SUPREME COURT OF INDIA
6th October 1964
P.B. GAJENDRAGADKAR, C.J.I., K.N. WANCHOO, M. HIDAYATULLAH, RAGHUBAR DAYAL AND J.R. MUDHOLKAR, JJ.
Sardar Govindrao and others, Appellants
Versus
The State of M.P, Respondent.
Civil Appeal No. 182 of 1964.
Advocates appeared
Mr. S. V. Gupte, Solicitor-General of India and Dr. W. S. Barlingay, Senior Advocate (M/s. S. T. Khirwarkar and A. G. Ratnaparkhi, Advocates, with him), for Appellants, Mr. M. S. K. Sastri, Advocate and Mr. M. S. Narasimhan, Advocate for Mr. I. N. Shroff, Advocate, for Respondent.
The word "may" in section 5 (3) of the C.P. & Berar Revocation of Land Revenue Exemptions Act, 1948, must be interpreted as mandatory when the conditions precedent namely, the existence of a religious, charitable or public institutions which ought to be continued or of the descendants of Ruling Chief, is established.
The words "may pass such orders as it deems fit" in sub-section (2) mean no more than that Government must make its orders to fit the occasion, the kind of order to make being determined by the necessity of the occasion.
This provision is an instance where, on the existence of the condition precedent, the grant of money or pension becomes obligatory on the Government notwithstanding that in section 5 (2) the Government has been given the power to pass such orders as it deems fit and in sub-section (3) the word "may" is used. The word "may" is often read as "shall" or "must" when there is something in the nature of the thing to be done which makes it the duty of the person on whom the power is conferred to exercise the power.
Except in those cases where there are good grounds for not granting the pension, Government is bound to make a grant to those who fulfill the required condition and the word "may" in the 3rd sub-section though apparently discretionary has to be read as "must". 1959 JLJ 407 REVERSED. [Para 9
(2) Revocation of Land Revenue Exemptions Act, 1948, (C.P. & Berar) - S. 5 (3) - Government is required to act quasi judicially - how quasi-judicial action to be taken-order should mention grounds.
The C.P. and Berar Revocation of Land Revenue Exemptions Act, 1948, lay upon the Government a duty which obviously must be performed in a judicial manner. The appellants do not seem to have been heard at all. The Act bars a suit and there is all the more reason that Government must deal with such cases in a quasi judicial manner giving an opportunity to the claimants to state their case in the light of the report of the Deputy Commissioner. The Appellant, were also entitled to know the reason why their claim for the grant of money or a pension was rejected by Government and how they were considered as not falling within the class of person who it was clearly intended by the Act to be compensated in this manner.
Even in those cases where the order of the Government is based upon confidential material, the reason for the order should appear when the Government performs judicial or quasi judicial functions. (1962) 2 SCR 339 followed [Para 10
Judgment
HIDAYATULLAH, J.: The appellants claiming to be the descendants of former Ruling Chiefs in the Hoshangabad and Nimar Districts of Madhya Pradesh applied under the Central Provinces and Berar Revocation of Land Revenue Exemption Act, 1948, for grant of money or pension as suitable maintenance for themselves. By that Act, every estate, mahal, village or land which was exempted from the payment of the whole or part of land revenue by special grant of, or contract with the Crown, or under the provision of any law or rule for the time being in force or in pursuance of any other instrument was after the appointed date made liable to land revenue from the year 1948-49, notwithstanding anything contained in the grant, contract, law, rule or instrument. The appellants held estates in the two districts on favourable terms as Jahgirdars, Manufidars and Ubaridars, and enjoyed an exemption from payment of land revenue amounting in the aggregate to Rupees 27,828 / 5 / - yearly. On the passing of the Act the exemption was lost and they claimed to be entitled to grant of money or pension under the provisions of the Act about to be set out. They applied to the Deputy Commissioner, who forwarded their application to the State Government. The State Government by its order No. 993/XVI-4, dated April 26, 1955 rejected their petition. No reasons are contained in that order.
2. The appellants thereupon filed a petition in the High Court of Madhya Pradesh under Art. 226 of the Constitution for a writ of certiorari to quash the order of the State Government. In that petition they contended that the rejection of their petition by the State Government without giving any reasons amounted to no decision at all and was an improper and illegal exercise of the power vested in the State Government by S. 5 of the Act. The State Government resisted the petition by contending that the appellants were not descendants of any former Ruling Chief and further that the exercise of the power by the State Government was proper and legal.
3. The petition in the High Court was heard and disposed of by a Full Bench. The learned Chief Justice, who delivered the judgment on behalf of the Full Bench held that the State Government was not compelled to grant either money or pension because the exercise of the power under S. 5 was discretionary and the petition, therefore, was incompetent. No other question was gone into by the High Court even though a suit is barred under the provisions of the Act and a petition under Art. 226 would appear to be the only remedy in case the State Government failed to comply with the terms of the Act, or acted in an illegal manner.
4. The Act consists of eight sections. The revocation of exemption from liability for land revenue is laid down by S. 3, the purport of which has already appeared in this judgment. It is not necessary to refer to that section in detail because in addition it speaks of lands in Berar governed by the Berar Land Revenue Code and of lands in Madhya Pradesh governed by the Central Provinces Land Revenue Act, 1917 and lays down the classes of such lands and the special rule; applicable to them. In the present appeal we are not concerned with these details and they may, therefore, be put aside. Section 4 of the Act makes suitable amendments in the Central Provinces Land Revenue Act, 1917 and the Berar Land Revenue Code consequent upon the provisions of S. 3 of the Act. We need not attempt to set out these amendments. S. 5 then provides as follows :
"5. Awards of money grants or pension.
(1) Any person adversely affected by the provisions of S. 3 may apply to the Deputy Commissioner of the district for the award of a grant of money or pension.
(2) The Deputy Commissioner shall forward the application to the Provincial Government, which may pass such orders as it deems fit.
(3) The Provincial Government may make a grant of money or pension
(i) for the maintenance or upkeep of any religious, charitable of public institution or s
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