{"id":127343,"date":"1995-11-01T00:00:00","date_gmt":"1995-10-31T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/state-of-maharashtra-vs-babu-govind-gavate-etc-on-1-november-1995"},"modified":"2016-04-12T15:55:51","modified_gmt":"2016-04-12T10:25:51","slug":"state-of-maharashtra-vs-babu-govind-gavate-etc-on-1-november-1995","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/state-of-maharashtra-vs-babu-govind-gavate-etc-on-1-november-1995","title":{"rendered":"State Of Maharashtra vs Babu Govind Gavate Etc on 1 November, 1995"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">State Of Maharashtra vs Babu Govind Gavate Etc on 1 November, 1995<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1996 AIR  904, \t\t  1996 SCC  (1) 305<\/div>\n<div class=\"doc_author\">Author: K Ramaswamy<\/div>\n<div class=\"doc_bench\">Bench: Ramaswamy, K.<\/div>\n<pre>           PETITIONER:\nSTATE OF MAHARASHTRA\n\n\tVs.\n\nRESPONDENT:\nBABU GOVIND GAVATE ETC.\n\nDATE OF JUDGMENT01\/11\/1995\n\nBENCH:\nRAMASWAMY, K.\nBENCH:\nRAMASWAMY, K.\nKIRPAL B.N. (J)\n\nCITATION:\n 1996 AIR  904\t\t  1996 SCC  (1) 305\n 1995 SCALE  (6)447\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t\t\t  W I T H<br \/>\n\t       CIVIL APPEAL NO.10421 OF 1995<br \/>\n\t (Arising out of SLP (C) No. 3746 of 1979)<br \/>\n\t\t\t O R D E R<br \/>\n\t\t    C.A. NO.3009 OF 1983<br \/>\n     The facts\tare very  brief. Notification  under Section<br \/>\n4(1) of\t the land  Acquisition Act,  1894 (for\tshort,\t`the<br \/>\nAct&#8217;), acquiring  land for  a  public  purpose,\t namely,  to<br \/>\nestablish Electricity  Sub-Station for the Maharashtra State<br \/>\nElectricity Board as published in the State Gazetle on April<br \/>\n19,  1966.   The  Land\tAcquisition  officer  in  his  award<br \/>\ndetermined  the\t compensation  at  Rs.5,000\/-  per  acre  in<br \/>\nrespect of  an extent of 7 acres 9 gunthas of land in Survey<br \/>\nNo.124-A situated  in Airavali\tVillage in Thane District of<br \/>\nState  of   Maharashtra,  but  deducted\t 1\/3rd\ttowards\t the<br \/>\ninterest of  the Government.  The respondent  had challenged<br \/>\nthe Government&#8217;s  power to  deduct 1\/3rd  compensation.\t The<br \/>\nappellate court\t confirmed the\tsame. On  appeal,  the\tHigh<br \/>\nCourt, while  increasing the  compensation to Rs.6,000\/- per<br \/>\nacre, had  directed payment  of the deducted 1\/3rd amount to<br \/>\nthe respondent\tby its\tjudgment and  decree dated 10.9.1976<br \/>\nmade in F.A. No.574\/70. Thus this appeal by special leave.\n<\/p>\n<p>     Learned counsel  appearing for  the State has contended<br \/>\nthat the  Government in\t its circular  dated April  26, 1972<br \/>\nissued by  Revenue and Forests Department in Letter No. LON-<br \/>\n4767-H, directed  deduction of\t1\/3rd of the market value of<br \/>\nthe  land  for\tthe  interest  in  such\t land  held  by\t the<br \/>\nGovernment and\tthat, therefore,  the  High  Court  was\t not<br \/>\njustified in  interfering with\tthe order. He also contended<br \/>\nthat Section 43 of the Bombay Tenancy and Agricultural lands<br \/>\nAct, 1948  (for\t short,\t `the  Tenancy\tAct&#8217;)  empowers\t the<br \/>\nCollector to grant sanction. It is also empowered thereunder<br \/>\nto fix consideration, as condition to alienate the land when<br \/>\nthe Collector  has the\tpower to  determine the compensation<br \/>\nwhen the  land was  acquired for  a public  purpose. We\t are<br \/>\nwholly\tunable\t to  appreciate\t  the  stand  taken  by\t the<br \/>\nGovernment. The object of the Tenancy Act, is to protect the<br \/>\n&#8220;rights of  the tiller\tof the\tsoil&#8221;, namely, the tenant or<br \/>\nwho later  became owner\t so as\tto remain  in possession and<br \/>\nenjoyment of the land as part of economic justice assured in<br \/>\nthe  preamble\tand  the   directive   principles   of\t the<br \/>\nConstitution. Under  the tenancy  Act the  tenant  has\tbeen<br \/>\ngiven right  to purchase  the lands from the erstwhile owner<br \/>\nas provided  in different sections of the said Act. Sections<br \/>\n43(1) and 43(1A) provide that :\n<\/p>\n<blockquote><p>     &#8220;43(1) No\tland or\t any interest therein<br \/>\n     purchased\tby  a  tenant  under  Section<br \/>\n     17(B), 32,\t 32F, 32-I,  32-O, 32U, 43-1D<br \/>\n     or 88E  or\t sold  to  any\tparson\tunder<br \/>\n     Section 32P  or 64\t shall be transferred<br \/>\n     or shall  be agreed  by an instrument in<br \/>\n     writing  to  be  transferred,  by\tsale,<br \/>\n     gift,  exchange,\tmortgage,  lease   or<br \/>\n     assignment,   without    the    previous<br \/>\n     sanction of  the Collector and except in<br \/>\n     consideration of  payment of such amount<br \/>\n     as the  State Government  may by general<br \/>\n     or special\t order determine; and no such<br \/>\n     land or  any interest  therein shall  be<br \/>\n     partitioned   without    the    previous<br \/>\n     sanction of the Collector.\n<\/p><\/blockquote>\n<blockquote><p>     (1A) The  sanction under sub-section (1)<br \/>\n     shall be  given by the Collector in such<br \/>\n     circumstances  and\t  subject   to\t such<br \/>\n     conditions, as  may be prescribed by the<br \/>\n     State Government.&#8221;\n<\/p><\/blockquote>\n<p>Other sub-sections  are not relevant for the purpose of this<br \/>\ncase. Hence omitted.\n<\/p>\n<p>     A reading thereof clearly indicates that Section 43 was<br \/>\nenacted to  protect the\t right, title  and interest  of\t the<br \/>\ntenant who  purchased the  property and became owner thereof<br \/>\nwith a view to see that he is not deprived of his ownership,<br \/>\nright to possession and enjoyment thereof as a tiller of the<br \/>\nsoil to\t perpetuate the\t object of  the Tenancy\t Act. As its<br \/>\nscheme previous\t sanction is  a condition  precedent for any<br \/>\ntransfer except\t when the  land\t is  being  mortgaged  to  a<br \/>\ncooperative bank  or a lending institution envisaged in sub-<br \/>\nsection (1AA) and the Explanation appended thereto amplifies<br \/>\nsuch institutions  so as  to enable  him to obtain loans for<br \/>\nimproving the  land for\t better cultivation  and to  augment<br \/>\neconomic empowerment. The consideration mentioned thereunder<br \/>\nwas also  to protect the tiller from exploitation, indigence<br \/>\nor compelling dire necessity to alienate the loans and under<br \/>\na fictitious  and colourable  transaction or  for inadequate<br \/>\nconsideration. That,   under no circumstance, gives power to<br \/>\nthe Government,\t when it  acquires the\tland exercising\t the<br \/>\npower of  eminent domain  to  deduct  any  amount  from\t the<br \/>\ncompensation payable  to the owner of the land as determined<br \/>\nunder Section 23(1) of the Act.\n<\/p>\n<p>     The sanction  required under  Section 43  is only\twhen<br \/>\nthere is a bilateral valid agreement between the owner and a<br \/>\nthird party  purchaser or  a lessee  or a  mortgagee etc. as<br \/>\nenvisaged under\t Section 43(1). But when the State exercises<br \/>\nits power  of eminent  domain and  compulsorily acquires the<br \/>\nland, the  question of\tsanction under\tSection 43  does not<br \/>\narise. Section\t23(2) of  the Act off sets the unwillingness<br \/>\non the\tpart of\t the owner paying time scheme. The question,<br \/>\ntherefore, is  whether the  Government under the aforestated<br \/>\nnotification  is   entitled  to\t  deduct  1\/3rd\t  from\t the<br \/>\ncompensation determined\t under Section\t23(1) of the Act. We<br \/>\nhave seen  the notification  and we are unable to accept the<br \/>\nvalidity  of  the  said\t notification.\tWhen  the  Collector<br \/>\nexercises the  power to\t grant sanction under Section 43(1),<br \/>\nhe does\t it as a statutory authority to protect right, title<br \/>\nand interest of the erstwhile tenant who subsequently became<br \/>\nthe owner  to see  that he  remains  to\t be  the  owner\t and<br \/>\ncontinues to be in possession and enjoyment of the same. But<br \/>\nthat condition\tto grant  sanction is  not headed  with\t any<br \/>\nright to  the Government to deduct 1\/3 when it exercises its<br \/>\npower of  element domain  for a\t public purpose.  The  owner<br \/>\nunder Section  23(1) is entitled to the full compensation of<br \/>\nthe market value prevailing as on the date of publication of<br \/>\nthe notification under Section 4(1). Therefore, the circular<br \/>\nrelied on  is clearly ultra vires of the power of Section 43<br \/>\nor any other power.\n<\/p>\n<p>     The appeal\t is accordingly\t dismissed and\tthe order of<br \/>\nthe High  Court is  sustained. Since  the respondent  is not<br \/>\nappearing, there is no order as to costs.\n<\/p>\n<p>C.A. NO.10421  \/95<br \/>\n@ SLP (C) NO.3746\/79<br \/>\n     Leave granted. The appeal dismissed. No costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India State Of Maharashtra vs Babu Govind Gavate Etc on 1 November, 1995 Equivalent citations: 1996 AIR 904, 1996 SCC (1) 305 Author: K Ramaswamy Bench: Ramaswamy, K. PETITIONER: STATE OF MAHARASHTRA Vs. RESPONDENT: BABU GOVIND GAVATE ETC. DATE OF JUDGMENT01\/11\/1995 BENCH: RAMASWAMY, K. BENCH: RAMASWAMY, K. KIRPAL B.N. (J) CITATION: 1996 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-127343","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>State Of Maharashtra vs Babu Govind Gavate Etc on 1 November, 1995 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/state-of-maharashtra-vs-babu-govind-gavate-etc-on-1-november-1995\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"State Of Maharashtra vs Babu Govind Gavate Etc on 1 November, 1995 - Free Judgements of Supreme Court &amp; 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