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1969 Supreme(Online)(All) 18

ALLAHABAD HIGH COURT
Satish Chandra, J.
Chooramani G. S. and Others v. State
Civil Misc. Writ No. 3043 of 1966



A law that extinguishes leasehold rights without providing constitutionally adequate compensation violates rights under Article 31-A.

Headnote:(A) U.P. Government Estates Thekedari Abolition Act, 1958 - Sections 1, 3, 4, and 31-A - Constitutional validity challenged - The Act improperly extinguished tenant rights without fair compensation, violating Article 31-A - The Act is deemed void after 20th June, 1964 - Notification dated June 30, 1966, invalidated - Petitioner invested considerable resources for land development, alleged enforcement contradicts legislative intent to protect cultivators. (Paras 4-41)

(B) Constitutional Law - Right to property - Adequate compensation must be provided for property acquisition under agrarian reform laws as prescribed by law - The Act did not enforce such compensation, thus contravening constitutional provisions. (Paras 40-41)

1. This and the two companion writ petitions challenge the constitutional validity of the U. P. Government Estates Thekedari Abolition Act , 1958, and seek to quash the notification dated June 30, 1966, issued by the State Government under S.3 of that Act, determining the lease held by the petitioners.

2. The material and the relevant facts and the questions which arise for determination are common in all the three writ petitions. They can be disposed of by a common judgment. The earliest of them, namely, G. S. Chooramani v. State of Uttar Pradesh, (Civil Misc. Writ No. 3043 of 1966) is treated as the leading case.

3. The Government of Uttar Pradesh owned many villages in the area known as Tarai and Bhabar in the district of Naini Tal. The Tarai and Bhabar area was undeveloped, covered with dense forest and infested with wild animals. The State Government was anxious to develop this area by settling tenants thereon and introducing stable cultivation. It offered attractive terms and facilities to persons who were prepared to invest capital and effect improvement in it. The Government of Uttar Pradesh agreed to lease plots of land totalling 1188.82 acres situate in two villages Bangawam and Radhulia in favour of the petitioner's father Dr. Rameshwar Singh. The Deputy Commissioner, Naini Tal, on behalf of the Government, executed a deed of lease on 12th February, 1951 of the aforesaid plots of land in favour of Dr. Rameshwar Singh for a term of 30 years beginning with 1st July, 1950, with option of renewal for further terms of 30 years, provided that such renewed terms together with the original term of the lease shall not exceed 90 years in the aggregate. The deed laid down the principles upon which the rent payable was to be calculated per bigha, as also the various rights and liabilities inter se between the parties. The lease was governed by the Government Grants Act XV of 1895. The petitioners allege that actual possession was delivered over 1107 acres only. An area of 270 acres was utilised for planting groves of various kinds of trees. The rest of the land was put to cultivation. All this was done after clearing the land of the forest and developing it so as to make it cultivable. The petitioners installed several tubewells, inducted labourers to the farm, constructed pucca buildings and sheds for them and animals, bought tractors, tools and other instruments for mechanised farming. The petitioners allege that they spent over Rs. 5,00,000.00 in building up the farm on the leased land.

4. On 20th January, 1959 the U. P. Government Estates Thekedari Abolition Act , 1958, (U. P. Act No. 1 of 1959) (hereinafter called the Thekedari Abolition Act) came into force. By a notification dated 17th June, 1965 the State Government extended the Thekedari Abolition Act to the district of Naini Tal. On 30th June 1966 the State Government issued the impugned notification in exercise of the powers conferred by S.3 of the Thekedari Abolition Act determining all leases in respect of Government Estates in 35 villages including villages Bangawam and Radhulia, in the Tarai and Bhabar area.
As a result the petitioners' lease stood determined prematurely, the Collector, Naini Tal issued a notice to the petitioners intimating them that the lease in their favour having come to an end, he will take possession of the land covered by the lease with effect from 1-7-1966. This action of the respondents led the petitioners to this Court under Art. 226 of the Constitution. The constitutional validity of the Thekedari Abolition Act and the validity of the impugned notification was challenged in the petition on many grounds, but, at the hearing the learned counsel pressed the following points : -
(i) That the Act applies to thekedari leases alone and is not attracted to cultivatory leases; in any event, applying the Act without introducing land reforms was a mala fide exercise of power.
(ii) The Act in substance acquires the lessees' rights, title and intere






















































































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