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2004 Supreme(SC) 478

2004(3) Supreme 337
SUPREME COURT OF INDIA
(From Punjab and Haryana High Court)
R.C. Lahoti & Ashok Bhan, JJ.
Kashmir Singh and Ors. -Appellants
versus
Panchayat Samiti, Ferozpur and Ors. -Respondents
Civil Appeal Nos. 510-513 of 1999
Decided on 13-4-2004
Counsel for the Parties :
For the Appellants : Gourav Chopra, N.K. Banka, Palwinder Singh, R.D. Upadhyay, Advocates.
For the Respondents : R.S. Sihota, Manoj K. Mishra, N.S. Bisht, Kuldip Singh, Raj K. Pandey, Mrs. Naresh Bakshi, Advocates.

IMPORTANT POINT
Transfer made by an ostensible owner with consent, express or implied, of the real owner is protected provided that transferee after taking reasonable care to ascertain that transferor had power to transfer had acted in good faith.

Headnote:(i) Punjab Package Deal Properties (Disposal) Act, 1976-Section 2(1-A) -Package deal property-Is one which is transferred by Central Government to State Government on payment of price-Suit land, applied for transfer by appellant, was approved by Sales Commissioner-Panchayat Samiti challenged it in appeal-Land in question did not find mention in the Schedule attached to the Act and thus property was not a "package deal property"-Property belonged to District Board and on its abolition, it devolved upon Panchayat Samiti-Since land did not belong to State Government, transfer was not valid. (Paras 6 and 7)

       (ii) Transfer of Property Act, 1882 -Section 41-Transfer by ostensible owner-Transfer to be valid by ostensible owner has to be with consent, express or implied, of real owner and that transferee acted in good faith after taking all reasonable care-Suit land was transferred to appellant by State Government but State Government was not the owner-Appellant had not cared to ascertain title of vendor-Appellant was not entitled to protection u/s 41 of the Act. (Para 9)

       

JUDGMENT

Bhan, J.-These appeals have been filed against a common judgment of the Punjab and Haryana High Court, wherein the High Court has set aside the order of the revisional authority (Commissioner, Ferozpur) and cancelled the sale made by Tehsildar (Sales) in favour of the appellants.

2. The facts of all the cases are similar and presently the facts are taken from the appeal of Gurucharan Singh son of Mohan Singh (hereinafter referred to as the appellant ). Appellant applied for transfer of land measuring 24 kanals 13 marlas being 1/4th share of land measuring 98 kanals 12 marlas comprising Khasra No. 136M/7(8-0), 8(8-0), 9(8-0), 6/2(4-4), 14(7-9), 15/1(2-3), 15/2(2-18), 17/1(4-2), 17/2(1-10), 24/2(2-12), 19(8-0), 21/2(5-7), 22/1(6-6), 139M/1/1(5-11), 2/1(0-710/1(0-2), 136M/12(8-0), 13(8-0), 18/1(0-1), 18/2(7-3), 23/2(0-17), situated in village Khai, Tehsil Ferozpur on the ground that he was in continuous possession of this land since Khariff 1989. The case recommended by the Tehsildar (Sales), Ferozpur vide his report dated 25th March, 1994 was approved by the Sales Commissioner, Ferozpur vide his order dated 29th March, 1994.

3. Panchayat Samiti, Ferozpur, respondent No.1, (hereinafter referred to as the respondent ) filed an appeal in the Court of Sales Commissioner, Ferozpur on 19th May, 1995. The Sales Commissioner, Ferozpur vide his order dated 6th June, 1995 returned the appeal on the ground that the Act and Rules pertaining to transfer of land were not applicable. Respondent then filed an appeal before the Chief Sales Commissioner (Deputy Commissioner), Ferozpur against the transfer of the land in favour of the appellant. The appellate authority after perusing the record came to the conclusion that the appellant had taken the land on lease from Panchayat Samiti for a sum of Rs. 30,000/- in the year 1989-90 vide receipt No. 78 dated 2nd May, 1989. Subsequent to the taking of the land on lease, the appellant filed an application for allotment of land treating it to be in the ownership of the State being a Package Deal Property. The appellate authority found that the land belonged to the District Board and on the abolition of the District Board the land was transferred to the Panchayat Samiti, Ferozpur. Mutation had also been sanctioned in favour of the Panchayat Samiti. It was held that the land did not belong to the State of Punjab and the transfer made in favour of the appellant was bad in law as well as fraudulent. Aggrieved against this order of the appellate authority the appellant filed a revision before the Commissioner, Ferozpur Division, which was accepted.

4. Aggrieved against the said order of the revisional authority, respondent filed a writ petition which was accepted. The High Court held that the land was not a Package Deal Property which had been transferred by the Central Government to the State Government on payment of price. That the land belonged to the District Board and on the dissolution of the Board, the land was transferred and mutated in favour of the respondent. Respondent was found to be the owner of the land and the sale made in favour of the appellant was held to be invalid and without jurisdiction. Accordingly, the order of the revisional authority was set aside and the sale made in favour of the appellant was also set aside.

5. We have heard learned counsel for the parties at length.

6. Package deal property is the property which is transferred by the Central Government to the State Government on payment of price. Clause (1-A) of Section 2 of the Punjab Package Deal Properties (Disposal) Act, 1976, defines the "package deal property" as the property which was taken over as surplus evacuee property by the State Government. The Schedule attached to the aforesaid Act, gives details of the lands which were bought by the State Government of Punjab from the Central Government. On transfer by the Central Government all such lands vested in the Provincial Government under the aforesaid Act. Counsel










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