Land Law-Lecture-Notes
Land Law-Lecture-Notes
Land Law-Lecture-Notes
LAND LAWS
UNIT – I
HISTORICAL SKETCH OF LAND REFORMS/LAND LAWS
INTRODUCTION
Concept of Land:-
The term ‘land’ includes all physical elements in the wealth of a nation bestowed
by nature; such as climate, environment, fields, forests, minerals, mountains, lakes,
streams, seas, and animals.
Land comprises the physical environment, including climate, relief, soils,
hydrology and vegetation, to the extent that these influence potential for land use. It
includes the results of past and present human activity, e.g. reclamation from the sea,
vegetation clearance, and also adverse results, e.g. soil salinization.
Purely economic and social characteristics, however, are not included in the concept
of land; these form part of the economic and social context.
Kinds of Land: The different types of land are known as biomes. These are divided into
four classifications: desert, forest, grassland and tundra.
Land biomes are typically defined by the type of vegetation they possess, the types
of animals that inhabit them and their climate, such as rainfall and temperature.
Ownership and possession of land: The owner has unrestricted ownership of the property
in terms of disposition and unlimited ownership in terms of duration. Possession is a
continuous and exclusive exercise of claim, this is a limited concept. Through this, there is
absolute authority over the property
Meaning of Ownership
The relationship between a person and property and the right that’s vested in him is
referred to as ownership. The right to a property is the only thing that can be owned. To put
it another way, a thing cannot be owned but can have a right over it. Ownership, according
to Hebert, is a broad right in rem. It’s a collection of four rights:
1
CLC/AM/R/05
OWNERSHIP POSSESSION
It is an absolute right. It is an evidence of ownership.
It is a de facto exercise of fact. It is de jure recognition of a claim.
It is the guarantee of the law. It is the guarantee of the fact.
It is related to a right. It is related to a fact.
It includes possession. It does not include ownership.
It excludes interference. It excludes others except for the owner.
It is developed on possession. It is developed with civilisation.
It provides proprietary remedies. It provides possessory remedies.
Its transfer is too technical. Its transfer is less technical
Land Reforms in India and constitutional History:- It was only after independence that
serious efforts were made to introduce land reforms measures. They are as follows:
1. Abolition of intermediaries.
2. Tenancy reforms to regulate fair rent and provide security to tenure.
3. Ceilings on holdings and distribution of surplus land among the landlords.
4. Consolidation of holdings and prevention of their further fragmentation and
5. Development of cooperative farming
Pre Independence
1. Under the British Raj, the farmers did not have the ownership of the lands they
cultivated, the land lordship of the land lied with the Zamindars, Jagirdars etc.
2
CLC/AM/R/05
2. Several important issues confronted the government and stood as a challenge in front
of independent India.
a) Land was concentrated in the hands of a few and there was a proliferation of
intermediaries who had no vested interest in self-cultivation.
3. Leasing out land was a common practice.
a) The tenancy contracts were expropriative in nature and tenant exploitation was
almost everywhere.
b) Land records were in extremely bad shape giving rise to a mass of litigation.
c) One problem of agriculture was that the land was fragmented into very small parts
for commercial farming.
4. It resulted in inefficient use of soil, capital, and labour in the form of boundary lands
and boundary disputes.
Post-Independence
1. A committee, under the Chairmanship of J. C. Kumarappan was appointed to look into
the problem of land. The Kumarappa Committee's report recommended comprehensive
agrarian reform measures.
2. The Land Reforms of the independent India had four components:
a) The Abolition of the Intermediaries
b) Tenancy Reforms
c) Fixing Ceilings on Landholdings
d) Consolidation of Landholdings.
3. These were taken in phases because of the need to establish a political will for their
wider acceptance of these reforms.
EMINENT DOMAIN
Eminent domain land acquisition is the power of the government to take private
property and put it to public use, following the payment of just compensation. It is like the
power of taxation, an offspring of political necessity. The eminent domain is the power of
the sovereign to take property for public use without the owner’s consent upon making just
compensation (Coffee Board vs. Commissioner of Commercial Taxes).
3
CLC/AM/R/05
Payment of compensation
The payment of just compensation in lieu of the property acquired was contentious
matter in India. The Indian Courts alwa stood in favour of payment of just compensation.
In State of West Bengal vs. Bella Banerjee the Supreme Court held that ' compensation '
meant ' just equivalent of the property acquired and it was a justiciable matter which the
Courts could adjudicate upon. The same view was taken in State of Madras vs. Namasivaya
Mudaliar. The Supreme Court had taken the view that statute was liable to be struck down
as infringing Article 31(2) on the ground that ' compensation ' provided by it was inadequate
and that ' compensation ' ought to be the just equivalent of the property of which a person
was deprived and that ' adequacy ' of ' compensation ' was justiciable matter. Article 31 (2)
was amended and adequacy of compensation was made as non - justiciable by the Fourth
Constitutional Amendment in 1955. In spite of the amendment the Supreme Court took the
view that the amended Article 31 (2), continue to mean the compensation as given it in
Bella Banerjee's case since it retained the word compensation. Although the adequacy of
compensation was excluded, the law laid down for determining compensation would be
struck down if it was irrelevant with reference to the value of the property provided for
compensation or the principles prescribed are irrelevant to the value of the property was
illusory at or about the time of its acquisition. Vajravelu Mudaliar vs. Special Deputy
Collector. This decision was followed in Union of India vs. Metal Corporation. However,
in State of Gujarat vs. Shantilal Mangal das it was held that the question of compensation
could not be challenge on the ground that the just equivalent of what the owner had been
deprived of was not provided for. The Court would intervene only if it was ' illusory ' or if
the principles specified for the purpose were irrelevant.
The Supreme Court held in R.C.Cooper vs. Union of India that the Court could
intervene not only when compensation was illusory or the principles to determine the same
were irrelevant but also when relevant principles appropriate to the property in question
were not applied to determine compensation. As the word ' compensation ' had come to be
interpretated by the words as just equivalent of the property acquired, this word was
replaced by the word ' amount ' by the Twenty Fifth Amendment of the Constitution in
1971. The Amendment also clarified that the amount ' may be given wholly or partly
otherwise than in cash. The substitution of the word ' amount ' was upheld in Kesavananda
4
CLC/AM/R/05
Bharati vs. State of Kerala and said that the amount ' was not the same concept as '
compensation ' and the Courts would not go into the question of its adequacy. Further it
said that the principles laid down for fixing the amount must be reasonable and relevant to
the property acquired and the amount fixed should not be illusory or a fraudulent exercise
of power.
In Chanad Mal vs. State of Haryana the property was purchased for one lakh rupees
and some more amount was spent for its improvement. The land was acquired by the State
for Rs.5,000 / - only payable over next ten years at the rate of Rs.500 / - per year. The High
Court struck down the law holding that this amount had no relation with the value of the
minerals to be found in the land and that it was ' illusory and arbitrary ' and was ' shocking
to the judicial conscience ' and the conscience of every reasonable human being.
Under Article 31 (1) the property can be taken only by authority of law and not by
executive action. Under Article 31 (2), the State could acquire or requisition property for a
public purpose only.
As we have seen earlier, Article 19 (1) (f) and Article 31 (2) were deleted by the
Constitution (Forth - fourth Amendment) Act, 1978. It was not given retrospective effect.
So the validity of any law made prior to 20th June, 1979 shall be open to challenge on the
ground of contravention of these Articles. In the result, all the case law, applied to Article
19 (1) (f) or Article 31 (2) (as amended) on 19th June, 1979 shall be material in determining
the validity of a law of acquisition of property which was enacted before 20th June, 1979.
RIGHT TO PROPERTY
Article 31A
Under Article 31A, that no law providing for acquisition of any ' estate ' or any right
there in extinguishment or modification of any such rights shall be deemed to be void on
the ground that it is inconsistent with or takes away or abridges any of rights conferred by
Articles 14 or 19 of the Constitution.
Article 31B provides that none of the Acts and Regulations mentioned in the Ninth
schedule to the Constitution shall be deemed to be void on the ground that they are
inconsistent with any of the rights conferred by Part III of the constitution.
Article 31C empowers Parliament as well as State Legislatures to enact laws
towards securing the Directive Principles specified in Article 39 (b) and (c) of the
5
CLC/AM/R/05
Constitution and such laws cannot be challenged on the ground that they violate Articles
14 and 19 of the Constitution.
Article 300A of the Constitution, says that " No person shall be deprived of his
property save by authority of law ".
Reasons for the abolition of right to property as a fundamental right
The agrarian reforms were the foremost and immediate objectives of the Central
and State Governments in their planning immediately after attaining Independence. So a
series of legislation were enacted in order to sub serve the common good, increase
agricultural production and to promote social and economic justice. The land reforms
involve ceiling on land holdings, abolition of Zamindaries, protection of tenants and
conferment of occupancy rights. Further the Governments have wanted to redistribute the
surplus lands among landless. For example, the Preamble of the Tamil Nadu Land Reforms
(Fixation of Ceiling on Land) Act, 1961, speaks broadly about its goals as enshrined under
Article 39 of the Constitution. It is pointed out in State of Tamil Nadu vs. Narendra Dairy
Farms (P) Ltd. That "the Land Ceiling Act had been enacted to give effect to the Directive
Principles of State Policy in Article 39 of the Constitution. " The fixing of land ceiling,
acquisition of excess land and its distribution to the landless rural population are the prime
objects of this Act. Apart from regulation of agrarian economy, in the area of urban
property, housing to the people, clearance of slums, and town planning, control of rents,
ceiling on urban land ownership were also received consideration of the State
Governments. The Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, fixes a fair
rent, enable the Government to obtain possession of the premises and protect the tenants
from unreasonable eviction. Further the Government have undertaken various regulations
of private enterprise and nationalization of some commercial undertakings. Therefore in
order to achieve a socialist pattern of society, the Government tried to regulate the right to
property of individuals in various ways. These regulations ultimately led to removal of
property right as fundamental right and confer on them as a legal right only. This resulted
the repeal of Article 31 and introduction of Article 300A in 1979.
One of the aspect of the land reforms is the adequate payment of compensation. On
this account many of the land Legislations were challenged and the Courts are in favour of
payment of adequate payment of compensation. This led to a number of amendments of
6
CLC/AM/R/05
the Constitution. Now let us consider the changes that have been introduced periodically
with respect to property rights.
Changes introduced under article 31
Originally Article 31 consisted of six Clauses. Article 31 (1) said that ' no persort
shall be deprived of his property save by authority of law. Clause (2) was with respect to
payment of compensation and Clause 5 was saving clause.
First amendment
The Articles 31A and 31B were inserted by the First Amendment of the Constitution
in the year 1951. The reasons for the insertions were pointed out in the Statement and
Objects and Reasons. It said that because of dilatory litigation, implementation of agrarian
reform measures were held up. So for the purpose of protecting various land Legislation
from attack on the ground that they violated Articles 14, 19 or 31, the Article 31A was
introduced. Article 31B protect Legislations included in the Ninth Schedule from challenge
on the ground that they were inconsistent with or took away some of the fundamental rights.
However the Article 31 was not amended at that time.
Fourth amendment
In the year 1955, the Constitution (Fourth Amendment) Act, 1955, substituted
Clause 2. It also inserted Clause 2A in Article 31. The result of the amendment was to make
the adequacy of compensation non - justiciable. Clause 2A made it clear that the obligation
to pay compensation would arise only on transfer of ownership or possession to the State
or a State owned or controlled Corporation.
Twenty fifth amendment
Once again the right to property was amended in the year 1971 which came into
force on 20th April, 1972. This Twenty Fifth Amendment again substituted Clause (2) and
also inserted Clause (2B). It also inserted Article 31C. This amendment was to overcome
the decision in Cooper, R.C. vs. Union of India (the Bank Nationalisation case). In this
case the Supreme Court held that the compensation had to be a just equivalent in money of
the property compulsorily acquired. The Statement of Objects and Reasons for the
Constitution (Twenty - fifth Amendment) Act, 1971 says: " Article 31 of the Constitution
as it stands specifically provides that no law providing for the compulsory acquisition or
requisitioning of property which either fixes the amount of compensation or specifies the
7
CLC/AM/R/05
principles on which and the manner in which the compensation is to be determined and
given shall be called in question in any Court on the ground that the compensation provided
by that law is not adequate. In the Bank Nationalisation case, the Supreme Court has held
that the Constitution guarantees right to compensation, that is the equivalent in money of
the property compulsorily acquired. Thus in effect the adequacy of compensation and the
relevancy of the principles laid down by the Legislature for determining the amount of
compensation have virtually became justiciable in as much as the Court can go into the
question whether the amount paid to the owner of the property is what may be regarded
reasonably as compensation for loss of property. In the same case, the Court has also held
that a law which seeks to acquire or requisition property for a public purpose should also
satisfy the requirements of Article 19 (1) (f). The Twenty Fifth Amendment omitted the
word " compensation " and replaced by the word " amount ".
As said earlier, this Amendment introduced a new Article 31C which empowered
Parliament as well as State Legislatures to enact laws towards securing the Directive
Principles contained in Clauses (b) and (c) of Article 39. The validity of the Twenty Fifth
Amendment was challenged and it was upheld in Kesavananda Bharati vs. State of Kerala.
Forty fourth amendment Finally in the year 1978, the Constitution (Forty - Fourth
Amendment) Act, 1978 deleted Article 31 along with Article 19 (1) (f) and made the right
to property as only a legal right and not as a fundamental right. The right to property was
inserted as Article 300A which reproduced the wording as it were under Article 31.
Now the Articles 31A, 31B, 31C and 300A are the existing provisions regarding
right to property, after all these amendments.
MELWARAM AND KUDIWARAM
The common law of India recognises two rights in land, viz.
1) That of the Sovereign or his assignee and
2) That of the Ryot holding individually or as a member of a joint family or Village
Community.
The sovereign has a right to demand revenue in the shape of a share of the produce
from all cultivated lands which is liable to variation at his will and which is known as
rajabhogam (the share of the Raja or Government), melwaram (Superior waram or share)
melpadi (Superior half) metikoru or metipalu which has committed in Ryotwari tracts to
8
CLC/AM/R/05
a money payment; and the share of the cultivator is known as kudiwaram (Cultivator's
share), kilpadi (lower half), koru or metipalu. All the other interests in land are derived
from one or the other. Subject to the payment of his share, the Sovereign has no right to the
possession of lands. The term melwaram is strictly applicable only to the share received
by Government; but in practice is loosely applied to the share received by any person from
the actual cultivator. Thus the share received by the Proprietor of land from his tenant,
temporary or permanent, is known as melwaram; so also that received by a lessee for a
term or otherwise under a proprietor from the cultivator. So also the term kudiwaram is
strictly applicable to the share taken by the kudi or cultivator who is the owner of the soil,
but in practice, is often used to denote the share received by the person who actually raises
the crop without any reference to his right to the soil (S. Sundararaja Iyengar - Land
Tenures in Madras Presidency). The theory of partnership is so suggested between them
because of the division of the produce between the Sovereign and the subject.
INAMS
Inam is an Arabic term signifying, favour, reward or gift. It is a beneficial tenure
known originally by the Sanskrit name manyam can be traced to a very remote antiquity in
India. It was the custom of the Hindu Government to grant assignments of lands, revenue
free, or at low quit rents, for the payment of troops and civil officers, for the support of
temples and their servants, and charitable institutions, for the maintenance of holy and
learned men, or for rewards for public purposes. Grants made by the Kings and Ministers
are borne out by deeds or ' sasanas ', containing all the details. Most of them are found
etched on copper plates or on the stone walls of temples.
If the entire revenue was remitted the grant was a sarvamanyam or sarva Dumbala
manyam. If the remission was of a half of the revenue, it was called arthamanyam and
where a fourth of the revenue was remitted it was called chaturbhagam.
The practice of granting lands in lieu of wages or as a reward for services was
continued by the Mohammedan Rulers under the name of jagirs. This was regularly done
in the case of the Moghul officers of State, each of whom held a mansab i.e. a title with an
assignment of revenue to support his dignity and also to maintain a certain number of
troops, These grants were given in favour of the dependants and relatives of the Rulers. In
the period of decline of the Moghul power and before the consolidation of British
9
CLC/AM/R/05
supremacy in India, many local chieftains and officers of Government granted inam, even
though they have no power to do so. The practice of rewarding meritorious services by
grant of Jagirs continued by the British Rule. The practice, however fell into disuse after
the receipt of despatches from the Court of Directors, dated 2nd January 1822 and 27th
May 1829, in which they recommended money pensions rather than grants of lands as the
more appropriate means of rewarding the servants of the company on all ordinary
occasions.
The term inam or manyam involves a grant of the whole or a part of the melwaram
with or without a grant of the land itself. A transfer merely of the kudiwaram right cannot
be described as an inam.
The term manyam was applied in South India to land held either at a low assessment
or altogether free, in consideration of services done to the State or the community, as in the
case of village servants. This is the definition of that word given in Wilson's Glossary, the
later signification of the term after the introduction of the Arabic term, ' inam '. The word '
inam ' literally means gift. In former times the distinction between a jagir grant and an inam
grant was that the former was a large political grant implying conditions of service and the
latter a smaller personal grant with no condition of service. The word inam is a generic
term applicable to all Government grants as a whole, but in course of time when that word
alone was used without any sort of qualification or restriction, it cause to denote a grant in
perpetuity not resumable (Unide RR Bommarauce Bahadur vs Venkatry Naidu).
Major Inam and minor inam:
When a grant is made of a whole village, it is known as dehaut and is technically
called major inam, when only some lands in a village are granted, it is known as a minor
inam. These grants are divided into two classes according to the date of their creation,
Tarapadi inam or manyam and Sanad or Dumbala inam or manyam. A tarapadi inam is one
granted at the original formation of a village for village purposes or one inherited or held
from an uncertain period as an independent right. The sanad or Dumbala inam is one that
is held under a specific grant from the ruling power by individuals or by religious or
charitable institutions.
Who can grant?
10
CLC/AM/R/05
Grants of beneficial tenures being thus alienations of the Sovereign's right, whether
it be to the soil itself or merely to land revenue, it follows that the Sovereign alone is
competent to make them. Under the native Governments such right was exercised by him
or by some other officer authorised by him. But when the political confusion prevailed
during later period, this power was assumed by various petty chiefs, Zamindars, Poligars
and even by renters; and sometimes they were obtained through the collusion of revenue
officials. After the Permanent Settlement, the Zamindar was not permitted to create
beneficial tenures.
Recognition of inams by the British government:
The large sacrifice of State revenue involved in the alienation of the Melwaram
attracted the attention of the British Government at a very early period and made them
realize the need for a general enquiry into the titles to inam lands. The Regulation 31 of
1802 was passed with the object of investigating into and trying the validity of titles of
persons holding inams and a direction was given to the Collectors requiring them to prepare
Register of Inams for each District.
Inam commissioner:
In the year 1859, Mr.G.N. Taylor was appointed as the Inam Commissioner for the
Madras Presidency and under his direction most of inams in Southern India were dealt with
and title deeds were get granted to the inamdars whose titles were found to be valid by the
Commissioner. The conditional principle in the procedure of the Inam settlement has been
to treat as valid in all those inams proved to have been uninterruptedly and enjoyed as such
for a period of 50 years with or without sanad and whatever may have been their origin.
Inams of more recent dates, unless supported by valid grants were treated as invalid.
Abolition of inams: In pursuance of avowed policy to abolish all kinds of intermediaries,
the Government decided to abolish the whole inam villages left out in earlier Acts and
passed the Tamil Nadu Inam Estates (Abolition and Conversion into Ryotwari) Act, 1963.
This Act is similar in structure to that of the earlier Act of 1948 in setting out the
provisions providing machineries etc. In the same year, the Act called The Tamil Nadu
Leaseholds (Abolition and Conversion into Ryotwari) Act, 1963 was passed for the
termination of certain lease holds granted by the Government (99 years lease in some cases
and some permanently). The Tamil Nadu Minor Inams (Abolition and Conversion into
11
CLC/AM/R/05
Ryotwari) Act, 1963 was enacted for the abolition of the minor inams with effect from 1st
July 1963 and the introduction of Ryotwari settlements in the lands. It provides for grant
of patta for the occupants of both melwaram and minor inams and iru waram minor inams
while the melwaramdar who does not get patta, is given compensation.
Classification of inams
The beneficial grants may be divided into two categories as
1. Personal grants and
2. Service grants
1. Personal grants: Personal grants are those made for the support or subsistence of the
grantee in the form of assignment of land or of land revenue in conformity with the mode
of conferring benefits adopted in earlier days. They were mainly granted in favour of
learned and pious people or officers of State to support them in their old age, to persons
unable to earn their livelihood, such as those crippled etc, and was generally tenable for life
or in the line of succession upto a certain limit.
Personal grants when made in favour of Brahmins went by the generic name
Brahmadayam which means grants held by brahmins for their personal benefit. Under this
head may be classified what are known as (1) Adhyanam: for the service of reciting vedas
in pagodas; (2) Bharati; for the service of reading Mahabarata in pagodas; (3) Battavritti:
for the subsistence of Brahmins (4) Panchangam: for the service of a calendar Brahmin; (5)
Puranams: for the service of reading puranams in pagodas; (6) vedavritti: for reciting vedas
and teaching them to Brahmins; (7) Agraharam grant is a grant of a village or part thereof
made to a community of Brahmins; (8) Dharmasanam is similar to agraharam on payment
of a fixed favourable rent. (9) Srotriyam is a grant in favour of a particular Brahmin family;
(10) Kairati is a term applied originally to inams held for personal benefit by
Mohammedans and lateraly to those held by persons other than Brahmins. (1) Jagir - The
tenure of jagir is chiefly Moghul in origin. By jagir is meant a grant of revenue of a district
for political or military services. Such grants were made also to the relations of the Ruler
for subsistence or maintenance. Apart from these, there were number of personal grants
prevalent earlier.
2. Service grants: The service grants came into existence on account of the custom of the
Country to remunerate services rendered by servants, public and private by assignments of
12
CLC/AM/R/05
land or land revenue, and this system was specially adapted to a country where the revenue
was payable in kind. Such assignments varied according to the nature of the services to be
rendered. They may be divided into four classes (a) grants for private or personal services
(b) grants for public services (c) grants in favour of village servants and (d) grants for
religious and charitable service.
a. Private or personal service grants: They are grants by which services. private
or personal were reserved to the grantor of (a) Amaram grant. (b) Doratanam (c) Jivitham
(d) Kattupadi grant (e) Mukhasa Kasavargam are personal grants.
b. Grants for public services or purposes of public utility: In these grants the
community or a portion of it, get benefit of it. These are called Dharmadayam inams. Under
this head falls a great variety of inams embracing those held for the support of chattrams,
water pandals, village schools, ponds, flower gardens, topes and so forth. The most
important of this class are what are called Dasabandham inam, means ten in hundred,
implying thereby deduction of one- tenth of the revenue. It is a grant of land or land revenue
given as compensation for the construction of a tank, well or channel. Anaikaran,
Kulamkaval, Patti, urani, vayakkal etc. are other kinds of public service inams.
c. Grants in favour of village servants: An Indian village was a corporation with
the complement of servants necessary for an agricultural population who were by
assignments land or nd revenue or a proportion of the produce called marahs, russoms or
swatantarams. This inam is granted in favour of village officers like the karnam, munsif
and village artisans such as carpenter, blacksmith, barber, washerman, potter etc.
d. Grants in favour of religious or Charitable objects: Religious grants comprise
not only grants made in favour of temples and other institutions such as mutts but also those
made in favour of the servants employed therein as remuneration for the performance of
the various services connected therewith and are denoted by the term Devadayam. In many
temples special endowment for a certain specific service or religious charity are provided
for, which are known as Kattalais. Money allowances have also been made by previous
governments in favour of temples and mosques for their maintenance, which are known as
tasdik or mohini allowances. Grants in favour of religious and charitable objects were
always made in perpetuity and temporary grants in their favour have never been made.
Zamindari System
13
CLC/AM/R/05
During the British period, there were two systems, namely Ryotwari system and
Zamindari system were in force apart from Inamwari. Under the Ryotwari system, the land
owner paid tax or revenue direct to the Government. In fact, under the Hindu system of
revenue administration there was no place for the employment of an intermediate class of
proprietors interposed between. the Sovereign and the subject.
But under the Zamindari system which was introduced later, through Permanent
Settlement, an intermediary class was introduced in order to help the Rulers of the Country
in the collection of revenue. The common law of India recognises two rights in land, viz.
1. That of the Sovereign or his assignee; and
2. That of the Ryot holding individually, or as a member of a joint family, or village
community.
The Melvaram interest represents the royal share of the income from the land. This
right is really of the nature of a tax. From its very nature it is clear that it is a right which
resides in the Government. It is necessary to note, however, that right may be parted with
by the Government and may thus become vested in private persons.
History of the zamindari system
Before the Permanent Settlement: - Under the Hindu system of revenue
administration there was little room for the employment of an intermediate class of
proprietors interposed between the Sovereign and the subject. The introduction of such a
class was an innovation made by the Mohammedans. The authors of the Fifth Report have
attempted to trace the origin of the word " Zamindar ' to the time of the Hindu Rajas. The
existence of hill Zamindar in the Northern Sirkars and of Poligars in the south who claim
descent from the ancient Sovereign of the Country and who exercised Sovereign rights
within their territories shows that the status of Zamindar originated in their way besides the
conversion of old Hindu Chiefs into Mohammedan officials.
During the Mohammedan period the Zamindari system took shape. Their settlement
in the country being in the nature of a military colony, they did not trouble themselves with
the details of revenue administration. " Foreigners by birth, by religion, language, and
constantly engaged in war from the very first, they found great difficulty in a plain which
demanded the close and constant supervision of a native hereditary prince " (Hunter). The
Hindu system involved a close scrutiny and local knowledge, and the checks and counter
14
CLC/AM/R/05
checks which it provided were distasteful to them. They therefore, preferred the system of
intermediate landholders who would take the trouble off their hands and who should have
both power and influence to enforce the revenue demands against individuals, and in the
Hindu divisional officers they found such a body ready to their hands. Thus the
Mohammedan conquest led to the system of intermediate landholders and of farmers and
renters and to the introduction of Persian names and terms to denote ideas connected with
land tenures, though those names and terms rarely imported any fresh ideas. But they did
not alter the internal constitution of villages except by increasing the revenue thereon. The
difference between the Hindu system and Mohammedan system was that the Hindu system,
from the office of Minister down to that of village headman was based on the principle of
hereditary succession, while the Mohammedan system was anti - hereditary.
The classes of Zamindars were recognized by the Mohammedan Government who
may roughly be classed as hill zamindars and zamindars of the plains. The hill zamindars
were allowed to continue in their hereditary possessions, on payment of a tribute which was
fixed with reference to the amount of public dues demandable by them from Ryots. On the
other hand zamindars on the plains who were generally the descendants of the revenue
officers under the Hindu Rajas and who were completely subdued by the Mohammedans,
were never acknowledged as independent or tributary chiefs, nor having any proprietary
right to the lands within their districts. Thus in the south, there were Poligars or
Palayakarans whose position resembled that of hill zamindars of the Northern Sirkars. A
Palayam often comprised only one or few villages. Unlike the feudal barons of Europe
Poligars and Palayakarans never claimed any proprietorship over the soil nor did they ever
regard the cultivators of the soil as their serfs.
Thiru. S. Sundararaja Iyengar in his book on "Land Tenures in the Madras
Presidency " gives an account of Zamindari system and discusses rights and liabilities of
zamindars in detail. The word Zamindar literally means a land holder and in the eye of the
Government he was no more than an officer or Collector of revenue without any lordship
over or proprietary right to the lands under his charge. He was merely an officer whose
duties according to the terms of his appointment were to superintend the portion of the
Country committed to his charge, to do justice to Ryots and peasants, to furnish them with
the necessary advances for cultivation and to collect the revenue payable to Government
15
CLC/AM/R/05
(Fifth Report p11). He was strictly accountable to Government for the amount he collected
which was not regarded as tribute but only as jumma or revenue. In the later stage the
Government entered into an agreement with the Zamindar for the payment of a lump sum
which was for a year or a term of years.
Rights of the zamindar
1. Power of disposition:
Section - 8 of Regulation XXV of 1802 gave the power to Zamindars to alienate by
gift or sale or otherwise dispose of their proprietary rights in their Zamindaries in whole or
in part. In order that the alienation may be binding on the Government, the transfer is
required to be registered in the office of Collector.
2. Right to water:
In the Urlam's case the Full Bench of Madras High Court unanimously held that the
ownership of a river or stream depended upon the ownership of the banks and bed. In
Secretary of State vs Subbarayalu, 36 Mad 559 P.C. observed that " A river only belongs
to the Government when the solum of the stream belongs to the Government ". Thus it is
clear that in India the Government ownership of a river is based upon the ownership of the
bed in the case of a public navigable or tidal river both the banks in the case of other rivers.
A Ryot in a permanently settled estate who takes water at a place therein where both the
banks and bed belong to the Zamindar is not liable to pay water Cess. The leading case on
the subject of the Zamindari right to water is the well-known Urlams case i.e. Prasad Rao
vs. Secretary of State. 40 Mad 886.PC. The judicial committee held that the effect of the
Permanent Settlement was to vest the channels with their head sluices and branches and
subsidiary channels and tanks and reservoirs in the Zamindaries through or within whose
Zamindaries the same respectively passed or were situate. The Zamindar can make
common use of the water as he likes upto this extent and no water Cess can be levied. He
can legally authorise his rights to the water.
3. Right to minerals:
Where the title of a Zamindar to a village as part of his Zamindary is established he
is presumed to be the owner of the underground right in the absence of evidence that he has
parted with them and this right is recognized in the Standing Orders of the Board of
16
CLC/AM/R/05
The Permanent Settlement in India is intimately connected with the name of that
high minded noble man and statesman, the Marquis of Cornwallis. By the term Permanent
Settlement is meant the settlement in perpetuity of the Government demand with an
intermediate class of persons, known as Zamindars, Poligars, Mittadars or proprietors in
pursuance of the policy inaugurated by the Marquis of Cornwallis who was, then the
Governor - General of India.
In devising a suitable system of revenue collection the Government of Madras was
guided by the experience gained in Bengal. In Bengal, the East India Company at first
dispensed with the services of the Zamindars, Collectors and native Dewans were appointed
for the collection of revenue, but the system was unsuccessful owing to the ignorance of
the local conditions on the part of the British Administration. The Zamindari system was
thereupon encouraged and a decennial settlement was tried for some time. As the system
seemed to be satisfactory and political and financial considerations favoured such a policy,
Lord Cornwallis proposed the permanent settlement which was finally established in 1793
by Regulation I of that year.
Advantages:
Before the introduction of the permanent settlement the public assessment was
fluctuating and arbitrary and the whole Zamindari was liable to equestration in case of even
a partial failure of the kists. Being exposed to indefinite demands from the State, the
Zamindar could not afford to show moderation in his demands upon his Ryots. The result
was the neglect of agriculture with the consequent failure of the Zamindars to pay the
revenue demanded from them. The Permanent Settlement on the other hand, contained a
productive principle. By fixing in perpetuity the Government demand and making it
unalterable, security was afforded to the Zamindar who in his turn was expected not to rack
- rent the tiller so that there might be a general diffusion of prosperity. " In order to simplify
and regulate the demands of the land holders upon their tenants, the first step is to fix the
demand of Government itself ". (Appendix to the Fifth Report). The Permanent Settlement
was thus intended to bring about a radical reform in the revenue administration of the East
India Company, whereby the value of property was to be increased and the position of
Zamindars and the tenancy substantially improved. The Permanent Settlement could be
introduced only in the ancient Zamindaries in the southern districts of Madras Presidency
19
CLC/AM/R/05
and in some of the estates previously held by the Poligars. It was not possible to introduce
Zamindari system in other districts which formed a great portion of the Presidency.
The causes of the permanent settlement not to be found in a single circumstance,
but in a variety of circumstances operating at the same time. Political and financial
considerations had not a little to do with the introduction. Firstly the course of events in
England even before the advent of Lord Cornwallis tended in the same directions.
Moreover it was the spirit of age. That brought the land tax made permanent in 1798 in
England. Secondly, the condition of the East India Company was such that a Permanent
Settlement of the revenue become financial necessity. While its servants were making
colossal fortunes the Company was drifting to bankruptcy. Thirdly the unsettled state of
the Country demanded an immediate settlement with them. Fourthly the desire on the part
of Lord Cornwallis to create a landlord class similar to that of Europe, whose very existence
should depend on the stability of the British Rule and who in the case of a foreign invasion
should be attached to the Company from motives of self-interest. Fifthly and lastly the hope
entertained by Lord Cornwallis, that by the creation of Zamindars and the making of
demand on them permanent there would be no tendency on their part to oppress and rack -
rent their tenants and thus the happiness of the people would be ensured. All these
circumstances contributed to the adoption of the Permanent Settlement on a principle of
revenue administration.
Introduction of permanent settlement in madras presidency: After the introduction of
the system in Bengal, the Court of Directors were so fully satisfied of its excellence and
anxious to have it introduced it all over Company's possession. In 1799, positive orders
were sent from England that Lord Cornwallis Scheme was to be adopted throughout Madras
Presidency. On 15.10.1799 the Board of Revenue issued instructions to the Collectors of
the Districts for effectuating a Permanent Settlement with the Zamindars. Regulation XXV
of 1802 was passed for carrying out the object of the permanent settlement. Section 2 of
Regulation XXV of 1802 conferred the proprietary right of the soil on Zamindars and when
it was found that the section interfered with the rights of the Ryots, Regulation IV of 1822
was passed which declared that the former Regulation was not intended to define, limit,
infringe or destroy the actual rights of any description of tenants. But these rights are
nowhere defined, and this led to frequent disputes between the Zamindar and the Ryot.
20
CLC/AM/R/05
After trying various pieces of Legislations the Madras Legislature passed the Estates Land
Act (1 of 1908). However in some places this system was not successful and hence
Ryotwari system was reintroduced in that areas. A large part of the presidency thus
unaffected by the Permanent Settlement.
The distinguishing features of the permanent settlement are:
1. The tenure of the Zamindar which was formerly precarious was converted into a
permanent one, carrying with it the incidents of heritability and alienability
2. The assessment or peishkush payable to the Government was fixed and was made
unalterable so that it could neither be reduced nor enhanced.
3. The right to the waste land within the ambit of the Zamindari was given to the
Zamindar without liability for further assessment.
Certain changes were introduced in the existing system by the Board of Revenue.
The restriction on the powers of the Zamindars were
1. The Zamindar lost the power of maintaining military establishments
2. He gave up the power to levy taxes. In fixing the peishkush the revenue from salt
petre, abkari, taxes personal and professional were excluded and so they continue to be
under the control of the Government.
3. The right to grant inams was specifically denied to the Zamindar
4. The right to resume Lakhiraj or revenue free grants were excluded from the assets
in the computation of the peishkush and
5. Liability for the maintenance of irrigation works was transferred to the Zamindar.
Effect of permanent settlement:
The effect of the Permanent Settlement has been to convert the precarious tenure
previously held by Zamindar into a permanent one. It gave the Zamindars, ancient as well
as those created subsequent to 1802, a right to hold their estates forever on a fixed peishkush
with heritability and transferability. On the conclusion of the Permanent Settlement the
proprietary right in the soil became vested in the Zamindars, their heirs and lawful
successors forever.
An assessment is fixed at the time of the Permanent Settlement and is known as
peishkush. On the fixing of such assessment the Zamindar was granted a sanad - i - milkiyat
- i - istimrar or deed of permanent property in which the conditions and articles of tenure
21
CLC/AM/R/05
were entered and he was required to execute a corresponding kabuliat (agreement). Any
dispute regarding assessment was regulated by the sanad and the kabuliat.
Ryotwari
Under the Madras Presidency, three categories of tenures existed. They were briefly
1. Ryotwari system
2. Zamindary system; and
3. Inamdari system.
We will briefly consider these tenures one by one. The common law of India
recognises two rights in land, viz
1. That of the Sovereign or his assignee; and
2. That of the Ryot holding individually, or as a member of a joint family, or a
village community.
Land revenue is an important item of revenue belonging to the State. The Sovereign
has right to demand revenue in the shape of a share of the produce from all cultivable lands.
Subject to the payment of his share the Sovereign or State has no right to the possession of
lands. The system by which it is collected is known as the Ryotwari system.
The person with whom Government enters into direct engagement under the
Ryotwari system is called the Ryot meaning in arabic, ' subject ' or ' protected '. The true
conception underlying the Indian land system seems to be the idea of partnership. The
melvaram and the kudiwaram are independent interests in the land. The owner of the
melwaram cannot so long be receiving the revenue interfere with the discretion of the
owner of the kudiwaram as to the user of the land. The person entitled to kudiwaram may
be regarded as the owner of the soil. The melwaram interest in this view is to be regarded
as an encumbrance on that proprietary right. Melwaram is not rent in the strict sense of the
word but a tax.
Ryotwari or Kulwar System was first introduced into the British possession by Col.
Read in 1792. The system introduced by Col. Read embraced the survey of every holding
in the district and fixation of field assessment based on productive powers of the soil. It
fixed and recorded a specific sum of money as the maximum revenue payable on each field
or tract of occupied land and when the revenue was payable in kind, it commuted it into a
money payment. The Ryot was not regarded as the proprietor of the soil but only as
22
CLC/AM/R/05
cultivating tenant. While the settlement was made with each Ryot for the lands held by him
an element of village system was introduced by making him collectively liable for the entire
demand as the village. This system was open to several objections. By fixing only
maximum demand payable by him and he did not know what it was until he actually reaped
the crops. He was made liable for the default of others.
The intention of the founders of the Ryotwari system was to make the assessment
on land permanent. Col. Read's proclamation issued at the time of its introduction declared
that the assessment was fixed ' forever ' and Sir Thomas Munro declared that it was ' fixed
' and ' permanent ". Subsequently, however, change of view had come upon the authorities
in England arising from the loss of prospective income to the State. It was decided later to
abandon the policy laid down in the year 1861. Ultimately it was decided that Ryotwari
settlement though not permanent should at least be durable for a period of 30 years. This
system was introduced in tracts in which Permanent Settlement or the Zamindary system
was not existed or had failed. At present, the Government has the right to make a fresh
settlement of the revenue after a period of say 30 or 40 years. Under the Ryotwari system
the soil itself is taxed and the assessment is fixed on the land and does not depend upon the
description of the produce, or upon the claims of certain classes of persons to reduced rates.
He is liable to pay the revenue due on his field to the Government directly and without any
intermediary. The revenue payable to Government includes also cesses levied for roads,
education and charges for using water etc.
Distinguishing features
The Ryotwari system in force at present means the division of all arable land,
whether cultivated or waste into blocks, the assessment of each block at a fixed rate for a
term of say 30 years or 40 years and exaction of revenue from each occupant according to
the area of land thus assessed. The occupied area may remain either constant or may be
varied from year to year at the occupant's pleasure by the relinquishment of old blocks or
the occupation of new ones. The distinguishing feature of this system is that the State is
brought into direct contact with the owner of land and collects its revenue through its own
servants without the intervention of an intermediate agent such as the Zamindar etc., and
its object is the creation of peasant proprietors. All the income derived from extended
cultivation goes to the State.
23
CLC/AM/R/05
Patta: When a Ryot is first put into possession of land, he is furnished with a document,
called patta which is liable to revision at each annual settlement called Jamabandi.
According to Sadasiva Iyer. J. Government is under no statutory obligation to issue any
patta at all to a Ryotwari proprietor (Samarao vs Secretary of State). It sets out the name of
the pattadar, the extent of his land, and its survey number. It is not evidence of title, but
only of possession.
Ryotwari Tenure: In Madras Presidency the principal tenure of land is the Ryotwari
system of holding under Government. This system has not been established in this
Presidency by legislative enactment. Baden Powell has rightly observed, "Really the
Standing orders of the Board are the Land Revenue Code of this Province and no one can
thoroughly master the revenue administration without studying these in detail ". The
characteristic feature of this system is that the State entered into a direct engagement with
owner of lands, namely the Ryot, for the payment of revenue and collects the revenue
through its own servants i.e., the village officers. Subject to the payment of revenue the
Ryotwari proprietor has an absolute interest in the soil. In unfavourable seasons, remissions
are granted on liberal principles. In short, under Ryotwari System the Ryot enjoys all the
advantages of a perpetual lease, without its disadvantages and responsibilities. A Ryotwari
owner is not the owner of the bed of a river adjacent to his land; the bed belongs to the
Government. The revenue due on the land is a first charge on it and takes precedence over
other debts or encumbrances. In Ryotwari village the Government is the owner of waste
and unoccupied lands. It can assign such land to an applicant on appropriate term. Some
lands are reserved for the communal use of villages, such as tanks, streets, channels,
threshing fields, burial grounds etc.
General rights and powers of an absolute owner or ryot:
1. Transferability of interest:
A registered pattadar may, so far as he is concerned, alienate, sublet, mortgage, sell,
bequeath or otherwise dispose of the whole or any portion of his holding. This power is
specified in the Board of Revenue's S. O. 28 R2, Sec.2 of Regulation XXVI of 1802 (Land
Registration) requires the Collector of each district to keep registers for registering landed
property paying revenue to Government, and to register all transfers from one proprietor to
another. But want of registry does not affect the validity of the sale.
24
CLC/AM/R/05
2. Right of cultivation:
At the time of the introduction of Ryotwari system into this Presidency, settlements
were entered into with the cultivating proprietor whom Government found on the land and
treated him as the proprietor thereof. The Ryotwari proprietor being the owner of the soil,
it was held in a series of cases that he was entitled to carry on the cultivation of his lands
in any manner he chooses best. Subject to the payment of revenue, a Ryotwari proprietor
enjoys an absolute proprietorship over the soil and can deal with or use it in any manner he
likes.
3. Right to commit waste:
The Ryotwari proprietor is not bound to cultivate his holding and can commit
unlimited waste. The obligation to pay revenue of course remains unimpaired and cannot
be escaped by allowing the land to be fallow. This is clear from B.S.O. 28 Rule 5: " The
registered owner of a Ryotwari holding is bound to pay the fixed assessment on it, whether
cultivated, waste, or fallow, in the prescribed instalments ".
4. Right to minerals:
The proprietorship of the Ryotwari holder extend to the subjacent minerals. B. S.
O. 28 provides this Rule 7: "A holder of Ryotwari tenure is entitled to work minerals on
his land, but is liable to pay therefore a separate assessment in addition to the usual
assessment for surface cultivation ".
5. Treasure trove:
The Proprietorship of the land does not extend to the ownership of treasure i.e.,
anything of value, hidden in the soil. Under the Treasure Trove Act (VI of 1878) the finder
of treasure exceeding Rs.10 in value, is required, on pain of penalties prescribed under that
Act, to give notice to the Collector of the District, of the nature of the treasure found and
deposit it in the nearest Government Treasury or give security for its production when
required. If such claims are not established in a Civil Court or if the Collector finds that the
treasure is ownerless and there is no claimant other than the finder, the treasure will be
handed over to the finder. If any person claims as the owner of the place where the treasure
is found and the claim is not disputed, the finder is given three fourth of the treasure or its
value in money and the residue is given to the person claiming.
6. Right to trees:
25
CLC/AM/R/05
The pattadar is absolutely entitled to the trees standing on his holding and is not
separately charged therefor. Separate pattas are not now issued for trees except for
palmyrah as in the Tirunelveli district before 1853 the system in vogue in the Madras
Presidency was to levy a separate tree tax. In 1853 the Government ordered its abolition:
But three years later the Government reverted to the old system so far as the Tirunelveli
District was concerned owing to special reasons applicable to that area.
7. Right to relinquishment:
A Pattadar can relinquish the lands in his holding or any portion thereof provided
the relinquished part is accessible and the relinquishment is in writing and made sufficiently
early in the season to enable another Ryot to commence cultivation upon it. After
relinquishment, it becomes the property of Government which it can dispose of in any way
it likes in which case his liability to pay the assessment for the land will cease.
8. Right to water:
Every Ryot is entitled to right to water to irrigate his fields. However he has no right
that water should be supplied to him through a particular source. Government has no right
to alter the sources, means, works etc from or by which the water for irrigation is supplied
to the Ryot entitled thereto. A Ryotwari proprietor whose source of water supply is
interfered with another proprietor is entitled to an injunction, restraining him from such
interference.
9. Right to patta:
As we have seen earlier, the Government gives a patta to the Ryot or holder of land.
A patta is a document which states among other matters, the revenue fixed on the land at
the last settlement.
Obligations:
The liabilities on the part of the Ryot are:
i. Liability to pay Land Tax
ii. Liability to Water Cess
The Ryot is under the obligation to pay rent in respect of all ryoti land in his holding,
whether the lands are cultivated or not. Similarly he is liable to pay water Cess when water
is supplied to his land.
Tamil Nadu Estates (Abolition and Conversion into Ryotwari) Act, 1948
26
CLC/AM/R/05
The statement of objects and reasons. - In many estates in the Province of Madras, the
rents levied by the land holder from his Ryots is substantially in excess of the assessment
charged by the Government on similar land in the neighbouring Ryotwari area and is
beyond the capacity of the Ryots to pay. The Zamindari system has perpetuated an
assessment which has no relation to the productive capacity of the land. It has further led
to loss of contact between the Government and the actual cultivator and has acted as a brake
in regard to state of disrepair. The complexities of the Zamindari system have led to an
immense volume by litigation. Many of the records in the offices of Zamindars are
indifferently maintained and the peasantry, most of whom are illiterate, are at the mercy of
unscrupulous agents. Zamindari administration has rarely if ever, been as efficient as
administration in Government areas. There is thus acute discontent among estate Ryots and
there has been a good deal of agitation by them. The Government are convinced that the
Zamindari system in force in the province has outlived its usefulness and should be
abolished at the earliest possible date.
It was pointed out that such reform involved the removal of all intermediaries
between the peasant and the State and that the rights of such intermediaries should be
acquired on payment of equitable compensation. The Government accordingly propose to
abolish the Zamindari system by acquiring all estates governed by the Madras Estates Land
Act, 1908, including whole Inam villages and converting them into Ryotwari, paying
equitable compensation of the several persons having an interest in the estates.
Till 1865, when the Rent Act was passed the Zamindar did not enjoy even the right
of enhancing the rent at all. It was in 1865 then statutory provision was made giving the
right to the Zamindar to enhance rent under certain condition. Of course, this was confirmed
in 1908 and 1936, under the Permanent Regulation and the Patta Regulation read together,
there was no right for the Zamindar to raise the rate of rent. The Prakasam Committee
which went into the question, elaborately, has given the final tie to the claim of the
Zamindar to have proprietorship of the soil as well as the right to enhance the rent. The
object of this Act was to compensate only the right to collect rent. Further it suggested to
vest in Government all these rights claimed by the Zamindar, lock, stock and barrel. The
Act of 1948 removed the word " Proprietor " used in the definitions and in its place the
words " principal landholder ' was used.
27
CLC/AM/R/05
In this Act, compensation was given to the pre - settlement estate in the same basis
as the Inams and to the post - settlement estates as if they are Zamindaris.
The Impartible Estate Act of 1904 was repealed by this Act.
UNIT- II
ACQUISITION OF LAND
LAND ACQUISITION ACT, 1894
This Central Act namely the Land Acquisition Act, was passed in the year 1894 to
amend the law for the acquisition of land for public purposes and for Companies. It
provides elaborate provisions relating to the acquisition of land needed for public purposes
and for determining or assessing the amount of compensation to be paid for such
acquisition.
The Land Acquisition Act, 1894 is general enactment, extends to the whole of India
except the State of Jammu and Kashmir. It came into force on the 1 st day of March 1894.
Scope and object of the Act
The scope and object of the Act is to provide a speedy method of deciding the
amount of compensation payable by the Collector when such amount is disputed and the
person or persons to whom it is payable. The Act does not contemplate or provide for the
acquisition of any interest in land which already belongs to Government only for the
acquisition of such interests in the land as do not already belong to Government. The Land
Acquisition Act deals with the acquisition of land for public purposes and covers lands and
buildings situated in any part of the country.
Definitions:
Land (Section 3(a)
Includes benefits to arise out of land, and things attached to the earth or permanently
fastened to anything attached to the earth.
Person interested (Section 3(b)
Includes all persons claiming an interest in compensation to be made on account of
the acquisition of land under this Act; and a person shall be deemed to be interested in land
if he is interested in an easement affecting the land.
Company (Section 3(e)
28
CLC/AM/R/05
(i) a company as defined in section 3 of the Companies Act, 1956 (1 of 1956), other
than a Government company referred to in clause (cc);
(ii) a society registered under the Societies Registration Act, 1860 (21 of 1860), or
under any corresponding law for the time being in force in a State, other than a society
referred to in clause (cc);
(iii) a co-operative society within the meaning of any law relating to co-operative
societies for the time being in force in any State, other than a co-operative society referred
to in clause (cc).
Food Corporation of India, State Transport Corporation are held to be within the
definition. However ONGC, Municipal Corporation and Khadi Gram Udyog Board are
held to be outside the definition.
Public purpose (Section 3(f)
(i) The provision of village-sites, or the extension, planned development or
improvement of existing village-sites;
(ii) The provision of land for town or rural planning;
(iii) The provision of land for planned development of land from public funds in
pursuance of any scheme or policy of Government and subsequent disposal thereof in
whole or in part by lease, assignment or outright sale with the object of securing further
development as planned;
(iv)The provision of land for a corporation owned or controlled by the State;
(v) The provision of land for residential purposes to the poor or landless or to
persons residing in areas affected by natural calamities, or to persons displaced or affected
by reason of the implementation of any scheme undertaken by Government, any local
authority or a corporation owned or controlled by the State;
(vi) The provision of land for carrying out any educational, housing, health or slum
clearance scheme sponsored by Government or by any authority established by
Government for carrying out any such scheme, or with the prior approval of the appropriate
Government, by a local authority, or a society registered under the Societies Registration
Act, 1860 (21 of 1860), or under any corresponding law for the time being in force in a
state, or a co-operative society within the meaning of any law relating to co-operative
societies for the time being in force in any State;
29
CLC/AM/R/05
(vii) The provision of land for any other scheme of development sponsored by
Government or with the prior approval of the appropriate Government, by a local authority;
(viii) The provision of any premises or building for locating a public office, but
does not include acquisition of land for companies.
But it does not include acquisition of land for companies.
Acquisition
Part III of the Land Acquisition Act, 1894 deals with preliminary investigation,
objections and taking possession of the land. Section 4-17.
Whenever it appears to the [appropriate Government] the land in any locality [is
needed or] is likely to be needed for any public purpose [or for a company], a notification
to that effect shall be published in the Official Gazette [and in two daily newspapers
circulating in that locality of which at least one shall be in the regional language], and the
Collector shall cause public notice of the substance of such notification to be given at
convenient places in the said locality [(the last of the dates of such publication and the
giving of such public notice , being hereinafter referred to as the date of the publication of
the notification)].
The powers of the officers
Section 4(2) is an enabling section. It empowers the officers to have right of entry
with the land for doing necessary preliminary works. They have the right of entry only
subsequent to notification. The powers of the officers are:
1. to enter upon and survey and take levels of any land in such locality;
2. to dig or bore into the sub-soil;
3. to do all other acts necessary to ascertain whether the land is adapted for such
purpose;
4. to set out the boundaries of the land proposed to be taken and the intended line
of the work (if any) proposed to be made thereon;
5. to mark such levels, boundaries and line by placing marks and cutting trenches;
and,
6. where otherwise the survey cannot be completed and the levels taken and the
boundaries and line marked, to cut down and clear away any part of any standing crop,
fence or jungle;
30
CLC/AM/R/05
Provided that no person shall enter into any building or upon any enclosed court or
garden attached to a dwelling house (unless with the consent of the occupier thereof)
without previously giving such occupier at least seven days' notice in writing of his
intention to do so.
Hearing of objections
Section 5 of the Land Acquisition Act, 1894 speaks about the right of a person
having interest in land to raise objections and an opportunity of being heard. It also deals
with Collector’s inquiry in the matter and his report with respect of land to Government
containing his recommendation on the objections.
Any person interested in any land which has been notified under section 4,
subsection (1), as being needed or likely to be needed for a public purpose or for a Company
may, [within thirty days from the date of the publication of the notification], object to the
acquisition of the land or of any land in the locality, as the case may be.
Declaration of intended acquisition
Section 6 of the Land Acquisition Act, 1894 deals with declaration issued by the
government that land is required for a public purpose.
The publication of declaration
The section 6(2) says every declaration shall be published in the official gazette and
in two daily newspaper circulating in the locality in which the land is situate, of which at
least one shall be in the regional language and the collector shall cause public notice of the
substance of such declaration to be given at convenient places in the said locality. Such
declaration shall state the district or other territorial division in which the land is situate,
the purpose and its approximate area.
Effect of declaration
The said declaration shall be conclusive evidence that the land is needed for a public
purpose or for a company as the case may be and after making such declaration the
appropriate government or the commissioner of land administration as the case any acquire
the land in manner hereinafter appearing. When once a declaration under Section 6 is made,
the Act insists that thereafter the collector has to take an order for acquisition of the land.
It also empowers the acquiring department to take possession of land. The Land Acquisition
31
CLC/AM/R/05
Officer is under a statutory obligation, after issue of Notification under Section 4 and 6 to
make enquires, pass an award and to take possession.
Section 7: After declaration, Collector to take order for acquisition - Whenever any
land shall have been so declared to be needed for public purpose, or for a Company, the
[appropriate Government], or some officer authorized by the [appropriate Government] in
this behalf, shall direct the Collector to take order for the acquisition of the land.
Section 8 Land to be marked out, measured and planned - The Collector shall thereupon
cause the land (unless it has been already marked out under section 4) to be market out. He
shall also cause it to be measured, and (if no plan has been made thereof), a plan to be made
of the same.
Section 9 Notice to persons interested –
(1) The Collector shall then cause public notice to be given at convenient places on
or near the land to be taken, stating that the Government intends to take possession of the
land, and that claims to compensations for all interests in such land may be made to him.
(2) Such notice shall state the particulars of the land so needed, and shall require all
persons interested in the land to appear personally or by agent before the Collector at a time
and place therein mentioned (such time not being earlier than fifteen days after the date of
publication of the notice), and to state the nature of their respective interests in the land and
the amount and particulars of their claims to compensation for such interests, and their
objections (if any) to the measurements made under section 8. The Collector may in any
case require such statement to be made in writing and signed by the party or his agent.
(3) The Collector shall also serve notice to the same effect on the occupier (if any)
of such land and on all such persons known or believed to be interested therein, or to entitled
to act for persons so interested, as reside or have agents authorized to receive service on
their behalf, within the revenue district in which the land is situate. (4) In case any person
so interested resides elsewhere, and has no such agent, the notice shall be sent to him by
post in letter addressed to him at his last known residence, address or place or business and
[registered under sections 28 and 29 of the Indian Post Office Act, 1898 (6 of 1898)].
Section 10 Power to require and enforce the making of statements as to names and
interests –
32
CLC/AM/R/05
(1) The Collector may also require any such person to make or deliver to him, at a
time and place mentioned (such time not being earlier than fifteen days after the date of the
requisition), a statement containing, so far as may be practicable, the name of every other
person possessing any interest in the land or any part thereof as co-proprietor, sub-
proprietor, mortgagee, tenant or otherwise, and of the nature of such interest, and of the
rents and profits (if any), received or receivable on account thereof for three years next
preceding the date of the statement.
(2) Every person required to make or deliver a statement under this section 9 shall
be deemed to be legally bound to do so within the meaning of sections 175 and 176 of the
Indian Penal Code (45 of 1860).
Section 11 Enquiry and award by Collector –
[(1)] On the day so fixed, or on any other day to which the enquiry has been
adjourned, the Collector shall proceed to enquire into the objection (if any) which any
person interested has stated pursuant to a notice given under section 9 to the measurements
made under section 8, and into the value of the land [at the date of the publication of the
notification under section 4, sub-section (1)], and into the respective interests of the persons
claiming the compensation and shall make an award under his hand of-
(i) the true area of the land;
(ii) the compensation which in his opinion should be allowed for the land; and
(iii) the apportionment of the said compensation among all the persons known or
believed to be interested in the land, or whom, or of whose claims, he has information,
whether or not they have respectively appeared before him : [Provided that no award shall
be made by the Collector under this sub-section without the previous approval of the
appropriate Government or of such officer as the appropriate Government may authorize
in this behalf: Provided further that it shall be competent for the appropriate Government
to direct that the Collector may make such award without such approval in such class of
cases as the appropriate Government may specify in this behalf.
[(2) Notwithstanding anything contained in sub-section (1), if at any stage of the
proceedings, the Collector is satisfied that all the persons interested in the land who
appeared before him have agreed in writing on the matters to be included in the award of
33
CLC/AM/R/05
the Collector in the form prescribed by rules made by the appropriate Government, he may,
without making further enquiry, make an award according to the terms of such agreement.
(3) The determination of compensation for any land under sub-section (2) shall not
in any way affect the determination of compensation in respect of other lands in the same
locality or elsewhere in accordance with the other provisions of this Act.
(4) Notwithstanding anything contained in the Registration Act, 1908 (16 of 1908),
no agreement made under subsection (2) shall be liable to registration under that Act.]
Section 11A Period shall be which an award within made-
The Collector shall make an award under section 11 within a period of two years
from the date of the publication of the declaration and if no award is made within that
period, the entire proceeding for the acquisition of the land shall lapse:
Provided that in a case where the said declaration has been published before the
commencement of the Land Acquisition (Amendment) Act, 1984 (68 of 1984), the award
shall be made within a period of two years from such commencement.
Explanation - In computing the period of two years referred to in this section, the
period during which any action or proceeding to be taken in pursuance of the said
declaration is stayed by an order of a Court shall be excluded.]
Section 12 Award of Collector when to be final –
(1) Such award shall be filed in the Collector's office and shall, except as hereinafter
provided, be final and conclusive evidence, as between the Collector and the persons
interested, whether they have respectively appeared before the Collector or not, of the true
area and value of the land, and the appointment of the compensation among the persons
interested.
(2) The Collector shall give immediate notice of his award to such of the persons
interested as are not present personally or by their representatives when the award is made.
Section 13 Adjournment of enquiry –
The Collector may, for any cause he thinks fit, from time to time adjourn the enquiry
to a day to be fixed by him.
Section 13A Correction of clerical errors, etc –
(1) The Collector may, at any time but not later than six months from the date of
the award, or where he has been required under section 18 to make a reference to the Court,
34
CLC/AM/R/05
before the making of such reference, by order, correct any clerical or arithmetical mistakes
in the award or errors arising therein either on his own motion or on the application of any
person interested or a local authority: Provided that no correction, which is likely to affect
prejudicially any person, shall be made unless such person has been given a reasonable
opportunity of making a representation in the matter.
(2) The Collector shall give immediate notice of any correction made in the award
to all the persons interested.
(3) Where any excess amount is proved to have been paid to any person as a result
of the correction made under subsection (1), the excess amount so paid shall be liable to be
refunded and in the case of any default or refusal to pay, the same may be recovered as an
arrear of land revenue.]
Section 14 Power to summon and enforce attendance of witnesses and production of
documents –
For the purpose of enquiries under this Act the Collector shall have powers to
summon and enforce the attendance of witnesses, including the parties interested of any of
them, and to compel the production of documents by the same means, and (so far as may
be) in the same manner as is provided in the case of a Civil Court under the 1[Code of Civil
Procedure 1908 (5 of 1908)].
Section 15 Matters to be considered and neglected –
In determining the amount of compensation, the collector shall be guided by the
provisions contained in section 23 and 24.
36
CLC/AM/R/05
accepted, the value of such crops and trees and the amount of such other damage shall be
allowed for in awarding compensation for the land under the provisions herein contained.
3[(3A) Before taking possession of any land under sub-section (1) or sub-section
(2), the Collector shall, without prejudice to the provisions of sub-section (3)- (a) tender
payment of eighty per centum of the compensation for such land as estimated by him to the
person interested entitled thereto, and (b) pay it to them, unless prevented by some one or
more of the contingencies mentioned in section 31, sub-section (2), and where the Collector
is so prevented, the provisions of section 31, sub-section (2), (except the second proviso
thereto), shall apply as they apply to the payment of compensation under that section.
(3B) The amount paid or deposited under section (3A), shall be taken into account
for determining the amount of compensation required to be tendered under section 31, and
where the amount so paid or deposited exceeds the compensation awarded by the Collector
under section 11, the excess may, unless refunded within three months from the date of
Collector's award, be recovered as an arrear of land revenue].
[(4) In the case of any land to which, in the opinion of the [appropriate
Government], the provisions of sub-section (1) or sub-section (2) are applicable, the
[appropriate Government] may direct that the provisions of section 5A shall not apply, and,
if it does so direct, a declaration may be made under section 6 in respect of the land at any
time [after the date of the publication of the notification] under section 4, sub-section (1).]
THE RIGHT TO FAIR COMPENSATION AND TRANSPARENCY IN LAND
ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013
In the year 2013, Parliament enacted an Act called the Right to Fair Compensation
and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013,
replacing 120 years old Land Acquisition Act, 1894. This provides fair compensation to
those whose land is taken away and it provides transparency to the process of acquisition.
It lays down the procedure and rules for granting compensation, rehabilitation and
resettlement to the affected persons. It aims to establish the law on land. acquisition, as well
as the rehabilitation and resettlement to those directly affected by the land acquisition in
India.
Land acquisition is the process by which land owned by persons are compulsorily
acquired. It is different from the purchase of land, which is a contract between a willing
37
CLC/AM/R/05
seller and a willing buyer on mutually acceptable terms. Acquisition is where the landowner
has no choice over parting with the land, and is forced to relinquish his property. Therefore
the process of acquisition overrides the property rights of private landowner. This can be
justified only, if a case can be made for greater benefit in taking away someone's land
ownership rights.
Land acquisition is a concurrent subject and governed by Central and State laws.
The main Central Act, governing land acquisition is the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act. States can enact
laws to land acquisition in their territories.
Under the Act of 2013, land can be acquired only for the projects that have a "
public purpose ", which has been defined in this Act. Each of these projects will require a
Social Impact Assessment (SIA) to determine whether the potential benefits of the projects
outweigh the social costs.
As we have seen earlier, this Act, replaces the Land Acquisition Act, 1894. The
provisions of this Act was found to be inadequate in addressing certain issues related to the
exercise of the statutory powers of State for involuntary acquisition of private land and
property. It did not cover the issues of rehabilitation and resettlement to the affected persons
and the families. There had been multiple amendments to the Land Acquisition Act, 1894,
not only by the Central Government and but the State Governments as well. But, these
amendments not satisfied the growing developments. The Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, address
concerns of the farmers and those whose livelihood are dependent on the land being
acquired, while at the same time facilitating land acquisition for industrialization,
infrastructure and urbanization projects in timely and transparent manner.
The Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013, represents a change in the legislative approach
in land acquisition. It introduces for the first time, provisions for social impact assessments,
recognises non - owners as affected persons, a mode of acquisition requiring consent of the
displaced and statutory entitlements for rehabilitation.
The Land Acquisition, Rehabilitation and Resettlement Bill, 2011 was introduced
in Lok Sabha on 7th September, 2011. The Bill was then passed by it on 29th August, 2013
38
CLC/AM/R/05
and Rajya Sabha on 4th September, 2013. The Bill then received the assent of the President
of India on 27th September, 2013. The Act came into force from 01-01-2014.
Preamble
The preamble of this Act, states the scope, aims and objectives of the Act. It is for
the purpose,-
1. to ensure, in consultation with institutions of local self - government and Gram
Sabhas established under the Constitution of India, a humane, participative, informed and
transparent process for land acquisition for industrialisation, development of essential
infrastructural facilities and urbanisation with the least disturbance to the owners of the
land and other affected families;
2. to provide just and fair compensation to the affected families whose land has been
acquired or proposed to be acquired or are affected by such acquisition;
3. to make adequate provisions for such affected persons for their rehabilitation and
resettlement:
4. to ensure that the cumulative outcome of compulsory acquisition should be, that
affected persons become partners in development leading to an improvement in their post-
acquisition, social and economic status. and for matters connected therewith or incidental
thereto.
This Act aims to establish the law on land acquisition, as well as the rehabilitation
and resettlement of those directly affected by the land acquisition in India. The scope of
this Act includes all land acquisition whether it is done by the Central Government of India
or any State Government, including the State of Jammu and Kashmir by the Jammu and
Kashmir Re - organisation Act, 2019 (34 of 2019) (w.e.f. 31-10-2019).
The application of this Act
Section 2 of this Act deals with application of the Act. Section 2 (1) says that, the
provisions of this Act relating to land acquisition, compensation, rehabilitation and
resettlement, shall apply,
When the appropriate Government acquires land for its own use, hold and control,
including for Public Sector Undertakings and for public purpose. It will include the
following purposes, namely:
39
CLC/AM/R/05
a) for strategic purposes relating to naval, military, air force, and armed forces, etc.,
or State police, safety of the people; or
b) For infrastructure projects, including:
i) All activities or items listed in the notification of the Government of India
in the Department of Economic Affairs;
ii) Projects involving agro - processing, etc.;
iii) Project for industrial corridors or mining activities, etc.;
iv) project for water harvesting and water conservation structures,
sanitation;
v) Project for Government aided educational and research schemes or
institutions;
vi) project for sports, health care, tourism, transportation or space
programme;
vii) Any other infrastructure facility required by Government;
c) Project for project affected families;
d) Project for housing;
e) Project for planned development or the improvement of village sites, etc.;
f) Project for residential purposes to the poor or landless or to persons residing in
areas affected by natural calamities, etc.
When the Government declares public purpose and shall control the land directly,
consent of the landowner shall not be required. However, when the Government acquires
the land for private companies, the consent of at least 80 % of the project affected families
shall be obtained through a prior informed process before Government uses its power under
the Act to acquire the remaining land for public good, and in the case of public - private
project at least 70 % of the affected families should consent to the acquisition process:
Provided that the process of obtaining the consent shall be carried out along with
the Social Impact Assessment (SIA) study referred to in Section 4:
It is further provided that no land shall be transferred by way of acquisition, in the
Scheduled Areas in contravention of any law relating to land transfer, prevailing in such
Scheduled Areas.
40
CLC/AM/R/05
Section 2 (3) of this Act speaks about rehabilitation and resettlement. It will apply
to the cases where, (a) a private company purchases land, equal to or more than such limits
in rural areas or urban areas through private negotiations with the owner of the land in
accordance with the provisions of Section 46; (b) a private company requests the
appropriate Government for acquisition of a part of an area so prescribed for a public
purpose.
Definitions
Section 3 of the Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013, defines various terms like affected family,
agricultural land, cost of acquisition, displaced family, entitled to act, family, landless,
landowner, marginal owner, person interested, resettlement area, small farmer, etc.
“Affected family”- Section 3 (c) defines this term in elaborate manner. An “affected
family” will include the following:-
i) a family whose land or other immovable property has been acquired;
ii) a family which does not own any land but a member or members of such family
may be agricultural labourers, tenants or artisans whose primary source of livelihood stand
affected by the acquisition of land;
iii) the Scheduled Tribes and other traditional forest dwellers who have lost any of
their forest rights due to acquisition of land;
iv) family whose primary source of livelihood for 3 years prior to the acquisition of
the land is dependent on forests or water bodies and includes gatherers of forest produce,
hunters, fisher folk and boatmen and such livelihood is affected due to acquisition of land;
v) a member of the family who has been assigned land by the State Government or
the Central Government under any of their schemes and such land is under acquisition;
vi) a family residing on any land in the urban areas for preceding 3 years or more
prior to the acquisition of the land or whose primary source of livelihood for 3 years prior
to the acquisition of the land is affected by the acquisition of such land;
“Agricultural land”- Section 3 (d) defines the term agricultural land It means land used
for the purpose of –
i) Agriculture or horticulture;
41
CLC/AM/R/05
ii) Dairy farming, poultry farming, pisciculture, sericulture, seed farming, breeding
of livestock or nursery, growing medicinal herbs;
iii) Raising of crops, trees, grass or garden produce; and
iv) Land used for the grazing of cattle;
“Cost of acquisition”- Section 3 (i) says what will be included under the heading cost of
acquisition. The term cost of acquisition includes
i) amount of compensation including solatium and interest;
ii) Demurrage to be paid for damages caused to the land and standing crops in the
process of acquisition;
iii) Cost of acquisition of land and building for settlement of displaced or adversely
affected families;
iv) cost of development of infrastructure and amenities at the resettlement areas;
v) cost of rehabilitation and resettlement;
vi) Administrative cost;
vii) Cost of undertaking "Social Impact Assessment study ";
“Displaced family”- This term is defined under Section 3 (k). " Displaced family” means
any family, who on account of acquisition of land has to be relocated and resettled from
the affected area to the resettlement area;
“Entitled to act”- The meaning of this term is given under Section 3(1). According to this,
the trustees, the guardians of minors and the committees or managers of lunatics are deemed
to be considered as persons entitled to act;
“Family”- As per Section 3 (m), family includes a person, his or her spouse, minor
children, minor brothers and minor sisters dependent on him. However, that widows,
divorcees and women deserted by the families are considered as separate families;
“Land” - This term includes benefits to arise out of land, and things attached to the earth
or permanently fastened to anything attached to the earth. This definition is similar to the
definition of land under the Transfer of Property Act, 1882;
“Landless”- Landless means such persons or class of persons who may be considered or
specified as such under any State law;
“Landowner”- This term is defined under Section 3 (r) as any person,
42
CLC/AM/R/05
i) Whose name is recorded as the owner of the land or building or part thereof, in
the records of the authority concerned; or
ii) any person who is granted forest rights under the Scheduled Tribes and Other
Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (2 of 2007); or
iii) Who is entitled to be granted Patta rights on the land; or
iv) Any person who has been declared as such by an order of the Court or Authority;
“Marginal farmer”- It means a cultivator with an un - irrigated land holding up to one
hectare or irrigated land holding up to one - half hectare;
“Person interested”- Section 3 (x) defines this term in elaborate manner. Person interested
means –
i) All persons claiming an interest in compensation to be made on account of the
acquisition of land under this Act;
ii) Scheduled Tribes and other traditional forest dwellers, who have lost any forest
rights recognized under the Scheduled Tribes and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act, 2006 (2 of 2007);
iii) A person interested in an easement affecting the land;
iv) Persons having tenancy rights; and
v) Any person whose primary source of livelihood is likely to be adversely affected;
Government of NCT of Delhi vs. Manav Dharam Trust, AIR 2017 SC 2450 - Any person
whose primary source of livelihood is likely to be affected is also a person interested;
“Public purpose”- This means the activities specified under sub - section (1) of Section 2;
“Small farmer”-It means a cultivator with an un - irrigated land holding up to two hectares
or with an irrigated land holding up to one hectare, but more than the holding of a marginal
farmer.
Determination of Social Impact and Public Purpose
A - Preliminary investigation for determination of social impact and public purpose
Section 4 of the Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013, is a very important section as it deals with
preliminary investigation for determination of social impact and public purpose. It provides
the initial stages of procedure which is to be followed in land acquisition proceedings.
43
CLC/AM/R/05
Preparation of Social Impact Assessment study (Section 4).- Whenever the Government
intends to acquire land for a public purpose, it shall consult the concerned Panchayat,
Municipality or Municipal Corporation, in the affected area and carry out a Social Impact
Assessment study in consultation with them. Afterwards, notification issued by the
Government shall be made available in the local language and published in the affected
areas, and also uploaded on the website of the Government. Proper representation to be
given to the representatives of Panchayat, Gram Sabha, Municipality or Municipal
Corporation. Further, it is directed under Section 4 (2), that the Social Impact Assessment
study must be completed within a period of six months from the date of its commencement.
Consultation with the local bodies, issue of notification, its publication in local
language, uploading it on the website of the Government and publication of Social Impact
Assessment study report are the initial stages in the preparatory work.
Section 4 (3) makes availability of Social Impact Assessment study report to the
public mandatory.
Contents of the Social Impact Assessment study report.-
According to Section 4 (4) the study report should include the following matters,
namely:
a) Assessment as to whether the proposed acquisition serves public purpose;
b) Estimation of affected families and the number of families among them likely to
be displaced;
c) Extent of lands, public and private, houses, settlements and other common
properties likely to be affected by the proposed acquisition;
d) Whether the extent of land proposed for acquisition is the absolute bare -
minimum extent needed for the project;
e) Whether land acquisition at an alternate place has been considered and found not
feasible;
f) Study of social impacts of the project, and the nature and cost of addressing them
and the impact of these costs on the overall costs of the project vis - a - vis the benefits of
the project.
44
CLC/AM/R/05
At the same time, Environmental Impact Assessment study should be carried out
simultaneously. It should not be contingent upon the completion of the Social Impact
Assessment study [Section 4 (4)].
What are things that should be taken into consideration while Government
undertaking a Social Impact Assessment study? Section 4 (5) answers to this question. The
Government while undertaking the study, it should consider the following components: -
Livelihood of affected families, public and community properties, assets and infrastructure,
particularly roads, public transport, drainage, sanitation, sources of drinking water, sources
of water for cattle, community ponds, grazing land, plantations, public utilities, such as post
offices, fair price shops, food storage godowns, electricity supply, health care facilities,
schools and educational or training facilities, anganwadis, children parks, places of
worship, land for traditional tribal institutions and burial and cremation grounds. Section 4
(6) speaks about the preparation of a Social Impact Management Plan.
Public hearing for Social Impact Assessment. - Section 5 of this Act seeks to provide
public hearing for Social Impact Assessment to ascertain the views of the affected families
and to be recorded and included in the Social Impact Assessment Report.
Publication of Social Impact Assessment study. - Section 6 of this Act states that the
Social Impact Assessment study report and Social Impact Management Plan are to be
prepared and made available in the local language to concerned bodies as in the case of
publication of notification. Its copy should be sent to the Central Government Agency.
B - Appraisal of Social Impact Assessment Report by an Expert Group
Section 7 of the Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, 2013, deals with evaluation of expert group, its
constitution, and its recommendation and publication of recommendation of expert group.
Every Social Impact Assessment Report must be evaluated by an independent multi
- disciplinary Expert Group.
The Expert Group constituted under Section 7 (1) shall include the following,
namely,
a) Two non - official social scientists;
b) Two representatives of Panchayat, Municipality, etc.;
c) Two experts on rehabilitation; and
45
CLC/AM/R/05
46
CLC/AM/R/05
47
CLC/AM/R/05
notice to persons interested, enquiry, determination of market value and compensation and
award of solatium.
Publication of preliminary notification. - Section 11 deals with issue of preliminary
notification and mode of publication.
Section 11 of this Act enacts that whenever, it appears to the Government that land
in any area is required or likely to be required for any public purpose, a notification should
be published.
Mode of publication- The publication must be
a) in the Official Gazette;
b) In two daily newspapers;
c) In the local language in the Panchayat or other local bodies;
d) uploaded on the website of the Government;
e) In the affected areas, in such manner as may be prescribed.
Immediately after issuance of the notification, the contents must be informed to the
local bodies. It should inform the nature of public purpose, reasons for it, summary of the
Social Impact Assessment Report and particulars of the Administrator appointed for the
purposes of rehabilitation and resettlement.
No transaction. - Section 11 (4) makes it clear that no person should make any
transaction of land specified in the preliminary notification or create any encumbrances on
such land.
Preliminary survey of land and power of officers to carry out survey.- In order to
determine the extent of the land to be acquired, lawfully appointed officer and his servants
can do any of this following acts,
a) To enter upon and to take survey;
b) To dig or bore into the sub - soil;
c) To do all other acts to ascertain whether the land is adapted for such purpose;
d) To set out the boundaries of the land;
e) To mark boundaries.
But while doing any of these acts that it must be done in the presence of the owner
of the land.
48
CLC/AM/R/05
Lapse of Social Impact Assessment Report.- Section 14 speaks about time limit of Lapse
of Social Impact Assessment Report. Where a preliminary notification is not issued within
twelve months from the date of appraisal of the Social Impact Assessment Report submitted
by the Expert Group, then such report shall be deemed to have lapsed. A fresh Social Impact
Assessment shall be required to be undertaken prior to acquisition proceedings:
However, Government shall have the power to extend the period of twelve months,
and in doing so, reasons must be given in writing.
Objections by any person interested. - Section 15 of this enactment gives right to
objection to any person interested in proposed land acquisition. It says that any person
interested in any land which has been notified as being required or likely to be required for
a public purpose, may within sixty days from the date of the publication of the preliminary
notification, may object to it. He may object to
a) Area and suitability of the land proposed to be acquired;
b) Justification offered for public purpose;
c) Findings of the Social Impact Assessment report.
Section 15 (2) speaks about further acts of the Collector. Objection by the person
interested must be in writing. Then, the Collector will give him an opportunity of being
heard in person. After hearing all such objections, he will make an inquiry about it.
Afterwards the Collector will send his report to the Government, containing his
recommendations on the objections, together with the record of the proceedings held by
him along with a separate report giving therein the approximate cost of land acquisition,
particulars as to the number of affected families likely to be resettled, for the decision of
that Government.
The decision of the Government on the objections made under sub - section (2) of
Section 15 shall be final.
Preparation of Rehabilitation and Resettlement Scheme
Sections 16 to 19 of this Act deal with matters relating to preparation of
Rehabilitation and Resettlement Scheme by the Administrator.
Upon the publication of the preliminary notification under Section 11 by the
Collector, the Administrator for Rehabilitation and Resettlement shall conduct a survey and
undertake a census of the affected families.
49
CLC/AM/R/05
The survey and census of the affected families should contain the following-
a) Particulars of lands and immovable properties being acquired of each affected
family;
b) Livelihoods lost in respect of land losers and landless whose livelihoods are
primarily dependent on the lands being acquired;
c) A list of public utilities and Government buildings which are affected or likely
to be affected, where resettlement of affected families is involved;
d) Details of the amenities and infrastructural facilities which are affected or likely
to be affected, where resettlement of affected families is involved; and
e) Details of any common property resources being acquired.
Based on the survey and census as discussed above, the Administrator has to
prepare a draft Rehabilitation and Resettlement Scheme, covering all particulars relating to
rehabilitation and resettlement entitlements of each landowner and landless whose
livelihoods are primarily dependent on the lands being acquired.
The draft should include time limit for implementing Rehabilitation and
Resettlement Scheme. Further, it should be made known locally by wide publicity in the
affected area. For this purpose, a public hearing has to be conducted. The Administrator on
completion of public hearing submit the draft to the Collector.
Review of the Rehabilitation and Resettlement Scheme by the Collector.- Under
Section 17, the Collector will review the draft Scheme and submit it with his suggestions
to the Commissioner of Rehabilitation and Resettlement for the approval of the Scheme.
Then the Commissioner has to made available of the approved Scheme in the local
language in the affected localities and also publish it in the affected areas.
Publication of declaration and summary of Rehabilitation and Resettlement
When the Government is satisfied, after considering the report, that any particular
land is needed for a public purpose, a declaration shall be made to that effect, along with a
declaration of an area identified as the resettlement area " for the purposes of rehabilitation
and resettlement of the affected families [Section 19 (1)].
The Collector should publish a summary of the Rehabilitation and Resettlement
Scheme along with declaration.
50
CLC/AM/R/05
Acquisition in stages- In projects where land is acquired in stages, the application for
acquisition itself can specify different stages for the rehabilitation and resettlement, and all
declarations shall be made according to the stages so specified [Section 19 (3)].
Declaration for “Resettlement” area should be published in the following manner, namely:
a) In the Official Gazette:
b) In two daily newspapers being circulated in the locality:
c) In the local language in the Panchayat, etc.;
d) uploaded on the website of the Government;
e) In the affected areas, in such manner as may be prescribed.
Conclusive evidence- Such declaration is considered as conclusive evidence as to the land
required for a public purpose. Then the Government may acquire the land in such manner
as specified under this Act.
Effect of non - declaration- Declaration is anecessary component in land acquisition
proceedings. If no such declaration is made within twelve months from the date of
preliminary notification, then such notification shall be deemed to have been rescinded.
However, Government has power to extend the period of twelve months in writing.
Marking- After such declaration, the Collector will cause the land to be marked out and
measured, and a plan to be made of the same.
Notice to persons interested as to taking possession- Section 21 states that the Collector
will publish the public notice on his website and cause public notice to be given at
convenient places on or near the land to be taken, stating that the Government intends to
take possession of the land, and that claims to compensations and rehabilitation and
resettlement for all interests in such land may be made to him [Section 21(1)].
Appearance of persons interested and submission of statement relating to their
claim- The public notice requires the persons interested to appear and submit a report. The
words persons interested is defined under Section 3 (x). The person interested may appear
in person or through advocate before the Collector within thirty days from date of notice.
They have to state the nature of their respective interests in the land and the amount
and particulars of their claims to compensation for such interests, their claims to
rehabilitation and resettlement along with their objections, to the measurements made under
Section 20.
51
CLC/AM/R/05
Such statements by the persons interested must be made in writing and signed by
them.
Likewise, the Collector also serve notice to the occupier of land.
In case any person so interested resides elsewhere, and has no such agent, notice is
to be sent to him by post addressed to him at his last known residence, and also publish the
notice in at least two national daily newspapers and also on his website.
The Collector will also require any person to make or deliver a statement containing
the name of every other person possessing any interest in the land as co - proprietor, sub -
proprietor, mortgagee, tenant, likewise.
52
CLC/AM/R/05
Acquisition Officer more than five years prior to the commencement of the Act, 2013. It is
also admitted position that compensation so awarded has neither been paid to the
landowners / persons interested, nor deposited in the Court. The deposit of compensation
amount in the Government Treasury is of no avail and cannot be held to be equivalent to
compensation paid to the landowners / persons interested. The Supreme Court have
therefore, no hesitation in holding that the subject land acquisition proceedings shall be
deemed to have lapsed under Section 24 (2) of the Act 30 of 2013 Pune Municipal
Corporation vs. Harakchand Misirimal Solanki, S. Perumal Gounder vs. Chief Secretary,
Government of Tamil Nadu.
No deposit of compensation- There is a proviso clause under Section 24. It says where an
award has been made and compensation in respect of a majority, of land holdings has not
been deposited in the account of the beneficiaries, then, all beneficiaries shall be entitled to
compensation in accordance with the provisions of the Act.
Under Section 24 (2) of the 2013 Act, where an award under Section 11 of the 1894
Act has been passed and in case of compensation has not been paid to the landowners or
deposited before the Court in terms of the requirements under the 1894 Act, the acquisition
proceedings set lapsed. In case compensation has not been paid, the acquisition proceedings
in respect of the acquisition will stand lapsed, as if there is no acquisition. Where the land
is compulsorily acquired, it is for the Requisitioning Authority to make the payment and
does not require the landowners to come and receive the payment [Vijay Latka vs. State of
Haryana].
As and when land is taken over by way of acquisition, the landowner has to be
compensated with the amount of compensation duly determined under the Act. In case there
is any dispute as to who is to be paid the amount, the same is to be deposited in Court in
terms of Section 31 of the Land Acquisition Act, 1894. It is for the authorities concerned
to pay the money and to take the land and in case there is any dispute as to whom the money
should be paid, then the same has to be deposited in Court. As admittedly, no compensation
has been paid to the appellants are entitled to succeed. Accordingly, the appeal is allowed.
The appellants in their case in terms of the above - mentioned award, the proceedings for
acquisition of land of the appellants are covered by the notification issued under Section 4
54
CLC/AM/R/05
(1) of the Land Acquisition Act, 1894 and leading to the award stand set aside as having
been lapsed Vijay Latka vs. State of Haryana.
Compensation has not been paid by respondents to appellant for acquisition even
though more than five years had lapsed from the date of award when Act, 2013 came into
force, physical possession of land belonging to Appellant was not taken by Respondents as
well. Hence, acquisition proceedings in respect of Appellant's land had lapsed Velaxan
Kumar vs. Union of India. Under Section 16 of the Land Acquisition Act, 1894, once award
has been made by the Collector under Section 11 of the said Act, the Collector has to take
possession of the land and only thereupon the land will vest in the Government free from
all encumbrances. Therefore, passing of the award by itself will not enable the appellant to
take a contention that the land has automatically vested with the land on passing of the
award. It is not in dispute that in all these cases, the land has not been taken possession of
by the Collector within 5 years or more prior to when the 2013 Act came into force Delhi
Development Authority vs. Reena Suri.
If award has been passed prior to 5 years, but not physical possession of land has
been taken or compensation has not been paid, then the land acquisition proceedings
initiated under the 1894 Act deemed to have lapsed. Further, though compensation was
deposited and possession of land was not taken within 5 years from the date of passing of
the award, then land acquisition proceedings initiated under the 1894 Act deemed to have
lapsed in terms of Section 24 (2) of 2013 Act A. Nagarajan vs. Secretary to Government,
H & UD Development.
The right conferred to the landholders / owners of the acquired land under Section
24 (2) of the Act is the statutory right and therefore the said right cannot be taken away by
an ordinance inserting proviso to the above - said sub - section without giving retrospective
effect to the same R. Radhakrishnan vs. Secretary to Government of Tamil Nadu.
There was no possession taken of the land in question, nor was there any
compensation paid by the appellant even though award was passed 5 years back before the
commencement of the Act of 2013. It is sufficient ground for granting protection envisaged
by Section 24 (2) - Government of NCT of Delhi vs. Jagjit Singh.
Land was acquired under the Land Acquisition Act, 1894 for setting up residential
colony. No award was passed and no land value was given to owner. There arises no
55
CLC/AM/R/05
After having determined the market value of the land to be acquired, the Collector
should calculate the total amount of compensation to be paid to the landowner by including
all assets attached to the land [Section 27].
Parameters in determining an award
In determining the amount of compensation to be awarded for land acquired under
this Act, the Collector shall take into consideration
Firstly, the market value as determined under Section 26 and the award amount in
accordance with the First and Second Schedules;
Secondly, the damage sustained by the person interested, by reason of taking of any
standing crops and trees which may be on the land at the time of the Collector's taking
possession thereof;
Thirdly, the damage (if any) sustained by the person interested, at the time of the
Collector's taking possession of the land, by reason of severing such land from his other
land;
Fourthly, the damage (if any) sustained by the person interested, at the time of the
Collector's taking possession of the land, by reason of the acquisition injuriously affecting
his other property, movable or immovable, in any other manner, or his earnings;
Fifthly, in consequence of the acquisition of the land by the Collector, the person
interested is compelled to change his residence or place of business, the reasonable
expenses (if any) incidental to such change:
Sixthly, the damage (if any) bona fide resulting from diminution of the profits of
the land between the time of the publication of the declaration under Section 19 and the
time of the Collector's taking possession of the land; and
Seventhly, any other ground which may be in the interest of equity justice and
beneficial to the affected families.
Services of engineer or experienced persons in determining value of things attached
to land or building
Section 29 states about determination of market value of buildings and other
immovable properties, assets attached to the land or building. value of trees and plants and
standing crops damaged during the process of acquisition. It requires the Collector to utilise
57
CLC/AM/R/05
the services of competent engineer, specialists, and experienced persons, as the case may
be.
Award of solatium
The Collector having determined the total compensation to be paid, shall, to arrive
at the final award, impose a "Solatium" amount equivalent to one hundred per cent of the
compensation amount [Section 30].
Solatium amount shall be in addition to the compensation payable to any person
whose land has been acquired.
In this regard, the Collector shall issue individual awards detailing the particulars
of compensation payable and the details of payment of the compensation as specified in the
First Schedule.
In addition to the market value of the land provided under Section 26, the Collector
shall, in every case, award an amount calculated at the rate of twelve per cent per annum
on such market value for the period commencing on and from the date of the publication
of the notification of the Social Impact Assessment study under sub - section (2) of Section
4, in respect of such land, till the date of the award of the Collector or the date of taking
possession of the land, whichever is earlier.
Rehabilitation and Resettlement Award
Chapters V to VIII deal with all matters pertaining to Rehabilitation and
Resettlement under Sections 31 to 74.
Rehabilitation and Resettlement Award
The Collector shall pass Rehabilitation and Resettlement Awards for each affected
family in terms of the entitlements provided in the Second Schedule.
The Rehabilitation and Resettlement Award shall include all of the following,
namely:-
a) Rehabilitation and resettlement amount payable to the family;
b) Bank account number of the person to which the rehabilitation and resettlement
award amount is to be transferred:
c) Particulars of house site and house to be allotted, in case of displaced families;
d) Particulars of land allotted to the displaced families:
58
CLC/AM/R/05
59
CLC/AM/R/05
families, a Development Plan should be prepared. That Development Plan shall also
contain a programme for development of alternate fuel, fodder and non - timber forest
produce resources on non - forest lands within a period of five years.
In case of land being acquired from the members of the Scheduled Castes or the
Scheduled Tribes, at least one - third of the compensation amount due should be paid to the
affected families. Further, they should be resettled preferably in the same Scheduled Area.
If any alienation of tribal lands or lands belonging to members of the Scheduled Castes in
disregard of the laws and regulations shall be treated as null and void and in the case of
acquisition of such lands, the rehabilitation and resettlement benefits shall be made
available to the original tribal landowners or landowners belonging to the Scheduled
Castes. If they have any fishing rights in a river or pond or dam, they must be given
alternative rights in the reservoir areas.
Where the affected families belonging to the Scheduled Castes and the Scheduled
Tribes are relocated outside of the district, then, they should be paid an additional twenty -
five per cent rehabilitation and resettlement benefits.
Section 42 confers all benefits, including the reservation benefits available to the
Scheduled Tribes and the Scheduled Castes in the affected areas shall continue in the
resettlement area too. Further, it is provided that when they are relocated outside those
areas, the benefits will be extended in the resettlement area.
Procedure and Manner of Rehabilitation and Resettlement
Administrator
Where the Government is satisfied that there is likely to be involuntary displacement of
persons due to acquisition of land, it shall, appoint in respect of that project, an officer
called Administrator for Rehabilitation and Resettlement. He will be provided necessary
office infrastructure with officers and employees to assist him and vested with powers and
duties. The formulation, execution and monitoring of the Rehabilitation and Resettlement
Scheme shall vest in the Administrator [Section 43].
Commissioner for Rehabilitation and Resettlement
The Commissioner for rehabilitation and resettlement is appointed under Section
44 of this Act, and he is responsible for supervising the formulation of rehabilitation and
resettlement schemes or plans and proper implementation of such schemes or plans. He is
61
CLC/AM/R/05
also responsible for the post - implementation social audit in consultation with the Gram
Sabha in rural areas and municipality in urban areas.
Constitution of Rehabilitation and Resettlement Committee at project level
Where land proposed to be acquired is equal to or more than one hundred acres, the
Government shall constitute a Committee under the Chairmanship of the Collector to be
called the Rehabilitation and Resettlement Committee, to monitor and review the progress
of the implementation of the Rehabilitation and Resettlement scheme and to carry out post
- implementation social audit in consultation with the Gram Sabha in rural areas and
municipality in urban areas. Section 45 (2) mentions who will be members of that
Committee.
National Monitoring Committee for Rehabilitation and Resettlement
Chapter VII of the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013, deals with establishment of
National Monitoring Committee and State Monitoring Committee for reviewing and
monitoring the implementation of rehabilitation and resettlement schemes.
Section 48 is relating to Establishment of National Monitoring Committee for
reviewing and monitoring the implementation of rehabilitation and resettlement schemes
or plans under this Act.
Similarly, a State level Committee is established under Section 50.
The State and Central Governments provide such officers and staff to monitoring
Committees.
Establishment of Land Acquisition, Rehabilitation and Resettlement Authority
Constitution of Land Acquisition, Rehabilitation and Resettlement Authority.- For the
purpose of providing speedy disposal of disputes relating to land acquisition,
compensation, rehabilitation and resettlement, the Government will establish, an authority
called " the Land Acquisition, Rehabilitation and Resettlement Authorities " (Section 51),
The Government will also notify its jurisdiction for entertaining and deciding the references
made to it under Section 64.
The Authority shall consist of only one person referred as the Presiding Officer.
The Presiding Officer, for the appointment must be in the rank of District Judge or a legal
practitioner having not less than seven years’ experience. The Presiding Officer is
62
CLC/AM/R/05
appointed by the Government in consultation with the Chief Justice of a High Court. He
will hold office for a term of three years or until he attains the age of sixty - five years,
whichever is earlier. The Government will provide him a Registrar and such other officers
to assist him.
The provisions relating to salary and allowances, and filling up of the post of
Presiding Officer, his resignation and removal are stated under Sections 56 to 58. The order
of the appointment as the Presiding Officer by Government cannot be called in question in
any manner [Section 59].
Powers of Authority - The Authority shall, for the purposes of its functions, shall have the
same powers as are vested in a civil Court. The Authority has following powers, namely:-
a) Summoning and enforcing the attendance of any person and examining him on
oath;
b) Discovery and production of any document or other material object producible
as evidence;
c) Receiving evidence on affidavits;
d) Requisitioning of any public record;
e) Issuing commission for the examination of witnesses;
f) Reviewing its decisions, directions and orders;
g) Any other matter which may be prescribed.
Original jurisdiction- The Authority shall have original jurisdiction to adjudicate upon
every reference made to it under Section 64.
Procedure- Even though the Authority is not bound by the procedure laid down in the
Code of Civil Procedure, but should be guided by the principles of natural justice. The
Authority has power to regulate its own procedure [Section 60 (3)].
Disposal- The Authority shall, after receiving reference under Section 64 and after giving
notice of such reference to all the parties concerned and after affording opportunity of
hearing to all parties, dispose of such reference within a period of six months from the date
of receipt of such reference and make an award accordingly.
Judicial proceedings- All proceedings before the Authority shall be deemed to be judicial
proceedings within the meaning of provisions of Indian Penal Code and it deemed to be a
civil Court under the provisions of Code of Criminal Procedure.
63
CLC/AM/R/05
Civil Court has no power- No civil Court except High Court has jurisdiction to entertain
any dispute relating to land acquisition and civil Court has no power to grant any injunction
in acquisition matters.
Reference
Section 64 refers reference to Authority by Collector. Any person interested, who
has not accepted the award may, by written application to the Collector, require that the
matter be referred by the Collector for the determination of the Authority. It may be, his
objection to the measurement of the land, the amount of the compensation, the person to
whom it is payable, or the apportionment of compensation, etc.
The Collector has within a period of thirty days from the date of receipt of
application, to make a reference to the Authority. In cases of failure of Collector, the
applicant may apply to the Authority requesting it to direct the Collector to make the
reference.
Collector's statement to Authority
In making the reference, the Collector shall state for the information of the
Authority, in writing under his hand-
a) The situation and extent of the land, with particulars of any trees, buildings or
standing crops thereon;
b) The names of the persons whom he has reason to think interested in such land;
c) The amount awarded for damages and paid or tendered under Section 13, and the
amount of compensation awarded under the provisions of this Act;
d) The amount paid or deposited under any other provisions of this Act; and
e) If the objection be to the amount of the compensation, the grounds on which the
amount of compensation was determined [Section 65 (1)].
Sections 66 to 68, deal with procedural aspects relating to attendance, forum, etc.
What are the points that Authority has to consider in determining the amount of
compensation and discussed under Section 69 of this Act? In determining the amount of
compensation the Authority shall take into consideration whether the Collector has
followed the parameters set out under Sections 26 to Section 30 and the provisions under
Chapter V of this Act. In addition to the market value of the land, the Authority shall award
an amount calculated at the rate of twelve per cent per annum on such market value for the
64
CLC/AM/R/05
period commencing on and from the date of the publication of the preliminary notification
under Section 11 in respect of such land to the date of the award of the Collector or the date
of taking possession of the land, whichever is earlier. Apart from this the Authority shall
award a solatium of one hundred per cent over the total compensation amount.
The award must be in writing signed by the Presiding Officer of the Authority, and
such award deemed to be a decree.
Section 71 speaks about payment costs.
Section 74 provides the relief of appeal against the award to the High Court.
Apportionment of Compensation
Sections 75 and 76 deal with the provisions relating to particulars of specification
of apportionment and the question of dispute as to apportionment. Where there are several
persons interested, and they agree with the apportionment granted, the particulars of such
apportionment must be specified in the award. The award shall be conclusive evidence of
the correctness of the apportionment.
When the amount of compensation has been settled, if any dispute arises as to the
apportionment, the Collector may refer such disputes to the Authority.
Payment
Section 77 of this Act deals with the payment of compensation and speaks about
tendering payment by Collector to the persons interested. Can making an award under
Section 30, the Collector has to tender payment of compensation to the persons interested
and has to pay it to them by depositing the amount in their bank accounts.
Deposit in the Authority. If the person entitled to receive compensation (1) is not
consenting to receive it, or (2) if there is no person to alienate the land, or (3) if there is any
dispute as to the title to receive the compensation or (4) if there is a dispute as to
apportionment, the Collector has to deposit the amount of the compensation in the
Authority.
Investment of money deposited in respect of lands belonging to person incompetent
to alienate-
Section 78, if any money is deposited in the Authority and it appears that the land
in respect whereof the same was awarded belong to any person who had no power to
alienate the same,-
65
CLC/AM/R/05
a) Order the money to be invested in the purchase of other lands to be held under
the like title and conditions of ownership as the land in respect of which such money shall
have been deposited was held; or
b) If such purchase cannot be effected forthwith, then in such Government of other
approved securities as the Authority concerned shall think fit,
and shall direct the payment of the interest or other proceeds arising from such investment
to the person or persons who would for the time being have been entitled to the possession
of the said land, and such moneys shall remain so deposited and invested until the same be
applied –
i) In the purchase of such other lands as aforesaid; or
ii) In payment to any person or persons becoming absolutely entitled thereto.
Section 78 (2) speaks about payment of costs of investments.
Sections 79 and 80 deal with investment of money deposited in other cases payment of
interest.
Temporary Occupation of Land
Section 81 seeks to provide for temporary occupation of waste or arable land, for a
period of 3 years on payment of compensation. It says whenever the temporary occupation
and use of any waste or arable land are needed for any public purpose, the Government
may direct the Collector to procure the occupation and use of the same not exceeding three
years from the commencement of such occupation.
For the occupation, the Collector has to pay such compensation, either in a gross
sum of money, or by monthly or other periodical payments, as shall be agreed upon in
writing between him and such persons respectively.
In case of the Collector and the persons interested differ as to the sufficiency of the
compensation or apportionment thereof; the Collector shall refer such difference to the
decision of the Authority [Section 81 (3)].
Section 82 empowers the Collector to enter upon and take possession of the land,
and use or permit the use thereof in accordance with the terms of the notice given in this
regard.
66
CLC/AM/R/05
In case land has become permanently unfit to be used for the purpose term,
Government may acquire it permanently for a public purpose as if for which it was used
immediately before the commencement of such it was needed.
Where difference as to condition of land arises at the expiration of the term, the
Collector shall refer it to the Authority [Section 83].
be deemed to be non - cognisable. Only Collector or any other officer authorised by the
Government or any member of the affected family can prefer a complaint.
Miscellaneous
Chapter XIII of the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013, deals with miscellaneous
provisions under Sections 91 to 114.
Withdrawal of acquisition proceedings- The Government has at liberty to withdraw the
acquisition of any land of which possession has not been taken. In that case, the Collector
shall determine the amount of compensation due for the damage suffered by the owner in
consequence of acquisition proceedings. He shall pay such amount to the person interested,
together with all costs reasonably incurred by him.
In the case of acquisition of house, etc., only part of the house cannot be acquired
where the owner desires that whole of such house is to be acquired.
Exemption from income tax, stamp duty and fees- Section 96 provides that no income
tax or stamp duty shall be levied on any award or agreement made under this Act, except
under Section 46 and no person claiming under any such award or agreement shall be liable
to pay any fee for a copy of the same.
No change of ownership- Section 100 states that no change of ownership without specific
permission from the appropriate Government shall be allowed.
Return of unutilised land- When any land acquired under this Act remains unutilised for
a period of five years from the date of taking over the possession, the same shall be returned
to the original owner or owners or their legal heirs, or to the Land Bank.
Option of Government to lease - The Government shall, wherever possible, be free to
exercise the option of taking the land on lease, instead of acquisition, for any public purpose
referred to in sub - section (1) of Section 2.
The Central Government has power to amend or alter any of the Schedule by
notification [Section 106].
The State Government can enact any law to enhance or add to the entitlements
enumerated under this Act which confers higher compensation than payable under this Act
or make provisions for rehabilitation and resettlement which is more beneficial than
provided under this Act [Section 107].
68
CLC/AM/R/05
Section 108 seeks to provide for option to affected families to avail better
compensation and rehabilitation and resettlement, where a State law or a policy framed by
the Government of a State provides for a higher compensation than calculated under this
Act.
Section 109 empowers the Government to make rules by notification, for carrying
out the provisions of this Act.
Repeal of Land Acquisition Act, 1894
Section 114 of this Act, repeals old Act called as “Land Acquisition Act, 1894 " (1
of 1894).
Schedules
There are four Schedules attached to this Act, namely, - (1) Compen sation for
landowners; (2) Elements of rehabilitation and resettlement entitlements for all the affected
families (both landowners and the families whose livelihood is primarily dependent on land
acquired) in addition to those provided in the First Schedule; (3) Provision of infrastructural
amenities; and (4) List of enactments regulating land acquisition and rehabilitation and
resettlement.
69
CLC/AM/R/05
UNIT – III
ENACTMENTS AND CULTIVATING TENANTS
TAMIL NADU CULTIVATING TENANTS PROTECTION ACT 1955:
Soon after Independence attained it was felt that the reform of land system is urgently
needed in order to improve the standard of living conditions of tiller of the land. The
agrarian reforms to be taken must be in consonance with the Directive Principles of State
Policy enshrined in the Constitution of India. So, Government passe a number of
enactments in that direction. The elimination of intermediaries in agricultural holdings,
conversion of agricultural holdings, conversion of agricultural lands into Ryotwari, Land
to the tiller, fixing of tenure, protection of tenancy and protection of kudiyiruppu are some
of the objects taken into consideration in bringing the land reforms in Tamilnadu.
The first enactment passed in that direction was the Tanjavur Pannaiyal Protection
Act, 1952. Then next step taken by the Government of the protection of cultivating tenants
is passing of the Tamilnadu Cultivating Tenants Protection Act, 1955. The scope of this
Act of 1955 is to protect the cultivating tenants from improper eviction by land owners.
Originally the Act was intended only for one year. This Act was extended from time
to time and it became permanent by virtue of the Act 8 of 1965. Thereafter many
amendments were made to the Principal Act. They introduced drastic changes and several
new provisions have been incorporated in the Principal Act. The act has been made
applicable to the whole of Tamil Nadu by Act 4 of 1976. This beneficial enactment is a
small one, consisting of eight sections only.
Salient features of the act
The Tamil Nadu Cultivating Tenants Protection Act is a beneficent legislation for
granting security of tenure to cultivating tenants of agricultural lands. The salient features
are:
70
CLC/AM/R/05
a) The first and foremost feature of the Act is that the cultivating tenants can be evicted
from the leasehold only by an order of Revenue court constituted under the Act and
that too only under certain specific circumstances such as failure to pay rent,
causing damage or injury to the land, using the land for any purpose other than
agricultural or horticultural purposes, so on.
b) This Act has provided a provision for restoration of possession under Sec.4.
c) The Landlord is entitled to carry on personal cultivation under certain circumstances
subject to certain conditions.
d) The cultivating tenant can also deposit rent due to the landowner in the Revenue
court and thereby avoid the risk of becoming defaulters in case the landowners
avoid or refuse to accept the rent offered. (Sec. 3 (3a))
e) A special privilege is conferred on the cultivating tenant who has enrolled as a
member of Armed Forces who sub-let the land and to resume possession of the land,
sub-let by him after his retirement, discharge etc-Sec.4AA. So also a landlord is
entitled to resume possession for personal cultivation subject to certain conditions
after his retirement or discharge from the service.
f) A provision has made that even sub-tenants are eligible for the protection given to
the tenants, irrespective of the fact that the lease in favour of the original tenant has
come to an end.
g) Under Sec.4B of the Act, the lease deed must be executed in triplicate in the
prescribed form and within reasonable time.
h) The jurisdiction of civil court is ousted in respect of any matter which the Revenue
Divisional Officer is empowered by or under this Act to determine. Sec.6
i) This act has no application to the lands owned by Central and state Governments.
71
CLC/AM/R/05
ii) Includes –
a) Any such person who continues in possession of the land after the determination
of the tenancy agreement;
b) The heir of such person, if the heir contributes his own physical labour or that
of any member of his family in the cultivation of such land;
c) A sub-tenant if he contributes his own physical labour or that of any member of
his family in the cultivation of such land; or
d) Any such sub-tenant who continues in possession of the land notwithstanding
that the person who sublet the land to such sub-tenant ceases to have the right to
possession of such land; but
iii) Does not include a mere intermediary or his heir;
This definition includes apart from cultivating tenant, his heir, his family members and sub-
tenant. There should have been in the origin a tenancy agreement, express or implied and
under that agreement to which the person is a party, should carry a personal cultivation on
the land. Is these premises are granted, though the agreement of tenancy express or implied
was terminated but the person mentioned in the first part of the definition continues in
possession of the land, he will be a cultivating tenant.
The first part of the definition does not specify as between whom and whom the
tenancy agreement mentioned is contemplated. The lease may have been granted by the
owner or a usufructuary mortgagee or even a lessee of the land. But the person who carries
a personal cultivation of the land should derive his right under the tenancy agreement with
a person who is entitled to enter into the agreement. To attract the inclusive definition, the
two requisites are,
1. Determination of a tenancy agreement; and
2. The person who continues in possession of the land.
If these conditions are satisfied, the person continuing in possession of the
land will be a cultivating tenant.
Landlord:
A Landlord is defined as follows. “Landlord means the person entitled to evict the
cultivating tenant from such holding or part.” (Sec.2e) so this definition will include every
72
CLC/AM/R/05
successive holder who could be entitled to evict a tenant. There is nothing in the Act to
show that the protection is given to the cultivating tenant only against the original lessor
and did not extend to subsequent holders of land occupying the capacity of the landlord.
G.Ponnaiah Thevar Vs.Nalleyam Perumal Pillai.
A tenant of a usufructuary mortgagee with whom the tenancy agreement came to
an end would be entitled to statutory protection under the Act, if he continues to be in
possession and cultivates the land. Chandrasekaran vs Kunju Vanniyar.
A legal representative is also entitled to be included in the definition provided if he
satisfies the condition that he personally contributes his labour in the cultivation of such
land Rasappa Gounder vs G.N.Ramasamy and Venkataswami Reddiyar vs.Sundaramurthy.
If the sub-lessee continues in possession but the tenancy agreement originally entered into
had not terminated, the sub-lessee may not be entitled to protection. If, in the other hand,
by the time the sub-lessee claims protection under the Act, the tenancy agreement with his
lessor had terminated, then it will be different matter to which the definition will have
application Chandrasekaran vs Kunju Vanniyar, It is pointed out in Sudalaimuthu
vs.Palaniyandavar that in the case of a joint family, if one of the members of a joint family
contributes his labour that would suffice to hold that the family is entitled to the protection
under the Act.
Protection of cultivating tenants against eviction:
The Sec.3 of the Tamil Nadu Cultivating Tenants Protection Act, 1955 deals with
protection of cultivating tenants against eviction by landlords. This section consists of four
clauses. The sub-section 1 offers protection to the cultivating tenants. The sub-sec 2 speaks
about the exceptions. The sub-sec.3 is relating to the deposit of rent by the cultivating
tenants and sub-sec. 4 is regarding the eviction procedure taken by the landlord.
Sec.3 (1) says: “no cultivating tenant shall be evicted from his holding or any part
thereof, by or at the instance of his landlord, whether in execution of a decree or order of a
court or otherwise”.
For the purpose of getting protection under this Section the applicant must be a cultivating
tenant as defined under Sec.2 (aa).it is clear from this, that the cultivating tenant is a person
who contributes his own physical labour in the cultivation of any land belonging to another,
under a tenancy agreement express or implied. What is necessary is that there must be a
73
CLC/AM/R/05
tenancy agreement between the two and the person claims protection should carry a
personal cultivation on the land. In the case of a joint family, if one of the members of a
joint family contributes his labour that would suffice to hold that the family is entitled to
the protection under the Act. Sudalaimuthu vs.Palaniyandavar.
On the death of the cultivating tenant, his legal representatives would be entitled to
claim the protection of the Act if any one of them satisfied that he had personally
contributed his labour in the cultivation of such land Rasappa Gounder vs G.N.Ramasamy.
So also a tenant of a usufructuary mortgagee with whom the tenancy agreement came to an
end would be entitled to statutory protection under this Act, if he continues to be in
possession and cultivate land Chandrasekaran vs Kunju Vanniyar.
The contribution of one’s physical labour in the cultivation and existing of tenancy
agreement are necessary to claim protection. In other words in order to claim the benefits
of the Act,
1) One should contribute his own physical labour,
2) The land should belong to another person,
3) There must be a tenancy agreement express or implied.
We must remember that a landlord is defined here not in terms of a person who let
out the land, but as a person entitled to evict the cultivating tenant.
So no contractual relationship is necessary or is implied for the purpose of the definition.
The lease may have been granted by the owner or a usufructuary mortgagee or even a lessee
of the land. A sub-tenant is a cultivating tenant. Any such sub-tenant is a cultivating tenant.
Any such sub-tenant who continues in possession of the land not withstanding that the
person who sub-let the land to such sub-tenant ceases to have the right to possession of
such land is entitled to protection. One can get protection even after the determination of
tenancy agreement provided he is in possession of the lands.
According to Sec. 3 (1), the landlord cannot evict the tenant even though he
obtained a decree earlier. He should present an application to the Revenue Divisional
Officer under Sec.4 (a) for this purpose.
Sub-section 2 is an exception to sub-section 1. On account of failure to pay rent
within the stipulated time, causing damage or injury to the land, using the land for any
74
CLC/AM/R/05
purpose other than agricultural or horticultural purposes and wilful denial of the title of the
landlord, he cannot get protection from eviction. Let us consider these circumstances in
detail.
The grounds of eviction
Failure to pay the rent: the first ground is non-payment of rent within stipulated time as
prescribed by the act. There are two provisions with respect to failure to pay rent:
a) they are the areas governed by the provisions of the Tanjavur Tenants and
Pannaiyal Protection Act, 1952 was in force,
b) The areas where the Thanjavur Tenants and Pannaiyal Protection Act is not
in force. In the both cases where a tenant remain in areas before or after the
commencement of this Act and failed to pay the arrears, he cannot avail the
protection given to the tenants. Likewise, where he failed to pay the rent
accrued due after the commencement of the Act, within one month, he
cannot avail the benefits of the Act.
Injury to the land: the second ground is causing damage or injury to the land or crop either
by his act or by negligence. So also if he failed to cultivate the land, he cannot get
protection. It is pointed out in Rethinam Vs. Kuppusamy Odayar. The value of the land
would be adversely affected if only a single crop is cultivated in double crop field.
Using the land for other purposes: The act gives protection only where the tenant carries
a personal cultivation of the land for agricultural purposes. ‘Cultivation’ means according
to Section 2 (b), the use of lands for the purpose of agriculture or horticulture. Further when
we look at the meaning of the term ‘land’, it is defined as the land used for the purpose of
agriculture or horticulture U/S 2 (d).so it is clear that where he used the land for any purpose
other than agricultural or horticultural purpose, the sub-section will not apply.
Denial of title: Next ground is wilful denial of landlord’s title. Having accepted a person
as landlord the tenant cannot thereafter deny his title. The estoppel will operate against him.
This is similar to ground for the forfeiture of lease U/S 111 (g) of the Transfer of Property
Act. However, a denial of the landlord’s title under a bonafide mistake of fact is not wilful
within the meaning of this clause.
75
CLC/AM/R/05
So in the four circumstances mentioned above, the cultivating tenant is not entitled to avail
the protection given under Section 3 (1) of the Act. That means in those circumstances, the
landlord can approach the Revenue Divisional Officer for his eviction. (Sec.3 (4) (a).
Deposit of the rent: A Provision is made under sec. 3 (3a) for the deposit of rent due to
the landlord in order to avoid the risk of becoming defaulters in case the landowners avoid
or refuse to accept the rent offered. If the rent is payable in kind, its market value on the
date of deposit may be made in the Revenue court to the account of the landlord. The court
will conduct summary enquiry and find correctness of the rent deposited. If the court finds
that any further sum is due, it will allow the cultivating tenant time for depositing the rent.
If the court adjudges that no further sum is due or if the cultivating tenant deposit the rent
within the time allowed, the cultivating tenant shall be deemed to have paid the rent. Then
he entitled to the benefits of protection against eviction. On the other hand, if the tenant
failed to pay the rent within the time allowed by the court, the landlord may evict him as
provided in sub-section (4).
Eviction of cultivating tenant by the landlord
On the grounds mentioned u/s 3 (2) the landlord, may make an application to the
Revenue divisional Officer for evicting the cultivating tenant (sec.3 (4a). The reasons are
as we seen earlier,
a) failure to pay rent within the time prescribed by the act,
b) Causing damage or injury to land or crop,
c) Using the land for any purpose other than agricultural or horticultural
purpose and
d) Deniel of landlord’s title.
On receipt of such application, the Revenue Divisional Officer, will either allow the
application of the landlord or to dismiss it after he has held a summary enquiry into the
matter? If the application is allowed an order of eviction has to be passed. If it is dismissed
the proceedings again come to an end. However, if the ground of eviction is non-payment
of rent, the RDO (Revenue Divisional Officer) is clothed with power to allow the
cultivating tenant to deposit the arrears and costs as directed. The power is discretionary
76
CLC/AM/R/05
and while exercising the same it is not incumbent on the RDO to grant time. If the
cultivating tenant does not comply with the order, he may pass an order of eviction.
The RDO cannot direct the cultivating tenant to deposit such arrears of rent as have
become time barred under the law of limitation. Similarly, he has no power to remit the
rent due by a tenant on the ground of failure of crop Ramasamy gounder vs. Perianna
Mooppan.
Right to restoration of possession
Section 4 of the Act, a cultivating tenant who was in possession of any land on the
first Dec.1953 and who is not in possession thereof at the time of the commencement of
this Act is by an application to the RDO entitled to be restored to such possession.
When the cultivating tenant is not entitled to restoration of possession?
Section.4 (2) says that under the following circumstances, the cultivating tenant is
not entitled to restoration of possession.
1. If he is in possession when the Act came into force, either as owner or as tenant or
as both, of land exceeding the extent specified in the explanation or if had been assessed to
any sales tax or profession tax or income tax during 1953-54 or 1954-55, or
2. If the landlord after eviction such cultivating tenant from the land has been carrying
on personal cultivation on the land, provided that
i. the total extent of land held by the landlord does not exceed the extent specified
in the explanation, and
ii. the landlord has not been assessed to any Sales Tax, Profession Tax or Income
Tax during 1953-54 or 1954-55. Or
3. Where the landlord has bonafide admitted some other cultivating tenant
subsequent to 1st Dec.1953 to the possession of land and such tenant had cultivated the land
before the commencement of the Act. Provided that where such other tenant is in
possession, either as owner or as tenant or as both of any other land which exceeds the
extent specified in the explanation and the cultivating tenant who was evicted is not in
possession of any land or is in possession of any other land which is less than the extent
specified in the explanation, the cultivating tenant is entitled to restoration of possession.
77
CLC/AM/R/05
In short a tenant can sub-let the land after his enrolment and the tenant and landlord
can resume possession after their retirement or discharge.
For the purpose of claiming benefits u/s 4AA, the applicant in case his is landlord
under Sub-section (3), must be a landlord before he is enrolled as a member of the Armed
Forces to get resumption. The same principle will apply to the cultivating tenant also where
he is an applicant. A landlord who opts to serve the Armed Forces is given a special
privilege to get his land resumed on his discharge or retirement from service subject to the
ceiling area of the land. In short, it is in the nature of the restitution, since the landlord who
would otherwise enjoy the benefit of personal cultivation gets it suspended in order to serve
the Country in the Armed Forces.
Sub-section 4 (a) lays down the procedure for resuming the possession of the land.
Any person desiring to resume any land should apply for it to the RDO. The concerned
officer after holding summary enquiry will pass the necessary order. The RDO has a
78
CLC/AM/R/05
In any suit before any civil court for possession, if the defendant proves not only
that he is a cultivating tenant but also he is entitled to the benefits of the Act, the civil court
is bound to transfer it to the RDO and cannot proceed to try and dispose of it itself.
Revision by high court
Section.6B of the Tamil Nadu Cultivating Tenants Protections Act, 1955 speaks
about the power of revision by the High court. It says that the RDO’s court is subordinate
to the High Court for the purpose of sec.115 of the code of Civil Procedure, 1908 and his
order shall be liable to revision by the High court under the provisions of the Section. In a
case, for eviction for non-payment of rent, a preliminary order was passed by the Revenue
Court directing the tenant to deposit a certain sum together with costs on or before the date
specified. On the adjourned date, the tenant as absent and no payment or deposit was made.
Then Revenue Court passed order evicting from the land in the revision petition,
the tenant contended that the Revenue Court has failed to exercise its judicial discretion to
grant further time for payment of arrears and denial of a further chance makes the order in
question revisable u/s.6B. Held, that the exparte order becomes liable to be set aside by the
revisional court and order becomes revisable on the ground that a reasonable opportunity
should be given to the tenant for putting forth his case. The Revenue Court had to take the
matter afresh on file and deal with the matter on merits allowing both sides to adduce
evidence both oral and documentary P.Silamban Vs.G.Ramamurthy Iyer.
Exception to the lands owned by government
Section.8 of the Tamil Nadu Cultivating Tenants Protection Act, 1955, exempts the
lands owned or taken lease by Central, State Governments, Local Authorities and
Universities from its operations.
THE TAMILNADU CULTIVATING TENANTS (PROTECTION FROM
EVICTION) ACT, 1966
There was an unprecedented drought during 1965 and the cultivating tenants were
not able to pay the rent due to landowners. Therefore, The Tamil Nadu Cultivating Tenants
(Protection From Eviction) Act, 1966 (Tamil Nadu Act 11/1966) was enacted to provide
for protection from eviction of cultivating tenants who were in arrears of rent payable to
the landlords on account of failure of crops due to the unprecedented drought in 1965. This
80
CLC/AM/R/05
Act was in force for a period of two years from 20th April 1966 to 19th April 1968. (Tamil
Nadu State Administration Report 1972-1973 P.118).
THE TAMIL NADU CULTIVATING TENANTS (SPECIAL PROVISIONS) ACT,
1968 (Tamil Nadu Act 16 of 1968)
As it was felt that it would be difficult for the cultivating tenants to pay in one lump
sum the entire arrears of the rent outstanding on the 20th April 1968 after the lapse of Tamil
Nadu Act. 11/1966, another Act called, the Tamil Nadu Cultivating Tenants (Special
Provisions) Act, 1968 (Tamil Nadu Act 16/1968) was enacted to provide for the payment
of arrears of rent accrued and due to the landlord and outstanding on the 20th April 1968 in
four equal annual instalments on or before 1st April 1969, 1st April 1970, 1st April 1971 and
1st April 1972 along with current dues. (Tamil Nadu State Administration Report 1972-73
P.118). or in other words, with a view to extend the life of The Tamil Nadu Cultivating
Tenants (Protection From Eviction) Act, 1966 (Tamil Nadu Act 11/1966) intending to
give protection to the cultivating tenants from eviction The Tamil Nadu Cultivating Tenants
(Special Provisions) Act, 1968 was enacted with effect from 20th April 1968. It has been
laid down in the Act that any cultivating tenant is entitled to pay the total amount of arrears
of rent, which accrued to a landlord and outstanding on the 30th day of April 1968, in four
equal annual instalments without interest on or before the 1st April of each of the four years
following the 20th April 1968.
This is an Act to make special provisions in respect of certain arrears of rent payable
by cultivating tenants. By the Tamil Nadu cultivating tenants (Protection from Eviction)
Act 1966, the cultivating tenants were given protection from eviction on the ground of
arrears of rent. After the expiration of the said act, it will be difficult for the cultivating
tenants to pay in one lumpsum, the entire arrears outstanding on the 20th April, 1968. Then
the Tamil Nadu Government came forward to rescue the cultivating tenants to pay such
arrears in easy instalments. So, this The Tamil Nadu Cultivating Tenants (Special
Provisions) Act, 1968 is passed.
Section 3 protects the cultivating tenant from eviction on the ground of arrears of
rent for the period prior to 20th April 1968. Like The Tamil Nadu Cultivating Tenants
(Protection and Payment of Fair Rent Amendment) Ordinance 1958, which protects the
Kaiaeruvaramdars and Mattuvaramdars in the Tiruchirappalli district from eviction, the
81
CLC/AM/R/05
Special Provisions Act, 1968 protects specifically from the eviction of a cultivating
Verumpattamdar from his holding on the ground that he is in arrears of rent which accrued
due to the landlord before and is outstanding on the 20th April 1968. By the help of this
Act, he can pay the arrears of rent in four equal instalments. Failing which he will be evicted
according to the procedure established by law under this act.
THE TAMIL NADU CULTIVATING TENANTS ARREARS OF RENT (RELIEF)
ACT, 1972 (Tamil Nadu Act 21 of 1972)
It was found, that many tenants were unable to pay the arrears of rent within the
time given by Tamil Nadu Act, 16/1968 due to their indebtedness and poor economic
condition. Therefore, to provide rent relief to cultivating tenants, the Tamil Nadu
Cultivating Tenants Arrears of Rent (Relief) Act, 1972 (Tamil Nadu Act 21/1972) was
enacted for the wiping out of old arrears of rent due for the period upto 30 th June 1971; if
the cultivating tenants paid the rent due for the fasli year commencing on 1 st July 1971 and
ending with 30th June 1972 within a period of six months from the date of publication of
the Act in the Tamil Nadu Government Gazette. This act was published on the 11 th August
1972 and the time allowed had expired on 10th February 1973. (Tamil Nadu State
Administration Report 1972-1973 P.119)
The earlier enactments referred to above excepting the Tamil Nadu Cultivating
Tenants Protection Act, 1955 and the Tamil Nadu Cultivating Tenants Payment of Fair
Rent 1956, are of a general nature relating to the landlord and tenant and are enacted for a
limited purpose.
In 1972, this Act has been passed to provide relief to cultivating tenants in respect
of certain arrears of rent. It has been represented to the Tamil Nadu Government that the
cultivating tenants have borrowed or added to their debts during the years of drought and
that they are not in a position to pay arrears of rent due to their indebtedness and poor
economic conditions. Since, the tenants fail to clear the arrears of rent; landowners have
taken action against cultivating tenants for eviction and for recovery of arrears of rent.
When the Tamil Nadu Government considered it necessary as part of agrarian
reform to give relief to cultivating tenants from the burden of discharging arrears of rent,
on condition of payment of current rent enacted this landmark Act. This act removed the
82
CLC/AM/R/05
cultivating tenants’ fear of eviction for arrears of rent. So, their occupancy right is secured.
Sections 3 to 7 are to protect the interest of the poor peasants. This act is a milestone in the
achievement of protecting the cultivating tenants in Tamil Nadu.
After 7 years, the same kind of rent relief was granted by the Tamil Nadu
Cultivating Tenants Arrears of Rent (Relief) Act, 1980 as amended and the Tamil Nadu
Cyclone and Flood Affected Areas Cultivating Tenants Arrears of Rent (Relief) Act, 1980
as amended, permanent rent relief has been given to the cultivating tenants for payment of
accumulated arrears of rent according to which the arrears of rent for Fasli 1381 and earlier
Fasli 1382 and on fifth of the arrears of rent for Fasli 1383 to 1387 in the cyclone and flood
affected areas are to be paid in three instalments viz. 30th June 1989, 31st March 1981 and
30th June 1982. For the areas not affected by cyclone and flood that occurred in 1977, the
arrears of rent for Fasli 1381 and earlier 1382 and one third of arrears of rent for Fasli 1383
to 1385 are to be paid in three instalments viz. 30th June 1981, 31st March, 1982 and 30th
June 1982. (Tamil Nadu State Administration Report 1972-1973 P.119)
In the wake of widespread drought in Tamil Nadu and in the interest of the general
public that at the present time agriculturists should be spread off the distractors and
expenditure involves in litigation launched by creditors and in order that maximum possible
advantages may result to the State in the matter of production of food crops. The Tamil
Nadu Indebted Agriculturists (Temporary Relief) Act, 1975 (Tamil Nadu Act 10 of 1975)
enacted.
Sec.3 speaks about the relief given to the cultivating tenant. It says:
“I (a) All arrears of rent payable by a cultivating tenant to the landlord and outstanding on
the 30th June 1971 (hereinafter referred as arrears of rent) should be deemed to be
discharged whether are not a decree or order has been obtained, therefor, if such cultivating
tenant-
i. Has before the date publication of this act paid to the landlord or
deposited in the court or before the competent authority to the accounts
of the landlord or;
ii. Pays or deposits in the manner specified in clause (b) within six months
from the date of publication of this Act, or
iii. Is deemed to have paid or deposited under this Act,
83
CLC/AM/R/05
The whole of the rent due for other fasli year commencing on the first July 1971, and ending
with the 30th June 1972 (hereinafter referred to as the current year) ”.
Section 4 of the Act further says if any cultivating tenant makes any payment by
way of rent or deposited by way of rent in the Court shall be deemed to have paid or
deposited towards the current rent.
This Act specially lays emphasis that no suit for recovery of the debt shall be
instituted and no application for the execution of a decree or payment of money passed in
a suit for recovery of a debt.
THE TAMIL NADU CULTIVATING TENANTS (PROTECTION FROM
EVICTION) ACT, 1983. (Tamil Nadu Act 26 of 1983)
This Act was published in the Tamil Nadu Government Gazette on 2nd June 1983.
This Act 26 of 1983 was passed in order to provide for the protection from eviction of
cultivating tenants who are in arrears with respect to the rent payable to the landlords.
Section 1 (3) says "It shall be deemed to have come into force on the 1st day of July 1982
and shall remain in force upto and inclusive of the 15th day of January 1984.
Section 3 of the Act prohibits eviction of cultivating tenants on the ground of
arrears. It says during continuance of this Act,
i) no application shall be made by the landlords or Public Trusts for the eviction
of Cultivating Tenants from his holding on the ground that he is in arrears of rent, (ii) no
cultivating tenant shall be evicted by the landlord or Public Trusts in execution of a decree
or order of a Court on the ground that he is in arrears.
Section 4 of the Act stays all applications pending before the RDO. Section 5 is
relating to excluding the period of limitation prescribed for the suit for eviction. Section 7
provides the restoration of possession if he was evicted on or after 1.7.1982 but before
2.6.1983 on the ground of arrears of rent.
THE TAMIL NADU CULTIVATING TENANTS (PROTECTION FROM
EVICTION) ACT 1989 (Tamil Nadu Act 41 of 1989)
The object and provisions of this Act is similar to the Act passed earlier in 1983
(Act 26 of 1983). The date of publication was 24.11.89. This Act shall be deemed to have
come into force on the 1st day of October 1986 and remain in force up to 31st March 1990.
84
CLC/AM/R/05
The relief given to the cultivating tenants under the Tamil Nadu Cultivating Tenants
(Protection from Eviction) Act, 1983 is further given up to 31st March 1990. Section 3
prohibits eviction of the tenant in furtherance of execution proceedings and filing of
application for the eviction on the ground of non-payment of rent. Section 4 is relating to
stay of proceedings application and proceedings in execution of decrees. Section 5 is
relating to exclusion of time for limitation and Section 7 is for the restoration of possession
to the tenants.
THE TAMIL NADU CULTIVATING TENANTS ARREARS OF RENT (RELIEF)
ACT, 1990. (Tamil Nadu Act 38/1990).
The time limit given under the Act, 41/89 expired by 31st March 1990. Owing to
drought, three floods and seasonal fluctuations in the State, the tenants were not in a
position to pay the rents due to the landowners / public trusts. It was felt that there was need
to allow them time to rehabilitate themselves before they would be in a position to pay the
arrears of rent. Since, large amount of arrears of rent has accumulated due to protection
given to tenants over a long period of time, it will not be possible for the cultivating tenants
to pay the arrears in a lumpsum and they were in danger of being evicted on a large scale.
The Government have, therefore, enacted the Tamil Nadu Cultivating Tenants Arrears of
Rest (Relief) Act, 194 Nadu Act 38 of 1990) which came into effect from 10th October
1990, for giving relief to the cultivating tenant, by discharging him from the payments of
all arrears of rent payable to the landowner or the public trust for the fasli year ending with
30th June 1989 and for any previous fasli year and outstanding on the date of publication
of the proposed Act.
For this purpose he was given two options. The options are:
1) To pay the current rent in full and one fourth of the said arrears of rent without interest
or
2) To pay the current rent in full and one third of the said arrears without interest in five
equal annual instalments.
Section 5 of the Act provides the relief for the payment of arrears of rent and also
deals with option 1. Sub - section (3) says " Any cultivating tenant may pay to the landlord
or deposit to the court or before the competent authority to the account of the landlord the
85
CLC/AM/R/05
current rent and the one fourth of arrears of rent on or before the 31st day of March 1991.
"
“Any cultivating tenant may pay to the landlord or deposit in the Court or before
the competent authority to the account of the landlord. "
a) The current rent on or before the 31 " day of March 1991, and
b) The one third of the arrears of rent in five equal annual instalments as specified
below.
i) The first instalment, on or before the 31st day of March 1991.
ii) The second instalment, on or before the 31st day of March 1992
iii) The third instalment, on or before the 31st day of March 1993.
iv) The fourth instalment, on or before the 31st day of March 1994; and
v) The fifth instalment, on or before the 31st day of March 1995.
So, under this Act, the cultivating tenant has to choose any one of the options. In both the
options the payment of current rent is compulsory. In the option I, he pays ¼ of arrears of
rent in lumpsum, in the option II, he pays 1/3 of arrears of rent in five equal annual
instalments.
FORM – I
Every option for payment of arrears of rent must be given in writing by the
cultivating tenant and it should be intimated to the Special Deputy Collector (Revenue
Court) in Form I within two months from 10th October 1990. The Government
subsequently extended the time limit by another two months from 10th December 1990
through the Tamil Nadu Cultivating Tenants Arrears of Rent (Relief) Amendment
Ordinance, 1990 (Tamil Nadu Ordinance No.10 of 1990) published in the Tamil Nadu
Government Gazette, dated 9th December 1990. The cultivating tenants were given time
up to 9th February 1991 for filing their option. The option so exercised shall be final. The
proceedings for the eviction of cultivating tenants for the recovery of arrears of rent were
barred up to 31st March 1991.
FORM - II
Every deposit of current rent and arrears of rent under sub - section 2 of Section 5
or under sub - section (2) of Section 7 as the case may be made by the cultivating tenant in
86
CLC/AM/R/05
Form II and current rent and the arrears of rent must be deposited before the court within
specified time. Under Section 13, any cultivating tenant, who had been evicted for the non
- payment of rent on or after 1st April 1990, but before the date of publication of the Act,
an application in Form IV within three months from the date of such publication (i.e.) 10th
October 1990, he is entitled to be restored possession of such land and to hold it with all
rights.
THE TAMIL NADU CULTIVATING TENANTS (PAYMENT OF FAIR RENT)
ACT, 1956
Till 1956, there was no law in the State to regulate the rent payable by tenants to
their landlords. The landlords used to collect exorbitant rent from the farmers and enhance
it, at their sweet will and thereby harass the cultivating tenants. Consequently, the
cultivating tenants became indebted and they could not pay arrears of rent in time. In order
to provide more effective control over the rack renting by the landlords, the Government
felt it necessary to fix the fair rent. Further, by that time the Government passed the Tamil
Nadu cultivating Tenants Protection Act, 1955. This necessitated the regulation of the rent
payable by the Tenants and settlement of disputes.
In these circumstances, the Government passed the Tamil Nadu Cultivating Tenants
(Payment of Fair Rent) Act, 1956 and it came into force on 1st October 1956. This Act
fixes the fair rent payable by the tenants and affords adequate protection to the tenants
against the arbitrary and enhanced rent.
THE SALIENT FEATURES OF THE ACT
a) This Act provides the provision for rights and liabilities of cultivating tenants and
land owner;
b) Section 4 now fixes a simple Rule of fair rent payable by the tenant;
c) Kaiaeruvaramdar or mattuvaramdar is considered as cultivating tenant under this
Act;
d) This Act contains provisions for the constitution of Rent Courts and Rent
Tribunal;
e) A provision for the surrender of land by the tenant in excess of 6 2/3 acres of land
is now introduced;
f) This Act exempts crops like plantain or betal vines from its operation;
87
CLC/AM/R/05
g) The right of land owner to receive 1/5 th of straw or stalk of the crop is now
removed
What is fair rent?
Section 4 of the Act fixes what is called fair rent payable by the tenant to the
landowner. Clause (1) of Section 4 says "Fair rent shall be 25 per cent of the normal gross
produce or its value in money ". This sub - clause was substituted in the year 1980 by the
Act 17 of 1980. The clause (2) was omitted by the same Act of 1980. Previous to this
amendment, different yardsticks were used in fixing the fair rent depending upon the nature
of the land, supply of water and use of pumps etc. Further, before 1980 amendment, the
land owner was also entitled to one fifth of straw or stalk of all crops. Now, all these
provisions were removed. Sub - section (1) simplifies the Rule of fixing the fair rent.
Irrespective of nature of land, the fair rent is 25 per cent of the normal gross produce or its
value in money.
Sub - section 3 says, where the contract of tenancy provides for payment of a rent
lower than the fair rent payable, the contract rent alone payable during the contract period
and not the fair rent as fixed under this Act.
The fair rent may be paid either in
a) In cash or
b) In kind or
c) Partly in cash and partly in kind according to the terms of the contract (Sec 5).
In the absence of such contract, the fair rent may be paid at the option of the
cultivating tenant in any one of the above modes.
Where the tenant failed to exercise his option, within the time specified, the land
owner may specify the way in which the fair rent is to be paid. Where the crop raised is
paddy, the land owner has the right to insist that the rent shall be paid in kind.
Section 5 (2) says about remission in the rent under the adverse seasonal conditions.
Whenever adverse seasonal conditions result in the reduction of the gross produce from
any particular crop to the extent of more than 25 percent, the land owner is bound to remit
a proportionate part of the fair rent due to him from his cultivating tenant in respect of that
land for that period. For this purpose, an application must be made by the tenant claiming
88
CLC/AM/R/05
remission. The Rent Court may in the circumstances of the case, impose conditions as to
deposit of admitted rent which has become due.
The fair rent thus fixed under this Act will remain in force for five years (Section
6). However, the tenant may file an application before the Rent Court for the reduction of
fair rent on account of deterioration of the land by Bloods etc. Similarly, the land owner
may make an application to the Rent Court for the enhancement of fair rent on account of
improvements made by him in the land resulting the increase of yield. In case, any fair rent
is determined under this Act before the Amendment made in 1980 and such rent is in excess
of rent specified under Section 4, such rent may be reduced to the fair rent specified in
Section 4 as amended in 1980.
The fair rent fixed under this Act will take effect from the date of the application
made under the Act and not from the date of actual order of Court fixing fair rent. Section
7 of the Act speaks about the sharing of crops where the produce to be shared is grain, the
sharing is to be done at the threshing place in which threshing took place.
The rights and liabilities of the parties
The rights and liabilities of the tenant and land owner are based upon the principles
of natural justice. Section 3 (1) speaks about the liability of the cultivating tenant and the
right of the land owner. The liability imposed on the cultivating tenant is to pay the rent to
the land owner as fixed under the Act. The right of the land owner is to collect from the
cultivating tenant fair rent payable under the Act.
Special provision may be made in the agreement regarding irrigation of any land
and sharing the produce by the parties. The land owner is entitled to collect fair rent in spite
of any neglect or failure on the part of the tenant in raising the crop. Section 3(3). All the
cultivation expenses inclusive of cost of seeds, ploughing, manuring harvesting and
threshing should be borne by the cultivating tenant. Section 3 (4).
The other liabilities on the part of the land owner are: (1) to make all payments due
to Government and other local authorities like land tax etc. (2) to maintain the land and
wells in a state of proper repair. The land owner can claim compensation for damages to
land caused by the cultivating tenant. The land - owner may advance loan to the cultivating
tenant necessary for better farming like manuring the land. Such a loan advanced will be in
first charge on the share of the produce. Likewise, he can help his tenant with his consent
89
CLC/AM/R/05
by supplying chemical manures and oil cakes and recover the cost of the same from the
cultivating tenant.
Kaiaeruvaramdar and Mattuvaramdar
A special provision is made under Section 4A according to which Kaiaeruvaramdar
or mattuvaramdar is deemed to be cultivating tenant under this Act. In this connection we
have to see who is kaieruvaramdar or matturvaramdar. In certain parts of Tiruchirappalli
district, a peculiar kind of tenancy in respect of land called kaieruvaramdar or
mattuvaramdar exists. A Kaieruvaramdar is one engaged by a landlord to do ploughing and
watering operations or ploughing operation alone on land and is remunerated for such work
by a share in the crop raised on the land. Similarly, a mattuvaramdar is one engaged by
land owner to supply bulls for ploughing operations and other operations on the land and
receive remuneration for such work, a share in the crop on the land. In order to define the
conditions of engagement and to provide protection of kaieruvaramdar and mattuvaramdar,
an enactment known as Tiruchirappalli Kaieruvaramdar and Mattuvaramdar Act was
passed in 1958. Section 4A of this enactment says that with effect from the commencement
of the Tamil Nadu Cultivating Tenants Protection and Payment of Fair Rent (Amendment)
Ordinance, 1958, they deemed to be a cultivating tenant within the meaning of this Act.
Rent courts and rent tribunal
The Government may by notification constitute Rent Courts and Rest Tribunals for
the purpose of this Act, with jurisdiction over such areas as may be specified in the
notification (Section 8). Every Rent Court shall be headed by a person not below the rank
of Tahsildar. The Rent Court is a quasi-judicial body. But the Rent Tribunal is a judicial
body. The Tribunal is presided by the judicial officer not below the rank of District Munsif
[Section 8 (2)]. Either party may apply to the Rent Court for fixation of fair rent or for
deciding any dispute arising under this Act (Section 9) From every decision of a Rent Court,
an appeal shall, within such time may be prescribed, lie to the Rent Tribunal whose decision
will be final subject to revision if any under Section 11.
Exemption from this Act:
This Act of 1956, exempts the land which is used for raising as main crop plantain,
betal vines or any other crop which does not give any yield for a continuous period of two
90
CLC/AM/R/05
years or more from the time of cultivation (Sec.15). by Amendment Act, 1980, the crop
sugarcane is omitted from this section.
Surrender of land in excess of certain extent:
The provisions of this Act shall not also apply to any cultivating tenant who owns
or who cultivates either as tenant or as owner or as both an extent of land in excess of 6 2/3
acres (one veli) of wet land [Section 14 (1)].
Sub - section (2) of Section 14 says that; " Any cultivating tenant who owns or who
cultivates either as tenant or as owner or as both, an extent of land exceeding that specified
in sub - section (1) but not exceeding 10 acres of wet land may, by notice in writing
addressed to the land owner, relinquish at the end of the agricultural year ending in 1957
the tenancy, in respect of such portion of the land aforesaid as may be necessary to entitle
him to all the benefits of a cultivating tenant under this Act. Such cultivating tenant shall
be entitled to all the benefits of this Act till the end of the agricultural year ending in 1957
and shall thereafter entitled to all the rights of a cultivating tenant under this Act only on
such relinquishment.
For the purpose of computing the land 3 acres of dry land or 1½ acres of garden
land is taken as equivalent to one acre of wet land. Section14 (3).
THE TAMIL NADU AGRICULTURAL LANDS RECORD OF TENANCY
RIGHTS ACT, 1969
The object of the Act is to provide for the preparation and maintenance of the
Record of Tenancy Rights in respect of agricultural lands in the State of Tamil Nadu. The
implementation of tenancy laws in Tamil Nadu was very much retarded for want of
authentic record of tenancy rights. The conditions stipulated in the Tenants Protection Acts
for land owners to tender lease deeds to tenants annually was observed more in breach than
in its observance. The tenants were therefore, at the mercy of the land owners in
acknowledging their tenancy rights. Receipts were scarcely given for waram delivered by
the tenants. The land owners took action to evict the tenants forcibly, taking advantage of
the absence of a record of tenancy. Protection was therefore, needed to the tenants. Except
in very few cases, the leases were mostly oral and as hitherto there was no record to prove
the tenancy, the tenants found it difficult to establish their rights by recorded evidence, and
claim the protections given to them under the various tenancy laws.
91
CLC/AM/R/05
The Tamil Nadu Cultivating Tenants Protection Act, 1955, and the Tamil Nadu
Public Trusts (Regulation of Administration of Agricultural Lands) Act, 1961 provide inter
- alia that every tenancy agreement between a land lord and the cultivating tenant shall be
executed in triplicate. Despite these provisions many land lords and tenants prefer to keep
the leases oral and consequently a correct, complete and reliable record of tenancy rights
in the State was not available. The absence of a complete and reliable record of Tenancy
rights stands in the way of the enforcement of Legislative provisions which seek to provide
security of tenure to the cultivating tenants. The cultivating tenants are also denied credit
facilities from institutional agencies as they cannot establish their tenancy rights in the
absence of written record of tenancy rights.
The preparation of a complete and reliable record of tenancy rights was therefore
considered to be essential to safeguard the interests of the tenants. The Government
accordingly enacted the Tamil Nadu Agricultural Lands Record of Tenancy Rights Act,
1969 (Tamil Nadu Act 10 of 1969). This Act was initially brought into force in the districts
of Thanjavur, Tiruchirappalli and Madurai with effect from 19th December 1969. It was
extended to the rest of the State with effect from 8th September 1971.
As we have seen earlier, the object of this Act is to provide for the preparation and
maintenance of record of tenancy rights in respect of agricultural lands in the State of Tamil
Nadu.
Salient features of this act
1) This Act of 1969, elaborately describes the procedure to be followed in the
preparation of record of tenancy rights.
2) Section 4A empowers the Record Officer to take suo moto action when the land
owner or tenant fails to do their duty.
3) There is a provision for the constitution of Advisory Committees in order to help
the Record Officer in discharging his functions.
4) It also provides to impose penalty for failure to furnish information or for
furnishing false information to the Record Officer. - Section 11.
5) The newly inserted Section 16A ousts the jurisdiction of civil Court in respect
of any matter which the Record Officer or the District Collector is empowered by the Act
to determine.
92
CLC/AM/R/05
Before considering the very subject matter of the Act, namely the preparation and
maintenance of record of tenancy rights, it is necessary for the proper appreciation of the
various provisions of the enactment, to consider some of the definitions given under Section
2.
The expression ' cultivating tenant ' is defined under section 2 (8) (1). A cultivating
tenant means in respect of any area in the State (other than the Kanyakumari district),
a) Any tenant as defined under the Tamil Nadu Cultivating Tenants Protection Act,
1955 and the Tamil Nadu Public Trusts (Regulation of Administration of Agriculture
Lands) Act, 1961 and it includes,
b) Matuvaramdar and
c) A possessory mortgagor. The following are considered as the cultivating tenants:
1. a person who contributes his own physical labour or that of any member of
his family in the cultivation of any land belonging to another under a tenancy
agreement;
2. a person who continues in the possession of land after the determination of
tenancy agreement;
3. the heir of such person;
4. a sub - tenant;
5. any sub - tenant of sub - tenant who continues in possession of the land;
6. Mattuvaramdar;
7. Possessory mortgagor under the tenancy agreement. This definition does not
include a mere intermediary.
The term intermediary is also defined under Section 2 (3). Intermediary means any
person, who not being an owner or a possessory mortgagee, has an interest in land by virtue
of a tenancy agreement and is entitled by reason of such interest to possession thereof but
has transferred such possession to others.
Preparation of record of tenancy rights
The Section 3 of the Tamil Nadu Agricultural Lands Record of Tenancy Rights Act,
1969 lays down procedure relating to preparation of record of tenancy rights in detailed
manner.
93
CLC/AM/R/05
1) The procedure starts with the Notification issued by the Government. In this
Notification, Government will direct the preparation of a record of tenancy rights for such
village or villages.
2) The record should contain the following particulars namely:
a) The survey number or sub - division number, extent and local name, if any, of
the land;
b) The name and address of the landowner;
c) The name and address of the intermediary if any;
d) The name and address of the tenant cultivating the land; and
e) Such other particulars, as may be prescribed.
3. After the notification, the appointed Record Officer will publish a notice in the
village. In that notice he will inform the public that a record of tenancy is to be prepared
for that village and that the land owner, tenant of intermediary of every land which has been
let for cultivation should intimate in writing to him of his interest in such land.
4. Afterwards the Record Officer after giving reasonable opportunity to the parties
will prepare a draft record of tenancy rights. This record is prepared on the basis of
information: (1) given by the parties; or (2) obtained by the Record Officer under Section
9; or (3) furnished or recommended by the Advisory Committee.
5. After the completion of the preparation of the draft record of tenancy rights for a
village, such draft will be published in the District Gazette and it will be also served on to
the parties concerned.
6. The aggrieved person then may submit an application to the Record Officer
within the time prescribed for the rectification of any entry or for the inclusion of any
particulars in the draft record.
7. For this purpose the aggrieved person should furnish the documents as evidence
in support of his claim along with his application.
8. Afterwards the Record Officer after hearing representations from the parties will
pass the orders by accepting or rejecting the application. It will be communicated to the
parties.
94
CLC/AM/R/05
9. After the disposal of all the applications under sub - section (6) he will make
necessary alterations in the draft record of the tenancy rights for the village. Then he will
prepare final draft.
10. Final record will be published in the Tamil Nadu Government Gazette. This
record will be then called as approved record of tenancy rights. This approved record of
tenancy rights will be published in the District Gazette also in which the village is situated.
All these procedures are to be followed for the preparation of record of tenancy rights for
the village.
If any land has been let for cultivation, subsequent to the publication of the approved
record, the land owner, intermediary or the tenant having interest in such land after giving
all particulars, request the Record Officer for the inclusion of the land in the approved
record of tenancy rights. The Record Officer, after giving reasonable opportunity to the
parties concerned will pass necessary order.
Newly inserted Section 4A empowers the Record Officer to take motu action when the land
owner, intermediary or tenant having interest failed to intimate or make an application for
the inclusion of particulars relating to such land.
Constitution of advisory committee
For the purpose of advising the Record Officer in the discharge of his functions and
in the preparation of record of tenancy rights under Section 3, the Government will
constitute an advisory committee for every taluk in a district (Section 5A). This section was
inserted only in the year 1981.
Such committee will consist of following members:
a) One landless agricultural labour belonging to the Scheduled Castes or Schedule
Tribes;
b) One tenant; and
c) Three social workers.
They will hold the post for the period of three years and are eligible for other term not
exceeding six years.
The functions of the advisory committee
The functions of the Advisory Committee are:
95
CLC/AM/R/05
1) To gather information and particulars regarding the land situated in the taluk
with the name, address of the landowner, intermediary and the tenant cultivating such land;
2) To furnish the information and particulars so gathered to the Record Officer,
3) To make recommendations to the Record Officer; and
4) To perform such other functions as may be assigned.
The Record Officer will take into consideration, the information and particulars
furnished and so also recommendations made by the Advisory Committee before passing
the orders. If the Record Officer is of opinion, that the recommendation made by the
Committee is not acceptable, he shall record his reasons in writing and pass orders
accordingly.
The Act makes duty of furnishing information mandatory, when the Record Officer
makes the request to land owner, intermediary or tenant cultivating the land. The Act
further provides for the penalty for failure to furnish information and for furnishing false
information.
After publication of the approval record of tenancy rights, the parties are milled to
get certified copy of any entry in the approved record of tenancy. Any entry in the approved
record of tenancy rights shall be presumed to be true and correct until the contrary is proved
or a new entry is lawfully substituted therefor- Section 15.
Bar of jurisdiction of civil court
Section 16A is an important section which ousts the jurisdiction of civil Courts in
pending matters. It says no civil Court shall have the jurisdiction in respect of any matter
which the Record Officer, the District Collector or other officer of authority empowered by
or under this Act to determine. No injunction shall be granted in respect of any action taken
or to be taken by such officer in pursuance of any power conferred under this Act.
ln Munandi vs Rajangam Iyer it is pointed out that the Civil Courts' jurisdiction is
expressly excluded in respect of any matter which the Record Officer, District Collector or
other officer empowered by or under the Act has to determine. It is further pointed out in
Periyathambi Gounder vs Dutrict Revenue Officer that in all matters which may arise
incidental to the determination of the matters mentioned in Section 3 (2) of the Act, the
Record Officer or the appellate or revisional authority cannot be said to have exclusive
96
CLC/AM/R/05
jurisdiction and with reference to such matters the jurisdiction of the Civil Courts cannot
be said to have been barred or ousted under Section 16A of the Act.
Therefore it is evident that the Record Officer has exclusive jurisdiction under the
Act only to draw up the particulars in the record of rights. To that extent and to that extent
alone, the Civil Courts jurisdiction is excluded ousted and barred. The bar of Civil Courts '
jurisdiction extends no further. The Record Officer can undoubtedly exercise powers to
investigate with ancillary matters and the Courts ' jurisdiction is not thereby excluded under
Section 16A on those matters.
Thus the Record Officer may have the power to decide whether an individual is
cultivating the land. But this is an incidental matter over which his jurisdiction is not
exclusive that is to say, it does not exclude the jurisdiction of civil courts - Periathambi
Goundar vs District Revenue Officer and V.S. Alwar lyyangar vs Guruswamy Thevar.
The order of declaration as to cultivating tenant with possession by the Revenue
Authority without considering the implication of decision of C Court held to be improper
matter remitted back for proper consideration in Dhanalakshmi vs. The District Revenue
Officer, Trichy and others.
In case, the action before the Civil Court had been instituted before Section 16A
was inserted, the Act has no application - Sankaralinga Tur vs Thirumalammal.
THE TAMIL NADU OCCUPANTS OF KUDIYIRUPPU (CONFERMENT OF
OWNERSHIP) ACT, 1971
Unless the man who cultivates the land gets his due from out of the produce of the
land he will not be interested in producing the food and thus meet the demand of his
Countrymen. In order to create a living interest in him for the land he cultivates he must be
given fixity of tenure, adequate margin of profit, protection of tenancy, protection of
kudiyiruppu etc. So to improve the position of tenants, the Government introduced series
of Legislations.
The Pannaiyal system in vogue in the Country was something in the nature of
bonded labour, families of farm servants indebted to the land owner, serving him for
generations and living in the house sites provided by him. Dismissal of a Pannayal from a
farm carried with it, the eviction of family from the house site which he was occupying.
Besides, the cultivating tenants, there were other occupants who had put up their houses
97
CLC/AM/R/05
(kudiyiruppu) either in the site belonging to the land owners for whom they are doing
cultivation or on Government lands.
Two enactments for the occupants of kudiyiruppu
Accordingly Government decided that the occupants of kudiyiruppu should be
given protection from eviction. Apart from this, Government of Tamil Nadu further decided
to confer ownership for the occupants of kudiyiruppu. Hence, two enactments were passed,
one in the year 1961, to give protection from eviction and another in the year 1971, to
confer ownership on the occupants of kudiyiruppu.
THE TAMIL NADU OCCUPANTS OF KUDIYIRUPPU (PROTECTION FROM
EVICTION) ACT, 1961.
In the year 1961, the Madras Occupants of Kudiyiruppu (Protection from Eviction)
Act, 1961 (Act 38 of 1961) was enacted as a temporary measure to be in force for a period
of three years, the idea being to have it replaced by an Act to confer permanent rights on
occupants of kudiyiruppu. It was felt that this question was linked with the question of
conferment of rights on tenants of agricultural lands to which the house sites are
appurtenant. It was also felt that a satisfactory and enduring solution on the question of
conferring permanent rights of kudiyiruppu can be found only after the law dealing with
ceiling on land holdings had been fully implemented and the surplus lands had been taken
over, and after the Ryotwari Settlement of Inam Estates, Minor Imams and lease holds had
been completed. As this would take some time, the Government in 1964 extended the life
of the Principal Act by the Amendment Act of 1967. In 1971, Legislation was passed
conferring permanent occupancy rights on occupants of kudiyiruppu, thus assuring right of
ownership on the residential premises of the agricultural population as a permanent
measure.
The Tamil Nadu Occupants of Kudiyiruppu (Protection from Eviction) Act, 1961,
protects the interests of persons occupying kudiyiruppu as on 31st March 1959 from
eviction of their kudiyiruppu by their landlords. The Tamil Nadu Act 38/1961 came into
force on the 29th November 1961.
According to Section 3 of the Act of 1961, no person occupying any kudiyiruppu
shall be evicted from such kudiyiruppu. Any person occupying any kudiyiruppu shall be
98
CLC/AM/R/05
entitled to continue to occupy the kudiyiruppu on terms and conditions not less favorable
than those applicable to him on the date on which he occupied such kudiyiruppu.
THE TAMIL NADU OCCUPANTS OF KUDIYIRUPPU (CONFERMENT OF
OWNERSHIP) ACT, 1971.
This Act was passed in the year 1971. The object of the Act is as preamble says: '
to provide for the conferment of ownership rights on occupant of kudiyiruppu in the State
of Tamil Nadu '. This Act consists of 27 Sections and one Schedule. It was subsequently
amended in the years 1974, 1976, 1986 and 1990. The homesteads are assigned free from
all encumbrances. The compensation is paid by the Government.
Salient features of this act
1. The first and foremost feature of this enactment is, as preamble says, ' conferment
of ownership rights on occupant of kudiyiruppu ' in the State of Tamil Nadu.
2. Section 3A of Tamil Nadu Occupants of Kudiyiruppu (Conferment of
Ownership) Act provides a provision of alternative site, in case conferment of ownership
cause, inconvenience for convenient enjoyment of such land as a whole by the owner of
such land.
3. The Authorised Officer has been empowered under Section 3B to decide:
a) Whether a person is an agriculturist or agricultural labourer;
b) Whether any land is an agricultural land; or
c) Whether the site is a kudiyiruppu; or
d) Whether alternative site is necessary and so on.
4. Every person having any interest in any vested kudiyiruppu superstructure is
entitled to receive compensation under Section 6.
5. This Act imposes duty on transferor and transferee to give notice to the
Authorised Officer when the site is transferred.
6. The newly inserted Section 15 A, prohibits sale, mortgage, lease or other
alienations by the occupant of kudiyiruppu for the period of ten years from the date of
commencement of the Act. Further the Authorised Officer is empowered to declare such
alienation as null and void or illegal and to take possession of such kudiyiruppu.
7. Section 17 of the Act enables the Government to acquire the land used by the
occupants of kudiyiruppu for a common purpose.
99
CLC/AM/R/05
8. Like other tenancy Acts, this Act also ousts the jurisdiction of Civil Courts, with
respect to any matter the Authorised Officer is empowered by or under this Act.
Definitions under this act
For the better appreciation of the various provisions of this Act, it is necessary for
us to consider definitions given under Section 2.
Who is agricultural labourer?
According to Section 2 (1), an agricultural labourer is a person whose principal
means of livelihood is the income he gets as wages for his manual labour on agricultural
land but does not include a plantation labour.
Agricultural land
The expression agricultural land is also defined under Section 2 (2) of this Act. According
to it, agricultural land means any land used for any of the following purposes, namely:
a) Horticulture;
b) The raising of crops, grass or garden produce;
c) Grazing;
d) The raising of manure crops;
e) Dairy farming;
f) Poultry farming;
g) Livestock breeding;
h) Growing of trees.
It further says that it will include any land used for any purpose subservient to the
above purposes, any forest land, pasture land, orchard and tope. However, the expression
agricultural land does not include
i) Plantain,
ii) Land held for ancillary purposes of plantation or
iii) House site or land used exclusively for non - agricultural purposes.
According to this Act, an agriculturist is a person who cultivates agricultural land by the
contribution of his own manual labour or of the manual labour of any member of his family.
Further, according to explanation I, the person who occupies the kudiyiruppu is presumed
as an agricultural labourer or an agriculturist. This is only a presumption till the contrary is
proved.
100
CLC/AM/R/05
three clauses. Clause (1) confers ownership rights on the occupants of kudiyiruppu. It
simply says that any agriculturist or agricultural labourer who was occupying any
kudiyiruppu on 1st April 1990, either as tenant or as licensee shall with effect from the date
of the commencement of this Act, be owner of such kudiyiruppu and such kudiyiruppu
shall vest in him absolutely free from all encumbrances.
For the purpose of acquiring ownership rights over the site under sub section (1),
the following conditions are to be satisfied:
1) The person claiming the benefits of the Act must be an agriculturist or
agricultural labourer.
2) He must be the occupant of kudiyiruppu on 1st April 1990.
3) He must be there only as tenant or as licensee.
4) The kudiyiruppu must be one as defined under Section 2 (8) of the Act
5) He should apply for the ownership rights, within the time prescribed.
The person claiming the benefit must prove that he is an occupant of a kudiyiruppu
as tenant or as licensee. Therefore, it is clear that there must be tenancy agreement with
respect to the site. The term tenant is defined under Section 2 (11). According to it, tenant
means any person who has paid or has agreed to pay rent or other consideration for his
being allowed by another to enjoy the land of the latter under a tenancy agreement express
or implied and includes his heirs and legal representatives. Therefore, it is clear from this
definition, that it speaks about tenancy of the land only.
Section 3 (2) says that in case the superstructure belongs to any person other than
the occupant, the superstructure shall also vest with the occupant free from all
encumbrances. Clause (2) speaks about the two persons, (i) the occupant of the site (ii)
owner of the superstructure. There ought to be a dwelling house or a hut over the site. The
dwelling house or hut could belong either to the occupant or to any other person other than
the occupant - may be owner of his site also. In case the occupant is a tenant for both site
and superstructure, this provision will not apply. The agriculturist can claim that the site of
the dwelling house or hut in his occupation is a kudiyiruppu only if he is a tenant or a
licensee in respect of site alone T.K.Narayana Pillai vs Naganatha Iyer.
The definition does not apply to a pucca building which an agriculturist may take
on lease. The demise by way of lease or licence ought to have been of the site alone. Only
102
CLC/AM/R/05
103
CLC/AM/R/05
provisions of Part III of the Land Acquisition Act, 1894. There is a similar provision under
this Act also.
Payment of compensation
After the amount of compensation has been determined, the Government will on
behalf of the occupant of the kudiyiruppu pay the amount to the persons entitled thereto.
(a) if the persons entitled to the compensation do not consent to receive it or (b) if there is
no person entitled to alienate site or superstructure or (c) if there is any dispute as to title,
then the Authorised Officer will deposit the amount in the Court. The Court will deal with
the amount in the manner laid down in Sections 32 and 33 of the Land Acquisition Act
1894.
The amount of compensation as finally determined will be paid either in cash or in
bonds or partly in cash and partly in bonds by the Government - Section 13.
Recovery of compensation
Section 14 of the Act speaks about the liability of the occupant who has become
owner of the kudiyiruppu by virtue of this Act is to reimburse the Government, the amount
of compensation paid by the Government. The occupant of kudiyiruppu in whom the
kudiyiruppu or superstructure has vested can reimburse the Government by paying in
instalments. The amount payable to the Government under this Act will be recovered as if
it were an arrears of land revenue.
Transfer of title and notice of such transfer
Section 15 of the Tamil Nadu Occupants of Kudiyiruppu (Conferment of
Ownership) Act, 1971 imposes duty upon the transferor and transferee to give notice of
transfer of title over the property. When the title of the person who is primarily liable to
reimburse the Government, is transferred, both the transferor and transferee should give
notice of transfer within three months to the Authorised Officer. Likewise, if the person
primarily liable to reimburse the Government dies, his heir should give notice of his death
within one year from the date of death of the deceased. The effect of failure of giving notice
is that he should continue to make payment in respect of kudiyiruppu till he gives notice to
the Authorised Officer.
Prohibition on alienation of kudiyiruppu or superstructure
106
CLC/AM/R/05
Section 15A deals with ban on alienation of kudiyiruppu by the occupants. There
are four clauses under this Section. Clause (1) deals with prohibition on alienation of
kudiyiruppu and other clauses deal with consequences of such alienation and steps taken
by the Authorised Officer in this regard.
According to clause (1) without previous sanction of the Authorised Officer, no
occupant in whom ownership vested, shall sell, mortgage, lease or otherwise alienate the
whole or any portion of such kudiyiruppu or superstructure for a period of ten years from
the date of the commencement of this Act. This ban applies even to his heir or legal
representatives.
In contravention to sub - section (1) if any alienation is made, Authorised Officer
after making an enquiry, by an order will declare such alienation as null and void. The
kudiyiruppu or superstructure will, as penalty, be forfeited and vest in Government free
from all encumbrances.
Similarly, if any agriculturist or agricultural labourer holds such kudiyiruppu or
superstructure in benami and allows any other person to occupy such kudiyiruppu or
superstructure, the Authorised Officer will declare such occupation as illegal, after
following all the necessary formalities. On such declaration, the kudiyiruppu or
superstructure will be forfeited to as penalty and vest in, the Government free from all
encumbrances. Then, it is duty of such occupant of kudiyiruppu or any other person in
possession to vacate such kudiyiruppu and hand over possession immediately after such
vesting in the Government. If such persons refuse or fail to vacate and hand over the
possession of such kudiyiruppu or superstructure, the Authorised Officer will evict such
person and take possession of such kudiyiruppu or superstructure.
Acquisition of land for common purposes
Section 17 of the Act empowers the Government to acquire the land that is used by
the occupants of kudiyiruppu immediately before the date of commencement of the Act for
a common purpose. Necessary formalities prescribed under this Section are be followed for
such acquisition. The common purpose may be use of land for road, pathway, threshing
floor and cattle shed. The Government will make available the land under this Section to
the occupants of kudiyiruppu to be used for the same common purpose for which it was
107
CLC/AM/R/05
used. Every person having any interest in any land acquired is entitled to receive and be
paid compensation.
Offences by companies
Section 21 of the Tamil Nadu Occupants of Kudiyiruppu (Conferment of
Ownership) Act, 1971 deals with the offences committed by the companies. It says if any
person committing an offence under this Act, is a company, every person, who, at the time,
the offence was committed was in charge of, and was responsible to, shall be deemed to be
guilty of the offence.
Bar of jurisdiction of civil courts
As in the other tenancy laws, in this Act also, the jurisdiction of Civil Court is
ousted. According to Section 23, Civil Court has no jurisdiction in respect of any matter
which the Government are, or the Authorised Officer is empowered by or under this Act,
to determine. Further it cannot grant injunction in respect of any action taken or to be taken
in pursuance of any power conferred by or under this Act.
For example, the question whether any agriculturist or agricultural labourer is in
possession of kudiyiruppu has necessarily to be decided under Section 4 of the Act by the
Authorised Officer. A conjoint reading of Section 4 and Section 23 indicates that if an
agriculturist or agricultural labourer raises a dispute that he is in possession of kudiyiruppu
on the relevant date, he has to approach the Authorised Officer concerned, for a decision
on that point and cannot go before a Civil Court. Kalyanasundaram Udayar vs Pazhaniappa
Udayar.
The combined effect of the provisions of Section 3B and Section 23 is that in the
field exclusively earmarked for the Authorised Officer, the Civil Court's jurisdiction is
taken away. Further, a reference to Section 5 of the Act will disclose that it provides an
appeal to the District Collector or such officer as may be specified by the Government in
this behalf against the decision of the Authorised Officer made under Section 3B of the
Act. The questions to be determined by the Authorised Officer under Section 3B are within
his exclusive jurisdiction. The issues, whether any person is an agriculturist or an
agricultural labourer or whether any site is a kudiyiruppu are to be determined by the
Authorised Officer under Section 3B and the Civil Courts jurisdiction is barred in respect
of such matters. R. Veerappan vs Shanmugavelu.
108
CLC/AM/R/05
In Thangavelu Naicker vs Muthukumara Chettiar, it was held that the plaintiff came
forward with a suit for injunction asserting that he is an agriculturist in possession of
kudiyiruppu and as such his possession should be protected by the issue of an injunction.
Such a suit was held to be barred by Section 23 of the Act as the plaintiff himself seeks a
decision from the Civil Court that he is an agriculturist in possession of kudiyiruppu.
UNIT- IV
THE TAMIL NADU LAND REFORMS (FIXATION OF CEILING ON
LAND) ACT, 1961
The Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961 is an
important piece of agrarian Legislation. This Act fixes a ceiling on the holdings of
109
CLC/AM/R/05
agricultural lands and provides for the acquisition of surplus lands and also deals with other
matters connected therewith in the State of Tamil Nadu.
The object of the act:
The broad object of this enactment has been spelt out in its Preamble itself. It is
pointed out in the Preamble, that the Constitution of India, under Article 39 (b) and (c) lays
down that the State should in particular, direct its policy towards securing that the
ownership and control of the material resources of the community are so distributed as best
to subserve the common good and that the operation of the economic system does not result
in the concentration of wealth and means of production to the common detriment. It is
pointed out in (State of Tamil Nadu vs Narendra Dairy Farms (P) Ltd. that “the land ceiling
Act had been enacted to give effect to the Directive Principles of State Policy in Article 39
of the Constitution. Article 39 deals with the State directing its policy towards securing
ownership and control of material resources of the community with a view to secure
equitable distribution in such a manner as to subserve common good in order that
concentration of wealth and means of production to common detriment in the hands of a
few did not result ".
The Preamble further says, that there is limited area of agricultural land is available
in the State and there is great disparity in the ownership of agricultural land. The lands are
concentrated in certain persons. Therefore, the disparity must be reduced. For this purpose,
it is necessary to fix a ceiling on the agricultural holdings and acquire the agricultural land
in excess of the ceiling area and it must be distributed to the landless and other persons
among the rural population. Such distribution will subserve the common good, increase
agricultural production and promote social and economic justice. So, it is clear that this Act
has been enacted in order to subserve the common good increase agricultural production
and promote social and economic justice, land ceiling has to be fixed and excess land to be
acquired and it should be distributed to the landless. The fixing of land ceiling, acquisition
of excess land and its distribution to the landless rural population are the prime objects of
this Act.
Historical background:
The State of Tamil Nadu took suitable Legislative measures step by step to
implement the policies advocated by the Centre and recommended by the Planning
110
CLC/AM/R/05
Commission of India. In fact Legislative measures in that direction had been on the anvil
in our State since 1948. The Madras Cultivating Tenants Protection Act entered the Statute
Book in 1955 seeking to protect the tenants against the eviction as a follow up of the
Thanjavur Tenants and Pannayals (Protection and Fair Rent) Act, 1952, fixing the quantum
of rent payable by a tenant to the land owner. The Tiruchirappalli Kaiaeruvaramdar and
Mattuvaramdar Act, 1958 defining the conditions of employment of Kaiaeruwaramdar and
Mattuvaramdar were measures taken in the direction of protecting the rights of such
persons.
The Act of 1961 which takes retrospective effect from 6th April 1960 is a self -
contained Code. This Principal enactment fixed a ceiling on the holding of agricultural land
and provided for the acquisition of surplus land. The ceiling area for a person and for a
family consisting of not more than five members was 30 standard acres. The
implementation of the Act practically commenced on 2nd October 1962. The Supreme
Court in its judgment on March 9, 1964 in Krishnasamy vs State of Madras struck down
the entire Act because Sections 5 and 50 violated Article 14 of the Constitution of India.
On June 20, 1964 the Parliament in exercise of its power, passed the Constitution (17th
Amendment) Act 1964, including the Act in the Ninth Schedule of the Constitution. From
July 1964, the Act is being implemented vigorously. The provisions of the Tamil Nadu
Land Reforms Act were amended subsequently from time to time. The Amendment Act
1970, the Act of 41/71, Amendment Act, 10/72, Amendment Act 20/72, Amendment Act
37/72, Amendment Act 39/72, Amendment Acts 7/74, 10/74, 11/74, 15/74, 32/74,
Amendment Act 11 of 1975, Act 27/1975, Act 25 of 1978 were passed subsequently
relating to ceiling area, compensation etc. Further, it was amended in the years 1979, 1980,
1981, 1984, 1986, 1987, 1988, 1989, 1994 and 1996.
1) This Act is a self - contained Code and deals with ceiling on land holding in a
comprehensive manner.
2) The ceiling area under this Act is 15 standard acres in the case of every family
consisting of not more than five members and subject to the maximum of 30 acres, where
the family consists of more than 5 members. Previously it was 30 standard acres for a family
subject to an overall ceiling of 60 standard acres. The ceiling area is reduced to 15 acres
now - Section 5 (1).
3) Initially, trusts were exempted from the operation of the Act. Later, a distinction
was introduced in 1972 between public and private trusts and in public trusts between
religious trusts of a public nature and charitable or educational Trust as Trust of public
nature. Lands held by religious trusts of a public nature or by religious institutions are
exempted from the operation of the ceiling area - Section 2. Land owned by a private Trust
is deemed to be land owned by the beneficiaries under the Trust.
4) The term family is defined under Section 3 (14) of the Act as comprising the wife
or husband -minor sons, unmarried daughters and minor grandsons and unmarried
granddaughters in the male line whose parents are dead.
5) This Act fixes ceiling area for the educational institutions separately under
Section 5 (1) (c) ranging from 10 acres to 40 standard acres.
6) This Act not only fixes the ceiling area but also prohibits to hold land in excess
of the ceiling area on or from the date of commencement of the Act - Section 6.
7) Elaborate procedure has been laid down under Section 8 for furnishing return by
a person holding land in excess of the ceiling area. Further, it lays down procedures to be
followed in the preparation and publication of draft and final statements.
8) Section 22 declares that any transfer or partition made on or after the date of
commencement of the Act, but before the Notified date is void whether such transaction is
bona fide or not.
9) The Tamil Nadu Land Board has been constituted under Section 24 vested with
power of deciding the question of future acquisition of land interspersed among or
contiguous to any plantation.
10) Sections 37A and 37B enable industrial or commercial undertakings or public
Trust to hold excess for their expansion.
112
CLC/AM/R/05
11) Section 50 deals with the question of determination of amount payable for the
land acquired by the Government. For the surplus lands Notified before 27th October, 1978
compensation was being determined on the basis of the net annual income from the surplus
lands. But after 17th October 1978 the amount payable is determined based on the Land
Revenue assessment.
12) Special provisions have been made under Chapter VIII for the cultivating
tenants who are holding land in excess of ceiling area of 5 standard acres.
13) Exemptions are granted to certain categories of land from the operation of this
Act under Chapter IX.
14) To speed up implementation of the land reform measures, provisions have been
made for the constitution of the Tamil Nadu Land Reforms Special Appellate Tribunal
under Article 323 B of the Constitution of India and vested with power of hearing appeals
and revisions against the orders passed by the Land Tribunals. The Land Tribunals are
constituted under Section 76 of the Act.
15) As in the other tenancy Laws, the jurisdiction of the Civil Courts is ousted with
respect to any matter which is by or under this Act required to be decided or dealt with by
the authorized officer, the Land Board, the Land Commissioner, the Land Tribunal or the
Special Appellate Tribunal - Section 77G.
16) The provisions have been made under Chapter XIII for the disposal decrease in
number of members of the family.
17) Section 96 clarifies that the ceiling area is not affected because of decrease in
number of members of the family.
Definitions under the act:
Section 3 of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961
deals with definitions of various terms. This Section defines as many as 47 terms. Let us
consider some important definitions here.
Clause 1 of Section 3 defines the term ' agriculture '. This definition is similar to
definition of agricultural land under the Tamil Nadu Occupants of Kudiyiruppu
(Conferment of Ownership) Act, 1971. The term ' agriculture ' includes
a) Horticulture,
b) The raising of crops, grass and garden produce;
113
CLC/AM/R/05
c) The use by an agriculturist of land held by him, or part thereof for grazing;
d) The use of any land for the purpose of raising manure crops;
e) Dairy farming;
f) Poultry farming;
g) Livestock breeding and
h) Growing of trees.
Section 3 (10) defines term ' cultivating tenant '. This definition is similar to the
definition under the Tamil Nadu Cultivating Tenants Protection Act, 1955. According to
this Act, ‘Cultivating Tenant’.
i) Means a person who contributes his own physical labour or that of any member
of his family in the cultivation of any land belonging to another, under a tenancy agreement,
express or implied; and
ii) Includes
a) Any such person who continues in possession of the land after the determination
of the tenancy agreement, or
b) The heir of such person, if the heir contributes his own physical labour or that of
any member of his family in the cultivation of such land, or
c) A sub - tenant if he contributes his own physical labour or that of any member of
his family in the cultivation of such land; but
iii) Does not include a mere intermediary or his heir. This definition includes apart
from a person or his family member, a tenant after the determination of the tenancy, his
heir, a sub - tenant also (for further detailed discussion refer the chapter on the Tamil Nadu
Cultivating Tenants Protection Act 1955).
Section 3 (14) defines the term ‘family’.
Family in relation to a person means, the person, the wife or husband as the case
may be, of such person and his or her –
i) Minor sons and unmarried daughters; and
ii) Minor grandsons and unmarried granddaughters in the male line, whose father
and mother are dead.
114
CLC/AM/R/05
In this connection this section speaks about persons governed by the Hindu Law
and persons governed by any other law. ‘Family ' in relation to a person means the person,
the wife or husband as the case may be, of such persons and his or her-
i) Minor sons and unmarried daughter and
ii) Minor grandson and unmarried granddaughters in the male line, whose father
and mother are dead.
In the case of persons governed by Hindu Law, however, minor son or minor
grandsons shall not include persons who are parties to a partition which has been taken
place or preliminary partition decree has been passed. In the case of unmarried daughter
and granddaughter it will not include unmarried daughter or unmarried grand daughters
i) in whose favour any land has been voluntarily transferred by either of whose
parents or grandparents on account of natural love and affection or
ii) In whose favour a preliminary decree for partition has been passed before the
notified date.
In the case of persons governed by any other than Hindu Law, ‘minor sons’,
‘unmarried daughters’, ‘minor grandsons’, and ‘unmarried granddaughters’ shall not
include ‘minor sons’, ‘unmarried daughters’, ‘minor grandsons’ and ‘unmarried
granddaughters’ –
i) in whose favour any land has been voluntarily transferred by either of whose
parents or grandparents on account of natural love and affection; or
ii) in whose favour a preliminary decree for partition has been passed before the
notified date.
The term ' intermediary ' is defined under Section 3 (21) of this Act. According to
this, intermediary is any person who, not being an owner or a possessory mortgagee, has
an interest in land, as is entitled by reason of such interest, to possession thereof, but has
transferred such possession to others. This definition is similar to the definition under
Section 2 (3) of the Tamil Nadu Agricultural Lands Record of Tenancy Rights Act, 1969.
The term land means ' agricultural land ' that is to say, land which is used or capable
of being used for agricultural purposes or purposes subservient thereto and includes forest
115
CLC/AM/R/05
land, pasture land, plantation and tope but does not include house site or land used
exclusively for non - agricultural purposes - Section 3 (22).
The term ' orchard ' means an enclosure or assemblage of fruit or nut bearing trees,
constituting the main crop therein, whether of spontaneous or artificial grounds, but does
not include trees on such lands as are not within or adjunct to such enclosure or assemblage.
The explanation to this clause says the expression fruit or nut bearing trees shall not include
plantain tree - Section 3 (32). This explanation was added in the year 1974. Plantain is not
a fruit bearing tree as contemplated in Section 3 (32) of the Act. Once it is held that plantain
is not a fruit bearing tree, it necessarily follows that the enclosure wherein the crop is raised
will not be an orchard - (State of Madras vs Ramani Iyer, Govindasamy Padayachi vs
Suryanarayanaswami.
The term ' public trust ' and ' religious institutions ' are defined as follows: ' Public
trust ' means a Trust for a public purpose of religious, charitable or of an educational nature;
' religious institution ' means any
1) Temple,
ii) Math;
iii) Mosque; or,
iv) Church which is dedicated to, or for the benefit of, or used as of right by the
public as a place of religious worship. -Section 36 B
This Act which seeks to fix the ceiling on agricultural land holdings exempts the
lands held by existing religious institution or religious Trust of public nature. Section 2 of
the Act deals with this aspect. For the purpose of this section
a) Where a public Trust in existence on the date of commencement of this Act, has
been created both for the public purpose of a religious nature and for any other public
purpose; or
b) Where the income from a public Trust in existence on the date of the
commencement of this Act is appropriated both for a public purpose of a religious nature
and for any other public purpose, such public Trust shall be deemed to be a religious Trust
of a public nature.
What is necessary for the purpose of getting exemption under this Act, is it must be
a religious Trust of a public nature. So it clearly excludes the institution which is purely
116
CLC/AM/R/05
charitable one. To bring the matter within the ambit of ' religious Trust of a public nature ',
the dedication of the property must be for religious poses. The link between the practice of
religion and the utilisation of the property must be evident. The utilisation of the income
from the property must be for the practice of the religion in question or otherwise for
religious purposes. In order to claim total exemption from this Act, it must be a religious
Trust of a public nature. May be, there could be cases where the Trust could be both
religious as well as charitable. Such a contingency is contemplated and provided for under
Section 3 (2) of the Act, when it says that the public Trust could be both for a public purpose
of a religious nature and for any other public purpose. But the presence of a religious
purpose - may be along with other purposes - is a condition precedent so as to attract the
total exemption under Section 2 (1) of the Act Hajia Aiysha Nachiyar Kalvi Arakattalai vs
State of Tamil Nadu. From this it is evident that it may be either for religious purpose only
or may be religious purposes along with any other public purpose which may include
charitable purpose.
It has been held in Vedapadasala Trust vs State of Tamil Nadu, that the imparting
of instruction in Vedas and Agamas is certainly of religious nature. Therefore, whenever a
Trust which is of a public nature provides for the imparting of instructions in Vedas and
Agamas, certainly that will be of a religious Trust of a public nature and the imparting of
instructions in Vedas and Agamas cannot be anything other than of a religious nature.
Further, it is pointed out in Rajammal vs Authorised Officer that if imparting of instructions
in Vedas and Agamas could be characterised as of religious nature, recitals of Vedas during
Adi Pooram festival in the temple are nothing but culminations of such learnings, a sort of
practice by way of recitals of what has been learnt and hence they cannot but be religious
in nature.
The Trust which has been created with the object of running a madarasa wherein
religious instructions are to be imparted to the Muslim boys and girls is a public Trust of a
religious nature and it will therefore, come under the exemption provided under Section 2
of the Act. Vavallavvai Dharmam vs State of Tamil Nadu. Likewise, where the object of
creating Trust is to promote spiritual education and knowledge through the medium of
Arabic language, then it should be considered as a religious Trust of a public nature and is
entitled to exemption - Dharul Ulam Madarasa vs State of Tamil Nadu. To make a
117
CLC/AM/R/05
charitable Trust a religious Trust as well, it must be shown that the object of the Trust had
some nexus of connection with the temple or its affairs or the worship or the conduct of the
festivals therein. Otherwise, it will be considered as a Trust of the charitable nature only.
Fixation of ceiling on land holdings
Section 5 of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961
is an important section. It fixes the ceiling area. Section 5 (1) (a) and (b) deals with ceiling
area for a family. Sub - section 1 (c) deals with ceiling area for the institutions.
The provisions of Section 5 may be summarised as follows:
1. A family is one which consists of a person, his wife and his minor sons and
unmarried daughter and their minor grandsons and unmarried granddaughters in the male
line whose father and mother are dead.
2. The ceiling area for a family consisting of not more than 5 members is 15 standard
acres [Section 1 (a)].
3. The ceiling area of a family consisting of more than 5 members is 15 standard
acres together with an additional 5 standards acres for every member of the family - Section
5 (1) (b).
4. The total extent of the land held by a family in no case should exceed 30 standard
acres [Section 5 (5)].
5 For the purpose of fixing the ceiling area of the family, all the lands held
individually by the members of a family or jointly by some or all of the members of such
family shall be deemed to be held by the family - Section 5 (1).
6 Where the stridhana land held by any female together with the other lands held
by the family is in excess by 15 standard acres, then the female member is entitled to hold
stridhana land not exceeding 10 standard acres in addition to the extent of land which the
family is entitled to hold under Section 5 (1).
7. But where stridhana land held by a female member is included in the extent of
land which the family is entitled to hold, and in case where the extent of so included is (a)
10 or more than 10 standard acres, she shall not be entitled to hold any stridhana land in
addition to the extent so included or (b) less than 10 standard acres, she may hold in addition
to the extent so included an extent of stridhana land, wherein together with the extent so
included, shall not exceed 10 standard acres.
118
CLC/AM/R/05
8. Where the extent of stridhana land held under clause (a) by any female member
of a family consisting of more than 5 members - (a) is 5 or more than 5 standard acres, she
shall not be deemed to be a member of that family for the purposes of clause (b) of sub -
section (1); or (b) is less than 5 standard acres the additional extent of 5 standard acres
allowed under clause (b) of sub section (1) shall be reduced by the same extent as the extent
of stridhana land so held.
Illustrations
a) An undivided Hindu family consists of the husband A, his wife and his three sons
B, C and D and the wife of B and grandsons E and F. B is a major and C and D are minors.
E and F are the minor sons of B. The extent of land held by the undivided Hindu family is
40 standard acres, that is to say, A's share and the share of his sons in the land held by the
undivided Hindu family is 10 standard acres each. A's wife has 15 standard acres of
stridhana land and B's wife has 10 standard acres stridhana land.
For the purpose of ceiling, A's family and B's family will each constitute a separate
unit [Section 3 (14)].
A's family consists of himself, his wife and his minor sons C and D. If the share of
A in the land held by the undivided Hindu family, namely, 10 standard. acres is included
within the 15 standard acres allowed under sub - section (1) of Section 5, the wife's
stridhana land to the extent of 5 standard acres may be included to make up 15 standard
acres [Section 5 (4)]. The wife can hold in addition 5 standard acres as stridhana land. All
the members of A's family will therefore be together entitled to hold 20 standard acres and
the remaining 25 standard acres will be treated as surplus land.
B's family consists of himself, his wife and his minor sons E and F. If the stridhana
land of B's wife, namely, 10 standard acres is included within the 15 standard acres allowed
under sub - section (1) of Section 5, the share of B and his sons in the land held by the
undivided Hindu family to the extent of 5 standard acres may be included to make up 15
standard acres [Section 5 (4)]. All the members of B's family will therefore be together
entitled to hold 15 standard acres and the remaining 5 standard acres will be treated as
surplus land.
b) A family consists of husband and his wife. The husband is a member of an
undivided Hindu family and his share in the land held by the undivided Hindu family is 10
119
CLC/AM/R/05
standard acres. The wife has stridhana land of 10 standard acres. If the entire stridhana land
of 10 standard acres held by the wife is included within the 15 standard acres allowed under
sub - section (1) of Section 5, then, an extent of 5 standard acres of the share of the husband
in the undivided Hindu family may be included to make up 15 standard acres. 5 standard
acres will be treated as surplus land and the wife is not entitled to hold any additional extent
of stridhana land [Section 5 (4)].
But, if the 10 standard acres which is the share of the husband in the undivided
Hindu family is included within the 15 standard acres allowed under sub - section (1) of
Section 5, then an extent of 5 standard acres of stridhana land of the wife could also be
included to make up 15 standard acres. The wife may retain additional 5 standard acres of
stridhana land [section 5 (4)]. There will be no surplus land.
c) A Muslim family consists of the husband, his wife and his two minor sons. The
wife has 15 standard acres of stridhana land and the minor sons have no property. The
husband has 25 standard acres. If the entire extent of land which the family is entitled to
hold under sub - section (1) of Section 5 consists of the land owned by the husband only,
the wife can hold additional 10 standard acres [Section 5 (4)]. The remaining 15 standard
acres will be treated as surplus land.
d) A Christian family consists of the husband, his wife and his two minor sons. The
husband and the minor sons have no property. The wife has stridhana land of 20 standard
acres. The family can retain 15 standard acres. The remaining 5 standard acres will be
treated as surplus land and the wife is not entitled to hold any additional extent of stridhana
land [Section 5 (4)].
9) The ceiling area in the case of the institutions mentioned in column (1) of the
Table below and in existence on the date of the commencement of this Act, shall be the
extent specified in the corresponding entry in column (2) thereof.
THE TABLE
(1) (2)
120
CLC/AM/R/05
10) The extent of the land mentioned above must be held by such institutions on the
date of the commencement of this Act.
11) The ceiling area in the case of a public Trust of a charitable nature shall be 5
standard acres - Section 5 (d).
12) The land owned by a private Trust shall be deemed to be land owned by the
beneficiaries under the private Trust and each such beneficiary shall be deemed be owner
of the land to the extent of the share of his beneficial interest in the said Trust.
13) Where the income from a public Trust is substantially appropriated for the
benefit of the founder of the Trust or his heirs or of the family of the founder or of his heirs,
121
CLC/AM/R/05
such Trust shall be deemed to be a private Trust notwithstanding the terms of the Trust -
Explanation to clause 36 (A) of Section 3.
14) The land held by the public Trust referred to in the explanation to clause 36A
of Section 3 shall be deemed to be held by the founder of the Trust or his heirs or the family
of the founder or of his heirs.
15) The date of the commencement of the Act is 15th February 1970 and the notified
date is 2nd October 1970.
Basis of calculation of the extent of land held by the founder of a public trust
Section 6 of the Tamil Nadu Reforms (Fixation of Ceiling on Land) Act, 1961
speaks about the provision where the founder of Trust reserves an interest for himself and
the basis of calculation of the extent of such land by the Authorised Officer. Where under
the terms of the public Trust, the founder of such Trust reserves any interest either in the
land or in the income from such land for himself or for any other person, the Authorised
Officer will find out total extent of the land and the extent of land reserved for the founder
and so also the income from the land and make a declaration. The extent so declared shall
cease to be the public Trust property from the date of such declaration hat shall be subject
to any other liability that may be subsisting on such land.
Ceiling on holding land
Section 7 of the Act declares the very object of this enactment. It says, on and from
the date of the commencement of this Act, no person shall be entitled to hold land in excess
of the ceiling area.
As we have seen early, the commencement of the date is 15th February 1970 and
the notified date is 2nd October 1970. Even though principal enactment was passed in 1961,
the Act was amended in the year 1970 and it prescribed the date of the commencement as
15th February 1970. Though under Section 7 of the Land Ceilings Act, it is provided that
no person shall, on and from the date of commencement of the Act, hold lands in excess of
the ceiling area, there is no provision for any automatic vesting of the surplus land in the
Government. There is an elaborate machinery provided under the Act to compute the
ceiling and to declare surplus. Under Section 18 (3), only on the publication of the
Notification that under Section 18 (1) the surplus lands specified in the Notification shall
be deemed to have been declared as acquired for a public purpose and vest in the
122
CLC/AM/R/05
Government free from all encumbrances with effect from the date of such publication and
the right, title and interest of all persons in such lands with effect from the said date, be
deemed to have been extinguished - (State of Tamil Nadu vs Narendra Dairy Farms (P)
Ltd.
Preparation and publication of statement
Sections 8 to 17 of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land)
Act, 1961 deal with furnishing of return, collection of information, preparation and
publication of draft and final statements and other related matters.
1. Furnishing of return by person holding land in excess of the ceiling area: Section 8
of the Act speaks about the furnishing of a return by the person who is holding land in
excess of the ceiling area. The person who is holding land in excess of the ceiling area
should furnish a return within thirty days from the Notified date to the Authorised Officer
in whose jurisdiction the land is situated. The return should contain the following
particulars:
i) Particulars of all the land;
ii) Particulars of the members of the family and of the stridhana land held by the
female member of the family;
iii) Particulars of any interest either in the land held by a Trust or in the income
from such land reserved in his favour or in favour of any member of his family;
iv) Particulars of land
a) Interspersed among plantation, or
b) Contiguous to any plantation,
v) Particulars of the encumbrances if any, with the name and address of the creditor;
vi) Particulars of pending litigation if any, respecting the land;
vii) Particulars of the land which such person desires to retain within the ceiling
area and the land which he desires to be declared as surplus land;
viii) Particulars of land held by tenant, if any and the name and address of such
tenant; and
ix) Such other particulars as may be prescribed.
2. Who should furnish the return?
123
CLC/AM/R/05
124
CLC/AM/R/05
iii) Particulars of the members of the family and of the stridhana land held by female
members;
iv) Particulars of any interest either in the land held by a Trust or in the income from
such land reserved in his favour or in favour of any member of his family;
v) Particulars of land (a) interspersed among plantations, or (b) contiguous to any
plantation and land to which the person desires to hold for extension or ancillary purposes
of the plantation.
vi) Particulars of encumbrances and the name of the creditor;
vii) Particulars of the land which such person desires to retain within the ceiling
area;
viii) The extent of the ceiling area of the person;
ix) Particulars of the land which may be comprised within the ceiling area;
x) Particulars of the land held by the tenant and his name and address;
xi) Particulars of the proposed land to be declared as surplus land; and
xii) Such other particulars as may be prescribed.
For the purpose of calculating for the first time, the Authorised Officer will take
into account only those members of the family who are alive on the Notified date. But for
the purpose of calculating the ceiling area of such family for the second time or for
subsequent time, he will take into account only those members of that family who are alive
on the date of the preparation of the draft statement. Under Section 10 (2), the Authorised
Officer has to take into account only those members of the family as are covered by the
definition of Section 3 (14) of the Act - (M.K.Harihara Iyer vs Authorised Officer, Land
Reforms. The same procedure is followed for the purpose of calculating the ceiling area of
any other family.
Clauses (3) and (4) of Section 10 speak about the land to be retained by the person
within his ceiling area. If any person fails to specify his desire to retain the kind within the
ceiling area, Authorised Officer himself as far as practicable specify in the draft statement,
the land which is capable of easy and convenient enjoyment. If any person has specified
the particulars of the land which he desires to retain within his ceiling area, the Authorised
Officer, will as far as practicable declare the same land as comprised within his ceiling area.
This declaration is subject to the conditions mentioned in the proviso clauses. (1) In the
125
CLC/AM/R/05
opinion of the Authorised Officer, the utility of any land held by any person has been
diminished by any wilful act of such person, he will declare such land as comprised within
his ceiling area. (2) Likewise, he will declare the share of any person in the land held by an
agricultural company, a co - operative society or a mortgage bank as comprised within the
specified area, (3) The Authorised Officer will see that the proposal to declare as surplus
area is capable of easy and convenient enjoyment.
In (Ramasamy Gounder vs Authorised Officer it is pointed out that the purpose of
the Act in this connection " under Section 19 (4) of the Act, if any person has specified the
particulars of the land which he desires to retain within his ceiling area, the Authorised
Officer shall as far as practicable but subject to the provisions of the Act, declare the same
land as comprised within his ceiling area. The very purpose of agrarian reform is to slice
off the extent of land from the land holders for the avowed and benevolent purpose of
passing them as to the landless poor, so that they could easily and conveniently enjoy it.
The phrase “capable of easy and convenient enjoyment " in the third proviso to sub - clause
(4) has a special annotation. Otherwise, every land holder would have the choice to give
such useless land and probably inaccessible land or land which cannot easily or
conveniently be enjoyed under clause (4) and the Authorised Officer would in equity be
bound to accept the same and leave the rest. This does not appear to be the intendment of
either the sub - clause or the object of the enactment either. The easiness and convenience
referred to in the third proviso in sub - clause (4) has reference only to the State whose
object is to pass on such lands taken over by it, to others who do not own land, so that they
could easily enjoy the same. The very purpose and object of the enactment would be lost if
the holder's choice has to prevail ".
Section 22 of the Act says that any transfer or partition bona fide executed or not,
is liable to be declared void by the Authorised Officer, if he finds that the transfer defeats
any of the provisions of the Act. Hence, clause 4A imposes the duty upon the Authorised
Officer to include such land within the ceiling area of the transfer or the person effecting
the partition, as if no such transfer or partition had taken place.
Where the transfer of any land has been declared to be void under Section 22 and
where the extent of the land so transferred is in excess of the ceiling area of the transferor,
126
CLC/AM/R/05
the land so transferred shall be included within the ceiling area of the transferor in the
following order of preference:
i) Firstly, land transferred to a person who was landless immediately before the date
of such transfer and who was not related to the transferor or any member of his family;
ii) Secondly, land transferred to a cultivating tenant who was cultivating that land
immediately before the date of such transfer;
iii) Thirdly, land transferred to a person who was not related to the transferor or any
member of his family; and
iv) Land transferred to others.
Sub - section 5 of Section 10 lays down the procedures to publication of the draft
statement and service thereof on persons concerned, the Tenants, Creditors and all other
persons who in the opinion of the Authorised Officer, are interested in the land in which
such draft statement relates. The Authorised Officer will publish a draft statement and send
a copy of it to the persons concerned as mentioned above. The Authorised Officer is under
the duty to consider any objection received within time from such persons. The Authorised
Officer after giving the objector a reasonable opportunity of being heard and of adducing
evidence will pass necessary orders.
Section 11 empowers the Authorised Officer to decide questions of title of a person
which are not finally determined and to pass orders. In case, the decision of a question
involves a substantial question of law or fact, he will refer the matter to the Land Tribunal.
5. Publication of final statement
Section 12 of the Act, speaks about the publication of the final statement by the
Authorised Officer. The Authorised Officer after the disposal of the objection if any and
after passing the order will make necessary alterations in the draft statement and declare
the surplus land held by each person. Thereafter, the Authorised Officer will publish a final
statement specifying therein the entire land held by the person, the land to retained by him
within the ceiling area and the land to be declared to be surplus land and such other
particulars. He will send the copies to the persons concerned. Such a statement will be the
conclusive evidence of the facts stated therein.
In calculating the extent of land held by any person, the Authorised Officer will
exclude (a) the land in respect of which any question of title is pending before a competent
127
CLC/AM/R/05
Court or the Land Tribunal or the Special Appellate Tribunal or other Authority and (b) the
land in respect of which the question whether such land could be permitted to be used for
the extension or for ancillary purposes, of the plantation in existence on the date of the
commencement of this Act in any area is pending before the Land Board (Section 13).
6. Rectification of bona fide mistake and clerical error
Section 15 empowers the Authorised Officer either of his own motion or on the
applications of any of the parties to make necessary corrections with respect to bona fide
mistake that has crept in the final statement. So also he can correct any clerical or
arithmetical mistake in regard to any entry in such final statement.
Sections 16 and 17 of the Act speak about possession of land held by any possessory
mortgagee and tenant which is in excess of the ceiling area. They will revert back to the
possessory mortgagor or land owner as the case may be.
Acquisition of surplus land
Section 18 of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act 1961
deals with acquisition of surplus land for a public purpose. The Government, after the
publication of the final statement will publish a notification to the effect that the surplus
land is required for a public purpose. Soon after the publication, the Authorised Officer
publish the Notification in every village or town in which any part of the land specified in
such Notification is situated. So also he will send the copy of the Notification to the persons
concerned, the creditors and persons whose names appear in the final statement. On the
publication of the Notification, the land specified in the Notification along with all the
things attached to earth will pass to the Government. Clause 3 says what are the things that
will pass along with the principal thing. The land together with the trees standing on such
land and buildings, machinery, plant, apparatus, wells, filter points or power lines,
constructed, erected or fixed on such land and used for agricultural purposes are deemed to
have been acquired for a public purpose and vested in the Government free from all
encumbrances with effect from the date of such publication and all right, title and interest
of all persons in such land, will with effect from the said date, be deemed to have been
extinguished.
In case where there is any crop standing on such land on the date of publication, the
Authorised Officer may permit the harvest of such crop by the person who had raised such
128
CLC/AM/R/05
crop. At any time after the publication of the Notification the Authorised Officer will take
the possession of the land.
In this connection the Government may make Rules - (a) specifying the classes of
tenants who may be allowed to continue in the possession of kind; and (b) permitting any
co - operative society or land mortgage bank or any agricultural company to continue in
possession of the land notwithstanding anything contained in Sections 5 and 7. Sections
18B and 18C empowers the Government to modify or cancel the Notification in certain
cases.
Penalty for future acquisitions
Section 20 of the Act, provides that if, as a result of any transfer of land either by
sale, gift, exchange, surrender, agreement, settlement or otherwise effected on or after the
Notified date, the extent of land held by the transferee exceeds the ceiling area, then the
right, title or interest accrued in his favour by virtue of such transfer in the land in excess
of the ceiling area shall, as a penalty for the contravention of the provisions of Section 7,
be deemed to have been transferred to the Government with effect from the date of such
transfer.
Section 7 prescribes that on and from the date of the commencement of the Act, no
person shall be entitled to hold land in excess of the ceiling area.
If on or after the date of commencement of the Act, any person acquires any land
by inheritance or bequest from any person, and it exceeds in the aggregate the ceiling area,
he should furnish return within 90 days from the Notified date or from the date of such
acquisition whichever is later to the Authorised Officer. So also as a result of marriage or
adoption the extent of the land exceeds in the aggregate of ceiling area, the person should
furnish a return in the same manner as mentioned above.
account of natural love and affection to any minor son, unmarried daughter, minor grandson
or unmarried granddaughter in the male line; or (c) any person has voluntarily transferred
any land –
i) To any educational institution; or
ii) Hospital of public nature solely for the purpose of such institution or hospital,
such partition or transfer shall be valid. It is evident from this that the order to a partition
or transfer is to be valid, the following conditions are to be fulfilled.
1) The transaction must be between the date of the commencement of the Act and
the notified date;
2) The partition must be by a registered instrument;
3) It must be a gift made out of love and affection by the parent or grandparent to
any minor son, unmarried daughter, minor grandson or unmarried granddaughter in the
male line;
4) It must be gift of land to any educational purpose or hospital of a public nature;
5) The transaction may be a partition or valid transfer;
6) In the case of transfer to such educational institution or hospital, this should
absolutely vest with the educational institution or hospital and the entire income should be
appropriated for the institution or hospital. In fact Section 21A is in the nature of a proviso
to Section 22, which declares the partition or transfer is void if it is made on or after the
date of commencement of this Act, but before the Notified date.
When transfer or partition is void?
Section 22 mentions circumstances under which a transfer or partition becomes
void. It simply says any transfer bona fide executed or not, is liable to be declared void by
the Authorised Officer, if he finds that the transfer defeats any of the provisions of this Act.
The necessary aspects to be taken into considerations are:
1) There must be a transfer like sale, gift, exchange, surrender or settlement or
partition;
2) It must have taken place during the period mentioned in the section;
3) It must have the effect of defeating any of the provisions of the Act. In Authorised
Officer vs Naganatha Ayyer, it is pointed out that if these elements are present, the
Authorised Officer must declare it as void the transfer. There is no room for importing a
130
CLC/AM/R/05
fourth principle that the transfer should be ' sham, nominal or bogus '. If any transfer defeats
the provisions of the Act, by reducing the extent of surplus land in excess of the ceiling
available from any person, such transaction, bona fide or not is void in the matter of
computation of the permissible area and the surplus area.
Land board
Chapter V of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act,
1961 deals with the constitution and functions of the Land Board. Section 24 speaks about
the constitution of the Tamil Nadu Land Board.
The Land Board consists of –
i) The Land Commissioner, ex - officio;
ii) The Chief Conservator of Forests, ex - officio;
iii) The Director of Land Reforms, ex - officio;
iv) Two non - official members, nominated by the Government. The member
referred above will be the Chairman of the Land Board and shall be a Gazetted Officer
nominated by the Government.
However, he is not entitled to vote. The term of the office of a member is three years
or such shorter period as the Government may fix. He is entitled for re - nomination. If any
member mentioned in clause (d) of sub - section absents himself from the meetings of the
Board for a period of three consecutive months or number of meetings in sub - section is
deemed to have vacated his office. A member may resign his office by notice in writing to
the Chairman. The vacancy will be filled by fresh nomination.
Functions of the Board are assigned by or under this Act.
Acquisition of land interspersed among or contiguous to any plantation
The Land Board is vested with the power of granting permission for the acquisition
of land in excess of the ceiling area where the land is interspersed among or contiguous to
any plantation. Where any owner of plantation which is in existence on the date of
commencement of this Act, desires to acquire in excess of the ceiling area land which is
interspersed among plantations or its contiguous to any plantation for the extension or for
ancillary purposes of the plantation, must apply for the permission to the Land Board.
On receipt of the return, the Land Board, after making enquiry and inspection of the
land and plantation, if satisfied itself that the land is necessary for extension or for ancillary
131
CLC/AM/R/05
purposes, grant permission (Section 31). However, the land for which permission was
granted should not exceed 20 % of the total extent of such plantation.
While deciding the question of granting permission or refusing permission, the
Land Board will take into consideration the following matters:
i) Area under plantation and area required for ancillary purposes of the plantation;
ii) Programme for extension of the plantation;
iii) Lands necessary for factories, labour quarters, playgrounds, hospitals, schools
and other ancillary buildings;
iv) Such other matters as may be prescribed.
On the following grounds the Land Board may cancel the permission granted under
Section 31. The grounds are;
i) Breach of conditions specified by the Land Board;
ii) Use of land for any purposes other than the purpose of extension or for ancillary
purposes of the plantation;
iii) Obtaining the permission by fraud or misrepresentation. The decision of the
Land Board in granting or refusing permission under Section 31 or cancelling permission
under Section 33 is final and cannot be called in question in any Court.
Power to rectify mistakes
Section 36, the Land Board has power to make necessary correction where a bona
fide mistake has been occurred. So also it can correct any clerical or arithmetical mistake
in its decision.
Permission to hold excess land by industrial or commercial undertakings or public
trust
Section 37 A, the Government can permit any industrial or commercial
undertakings to hold or acquire any land in excess of the ceiling area. Similarly Government
can permit public Trust created before the 1 st March 1972 to acquire or hold any land in
excess of the ceiling area for the purpose of any public Trust created after the 1 st March
1972, if such public Trust desires to hold or acquire any land for the purpose - (1)
establishing any educational institution or hospital; or (2) expanding any existing
educational institution or hospital.
Amount payable for the land acquired
132
CLC/AM/R/05
The Chapter IV of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act
1961, deals with determination of the amount for the land acquired by the Government,
claims of mortgagee or charge holder, limited owner and maintenance holder, amount
payable to tenants and the mode of payment of amount.
I. Determination of the amount
Section 50 of the Act, gives detailed procedure for claiming the amount for the land
acquired. Every person whose right, title or interest in any land is acquired by the
Government shall be paid an amount according to the rate specified in Schedule III (clause
1). The Act uses the term ' amount ' and not the term ' compensation '.
1. Any person claiming any amount may within thirty days from the date of the
publication of the Notification prefer to claim before the Authorised Officer in the
prescribed form.
2. The Authorised Officer will determine the amount at the rate specified in
Schedule III and prepare a draft assessment roll and publish it with all particulars regarding
amount payable.
3. The Authorised Officer then serve it to the concerned persons whose names
appeared in the draft.
4. Any person can prefer objections, if any in respect of any entry in the draft in the
prescribed manner within 30 days from the date of the publication
5. Thereafter, the Authorised Officer will consider the objections and after giving
the parties a reasonable opportunity of being heard and of adducing evidence, will pass
necessary order.
6. If necessary, the Authorised Officer will make necessary alterations in the light
of objections and publish the draft assessment roll finally.
7. If no objection is preferred within the specified time, the Authorised Officer
publish the draft assessment roll finally.
8. Every entry in the assessment roll published is final and conclusive evidence of:
a) The matters referred therein,
b) Nature of the interest of the person’s name therein and
c) The apportionment of the amount among the persons claiming interest in the
amount.
133
CLC/AM/R/05
9. When the assessment roll has been published finally within the prescribed time
Authorised Officer endorse a certificate thereon stating the date of publication thereof.
10. The Authorised Officer may, either of his own motion or on application of any
the parties, make necessary correction in regard to mistake crept in any entry in the draft
assessment roll or in the final assessment roll.
11. In the similar manner, Authorised Officer may correct any clerical or
arithmetical mistake in regard to any entry in the draft assessment roll or in the final
assessment roll.
12. In (Lakshmi Ammal vs Assistant Commissioner, Land Reforms AIR 1992
Madras 27), it is pointed out that a reading of the section is clear enough to indicate that
the Authorised Officer must act promptly and conclude the enquiry as regards fixation of
final compensation within a very reasonable time. All the periods mentioned in the section,
if put together, would indicate that at the worst, the Authorised Officer cannot prolong the
matter beyond a period of six months.
II. Claims of mortgagee, charge holder, limited owner and maintenance holder in
surplus land
Sections 51, 52 and 53 deal with the claims of these persons. Section 51 deals with
claims of mortgagee or charge holder on surplus land. According to this Section, where any
surplus land acquired is subject to a mortgage of charge subsisting on the date of
acquisition, the mortgagee or the charge holder, where the amount due to him can be fixed
by agreement, be paid such amount. Where no such agreement can be reached, the
mortgagee or the charge holder should within 60 days from the date of acquisition prefer a
claim in the prescribed manner.
Where there are more claimants than one, the Authorised Officer will settle the
order according to the provisions of the Transfer of Property Act. However, where it
involves substantial question of law or fact, he will refer the claim to the Land Tribunal for
decision.
Section 52 deals with claims of the limited owner on surplus land. Where any
surplus land acquired is held by a limited owner on the date of acquisition, the amount
payable in respect of such surplus land under Section 50 will be kept in deposit before the
prescribed authority. The Authorised Officer will direct payment of the interest accruing
134
CLC/AM/R/05
from the amount deposited to the person who would, for the time being, have been entitled
to the possession of the said land. In case any encumbrance has been created by the limited
owner; the interest will be paid to the encumbrances to the extent of the encumbrance
created.
The principal amount will remain so deposited, until the same is paid to any person
becoming absolutely entitled thereto.
III. The claims of maintenance holder
Section 53 deals with the claims of maintenance holder on surplus land. Where any
surplus land acquired under this Act is on the date of the acquisition subject to a charge for
the payment of maintenance to another, the amount payable in respect of such surplus land
will be kept in deposit before the prescribed authority. Such amount will be deemed to be
substituted security and will continue to remain such security till the death of maintenance
holder or till the liability to pay maintenance is discharged.
Mode of payment of amount
According to Section 55, the amount payable under Section 50 will be paid either
in cash or in bonds or partly in cash and partly in bonds as the Government may deem fit.
The interest on bonds will be paid:
i) In the case of any land held by any person referred to in clause (a) or (b) of sub -
section 5 of Section 18 from the date of the publication of the Notification;
ii) In any other case, with effect from the date of taking possession of the land.
135
CLC/AM/R/05
After making possession of land held by the cultivating tenant in excess of the
ceiling area, the liability to pay the rent passes to the Government. The Government is liable
to pay fair rent annually to the owner of such land as prescribed in Schedule III. Such rent
will be paid either in cash or in kind. With respect to dispute regarding payment of rent
arises, the parties may make an application to the Land Tribunal for deciding such dispute.
Distribution of possession of land
Under Section 64, the Authorised Officer will distribute possession of the land, to
the landless persons or to persons holding land below the cultivating tenant's ceiling area.
The Authorised Officer may summarily disposes:
i) Any person to whom any land has been distributed under Section 64, if such
person fails to comply with the conditions subject to which the distribution was made or
contravenes any Rule made under this Chapter,
ii) Any other person occupying such land except in accordance with the provisions
of this Act.
No claim against government for the arrears of rent
No claim of any person to any arrears of rent or any other amount accrued or due in
respect of any land for the period prior to the date of taking possession of such land under
Section 62 shall be enforced by any Court against the Government (Section 67).
137
CLC/AM/R/05
of such acquisition, furnish to the Authorised Officer, a return containing such particulars
as may be prescribed.
If he furnishes the return or fails to furnish the return or furnished an incorrect or
incomplete return, the provisions of Section 61 and other provisions of this Chapter will
apply as if it were a return required to be furnished under Section 61 (1).
Nothing contained in this Chapter shall apply to any land held by any sugar factory
as tenant.
Exemptions under this act
The exemption is an important aspect of the ceiling law which has undergone
frequent changes since 1961. As we have seen earlier, the lands held by religious institution
and religious Trust of a public nature continue to be exempt in full. The exemptions
originally provided for the following categories of lands held were taken away one by one
by subsequent Amendment Acts. They are
1. Lands used for cultivation of sugarcane by factories;
2. Lands used exclusively for grazing;
3. Lands in hill area; and
4. Lands used exclusively for dairy farming or livestock breeding.
The exemption in respect of lands under plantation, fuel trees, orchards etc are
available only so long as they are in continued use.
Section 73 of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act,
1961, enumerates what are exempted under the provisions of this Act. The following are
the exemptions:
1. Any land held by the Central or State Government or any local authority;
2. Any land held by any university;
3. Any land assigned by the Government to and held by any Land Colonization Co
- operative Society;
4. Any land in respect of which the Government have granted permission to any
industrial or commercial undertakings under Section 37A;
5. Any land in respect of which the Government have granted permission to any
public Trust under Section 37B;
6. All plantations in existence on the date of the commencement of this Act;
138
CLC/AM/R/05
140
CLC/AM/R/05
Chairman can hold the office till the age of 65 years and members till the age of 62 years.
The salaries and allowances are as prescribed by the Government.
Removal:
The Chairman, Vice Chairman and the members cannot be removed before the
expiry of the term but on the ground of proved misbehaviour or incapacity, the Governor
after an inquiry by a Special Tribunal can remove them after following prescribed Rules.
The Special Tribunal should consist of three Judges of High Court, nominated by the Chief
Justice.
Powers of the Special Appellate Tribunal:
It shall have the same powers as are vested in a Civil Court under the Code of Civil
Procedure, 1908 including the power to punish for contempt. Every order passed by the
Special Appellate. Tribunal shall be final and shall not be called in question in any Court
except. The Supreme Court as provided under Section 77G.
Bar of jurisdiction of Courts and writs in High Court:
The jurisdiction of all Courts except the jurisdiction of the Supreme Court is
excluded with respect to any matter which is by or under this Act required to be decided or
dealt with by the Authorised Officer, the Land Board, the Land Commissioner, the Land
Tribunal or the Special Appellate Tribunal.
Likewise no Writ shall lie in the High Court to set aside or modify and proceeding
or order taken or made by the Authorised Officer, the Land Board, the Land Commissioner,
the Land Tribunal or the Special Appellate Tribunal under this Act or with respect to any
other matter which is by or under this Act, required to be decided or dealt with by the
Authorised Officer, the Land Board, the Land Commissioner, the Land Tribunal or the
Special Appellate Tribunal.
Power to summon persons etc:
The authorities referred in this Act has power to summon any person to give
evidence or to produce a document. Every inquiry conducted by these authorities are
deemed to be a judicial proceeding within the meaning of Sections 193 and 228 of IPC.
Penalty is provided for the contravention of order of Special Appellate Tribunal etc under
Section 77-1.
141
CLC/AM/R/05
The Chapter XI deals with appeal to Land Tribunal and Special Appellate Tribunal,
Revision by the Land Commissioner and Special Appellate Tribunal and power to stay the
execution of order.
Other provisions
Chapter XIV deals with miscellaneous matters. According to Section 95, where on
account of any improvements made in the land by or at the cost of the person holding such
land are kind of the lands specified in Section 3 (40) is converted into another kind of the
lands specified in the said clause after the date of the publication of the final statement
under Sections 12 or 14, such conversion shall not be taken into account in calculating the
extent of land held by such person.
But where such conversion takes place as a result of any irrigation project
constructed at the cost of the Government, the land so converted shall be reduced to
standard acres according to the proportion specified in the clause aforesaid and the ceiling
area of such person shall be fixed in accordance with the provisions of this Act.
Will the decrease in number of members of family affect the ceiling area?
Section 96 answers to this question. The extent of the ceiling area which a family
is entitled to hold under this Act, immediately after the date of the publication of the final
statement under Section 12 or 14 shall not be reduced by reason only of any decrease after
the said date in the number of members of such family.
UNIT-V
LAW AND BUILDINGS
THE TAMIL NADU BUILDINGS (LEASE AND RENT CONTROL) ACT, 1960
The Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 is a piece of social
Legislation aiming at prevention of unreasonable eviction of tenants. It is a self - contained
and complete Code for regulation of rights of landlords and tenants. The present enactment
was passed in the year 1960 and it was made permanent in the year 1973.
History of the rent control legislations
The reason for enacting rent control Legislation was, then prevailing conditions
during the war period in 1941. The strain of World War, the large scale exodus of the
working people to the urban areas, the great demand for accommodation and rack renting
were the factors for introducing Madras House Rent Control Order 1941. It was introduced
142
CLC/AM/R/05
as a purely temporary measure to meet an emergency. In order to cover the case of buildings
for storage accommodation, the Madras Godown Rent Control Order 1942 was passed
later. These two Control Orders were re - issued in 1945 with certain changes, as The
Madras House Rent Control Order 1945 and Madras Non - Residential Buildings Rent
Control Order 1945. Subsequently, The Madras Buildings (Lease and Rent Control) Act,
1946 was passed and it came into force on 1st October 1946. The Act of 1946 was originally
intended in force for two years only. Later, this Act was replaced by the Madras Act XXV
of 1949. This Act was enacted to remain in force upto 30th September 1951. But by
subsequent amendments its life was extended from time to time and ultimately the present
Act, (XVIII of 1960) was passed which itself was declared to be in force for a period of
five years. But even the life of this Act was extended from time to time Pal Theatres vs
Abdul Gafoor Saheb. Later this Act was made permanent in the year 1973. The
Amendments have been made to this Act in 1973 and 1980.
Object of the act
The Preamble of this Act says, " an Act to amend and consolidate the law relating
to the regulation of letting of residential and non - residential buildings and the control of
rents of such buildings and the prevention of unreasonable eviction of tenants there from
in the State of Madras ". The objects of this enactment are well explained in (Irani vs State
of Madras, the legislation was enacted for achieving three purposes, a) the regulation of
letting, b) the control of rent, and c) the prevention of unreasonable eviction of tenants from
residential and non - residential buildings. This legislation is a piece of social reform
enacted to protect the tenants from capricious and frivolous eviction. This Act is self -
contained and complete code for all matters dealt with by its provisions. It is evident from
various decisions that this beneficial Legislation not only intended to safeguard the rights
of the tenant, there are certain provisions which are in favour of landlords also. In Nambiar
vs State of Madras, it is pointed out that while the object of the Act was to prevent arbitrary
eviction of tenants, it took good care to see that the interests of the landlords were protected
within reasonable limits. The landlord is assured of securing a fair return for his investment.
Applicability of transfer of property act
The Rent Control Act is a special Act and it substantially modified the provisions
of the Transfer of Property Act and in the case of inconsistency, the Rent Control Act will
143
CLC/AM/R/05
144
CLC/AM/R/05
7. Sections 23 and 25 of the Act deal with appeal and revision which enable an
aggrieved party to challenge the correctness of the order passed by the Authorities.
8. Section 29 of the Act deals with exemptions. It is an enabling Section intended
to meet a contingency when the remedy provided by the Act would be insufficient or
inadequate in regard to a particular case.
Definitions A number of terms have been defined under Section 2 of the Tamil Nadu
Buildings (Lease and Rent Control) Act, 1960. For the proper appreciation of the various
provisions of this enactment, it is necessary for us to consider some of the important
definitions here.
1. Building:
This term is defined under Section2 (2) of the Act as follows:
‘building ' means any building or hut or part of a building or hut, let or to be let
separately for residential or non - residential purposes and includes
a) The garden, grounds and out - houses, if any, appurtenant to such building, hut
or part of such building or hut and let or to be let along with such building or hut,
b) Any furniture supplied by the landlord for use in such building or hut or part of
a building or hut, but does not include a room in a hotel or boarding house.
From this definition, it is evident that the following are considered as building. A
building, hut, part of a building, part of a hut. Then garden, ground, out - houses attached
to the building or hut or part of building or hut.
Again furniture supplied by the landlord for the use of the building or hut or part of
the building or hut.
However, a room in a hotel or boarding house is excluded from this definition.
A building may be anything which is capable of occupation. It may be of any size
and there is no limitation as to length, breadth or height. The term ' The building ' is wider
in sense than the house. While deciding the question of building the following factors must
be taken into consideration, namely a) the nature of the premises, b) the intention of the
parties at the time of granting the lease, c) the purpose for which it was leased out.
The word ' building ' is used here as denoting and descriptive of a structure either
of the nature of a house intended for human habitation or for carrying on of a business. In
a broad sense, it may take in any erection intended for use and occupation as a habitation
145
CLC/AM/R/05
or for some purposes of trade or manufacture, but not a mere wall, a fence, a gate or the
like.
Where the site leased forms an integral part of the buildings, the lease of the site
will be governed by the provisions of the Act. However, this Act does not apply to leases
of ground on which the tenant puts up the superstructure, with which the landlord has
nothing to do.
Even a building standing on four poles with zinc sheet roofing will come under the
definition. A vacant site for running automobile workshop with wooden poles in the middle
to support asbestos roof and open on all sides is a building. A wooden bunk constructed of
timber measuring by 5 feet x 4½ feet where business can be carried on is a building or at
any rate a hut within the definition. A building includes a flat. So where there is a building
which has two or more storeys each flat or storey is a building. The ' Kaichalai ' is a structure
which falls within the purview of the definition.
It is pointed out in Geetha vs. G. Sankaran and another that however insignificant a
building along with land is leased to the tenant, it will fall within the ambit of Section 2 (2)
and eviction petition is maintainable under the Act.
The contract of tenancy is a single and indivisible contract and in the absence of a
statutory provision to the effect, it is not open to the Court to divide it into two contracts,
one for letting for residential purposes and the other for non-residential purposes. It is
settled law that where there is single individual contract of tenancy it cannot be split by a
Court unless there is a statutory provisions to that effect [Habibunnisa Begum and others
vs. G. Doraikannu Chettiar and others. When the premises form different units and each
will come within the meaning of a building under Section 2 (2) of the Act and the purposes
for which they serve would be different, the clubbing of these premises together for the
purpose of obtaining reliefs under the provisions of the Act will cause prejudice to the
tenant Unnamalai Achi vs Swaminatha Pathar. Where the tenant of a premises dies and the
evidence is that the two sons of the deceased occupied different portions, it is a clear case
that the tenancy is one and the family cannot split it. Thirunavukkarasu vs Damodaran.
There is no definition of non - residential building in the Act and whether a building
is residential or non - residential is a mixed question of law and fact. In determining whether
146
CLC/AM/R/05
a premises is residential or non - residential the main or primary purpose for which it let
out or taken or used must be considered.
‘Building ' includes a part of building but that part must be let or must be such as to
be let separately for residential or non - residential purpose.
The definition of the word, ' building ' includes garden, grounds and out houses,
which are appurtenant to such building. The word ' appurtenant ' includes all structures or
property abutting or adjacent to the main tenaments or property which are proper and
necessary for its due enjoyment.
2. Controller:
This term is defined under Section 2 (3) of the Act of 1960. The Controller means
any person appointed by the Government by Notification to exercise the powers of a
Controller under this Act, for such area as may be specified in the Notification. He is a
persona designata. The powers exercisable by the Rent Controller under the Act are judicial
in nature and hence only a judicial authority can be appointed as Rent Controller under
Section 2 (3) of the Act.
The date of commencement of the Act is specifically defined in Section 2 (4) as the
date on which the Act is published in the Fort St. George Gazette i.e.30th September 1960.
3. Landlord:
The term landlord is defined under Section 2 (6) of the Tamil Nadu Buildings
(Lease and Rent Control) Act, 1960 as follows:
“Landlord ' includes the person who is receiving or is entitled to receive the rent of
a building whether on his own account or on behalf of another or on behalf of himself and
others or as an agent, trustee, executor, administrator, receiver or guardian or who would
so receive the rent or be entitled to receive the rent if the building were let to a tenant".
Explanation: A tenant who sublets shall be deemed to be a landlord within the meaning of
this Act in relation to a sub - tenant.
The above definition is an inclusive one and does not actually define the term
‘landlord’. The definition is comprehensive enough to take in persons who are not strictly
landlords under the general law. A landlord according to this definition is –
i) a person who is receiving the rent; or
147
CLC/AM/R/05
ii) a person who is entitled to receive the rent either on his own account or on behalf
of another.
A person who is either realizing or is entitled to realize the rent is regarded as
landlord for the purpose of the Act, notwithstanding to the fact, he is not the actual lessor
or the owner of the premises. This definition is absolutely different from what is given in
the Transfer of Property Act. As far as the Rent Control applications are concerned, it is
not the ownership of the property that entitles a person to file an eviction petition but when
a person comes under the definition of landlord mentioned in Section 2 (6) of the Act, he
is entitled to maintain the petition for eviction Nagalingam vs Ramasamy Chettiar.
Now let us consider briefly who are the persons who will come under this definition.
The heir of the landlord who is collecting the rent, during the life time of the landlord, is a
landlord. The Kartha of a joint family is a landlord under this definition. In the case of joint
family, the members who constitute the joint family are the landlords. The term will include
a co - owner. The firm is not a legal entity in substance the partners of the firm will be
landlords. It is a well settled law that a chief tenant will be a landlord within the meaning
of the Act. The definition includes, Executors, Administrators, Receiver, and Official
Assignee also. Further it includes both Vendor and Purchaser.
It is clear from the discussion the following persons are within the term ' landlord '.
i) The owner of the premises;
ii) The person receiving rent for the time being;
iii) The person entitled to realize the rent;
iv) The Agent, Trustee, Executor, Administrator, Receiver or Guardian; and
v) The tenant vis - a - vis the sub - tenant.
4. Tenant:
This term tenant is defined under Section 2 (8) of the Act. Tenant means any person
by whom or on whose account rent is payable for a building and includes the surviving
spouse, or any son, or daughter or the legal representative of a deceased tenant.
i) Who had been living with the tenant in the building as a member of his family up
to his death or
ii) Had been in continuous association with the tenant for the purpose of carrying
on the business of the tenant up to his death and continues to carry on such business
148
CLC/AM/R/05
thereafter and a person continuing in possession after the termination of the tenancy in his
favour.
Section 2 (8) defines the term ' tenant ' in very broad terms to include any person
by whom or on whom account rent is payable for a building and even includes the surviving
spouse or any son or daughter and any person continuing in possession after the termination
of tenancy in his favour. Ramaiah Chettiar vs Sankaralingam Pillai.
The definition would include both a tenant during the subsistence of contractual
tenancy and a tenant "continuing in possession after the termination of tenancy ". In order
to fall within the definition of tenant contained in the Act, the assent or consent of the
landlord is totally unnecessary and immaterial. A tenant, although he denied the title of the
landlord, must be deemed to continue in possession all along as a tenant.
A spouse who is in continuous association in the business of the husband, is entitled
to the benefits under Section 2 (8) of the Act. The right of a statutory tenancy can be claimed
only by the following categories of persons: 1) surviving spouse, 2) any son, 3) daughter
and 4) legal representatives. Therefore, a stranger creditor has no place within the scope of
the section.
The tenancy created by a mortgagee in possession comes to an end the moment the
mortgage is redeemed and unless there is a fresh forging of the relationship of landlord and
tenant between the mortgagor and the erstwhile tenant. This definition does not include
within its ambit the persons who are licensees.
Persons claiming to be a tenant must satisfy two conditions namely, (i) that he or
she is the surviving spouse or any son, or daughter or the legal representatives of the
deceased tenant; (ii) the above said such person should have been living with the tenant in
the residential building as a member of the tenants family upto the death of the tenant. In
the case of non - residential building he or she should be in continuous association with the
tenant for the purpose of carrying on business upto the death of the tenant and continues to
carry on such business thereafter.
A Statutory tenancy normally arises when a tenant under a lease holds over and he
remains in possession after the expiry or determination of the contractual tenancy. He has
no estate or interest in the premises occupied by him. He has merely the protection of the
149
CLC/AM/R/05
statute. Such a tenancy would come to an end either on the surrender of the premises by
such tenant or if a decree of eviction is passed against him.
With these discussion we can come to the conclusion, that the following person may
be considered as tenants under this Act.
They are –
1. A person by whom the rent payable;
2. A person on whose behalf the rent is payable;
3. A person by whom the rent of any accommodation would have been payable but
for a contract express or implied;
4. A person who is in continuous association with the tenant for the purpose of
carrying on business till his death;
5. A person continuing in possession after the termination of contractual tenancy;
6. Surviving spouse, son, daughter and legal representative living in the residential
building with the tenant upto his death.
5. Rent:
The word ' rent ' in the ordinary sense denotes a return in money or kind for
enjoyment of a specific property held by a person from or under another. It is a periodic
payment on specified occasions. The distinguishing feature in the case of rent inso far as
the Rent Control Acts are concerned is that it is payable in terms of money Abdul Gafoor
vs Abdul Salam. This term ‘rent’ is not defined under this Act.
The term ' rent ' used in the Act would include all payments agreed to be paid by
the tenant to his landlord for use, and occupation not only of the building and furniture, but
also for rates, electricity, water and other amenities including services. In other words, any
sum of money which the tenant agreed to pay as consideration for the tenancy would be
rent Sakuntala Rajappa vs Kamala.
Notice of Vacancy:
Section 3 imposes an obligation on the landlord to give written notice of vacancy
to the Authorised Officer within the time specified. Under the Act the obligation to give
such notice is laid on the outgoing tenant also. Section 3 is a lengthy section having 10 sub
- clauses and it lays down elaborate procedure for this purpose.
150
CLC/AM/R/05
Section 3 (1) (a) i): Every landlord shall within seven days after, the building
becomes vacant,
a) By his ceasing to occupy it, or
b) By the termination of tenancy, or
c) By the eviction of the tenant, or
d) Where any such building has been requisitioned under any law for the time being
in force other than this Act, by release from such requisition, give notice of the vacancy in
writing to the officer authorised in that behalf by the Government.
ii) Every tenant shall, within seven days after the building becomes vacant, by his
ceasing to occupy in writing to the officer authorised in the behalf by the Government.
Section 3 enables the Government to obtain possession of the premises, the vacancy
of which has been Notified, if the Government should require the premises for the
occupation of a servant of the Government or of any local authority or of any public
institution under the control of Government (Sheikh Mohammed Shah vs State of Madras.
The provisions of the section have been constitutionally upheld. The deprivation of
the landlord of the right to hold the property by the law granting to a tenant paying a
reasonable rent, a right to be in possession of the premises against the will of the landlord,
is not an infringement of Article 19 (1) (f) of the Constitution or an unreasonable restriction
on the exercise of his right Pakkiriswami Naidu vs State of Madras.
Landlord obtaining order of eviction need not notify the vacancy. The other
provisions of this Section deal with particulars of notice, powers of Authorised Officer,
failure to give notice, allotment of the premises and other related matters.
Section 3A of the Act speaks about the release of building by the Government.
Fixation of fair rent
Under Section 4 sub - section (2) either the tenant or the landlord can file an
application for fixation of fair rent and the Rent Controller after making such enquiry will
fix the fair rent according to the guidance and principles laid down in other sub - sections
of Section 4.
This provision has been enacted with the object of mitigating the difficulties of the
tenants and at the same time to provide for a reasonable return to the landlord. It relieves
tenants from oppressive rack renting. Further, the provision is specifically intended to
151
CLC/AM/R/05
relieve the tenant from any agreement which might be compelled to enter into his
disadvantage by the landlords stipulating for a higher rent taking advantage of the tenant's
pressing need for accommodation OSM Salih vs A.M.Salih.
The fair rent shall be nine per cent gross return per annum in the case of residential
building and twelve per cent gross return per annum in the case of non - residential building
on the total cost of such building. This has been laid down in sub - sections (2) and (3) of
the Act. It consists of the i) market value of the site, ii) cost of construction of the building
and iii) cost of provisions of the amenities specified in Schedule I. On the date of
application for fixation of fair rent while calculating the market value of the site in which
the building is constructed, the Controller will take into account only that portion of the site
on which the building is constructed, and a portion upto 50 per cent there of the vacant if
any appurtenant to such building the remaining 50 per cent of the vacant land is treated as
amenity. The cost of provision of amenities shall not exceed fifteen per cent in the case of
residential building and in the case of non - residential building twenty - five per cent of
the cost of the site. The cost of construction of the building includes the cost of basic
amenities such as internal water supply, sanitary and electrical installations which are
determined according to the rates adopted by the P.W.D. of the Government. The above
determination of the cost of construction is laid down in sub section (5) clause (a) of the
Section 4 of this enactment. After the determination of the cost of construction of the
building as specified in Section 4 (5) (a), the depreciation calculated at the rate as specified
in Schedule II shall be deducted.
SCHEDULE - I
1. Air conditioner,
2. Lift,
3. Water cooler,
4. Electric Heater,
5. Frigidaire,
6. Mosaic flooring,
7. Side dadoos,
8. Compound walls,
9. Garden,
152
CLC/AM/R/05
153
CLC/AM/R/05
of the building to the landlord in the same way as it is bound to discharge its debts to others.
The firm's name can certainly be utilised for getting the fair rent ascertained under the
provisions of the Act though firm was dissolved on that date.
Total cost
Whether the premises is a residential building or a non - residential building it is
imperative while arriving at the total cost of the building to take into consideration the
market value of that portion of the site on which the residential or non - residential building
is constructed. In the case of residential building 9 (nine) per cent gross return per annum
of the total cost of the building shall be deemed to be fair rent. The total cost referred to in
Section 4 includes the actual cost of construction which again has to be arrived at in
accordance with the guiding Rules and Principles laid down in the Act and Rules framed
thereunder. The total cost referred to in sub - sections (2) and (3) of Section 4 consists of
the market value of the site in which the building is constructed, the cost of provisions of
anyone or more of the amenities specified in the Schedule I as on the date of the application
for fixation of fair rent. It is obligatory on the part of the court to take into consideration
both the market value and the cost of construction of the building.
Market value of the site
The market value of the site on which the building is constructed should also be
taken into account while fixing the fair rent. While computing the market value of the site,
the following two factors are to be taken into consideration viz., the portion of the building
is constructed, (2) a portion upto 50 per cent, thereof of the vacant land, if any, appurtenant
to such building. The remaining 50 per cent of the vacant land is to be treated as an amenity.
Kaliammal & Others vs Athi V. Ramachandra & others.
The actual area of the site over which the construction has been put up has to be
first determined. From the total area of the site, the area of the site over which the building
has been put up has to be deducted and the balance if any will be the vacant land. If the
area of the vacant land thus arrived at is equal or less than 50 per cent of the area of the site
over which the construction has been put up such extent of vacant land has to be added on
to the area of the site occupied by the construction and the market value of that area. If,
however, the vacant land is in excess of 50 per cent of the area over which the construction
has been put up then the extent to be added to the area of the site occupied by the
155
CLC/AM/R/05
construction will be only 50 per cent of that area and no more and the market value of the
site will be the market value of that area. In the latter case, the vacant land remaining after
so adding 50 percent of the area of the site over which the construction has been put up to
the area of the site occupied by the construction is treated as an excess portion and
amenities. Veeman Pillai vs Jindal.
In the case of a building having more than one floor, the principle ought to be one
of apportionment in accordance with the number of storeys. If there are two or more storeys,
the market value of the land for the first floor will be half. If there are more than two storeys
it will be proportionately distributed in accordance with the number of storeys in the
buildings C.Charities vs Sadhana Aushadalaya. In the case of a flat to fix the fair rent, the
court should take into account the total cost of the building, including staircase and then
decide it by number of flats if the flats are identical. The land around the building will be
treated as common to all the tenants and then fair rent is to be fixed. Banu & another vs
P.Venkateswaran.
Cost of construction
The fixation of rates for classes of residential and non - residential buildings as well
as the rates of depreciation was left to the Rule making power. Total cost contemplated by
Section 4 (2) was not on the basis of the original cost of construction nor on the present
market value of the building but under the rates prescribed by the Rules.
Section 4 not only provides the procedure but also the principles and method on the
basis of which the fair rent is to be determined.
The rates given in the Mini Technical Handbook issued by the Tamil Nadu Public
Works Department with regard to the cost of construction should be considered while
finding fair rent in respect of any premises. To this must be added the cost of electrical
installation and sanitary fittings. It is common knowledge that these costs have also been
escalating from time to time and 15 per cent of the total cost must be the minimum which
must be added to the bare cost of construction to arrive at the cost of construction as
contemplated by the Act The Collector of Madras, Accommodation Wing, Madras vs A.N.
Gajendran.
While calculating cost of construction under Section 4 of the Act, cost of internal
water supply also should be taken into consideration with due regards to the rates adopted
156
CLC/AM/R/05
by the Public Works Department. The Public Works Department rate cannot be treated as
confidential. Any party to the petition has got right to know the rates fixed by the Public
Works Department A.Emperumanar vs K.Raghavalu. While fixing the fair rent for any
given building the Rent Controller and the Appellate Authority should follow the
procedures laid down under Section 4 and the Public Works Department rates are not
confidential in nature and the Rent controller will also make available to the parties the
rates fixed by Public Works Department before fixing the fair rent.
Amenities
The intendment is to take into account 50 per cent from that of the vacant land to
be treated as part of the site over which the building is constructed and the other 50 per cent
of the vacant land to be treated as amenity and its cost should work out under the schedule
of the Act Shamana Unnisa Begum vs Najiah). The vacant land remaining after adding 50
per cent of the area of the site over which the construction has been put up to the area of
the site occupied by the construction, is treated as an excess portion and amenity. Amenities
such as air conditioners, lifts, electric fans, pump for water, flush outs fixed, wash basin,
staircases, out - houses, cattle sheds, garden or vacant land appurtenant to the building
enjoyed by the tenant will be also included in the cost of the building as allowances. But
many of these amenities would be taken into account in determining the market value of
the building.
Depreciation
In Venkatasamy Nayagar vs Union of India, the scope of depreciation is clearly
explained. It is not disputed that under the Act, the fair rent once fixed will continue to
govern the relationship of the parties under the Act only subject to changes allowed under
Section 5 of the Act. Hence, it appears to be entirely justified for a further scientific
procedure to allow to depreciation even with regard to brand new building.
The depreciation calculated at the prescribed rates is to be deducted from the cost
of construction as calculated according to the rates prescribed. When the cost of
construction is arrived at on such basis, the depreciation at the prescribed rate is to be
deducted therefrom backwards. This mode of deduction of depreciation is no doubt a
reverse process Parasuram lyer vs Chief Rent Controller.
Methods of fixing the fair rent
157
CLC/AM/R/05
There are several methods of fixing the fair rent. It may be based upon the Municipal
valuation, uninterrupted past payment without protest, the rents commanded by the
properties of similar description in the vicinity by the amenities provided and by a hundred
and other reasons incidental in each case Subbier vs W.P.Chetty.
The provisions of the Act empower the Rent Controller to determine the standard
rent after taking into consideration all the constituents which made up the total sum shown
in the agreement as a monthly rent. These authorities are authorised to determine rent which
is fair and reasonable.
The total cost of construction of a building shall be made up of three ingredients
namely, (1) cost of the site on which the building is constructed, (2) the cost of construction
of the building and (3) the cost of provision of anyone or more of the amenities specified
in Schedule I as on the date of application for the fixation of fair rent K. Kaliammal &
others vs Athi V.Ramachandra & others. It is duty of the landlord to produce the sanctioned
plan. Failure to do so may entitle the Court to draw adverse inference unless the non -
production is explained. The cost of electrical installations under Section 4 (5) (a) is a
matter of evidence. For the purpose of calculating the cost of construction, there cannot be
a rate different from the rate which is normally fixed by the Public Works Department and
which finds a place in the main technical hand book issued by the Association of Engineers
and Assistant Engineers ' Association of Tamil Nadu Public Works Department.
When the assessing authority arrives at its own figure of standard rent by applying
the procedure laid down in the Act, it does not in any way usurp the function of the
Controller because it does not fix the standard rent which is binding on the landlord and
tenant but it merely arrives at its own estimate of standard rent for the purpose of
determining the annual value Diwan Daulat Raj Kapoor vs New Delhi Municipal
Committee. In determining the fair rent for a building under the Section on the basis of the
capital value of the building, the Tribunal has to take into account not only the cost of
subsequent construction, improvements or additions made by the landlord but also the
original purchase price of the building. If the building is developed one made so by
substantial alterations, additions or new construction then the fixation of fair rent under the
Section may have to be made on different considerations, where a certain amount was fixed
and paid for improvements covering installation of electricity connection as well as
158
CLC/AM/R/05
consumption it is a factor that must be taken into consideration. Sheds put up by the tenants
cannot be taken into consideration while calculating the plinth area.
Apportionment
Apportionment or equal distribution of the burden of rent on every portion, If the
standard rent of a whole was a is a rule of justice and good sense. Specific amount, it stands
to reason that the standard rent of a part or sub division of the whole should not be ordinarily
exceed that amount. Therefore, in the circumstance of a given case if the Court feels that
for securing the ends of justice and giving effect to the provisions and policy of the Act, it
is reasonably necessary and feasible to work out the standard rent by apportionment it can
legitimately do so. This principle, however, is applicable where on the basic date that
portion of which standard rent is to be determined has not been let separately as one unit,
but the whole of which it is a part, has been let on that date. Apportionment postulates that
on account of its having been let on the basic date the whole had acquired a standard rent
which is to be allocated to the smaller units subsequently carved out of it Raja Bahadur
Motilal Bombay Mills vs Govinda Ram. It is obvious. However, that for the shops which
had been let out to the tenants the Rent Controller had to take into consideration the cost of
the entire building value, the fittings, etc. In other words, he had to take the entire building
into consideration for the purpose of fixing standard rent of the shops in the building let out
to various tenants. That being the position it was held that the proceedings were not
rendered abortive merely because the Rent Controller also fixed the standard rent for some
of the vacant shops. For the purpose of the appeal, the standard rent fixed for the vacant
shops may well be ignored, that will not affect the rent fixed for the shops which had been
let out to the tenants Roshanlal Mehra vs Iswar Das. In case of apportionment where the
building is occupied by different tenants floor wise and if there is a demise of any land
appurtenant to the building the real test would be how one party intended to give and how
the other party intended to take the demise and the subject matter of the demise H.C.Lodha
vs Dr. C. Ranganathan.
Date of commencement of fair rent
The effect of the decision in Hari R.Gore Sastri's case is that a landlord filing an
application for fixing fair rent is entitled to the enhanced rent from the date of his
application under Section 4 of the Act. There is no provision in the Act itself directly
159
CLC/AM/R/05
dealing with the question of landlord being entitled to such fair rent. The fair rent cannot
come into operation from a date anterior to the date of application. Although in terms the
fourth Section of the Act does not say as to from which date the fair rent fixed has to come
into force, ordinarily and generally it is to be from the date of the application. There may
be circumstances justifying the fixation of fair rent from another date than the date of
application and where there are special circumstances existing in the case the date of the
order of the District Judge (Appellate Authority) would be an appropriate one for
commencement of fair rent Miran Devi vs Birbal Dass.
The language of the Section 4 is as plain as it could be and there is nothing
intrinsically wrong or unjust in a tenant being asked to pay a " fair rent " if the rent stipulated
as payable under the lease is lower than the fair rent when that very tenant is given a right
to compel the landlord to accept " fair rent " as determined by the Controller and forego the
higher rent which he himself agreed to pay under the contract of lease. Where the fair rent
fixed is higher than the contractual rent the landlord is bound by the contractual terms of
the tenancy only to the extent specified in the Act. When an application is filed ignoring
the previous application for the same relief it is held on a fair reading of the provision of
the Act, the tenant cannot file another application for the same relief for fixing the fair rent.
Estoppel and res judicata
The landlord may prosecute a suit for eviction on the basis of termination of his
tenancy under the ordinary law but he cannot do so after obtaining a fixation of fair rent
under the House Control Order on an application on the basis of a clear and specific
recognition of the tenancy Captain Sunkavally vs Singaraju.
Any finding given in the previous proceedings with regard to fair rent for the
premises would not be res judicata because fixation of fair rent depends. Upon various
factors and special circumstances and fair rent cannot remain the same for all the time. The
position is likely to change from time to time and factors such as the importance of locality,
the prevailing rents for shops in the locality, etc., have all to be taken into account Ethirajulu
Naidu vs Hajee Abubaker & Sons.
Change in fair rent
160
CLC/AM/R/05
Sections 5 and 6 of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960,
deal with variation in rent. Section 5 of the Act deals with increase or decrease of rent due
to improvement or diminution in the accommodation or amenities in the building.
1. Increase or decrease of fair rent
There are three clauses in Section 5 of the Act. Clause (1) of Section 5 says where
some additions, improvement or alteration have been carried out at the expense of the
landlord at the request of the tenant then in occupation, the landlord can claim increase in
fair rent. Otherwise no change is permissible with respect to the fair rent already fixed or
refixed.
Clause (2) of Section 5 says, the tenant may claim a reduction in the fair rent where
there is a decrease or diminution in the accommodation or amenities provided with respect
to the fair rent already fixed.
Any dispute regarding increase or decrease of fair rent will be decided by the
Controller.
According to clause (3) of Section 5, in case the fair rent has been fixed before the
date of the commencement of the Tamil Nadu Buildings (Lease and Rent Control)
Amendment Act 1973, the landlord or tenant may apply to the Controller to refix the rent
in accordance with Section 4 of this Act.
2. Increase of rent due to taxes etc.
Section 6 of the Act deals with the situation that where the taxes and cesses payable
by the landlord increase, he can claim the excess from the tenant in addition to the rent
payable. Section 6 provides that where subsequent to the demise of the premises, taxes have
increased and such an increase not being an increase of rent in respect of the building, the
statute comes to the rescue of the landlord and enables him to recover that excess from the
tenant. This is a right secured by the landlord under Section 6 of the Act. Raval and
Company vs Ramachandran.
3. Payment of premium or advance
Section 7 of the Act declares that the landlord should not claim or receive anything
in excess of fair rent or agreed rent. Where the Controller has fixed or refixed the fair rent
of the building the landlord shall not claim, receive or stipulate for the payment of (1) any
premium or other like sum in addition to such fair rent or (ii) anything in excess of such
161
CLC/AM/R/05
fair rent. However, he is entitled to receive or stipulate for one month's rent by way of
advance. In case the landlord has already received the premium, he should refund it to the
tenant or adjust it in the rent.
The term premium is defined under Section 105 of the Transfer of Property Act.
Premium is a lump sum made outright as price for the lease. The amount paid by way of
advance is to be kept by the landlord to be adjusted or to be refunded to the tenant as
determination of tenancy Venugopal vs Doyal Prasad. The same provision will apply even
to the cases where the fair rent of a building has not been so fixed (clause 1)
Consequences of fixation of fair rent are set out in clauses 1 and 2. Sub section (3)
declares that any contravention shall be null and void.
Landlord's liability to give receipt for rent and tenant's right to deposit rent
Sections 8 & 9 of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960
deal with the landlord's liability to give receipt for rent or advance and tenant's right to
deposit rent in certain cases respectively.
Every landlord who receives any payment towards rent or advance shall issue a
receipt duly signed by him for the actual amount or rent or advance received by him.
If the landlord refuses to accept or evades the receipt of rents, the tenant is given a
system of remedies which he can resort to under the said system Marudhachala Udayar vs
Dhandapani. The provisions of Section 8 lays down the procedure step by step. 1) When
he refuses to accept or evades rent, the tenant may request by notice in writing the landlord
to specify the Bank within 10 days from the date of receipt of notice, to deposit the rent
due. 2) Then it is for the landlord to specify the bank situated within the City or Town. 3)
If he speficies the Bank, then it is duty of the tenant to deposit the rent in the Bank. 4) In
case, the landlord does not specify a Bank as mentioned above, then the tenant can remit
the rent to the landlord by money order after deducting the money order commission. (5)
If the landlord refuses to receive the rent remitted by Money Order, the tenant may deposit
the rent before the Controller.
The Rent Control Act is a piece of social legislation designed to protect the tenant
from landlords on frivolous, insufficient or purely technical grounds. Even as the Act
162
CLC/AM/R/05
allows the eviction of tenant on the ground of non - payment of arrears of rent, the
provisions affords sufficient protection to the tenant against eviction, if the tenant deposits
the rent in accordance with the provision Sheo Narain vs Sher Singh.
Right of tenant to deposit rent in certain cases where the address of the landlord or
his authorised agent is not known to the tenant, he may deposit the rent lawfully payable to
the landlord before the Controller in such a manner as may be prescribed and continue to
deposit any rent which may subsequent became due until the address of the landlord or his
authorised agent become known to the tenant - Section 9 (1).
Tenant contending that landlord refus to receive the rents for more than two years,
but not taking steps to deposit rents in court invoking Section 8. Tenant held guilty of wilful
default Hakim and co represented by its Partners vs. Radha Krishnan and others.
Section 11 (1) is to the effect that no tenant against whom an application has been
made by a landlord shall be entitled to contest the application before the Controller on the
application unless he has paid or pays to the landlord or deposits with the Controller or
Appellate Authorities as the case may be, all arrears of rent due in respect of the building
upto the date payment of deposit and continues to pay or deposit any rent which may
subsequently become due in respect of the building until the termination of the proceedings
before the Controller or Appellate Authority. Badrunissa Begum vs Palani Ambalam. It is
evident from this, that the payment of arrears is a condition precedent to the hearing of the
tenant on the objections raised by him. If the tenant commits wilful even during the
pendency of the proceedings despite several opportunities given to him by the Rent
Controller and Appellate Authority, he is liable to be evicted under Section 11 (4). It is only
to safeguard the interest of the landlord in relation to such recalcitrant tenants, a provision
like Section 11 (4) has been introduced P. Lachiram vs K.M.Kumaresan.
However when the status of the tenant is very much in issue and till that is
determined and till he is adjudged as a tenant, there can be no question of calling upon him
to deposit whatever was lawfully due within the meaning of the section Abdul Aziz khan
vs Appachi Gounder.
Where there is any dispute as to the amount of rent to be paid or deposited under
sub - section (1) the Controller or the Appellate Authority will determine summarily the
rent to be so paid or deposited on application made by the parties Section11 (3).
Failure to pay the rent
Section 11 (4) is intended to make the tenant alert during the entirety of the
proceedings and conscious of his obligations and statutory duties of payment of rents. Non
- compliance of the conditional order under Section 11 (4) will entail eviction. That is the
very purpose of Section 11 (4). In such a case, the main petition is not to be construed as
pending since a subsequent order of eviction will be passed in the main petition also
Swaminatha Mudaliar vs S.M. Singaram alias Sinniah. Where a conditional order of
eviction has been passed under section 11 (4) the deposit of arrears of rent in terms of
Section 14 (1) is essential even for filing the appeal. An appeal filed without complying
with the conditional order is not maintainable. Any subsequent deposit will not cure the
original non - compliance. Though this sub - section is strictly applicable to the proceedings
164
CLC/AM/R/05
before the Rent Controller and the Appellate Authority, the principle can be and should be
applied to proceeding in a revision petition also. Order to stop all further proceedings and
for eviction under Section 11 (4) is only a consequential order and absence of reasons is
therefore not a vitiating circumstance. Where fair rent is fixed by Court, the tenant ought
to pay the fair rent after it was determined. But where he has paid only at the old agreed
rate even after the fixation of fair rent, an order under Section 11 (4) could be passed with
reference to the balance amount, since the tenant has not paid the balance amount
P.S.Hussain vs C.A.Kabeer. Sub - section 5 of Section 11 enables the landlord to withdraw
the amount deposited under sub section (1). For that purpose he has to file an application
to the Controller or Appellate Authority as the case may be.
Eviction of tenants
Sections 10, 14, 15 and 16 of the Tamil Nadu Buildings (Lease and Rent Control)
Act, 1960 deal with the eviction of tenants. Section 10 (1) says " A tenant shall not be
evicted whether in execution of a decree or otherwise except in accordance with the
provisions of the Section or Sections 14 and 16. However, where the landlord is the
Government, this Section has no application.
The Section 10 is a lengthy one consists of 8 clauses. Clauses (2) and (3) of Section
10 deal with the eviction of tenants apart from Section 14. The landlord who seeks to evict
his tenant should apply to the Controller for a direction in that behalf. If the Controller after
giving the tenant a reasonable opportunity of showing cause against the application is
satisfied that the tenant is liable to be evicted on any of the grounds mentioned below, will
pass an order directing the tenant to put the landlord in possession of the building.
Otherwise he will make an order rejecting the application.
Notice to quit is not a pre - requisite for filing an eviction petition under the Act
Lakshmidas Ved vs. Parag Mawani.
The grounds specified under this Act to evict a tenant are:
1. Wilful default - section 10 (2) (1)
2. Sub - letting - section 10 (2) (ii) (a)
3. Different user - section 10 (2) (ii) (b)
4. Acts of waste - section 10 (2) (iii)
5. Immoral or Illegal purpose - section 10 (2) (iv)
165
CLC/AM/R/05
1. Wilful default
The first ground mentioned under Section 10 (2) (1) for the eviction of a tenant is
wilful default. According to this clause, where the tenant has not paid the rent due to him
in respect of the building within 15 days after the expiry of the time fixed in the agreement
of tenancy with his landlord, the Rent Controller will pass an order for the eviction. In case
there is no such agreement, last day of the month next following will be taken into
consideration.
Notice before filing a petition for eviction on the ground of wilful default is not
mandatory. The landlord can file a petition of eviction under Section 10 (2) (1) directly
without giving notice Pandian K.S. vs. G. Rukmani Bai and others.
A mere default in payment of rent is not sufficient to evict a tenant. The default
must be wilful default which refers the state of mind of the tenant. Wilful default or
intentional default is a default accompanied by a particular state of mind which cannot be
directly proved but has to be inferred from the entire complex set of circumstances. To hold
that a tenant is wilful in non-payment of arrears of rent, it must be proved beyond doubt
that he had exhibited supine indifference and callousness - Rangaraju vs Parthasarathy.
There is a clear difference in law between default and wilful default. While non - payment
of rent within the time specified will certainly be tantamount to default, obviously any
default cannot be treated in law as wilful default. The legislature presumably was very
cautious of all these distinctions when the Rent Control Act laid down that mere default
prolonged or established was not a ground for eviction but that wilful default was alone a
ground for eviction.
In [Lakshmi Bai vs. Gita Bai Natwarlal], it is pointed out " while ordering eviction
on the ground of wilful default, the totality and cumulative effect of all the circumstances
should be taken into account and not any particular feature in isolation, to decide whether
the default is wilful or mere default ". Mere agreement of sale will not terminate the
landlord -tenant relationship and the liability of the tenant to continue to pay the rent, The
tenant must continue to pay the rent unless there are specific recitals to the contrary in the
agreement of sale. Kuppammal vs Saghunthala.
167
CLC/AM/R/05
Explanation clause says for the purpose of this sub - section, default to pay shall be
construed as wilful if the default by the tenant in the payment continues after the issue of 2
months’ notice by the landlord claiming the rent.
If there was a continuous default which is unexplained, a Court will be well justified
in coming to the conclusion that the default is wilful and deliberate - Thangasamy Nadar
vs Pappa. The burden to show that the default is not intentional or deliberate is always on
the tenant. To arrive at a finding that the tenant is in wilful default, the mere fact that the
tenant is in arrears of rent would not be enough and the Court has to consider where there
has been intentional violation of the clear obligation to pay rent Venkataramaswami Iyer
vs Abdul Wahab. The provision contemplates an agreement between landlord and tenant
as regards the time for payment of rent. Parties may stipulate for payment of rent in the first
of the month for which rent is payable or during the period of the month or at the end of
the month Venugopal vs Doyal Prasad. In the absence of a specific agreement between
landlord and tenant that the rent may be paid on such time as the tenant chooses. The law
compels the tenant to pay the rent regularly month after month where fair rent is fixed by
Court, the tenant ought to pay the fair rent after it was determined.
Rent is lawfully due as soon as the proper date for payment has arrived. If any date
is fixed, the tenant is bound to pay the rent within fifteen days thereafter. A duty is cast on
the tenant to make payment or tender every month if he desires to take advantage of the
provisions of the Act Anandalwar vs Second Judge, Court of Small Causes. It is pointed
out in Vasuvaithiar P. vs. R.M. Rangoo Chettiar, that the tenant is under a statutory
obligation to pay rent every month according to the agreement. In case the tenant fails to
do so, he is a defaulter. Even if the rents are paid during the course of proceedings, it cannot
absolve him from contending that he is not a wilful defaulter, especially because when
litigation is pending, the tenant should have been more careful to discharge his statutory
obligations. It is the duty of the tenant to pay the rent in cash though it is open to the landlord
to accept the cheque as a conditional payment of the amount. The question however still
remains whether in the absence of an agreement between the parties tender of rent by
cheque amount to a valid discharge of the obligation. It would have no application where
the landlord had clearly informed the tenant that payment by cheque would not in future be
accepted and thereafter the tenant must make payment only in the current coin of the realm
168
CLC/AM/R/05
and the tenant has no right to insist upon that the landlord should accept the cheque. In a
case the landlady issued a notice demanding payment of arrears and there was nothing to
signify the willingness of the landlady to receive the payment and the tenant deposited the
arrears into Court. It was held that the deposit into the Court was tantamount to payment to
the landlady Lakshman Rai vs Ram Kumar Agarwal.
Paying the arrears of rent after the institution of suit by the tenant does not affect
his liability to eviction and the Courts ' power to pass a decree for eviction. However much
the tenant has paid the amount subsequently the default Pillai 1973 TNLJ.1). committed by
him cannot be cured- Kesavan vs Vinc So also the fact that the landlord has in the past
allowed the tenant to pay the rent after the due dates does not amount to waiver of his right
to future payments on the due dates. If tenant has not remitted the rent even after knowing
the consequences of non - payment, then the default committed by the tenant will be taken
to be wilful- Jose vs Ramathal.
When the relationship is strained, the tenant is duty bound to deposit the rents as
and when it becomes due. Any delayed payment can only be construed only as a deposit
made at the risk of the tenant. It was held in Hakim and Co represented by its partners vs.
Radhakrishnan and others that the tenant contending that the landlord refused to receive
the rents for more than two years, but not taking steps to deposit rents in Court invoking
Section 8. He is guilty of wilful default.
It is the duty of the tenant to tender full amount of the rent. Failure on the part of
tenant to do so will entail the landlord to refund the money orders. The omission on the part
of the tenant to pay the full amount of the rent cannot be anything other than supine
indifference and would undoubtedly constitutes wilful default. Likewise where fair rent is
fixed by Court, the tenant ought to pay the fair rent after it was determined.
Under Section 22 of the Act, the tenant is not permitted to deduct the unauthorised
repair charges from the rent payable to the landlord.
As a matter of fact the Legislature by introducing the explanation to Section 10 (2)
of the Act has given a helping hand to the tenant not to commit default by enunciating that
if after demand for arrears they fail to pay the arrears of rent within the prescribed time then
it is statutorily called wilful default. Kumarasamy Mudaliar vs Radhakrishnan. It has to be
found in each case whether there has been a wilful default prior to the issuance of notice
169
CLC/AM/R/05
and where there has been a continuation of such wilful default even after a notice
demanding arrears has been issued, both the circumstances as above are satisfied and it is
a case from which the tenant cannot escape. Baskaran vs Panneerselvam).
It is held in plain language under Section 109 of the Transfer of Property Act, once
the lessor transfer the property leased, the transferee of the property becomes subrogated
to the lessor / transferor in respect of the rights and liabilities of the property so transfered
Ramasamy vs Thulaja. As we have seen earlier, the mere default committed by the tenant
will not entail eviction. The default should be wilful, intentional or incidental. The
nonpayment of Corporation tax by the tenant, when there is no specific undertaking to pay
the same by the tenant will not constitute wilful default within the meaning of the Section
10 (2) (1). The order of eviction should not have been passed without finding whether the
default was wilful. The Court has to give a definite finding about the tender of the rent by
the tenant and refusal by the landlord to accept the same.
Once tenant admits default, burden is on him to prove that the default was not wilful
Muneeruddin K.M. and others vs. P.M. Punnoose.
2. Sub - letting
The next ground mentioned under Section 10 is sub - letting of the premises by the
tenant without the permission of the landlord. This ground for eviction is mentioned under
Section 10 (2) (ii) a. According to this clause (1) there must be a transfer of right under the
lease or sub - letting the entire building or any portion thereof and (ii) it must be without
the written consent of the landlord.
There must be a specific clause in the lease deed authorising the tenant to sub - let
the premises or transfer his right. In the absence of such clause, the tenant cannot sub - let
the premises. It is evident from reading the Section 10 (2) (ii) (a) that the tenant cannot
without the written consent of the landlord transfer his right under the lease or sub - let the
entire building or any portion thereof, if the lease deed does not confer him any right to do
so. VSK Chetty Choudry vs Veerasamy. Sub - letting is made a ground for seeking eviction
by the landlord. Consent may be expressed or implied provided it is in writing.
When the tenant is unable to establish that he had written consent from the landlord
while admitting sub - letting, the landlord is entitled to succeed Gulam Rasool vs. T.S.
Govindarajan and others.
170
CLC/AM/R/05
to occupy the premises and had desisted himself completely of the possession of the
premises or a part thereof. If so, then he is guilty of sub - letting. If the tenant has permitted
another person to use the premises, along with him, it may not amount to sub - letting. To
accommodate a guest, even a paying guest temporarily will not constitute sub - letting.
In order to evict a tenant on the ground of sub - letting, there must be transfer of
exclusive right to enjoy the demised premises by the tenant in favour of a third party and
the said right must be in lieu of payment of some compensation of rent. There cannot be
sub - letting unless the lessee parted with legal possession.
The burden of proving sub - letting is on the landlord and even if direct evidence is
not there circumstantial evidence could be acted upon. It is for the landlord to establish
independently his plea that the respondent tenant has sub - let the premises.
3. Different user
Section 10 (2) (ii) (b) deals with the ground of different user for the purpose of
eviction of a tenant by the landlord. Under this clause, the Rent Controller is entitled to
order eviction where the tenant had without the written consent of the landlord used the
building for a purpose other than which it was leased out. If the tenant wants it to be used
for the other purpose, he must obtain written consent of the landlord.
In order to decide whether a building let as a dwelling place is being used for a
different purpose, the nature of trade or business carried or the nature of the person coming
and going, the duration of their stay, their hours of arrival and departure and purpose of
their visits as also the manner in which the conduct themselves on the premises would all
be relevant and material. Krishnaswami Aiyar vs Natesan. Where the tenancy was for a
residential purpose and the tenant kept scrap iron in one room, it was held that as there was
no substantial user, it was sufficient to negative the request of the landlord for eviction. A
fugitive sporadic user of the leased premises for a limited period ought not to be taken as
the test of conversion to some other use, inconsistent with the use contemplated by the
original user Abdul Razack vs Umapathy. Unless the premises let for running a tea stall is
converted with a different shop by the substitution of another business, mere selling of
idlies and vadais procured from outside and not prepared in the premises along with tea,
will not amount to carrying different business Meenakshi vs Harinarayanachar.
172
CLC/AM/R/05
In Muthu Thevar vs. S. Indirani and another, the premises was leased out for
running a petty shop but tenant introduced xerox copies machine and doing business. It was
held that the tenant had. Used the building in question for the purpose other than that for
which it was leased out.
It was held in Buhari Hotels vs. Dr. L. Murugan and another that, it is clear that
unless the new business, which the tenant starts is akin or allied or ancillary to the business
which the tenant is already carrying on, it must be held that the building had been put to a
different user. In other words, unless the new business has some connection however
remote to it may be with the original business started, the tenant cannot escape an order of
eviction, if the ground of different user is put against him.
Where the lease was for the purpose of a soda factory but it was used for storing
soda manufactured elsewhere, it was held to be different user. Chidambaram vs Ganapathi
Pillai. The premises let out for residential purposes was used for playing cards regularly. It
amounted to premises being put to use for a purpose other than that for which it was let out
Yuvaraj vs Rajeswari.
Where the premises was not let out for any specific purpose, the use of the premises
for the business of arrack by the tenant instead of textile business will not amount to
different user. Even assuming that the tenant put the demised premises for different user as
long as the interest of the landlord is not prejudiced a small change in the user would not
be actionable Ramasamy Gounder vs Ranganayaki.
The burden was on the landlord to make out a case establishing the dominant or
primary user of the shop for a purpose different from that or which it was let. It was for the
landlord to lead proper and sufficient evidence.
4. Acts of waste
The acts of waste committed by the tenant is another ground for eviction. Where a
tenant has committed or caused to be committed such acts of waste as one likely to impair
materially, the value or utility of the building, he is liable to be evicted by the landlord
according to Section 10 (2) (iii). The object is to prevent tenants making indiscriminate
alterations and additions without the consent of the landlord affecting the value and utility
of the building. Because any alteration made by the tenant may likely reduce the age of the
building or its value.
173
CLC/AM/R/05
The leading case in this respect is Damodaran vs Loganatha. In this case the scope
and nature of waste is clearly explained. " It is not waste if the premises is destroyed in the
course of reasonable user and any user is reasonable, if it is for a purpose for which property
was intended to be used and if the mode and extent of the user is apparently proper, having
regard to the nature of the property and what the tenant knows of it, and in the case of
business premises to what as an ordinary businessmen he might to know of only such acts
which are prejudicial to the interest of the landlord in so far as the premises are concerned
and physically and demonstrably lessen the utilitarian value of the building are viewed as
acts of waste ".
The Legislature has clearly intended to prohibit a tenant from causing damage to
the building or doing any act which may affect the utility of the building. There may be
cases in which acts of tenants may add to the utility of the building for some time but they
may cause damage to the building. There may be also cases where there might not do any
damage to the building but utility of the building might be seriously affected. In either of
the cases, the tenant should be held to have committed acts of waste coming under the
section Shah Jetmull vs G.Jumnadas & Company.
In Sha Nirbhayala Bhahadurmal vs Krishna Rao M Nikam, it is mentioned that the
changing the nature of the demised premises tantamounts to technical waste and the
demolition or removal of the doors and shutters, pillars etc. will clearly amount of doing an
act, which affects the utility of the building by putting up a better appearance.
It was held in Viswanathan A. vs. A. Sarangapani, that mere commission of damage
by itself will not be a ground of eviction. The act of waste complained must be to impair
the value and utility of the building permanently and to a substantial degree.
It is only those acts of waste which would very probably impair the value of the
building or its utility amount to ground of eviction Narayanasamy T.N. vs. N. Govindaraj.
The illustrations given below would indicate what are acts of waste and what are
not. The replacement of the tiled roof by a zinc sheet is an act of waste. The construction
of an overhead tank on the top floor of the building which is not in a condition to bear the
additional weight is waste within the meaning of the Act (Damodaran vs Loganatha
Chettiar). In a case a tenant lowered level of the steps because it was too high and the clients
had trouble in going into the shop was held as an act of waste. The replacement of wooden
174
CLC/AM/R/05
doors with rolling shutter and lowering the floor level in the process is considered as an act
of waste considering the age of the building. The user of a garage as a room by the tenant
cannot be said to be an act of waste in the absence of evidence to show that such user has
materially impaired the value or utility of the building. Putting up a sun shade in front of
the shop is not an act of waste.
obtained by the landlord under this Section are (1) the landlord must establish that the tenant
has ceased to occupy the building for a continuous period of four months and (ii) that there
was no reasonable cause for the same. The clause applies only to the places other than a
hill station. The word ' occupy ' means ' to take possession of ' or ' to have and have in
possession '. The onus of proving that the tenant was not in occupation of the premises for
a period of more than four months continuously is entirely on the landlord who alleges the
same (Srinivasan vs Ramasamy Chettiar). The primary burden of proving the ingredient of
Section 10 (2) (vi) is on the landlord though the tenant cannot be absolved the
responsibilities to adduce the necessary evidence because the facts with regard. To his
occupation are facts within his special knowledge Duraiappa Nadar vs Thirupurasundari
Ammal.
Where the tenant has left his furniture in the premises, he is ' occupying it '. The Act
does not require that the tenant should carry on the business in order to prevent eviction. It
is sufficient if he occupies it. Keeping his furniture the premise is sufficient occupation
within the meaning of the Section Abdul Rahim Bros vs Selvan Bros.
8. Denial of the title of the landlord
Yet another ground for eviction of the tenant is denial of landlord's title. This is
provided under Section 10 (2) (vii). There is one more provision under this Section by the
way of proviso to Section 10 (1) in this regard.
Under Section 10 (2) (vii) it must be established that the tenant should have denied
the title of the landlord or claimed a right of permanent tenancy. Further such a denial or
claim should be a bonafide. If these things are satisfied, the Controller will pass the order
of eviction and direct the tenant to put the landlord in possession of the building. In case,
the Controller is not so satisfied he will make an order rejecting the application.
The second proviso speaks about the jurisdiction of the Civil Court to pass a decree
for eviction. This Act does not bar of jurisdiction of Civil Court except to a limited extent,
in the second proviso to Section 10 (1). The second proviso to Section 10 (1) indicates that
the landlord shall be entitled to sue and obtain an order of eviction in a Civil Court on any
of the grounds mentioned in Section 10 and Sections 14 to 16 under certain circumstances.
An examination of the provisions of the Act reveals that this is the only case where a
landlord is given a right to resort to the Civil Court. In all other cases, if the landlord is
177
CLC/AM/R/05
desirous of obtaining an order of the eviction, he has necessarily to apply to the Controller
under Section 10 (2) on any one of the grounds mentioned therein.
The proviso contemplates, first, a petition before the Rent Controller himself for
eviction and a denial of title in such a proceeding. If the Controller decides that a denial of
title is bona fide and records a finding in that effect, then the landlord is entitled to sue for
eviction of the tenant in a Civil Court. Sanjeevi Naidu vs Chittibabu Mudaliar. If the denial
of title had been bona fide, the parties would have to be referred to a Civil Court to
determine the question of title Abdul Aziz Khan vs Appachi Gounder. So the condition
precedent for exercise of jurisdiction by Civil Court is, the denial of title by the tenant
before Rent Controller Court and finding by the Controller that the denial or claim of tenant
is bona fide.
In Thanikachala Naicker vs Vinytheertha Vinayagar Koil the scope of the
jurisdiction is clearly explained. It is not within the jurisdiction of the Rent Control Court
to give a final decision regarding the title of the property. This is a question to be decided
by Civil Court and the title Rent Court has only to examine whether denia the part of the
tenant is bona fide or not. Where the dispute is as regards the relationship of landlord and
tenant and such a dispute can be decided only by the Rent Controller, this is an incidental
question to be decided by the Rent Controller, while deciding the question as to whether
the grounds for eviction has been Such an incidental question has to be decided by the Rent
Controller before he passes an order of eviction against the tenant and therefore, as such a
question the parties cannot be referred to Civil Court. Kuppa Pandithan vs Marudhala
Pandithan. In Kesava Naicker vs Sivagnana Mudaliar], it is further discussed. If the
Controller decides that there is no such relationship, the proceeding has to terminate
without deciding the main question of eviction, but if on the other hand if it is found that
the relationship is that of landlord and tenant the further proceedings have to go on.
Where the claim of the tenant is a bonafide one, then the proviso will apply. Where
the lease agreement provided for a period of fifteen years and the landlord admitted that
the site belonged to Devasthanam and subsequently the lessee on coming to know of the
fact, that the Dewasthanam had obtained a decree for eviction against the lessor, wrote a
letter calling upon him to make good of the defects in title and satisfy him that the lessor
had a clear and complete title, it was held that the denial of title to grant an effective lease
178
CLC/AM/R/05
cannot be said to be not bona fide. The case falls within the purview of the proviso. Seshadri
vs Ramasamy Pillai.
The denial of title may be pleaded by the tenant before filing the petition for eviction
or it may be made in the course of the eviction proceedings. From the language of the
proviso itself, it is quite clear that a Civil Court is only in different Forum than the Rent
Control Court and even in such a suit, if it is based on tenancy, eviction can be ordered only
as per the provisions of the Rent Control Act Nainammal Bibi vs Umma Habiba.
9. Personal occupation Under Section 10 3 (a) a landlord can apply to the Controller for
an order directing the tenant to put him in possession if the landlord requires it for his
occupation. There are 3 clauses under Section 10 (3) (a). Clause (1) relates to landlord's
request for his occupation of a residential building. Clause (ii) relates to keeping a vehicle
in the non - residential building. Clause (iii) related to requirement of non - residential
building for the purpose of carrying on a business. This provision is subject to the condition
that it must be required for the bona fide personal occupation. It must be required for the
landlord's own occupation or for the occupation of the any member of his family provided,
they are not occupied a residential building of their own in the city, town or village
concerned.
A landlord can ask for eviction of a residential building for residential purpose and
non - residential building for non - residential purpose Lakshmanan vs Hajee Alavudeen
Saheb Sons. Section 3 (a) compartmentalises the nature of the buildings and the persons
can obtain possession of a residential building for his own occupation only for a residential
purpose and similarly a person can obtain vacant possession of non - residential building
only for the purpose of carrying on his own business. Words, Section 10 (3) (a)
compartmentalises the requirements of the landlord with reference to the nature of
buildings. Rangaswamy Reddiar vs Jayaraj.
i) Recovery of residential building: Clause (i).
If it is a residential building, the landlord will have the right to recover possession
of it, if he has no other residential building of his own and in a similar way if it is a non -
residential building, the landlord will have the right to recover possession if he has no other
non - residential building of his own Chellammal vs Accommodation Controller.
179
CLC/AM/R/05
The dominant purpose of letting will determine the character of building whether it
is residential or non - residential. Balakrishna Menon vs Govindan. In the absence of any
definite evidence with reference to the nature of the building that has been let out, the Court
can only turn to the user of premises and the acquiescence on the part of the landlord.
Under Section 10 (3) (a) (i) the landlord is bound to prove that he is not occupying
any buildings of his own or that of the members of his family in the Town or City as the
case may be. It is well established by a series of decisions of the Court which is not disputed
either, that it is not for the tenant to dictate as to what portion the landlord should reside for
the own purpose. It is entirely a decision with the landlord which a tenant cannot object. In
other words, the tenant has no right to dictate to the landlord which house he should choose
Muthiah Asari vs Ramanathan.
Tenant cannot dictate either terms to landlord or how else landlord can adjust
without evicting tenant. Further it is for the landlord to decide the choice of town, where
he wishes to live and not open to the tenant to say that he has better accommodation
elsewhere. There is also no basis in the tenant contending that persons who had occupied
high position and living in more comfortable accommodation would not live in a small
house after retirement. Balambal P. vs. Major General (Retd.) D.K. Moorthy and another
in Nazeer vs. N.T. Thayammal, it was held that inconvenience or lack of amenities is a
matter on which the tenant has no say when the landlady proves her bonafides and wants
to occupy her own buildings, she is entitled to an order of eviction. The contention of the
tenant it is below her status to reside in the schedule building has no merit.
In case where a landlord who is in occupation of a rented building seeks to evict his
tenant from his own building on the ground that he is himself under orders of eviction and
therefore requires the building, it is not obligatory to show that he has resisted the eviction
proceedings against him where there are no reasonable chances of success. In the absence
of collusion or malafides a person is at liberty to decide for himself whether to resist a case
against him or not. Subbiah Gounder vs Rami Gounder. (ii) Requiring the building for
keeping vehicles and for carrying a business: Clauses (ii) and (iii).
With reference to non - residential buildings, the Act makes a distinction between
two sets of non - residential buildings one is under section 10 (3) (a) (ii) and the other under
180
CLC/AM/R/05
Section 10 (3) (a) (iii). The first one is for the purpose of keeping a vehicle or adapted for
such use. The second is for the purpose of carrying on his business.
For the purpose of obtaining possession of non - residential building for keeping his
vehicle, the landlord has to satisfy two conditions; namely (1) that the non - residential
building is to be used for the purposes of keeping a vehicle or adapted for such use, (ii) he
or any member of his family requiring the said building, is not occupying any such building.
The vehicles in question are in the possession of the landlord. A premises adapted for such
an use means only that already at the time of the application, it was adapted for keeping a
vehicle. Adapted ordinarily means suitable. If the premises in question could be remodelled
or made fit for the purpose of keeping vehicle, it can be said to be adapted for such a use.
For obtaining possession of non - residential building for carrying on business under
Section 10 (3) (a) (iii) the following requirements must be satisfied:
i) The building should be non - residential in character,
ii) The landlord should be carrying on business on the date of his applying for
eviction,
iii) The landlord should not be occupying any other non - residential building
belonging to him for the purpose of his business, and
iv) The landlord's claim is bona fide for his business needs and not based on oblique
motives like trying to obtain more rent or to harass the tenant.
[Bank of Baroda represented by the Chairman vs Mahendra Dada and two others].
Where a landlady requires a building for his son who is to set up a clinic after completing
the medical course in six months’ time, the tenant cannot plead and insist that she should
wait till the completion of course and then file the petition).
The opening of a branch office by the landlady's son would be sufficient ground to
enable the landlady to ask for her own premises on the ground that it is required for her
son's business Anandayee vs S.M.Khaja & Co. The eviction petition by an advocate for
carrying on the profession of an advocate must be regarded as business for the purpose of
the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 and the appellant must be
held to be entitled to recover possession for the purpose of carrying on the profession of
law Subramania Mudaliar vs Kolapur Traders. The word ' business ' has no technical
meaning but is to be read with reference to the object and intendment of the Act in which
181
CLC/AM/R/05
it occurs. What constitutes carrying on business ' is essentially a question of fact or a mixed
question of fact and law. Each case will have to be decided on facts and no general
proposition can be evolved as to what constitutes ‘carrying on business’ Govinda Chettiar
vs Pachayappa Pandithan. The expression for his own occupation ' cannot be restricted only
to the occupation of the landlord himself, but has to be interpreted to include the landlord's
family and dependents.
In Jailani Beevi P.K.M.S vs. J. Madanial, the owner of the building was residing in
the first floor along with her family. Her husband was doing business in a smaller area in a
nearby locality. The business was not doing well. So the landlady filed a petition under
Section. 10 (3) (a) (iii) whereby a demand was made for occupation of the ground. floor for
accommodating her husband’s business. The court held that she can ask for premises in the
hope that the business may improve and the petition is maintainable.
Where a landlord alleges that he requires the premises for his own occupation and
he intends to occupy it after its demolition and reconstruction, it is held that the case falls
under the need of personal occupation and not under eviction for demolition.
A subsequent purchaser has no right to continue the proceedings instituted by the
erstwhile landlord under Section 10 (3) (a) (iii) as the right is a personal right Srinivasan
and another vs. Santhana Selvaraj and another.
No further eviction after recovery
The second proviso under Section 10 (3) is explicit that if a landlord has obtained
an order under Section 10 (3) (a) he cannot obtain further orders of eviction in respect of
any other non - residential building of his own. Once the landlord gets relief under the said
provision, Section 10 (3) (a) he cannot make use of the same provision in respect of yet
another building, even though his claim may be bona fide Jayaraman vs Ramalingam.
Recovery of building by religious, charitable, educational or other public institutions
Section 10 (3) (b) is a special provision applicable to religious, charitable,
educational or other public institutions. According to this clause, the institutions may apply
to the Controller for the purpose of institution even though they are in occupation of another
building in the same town.
10. Additional accommodation
182
CLC/AM/R/05
183
CLC/AM/R/05
Under Section 10 (3A) where the landlord has been or is a member of Armed forces,
he or his members of family may apply to the Controller for the recovery of the building
for the residential purpose.
No eviction of persons in essential services and educational institution:
Under Section 10 (4), no order for eviction shall be passed under sub - sec (3), (1)
against any tenant who is engaged in an employment or class of employment Notified by
the State Government as an essential service or (ii) in respect of any building which has
been let for use as an educational institution.
Landlord's failure to occupy:
Section 10 (5) imposes duty upon the landlord to occupy the building after the
eviction, within the stipulated time. Otherwise the tenant is entitled to apply for restoration
of possession. The Legislature in its wisdom has provided against improper eviction by
unscrupulous landlord by providing a safety valve in Section 10 (5) (a) of the Act which
enables the tenant to ask for restitution, in case the landlord fails to occ Nadar 1969 (1)
MLJ 629 at 634). Eviction is not abused. The premises. Solai Nadar vs Guruswami this is
in order to ensure the provisions for eviction are not abused.
Other provisions:
Section 10 (6) speaks about the filing of petition which is frivolous or vexatious
against the tenant, for which the Controller may direct the landlord to pay compensation to
the tenant not exceeding 50 rupees. Section 10 (7) creates a fiction as to continuation of the
tenancy where the application of the landlord is rejected. Section 10 (8) imposes a
restriction on a class of persons who are included within the definition of the word "
landlord '. Those persons (like agents) alone are entitled to apply for the eviction of a tenant
only with the previous written consent of the landlord. The persons dealt with under Section
can be divided into 3 categories (1) person who own the building as absolute owner, (ii) a
person who owns it as co - owner along with another owner or other co - owners and (iii)
a person who acts on behalf or for a benefit of the beneficial owner of the building such as
Agent, Trustee or Guardian etc Vasudevan vs Ramachandran.
11. Demolition and reconstruction
The last ground of eviction is provided under Section 14 of the Tamil Nadu
Buildings (Lease and Rent Control) Act, 1960 namely demolition and reconstruction. The
184
CLC/AM/R/05
title given to Section 14 is ' recovery of possession by landlord for repairs and for
reconstruction. The clauses (a) and (b) are relevant for our purpose. The landlord may apply
to the Controller for the recovery of the building if the building is bona fide required by
him:
1) for the purpose of carrying out repairs. Section 14 (1) (a).
2) for the immediate purpose of demolishing it and erecting a new building on the
site of the building. Section 14 (1) (b).
The sub section (2) deals with the undertakings given by the landlord before the
Controller. The clause (3) prohibits the conversion of residential building into non -
residential and vice versa. The clause (4) speaks of the legal fiction regarding continuity of
the tenancy.
Now let us consider the two aspects of the Section 14 and other related matters in
detail.
1) Recovery of the building for carrying out repairs:
Section 14 (1) (a) is an enabling Section entitling a landlord to take temporary
possession of a building for purposes of effecting repairs and for being re - delivered to the
tenant after the repairs are over. This is one of the Sections in the Act which salutary in
scope and beneficial to the tenant. N.P. Rao vs Premier Auto Electric Company. There are
two requirements to be satisfied for the application of Section 14 (1) (a). The two
requirements are, firstly the building is bona fide required by the landlord for carrying out
repairs and secondly such repairs could not be carried out without the building being
vacated by the tenant in occupation. Ashokraj Kandaswamy vs Thiruvenkataswamy. If
these requirements are fulfilled, then the Controller has no discretion but to pass an order
directing the tenant to deliver possession of the building to the landlord. The repairs to be
carried out must be major one, without vacating the building it could not be carried out and
it will not cover to carry out white washing and fitting up the doors etc. Further, if an order
is passed under Section 14 (1) (a), it is an order which would refer to totality of lease hold
and not a part thereof. Therefore, a portion alone cannot be ordered under this clause.
2) Recovery of building for demolition and reconstruction:
In Savundappa Chettiar vs Indrani Ammal, the scope of clauses (a) and (b) of
Section 14 (1) is explained. There is a distinction between a claim for eviction made by
185
CLC/AM/R/05
landlord under clause (a) and clause (b) of Section 14 of the Act. When a landlord bona
fide requires immediate possession of the building for demolishing it and reconstructing a
new building, the statutory tenant ceases to have any right in the building. But when the
landlord bona fide requires the building for carrying out repairs which cannot be carried
out without the building being vacated, he has to give an undertaking before the order of
eviction is passed in his favour that he will offer the premises again to the tenant on
completion of the repairs.
When the intention of the landlord for demolition and reconstruction is proved to
be genuine and not spurious or suspicious, he will be entitled to an order of eviction under
Section 14 (1) (b) whether or not the condition of the building is such as to require
immediate demolition, the age and dilapidated condition of the building not being sine qua
non for such eviction 1982 (1) MLJ 94).
Under this Section, only factor to be proved by the landlord is that his requirement
of the building for demolishing it for the purpose of eviction is bona fide. The term ' bona
fide ' includes the means of the landlord for the reconstruction of the building and other
steps taken by him in this regard. The condition of the building is not a relevant
consideration for determination of such bona fide S.S.Misrilal vs The Accommodation
Controller, Madras. Apart from this, the Controller will take into the consideration of
conditions of the building as a relevant factor. The Section 14 (1) (b) does not state that old
and dilapidated buildings alone are governed by Section 14 (1) (b). If the landlord comes
to Court stating that the building is old and dilapidated, he must prove it. The principle laid
down in metal waves case will not apply to all petitions under Section 14 (1) (b).
Thus, for ordering eviction on the ground of demolition and reconstruction, the
building need not be in imminent danger. The Rent Controller has to take into account (1)
bonafide intention of the landlord far from sole object only to get rid of tenant (2) age and
condition of the building and (3) the financial position of the landlord to demolish and
construct a new building according to the statutory requirement. [Viswanathan S vs. A.
Sarangapani] when the ingredients of the Section are satisfied, the Court can presume that
the landlords ' claim is bonafide. It is for the tenant to prove the contrary by letting in
rebuttal evidence. Puttalingam L. vs. L. Sivalingam.
186
CLC/AM/R/05
Mere change of staircase and taking it out of its place and putting it in the room
occupied by the tenant or changing the front view of the upstairs will not amount to
demolition Motilal vs Azeem. Alterations and conversions do not mean demolition. The
demolition is to obliterate substantially the old building and the construction must bring
into being a new building Thirupathi vs Maimoon Bibi and others.
The desire of the landlord to put the property to a more profitable use after
demolition and reconstruction is also a factor which may be taken into account in favour of
the landlord P.N Shenoy vs B.V. Shenoy. Where the landlord enters into a joint venture
with the owner of the adjacent property for the purpose of constructing a four storeyed
building in the entire area, consistent with the modern design which will increase the value
of the property, the claim of the landlord can certainly be entertained on the ground of
putting the property with a profitable and better use, even though the condition of the
building is not dilapidated P.Orr and Sons Limited vs M / s. Associated Publishers.
With respect to the question whether the demolition should be total, the answer is
given in A.A.Henry vs JVK Rao.
1. The demolition may be part of the building i.e. the entire ground floor, entire first
floor or the entire second floor.
2. There can be demolition work in the ground floor even when the first floor is left
undisturbed.
3. The demolition can be in a ground floor or in a portion of the first floor. It need
not be of the entire ground floor or the entire first floor.
4. In such a case the building after the fresh work is finished, would comprise partly
of the old building and partly of the new building.
5. The fresh work may be outside in the exterior or inside in the interior. If the fresh
work undertaken, though in a portion of the building and in the interior is such that the
completed work involves demolition and also substantial structural alterations so as to
change the identity and give a new look altogether, Section 14 (1) (b) would clearly apply
to such a case.
6. The words ‘rebuilding’ ‘reconstruction’ and ‘erecting a new building’ have the
same meaning.
187
CLC/AM/R/05
7. Erection of a new building may be by the use of brick and mortar or by steel or
even by wood work or may be by the use of all the materials. The crucial test is “Is it not
erecting a new building or reconstructing or remodeling”.
The scope of this clause is clearly pointed out in Neta Ram vs Jiwanlal. The landlord
has to satisfy the Controller about the genuineness of his claim and this should be
established by looking at all the surrounding circumstances such as the condition of the
building, its situation, the possibility of its being put to more profitable use after
reconstruction, the means of the landlord and so on.
Landlords's undertaking
Section 14 (2) prescribes a condition precedent to be satisfied before the Rent
Controller could pass an order directing the tenant to deliver possession of the building
under Section 14. These conditions are two in number, the one referable to the ground under
Section 14 (1) (a) and the other referable to the ground under Section 14 (1) (b). Alamelu
vs Vishalakshi Ammal.
(1) Undertaking under Section 14 (2) (a)
Under Section 14 (2) (a), it is obligating on the part the landlord to give an
undertaking to the effect that the building will be, on completion of the repairs, offered to
the tenant, who delivered the possession of the property in pursuance of the order under
sub - section 1 of Section 14 for his re occupation before the expiry of three months from
the date of recovery of the possession by him.
(2) Undertaking under Section 14 (2) (b)
This has been clearly explained in Alamelu vs Visalakshi Ammal as follows. There
are two limbs to the undertaking in Section 14 (2) (b). One is that the work of demolition
of any material portions of the building shall be substantially commenced by him not later
than one month from the date of recovery of possession of the entire building. This time
limit is unalterable. The second limb of the undertaking is that the demolition shall be
completed before the expiry of three months from the date the landlord recovers possession
of the entire building. The time limit of three months in the second limits can be extended
by the Rent Controller for reasons to be recorded in writing. Consequently, the undertaking
with reference to both these limits may be given before an order can be passed directing
the tenant to put the landlord in possession of the building ". The undertaking given by the
188
CLC/AM/R/05
landlord in the deposition is sufficient for satisfying the requirement of Section 14 (2) (b)
of the Act Thayammal vs K.Subramanian.
189
CLC/AM/R/05
The leading case with respect to this is Narayanan vs Appukutty. In this case it is
pointed out that an interference with the convenience would interfere with the proper
enjoyment of the demised premises and constitute an infringement under the Section.
Further that it must be shown that the landlord did so without just or sufficient cause.
The Section 17 (5) provides the payment of compensation to the other party if the
complaint is frivolous or vexatious.
Execution of orders, appeal and revision
Sections 18, 23 and 25 of the Tamil Nadu Buildings (Lease and Rent Control) Act,
1960 deal with the Execution, Appeal and Revision respectively. The Section 18 speaks
about Execution of orders by the Controller. Section 23 makes a provision for Appeal
against the order of the Controller. Section 25 provides the remedy of Revision to High
Court.
1. Execution
Section 18 deals with the Execution of orders by the Controller. It says: i) Every
order made by under Sections 10, 14, 15, 16 and 17 and every order passed on Appeal
under Section 23 or on Revision under Section 25 shall be executed by the Controller, as if
such order is an order of a Civil Court and for this purpose, the Controller shall have all the
powers of a Civil Court. ii) An order passed in execution under sub - section (1) shall not
be subject to any appeal or revision.
This Section empowers the Controller to have all the powers of a Civil Court in
executing the orders.
The Section was amended in the year 1973. After the amendment, the Rent
Controller has all the powers of the Civil Court in execution of the orders passed under the
Act. Previously it was provided that every order for eviction passed by the Rent Controller
or an Appellate Authority should be executed by the specified Court as if it were a decree
by that Court.
The Rent Controller has power of executing the orders passed under Sections 10,
14, 15, 16 and 17. Further he can execute every order passed in an appeal under Section 23
and in a Revision Petition under Section 25 against the orders of the Rent Control Court.
Sections 10, 14, 15 and 16 deal with eviction of tenants and Section 17 is relating to
interference with enjoyment of the amenities. Section 18 gives all the powers of Civil
190
CLC/AM/R/05
Procedure Code to the Rent Controller T.Sivasankaran vs H.K.N Kacharlal Sowcar. There
is no appeal or revision against the orders passed in execution proceedings.
Under the new provisions, the Rent Controller, executing it remains a Rent
Controller but the order shall be executed, as if it is a decree of Civil Court. Ramanujam
Naidu vs Panchanathan Mudaliar.
The scope of execution
The executing Court has no right to go into the question whether the finding reached
by the Rent Controller on the question whether the need of the landlord was bona fide or
not. Its duty is to execute the order of evictions as it stands. Shanmugham vs Satyanarayana
Prasad. A Court executing the decree cannot go behind the decree between the parties or
the legal representatives. It must take the decree according to its tenor and cannot entertain
any objection that the decree was incorrect in law or in facts unless it is set aside by an
appropriate proceeding or in Appeal or Revision. A decree even if erroneous is still binding
on parties Vasudev Rajubhai vs Abdul Rahim. If there is a devolution of the interest of the
landlord it is equally the duty of the executing Court to execute the order of eviction at the
instance of the successors. Shanmugam vs Satyanarayana Prasad.
In Alagappa Chettiyar vs Perumal Swami, the landlord filed an execution petition.
The executing Controller has virtually varied the order of execution and granted six
months’ time from the date of the order. It was held that this is wholly wrong and is without
jurisdiction. There is no provision for the Controller who execute an order of eviction to
stay the Execution Petition.
If subsequent to the orders of Eviction Petition, the premises has been sold to
purchaser at the revision stage and the purchasers are impleaded as Respondents along with
the original landlord, the purchasers are entitled to execute the right of eviction which
vested in the original landlords Thangaswamy Nadar vs Pappa & Others. When during the
eviction proceedings the landlord died and the daughters were brought on record, it was
held that the partition amongst them could not be the concern of the tenant at all and he
could not take advantage of the partition, denying the landlord the fruits of the order of
eviction Mohammed vs Saifuddin. When the execution petition filed, if the tenant had died,
all the heirs of the deceased must be brought on record. The Rent Controller has got the
power to order restitution, for an application for restitution is only an application for
191
CLC/AM/R/05
execution. The Rent Controller has jurisdiction to order re - delivery of the property to the
evicted tenant consequent on his setting aside the order of eviction under Section 18 of the
Act T.S.Pichaiya, Tuticorin vs Rent Controller, Tuticorin and another. Section 18 gives all
the powers of Civil Procedure Code to the Rent Controller including the power to order
restitution T.Sivasankaran vs H.K.N.Kacharlal Sowcar.
No Appeal or Revision against the order passed in the proceeding for execution of
the order of execution [Section 18 (2)]. The reason for providing this provision is explained
in [S. Mohamed vs State of Tamil Nadu represented by Secretary]. A landlord who is
urgently in need of his building can be kept at abeyance by an unreasonable tenant
preferring an appeal or revision against the order of execution and drag on the matter
endlessly. It is in order to prevent such a calamitous situation, the Legislature has advised
by and designedly enabled sub - section (2) and specifically provided that an order passed
in execution under sub - section (2) shall not be subject to any appeal or revision and
Section 18 (2) is not violative of Articles 14 or 19 of the Constitution.
2. Appeal
The Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 is a self-contained
one containing the provisions for appeal and revision and enabling an aggravated party to
challenge the correctness of the order passed by the authorities under the Act in the manner
provided thereunder and no more. Hameed vs.Kanniammal.
For the purpose of this Act, the Government may by general or special order
Notified in the Tamil Nadu Government Gazette confer on such Officers and Authorities
as they think fit, the powers of Appellate Authorities - Section 23.
Any person aggrieved by an order passed by the Controller may within 15 days
from the date of such order prefer an appeal in writing to the Appellate Authority having
jurisdiction. On such appeal being preferred, the Appellate Authority may order stay of
further proceedings in the matter pending decision on the appeal.
The Appellate Authority shall call for the records of the case from the Controller
and after giving the parties an opportunity of being heard and if necessary after making
such further inquiry as he thinks fit either personally or through the Controller, shall decide
the appeal. The decision of the Appellate Authority shall be final and shall not be liable to
be called in question in any Court of Law, except as provided in Section 25.
192
CLC/AM/R/05
193
CLC/AM/R/05
on which the order or proceeding to which the application relates, is communicated to the
applicant. The High Court has discretion to allow one more month for the filing of such
application. This section was amended in the year 1973. The main purpose of the
Amendment is to take away the revisional jurisdiction of the District Judges against the
order of the Appellate Authority.
The scope of Section 25
The scope of the proceedings under Section 25 of the Act has been repeatedly held
to be wider than that available to the Court under Section 115 CPC Venkataramanaswamy
lyer vs Abdul Wahab. The scope is wider and is not confined to the question of jurisdiction
only. This revisional jurisdiction is paternal and supervisory in its nature Subbier vs
W.P.Chetty. The Revisional Court ought not to enter into a discussion about the existence
of bona fides, as the power of interference of a Court exercising revisional jurisdiction is
limited and circumscribed. It can interfere only in a case where the order of the lower court
presents a material irregularity or want of jurisdiction or in a case where there was non -
exercise of jurisdiction or mal - exercise of jurisdiction.
It was held in Shaw Wallace & Co Ltd. vs. Govindas Purushothamadas & another,
that the High Court is entitled to satisfy itself as to the regularity of the proceeding of the
correctness, legality of propriety of any decision or order passed therein and if, on
examination, it appears to the High Court that any such decision or order should be
modified, annulled, reversed or remitted for reconsideration, it may pass such orders
accordingly.
As we have seen early, the power of revision given under this Act, are wider than
under Section 115 Civil Procedure Code. The words ' legality, regularity or proprietary of
the order ' are wide enough to cover both questions of law and fact and go far beyond the
revisional jurisdiction strictly so called.
Under Section 25 the power of the Revisional Court is only a power of
superintendence and it should not interfere with the findings of fact of the lower courts just
because it does not agree with the same. (Bank of Baroda, represented by its Chairman vs
Mahendra Dada and two others). A revision should not be an engine of oppression but
should be means of correcting judicial errors and promoting carriage of justice.
195
CLC/AM/R/05
Again it is pointed out in [Lakshmidas ved vs. Parag Mawani], that the expression
' revision ' conveys a much narrower jurisdiction than the expression ' appeal '. The power
conferred under Section 25 is essentially a power of superintendence. The High Court
should not interfere with the findings of fact merely because it does not agree with the
finding of the subordinate authority.
Let us now consider in what cases, the interference by Revisional Court is not
justified. When both the Courts concurrently held that the tenant has committed acts of
waste, then the High Court in Revision will not interfere with the concurrent findings unless
there is a taint of illegality or miscarriage of justice A.W.Dhuruva & Company vs
P.M.Abdul Rahim. Likewise the concurrent findings of fact about wilful default are not to
be disputed by the High Court under Revisional Jurisdiction. The Supreme Court in
[Lakshmi Narain vs Vidyut Cable and Rubber Factory] held that where there was neglect
on the part of the tenant to pay the rent is essentially a question of fact and the High Court
in exercising jurisdiction under Section 115 CPC was not competent to go into the question.
In the following cases, it was held that the High Court by its revisional jurisdiction
can interfere with the decisions of Appellate Authority (1) where the District Judge
exceeded the limits of his jurisdiction, (2) where there was failure of justice by reason of
wrong approach (3) where the lower Court refused to exercise its jurisdiction vested in it
(4) when the judge decided a matter without reference to the Section of the Act which is
applicable or ignoring the existing law in the subject (5) when the Court had acted illegally
(6) where the Court misconceived the principles to be applied and (7) where the finding
was perverse and not supported by evidence on record.
The revisional power of the High Court under this Section could be invoked at any
time and not necessarily after any final order. The High Court cannot while exercising
jurisdiction under Article 227 of the Constitution, interfere with the findings of facts
recorded by the subordinate Court or Tribunal. Revision Court, while acting under Section
25 should not act as if it was sitting on appeal appreciate evidence, weigh the same and by
that process come to a different conclusion and reverse a finding of fact arrived at by the
Appellate Court. Dorairaju vs Palaniappa Gounder The power of Revisional Court have
always been understood to be more restricted than the power of Appellate Court Sasivarna
Thevar vs Ponni. It is certainly lesser power than the power of an Appellate Court.
196
CLC/AM/R/05
In a revision petition the time taken for obtaining the certified copies of the
Appellate Authority's order must be excluded in calculating the period of limitation under
Section 25 (2) of the Act. Section 5 of the Limitation Act will not apply to the Revision
petition under the Act. But Section 5 of the Limitation Act fully applies to Section 23 of
the Act. Section 25 rules out Section 5 of the Limitation Act and expressly Legislates on
the very subject which is to be dealt with by Section 5 of the Limitation Act. The Revision
Court has no power of remand.
Other provisions, relating to controller In this Chapter let us now consider the power of
the Controller in appointing the Commissioner (Section 18 A) the rejection of any
application which was finally decided by him on merits, (Section 19), pronouncement of
order in open Court (Section 20) power to convert residential building into non - residential
building (Section 21). Controller's discretionary power of ordering cost of proceedings
(Section - 24) and Controller's power to issue summons (Section 28).
1. Appointment of commissioner:
The appointment of Commissioner is one of the powers of the Controller. Under
Section 18A, he can appoint a Commissioner in any proceeding before him. For example
in the case of conflicting reports filed by Engineers examined by the landlord and tenant
regarding the condition of the building, the Controller can appoint a Commissioner to find
out the real existing conditions of the building. It is discretionary power of Controller to
appoint a Commissioner, depending upon the various circumstances. If Controller refuses
to appoint a Commissioner on application by the landlord, no appeal will lie against his
order. He cannot appoint a Commissioner for the purpose of inspecting and submitting a
report regarding the determination of fair rent in an application under Section 4 of the Act.
Under this Act, the Controller alone has the power to appoint a Commissioner and
Appellate Authority or High Court are not empowered to appoint a Commissioner.
they have been finally decided in a former proceeding. In Srinivasan vs Arumugham, the
scope and applicability of the Section is broadly explained. Section 19 incorporates the
principle of Res judicata more or less on the same lines as in the Civil Procedure Code.
Two important requisites must be present for applying this Section. One is that there must
be identity of issues in the two proceedings and the other is that the former proceeding must
have been decided on the very issues which arise in the latter proceedings.
The object of this Section is to prevent frivolous applications on the same ground.
The words “finally decided " in Section 19 of the Act clearly implies that the prior
application should have been decided on merits. Where the application for eviction was
withdrawn with the leave to file a fresh application, it cannot be said that the petition is
finally decided ' so as to bar a fresh application for eviction. Where issues under clauses 10
(2) (ii) (a) and (b) (subletting and different user) are not the same but different, the case is
not hit by Section 19 or any principle of constructive res judicata Dr. N.R.Rao vs Premier
Auto Electrical Company.
Any finding given in the previous proceeding with regard to fair rent for the
premises would not be res judicata because the fixation remain the same for all the time
(Ethirajulu Naidu vs Hajee Abu Baker). Similarly where the disposal of the former
proceeding was solely on the issue of notice to quit and bona fide requirement was not gone
into, it was held there was no res judicata. Where the landlord after the dismissal of his
prior eviction obtained an order of exemption from the Government from Section 10 (4)
the finding in the prior proceedings has to be construed ab initio void and Section 19 is no
bar for the filing of another petition for eviction Govindarajulu vs Jayaraman. Even if one
of the issues in a prior application has not been finally decided, it will be open to the
petitioner to file a subsequent application on the ground in which there was no final
adjudication Sivasubramanian Chettiar vs Ramasami Iyer.
This doctrine of res judicata will apply so long as there is no change of
circumstances as far as Rent Control Acts are concerned.
3. Pronouncement of judgment:
Section 20 of the Act speaks of a Rule of Court, namely pronouncing of order in
open Court after notice to the parties on the day on which the case finally heard or on some
future day.
198
CLC/AM/R/05
4. Conversion of building:
A residential building can be converted into a non- residential building only with
the permission of the Controller. Section 21 provides this provision. This Section speaks
conversion of residential building into non - residential building only and not vice versa.
Section 21 applies only to the cases covering entire building and has no application as to
portions of the building. Hence, the landlord under Section 10 (3) (c) has freedom to adjust
his needs if he is occupying a portion of the building along with his tenant.
5. Costs:
Section 24 deals with payment of costs. The Controller has discretionary power to
order cost in the necessary cases. He will decide the quantum of amount to be paid as costs
and give all necessary directions in this regard.
6. Summons to witnesses:
Section 28 of the Act empowers the Controller to issue summons to any person in
cases where the examination of such witness is considered essential by the Controller for
the proper disposal of the case. The Section applies only to Controller and not to the
Appellate Authorities. The Rule 26 of the Tamil Nadu Building (Lease and Rent Control)
Rule 1974 elaborately describes the procedure. The summons to witnesses may be sent,
directing them to give evidence or to produce documents in their custody.
Sub - tenants
Section 26 declares that any order for eviction of tenant shall be binding on all sub
- tenants who were made parties in the application. Section 2 (8) of the Act does not include
a person placed in the occupation of the building by its tenant. As such, the sub - tenant has
not been given any protection under the Act and it is not concerned with the relationship
between the tenants and sub tenants.
It is settled law that a decree in ejectment passed against a tenant at the instance of
the landlord is not only binding on the tenant but also on his sub tenant provided they have
no right independent of the right of the tenant in the demised premises Parthasarathy vs
Chitapillai. The sub - tenant who is in possession is a tenant only of his lessor and the sub
tenant will have neither a privity of contract nor privity of estate so far as superior lessor
(in this case the landlord) is concerned.
199
CLC/AM/R/05
The later part of Section 26 makes it clear that the persons who became sub - tenants
after the date of the application for eviction shall be bound by the order of eviction whether
made parties or not. If the sub - tenants are made parties, the order of eviction would be
binding on them on its own force. The Act does not say that a sub - tenant is a necessary
party to a proceeding for eviction. The order of eviction is binding on the sub - tenant and
he cannot claim any higher rights than the tenant. It is settled law that a decree for
possession obtained against a tenant can be straightaway be executed as against the property
in the hands of the sub - tenant even though the sub - tenant was not a party to the
proceeding in which eviction was passed. Ramachandra Sastri vs Mohammed Hussein.
Legal representatives
Section 27 of the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960 deals
with the proceedings by or against legal representatives. In the case of the death of the
landlord or tenant, their legal representatives are entitled to be impleaded as parties to the
proceedings and continue the proceedings already initiated.
Rule 25 of the Tamil Nadu Buildings (Lease and Rent Control) Rules, 1974 says,
that every application for making the legal representative or representatives of a deceased
person, party to a proceeding under the Act shall be preferred within one month from the
date of death of the person concerned or the date of having knowledge of the death of the
person concerned. An application to implead legal representatives of the deceased person
filed beyond 30 days is barred by limitation.
This Act does not contain any definition of the term legal representative. However
with respect to the ' tenant ' under Section 2 (8) of the Act, the term tenant includes apart
from surviving spouse, son or daughter of the deceased. Tenant, other category of persons
are also contemplated as legal representatives. A person claiming to be a tenant must satisfy
two conditions; (1) that he or she is the surviving spouse or any son or daughter or the legal
representative of the deceased tenant; (2) the above said such person should have been
living, with the tenant in the building as a member of the tenants family upto the death of
the tenant. In the case of non - residential building he or she should be in continuous
association with the tenant and continues to carry on such business thereafter
M.P.Ramanujammal vs C.Parankujam minor represented by father and guardian. So it is
clear that all the legal representatives will not be tenants but only such of them as had been
200
CLC/AM/R/05
in continuous association with the tenant for the purpose of carrying on the business of the
tenant.
Section 27 of the Act providing for the continuance of the proceedings under the
Act, by or against the legal representatives is general in nature and has application to cases
where the cause of action survives even after the death of original party to the proceedings
(Salima Bi vs Malika Begum).
In a petition under Section 14 (1) (b) the landlady died pending its disposal. It was
held that the legal representatives can come on record. Rathinam vs Syed Beevi (deceased)
and others. Similarly, on the death of the landlord during the pendency of the proceedings
the executors under the will of the landlord can represent the landlord and continue the
proceedings.
The legal heirs are bound by the undertaking given by the deceased and the claim
that it is personal covenant by the landlord is not acceptable (Rathinam vs Syed Beevi and
others). If the law permitted the eviction of the tenant for the requirement of the landlord '
for occupation as a residence for himself and members of his family, ' then the requirement
was both of the landlord and the members of the family. On his death the right to sue did
survive to the members of the family of the deceased landlord Shantilal Thakordas vs.C.M.
Telewala.
If the original tenant had died before the contractual tenancy had terminated, then
the legal representatives would have inherited the tenancy and in that case the rent would
become payable by them Chatterjee vs Sri Kishan. Landlord filed an application for
eviction on the ground of sub - letting. Eviction was ordered and the landlord filed
execution petition. The Chief tenant died. The sub - tenants raised an objection regarding
executability of the decree against them, contending that in the absence of legal
representatives of the main tenant being brought on record, eviction order cannot be
executed. The High Court rejected this contention holding that the provisions of the Act 18
of 1960 though does not contain any definition of the term, legal representative, still the
term tenant indicates that apart from surviving spouse, the son or daughter of the deceased
tenant, other categories of persons are also contemplated as legal representatives.
This interpretation is not without significance since the word tenant refers not only
to heritable relationship but also to inner considerations.
201
CLC/AM/R/05
The Latin maxim actio personalis moritur cum persona has no application When
the landlord obtained an order of eviction under Section 10 (3) (a) (iii) such a right cannot
be characterised as a personal right which comes to an end with the death of the landlord.
It is an incorporal right annexed to the estate of the deceased and it can be taken advantage
by the legal representative (Gafoor vs Lakshmanan Mudaliar). Where a landlady after
obtaining an order of exemption under Section 29 of the Act on the ground that the premises
was required for her married daughter and grandchildren, filed a suit for recovery of
possession and died during the suit, it was contended that the exemption granted was
personal and the legal representatives could not come on record. Apart from there being
nothing to suggest that the exemption was personal to the grantee the operative portion
would clearly show that the stress was to house the married daughter and grand - children.
It was held that it was not personal to the grantee. (Champalal Sowcar vs Rajaloo)
Section 27 of the Act will not apply to cases where the relief sought for in the
eviction petition is personal to the deceased as in a case where eviction is sought on the
ground of bona fide requirement of the premises for his own occupation (Salima Bi vs
Malika Begum). Where the landlady for whose personal benefit the order of eviction was
made is dead, it was held that a decree in favour of the widow (landlady) to reside in the
house is personal and would become unenforceable on her death (Mohammed Ibrahim vs
Rahiman Khan).
Exemptions of buildings
Section 29 of the Tamil Nadu Buildings (Lease and Rent Control) Act 1960,
provides exemption of any building or class of buildings from all or any of the provisions
of this Act.
Under this Section, the Government has discretionary powers to grant exemption to
any building or class of buildings. The Section does not specifically mention what are
thecategory of building or class of buildings exempted under this section. The Government
of Tamil Nadu issued G.O.Ms.No.2000, Home, 16th August 1976 and thereby exempted
all the buildings owned by the Hindu, Christian and Muslim religious public trusts and
202
CLC/AM/R/05
public charitable trusts from all the provisions of the said Act ". This G. O. has been issued
by the Government in exercise of the powers conferred by Section 29 of the Act. It further
exempts " the buildings owned by all Government undertakings including Government
companies registered under the Indian Companies Act, 1956 (Central Act of 1956) and by
all the Co - operative Societies from all the provisions of the said Act. "
The Section is applicable not merely to institutions like hospitals or schools but may
be applied to other cases also where there is no question of any unreasonable eviction of
the tenant or where the prevention of eviction itself may be unreasonable (Irani vs State of
Madras). It is clear from this that the exemption, is given under this Section not only to
religious and charitable institution but also to private individuals in proper and right cases.
However such a grant should not be discriminatory so as to offend Article 14 of the
Constitution, and it must be on the grounds which are relevant to the policy and purpose of
the Act and not otherwise malafide. In such cases it is desirable that the grounds on which
exemption was granted appear ex facie in the order of the Government Mrs.Andrews vs
Abirami Ammal.
The scope and object of exemption
The Section is an enabling provision intended to meet a contingency when the
remedy provided by the Act would be insufficient or inadequate in regard to a particular
case. The scope and objects are well explained in the following cases. Irani vs State of
Madras, Globe Theatres vs State of Madras, Mrs. Andrews vs Abirami Ammal and Gani
and Sons vs State of Madras. The Act of the Government in exempting the building from
the operation of the Act is not a judicial act (Dr. Nambiar vs State of Madras- 1953 (1) MLJ
49). It is purely executive in character Section 29 has not empowered the Government to
pass any G.O. giving any retrospective effect.
The object of the Section 29 is well explained in [Muthusamy Naidu vs. State of
Tamilnadu] as follows: "It is clear that where a statutory provision could either cause great
hardship to a landlord or the subject of abuse by the tenant himself, the State Government
has power to exempt such hard cases under Section 29. " The remedy of exemption under
Section 29 of the Act is not a substitute for remedies available to a landlord for eviction
under the Act itself. On the other hand, if the remedy under the Act is not available to him,
there will be a justification for according exemption under Section 29 of the Act if a case
203
CLC/AM/R/05
therefor is made out. P.C.Cherian, President Vidyaniketan Academic Cum Arts School vs
The Special Commissioner and Secretary to Government, Home and twelve others. The
powers cannot be invoked to nullify the orders overnment feels of the regular tribunals
under the Act merely because the that they were wrong. Or, the Government cannot exempt
a building on the very same reason on which the Appellate Authority had rejected the
petition when the Tribunals had given a finding, the Government should not sit in judgment
and grant exemption (Kandasamy Chettiar vs Government of Tamil Nadu). If a landlord
had a remedy under the Act, it could not invoke the powers under Section 29. (Devassy vs
State of Madras).
Since the power is special one, it should be used sparingly and with discretion by
the State Government. Mrs Andrews vs Abirami Ammal. It is the duty of the Government
to take into consideration all the relevant circumstances of a particular case or class of cases
in order to determine if the protection of the Act given to the tenant or tenants concerned
should be withdrawn Irani vs State of Madras.
It should not be forgotten that the provisions by Rent Control Act place drastic
restrictions on the fundamental right of the citizen to hold and enjoy his property. But these
restrictions have been constitutionally upheld on the ground of public interest. When a
citizen is sought to be deprived of his right for the purpose, to occupy his own building, all
considerations relevan including the question whether the requirement of the owner of the
building to occupy himself is genuine or bona fide should be taken into account.
Individual case of exemption under the Section could be subject of judicial review
under Article 226 of the Constitution of India Mrs. Andrews vs Abirami Ammal. So in
these circumstances the Court will find out whether (a) it was discriminatory so as to offend
Article 14 of the Constitution; and (b) the order was made on the grounds which were
germane or relevant to the policy and purpose of the Act and; (c) it was not otherwise
malafide.
Section 29 provides exemptions to the landlord from the provisions of this Act. The
result of an exemption in any particular case is that the landlord is allowed to enjoy his
rights without the restrictions imposed by the Act i.e., he is permitted to be governed by
the ordinary law of the land.
204
CLC/AM/R/05
205
CLC/AM/R/05
The sub - clause (1) of Section 30 postpones the application and the enforcement of
the Act to the newly constructed buildings for a period of 5 years. Only after the lapse of 5
years this Act would apply. The Section implies that the construction must have been
completed after the date of commencement of the Act and that the construction must be
Notified to the local authority concerned.
The sub - clause (ii) of Section 30 exempts a residential building whose rental value
exceeds Rs.400. With respect to non - residential building no exemption has been given.
The Supreme Court in [Rattan Arya vs State of Tamil Nadu] has struck down Section 30
(ii) as unconstitutional by observing "By one stroke Section 30 (ii) denies the benefits
conferred generally on all tenants to tenants of residential buildings getting a rent in excess
of rupees four hundred per month ". Where the premises let out was both for residential
and non - residential purposes for a rent above four hundred, it was held that exemption
claimed in Section 30 (ii), will not be attracted. It will apply only to residential building.
Tikkamchand Jain vs Narasimhachari.
The sub - section (iii) of Section 30 deals with composite lease. It is a composite of
building as well as business assets. There are three illustration given under this sub -
section.
Illustration (1): Where a dal mill as such is the subject matter of lease and where the
intention of the tenant is to run the business with the machinery in the building in which
such dal mill is housed, the Act does not apply to such buildings.
Illustration (2): Where lease of land and building together with fixtures, fittings,
cinematograph talkie equipments, machinery and other articles, the Act does not apply to
such building.
Illustration (3): Where a hotel building together with the furniture, machinery and
other articles necessary for the running of hotel business is leased and the tenant is to run
the hotel business in such building, the Act does not apply to such building.
Section 30 (iii) does not say that the lease must be of a business or industrial
undertaking as a going concern. Nor does it require that the composite lease must be such
as that the business or industry leased along with the building must be in a ready and
running condition on the date of lease (Bombay Burmah Trading Corporation vs
Narayanasamy Pillai). A lease of a building cum industrial or business equipment in " as is
206
CLC/AM/R/05
or where is " condition might still qualify for exemption, even though the equipment will
need something more to operate. The lease of a rice mill consisting of the premises and the
rice milling machinery belonging to the landlord and erected in the building is exempted
from the provisions of the Act (P.N. Venkatesa Chettiar vs Annamalai Industrial
Corporation).
THE TAMIL NADU APARTMENT OWNERSHIP ACT, 1994
An Act to provide for the ownership of an individual apartment in a building and
to make such apartment heritable and transferable immovable property.
WHEREAS with a view to securing that the ownership and control of the material
resources of the community are so distributed as to subserve the common good, it is
expedient to provide for the ownership of an individual apartment in a building and of an
undivided interest in the common areas and facilities appurtenant to such apartment, and to
make such apartment and interest heritable and transferable immovable property and to
provide for matters connected therewith or incidental thereto;
BE it enacted by the Legislative Assembly of the State of Tamil Nadu in the Forty-
fifth year of the Republic of India as follows:-
Preliminary
1. Short title, extent and commencement-
(1) This Act may be called the Tamil Nadu Apartment Ownership Act, 1994.
(2) It extends to the whole of the State of Tamil Nadu.
(3) It shall come into force on such date as the Government may, by notification,
appoint and different dates may be appointed for different areas.
2. Application of this Act -
This Act shall apply to every apartment in a building constructed whether before
or after the date of commencement of this Act:
Provided that such building shall contain five or more apartments or three or more floors
and construction of such building has been made in accordance with a planning permit
and also a building plan duly sanctioned by the appropriate authority concerned under the
relevant law for the time being in force.
3. Definition-
In this Act, unless the context otherwise requires.-
207
CLC/AM/R/05
(a) “apartment” means a part of property intended for any type of independent use
including one or more floors or enclosed spaces located in one or more floors (or part or
parts thereof) in a building, intended to be used for residence, office, practice of any
profession or for carrying on any occupation, trade or business or for other type of
independent use and with a direct exit to a public street, road, or highway or to a common
area leading to such street, road or highway.
Explanation: For the purpose of this clause, an apartment shall be deemed to be
intended for independent use notwithstanding that provisions for sanitary, washing, bathing
or other conveniences have been made as common for two or more apartments;
(b) “apartment number” means the number, letter, or combination thereof
designating the apartment in the Deed of the Apartment:
(c) “apartment owner” means the person or persons owning an apartment and an
undivided interest in the common areas and facilities or the limited common areas and
facilities in the percentage specified in the Deed of Apartment and includes an outright
purchaser or a hire purchase allottee of such apartment and undivided interest;
(d) “Association of Apartments owners’ means all of the apartments owners acting
as a group in accordance with the bye-laws;
(e) “building” means a building containing five or more apartments or three or more
floors and comprising a part of a property;
(f) “bye-laws” means the bye-laws for the time being in force of the Society or
Association of Apartment owners and includes an amendment as such bye-laws;
(g) “committee” means the board or the governing body of the society or
Association of Apartment owners to which the management of its affairs is entrusted:
(h) “common areas and facilities” unless otherwise provided in the Deed of
Apartment, means-
(i) the land on which the building is located;
(2) the foundations, columns, girders, beams, supports, main walls, roofs,
halls, corridors, lobbies, stairs, stairways, terrace, compound walls, fire escapes,
wells, and sumps and entrances and exits of building;
(3) the basements, cellars, yards, gardens, parking areas and storage spaces;
208
CLC/AM/R/05
(4) the premises for lodging of caretakers or persons employed for the
maintenance of the property;
(5) Water supply, sewerage and drainage connections and the installations
of central services such as power, light, gas, hot and cold water, heating,
refrigeration, air-conditioning and incinerating;
(6) the elevators, tanks, pumps, motors, fans, compressors, ducts and in
general all apparatus and installations existing for the common use;
(7) automatic fire detecting and alarm facilities necessary to warn the
occupants of the property of the existence of the fire;
(8) such other community and commercial facilities as may be prescribed;
and
(9) all other parts of the property necessary or convenient to its existence,
maintenance and safety, or normally in common use;
(i) “common expenses” means,-
(1) all sums lawfully assessed against the apartment owners by the society or the
Association of Apartment owners;
(2) expenses of administration, maintenance, repair or replacement of the common
areas and facilities or the limited common areas and facilities;
(3) all legal expenses as may be incurred by the society or the Association of Apartment
owners for the enforcement of lawful claims of the Apartment owners;
(4) expenses resolved as common expenses by the society or the Association of
Apartment owners; and
(5) expenses declared as common expenses by the provisions of this Act, or by the bye-
laws;
(j) “common profits” means the balance of all income, rents and revenues from the
common areas and facilities or the limited common areas and facilities remaining
after deduction of the common expenses;
(k) “competent authority” means-
(1) in relation to the society registered under the Tamil Nadu Co-operative Societies
Act, 1983 (Tamil Nadu Act 30 of 1983), the Regional Deputy Registrar of Co-
operative Societies (Housing) having jurisdiction over the area; or
209
CLC/AM/R/05
(2) in relation to the society registered under the Tamil Nadu Societies Registration
Act, 1975 (Tamil Nadu Act 27 of 1975), the Registrar as defined in clause (i) of Section 2
of that Act;
(3) in relation to the Association of Apartment owners- (a) the Regional Deputy
Registrar of Co-operative Societies (Housing) having jurisdiction over the area; or
(b) the Registrar as defined in clause (i) of Section 2 of the Tamil Nadu Societies
Registration Ac, 1975 (Tamil Nadu Act 27 of 1975), having jurisdiction over the area.
with whom the bye-laws of the Association of Apartment owners have been filed under
this Act;
(l) “date of the commencement of the Act” in relation to any area means the date
appointed by the notification issued under sub-section (3) of Section 1 in relation to
such area;
(m) “Deed of Apartment” means a deed of apartment executed in pursuance of
Section 5;
(n) “Government” means the State Government;
(o) “limited common areas and facilities” means those common areas and facilities
designated in the Deed of Apartment as reserved for certain apartment or apartments
to the exclusion of the other apartments;
(p) “person” includes an individual, an undivided Hindu family, a firm, a company
or an association or a body of individuals whether incorporated or not;
(q) “property” means the land, the buildings, all improvements, and structures
thereon, and all easements, rights and appurtenances belonging thereto;
(r) “Society” means – (i) a society registered under the Tamil Nadu Co-operative
Societies Act, 1983 (Tamil Nadu Act 30 of 1983); or
(ii) a society registered under the Tamil Nadu Co-operative Societies Registration
Act, 1975 (Tamil Nadu Act 27 of 1975).
Ownership, heritability and transferability of apartments
4. Apartment to be heritable and transferable – Each apartment together with the
percentage of undivided interest in the common areas and facilities of such apartment shall,
for all purposes, constitute heritable and transferable immovable property within he
meaning of any law for the time being in force, and accordingly, an apartment owner may
210
CLC/AM/R/05
transfer his apartment and the percentage of undivided interest in the common areas and
facilities of such apartment by way of sale, mortgage, lease, gift, exchange or in any other
manner whatsoever in the same manner, to the same extent and subject to the same rights,
privileges, obligations, liabilities, legal proceedings, remedies and to penalty, forfeiture and
punishment as any other immovable property or make a bequeath of the same under the
laws applicable to the transfer and succession of immovable property.
5. Ownership of apartments – Each apartment owner shall be entitled to the exclusive
ownership and possession of his apartment in accordance with the Deed of Apartment
executed and registered in accordance with the provisions of the Act.
6. Common areas and facilities –
(1) Each apartment owner shall be entitled to an undivided interest in the common
areas and facilities in the percentage specified in the Deed of Apartment and the limited
common areas and facilities. Such percentage shall be computed by taking as the basis the
extent of the plinth area available in the apartment in relation to the total extent of the plinth
area available in the building.
(2) The parentage of the undivided interest of each apartment owner in the common
areas and facilities, and in the limited common areas and facilities, if any, as expressed in
the Deed of Apartment shall have a permanent character, and shot be altered without the
consent of all apartment owners. The percentage of the undivided interest in such common
areas and facilities and the limited common areas and facilities shall not be separated from
the apartment to which it appertains, and shall be deemed to be conveyed or encumbered
with the apartment whether or not such interest is expressly mentioned in the conveyance
or other instrument.
(3) The common areas and facilities and the limited common areas and facilities
shall remain undivided and no apartment owner or any other person shall bring any action
for partition or division of any part thereof and any covenant to the contrary shall be null
and void.
(4) Each apartment owner may use the common areas and facilities and the limited
common areas and facilities in accordance with the purpose for which they are intended
without hindering or encroaching upon the lawful rights of the other apartment owners.
211
CLC/AM/R/05
(5) The necessary work of maintenance, repairs and replacement of the common
areas and facilities and the limited common areas and facilities and the making of any
additions or improvements thereto shall be carried out only in accordance with the
provisions of this Act and the bye-laws.
7. Compliance with covenants, bye-laws and administrative provisions –
(1) Every apartment owner shall comply strictly with the bye-laws and with the
covenants, conditions and restrictions set forth in the Deed of Apartment in relation to his
apartment.
(2) Where any apartment owner fails to comply with any of the bye-laws or
covenants, conditions and restrictions referred to in the bye-laws or covenants, conditions
and restrictions referred to in sub-section (1) such failure shall be a ground for an action
against such apartment owner to recover sums due, for damages or injunctive relief or both
maintainable by the society or the Association of Apartment owners or, in a proper case,
by the aggrieved apartment owner.
8. Certain works prohibited –
No apartment owner shall do any work or put the apartment to any other use which
would jeopardise the soundness or safety of the property, reduce the value thereof or impair
any easement or hereditament nor shall any apartment owner add any material structure or
excavate any additional basement or cellar without previously obtaining the unanimous
consent of all the other apartment owners.
9. Changes and encumbrances against apartments, extinguishment of charge and removal
from encumbrances and effect of part payment
(1) Subsequent to the execution and registration of the Deed of Apartment no charge
or encumbrance of any nature shall be created or be effective against the property and any
charge or encumbrance may be created only against each apartment and the percentage of
undivided interest in the common areas and facilities and the limited common areas and
facilities of such apartment in the same manner and under the same conditions in every
respect as charge or encumbrance may be created upon or against upon or against any other
separate parcel of property subject to individual ownership:
Provided that if any charge or encumbrance has been created against such apartment
and the percentage of undivided interest in the common areas and facilities and the limited
212
CLC/AM/R/05
common areas and facilities of such apartment no apartment and no such percentage of
undivided interest shall be partitioned or sub-divided:
Provided further that any labour performed in or materials furnished to an apartment
by any apartment owner or his agent or his agent or his contractor or sub- contract shall not
create any charge or encumbrance under the provisions of the Transfer of Property Act,
1882 (Central Act IV of 1882) against any other apartment owner unless the written consent
of the other apartment owner is obtained for performance of such labour or furnishing of
material.
Such consent shall however, be deemed to have been obtained in the following
cases namely:-
(i) Where any emergency repairs are carried out to an apartment and where such
emergency repairs are absolutely necessary for the safety or maintenance of the building;
(ii) where the performance of labour or furnishing of material is in respect of the
common areas and facilities or the limited common areas and facilities and duly authroized
by the society, its Secretary or the Committee or the Association of Apartment owners in
accordance with the provisions of this Act or the bye-laws.
(2) In the event of any charge or encumbrance against five or more apartments
becoming effective, the apartment owners may individually free their respective apartments
and the percentage of undivided interest in the common areas and facilities and the limited
common areas and facilities of such apartments from such charge or encumbrance by
payment of the fractional or proportional amounts attributable to each of the apartments
affected. Such individual payment shall be computed with reference to the percentage of
the undivided interest in the common areas and facilities and the limited common areas and
facilities, specified in the Deed of Apartment. Upon such payment, the apartment and the
percentage of undivided interest in the common areas and the facilities and the limited
common areas and facilities shall be free and clear of the charge or
encumbrance:
Provided that such part payment shall not prevent the person having any charge or
encumbrance from enforcing his rights against the other apartment and the percentage of
undivided interest in the common areas and facilities and the limited common areas and
facilities thereof.
213
CLC/AM/R/05
Act, 1908 (Central Act XVI of 1908) and for purposes of the said Act, the said documents
shall be deemed to be documents of which registration is compulsory.
(2) The Sub-Registrar shall register the Deed of Apartment along with the Floor
Plan of the building in the Register Books kept under Section 51 of the Registration Act,
1908 (Central Act XVI of 1908) and shall also enter particulars in the Indices made under
Section 55 of the said Act.
(3) Whenever any endorsement on a Deed of Apartment is registered the Sub-
Registrar concerned shall forward a certified copy thereof to the competent authority to
enable that authority to make necessary entries in the copy of the Deed of Apartment filed
with it under sub/section (2) of section 10.
(4) Any person acquiring any apartment or any apartment owner shall be deemed
to have notice of the contents of the Deed of Apartment and the endorsement, if any, thereon
as from the date of its registration under this section.
(5) Except as provided in this section the provisions of the Registration Act, 1908
(Central Act XVI of 1908) shall mutatis mutandis apply to the registration of such Deed of
Apartment and the words and expressions used in this section but not defined in this Act
shall have the meanings assigned to them in the Registration Act, 1908 (Central Act XVI
of 1908).
Explanation I – For the purpose of this section, Floor Plan of the building means the plan
of the building showing the layout, location, name, if any, of the building, the total number
of apartments, dimensions of the apartments and their respective apartment duly verified
and certified by an Engineer of the Tamil Nadu State Housing Board in the case of building
constructed by the Tamil Nadu State Housing Board and in the case of building constructed
by others by any other Engineer, as an accurate copy of the plan of the building as approved
by, and filed with, the local authority concerned.
Explanation II –
An Engineer shall mean any person holding a Diploma of a Degree in Civil Engineering or
Architecture or a licensed surveyor.
Society or association of apartment owners, its bye-laws and functions
12. Society or Association of Apartment Owner-
As soon as the Deeds of Apartments are executed and registered under Sections 5
215
CLC/AM/R/05
and 11 but not later than three months from the date of such registration, the apartment
owners shall form a society either registered under the Tamil Nadu Co-operative Societies
Act, 1983 (Tamil Nadu Act 30 of 1983); or under the Tamil Nadu Societies Registration
Act 1975 (Tamil Nadu Act 27 of 1975), or an Association of Apartment owners, with the
object to maintain all common areas and facilities and the limited common areas and
facilities, to provide such amenities as may be necessary in the common interest of all the
apartment owners and to do such other things as may be considered incidental or
conductive to the attainment of the objects specified in the bye- laws.
13. Bye-laws –
(1) The administration of every property shall be governed by the bye-laws, a true
copy of which shall be filed with the competent authority. No amendment of the bye-laws
shall be valid unless a copy thereof is duly filed with the competent authority. Amendment
of the bye-laws shall take effect from the date, if any, specified in the amendment. Where
no such date is specified the amendment shall take effect from the date on which a copy of
it is filed with the competent authority.
(2) The administration of every property shall be governed by the bye-laws, a true
copy of which shall be filed with the competent authority. No amendment of the bye-laws
shall be valid unless a copy thereof is duly filed with the competent authority.
Amendment of the bye-laws shall take effect from the date, if any, specified in the
amendment. Where no such date is specified the amendment shall take effect from the date
on which a copy of it is filed with the competent authority.
(2) The bye-laws shall provide for the following matters, namely:-
(a) the percentage of the votes which shall constitute the quorum;
(b) the maintenance, repairs and replacement of the common areas and facilities and
the limited common areas and facilities and payment therefor;
(c) the keeping and maintenance of accounts and books by the society or the
Association of Apartment owners;
(d) the convening of general meeting of the society or the Association of Apartment
owners for the procedure at such meetings including the sending of notice of such meetings,
maintenance of minutes books and the powers to be exercised by such meeting;
216
CLC/AM/R/05
(e) the manner of collecting from the apartment owners their share of the common
expenses;
(f) the appointment and removal of persons employed for the maintenance, repairs
and replacement of the common areas and facilities and the limited common areas and
facilities;
(g) the method of adopting and of amending administrative rules and regulations
governing the details of the operation and use of the common areas and facilities and the
limited common areas and facilities;
(h) the restrictions on the requirements respecting he use and maintenance of the
apartments and the use of the common areas and facilities and the limited common areas
and facilities not set forth in the Deed of Apartment, as are designed to prevent
unreasonable interference with the use of their respective apartments and of the common
areas and facilities and the limited common areas and facilities by the several apartment
owners;
(i) the percentage of the votes required to amend the bye-laws;
(j) the terms and conditions subject to which transfer of any apartment and
percentage of undivided interest in the common areas and facilities and the limited common
areas and facilities of such apartments may be effected;
(k) the leasing out part of the building or land, if any, for commercial purpose;
(l) such other matters as may be prescribed.
14. Co-operative Societies Act and the Societies Registration Act to apply with
modification –
(1) Notwithstanding anything contained in the Tamil Nadu Co-operative Societies
Act, 1983 (Tamil Nadu Act 30 of 19830 or the Tamil Nadu Societies Registration Act,
1975 (Tamil Nadu Act 27 of 1975) the minimum number of members required for
forming a society for the purpose of this act shall be five.
217