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2024 Supreme(Gau) 84

IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
DEVASHIS BARUAH, J.
Purbattar Yduog Handicraft Co-Operative Societies Ltd. – Petitioner
Versus
The State of Assam and Others – Respondents
W.P. (C) No. 2321 of 2014
Decided On : 05-02-2024

Advocates:
Advocate Appeared:
For the Petitioners: D. Das, D.P. Borah.
For the Respondents: R. Borpujari, U. Das.

A settlement obtained through misrepresentation and fraud can be cancelled by the state without notice, as it violates principles of natural justice.

Headnote:(A) Assam Co-operative Societies Act, 1949 - Writ petition challenging cancellation of land settlement - The petitioner, a cooperative society, sought land for establishing a training center but was accused of misrepresentation and fraud in its application. The settlement was cancelled due to violation of prior court orders and misrepresentation of facts. (Paras 1-59)

(B) Natural Justice - The court emphasized that rights accrued from a settlement cannot be revoked without due process and notice. (Paras 11-12)

(C) Fraud - The court found that the petitioner misrepresented its intentions regarding land use, constituting fraud, which justified the cancellation of the settlement. (Paras 50-51)

Facts of the case:
The petitioner society applied for land settlement to establish a training center for women but later sought to use the land for commercial purposes, leading to the cancellation of the settlement.

Findings of Court:
The court found that the petitioner had obtained the settlement through misrepresentation and fraud, justifying the cancellation of the settlement order.

Issues: The main issues included whether the petitioner misrepresented facts and whether the cancellation of the settlement was justified.

Ratio Decidendi: The court ruled that the petitioner’s actions constituted fraud, allowing the state to cancel the settlement without notice.

Result: Writ petition dismissed, with the state ordered to refund the premium paid by the petitioner.

JUDGMENT :

DEVASHIS BARUAH, J.

1. Heard Mr. D. Das, the learned Senior counsel assisted by Mr. D.P. Borah, the learned counsel appearing on behalf of the Petitioner. I have also heard Mr. R. Borpujari, the learned Standing counsel appearing on behalf of the Revenue and Disaster Management Department, Government of Assam and Ms. U. Das, the learned Additional Senior Government Advocate appearing on behalf of the Deputy Commissioner, Kamrup (M) as well as the Circle Officer, Guwahati Revenue Circle. None has appeared on behalf of the Guwahati Metropolitan Development Authority.

2. The present writ petition challenges the order bearing No. RSS-1418/2006/257 dated 25.04.2014 issued by the Additional Chief Secretary to the Government of Assam, Revenue and Disaster Management Department (for short “the impugned order”) and for a further direction that the Respondent Authorities should not disturb the Petitioner’s rights over the land in question.

3. The facts as could be discerned from the pleadings are that the Petitioner herein is a Cooperative Society which was registered under the Assam Co-operative Societies Act, 1949. The Petitioner Society was issued a Registration No. G-33/91/92 dated 19.03.1992. It is pertinent herein to mention that at the time of filing of the writ petition, the Petitioner Society was represented by its then Secretary Shri Paresh Chandra Haloi. Although, the Memorandum and the Articles of Association or for that matter the byelaws of the Petitioner society have not been enclosed to the writ petition but from a perusal of the Paragraph No. 2 of the writ petition, it reveals that the objectives of the said society was to provide succor and livelihood to the unemployed youths, widows and distressed women. It was mentioned that the Petitioner society was set up to impart training and to undertake activities for manufacture and sale of bamboo and cane products and also for imparting skilled training in embroidery and other designer items. It was also mentioned that with a view to reach the stage of self-sufficiency, the Petitioner society undertook activities for expanding so as to be able to manufacture products of high quality which can be exported and sold at reasonable prices within and outside the country and also to be able to compete in the international market.

4. With the above aims and objectives, the Petitioner society made a request to the District Collector, Kamrup for allotment and settlement of land in its favour to enable the petitioner society to construct permanent work-sheds for the benefit of the handicraft artisans. The said request made by the Petitioner society was duly taken note of by the Authorities concerned as discernible from the communication dated 07.07.2004 issued by the Chief Revenue Assistant of the Office of the Deputy Commissioner, Kamrup, Guwahati (Land Settlement Branch) to the Settlement Officer, Guwahati and also to the Circle Officer, Guwahati Revenue Circle, requiring the said Authorities to submit reports on the applications for settlement of land made by the Applicants whose names were mentioned in the said communication.

5. While the said process was ongoing, the Petitioner society also made a formal application to the Minister of Revenue highlighting the object and benevolent activities of the petitioner society and made a request for allotment and settlement of at least 3 (three) Bighas of land which was lying fallow under Sarkari Dag No 229 of Sahar Guwahati Part-II, Guwahati Revenue Circle, vide letter dated 07.04.2005. On the same date, the Revenue (Settlement) Department, Government of Assam, issued an order asking the Deputy Commissioner, Kamrup (Metro) to furnish proposal observing all formalities. Thereupon, the Office of the Deputy Commissioner, Kamrup (Metro) (Land Settlement Branch) vide a communication dated 07.05.2005 directed the Circle Officer, Guwahati Revenue Circle to make enquiries into the matter and submit report/proposal as per Land Policy after obs

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