) of Section 15 of the Act, the rules made can provide for the terms and conditions on which the land in shamlat deh may be gifted to the members of the scheduled caste and backward classes in Haryana.

Rule 13 authorises the Panchayat to make a gift for the purposes of hospital, dispensary or education or charitable institutions or for such other purposes as may be approved by the government to the benefits of the inhabitants of the village concerned. Such a gift can be made only with the previous approval of the Government. Rule 13 apparently appears to be beyond the scope of Rule making powers of the State Government inasmuch as the right of the Panchayat to gift the land is circumscribed by the provisions of Sections 5A and 5B of the Act. Clause (ff) of sub-section (2) of Section 15 authorises the State Government to frame Rules regarding the terms and conditions on which the land shamlat deh may be gifted to the members of the Scheduled Caste and Backward Classes. Section 15 does not authorise the State Government to make Rules with respect to the gift of the land to persons other than those contemplated under Section 5A and 5B of the Act. Any rule which is contrary to the provisions of the Act cannot be given effect to or made the basis of gifting the property, vesting in the Gram Panchayat. It cannot be disputed that the gifts proposed by the Panchayat, approved by the State Government and ultimately made by the Gram Panchayat are in violation of provisions of Section 5A and 5B of the Act read with Rule 13A of the Rules. As the gifts have been made in favour of persons other than those specified in the mandatory provisions of Sections 5A and 5B, the same are void-ab- initio. Making of the gift apparently appears to be abuse of the powers vesting in the Panchayat. The State Government appears to have taken a very casual approach in the matter and granted the approval for reasons best known only to it. Non application of the mind of the State government is writ large in the case. The manner in which the Gram Panchayat and the State Government have dealt with the matter shows that they were overshadowed by the towering political personality of Sh.Chander Shekhar, Chairman of Respondent No.7. His giant stature, hovering over the office bearers of the Gram Panchayat and officials of the State Government appears to have factually immobilised them in the discharge of their duties which resulted in their scummbing to heavy weight of the influential respondent.

Mr.Kapil Sibal, learned Senior Counsel, appearing for respondent No.7, has vehemently argued that under the resolutions passed and the gift deeds executed, no obligation was cast upon the respondent No.7 to construct a civil dispensary building or the college and polytechnic on the land gifted by the Gram Panchayat, Bhondsi. Such a submission has to be noticed only for being rejected inasmuch as the order of the State Government specifically provided that the shamlat land of the Gram Panchayat was approved to be gifted for setting up of a welfare institution in the form of a civil dispensary as also college and polytechnic on the land gifted. The gifting of the land even under Rule 13 of the Rules is, admittedly, subject to the approval of the State Government. When the State Government specifically provided in its order of approval that the lands shall be utilised for the purposes mentioned therein, the Gram Panchayat had no right to make the gift of the land to respondent No.7 for any other purpose. Prescribing conditions in the gift deed, contrary to the order of approval, renders the gift deed void not affecting the rights of the inhabitants of the Gram Panchayat. Rule 13 itself mandates that the Government may grant approval for gifting the shamlat land vesting in the Panchayat for the purpose of "hospital, dispensary or educational or charitable institutions or for such purpose as may be approved by the Government to be for the benefit of the inhabitants of village concerned". Despite adopting a casual approach, the State Government had specified one of the purposes mentioned in Sub-Rule (1) of Rule 13 for making the gift of the Gram Panchayat which was violated by the Gram Panchayat while executing the deed of gift in favour of respondent No.7.

Regarding compliance of condition No.1 with respect to land measuring 151 kanals 19 marlas it has been contended that by establishing "Stree Niketan" the respondent No.7 has complied with the aforesaid condition. We again do not accept such a plea. College and polytechnic cannot be equated with the Stree Niketan allegedly established by respondent No.7 which is admittedly not recognised by any Government or affiliated to any University. The Committee appointed in terms of this Court's order, in its report, has found, on facts, that the land is not being used for either a college or polytechnic. It is true that for violation of the aforesaid condition no action be taken for declaring the gift deed void but the non user of the land either for a college or for a polytechnic and insistence of the Stree Niketan being the substitute of it clearly and unambiguously shows that respondent No.7 had never intended to use the said land for the purpose for which it was granted. Such a resolve of respondent No.7 makes the transfer of land by way of gift in its favour highly suspicious and in the context of circumstances illegal and void.