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2000 Supreme(Raj) 243

High Court Of Rajasthan
Judgename : S.K. Garg
Asuram - Appellant
Versus
Tehsildar - Respondent
Civil Writ Petition Nos. 4346 of 1998
Decided On : 03/30/2000

Advocates Appeared:
S.N. Sharma, for the Appellant
S. S. Purohit and Dinesh Maheshwari, for the Respondents

The main legal point established in the judgment is the validity of Sub-section (4) of Section 14 of the Act and the distinction between sales conducted under Section 13 and Section 14, based on the nature of property transfer involved.

Headnote:

Banking - Land Acquisition - Rajasthan Agricultural Credit Operations (Removal of Difficulties) Act, 1974 - Section 14(4)

Fact of the Case:

The case involved a challenge to the validity of Sub-section (4) of Section 14 of the Rajasthan Agricultural Credit Operations (Removal of Difficulties) Act, 1974, which restricted the transfer of land acquired by the Creditor Bank from Debtors who are members of SC/ST to the members of SC/ST only. The controversy arose when the Bank transferred the acquired land to buyers who were not members of SC/ST, leading to a dispute with the Tehsildar.

Finding of the Court:

The Court found that the provisions of Sub-section (4) of Section 14 of the Act were valid and did not violate the constitutional mandate. It held that the sale conducted under Section 13 of the Act involved the transfer of the debtor's interest, while a sale under Section 14 of the Act involved the transfer of the Bank's own property. The Court also directed the State Government to refund the amounts received from the petitioners if their sales were not sustained.

Issues: The issues involved the validity of Sub-section (4) of Section 14 of the Act, the distinction between sales conducted under Section 13 and Section 14, and the jurisdiction of the review Court to interfere with interim orders passed by the Prescribed Authority.

Ratio Decidendi: The Court's decision was based on the interpretation of the provisions of Sections 13 and 14 of the Act, the distinction between the nature of sales conducted under these sections, and the constitutional mandate to protect the interests of weaker sections of society, particularly members of SC/ST.

Final Decision: The writ petitions were disposed of, and the State Government was directed to refund the amounts received from the petitioners if their sales were not sustained. The petitioners were also entitled to interest if the refund was not made within a specified period.

Judgment

S.K. Garg, J.-Since all these four writ petitions raise common question of law and facts and, therefore, they were heard together and are being disposed of by a common order.

2. In these writ petitions, a prayer has been made to declare Sub-section (4) of Section 14 of the Rajasthan Agricultural Credit Operations (Removal of Difficulties) Act. 1974 (for short ‘the Act’) ultra vires of Sub-section (1) of Section 14 of the Act, which restricts the sphere of transfer of land acquired by the Creditor Bank from the Debtors who are members of SC/ST. to the members of SC/ST only. The question regarding jurisdiction of review Court to interfere with the interim order passed by the Prescribed Authority under Section 13 of the Act has also been raised. The controversy as arisen in the context is that the Bank in question has after obtaining an order under Section 13 of the Act either auctioned the land in question or transferred the same after acquisition under Section 14 of the Act to a buyer who is not a member of SC/ST. The petitioners in these writ petitions are such buyers of the land from the Bank and in all these cases, the Tehsildar who has earlier made the order as Prescribed Authority has proposed that such a transfer is not permissible in view of the provisions of Section 14(4) of the Act read with the provisions of the Rajasthan Tenancy Act, 1955 in this regard and to initiate proceedings for setting aside the sales made in favour of the petitioners.

3. We do not find any force in the contention as to the validity of the provisions of Sub-section (4) of Section 14 of the Act. It has been urged by the learned Counsel for the petitioners that there is a mark distinction between the sales carried out under Section 13 and under Section 14 of the Act, which comes within the ambit of hostile discrimination in the matter of disposal of same land on the basis of the methodology adopted by the Bank. While there is no provision like Sub-section (4) of Section 14 in Section 13 of the Act. There is no prohibition in the sphere of transfer of property under Section 13 of the Act. Here, it would be useful to quote the relevant provisions of Sections 13 and 14 of the Act in extensor.

“Section 13. Recovery of dues of a bank through a prescribed authority:-

(1) Notwithstanding anything contained in any law for the time being in force, an official of the State Government notified by the State Government as the prescribed authority for the purpose of this section may, on the application of a bank, make an order on or any agriculturist or his heirs or legal representative or his guarantor, directing the payment of any sum due to the bank on account of financial assistance availed of by the agriculturist, by the sale of any land or interest therein or any other immovable property, upon which the payment of such money is charged or mortgaged or any other property in his possession: Provided that no order shall be made by the prescribed authority under this subsection for the sale of any land or any interest therein or any other immovable property upon which the payment of money is charged or mortgaged or any other property in his possession, as the case may be, unless the agriculturist or the heir or legal representative or his guarantor of the agriculturist, as the case may be, has been given an opportunity of being heard and has been served with a notice by the prescribed authority calling upon him to pay the amount due and default has been made in payment thereof for three months after the determination of liabilities by such authority.

.(2) Every order passed by the prescribed authority in term of Sub-section (1) shall be deemed to be a decree of a Civil Court and shall be executed by him in the same manner as a decree of such Court. Explanation.--For the purpose of exercising powers conferred by this sub-section, the prescribed authority shall be deemed to be a Civil Court.

.(3) Nothing in this section shall debar a bank from seeking










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