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1975 Supreme(All) 106

HIGH COURT OF ALLAHABAD
G.C.Mathur, C.D.Parekh
STATE OF U P
Versus
SAEED AHMAD AND CO
Decided On : 17 March 1975
Special Appeals Nos. 61 and 81 of 1975, W. P. No. 1778 of 1973

Advocates Appeared:
B.N.Sapru, Bashir Ahmed, S.D.AGARWALA,

Headnote:

LAND ACQUISITION ACT, 1894 - SECTION 43 - GOVERNMENT OF INDIA ACT, 1935 - SECTION 172 - CONSTITUTION OF INDIA, ARTICLE 294 - LAND VESTED IN UNION OF INDIA - TREES STANDING ON LAND - SALE BY RAILWAY COMPANY - STATE GOVERNMENT HAS NO RIGHT TO PREVENT PURCHASERS FROM CUTTING AND REMOVING TREES.

Fact of the Case:

The S. S. Light Railway Company, which operated a railway between Shahdara and Saharanpur, went into voluntary liquidation and sold its assets, including trees standing on land acquired by the Government of the United Provinces under an agreement dated October 11, 1905. The State Government claimed that the land reverted to it upon the Company's liquidation, while the Union of India asserted that the land vested in it. The purchasers of the trees filed writ petitions challenging the State Government's orders preventing them from cutting and removing the trees.

Finding of the Court:

The court held that the land vested in the Union of India and not in the State Government. The agreement of October 11, 1905, was entered into by the Government of the United Provinces on behalf of the Secretary of State for India in Council, and the land acquired under the agreement vested in His Majesty. Under Section 172 of the Government of India Act, 1935, the land vested in His Majesty for purposes of the Federal Government, as the railway was a federal railway included in List I of the Seventh Schedule to the Act. Article 294 of the Constitution provides that all property and assets vested in His Majesty for the purposes of the Government of the Dominion of India shall vest in the Union of India.

Issues: 1. Whether the land acquired by the Government of the United Provinces under the agreement of October 11, 1905, reverted to the State Government upon the liquidation of the S. S. Light Railway Company. 2. Whether the trees standing on the land were included in the expression "land" used in Section 44-A of the Land Acquisition Act, 1894.

Ratio Decidendi: 1. The agreement of October 11, 1905, was entered into by the Government of the United Provinces on behalf of the Secretary of State for India in Council, and the land acquired under the agreement vested in His Majesty. Under Section 172 of the Government of India Act, 1935, the land vested in His Majesty for purposes of the Federal Government, as the railway was a federal railway included in List I of the Seventh Schedule to the Act. Article 294 of the Constitution provides that all property and assets vested in His Majesty for the purposes of the Government of the Dominion of India shall vest in the Union of India. Therefore, the land vested in the Union of India and not in the State Government. 2. Section 44-A of the Land Acquisition Act, 1962, prohibits the transfer of land and not the sale of trees standing on it. The definition of "land" in Section 3(a) of the Act includes benefits to arise out of land and things attached to the earth or permanently fastened to anything attached to the earth. However, the context of Section 44-A rules out the use of this definition for interpreting the expression "land" used in this section. The section was only intended to prevent a Company, for which land had been acquired under the Act, from transferring it.

Final Decision: The court dismissed the State Government's appeals, holding that the land vested in the Union of India and not in the State Government, and that the State Government had no right to prevent the purchasers of the trees from cutting and removing them.

G. C. MATHUR, J.

These are two appeals by the State Government against two judgments of a learned Single Judge, allowing two writ petitions. Since the point involved in the two cases is the same, it is convenient to disipose them of by a common judgment.

2. An agreement dated October 11, 1905, was entered into by the Government of the United Provinces of Agra and Oudh and the firm of Martin and Co. Under this agreement, provisions were made for the grant of a concession of the right to construct and work what has subsequently come to be known as Shahdara-Saharanpur Light Railway. Under one of the terms of the agreement, the Government agreed to provide free of charge sufficient land for purposes of the Railway. It appears that land was acquired by the Government and was handed over to the Railway. Ever since this Light Railway has been operating between Shahdara (Delhi) and Saharanpur. Though, in the beginning, Shahdara was a part of the United Provinces, later it was included in Delhi.

3. By a special resolution dated December 10,1970, the S. S. Light Railway Co. decided to go into voluntary liquidation and a voluntary liquidator was appointed. On March 18,1971, an agreement was entered into between the Company and one Sri Bishambhar Dayal of Delhi for the sale of the assets of the Company. By another agreement dated September 25, 1971, the Railway Company entered into an agreement with Messrs. Saeed Ahmad and Company, Saharanpur, for the sale of all the trees which stood on both sides of the railway track from Shahdara to Saharanpur. When these purchasers started removing the things which they had purchased, certain orders were passed by the State Government and its functionaries, stopping them from doing so. Thereupon Writ Petition No 1676 of 1973 was filed by the S. S. Light Railway Company Limited, praying that the orders by which its purchasers were being prevented from removing the articles sold be quashed. Writ Petition No. 1778 of 1973 was filed by Messrs. Saeed Ahmad and Company, praying that the orders of the State Government and of its functionaries, preventing this petitioner from cutting and removing the trees, be quashed. Both the writ petitions were based on the assertion that the State Government had no concern with the land which had been given to the Railway and upon which the trees stood and where the other properties of the Railway were situated. The State Government opposed both the writ petitions, mainly on the ground that, on the Company going into voluntary liquidation, the land reverted to it and it was the owner thereof. The Union of India, which was made a party in Writ Petition No. 1778 of 1973, filed a counter- affidavit, asserting that the land vested in it and not in the State Government. The learned Single Judge held that the land vested in the Union of India and not in the State Government. He accordingly allowed both the writ petitions, quashed the offending orders and restrained the State Government and its functionaries from interfering with the purchasers from the Company in removing the articles purchased by them.

4. Against the judgment in Writ Petition No. 1778 of 1973, the State Government has filed Special Appeal No. 61 of 1975. This relates to the trees sold by the Company to Messrs. Saeed Ahmad and Company. Against the judgment in Writ Petition No. 1676 of 1973, the State Government has filed Special Appeal No. 81 of 1975. This appeal is directed only against the orders of the learned Single Judge in respect of the trees sold by the Railway Company to Messrs. Saeed Ahmad and Company. In both these appeals, the only question, which arises for determination, is whether the land, which had originally been given to the Railway Company has now vested in the State Government.

5. Reliance was placed by the learned Standing Counsel on the agreement of October 11, 1905. Emphasis was laid on the fact that the agreement was entered into by the Government of the United Provinces and that the va












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