Supreme Court of India (Full Bench (FB)- Three Judge)

Appeal (Civil), 3778-3780 of 2016, Judgment Date: Apr 12, 2016

                                                                  REPORTABLE

                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION

                     CIVIL APPEAL NOS. 3778-3780 OF 2016
               (Arising out of SLP(C) Nos. 8038-8040 of 2011)



KEDAR MISHRA                                                …Appellant          



                                   VERSUS

THE STATE OF BIHAR & ORS.                               ….Respondents    
                                                                           

                               J U D G M E N T


 R. BANUMATHI, J.


   Leave granted.

2.          These appeals arise out of a common  judgment  and  order  dated
15.12.2010 passed by the High Court of Judicature at Patna  dismissing  Writ
Petitions being C.W.J.C. Nos.10339, 10355 and 10356 of 1999  on  the  ground
that there has been no sufficient compliance of the requirement of  Rule  19
of Bihar Land Reforms (Fixation of Ceiling Area and Acquisition  of  Surplus
Land) Rules 1963 and Form L.C. 13 of the Rules and  declining  to  interfere
with the order passed by the Additional  Member,   Board  of  Revenue  dated
31.08.1999 and thereby negativing the appellant’s claim  of  right  of  pre-
emption.

3.       Lands involved in all the three cases belonged to one  Ram  Kailash
Mishra, who died leaving behind his  three  sons,  namely,  Ramadhar  Mishra
(Vendor), Kedar Mishra (appellant) and Ayodhya.  The genealogical  table  of
Ram Kailash Mishra is as under:-
                                Ram Kailash Mishra



Ramadhar          Mishra                              Kedar           Mishra
Ayodhya Mishra
        (Vendor)                                                 (Appellant)




          Kalawati Devi      Dharamwati Devi        Sunita Devi     Radhika
Devi      Kaushal Kishore Mishra   Brij Krishore Mishra
             R-12               R-13                          R-14
 R-15                     (R-16)                  = Bandana Mishra
                                                         (R-17)


4.        Ramadhar Mishra was the vendor and Kedar Mishra the appellant/pre-
emptor claimed right of pre-emption both as adjoining land owner as well  as
co-sharer of the land sold. On 06.02.1988, three sale  deeds  were  executed
by late Ramadhar Mishra out of which sale deed with respect  to  40  decimal
of land out of Chak Plot No.105 having  a  total  area  of  1.20  acres  was
executed in favour of Kamala Devi wife  of  Rang  Bahadur  Singh  and  Janak
Dulari Devi wife of Bir Bahadur Singh.  With respect to 1/3rd share  out  of
Chak Plot No.128, 94 decimal of land out of total area of  2.82  acres  sold
by late Ramadhar Mishra in favour of Bir  Bahadur  Singh  and  Rang  Bahadur
Singh by two different sale deeds respectively  47  decimal  each.  Claiming
right of pre- emption and impugning the above three  sale  deeds,  appellant
filed three pre-emption cases in Pre-emption Case Nos. 14  of  1992,  12  of
1992 and 13 of 1992 respectively. The Deputy Collector Land  Reforms  (DCLR)
by common order dated 10.07.1995 allowed all  the  three  pre-emption  cases
observing that the pre-emptor/appellant is an adjoining raiyat  and  also  a
co-sharer of the disputed land. The said order of DCLR dated 10.07.1995  was
challenged in pre-emption Appeal Nos. 8 of 1995, 9 of 1995 and 10  of  1995.
The aforesaid three  appeals  were  allowed  by  the  Additional  Collector,
Rohtas at Sasaram by a common  order  dated  16.04.1996  setting  aside  the
order of DCLR.  Being aggrieved by the order dated 16.04.1996 passed by  the
Additional Collector, Rohtas at Sasaram, the  appellant  filed  revision  in
Revision Case Nos.174, 175 and 176 of 1996 before the Board of  Revenue  and
all  the  three  revision  cases  were  allowed  by  a  common  order  dated
19.03.1997  setting  aside  the  order  of  the  appellate  authority.   The
abovesaid common order of  the  Board  of  Revenue  was  challenged  by  the
vendees before the High Court in C.W.J.C. Nos. 8217 of 1997,  8237  of  1997
and 7039 of 1997.  All the three  writ  petitions  were  disposed  of  by  a
common order dated 24.09.1998 and the matter was remitted back to the  Board
of Revenue for deciding the matter afresh. While so  remitting  the  matter,
the High Court by its order dated 24.09.1998 directed  that  the  revisional
authority shall determine the issue as to whether  appellant/pre-emptor  had
deposited the consideration money along with ten percent  amount  in  favour
of the Collector in accordance with law or not.
5.       Pursuant to the direction of the High Court, Revenue Case  Nos.174,
175 and 176 of 1996 were taken up and heard afresh by the Board of  Revenue,
Bihar.  The Additional Member, Board of Revenue vide order dated  31.08.1999
dismissed the revision petitions filed by the  appellant  holding  that  the
requisite money was not deposited in favour of the Collector  in  compliance
with Rule 19 Form L.C.13 and consequently, pre-emption applications  of  the
appellant stood  dismissed.   Being  aggrieved,  the  appellant  filed  writ
petitions before the High Court in C.W.J.C. Nos.10339, 10355  and  10356  of
1999.  All the three writ petitions came to be  dismissed  by  the  impugned
order holding that the deposit for filing of pre-emption cases was  made  in
favour of the  District  Collector  under  the  head  '0029  L.R.'  and  the
prescribed  head  is  '2029  Land  Revenue'  and  there  was  no  sufficient
compliance of Rule 19 and Form L.C. 13 of the rules.  Being  aggrieved,  the
appellant has preferred these appeals.
6.       We have heard learned  counsel  for  the  parties  at  considerable
length.  Learned counsel for the  appellant  contended  that  the  requisite
amount of money for filing the pre-emption cases was  deposited  under  head
'0029 L.R.' through treasury and there has  been  sufficient  compliance  of
Rule 19 Form L.C. 13 and hence the findings of the  High  Court  that  there
was  no  sufficient  compliance  of  Rule  19  and  Form  L.C.  13  is   not
sustainable.  It was submitted that the requirements of  Rule  19  and  Form
L.C.13 of the rules are directory in nature and even assuming that if  there
was no compliance of the said rules, appellant’s substantive right  of  pre-
emption cannot be defeated.
7.       Per contra, learned counsel for the respondents submitted that  the
treasury challan under head '0029  L.R.'  could  not  be  withdrawn  by  the
Collector under the Act in the pre-emption proceedings to make  it  over  to
the concerned person and the error in the challan goes at the  root  of  the
matter and the Board of Revenue and the High  Court  rightly  dismissed  the
pre-emption cases of the appellant.
8.       We have carefully considered the  rival  contentions,  perused  the
impugned order  as  well  as  the  order  of  the  Board  of  Revenue  dated
31.08.1999 and other material on record.
9.       It is relevant  to  quote  Section  16(3)  of  Bihar  Land  Reforms
(Fixation of Ceiling Area and Acquisition of Surplus land) Act, 1961  (Bihar
Act No.12 of 1962) which reads as under:-
Section 16: Restriction on future acquisition by transfer etc:-
           xxx xxx xxx
           xxx xxx xxx
“(3)(i) When any transfer of land is made after  the  commencement  of  this
Act to any person other than a co-sharer or a raiyat of adjoining land,  any
co-sharer of the transferor or any raiyat holding land  adjoining  the  land
transfered,  shall  be  entitled,  within  three  months  of  the  date   of
registration of the document of transfer, to make an application before  the
Collector in the prescribed manner for the transfer of the land  to  him  on
the terms and conditions contained in the said deed:
Provided that no such application shall  be  entertained  by  the  Collector
unless the purchase money together with a sum equal to ten  percent  thereof
is deposited in the prescribed manner within the said period.

(ii)   On such deposit being made the  co-sharer  or  the  raiyat  shall  be
entitled to be put in possession of the land irrespective of the  fact  that
the application under clause (i) is pending for decision:
Provided that where the  application  is  rejected,  the  co-sharer  or  the
raiyat, as the case may be, shall be evicted, from the land  and  possession
thereof shall be restored to the transferee  and  the  transferee  shall  be
entitled to be paid  a sum equal to ten percent of the  purchase  money  out
of the deposit made under clause(i).

(iii)  If the application is  allowed,  the  Collector  shall  by  an  order
direct the transferee to convey the land  in  favour  of  the  applicant  by
executing and registering a document of  transfer  within  a  period  to  be
specified in the order and, if he neglects or refuses  to  comply  with  the
direction, the procedure prescribed in Order XXI, Rule 34  of  the  Code  of
Civil Procedure, 1908 (V of 1908), shall be, so far as may be followed.

The revision against  the  order  passed  by  the  Collector  or  Additional
Collector under Section 16(3) of the  Act  will  be  before  the  Divisional
Commissioner who after hearing the parties shall pass  orders  in  the  case
filed before him. (Inserted by Act 10 of 2006)”

The object of Section 16(3) of the Act is to secure consolidation by  giving
the right of re-conveyance to a co-sharer or a raiyat of an  adjoining  area
so that the land in question can be used in  the  most  advantageous  manner
and also to  prevent  fragmentation  of  the  land.   In  terms  of  Section
16(3)(i), no pre-emption application shall be entertained by  the  Collector
unless the purchase money together with a sum equal to ten  percent  thereof
is deposited by the person claiming right of pre-emption in  the  prescribed
manner within the said period.
10.      Rule 19 deals with the application by a co-sharer or  a  raiyat  of
adjoining land for transfer of land under Section 16(3).  Rule 19  reads  as
under:-
“19. Application by co-sharer or a raiyat of adjoining land for transfer  of
land under Section 16(3).-(1)  Application  by  a  co-sharer  or  raiyat  of
adjoining land for transfer of land under Section 16(3)  shall  be  in  Form
L.C.13 and the purchase money together with  a  sum  equal  to  ten  percent
thereof shall be deposited in  the  Treasury/Sub-treasury  of  the  district
within which the land transferred is situated.

(2)  A copy of Challan, showing deposit of the  amount  under  sub-rule  (1)
together with a copy of the registered deed, shall be filed along  with  the
application in which also a statement to this effect shall be made.

(3) A copy of the said application shall also be sent simultaneously by  the
applicant to the transferor and  the  transferee  by  registered  post  with
acknowledgment due.

(4)  The Collector shall issue a notice to the  transferor,  the  transferee
and the applicant to appear before him on a date  to  be  specified  in  the
notice and after giving the parties concerned a  reasonable  opportunity  of
showing cause, if any, and of being heard, shall by  an  order  in  writing,
either allow the application in accordance with clause (iii) of  sub-section
(3) of Section 16, or reject it.

(5)  If the application is allowed under item (iii) of  sub-section  (3)  of
Section 16 and the transferee is directed by the Collector by any  order  to
convey the land in favour of the applicant by executing  and  registering  a
document  of  transfer,  the  applicant  shall  be  required  to   pay   the
registration fee.

(6) Where the application is allowed and the transferee conveys the land  in
favour of the applicant under Section 16(3)(iii), the  transferee  shall  be
allowed to withdraw the money deposited by the applicant.”

11.      Form L.C. 13 is a form of application by a co-sharer  or  a  raiyat
of adjoining land for transfer of land to him under Section 16(3)(i) of  the
Act (12 of 1962). As per Form L.C.  13  para  (2),  the  applicant  claiming
right of pre-emption has to enclose copy  of  District/sub-treasury/treasury
challan showing that he has  deposited  the  amount  equal  to  ten  percent
thereof to the credit of the Collector of the area concerned under the Act.
12.      In compliance of Section 16(3)(i) and Rule 19, for  all  the  three
pre-emption cases, the appellant  has  deposited  ten  percent  of  purchase
money as under:-
Pre-Emption            Treasury Challan           Amount deposited
Case No.
12/91-92               No. 26 dated 8.7.91        Rs.10,000/- + Rs.1,000/-
13/91-92               No. 25 dated 8.7.91        Rs.10,000/- + Rs.1,000/-
14/91-92               No. 27 dated 8.7.91        Rs.10,000/- + Rs.1,000/-

Admittedly, as noted above, the appellant has deposited ten percent  of  the
purchase money (Annexure  P2-series).   Copy  of  the  challan  produced  on
record shows that details like name, designation, address of the person  who
deposited the money as well as the reason for such deposit are  required  to
be filled in by the concerned person; while other details are to  be  filled
in by the Treasury office.  In the  column  to  be  filled  in  by  ‘Account
Officer who would collect the amount’, it was stated as ‘0029 L.R.’  whereas
the prescribed head for the  said  deposits  is  stated  to  be  ‘2029  Land
Revenue’.  In the challan, above  the  column  earmarked  for  the  ‘Account
Officer  who  would  collect  the  amount’  in  the  preceding  row,  it  is
stipulated that it is ‘to be filled up by the  officer  or  treasury’.   The
High Court as well as  the  Board  of  Revenue  held  that  money  has  been
deposited under the head '0029 L.R.' in the name of District  Collector  and
since the amount was not deposited under  appropriate  head,  there  was  no
sufficient compliance of Rule 19 Form L.C.  13.   The  High  Court  observed
that since the money  has  been  deposited  in  the  name  of  the  District
Collector, in case, the  pre-emption  applications  are  allowed,  then  the
transferee will have to face a lot of  legal  hassle  in  getting  back  the
entire money  deposited  by  the  pre-emptor  and  that  it  cannot  be  the
legislative intent.  The High Court was of the view that there has  been  no
sufficient compliance of the requirement of Rule 19 and Form L.C. 13 of  the
rules and in our view, the High Court  erred  in  ignoring  the  details  of
various columns in the challan.
13.      In our view, the High Court was not right  in  holding  that  there
was no sufficient compliance of the requirement of Rule  19  and  Form  L.C.
13.  There is no denying the fact  that  the  appellant  has  deposited  ten
percent of the purchase money as required  under  Section  16(3)(i)  of  the
Act.   As  against  the  column  ‘Account  Officer  who  would  collect  the
amount’, mentioning a wrong head cannot be a  ground  to  dismiss  the  pre-
emption applications of the  appellant  at  the  threshold.   The  appellant
being a raiyat cannot be expected to know the correct head under  which  the
amount is to be deposited and a pedantic approach  should  not  be  adopted.
To non-suit the appellant on the ground of a technical  objection  that  the
amount has not been  deposited  under  the  head  '2029  Land  Revenue'  but
deposited under the head '0029 L.R.', would defeat the benevolent object  of
Section 16(3) of the Act. Though the amount  was  deposited  under  a  wrong
head, the fact remains that the amount has been deposited to the  credit  of
the treasury.  The appellant ought to have  been  given  an  opportunity  to
pursue his case of right to pre-emption, having  regard  to  the  fact  that
being a raiyat, his legal literacy rate may  be  low.   A  party  cannot  be
denied right of adjudication of the matter on merits merely because of  some
inadvertent mistake.  In our view, the  High  Court  was  not  justified  in
viewing the treasury challan with a  pedantic  approach  and  was  also  not
right in affirming the order passed by the Board of Revenue.
14.      In the result, the impugned order of the High Court  is  set  aside
and the matter  is  remitted  back  to  the  Board  of  Revenue,   Bihar  to
reconsider the Revision Case Nos.174, 175 and 176 of 1996 afresh  on  merits
after affording sufficient opportunity of hearing to both the  parties.  The
appeals are accordingly  allowed.   We  make  it  clear  that  we  have  not
expressed any opinion on the merits of the  matter.   The  parties  to  bear
their respective costs.


                                                 …….…...................CJI.
                                                              (T.S. THAKUR)


                                               ……..…......................J.
                                                             (R. BANUMATHI)


                                                 ………….....................J.
                                                         (UDAY UMESH LALIT)
New Delhi;
April 12, 2016