1. Challenge to an exemption certificate granted under Section 88-B of the Bombay Tenancy and Agricultural Lands Act, 1948, regarding appropriation of trust land income. (Para 3 , 4 )
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1995 Supreme(SC) 407
SUPREME COURT OF INDIA
M.N.Venkatachaliah : Sujata V.Manohar
Laxmibai S.Patil
Versus
Badashah Sultan Mutwali
Case No. : 380 of 1984
Date of Decision : 3/22/95
Advocates Appeared: Ganpule V.N. : Joshi V.B. : Kumar E.R. : Lal A.B. : Lalit U.R. : Lalit U.U. : Parekh P.H.
Important Points
Under Section 88-B of the Bombay Tenancy and Agricultural Lands Act, 1948, the requirement that the 'entire income of such lands' be appropriated for the trust's purposes applies only to the specific lands for which the exemption certificate is sought, not all lands owned by the trust.
Subject
Land Law - Tenancy and Agricultural Lands
Act Referred
BOMBAY TENANCY AND AGRICULTURAL LANDS ACT: S.88(b)(1)(b), S.52(1)
BOMBAY TENANCY AND AGRICULTURAL LANDS RULES: R.52(1)
BOMBAY TENANCY AND AGRICULTURAL LANDS RULES: R.52(1)
Headnote
Bombay Tenancy and Agricultural Lands Act, 1948 - Section 88-B- Challenged the validity of the certificate – Tenant – Condo nation of delay - Respondent is Managing Trustee of Public Trust, Kolhapur. The appellants were tenants of some of the lands of that Trust under the BT & AL Act - Respondent made an application under Rule 52(1 of the Bombay Tenancy and Agricultural Lands Rules, 1956 before the District Deputy Collector Division, Kolhapur seeking grant of an exemption certificate under Section 88-B of Trust in respect of its lands on which the appellants were the tenants - That Collector on an enquiry held under Ss. of Section 88-B of the BT & AL Act, being satisfied that Trust was an institution for public religious worship registered under the Bombay Public Trusts Act, 1950 – Held, IT was not disputed before us that Collector who held the inquiry as required by Ss. of Section 88-B of the BT & AL Act issued the certificate of exemption in of the Trust in respect of a few of its lands of which the appellants were the tenants, on being satisfied that the Trust is registered under the Bombay Public Trusts Act, 1950 and the income of such lands had been appropriated for the purposes of such trust - What was argued on behalf of the appellants was that condition (ii) in the above proviso required the Trust to establish that the entire income of all its tenanted lands was appropriated for its purposes for obtaining the grant of a certificate of exemption under Section 88-B of the BT & AL Act - On the other hand, it was argued for the respondent that condition above proviso required Trust to establish that the entire income of merely the lands for which exemption certificate was sought for was being appropriated for the purposes of trust for obtaining the exemption certificate. As seen from the provision in Section 88-B BT & AL Act exemption certificate could be obtained by a trust in respect of its lands in occupation of tenants as provided for therein - Object of obtaining such exemption, if we have regard to the scheme of the provision, is to allow the Trust to retain the income of its lands, even where such lands are given to tenants for cultivation. Thus, if the object of the provision is to save the income of the lands of the Trust for appropriating for purposes of this Trust, we are unable to see as to why the Trust should establish that the entire income derived by it from lands other than the lands in respect of which it seeks exemption certificate, was being appropriated for the Trust - Entire income of such lands required to be shown to have been appropriated for purposes of the Trust under condition (ii) of the proviso, as seen there from, is confined to the income derived from such lands for which exemption certificate is sought for by the Trust and not its other lands, for to hold that the Trust when applies for exemption certificate in respect of a few of its lands is required to establish for satisfying condition (ii) of the proviso that the entire income derived from all its other lands, would amount to asking the Trust to establish something which the Legislature could not have intended having regard to the fact that such requirement could only be an unwarranted burden placed on the Trust with no genuine purpose to be served by it - Appeal dismissed
Legal Category Hierarchy
Advocates:
A.B.LAL, E.R.Kumar, P.H.Parekh, U.R.Lalit, U.U.Lalit, V.B.JOSHI, V.N.GANPULE
A.B.LAL, E.R.Kumar, P.H.Parekh, U.R.Lalit, U.U.Lalit, V.B.JOSHI, V.N.GANPULE
Table of Contents
2. Whether the requirement for income appropriation under Section 88-B applies to all lands held by a trust or only to the specific lands seeking exemption. (Para 7 )
3. Requiring a trust to prove appropriation of income from all its lands to obtain exemption for a few would be an unwarranted burden without genuine purpose. (Para 7 )
4. Exemption under Section 88-B requires appropriation of the entire income derivable only from the specific lands for which the exemption certificate is sought. (Para 8 )
5. Appeal dismissed. (Para 9 )
6. Does a trust seeking an exemption certificate under Section 88-B of the BT & AL Act need to prove that income from all its lands is appropriated for trust purposes?
No. The trust only needs to establish that the entire income derivable from the specific lands for which the exemption certificate is sought is appropriated for the purposes of the trust. (Para 7 , 8 )
7. What is the objective of the exemption provision under Section 88-B of the BT & AL Act?
The object is to allow a trust to retain the income of its lands for appropriation toward trust purposes, even when such lands are given to tenants for cultivation. (Para 7 )
8. What are the conditions for a trust to obtain an exemption certificate under Section 88-B of the BT & AL Act?
The trust must be registered under the Bombay Public Trusts Act, 1950, and the entire income of the lands for which the exemption is sought must be appropriated for the trust's purposes. (Para 3 , 6 )
(1) SUBSTITUTION application is allowed.
(2) WE have heard learned counsel for the parties. The short question which arises for our consideration in this appeal relates to requirement of condition (ii) of the proviso to clause (b) of Ss. (1 of Section 88-B of the Bombay Tenancy and Agricultural Lands Act, 1948 - "the BT & AL Act".
(3) RESPONDENT is the Managing Trustee of the Hajarat Pir, Babujmal, Deosthan Public Trust, Kolhapur. The appellants were tenants of some of the lands of that Trust under the BT & AL Act. The respondent made an application under Rule 52(1 of the Bombay Tenancy and Agricultural Lands Rules, 1956 before the District Deputy Collector, Karvir Division, Kolhapur seeking grant of an exemption certificate under Section 88-B of the BT & AL Act in favour of the Trust in respect of its lands on which the appellants were the tenants. That Collector on an enquiry held under Ss. (2 of Section 88-B of the BT & AL Act, being satisfied that the Trust was an institution for public religious worship registered under the Bombay Public Trusts Act, 1950 as required bclause (i) of the proviso to Ss. (1 of Section 88-B of the BT & AL Act and the entire income from the lands for which exemption certificate was sought was appropriated for the purpose of the Trust as required by clause (ii) of the proviso to Ss. (1 of Section 88-B thereof, granted the certificate of exemption sought for, on 27/5/1963.
(4) THE appellants challenged the validity of the certificate so granted, by filing a revision petition in that behalf before the Maharashtra Revenue tribunal. Kolhapur - "the tribunal". The tribunal taking the view that the exemption certificate should not have been granted by the Collector when it was not shown on behalf of the Trust that the entire income of all lands of the Trust had been appropriated for the purpose of the Trust, as was required by condition (ii) of the proviso to clause (b) of Ss. (1 of Section 88-B of the BT & AL Act, made an order allowing that revision petition. The respondent questioned the correctness of that order of the tribunal by filing Special Civil Application No. 3186 of 1978 before the High court of Bombay. In the meantime, when in one of the cases, the Bombay High court held that the tribunal had no jurisdiction to entertain a revision petition against grant of certificate of exemption under Section 88-B of the BT & AL Act, the appellants challenged the validity of the certificate of exemption granted by the Collector in favour of the Trust by filing Writ Petition No. 3771 of 1981. The High court by its judgment dated 7/11/1983 while allowed the Special Civil Application No. 3186 of 1978 of the respondent, dismissed Writ Petition No. 3771 of 1981 of the appellants. It is that order of the High court which has been impugned by the appellants in this appeal by special leave.
(5) AS the arguments of learned counsel for the parties in the appeal were confined to the requirement of condition (ii) of the proviso to clause (b) of sub-section (1 of Section 88-B of the BT & AL Act, their sustainability calls to be examined.
(6) SECTION 88-B of the BT & AL Act, insofar as it becomes necessary to deal with the said arguments, reads thus:
"88-B. (1 Nothing in the foregoing provisions except Sections 3, 4-B, 8, 9, 9-A, 9-B, 9-C, 10, 10-A, 1 1, 13 and 27 and the provisions of Ch. VI and VIII in so far as the provisions of the said Ch. are applicable to any of the matters referred to in the S. mentioned above, shall apply (a)* * * (b) to lands which are the property of a trust for an educational purpose, a hospital, Panjarapole, Gaushala or an institution for public religious worship: Provided that- (i) such trust is or is deemed to be registered under the Bombay Public Trusts Act, 1950, and (ii) the entire income of such lands is appropriated for the purposes of such trust; .... (2 For the purposes of this section, a certificate granted by the Collector, after holding an
