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2024 Supreme(Bom) 1025

IN THE HIGH COURT OF BOMBAY
SHARMILA U. DESHMUKH, J.
Mehru H. Dalal – Appellant
Versus
The Iranian Zorostriyan Anjuman Trust and Others – Respondents
Writ Petition No. 10946 of 2023
Decided On : 02-07-2024

Advocates:
Advocate Appeared:
For the Appellants : Ashutosh A. Kumbhakoni, Prajakt Arjunwadkar
For the Respondent: Sunil Karandikar

The court affirmed that the exemption certificate under Section 88B of the Tenancy Act was valid as the Trust met the necessary criteria, and the Petitioners' claims of tenancy did not negate this.

Headnote:(A) Maharashtra Tenancy and Agricultural Lands Act, 1948 - Section 88B(2) - Exemption certificate - Petitioners challenged the MRT's dismissal of their revision application against the exemption certificate granted to the Respondent Trust - The court examined whether the Petitioners were tenants as of 1st April 1957 and if the Trust met the criteria for exemption under Section 88B(1)(b) - The court found that the Respondents had established that the income from the land was appropriated for the purposes of the Trust, satisfying the requirements for exemption. (Paras 18, 23, 24, 30, 34)

(B) Tenancy Rights - The court ruled that the Petitioners' claim of deemed ownership as of 1st April 1957 was subject to the outcome of the exemption proceedings under Section 88B - The acknowledgment of tenancy rights by the Respondents did not negate the Trust's exemption. (Paras 25, 26)

(C) Delay in Application - The court held that the delay in filing the application for exemption was justified due to the land being declared surplus and vested in the Government from 1973 to 2009. (Paras 33, 34)

Facts of the case:
The Petitioners challenged the MRT's decision regarding an exemption certificate for agricultural land leased to them, asserting their tenancy rights since 1944 and questioning the Trust's entitlement to exemption under the Tenancy Act.

Findings of Court:
The MRT's decision was upheld, confirming that the Trust met the criteria for exemption under Section 88B and that the Petitioners' claims did not negate this.

Issues: The main issues were whether the Petitioners were tenants as of 1st April 1957 and whether the Trust satisfied the exemption criteria under Section 88B(1)(b).

Ratio Decidendi: The court concluded that the Respondents had demonstrated compliance with the requirements for exemption under Section 88B, and the Petitioners' claims regarding tenancy rights did not affect this determination.

Result: Petition dismissed.

JUDGMENT :

SHARMILA U. DESHMUKH, J.

1. Rule. Rule made returnable forthwith with consent of the parties and taken up forthwith for final disposal.

2. By this petition filed under Article 227 of the Constitution of India, exception is taken to the judgment and order dated 27th November 2019 passed by the Maharashtra Revenue Tribunal [for short “the MRT”] in Revision Application No. TNC/REV/PAL/152/2019. By the said judgment, MRT dismissed the revision application filed by the Petitioners challenging the exemption certificate granted under Section 88B (2) of the Maharashtra Tenancy and Agricultural Lands Act [For short “the Tenancy Act”] by the Sub Divisional Officer, Palghar [for short “the SDO”]. The Petitioners and their predecessors in title are referred to interchangeably as Petitioners and the Respondent No 1 Trust and the Trustees are referred to as Respondents.

FACTUAL MATRIX:

3. The subject land in respect of which the exemption certificate has been granted is agricultural land bearing Survey No. 942 admeasuring 108 acres situated at Village Mahim, Taluka and District Palghar. Survey No 942 was leased by the State Government for period of 999 years. By an indenture of lease dated 6th October 1944, the Respondents initially granted a lease to the Petitioners for a period of 12 years which was extended for a period of 10 years till 8th June 1962 and the Petitioners continued in possession of the suit land even thereafter.

4. On 11th July 1969, the Respondents filed Regular Civil Suit No. 95 of 1969 in the Civil Court seeking possession of the suit land from the Petitioners. On 13th February 1974 by virtue of compromise arrived at between the parties, consent terms were executed under which the Petitioners, who were in actual possession of the land admeasuring 1,518 acres and 2¼ gunthas, retained possession of 108 acres of land i.e. subject land in one compact area upon payment of rent and agreed to hand over physical possession of the remaining land admeasuring 1,410 acres and 2¼ gunthas to the Respondents. The Respondents agreed to pay Rs.2,50,000/- to the Petitioners as reimbursement of actual agricultural development expenses incurred by the parties between 1930 and 1955 and not to disturb the possession of Petitioners and their heirs in respect of the said retained land.

PROCEEDINGS UNDER THE MAHARASHTRA AGRICULTURAL LANDS (CEILING ON HOLDINGS) ACT, 1961:

5. By an order dated 28th February, 1973, the Sub Divisional Officer in an inquiry under Section 14 to 21 of the Maharashtra Agricultural Lands (Ceiling on Holdings) Act, 1961 against the Respondents delimited about 1350 Acres 2 gunthas and 4 Annas land as surplus, however, the taking over of the surplus land and its distribution was stayed by order dated 25th October, 1975. An application came to be filed by the Respondents on 17th November, 1975 before the Hon'ble Minister for Revenue requesting acceptance of surrender of about 449 acres of land and for grant of exemption to the remaining land. The Application came to be rejected as against which petitions were filed before the High Court which were allowed and the matter was remanded to the State Government for fresh consideration. The State Government carried the matter in appeal before the Apex Court, which came to be dismissed on 25th July 1991. Vide order dated 22nd July, 2005 which was notified in the Government Gazette on 6th June, 2009, the Hon'ble Minister directed the Petitioners to surrender 1410 Acres 2/12 gunthas to the Respondents who shall pay Rs.2,50,000/- to the Petitioners, the Petitioners to retain 108 Acres as tenants and exemption was granted upon 449 acres being surrendered by the Respondents to the State Government and 40% of the income from the exempted land to be utilised for educational purpose of the locals of District Thane.

PROCEEDINGS FILED BY THE PETITIONERS UNDER SECTION 32G OF TENANCY ACT:

6. Tenancy Case No. 3 of 2004 was instituted by the Petitioner before the Tahsildar and ALT, Palghar for

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