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1953 Supreme(SC) 73

SUPREME COURT OF INDIA
29th May 1953.
M. PATANJALI SASTRI, CJI., B.K. MUKHERJEA, S.R. DAS, GHULAM HASAN AND BHAGWATI JJ.
K. C. Gajapati Narayan Deo and others, Applaints
Versus
State of Orissa.
Civil Appeals Nos. 71 to 76 of 1953.
Advocates appeared
Shri B. Somayya. Senior Advocate, (Shri K. B. Krishnamurthi, Advocate, with him), instructed by Shri M. S. K. Sastri, Agent (in No. 71); Shri B. Somayya, Senior Advocate (Shri D. Narasaraju. Advocate, Shri N. V. Ramdas, Advocate, High Court, with him), instructed by Shri M. S. K. Sastri, Agent (in No. 72); Shri D. Narasaraju and Shri A. Krishnaswami, Advocates (Shri N. V. Ramdas, Advocate, High Court, with them), instructed by Shri M. S. K. Sastri, Agent (in No. 73): Shri D. Narasaraju, Advocate (Shri N. V. Ramdas, Advocate, High Court, with him), instructed by Shri M. S. K. Sastri Agent (in No 76 ; Shri D. V. Narsingha Rao, Advocate, instructed by Shri M. S. K. Sastri, Agent (in No. 75) and Shri. R. Patnaik, Advocate, instructed by Shri R. C. Prasad, Agent (in No. 74). for Appellants; M. C. Setalvad, Attorney General for India and Shri Pitambar Misra, Advocate-General of Orissa (Shri Porus A. Mehta. Advocate, with them), instructed by Shri G. H. Rajadhyaksha, Agent, for Respondent. 377

Advocates:
A.KRISHNASVAMI, Anu Mehta, B.SOMALAYA, D.NARASARAJU, D.V.N.RAO, G.H.RAJADHYAKSHA, K.B.KRISHNA MURTHY, M.C.SETALVAD, M.S.K.Shastri, N.V.RAMADAS, R.C.Prasad, R.PATTANAIK

Headnote:IN COLOURABLE LEGISLATION THE LEGISLATURE PURPORTED TO BE ACTING WITHIN LIMIT IN PASSING AN ACT ACTUALLY IN SUBSTANCE CROSSES ITS LIMIT OF POWER

       -held, transgression in such cases of colourable legislation is valid and no proper examination found to be a pretence.

       

Judgement Key Points

Key Points: - The Act’s constitutional validity and colourable legislation aspects are contested; the ruling discusses power under Entry 42 List III and Article 31(4) protections. (!) (!) (!) - The calculation of net income, deductions (including agricultural income tax), and compensation methodology under the Act are central issues. (!) (!) (!) (!) (!) - Challenges to related amendments (Orissa Agricultural Income-Tax Amendment Act 1950; Madras Estates Land Act amendments) and their impact on the Estates Abolition Act’s validity and compensation are analyzed. (!) (!) (!) (!) (!) - The court upholds the Act’s provisions and rejects the colourable legislation and equal protection objections, affirming the form and manner of compensation under Entry 42 and Article 31(4). (!) (!)

What is the constitutional validity of the Orissa Estates Abolition Act of 1952 and related amendments concerning colourable legislation and the limits of legislative power?

What are the grounds on which the Orissa Estates Abolition Act, including its definitions of estate, intermediary, and compensation, is challenged as within or beyond the legislative competence, and how does Article 31(4) affect those challenges?

What is the Court’s ruling on the validity of the Orissa Agricultural Income-Tax (Amendment) Act, 1950 and the Madras Estates Land (Orissa Amendment) Act, 1947 in relation to the compensation provisions and the overall scheme of estates abolition?


Judgment

B. K. MUKHERJEA, J. :

These six appeals arise out of as many applications, presented to the High Court of Orissa, under Art. 226 of the Constitution, by the proprietors of certain permanently settled estates within the State of Orissa, challenging the constitutional validity of the legislation known as the Orissa Estates Abolition Act of 1952 (hereinafter called "the Act") and praying for mandatory writs against the State Government restraining them from enforcing the provisions of the Act so far as the estates owned by the petitioners are concerned.

2. The impugned Act was introduced in the Orissa State Legislature on 17-1-1950 and was passed by it on 28-9-1951. It was reserved by the State Governor for consideration of the President and the President gave his assent on 23-1-1952. The Act thus receives the protection of Arts. 31(4) and 31(A) of the Constitution though it was not and could not be included in the list of statutes enumerated in the ninth schedule to the Constitution, as referred to in Art. 31(B).

3. The Act, so far as its main features are concerned, follows the pattern of similar statues passed by the Bihar, Uttar Pradesh and Madhya Pradesh Legislative Assemblies. The primary purpose of the Act is to abolish all zamindary and other proprietary etsates and interests in the State of Orissa and after eliminating all the intermediaries to bring the ryots or the actual occupants of the lands in direct contact with the State Government. It may be convenient here to refer briefly to some of the provisions of the Act which are material for our present purpose. The object of the legislation is fully set out in the preamble to the Act which discloses the public purpose underlying it. Section 2(g) defines an "estate" as meaning any land held by an intermediary and included under one entry in any of the general registers of revenue-paying lands and revenue-free lands prepared and maintained under the law for the time being in force by the Collector of a district. The expression "intermediary" with reference to any estate is then defined and it means a proprietor, sub-proprietor, landlord, land-holder. . .. ..thikadar, tenure-holder, under-tenure-holder and includes the holder of inam estate, jagir and maufi tenures and all other interests of similar nature between the ryot and the State.

Section 3 of the Act empowers the State Government to declare, by notification, that, the estate described in the notification has vested in the State free from all incumbrances. Under S. 4, it is open to the State Government, at any time before issuing such notification, to invite proposals from intermediaries for surrender of their estates and if such proposals are accepted, the surrendered estate shall vest in the Government as soon as the agreement embodying the terms of surrender is executed. The consequences of vesting either by issue of notification or a result of surrender are described in detail in S. 5 of the Act. It would be sufficient for our present purpose to state that the primary consequence is, that all lands comprised in the estate including communal lands, non-ryoti lands, waste lands, trees orchards pasture lands, forests, mines and minerals, quarries, rivers and streams, tanks, water channels, fisheries, ferries, hats and bazars, and buildings or structures together with the land on which they stand shall, subject to the other provisions of the Act, vest absolutely in the State Government free from all encumbrances and the intermediary shall cease to have any interest in them. Under S. 6, the intermediary is allowed to keep for himself his homestead and buildings and structures used for residential or trading purposes such as golas, factories, mills, etc., but buildings used for office or estate purposes would vest in the Government.

Section 7 provides that an intermediary will be entitled to retain all lands used for agricultural or horticultural purposes which are in his khas possession at the date of vesting.



















































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