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1967 Supreme(SC) 29

SUPREME COURT OF INDIA
K. SUBBA RAO, C.J.I., J.C. SHAH, J.M. SHELAT, V. BHARGAVA AND G.K. MITTER, JJ.
Shibsankar Nandy, Appellant
Versus
Prabartak Sangha and others, Respondents.
Civl Appeal No. 1004 of 1965. D-/1-2-1967.
Advocates appeared
M/s. D. N. Mukherjee and Dhruba Kumar Mukherjee, for Appellant, Mr. Sukumar Ghose, Advocate, for Respondent No. 1.

Advocates:
D.N.MUKHERJI, DHRUBA MUKHERJI, SUKUMAR GHOSH

Judgment

SHELAT, J. : This appeal by special leave relates to a plot of land admeasuring about .41 decimals situate within the municipal limits of Chandernagore.

2. Respondent No. 1 is a society registered under the Societies Registration Act, XXXI of 1860. Its objects as set out in Cl. 3 (s) of its Memorandum of Association inter alia are "to work, manage, develop, improve and utilise properties and business for the promotion of education, art science, religion and charity or other useful objects". On March 23, 1941 one Kashinath Seal, the owner of a large plot of land, granted a permanent lease of the land in dispute out of the said plot in favour of respondents 2 and 3. By a registered deed of lease, dated September 29, 1944 he granted lease of the entire plot of land including the land in dispute to one Motilal Roy for 99 years. So far as the land in dispute is concerned, which as aforesaid was leased out to respondents 2 and 3, the said Motilal Roy acquired under this lease only the right of realising the rent. The said Motilal Roy was the founder of the 1st respondent Association and was a mere benamidar thereof. By a deed of relinquishment, dated March 14, 1953 he relinquished all his interest in the said plot in favour of the 1st respondent Association. By a registered deed of sale with a condition for reconveyance, dated November 3, 1960 respondents 2 and 3 transferred the land in dispute to the appellant and handed over its possession to him. On coming to know of this sale the 1st respondent Association made an application claiming a right of transfer under S. 24 of the West Bengal Non-Agricultural Tenancy Act, XX of 1949 on the ground that it was the immediate landlord in relation to that land that the land in question was contiguous to its other lands and that it required it for the purpose of extension of the school conducted by it.

3. The Trial Court dismissed the application holding that the land in dispute was not contiguous to the land in possession of the 1st respondent Association. It, however, held that it was satisfied that the 1st respondent Association required the said land, bona fide for the purpose of expanding its school. In an appeal against this order by the 1st respondent Association. the Additional District Judge set aside the finding of the Trial Court holding that the land in dispute was adjacent to the other land in possession of the 1st respondent Association. But he held that the 1st respondent Association was an "intermediary" within the meaning of S. 2 (a) of the West Bengal Estates Acquisition Act, 1 of 1954. that, therefore, its interests vested in the State of West Bengal on the extension of the Act to Chandernagore after its merger in the State of West Bengal and consequently respondent No. 1 had no right to claim transfer and dismissed the appeal. The 1st respondent Association thereupon filed a revision application in the High Court under S. 115 of the Code of Civil Procedure and Art. 227 of the Constitution.

4. Three contentions were raised before the High Court on behalf of the present appellant: (1) that the first respondent Association was an intermediary within the meaning of S. 2 (1) (i) of the West Bengal Estates Acquisition Act and, therefore, all its rights vested under that Act in the State of West Bengal, (2) that S. 24 of the Non-Agricultural Tenancy Act did not apply as (a) the land in dispute was not contiguous, (b) that under proviso (b) to that section it must be established to the satisfaction of the Court that such land was required for any of the purposes specified in S. 4 and that the Courts below had not given any finding as to their satisfaction; and (3) that S. 24 did not apply to a case where an under-tenant transferred his rights to a third party as the section applied only to a transfer by a tenant. The High Court repelled all the three contentions and allowed the revision setting aside the order of dismissal passed by the Trial Court and confirmed by the Addi












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