Palayi Kizhakkekara Mathaiy's Son K.M. Mathew & Anr. v. Pothiyill Mommuttys Son Hamsa Haji & Ors.
BALAKRISHNA ERADI, J. After hearing Counsel appearing
on both sides we do not find any merit in this appeal and the Special
G Leave Petitions.
The sole question raised before us in the appeal concerns the
interpretation of Section 7D of the Kerala Land Reforms Act, 1963-
Act I of 1964-as amended by Act, 35 of 1969. That section reads-
"70. Certain persons occupying private forests or unsur-
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PALAY! KIZHAKKEKARA v. POTHIYILL {ERADI. J.J 111
veyed lands to be deemed tenants-Notwithstanding any- A
thing to the contrary contained in section 52 or any other
provi;ion of the Transfer of Property Act, 1882, or any
other law, or in any contract, custom or usage, or in any
judgment, decree or order of court, any person in occupa
tion at the commencement of the Kerala Land Reforms
(Amendment) Act, 1969, of the land of another situate in B
Mal;,'. "u, to which the provisions of the Madras Preserva
tion or Private Forests Act, 1949 (XXVIJ of 1949), were
applicable on the 11th day of April, 1955 or which was
unsurveyed on that date, shall be deemed to be a tenant if
he or his predecessor-in-interest was continuously in occu
pation of such land for not less than two years within a
period of twelve years immediately preceding the 1 lth day C
of April, 1967."
The High Court has taken the view that the benefit of the above
section would apply only to persons whose occupation of the private
forests or unsurveyed lands had a lawful origin and not to persons in D
unlawful occupation based on trespass or forcible and unlawful entry.
We are of opinion that the said interpretation placed by the High
Court on the section is perfectly correct.
For a proper understanding of the scope and intendment of Sec
tion 7D, it is necessary to examine the setting and the context in which E
the said section occurs in the Act. This will require a conjoint study of
the provisions contained in Section 7 A to 7C and Sections 8 and 9 of
the Act which immediately precede and succeed Section 7D. Those
sections are in the following terms:-
"7 A. Certain persons occupying land for not less than ten F
years to be deemed tenants-notwithstanding anything to
the contrary contained in section 52 or any other provision
of the Transfer of Property Act, 1882, or any other law, or
in any contract, custom or usage, or in any judgment,
decree or order of court, a person shall be deemed to be a
tenant in respect of the land of another in his occupation if-
(a) he or his predecessor-in-interest occupied such land be
lieving it to be the property of the Government;
(b) subsequent to such occupation such land has become
the property of such other person as a consequence of any H
judgment, decree or order of any civil court, and
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(c) such land has been in the continuous occupation of
such person for a period of not less than ten years preced
ing the commencement of the Kerala Land Reforms
(Amendment) Act, 1969.
Explanation I-In computing the period of occupa
tion of a person for the purpose of clause (c), the period
during which the predecessor-in-interest or predecessors
in-interest of such person was or were in occupation shall
also be taken into account.
Explanation II-For the purpose of this section, a
person shall be deemed to be in continuous occupation
notwithstanding any order of court for delivery of posses
sion to another person or any court record of dispossession.
7B. Certain persons occupying lands under leases granted
by incompetent persons to be deemed tenants-{ I) Not
withstanding anything to the contrary contained in any law,
or in any contract, custom or usage, or in any judgment
decree or order of court, any person in occupation of the
land,of another at the commencement of the Kerala Land
Reforms (Amendment) Act, 1969, on the basis of a regis
tered deed purporting to be a lease deed, shall be deemed
to be a tenant if he or his predecessor-in-interest was in
occupation of such land on the ! Ith day of April, 1957, on
the basis of that deed, notwithstanding the fact that the
lease was granted by a person who had no right over the
land or who was not competent to lease the land.
(2) Notwithstanding anything to the contrary con
tained in any law, or in any contract, custom or usage, or in
any judgment, decree or order of court, any person who on
the I Ith day of April, 1957, was in occupation of the land of
another and continued to be in occupation of such land till
the commencement of the Kerala Land Reforms (Amend
ment) Act, 1969, shall be deemed to be a tenant if the court
has delivered a judgment or passed an order before the
date of publication of the Kerala Land Reforms (Amend
ment) Bill, 1968, in the Gazette that the occupation by such
person was on the basis of an oral permission or an unre
gistered deed purporting to be a lease deed granted by a
person who had no right over the land or who was not
competent to lease the land.
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PALAY! KIZHAKKEKARA v. POTHIYILL (ERADI. J.] 113
7C. Certain persons who have paid amounts for occu
pation of land shall be deemed to be tenants:- Notwith
standing anything to the contrary contained in any law,
or in any contract, custom or usage, or in any judg
ment, decree or order of court, any person who is in occu
pation of the land of another at the commencement of the
Kerala Land Reforms (Amendment) Act, 1969, shall be
deemed to be a tenant if he or his predecessor-in-interest
has paid within a period of ten years immediately preceding
such commencement any amount in consideration of such
occupation or for the use and occupation of such land and
has obtained a receipt for such payment from any person
entitled to lease that land or his authorised agent or a
receiver appointed by a court describing the payment as C
modavaram or nashtavaram or modanashtavaram or a
receipt described as M. R. receipt.
xx xx xx
xx xx D
8. Certain persons who were cultivating land on varam
arrangement to be deemed tenants-Notwithstanding any
thing to the contrary contained in any law or in any con
tract, custom or usage, or in any judgment, decree or order £
of court, any person who, by virtue of the provisions of
section 6 of the Kerala Stay of Eviction Proceedings Act,
1957, was entitled to cultivate any nilam after the 11th day
of April, 1957, and was cultivating the nilam at the com
mencement of this Act, shall be deemed to be a tenant,
notwithstanding the expiry of the term fixed under the F
varam arrangement.
9. Certain persons who surrendered leasehold rights
but continued in possession to be deemed tenants-Not
withstanding anything to the contrary contained in any law,
or in any contract, custom or usage, or in any judgment.
decree or order of court, where, on or after the 11th day of G
April, 1957, a tenant holding land less in extent than the
ceiling area, had executed a deed surrendering his lease
hold right to the landlord, but had not actually transferred
possession of the land to the landlord before the comm
encement of this Act, such deed shall be deemed to be
invalid and such person shall be deemed to be a tenant." H
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' I 14 SUPREME COURT REPORTS ( 1987] 3 S.C.R.
On a careful scrutiny of the aforesaid provisions, it becomes abun
dantly clear that the intention of the legislature was to grant protection
only to persons whose possession had a lawful origin in the sense that
they had either bona fide believed the lands to be Government's lands
of which they could later seek assignment or had taken the lands on
lease from persons whom they bona fide believed to be competent to
grant such leases or had come into possession with the intention of
attorning to the lawful owners or on the basis of arrangements like
varam etc. which were only in the nature of licences and fell short of a
leasehold right. It was not within the contemplation of the legislature
to confer the benefit of protection on persons who had wilfully tres
passed upon lands belonging to others and whose occupation was un-
C lawful in its origin. The expression "in occupation" occurring in Section
7D must be construed as meaning "in lawful occupation."
In the present case the finding of fact entered by the High Court
is. that the appellant had come into possession of the lands by trespass.
His plea before the Courts below was that he was himself the owner of
D the area having acquired title to it by adverse possession. In such
circumstances the High Court was in our opinion fully justified in
holding that the appellant was not entitled to the protection of Section
7D. The appeal, is, therefore, devoid of merits.
Shri P.S. Potti, learned Senior Counsel appearing on behalf of
E the respondents has very fairly submitted before us that his clients
respondents--are prepared to pay to the appellant a sum of Rs.50,000
as ex-gratia payment in full and final settlement of whatever claims the
appellant may have towards the value of the rubber trees standing in
plots. A, B and C or in any other respect. We record this submission
and direct that an amount of Rs.50,000 shall be deposited by the
respondents in the trial Court within a period of three months from
F today, whereupon the appellant will be at liberty to withdraw the said
amount from Court without furnishing any security.
Subject to the aforesaid observation and direction, the appeal
and the Special Leave Petitions· are dismissed. The parties will bear
their respective costs. The amounts deposited in the trial court by the
G Receiver may be withdrawn by the respondents herein.
A.P.J. Appeal & Petitions dismissed.