Civil: Cancelation of Sale deed – Purchaser cannot be condemned without providing him full opportunity

The appellant was unsuccessful before the Gujarat High Court in his challenge to the orders passed by the authorities holding that the sale transaction in his favour was in breach of the provisions of the Gujarat Prevention of Fragmentation and Consolidation of Holdings Act, 1947  (Para 2)

Respondent Nos. 6 to 9 then filed Case No. PO/Fragmentation/SR/02/2010 in March, 2010, before the Prant Officer, Gandhinagar, challenging the sale transaction of the year 2007 in favour of the appellant, alleging that it was in violation of the provisions of the Act of 1947. By order dated 17.05.2012, the Prant Officer held the sale transaction to be illegal on the ground that it was in breach of Section 31(1) (b) of the Act of 1947. In consequence, he ordered cancellation of the appellant’s sale deed and payment of a fine of Rs. 250/- by him. He also directed initiation of proceedings to remove the appellant from the land. (Para 6)

The findings recorded by the High Court that there was no partition and that the land was never demarcated, whereby a portion thereof could have been sold to the appellant, do not take into account the fact that Respondent Nos. 6 to 9 themselves executed a sale agreement in the year 2014 and the contents thereof support the appellant’s claim that Respondent Nos. 10 to 19 were entitled to sell him their half-share. The issue as to whether the land sold to the appellant would constitute a ‘fragment’ in terms of Section 31(1)(b) read with Section 2(4) of the Act of 1947 and more so, in the context of whether the said land is irrigated land or dry land, has also not been examined extensively or in depth. (Para 15)

Reduction of the sale consideration in the appellant’s documents from 17,51,000/- to 1,07,000/- would have to be examined Rs.  Rs.  in the light of the appellant’s claim that his vendors wanted him to show a reduced sale consideration in the sale deed for the purpose of registration charges. The issue as to whether Respondent Nos. 6 to 9 were entitled to reopen the sale transaction of 2007 in the year 2010, despite the appellant’s claim that Prabhudasbhai knew of and approved the sale transaction, would also have to be examined as it is claimed by Respondent Nos. 6 to 9 that the sale agreement in which Prabhudasbhai was shown as a confirming party never saw the light of day earlier. All these aspects would require verification and adjudication upon evaluation of evidence. The parties would be in a position to adduce proper evidence in support of their respective cases only if they are given opportunity to do so before the original authority, viz., the Prant Officer, Gandhinagar. (Para 16)

Further, having purchased the land in the year 2007 after parting with valuable consideration, the appellant cannot be condemned without providing him a full opportunity to put forth his case with supporting evidence. Accordingly, we allow this appeal and set aside the orders passed by the Gujarat High Court as well as the orders passed by the authorities and remand the matter for consideration afresh on facts and law. (Para 17)

SUPREME COURT OF INDIA

2023 STPL(Web) 463 SC

[2023 INSC 1052]

KANAIYALAL MAFATLAL PATEL VS. STATE OF GUJARAT AND OTHERS

Civil Appeal No. 7963 of 2023 (@ Special Leave Petition (C) No. 6536 of 2022)-Decided on 6-12-2023

https://stpllaw.in/wp-content/uploads/2024/01/2023-STPLWeb-463-SC.pdf

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Breach of peace: It must disturb public order, not just personal peace

Code of Criminal Procedure, 1973 – Sections 145, 146- Breach of peace – Emergency situation – Possession dispute – Civil litigation – Non-application of mind – Proceeding under Section 145 – Attachment under Section 146 – The application under Section 482 of the Code of Criminal Procedure, 1973 challenges the orders by the Executive Magistrate, concerning a dispute under Section 145 of the Code of Criminal Procedure, 1973 and subsequent attachment under Section 146(1) of the same.

The petitioner contests the legality of both orders, asserting that the initiation of the proceeding and the attachment were illegal and an abuse of process. It’s argued that the jurisdiction under Section 145 can only be invoked if there’s a likelihood of a breach of peace, which wasn’t sufficiently demonstrated in this case.

The petitioner highlights that the attachment order was passed ex-parte without affording them an opportunity to respond, which is contrary to the exceptional circumstances required for such an order. Reference is made to legal precedent discouraging parallel criminal proceedings when a civil litigation is pending regarding property possession, emphasizing the binding nature of civil court decrees.

The respondents counter by claiming entitlement to the land based on a partition deed and subsequent court judgments. They argue that emergency circumstances justified the attachment due to the petitioner’s attempt to construct on disputed land.

Legal precedents are cited to emphasize that the existence of an emergency, not just the use of the term “emergency,” warrants attachment under Section 146.

The judgment critically examines the orders and the circumstances leading to them. It observes discrepancies between the assertions made in the complaint and police report, highlighting the absence of clear grounds for apprehension of breach of peace.The judgment reiterates the requirement for a dispute likely to cause a breach of peace under Section 145, emphasizing that it must disturb public order, not just personal peace.

It concludes that the impugned orders suffer from non-application of mind and jurisdictional error, resulting in injustice to the petitioner. Consequently, both orders are quashed, and the petition is allowed. Important Paragraph Numbers of Judgment: (Para 13, 19, 30, 31)

GAUHATI HIGH COURT

2023 STPL(Web) 183 Gauhati

[2024 STPL 1651 Gauhati]

Md. Osman Ali Saikia And Anr. Vs. Chand Mahamod Saikia And 2 Ors.

Crl.Pet. 239 of 2021-Decided on 8-11-2023

https://stpllaw.in/wp-content/uploads/2024/05/2023-STPLWeb-183-Gauhati.pdf

 

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Electricity: Outstanding arrears from previous owner

Constitution of India, Article 226 – Assam Electricity Regulatory Commission [Electricity Supply Code and Related Matters] Regulations, 2004 – Electricity Act, 2003 – Section 43, 49, 50, 56 – Electricity – Outstanding arrears from previous owner – The petitioner, a partnership firm, sought a writ petition under Article 226 challenging a decision by the Assam Power Distribution Company Limited (APDCL) to deny a new electricity connection to their premises due to outstanding arrears from previous electricity bills.

The court directed interim relief for immediate electricity connection, subject to 50% payment of outstanding dues, with the remaining 50% to be paid upon dismissal of the writ petition.

The petitioner participated in an auction sale of a property and purchased a portion of land with a Business Centre cum Market Complex. They subsequently applied for a new electricity connection, which was denied by APDCL citing outstanding dues.

The court referred to the Assam Electricity Regulatory Commission [Electricity Supply Code and Related Matters] Regulations, 2004 and the Electricity Act, 2003. It cited a Supreme Court decision (K.C. Ninan vs. Kerala State Electricity Board) regarding the liability of auction purchasers for previous dues in properties sold on ‘as is where is’ basis.

The court dismissed the writ petition, holding the petitioner liable for outstanding electricity dues as per the auction sale agreement. It directed the petitioner to pay the outstanding dues as per the interim order, with APDCL waiving the accrued interest on the principal dues. (Para 15, 16)

GAUHATI HIGH COURT

2023 STPL(Web) 182 Gauhati

[2024 STPL 1650 Gauhati]

M/S Borah And Companyjiban Phukan Nagar Vs. Assam Power Distribution Company Ltd. And 3 Ors.

WP(C) 989 of 2014-Decided on 7-11-2023

2023 STPL(Web) 182 Gauhati

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Executive instructions cannot nullify statutory rules

Assam Bonded Warehouse Rules, 1965 – Rule 7 – Refund of Charges – Administrative Order – Statutory Rules – The present writ petition contested an order issued by the Secretary to the Government of Assam, Excise Department, reintroducing establishment charges under Rule 7 of the Assam Bonded Warehouse Rules, 1965, despite their abolition by the Assam Bonded Warehouse (Amendment) Rules, 2005.

The Court held that executive instructions cannot nullify statutory rules. Citing the principle established in K. Kuppusamy case, it ruled that until a rule is amended, it remains applicable. Consequently, the impugned order was set aside as ultra vires. Regarding refund, relying on Mafatlal Industries Ltd. case, the Court directed the petitioner to present evidence to the Excise Commissioner, who would determine entitlement to refund within four months, considering whether the petitioner passed on the burden of charges to retailers. (Para 15)

GAUHATI HIGH COURT

2023 STPL(Web) 181 Gauhati

[2024 STPL 1649 Gauhati]

M/S Centenary Distilleries P Ltd. Vs. State Of Assam And 2 Ors.

WP(C) 2875 of 2014-Decided on 7-11-2023

https://stpllaw.in/wp-content/uploads/2024/05/2023-STPLWeb-181-Gauhati-2.pdf

 

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Land Disputes: Binding nature of Civil Court’s decree on Revenue Courts

Land Disputes – Binding nature of Civil Court’s decree on Revenue Courts – The instant writ petition challenged a judgment of the Assam Board of Revenue concerning a land dispute. The dispute pertained to a plot of land associated with the Dargah of Pir Saheb. The Civil Court in Title Suit No.176/1978 had decreed in favor of the Petitioners’ predecessor, declaring their right, title, and possession over the land. The State of Assam was restrained from interference. Subsequently, the Settlement Officer issued a Khatian in favor of the Petitioners’ predecessor, and a new Dag was created. However, the Assam Board of Revenue, in its impugned judgment, disregarded the Civil Court’s decree and cancelled the Khatian issued to the Petitioners’ predecessor.

This action was deemed contrary to established principles, as Civil Court decrees are binding on Revenue Courts. Therefore, the High Court set aside the impugned judgment, restoring the Khatian to the Petitioners’ predecessor. (Para 12)

GAUHATI HIGH COURT

2023 STPL(Web) 180 Gauhati

[2024 STPL 1648 Gauhati]

Sayed Moinuddin Ahmed Vs. State Of Assam And 3 Ors.

WP(C) 4701 of 2013-Decided on 7-11-2023

https://stpllaw.in/wp-content/uploads/2024/05/2023-STPLWeb-180-Gauhati.pdf

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