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2022 Supreme(SC) 914

SUPREME COURT OF INDIA
HEMANT GUPTA, VIKRAM NATH, JJ.
Gulf Oil Corporation Ltd. - Appellant
Versus
The State of Telangana & Ors. - Respondents
Civil Appeal Nos. 7759-7760 of 2014
With
Sri Udasin Mutt - Appellant
Versus
Gulf Oil Corporation Ltd. & Ors. - Respondents
Civil Appeal No. 7761 of 2014
Decided On : 13-09-2022

Advocates appeared:
For the parties Mr. Parag P. Tripathi, Sr. Adv. Ms. Mumtaz Bhalla, Adv. Mr. Kalan Dev Chopra, Adv. Mr. Neeraj Malik, Adv. Mr. Lakshya Kampani, Adv. Mr. Srinivasan Ramaswamy, Adv. Mr. Shagun Ruhil, Adv. Mr. Abhay Kumar, Adv. Mr. C. S. Vaidyanathan, Sr. Adv. Mr. P. Venkat Reddy, Adv. Mr. Prashant Kumar Tyagi, Adv. Mr. P. Srinivas Reddy, Adv. Mr. Vinayak Goel, Adv. M/S. Venkat Palwai Law Associates, AOR Ms. Uttara Babbar, AOR Mr. Mahfooz Ahsan Nazki, AOR

Headnote:(A) Telangana Charitable and Hindu Religious Institutions and Endowments Act, 1987 - Section 82 - Agricultural land lease - The lease of agricultural land held by an entity other than a landless poor person stands statutorily cancelled on the commencement of the 1987 Act - The appellant's claim to leasehold rights was rejected on the basis of prior statutory sanction lacking for certain lease deeds. (Paras 1, 36-54)

(B) Onus of proof - Regularity and nature of leases - The Mutt's claim that the land is agricultural was supported by reports; the lessee's lack of evidence asserting otherwise was detrimental to their case. (Paras 44-47)

(C) Due process and rights - While the lessee contested the nature of land, the absence of an issue framed regarding agricultural use did not invalidate the proceedings given the parties were fully aware of the real issues. (Paras 62-66)

(D) Applications - The lessee's application for non-agricultural use was found to be non-compliant with statutory requirements for leases governed by the 1987 Act and specific rules therein. (Paras 72-73) (E)

Result: The appeals of the lessee were dismissed, affirming lease cancellation.

Table of Content
1. background of land leases and parties involved (Para 1 , 2 , 3 , 4)
2. details on past sanctioned leases and legislation impact (Para 5 , 6 , 8 , 9)
3. statutory cancellations of leases under the 1987 act (Para 10 , 11)
4. arguments on eviction and agricultural status of land (Para 12 , 13)
5. contested arguments about nature of land use (Para 14 , 15 , 16 , 17)
6. arguments distinguishing agricultural vs. non-agricultural land (Para 18 , 19 , 20 , 21)
7. reporting and evidence on land classification (Para 22 , 23 , 24)
8. deductions from tribunal decisions and legal precedents (Para 25 , 26 , 27 , 28)
9. judicial findings and the nature of land obligations (Para 29 , 30 , 31)
10. final decision regarding civil appeals (Para 72 , 73)

JUDGMENT :

Hemant Gupta, J.

1. The challenge in Civil Appeal Nos. 7759-7760 of 2014 is to an order dated 7.3.2013 passed by the Andhra Pradesh High Court in Writ Petition No. 31893 of 2011 whereby the appellant herein i.e., Gulf Oil Corporation Limited,1[For short, the ‘Lessee’] was ordered to be evicted under the provisions of The Telangana Charitable and Hindu Religious Institutions and Endowments Act , 1987,2[For short, the ‘1987 Act’]. The lessee claimed leasehold rights on the land admeasuring 540 acres and 30 guntas situated at village Kukatpally, Hyderabad.

2. Civil Appeal No.7761 of 2014 has been preferred by Sri Udasin Mutt,3[For short the ‘Lessor’ or ‘Mutt’], the lessor of the said land, arising out of Writ Petition No. 8005 of 2012. The said writ petition was decided along with the writ petition filed by the lessee. The Mutt has claimed mesne profits in terms of Section 8 3(6) of the 1987 Act. However, the writ petition was disposed of with a direction to consider the request of the lessee under Rule 15 of the Telangana Charitable and Hindu Religious Institutions and Endowments Immovable Properties and other Rights (Other than Agricultural Land) Leases and Licenses Rules, 2003,4[For short, the ‘2003 Rules’], published vide Government Order Memo No. 866 dated 8.8.2003.

3. The dry soil land measuring more than 540 acres and 30 guntas was granted as inam land by the Nizam of Hyderabad to the Mutt somewhere in the year 1873. The Mutt entered into an agreement of lease with M/s Indian Detonators, predecessor of the lessee, on 23.07.1964 in respect of 143 acres of inam lands, bearing survey no. 1010/8 to 1010/10. The lessee, claiming to be the successor-in-interest of M/s Indian Detonators, relies on the permission said to be granted by the Government to enter into lease of the inam land on 24.02.1964.

4. The lessor thereafter entered into an agreement with M/s Indian Detonators on 14.9.1966 to take on lease 257 acres and 19 guntas of the inam land. The supplementary lease deed dated 21.03.1969 was also executed for an area of 2 acres and 32 guntas of land.

5. The Commissioner, Endowments Department communicated to the Secretary to Government, Revenue (Endowments) Department on 29.4.1975 to sanction proposed long lease of 99 years of 137 Acres 19 guntas of the land. It was also communicated that since the lease was exceeding 6 years, therefore, sanction of the Government is necessary under Section 70 of the Andhra Pradesh Charitable and Hindu Religious Institutions & Endowments Act, 1966,5[For short, the ‘1966 Act’]. Section 70 of the 1966 Act reads thus :

    “70. Lease, sale, etc., of inams to be void in certain cases:-

    (1) Any lease for a term exceeding six years and any gift, sale, exchange or mortgage of an inam land granted for the support or maintenance of a charitable or religious institution or endowment or for the performance of a religious or public charity or service, shall be null and void unless any such transaction, not being a gift, is effected with the prior sanction of the Government.

    (2) Such prior sanction may be accorded by the Government where they consider that the


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