2011 (5) ALL MR 625
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
DR. D.Y. CHANDRACHUD, J.
Atul Projects India Ltd.
Vs.
Babu Dewoo Farle & Ors.
Suit (L) No. 581 of 2011
Decided on: 25 March 2011
Maharashtra Land Revenue Code, 1966 - Section 36-A-Transfer of occupancy-To a non-tribal-Restriction-Requirement of prior permission of State Government attracted-A transfer in violation of provisions of Section 36-A(1) of Act, invalid and of no consequence.
Maharashtra Land Revenue Code, 1966 - Section 36-A-Bombay Tenancy and Agricultural Lands Act, 1948, Section 43-Transfer-Restriction-Provisions of Section 36-A of Act, 1966 more stringent than provisions of Section 43 of Act, 1948-Section 36-A imposes a prohibition on transfer of occupancy rights from a tribal to a non-tribal with prior permission -Section 43 of Tenancy Act and Section 36-A of Code compared.-Section 36-A provides that no occupancy of a tribal shall be transferred in favour of a non-tribal. Under Section 36-A it is not necessary that the land itself should be envisaged to be transferred. Transfer of occupancy is sufficient to meet the prohibition in Section 36-A. In contrast, it would be necessary to advert to the provisions of Section 43 of the Tenancy Act under which no land purchased by a tenant under Sections 32, 32-F, 32-I, 32-O, 33-C or 43-ID or sold to any person under Section 32-P or 64 "shall be transferred by sale, gift, exchange, mortgage, lease or assignment without the previous sanction of the Collector". A comparison of Section 43 of the Tenancy Act with Section 36-A of the MLRC would reveal the clear distinction in language made by the Legislature. Section 43 of the Tenancy Act applies to a transfer of land purchased by a tenant or sold to any person Section 36-A which is a provision on the other hand which has been specially engrafted to deal with tribal holdings does not refer to the transfer of land but to the transfer of the occupancy of a tribal. While Section 43 of the Tenancy Act confines itself to the five recognised modes of the transfer of property, Section 36-A of the MLRC contemplates those modes "or otherwise". While considering the provisions of Section 43, it has been held in judgments of Single Judges of the Court that a mere agreement to sell which does not create interest in property would not attract Section 43 and it is only at the stage of the execution of the sale deed when the property is actually transferred that the provision would be attracted.
[Balu Baburao Zarole and others v. Shaikh Akbar Shaikh Bhikan and others, 2001 (3) Bom CR 255 : 2001 (3) All MR 95].
In taking this view Court had followed an earlier judgment of D.K. Deshmukh, J. in a judgment dated 1 October, 1997 in appeal from order No. 713 of 1977. In another case that has been decided by the Supreme Court the provisions of the J & K Prohibition on Conservation of Land and Alienation of Orchards Act, 1975 came up for consideration in Manzoor Ahmed Magray v. Gulam Hassan Aram and others, AIR 2000 SC 191. Section 3 of the J & K Act imposes a bar on the alienation of a Orchard except with the previous permission of the Revenue Minister. The Supreme Court emphasized that the prohibition on the transfer of orchards was not absolute and the question of obtaining previous permission under Section 3(1)(a) would arise at the time of execution of the sale deed on the basis of a decree for a specific performance. The provisions of Section 36-A of the MLRC are even more stringent when they are compared with the provisions of Section 43 of the Tenancy Act to which a reference has been made earlier or to those of the J & K Act which fell for determination before the Supreme Court. Section 36-A imposes a prohibition on the transfer of occupancy rights from a tribal to a non-tribal, without prior permission.
1. The Notice of Motion has been taken up on the request of the learned counsel for the contesting parties for hearing and final disposal since the pleadings are complete. The learned counsel appearing on behalf of the Plaintiff undertakes to get the draft Motion registered by removing the office objections, if any.
2. The Motion for interim relief arises in a suit for specific perfommnce seeking:
(i) A declaration that an agreement dated 1 December 2003 as confirmed by a Deed of Confirmation dated 24 December 2004 is valid and subsisting;
(ii) A declaration that the termination of the agreement made on 22 April 2010 is invalid; and
(iii) A decree for specific performance requiring Defendants 1 to 18 to perform the agreement for the sale of the property.
Consequential reliefs have been sought including a declaration that the subsequent Deed of Conveyance dated 23 July 2010 is null and void.
3. Defendants 1 to 18 claim ownership of certain lands in pursuance of Certificates which were issued under Section 32G read with Section 32M of The Bombay Tenancy and Agricultural Lands Act, 1948 ("the Tenancy Act"). They are tribals. The Maharashtra Housing and Area Development Authority claimed title under a Deed of Conveyance of 27 October 1958 and had filed three Writ Petitions under Article 226 of the Constitution interalia challenging the validity of the Certificates which were issued under the Tenancy Act. Defendants 1 to 8, 9 to 13 and 14 to 18 claimed ownership in respect of three plots of land. The Petitions were disposed of by a learned Single Judge on 14 December 2004 upon consent terms filed in Court. The consent terms recognized that lands admeasuring 30,620 sq. meters bearing Survey No. 56 Hissa Nos. 2 and 3, Survey No. 53 and Survey No. 55 Hissa No. 1 corresponding to C.T.S. Nos. 273, 274 and 183 of Village Magathane, Taluka Borivali, belonged to MHADA as owner under a Registered Deed of Conveyance dated 27 October 1958. The consent terms recognized that the tribals were in occupation of an area admeasuring about 40% of the land more particularly described in the consent terms. The Certificates issued under Section 32G were quashed and set aside. MHADA, in consideration of the tribals agreeing to give up their claims against it agreed to transfer three plots of land to Defendants 1 to 18 or to their nommees.
4. Defendants 1 to 18 had entered into agreements with Bagve Housing Private Limited which in turn had a transaction with J. B. Associates, a partnership firm. On 1 December 2003 an Agreement for Development and Sale was entered into by Defendants 1 to 18 interalia with the Plaintiffs by which they agreed to grant development rights on the lands which were to be allotted to them by MHADA for a consideration of Rs.3 Crores. The First Schedule of the Agreement adverts to a larger property; whereas the Second Schedule elucidates 40% thereof which MHADA was to allot to Defendants 1 to 18 and which in turn formed the subject matter of the Agreement to Sell in favour of the Plaintiff.
5. On 24 December 2004 a further agrcement was entered into between Defendants 1 to 18, Bagve Housing Private Limited, J.B. Associates and the predecessor of the Plaintiff recording that in pursuance of the Development Agreement dated 1 December 2003 physical possession had been handed over to the Plaintiff. The Agreement confirmed that under the Development Agreement dated 1 December 2003 the parties including the tribals had agreed to transfer and assign the development rights in respect of 40% of the property at Magathane to the Plaintiff. A possession receipt was executed.
6. The Plaintiff paid an amount of Rs.3 Crores under the Development Agreement and assumed the obligation to furnish a built up area of 4000 sq. ft. to Defendants 1 to 18. A Power of Attorney was executed in favour of the Plaintiff. The Plaintiff claims to have put up its board on the property and to have engaged a security agency.
7. An application under Section 36A of th
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