IN THE HIGH COURT OF MADHYA PRADESH (JABALPUR BENCH)
VISHAL DHAGAT, J.
Mohbe Infrastructure - Appellant
Versus
State of M.P. and Ors. - Respondents
W.P. No. 3730 of 2021
Decided On : 03-03-2021
Land Revenue Code - Scheduled Tribe - Section 165(6) - Real Estate Project - Betul Pride - M.P. Land Revenue Code
Fact of the Case:
The petitioner, a partnership firm, challenged an order rejecting permission to mortgage land for a real estate project due to the land belonging to a Scheduled Tribe in a notified scheduled area.
Finding of the Court:
The court found that the provisions of Section 165(6) of M.P. Land Revenue Code applied to the case, and permission of the Collector was required for transferring land from a Scheduled Tribe to a non-tribal in a notified scheduled area.
Issues: The main issue was whether the petitioner's land, located in a notified scheduled area and belonging to a Scheduled Tribe, could be mortgaged without the permission of the Collector.
Ratio Decidendi: The court held that in notified scheduled areas, land belonging to a Scheduled Tribe cannot be transferred to a non-tribal without the permission of the Collector, as per Section 165(6) of M.P. Land Revenue Code.
Final Decision: The court directed the respondents to act in accordance with the provisions of Section 165(6) and 165(6-a) of M.P. Land Revenue Code, and disposed off the writ petition.
ORDER :
Vishal Dhagat, J.
1. Petitioner has filed the present writ petition challenging order dated 25.11.2020 contained in Annexure-P/15.
2. It is submitted by counsel appearing for petitioner that petitioner is a partnership firm which had purchased land bearing Khasra No. 102/1 and Khasra No. 102/2, admeasuring total 1.475 hectares. Petitioner firm developed Real Estate Project 'Betul Pride' on a part of said land. All requisite permissions were obtained. It is submitted that subsequent purchasers were Scheduled Castes and were granted approval in legal search report of Canara Bank. Respondent No. 3 i.e. State Bank of India expressed inability to sanction loan on the project as land which is sought to be mortgaged belongs to purchaser who is from Scheduled Tribe category. Bank expressed that permission of Collector was required under relevant provisions of M.P. Land Revenue Code. When subsequent purchaser approached Collector for getting permission under Section 165(6) of M.P. Land Revenue Code, the same was rejected on the ground that there is ban on transfer including creation of mortgage. It is submitted that Collector ignored the recommendation of S.D.O. as well as Patwari to grant permission.
3. Perused the order dated 25.11.2020 contained in Annexure-P/15.
4. An application was filed before Collector seeking direction that provision of Section 165(6) of M.P. Land Revenue Code is not attracted in case of project under RERA and diverted land accordingly bank may not ask for Collector's permission under Section 165(6) of M.P. Land Revenue Code for mortgaging the land. Counsel for petitioner relied on the judgment dated 02.11.1972 passed by this Court in M.P. No. 535/1971 (Ail Das Vs. Board of Revenue, Madhya Pradesh and others) and order dated 02.01.2013 passed in W.P. No. 2608/2012 (Kamal Singh Narre Vs. State of M.P. and others). Collector has wrongly dismissed the application on the ground that land in question is located in notified scheduled area i.e. Batama, Betul. Notification is issued by State Government on 21.02.1977 by which, Betul Tehsil area was notified to be Scheduled Tribe predominant area. Collector wrongly held that there is complete ban on transfer of land from Scheduled Tribe to a Non-scheduled Tribe person and, therefore, Collector does not have jurisdiction to grant permission and no direction can be given to bank because it is province of bank to decide what documents are required for loan.
5. Counsel appearing for respondent/State opposed the prayer of petitioner. It is submitted by him that provisions of Section 165(6) of M.P. Land Revenue Code is attracted in the case. As per said provisions, no land situated in notified scheduled area predominantly inhabited by aboriginal tribes be transferred either by way of sale or otherwise in consequence of transaction of loan to a person not belonging to such tribe. It is submitted by him that there is no error in order passed by Collector. He relied on judgment passed in W.A. No. 431/2005 dated 19.01.2016.
6. Heard the counsel for petitioner as well as respondents/State.
7. Case of Ail Das and Kamal Singh Narre (supra) relied by petitioner are distinguishable. In Ail Das (supra) land was located in urban area and in case of Kamal Singh Narre (supra) condition imposed to develop colony was under challenge. Collector rightly held said cases are not applicable in present case.
8. It is clear from perusal of Section 165(6)(i) of M.P. Land Revenue Code that transaction of land by Bhumiswami belonging to a Scheduled Tribe which is located in the area notified by the State Government to be a scheduled area inhabited by predominantly aboriginal tribe cannot be transferred to a non-scheduled tribe by way of sale or otherwise or in consequence of loan transaction. No power is given to Collector to grant permission to a Scheduled Tribe to transfer his land to non-tribal person in respect of land located in a notified scheduled area predominantly inhabited by aboriginal trib
The central legal point established in the judgment is that the new fact regarding the ownership of the disputed land by a person of Scheduled Tribe Community, and the resulting restriction on its tr....
A land transfer without Collector permission is invalid under statutory provisions, affirming the need for compliance with regulatory frameworks.
A decision by an authority exercising discretionary power under a statute must be arrived at by taking into account the relevant considerations and eschewing the irrelevant considerations, in the abs....
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