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1997 Supreme(All) 1224

IN THE HIGH COURT OF ALLAHABAD
Ravi S. Dhavan and V. P. Goel, JJ.
SATYA NARAIN KAPOOR - Appellant
Versus
STATE OF UTTAR PRADESH - Respondents
Writ Petition 32605 Of 1991 with other 2 Petitions
Decided On : 10/15/1997

Nazul estates are a distinct category of land held in trust by the government and cannot be alienated in perpetuity. They are managed under specific rules and regulations to generate revenue and support public welfare initiatives.

Headnote:

The concept of Nazul estates, their origin, and the legal framework governing their management and disposition were examined in this case involving disputes over the allotment of shops in a municipal market. The court delved into historical records, administrative instructions, and relevant legislation to establish the unique characteristics of Nazul properties, emphasizing that they are held in trust by the government and cannot be alienated in perpetuity.

Fact of the Case:

Three writ petitions were filed challenging the Collector's decision to auction two shops in a municipal market, which were originally allotted to the petitioners or their predecessors under the Nazul Shop Rules. The petitioners claimed entitlement to the shops based on inheritance or partnership rights, while the respondents asserted that the petitioners were unauthorized occupants and that the shops should be auctioned as per the rules.

Finding of the Court:

The court held that Nazul estates are a distinct category of land that originated from confiscated properties or escheats to the government. These lands are managed by the government and local authorities, and their primary purpose is to generate revenue and support public welfare initiatives. The court emphasized that Nazul properties cannot be sold or converted into freehold estates, as they must remain in a state where they can be reverted to the government when required.

Issues: 1. Whether the petitioners were entitled to receive an allotment of the shops under the Nazul Shop Rules. 2. Whether the respondents could auction the shops as unauthorized encroachments. 3. The legal framework governing the management and disposition of Nazul estates.

Ratio Decidendi: The court's decision was based on the following legal principles and interpretations: 1. Nazul estates are held in trust by the government and cannot be alienated in perpetuity. 2. Leases or grants of Nazul properties can be made under the Government Grants Act, 1895, but such grants do not confer proprietary rights. 3. The Nazul Shop Rules govern the allotment and management of shops in municipal markets on Nazul land. 4. Unauthorized occupation of Nazul properties is prohibited, and such occupants are liable to eviction.

Final Decision: The court quashed the government orders permitting the conversion of Nazul estates into freehold and directed the respondents to follow the Nazul Shop Rules in allotting the shops in question. The court also emphasized the need for transparent and equitable management of Nazul properties, ensuring that they are preserved for their intended purposes and that the rights of eligible allottees are protected.

RAVI S. DHAVAN, J.

( 1 ) THESE cases will be discussed individually. But. they raise an important question of a long forgotten phenomenon of control by Government on an estate known by the expression nazul. Settlements record nazul as an estate, land and property, but there is less modern law available to explain what is the concept of nazul estates. Whatever material is available is virtually lying in the archives of administration and out of use. The administration has forgotten to take guidance from prescribed administrative instructions on how to deal with nazul an estate held by the government, in public trust not as a private preserve. These cases are not about private rights, but public law of public property and the trust in Government to hold it, be it a small nazul shop in a municipal market, a commercial complex or residential. The principles which govern nazul estates are the same.

( 2 ) THESE three writ petitions are in the matter relating to shops, all of them small shops, in the chowk area of the city (south) of Allahabad behind the famous Clock Tower. These shops, referred to by the petitioners or the respondents, are in a demarcated area where existed a municipal market and the hackney carriage stand ; the two adjoining each other. The allotment, lease and the subsequent control of letting, rent and eviction is controlled by a set of rules, known as the Rules for the Grant of Leases of Subzimandi Shops in the Allahabad District (Nazul shops ). [government Order No. 2547/xi, dated 16th July, 1940, as amended by government Order No. 789-A/x1-77-78, dated 17th February, 1942]. These rules were framed in 1940, and will hereinafter be referred to as the Nazul Shop Rules.

( 3 ) ALL such shops within the district of Allahabad are governed by these rules. Thus, any interpretation of the situation will affect a large number of shops, within the district of Allahabad and wherever similar rules operate in other districts of the State. Further, an understanding of what is nazul is basic before the issues are decided. Suffice it to say that there is no issue between the petitioners or the State respondents that whoever may occupy, all these shops are small shops in use by petty shop keepers of modest means. The shops are on nazul land and the property, the shops and the land are nazul in character ; the rules describe it so.

( 4 ) THE resume of short facts of each writ petition are as below : satya Narain Kapoor v. State of U. P. and three others, [writ Petition No. 32605 of 1991].

( 5 ) THIS writ petition was brought to the court after the petitioner, Satya Narain Kapoor, received a copy of the notice from the Collector. Allahabad through the Special Nazul Officer. The notice is addressed to the Administrator, Nagar Mahapalika, Allahabad. This notice is dated 3 June, 1986. On an enquiry in reference to Shops No. 195 and 196 in the Municipal Market, Chowk, in connection with the mutation of the name of the occupier, the Collector indicated his views to the Municipal Corporation. The Collector indicated that the shop was originally allotted to the husband of Mst. Wahidan Bibi. The induction of the petitioner into the premises of the shop was not accepted by the Collector. Drawing the attention of the Nagar Mahapalika. Allahabad that the person who had been inducted not being the legal heir, the mutation sought by the occupier under the Nazul Shop Rules was not possible. It was desired by the Collector that suggestions recommending allotment be made strictly in accordance with the Nazul Shops Rules, aforesaid. The situation, it appears, did not suit Satya Narain Kapoor the occupier, who calls himself a sikmi Kirayedar, and thus, he filed the present writ petition.

( 6 ) IT is on record of the writ petition that an attempt was sought by one Riaz Ahmad for having the shop mutated in his name on the plea that his father Nisar Ahmad, also deceased, had been adopted by Mst. Wahidan Bibi. Thus, Riaz Ahmad contended that he ought t















































































































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