IN THE HIGH COURT OF CALCUTTA
I.P. Mukerji, J.
Mahesh Kumar Goyal and others - Appellants
Versus
State of West Bengal and others - Respondents
W.P. No. 153 (W) of 2003
Decided On : 20-04-2015
GOVERNMENT GRANTS ACT, 1895 - LEASE AGREEMENT - SECTION 3 - TRANSFER OF PROPERTY ACT, 1882 - SECTION 22A OF THE REGISTRATION ACT, 1908 - PUBLIC POLICY - The court examined whether the Government of West Bengal could restrict the right of a lessee of its property in Salt Lake to assign that lease, considering the provisions of the Government Grants Act, 1895, the Transfer of Property Act, 1882, and Section 22A of the Registration Act, 1908.
Fact of the Case:
The heirs of Charu Chandra Bose, the original lessee of a Salt Lake property, sold the property to the petitioners without obtaining prior permission from the Government of West Bengal, as required by a notification issued under Section 22A of the Registration Act. The respondent authorities refused to mutate the petitioners' names in the records, citing the notification and the Government Grants Act.
Finding of the Court:
The court held that the Government Grants Act did not prohibit the assignment of the lease, as the lease agreement did not explicitly restrict the lessee's right to transfer the lease. The court also held that Section 22A of the Registration Act, as inserted by the West Bengal legislature, was ultra vires the constitution, following the Supreme Court's decision in State of Rajasthan and Others v. Basant Nahata.
Issues: 1. Whether the Government of West Bengal could restrict the right of a lessee of its property in Salt Lake to assign that lease? 2. Whether the Government Grants Act, 1895 applied to Salt Lake and imposed a restriction on the transfer of the lease? 3. Whether Section 22A of the Registration Act, 1908, as inserted by the West Bengal legislature, was valid and applicable to the transfer of the property.
Ratio Decidendi: 1. The Government Grants Act, 1895 did not prohibit the assignment of the lease, as the lease agreement did not explicitly restrict the lessee's right to transfer the lease. 2. Section 22A of the Registration Act, as inserted by the West Bengal legislature, was ultra vires the constitution, as it delegated the power to define and classify documents to the executive, which was opposed to public policy.
Final Decision: The court allowed the writ petition, set aside the impugned decision of the Joint Secretary to the Government of West Bengal Urban Development Department, and directed the respondents to mutate the property in the name of the petitioners.
I.P. Mukerji, J.
Questions of law of great moment and importance have arisen during the course of hearing of this writ application. They are most interesting, as well. The question is: whether the Government of West Bengal can fetter the right of a lessee of its property in Salt Lake with regard to assignment of that lease? All land in the Salt Lake area belong to the government. It only grants leases of parcels of land. In this case on 6th February, 1975 the Government demised to Charu Chandra Bose a plot of land in Salt Lake on lease for period of 999 years. On his death the plot, which had since been constructed upon into premises No. EC-149, Sector-1, Salt Lake City (Bidhannagar), devolved on his wife and off springs as his legal heirs. It was mutated in their names. Now, this property was reasonably large comprising of 4.3447 cottahs.
2. There is an ancient statute called the Government Grants Act, 1895. In areas where the Government Grants Act operates the Transfer of Property Act, 1882 has no application. Admittedly, this area falls within the operation of the Government Grants Act. According to Section 3 of this Act all provisions, restrictions, conditions etc. in a grant are to take effect irrespective of anything contrary contained in any statute.
3. Clause-8 of the lease agreement provided that any joint lessee could have the right to transfer his right in favour of the other joint lessee. Apart from this there was no restriction on the right of a lessee to assign the lease in favour of any third party.
4. What happened was this.
5. The heirs of Charu Chandra Bose were in Delhi on or about 8th April, 1988. On that date they executed a deed of sale of the said property in favour of the Mahesh Kumar Goyal and Dinesh Kumar Goyal, the writ petitioners and registered the conveyance there.
6. It is not very difficult to imagine that this sale was not made in a clean manner. On 22nd February, 1988 the Government of West Bengal had published a notification declaring that if any property in Salt Lake was sold without the permission of the Government it would be opposed to public policy. This notification was issued in exercise of powers under sub-Section 1 of Section 22A of the Registration Act.
7. This notification was further amended on 21st May, 1988 but the essential part of it regarding the restriction of transfer of Salt Lake property remained unchanged. Section 22A of the Registration Act, 1908 and the aforesaid notification dated 21st May, 1988 are reproduced below:-
"(1) The State Government may, by notification in the Official Gazette, declare that the registration of any document or any class of documents specified in such notification shall be opposed to public policy.
(2) The registering officer shall examine whether a document prescribed for registration is one to which a notification under sub-section (1) is applicable and shall take such evidence as may be produced by the parties and may also require them to produce all documents in their possession or custody which the registering officer considers relevant.
(3) Notwithstanding anything to the contrary contained elsewhere in the Act, the registering officer shall refused to register any document or any class of documents to which a notification under sub-section (1) is applicable-Registration (W.B. Amendment) Act, 1981. Notification No. 452- Regn., dated 21st May, 1988-in exercise of power conferred by sub-section (1) of Section 22A of the Registration Act, 1908 (16 of 1908), as amended by the Registration (West Bengal Amendment) Act, 1981 (West Bengal Act XLIII of 1981), on its application to West Bengal, and in supersession of this department notification No. 195-Regn., dated the 22nd February 1988, the Governor is pleased hereby to declare that any document-
(a) Transferring any vacant land or land with building; or
(b) Delegating right of enjoyment and management of any land or building by executing a power of attorney (including irrevocable power of attor
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