The main legal point established is that failure to apply for lease within the stipulated period under the Zamindari Abolition Act resulted in the loss of rights, and possession for industrial purposes negated the plaintiffs' claim of ownership based on ancestral possession.

Vivek Rusia, J.

The appellants/plaintiffs have filed the present appeal being aggrieved by judgement and decree dated 26.3.1999 passed by Sixth Additional District Judge, Ujjain, by which, Civil Suit no.39-A/1991 has been dismissed.

2. The plaintiffs filed the civil suit seeking the relief of declaration of ownership of lands having area 8 Bighas' and 1 Biswa' called as "Category 1 lands" and lands having area 10 Bighas' and 16 Biswa' called as "Category 3 lands" (both category of the lands are here in after referred as 'Suit lands') situated in the Municipal area of Ujjain and also challenged the decision of the respondents/defendants by which they were treated as encroacher as void and illegal.

3. As per pleadings in the plaint, there was Industrial Mill Company Ltd Ujjain over lands bearing Survey No.3766 area 4 Bighas and 5 Biswas and lands bearing Survey No.3654/1 area 3 Bighas 15 Biswa at Ujjain. The said company took a loan from Gwalior Trust. In order to recover the loan amount, the said Industrial Mill Company Ltd Ujjain along with the lands Category 1 was put into auction on 8.2.1930 and in the auction proceedings; Seth Onkarmal purchased the same and he was placed into his possession on 16.7.1930. He started the Mill in the name of The Seth Onkalmal Flour Mill. Later on, Seth Onkarmal Ji entered into partnership firm with Seth Fida Hussain Sandalwale and also changed the name of the company Mill/Factory as "Sandalwale Flour and Oil Mill". Thereafter, Fida Hussain left the partnership firm and Abdul Hussain became the exclusive sole proprietor of firm accident and also named the factory as "Sunrising and Oil Mill". He remained as the owner thereof till 24.7.1961. In the year 1961, there was a fire accident in the factory, because of which, the production was stopped. Abdul Hussain died on 28.12.1968 and thereafter, the plaintiffs being the legal representatives became the owner of suit property. The Category 3 lands was given to the ancestors of the plaintiff for the use of factory and agricultural purposes and they used the same for agricultural purposes since them.

4. The lands comprising in Survey Nos. 3754/1, 3754/8, 3754/3, 3754/10 and 3754/12 area 8 Bighas 14 and 14 Biswa (hereinafter, referred to as "Category 2 lands") is also situated in municipal area of Ujjain and same was purchased by the ancestors of the plaintiff from Chhotelal Prabhulal as agricultural lands. The Collector vide order dated 2.12.1970 had recorded the finding that the plaintiffs are owners of the said lands and later on the same was mutated in their name. The plaintiffs had sold the same on 14.10.1985 to Lokmanya Tilak Sanskratik Nyas, Neelganga, Ujjain, hence there is no dispute about the ownership of the said lands in the suit. Hence, the plaintiff claimed the relief of declaration of title for Category 1 lands and Category 3 i.e. suit lands only. The various survey numbers of suit lands are mention in memo of the plaint

5. The cause of action for this exordium arose on 1.9.1961 when Tehsildar, Ujjain disputed the ownership of the plaintiff over the 'Suit lands' by treating them as an encroacher and issued notice u/s. 248 of M.P. Lands Revenue Code (MPLRC). Later on, the said notice was cancelled and in Case No.2/61/59 another notice dated 23.6.1961 was issued u/s. 181 and 172 of MPLRC read with Section 39 of The Madhya Bharat Zamindari Abolition Act, 1951(13 of 1951) (hereinafter, for short, Zamindari Abolition Act). The enquiry was initiated before the Tehsildar and meanwhile, Late Abdul Hussain submitted two applications dated 4.8.1963 and 26.12.1963 respectively before the Collector for allotment of Category 1 to 3 lands on fresh Special lease. The Collector, Ujjain vide order dated 2.12.1070 recorded the findings that the Category 2 lands was purchased by Abdul Hussain hence he is entitled for mutation in his name. In respect of 'suit lands', the Collector held that after abolition of 'Zamindari' system, after Zamindari