Thota Sridhar Reddy & Ors. v. Mandala Ramulamma & Ors.
HEMANT GUPTA, J.
1. These two appeals are directed against the order passed by the
High Court of Judicature at Hyderabad for the States of Telangana and
Andhra Pradesh whereby revision under Section 28 of the And hra
Pradesh (Telangana Area) Abolition of Inams Act, 1955 1 was allowed
on 3.6.2019 while setting aside the order dated 19.2.1982 passed by the
Revenue Divisional Officer granting occupancy rights to Shri Thot a
Balakrishna Reddy, predecessor-in-interest of the present appellants2 in
respect of the land measuring 31.05 guntas falling in survey Nos. 53, 54,
55, 56, 61 and 62 in Village Jeedimetla as well as the order dated 4.12.2017
passed by the Joint Collector whereby the appeal filed on behalf of the
protected tenant, represented by Mandala Ramulamma, wife of Mandala
Yettaiah3 was dismissed. The resultant effect of such order of the High
Court was that the occupancy rights granted to the purcha ser stood
annulled.
1 For short, the ‘Inams Act’
2 Hereinafter referred to as the ‘purchaser’
3 For short, the ‘protected tenant’
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS.
2. Now, the purchaser seeks restoration of the occupancy ri ghts
granted in their favor on 19.2.1982 in the present appeals. On the other
hand, the protected tenant claims such rights on the strength of certificate
granted to Mandala Yettaiah on 20.3.1975 under Section 38-E of the
Andhra Pradesh (Telangana Area) Tenancy and Agricultural Lands Act,
19504.
3. It is not in dispute that one Mandala Lakshmaiah was the
protected tenant over the land measuring 19 acres and 16 guntas bearing
Survey Nos. 53, 54, 55 and 56 in Village Jeedimetla, District Hyderabad.
The tenancy rights were said to be surrendered orally in fa vor of Shri
Thota Balakrishna Reddy in the year 1954. The original Inamdar Jayaram
Rao and Venkateshwar Rao executed sale deed of the land mea suring
19 acres and 16 guntas on 5.7.1957 in favor of the purchaser- Shri Thota
Balakrishna Reddy. On the same day, the protected tena nt has also
purportedly sold the tenancy rights in favor of the purchaser.
4. The purchaser applied for occupancy rights certificate under
the Inams Act in the year 1975. Such certificate was granted to him on
19.2.1982 in view of the occupation and possession of the land by the
purchaser. On the other hand, the protected tenant was conferred
ownership rights when the certificate of ownership under Section 38-E
of the Tenancy Act was issued on 20.3.1975. The certificate of ownership
granted to protected tenant reads thus:
“CERTIFICATE OF OWNERSHIP UNDER SECTION 38-E
OF THE ANDHRA PRADESH (TELANGANA AREA)
TENANCY AND AGRICULTURAL LANDS ACT 1950
Whereas Sri Yettaiah is the protected tenant of the land
specified below belonging to the land holder Sri M. Venkateswar
Rao, S/o Nanatha Rao.
And whereas by virtue of Govt. Notification No. G.O.
Ms. No.3, Revenue (G) dated 1 st January, 1973 issued under
Section 38-E of the Andhra Pradesh (Telangana Area) Tenancy
and Agricultural Lands Act, 1950, the ownership of the said land
stands transferred to the said Sri Yettaiah.
It is hereby declared that the said tenancy Sri Yettaiah shall
be deemed to be owner of the said land with effect from 1st January,
4 For short, the ‘Tenancy Act’
1171
1973 as against the land holder and all other persons having any
interest therein.
DESCRIPTION OF LAND
’’
5. The purchaser had the protected tenancy rights firstly b y the
alleged oral surrender in the year 1954 and secondly, by transfer of
tenancy rights vide a registered document on 5.7.1957 and later the
factum of withdrawing of an appeal by the protected tenant on 14.2.1989
against the grant of occupancy rights certificate to the purc haser. The
purchaser also relies upon an order passed by the Mandal Revenue
Officer, Gutubullapur Mandal on 31.1.1989 in a petition under Section
19 of the Tenancy Act recognizing the surrender of protect ed tenancy
rights by the protected tenant on the basis of an affidavit allegedly filed
by him on 24.1.1989 to withdraw the appeal against t he grant of
occupancy rights to the purchaser. Though the order of withdrawal of
appeal was passed on 14.2.1989, but Section 19 petition was dismissed
on 31.1.1989.
6. Civil Appeal Nos. 2508-2509 of 2021 by way of Special Leave
Petitions were filed by the persons who have purchased plots, amongst
other persons, in the colony known as Meenakshi Estates, developed on
the land admeasuring 9 acres 16 guntas. In the said appeals, the legal
heirs of successors-in-interest of the protected tenant gave up their claim
over the land in question and confined their claim to the remaining land
excluding the land measuring 9 acres 16 guntas. Thus, the issue in the
present appeals is in respect of the residual 10 acres of la nd.
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
7. In view of this factual background, the question required to be
examined herein is as to whether the stand of the purchaser that the
protected tenant had surrendered the tenancy rights orally and which
was later on accepted by the Mandal Revenue Officer on 31.1.1989 is
legal and valid and not in contravention of the provisions of the Tenancy
Act. The ancillary question would be whether the purchaser could claim
occupancy rights on 19.2.1982 when the ownership ri ghts were
transferred in favor of the protected tenant on 20.3.1975. It is also to be
ascertained whether there was any transferrable interest in the property
which could be granted to the purchaser in 1982. Such contentions are
required to be assessed in the light of the statutory provisions of the
Tenancy Act and Inams Act which read as thus:
“TENANCY ACT
2(1) In this Act, unless there is anything repugnant in the subject
or context:-
xxx xxx xxx
(r) “Protected tenant” means a person who is deemed to be a
protected tenant under the provisions of this Act;
(Substituted by AP Act No. 15 of 1971 for “Protected” means a
person who is deemed to be protected tenant under the provisions
of this Act)
xxx xxx xxx
(v) “Tenant” means an asami shikmi who holds land on lease and
includes a person who is deemed to be a tenant unde r the
provisions of this Act;
xxx xxx xxx
CHAPTER III
Tenant
19. (1) Notwithstanding any agreement or usage or any decree or
order of a Court of law, but subject to the provisions of sub-section
(3), no tenancy of land shall be terminated before the expiration
of the period for which the land is leased or deemed to be leased
otherwise than,-
1173
(a) by the tenant by surrender of his rights to the landholder a t
least a month before the commencement of the year.
Provided that such surrender is made by the tenant in writing
and is admitted by him before and is made in good faith to t he
satisfaction of the Tahsildar; or
Provided further that where the land is cultivated jointly by
joint tenants or members of an undivided Hindu Family, unless the
surrender is made by all of them, it shall be ineffective in respect
of such joint tenants as have not joined in the application for
surrender, irrespective of the fact that the names of a ll the joint
tenants are not mentioned in the certificate;
(b) by the landholder on a ground specified in sub-section (2).
xxx xxx xxx
CHAPTER IV
Protected Tenant
34. (1) A person shall, subject to the provisions of sub-sections (2)
and (3), be deemed to be a protected tenant in respect of land if
he-
(a) has held such land as a tenant continuously, -
(i) for a period of not less than six years, being a period wholl y
included in the Fasil years 1342 and 1352 (both years inclusive),
or
(ii) for a period of not less than six years immediately preceding
the 1st day of January, 1948, or
(iii) for a period of not less than six years commencing not earlier
than the 1 st day of the Fasil year 1353 (6 th October, 1943), and
completed before the commencement of this Act, and
xxx xxx xxx
(3) A person who at the commencement of this Act is no longer in
possession of land in respect of which he is deemed under sub -
section (1) to be a protected tenant shall, notwithstanding anything
contained in that sub-section, not be deemed to be a protected
tenant in respect of such land if-
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
(a) he was evicted from such land in pursuance of a decree or
order of a competent Court, or
(b) such land is being cultivated personally by the land-holder, or
(c) a permanent structure has been built by the land-holder on
such land, or
(d) such land has been permanently diverted by the land-holder
to non-agricultural uses.
Explanation.- In sub-sections (2) and (3) of this sectio n and in
sections 35, 36 and 37 references to a person include references
to such two or more persons as are referred to in Explanation III
to sub-section (1).”
*38-E. (1) Notwithstanding anything is this Chapter or any law
for the time being in force or any custom, usage, judgment, decree,
contract or grant to the contrary, the Government m ay, by
notification in the Telangana Gazette, declare in respect of any
area and from such date as may be specified therein, that ownership
of all lands held by protected tenants which they are entitle d to
purchase from their land-holders in such area under any provision
of this Chapter shall, subject to the condition laid down in sub-
section (7) of section 38, stand transferred to and vest in the
protected tenants holding them and from such date the protected
tenants shall be deemed to be the full owners of such lands:
Provided that where in respect of any such land, any
proceeding under section 19 or section 32 or section 44 is pending
on the date so notified, the transfer of ownership of such land
shall take effect on the date, on which such proceeding is finally
decided, and when the tenant retains possession of the land in
accordance with the decision in such proceeding.
Explanation:- If a protected tenant, on account of his being
dispossessed otherwise than in the manner and by order of the
Tahsildar as provided in section 32, is not in possession of the land
on the date of the notification issued hereunder, then for t he
purposes of this sub-section, such protected tenant shall,
notwithstanding any judgment, decree or order of any Court, or
the order of the Board of Revenue or Tribunal or other authority,
1175
be deemed to have been holding the land on the date of th e
notification; and accordingly, the Tahsildar shall notwithstanding
anything contained in the said section 32, either suo motu or on
the application of the protected tenant hold a summary enquiry ,
and direct that such land in possession of the landholder or a ny
person claiming through or under him in that area, shall be taken
from the possession of the landholder or such person, as the case
may be, and shall be restored to the protected tenant a nd the
provisions of this section shall apply thereto in every respect as if
the protected tenant had held the land on the date of such
notification.
(2) A certificate in the prescribed form declaring him to be owner
shall be issued by the Tribunal after holding such enquiry as may
be prescribed, to every such protected tenant and notice of such
issue shall simultaneously be issued to the landholder. Such
certificate shall be conclusive evidence of the protected tenant
having become the owner of the land with effect from the date of
the certificate as against the landholder and all other persons having
any interest therein:
Provided that where the land, the ownership of which has
been transferred to the protected tenant under sub-section (1), is
in the occupation of a person other than the protected tena nt or
holder of the certificate issued under this sub-section, it shall be
lawful for the Tahsildar to restore the possession of the said land
to the protected tenant or holder of the certificate, after giving
notice of eviction to the occupant thereof, in the prescribed manner.
(3) Within ninety days from the date of notice of issue of the
certificate under sub-section (2), every land-holde r of lands
situated in the area specified in the notification under sub-section
(1), shall file an application before the Tribunal for the determination
of the reasonable price of his interest in the land which has been
transferred to the ownership of a protected tenant under su b-
section (1), and if an application is not so filed within such period
by the landholder, the Tribunal may suo-motu proceed to determine
such price and thereupon all the provisions of sub-section (4) to
(8) of section 38 shall mutatis mutandis apply to such application:
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
Provided that if the protected tenant commits default in
respect of any instalment, it shall be recovered by the Government
as arrears of land revenue and paid to the landholder:
Provided further that if the whole or any part of the price
due to the landholder cannot be recovered as arrears of l and
revenue the transfer shall not be effective and the amount, if any,
already paid by the protected tenant towards the price shal l be
refunded to him together with interest at three percent per annum
and the land revenue paid by him, if any, after deducting therefrom
the rent for the period.
(4) The Government may, for the purpose of giving effect to the
provisions of this section, by rules, make such supplemental,
incidental and consequential provisions as they may deem
necessary, such as the procedure for making inquiry to ascertain
the extent of the holding of the tenant as on the notified date and
the extent of the land which is to be deemed to have been
transferred to and vested in the protected tenants.
(5) Notwithstanding anything contained in this section or section
19, the Collector may, suo-motu at any time, hold an enquiry with
a view to ascertain the genuineness of the surrender of the right
made by the protected tenant under clause (a) of sub-sectio n (1)
of section 19, for the purpose of effecting the transfer of ownership
under this section, and pass such order in relation thereto as he
may think fit.
Provided that no order adversely affecting any person shall
be passed under this sub-section unless such person has had an
opportunity of making his representation thereto.
• Inserted by Hyderabad Act No. III of 1954. Inserted clause
reads as under:-
“38-E (1) Notwithstanding anything in this chapter or any law
for the time being in force or any custom, usage, decree,
contract or grant to the contrary the Government may, by
notification in the Jarida, declare in respect of any area and
from such date as may be specified therein that ownership of
all lands held by protected tenants which they are entitled to
purchase from their land-holders in such area under any
1177
provision of this chapter shall subject to the provisions of sub-
section (7) of section 38 of the Act stand transferred to and
vest in the protected tenants holding them and from such date
the protected tenant shall be deemed to be the full owner of
such lands.”
The said provision was Substituted by AP Act No. 15 of
1971, as extracted above.
xxx xxx xxx
44. **[(1)Subject the provisions of sub-section (8) a landholder
who, on the date on which the Hyderabad Tenancy and
Agricultural Lands (Amendment) Act, 1954 comes into force, is
not already cultivating personally an area to three times the family
holding for the local area concerned and who in good faith requires
land leased out to a protected tenant for cultivating personall y
may, notwithstanding anything contained in Section 19 of the Act,
terminate the tenancy and resume such land or portion of such
land that would, together with the land which he is al ready
cultivating personally, either as owner or protected tenant, be equal
to three times the family holding, by making an application in the
manner prescribed to the Collector or any other officer whom the
Government may from time to time authorise in this behalf.
***[Provided that after the commencement of the
Hyderabad Tenancy and Agricultural Lands (Amendment) Act,
1955, no such landholder shall be entitled to exercise the right of
resumption under this sub-section unless he has within a period of
eighteen months from the commencement of the said Act filed
with the Deputy Collector, in the prescribed manner, a statement
of reservation demarcating the lands which he reserves for the
exercise of the rights or resumption under this section. On such
statement being filed, the Deputy Collector shall, as soon as may
be, after making necessary enquiry, issue a certificate t o the
landholder in the prescribed manner to the effect that the l ands
have been so reserved. The right to terminate tenancy sh all be
exercisable only in respect of the lands specified in the certificate
as so reserved and shall not extend to any other land.]
** Substituted by Hyderabad Act No. III of 1954.
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
*** Inserted by Hyderabad Act No. III of 1956
(2) The landholder’s right to terminate tenancy of any protected
tenant under sub-section (1) shall be limited to an area whic h
shall after such termination, leave with the protected tenant an
area, which together with the land owned by him or cultivated by
him as a protected tenant, is equal to a basic holding for the local
area concerned:
Provided that, where by such resumption the land that will
be left with protected tenant together with other land owned or
cultivated by him will be less than a basic holding, the landholder’s
right of terminating the tenancy, shall be limited to half the area of
land leased out by him to the said protected tenant:
Provided further, that where the land owned by a landholder
does not exceed a basic holding he will be entitled to resume the
entire land leased by him.]
46. If at any time the tenant makes an application to the Tahsildar
and satisfies him that the landholder has failed to comply within a
reasonable time with the provisions of Section 45, the protected
tenant shall be entitled on a direction by the Tahsildar to o btain
immediate possession of the land to such compensation as may
be awarded by the Tahsildar for any loss caused to the tenant by
his eviction and by the failure of the landholder to restore or give
possession of the land to him as required by the said section.
47. (Omitted by AP Act No.12 of 1969)
(1) Notwithstanding anything contained in any other law for the
time being in force or in any decree or order of a Court, no
permanent alienation and no other transfer of agricultural land
shall be valid unless it has been made with the previous sanction
of, #[or in the case of a disposition by will] has been confirmed
by, the Taluqdar.
##[Provided that the Collector may declare a permanent
alienation or any other transfer of agricultural land to be valid if
the permanent alienation or transfer took place bef ore the
commencement of the Hyderabad Tenancy and Agricultural Lands
(Amendment) Act, 1954 and possession of the land transferred
1179
was given to the vendee before such commencement if application
for sanction is made within one year after such commencement].
## Inserted by Hyderabad Act No. III of 1954
(2) Applications for such previous sanction #[or confirmation] shall
be made and disposed of in accordance with such procedure as
may be prescribed.
# Deleted by Hyderabad Act No. XXIII of 1951
INAMS ACT
1. (1) This Act may be called the Andhra Pradesh (Telangana
Area) Abolition of Inams Act, 1955.
(2) It extends to the whole of the Telangana area of the St ate of
Andhra Pradesh and shall apply to all inams as defined in clause
(c) of sub-section (1) of Section 2.
(3)(a) This section, Section 2, Section 3 except clauses (d) , (g),
(h) and (i) of sub-section (2), sections 30 to 34 (both inclusive),
Section 35 to the extent to which it enables rules to be made for
the purposes of the aforesaid sections, Section 36 and Section 37,
shall come into force on the date of publication of this Act in the
Official Gazette;
(b) the rest of this Act shall come into force on such date as the
Government may, by notification in the Official Gazette, appoint
in this behalf.
2. (1) In this Act, unless there is anything repugnant in the subject
or context-
xxx xxx xxx
(c) ‘inam’ means land held under a gift or a grant made by the
Nizam or by any Jagirdar, holder of a Samsthan or other competent
grantor and continued or confirmed by virtue of a muntakhab or
other title deed, with or without the condition of service and coupled
with the remission of the whole or part of the land revenue thereon
and entered as such in the village records and includes-
(i) arazi makhta, arazi agrahar and seri inam; and
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
(ii) lands held as inam by virtue of long possession and entered as
inam in the village records:
Provided that in respect of former Jagir areas, the expression
inam shall not include such lands as have not been recognised as
inams by Government after the abolition of the Jagirs.
xxx xxx xxx
(j) ‘protected tenant’ means the protected tenant as defined in the
Telangana Tenancy and Agricultural Lands Act, 1950.
xxx xxx xxx
3. (1) Notwithstanding anything to the contrary contained in any
usage, settlement, contract, grant, sanad, order or other instrument,
Act, regulation, rules or order having the force of law and
notwithstanding any judgment, decree or order of a Civil, Revenue
or Atiyat Court, and with effect from the date of vesting, all inams
shall be deemed to have been abolished and shall vest in the State.
(2) Save as expressly provided by or under the provisions of this
Act and with effect from the date of vesting, the fol lowing
consequences shall ensue, namely:-
(a) the provisions of the Telangana Land Revenue Act, 1317 Fasli
relating to inams, and the provisions of the Telangana Atiyat
Enquiries Act, 1952 and other enactments, rules, regulations and
circulars in force in respect of Atiyat grants shall, to the extent,
they are repugnant, to the provisions of this Act, not apply and the
provisions of the Telangana Land Revenue Act, 1317 Fasli, relating
to unalienated lands for purposes of land revenue, shall apply to
the said inams;
(b) all rights, title and interest vesting in the Inamdar, kabiz-e-
kadim, permanent tenant, protected tenant and non-prote cted
tenant in respect of the inam land, other than the interest expressly
saved by or under provisions of this Act and including those in all
communal lands, cultivated and uncultivated lands (wh ether
assessed or not), waste lands, pasture lands, forests, mi nes and
minerals, quarries, rivers and streams, tanks and irrigation works,
1181
fisheries and ferries, shall cease and be vested absolute ly in the
State free from all encumbrances.
xxx xxx xxx
(h) the relationship with regard to inam land as betwe en the
inamdaar and kabiz-e-kadim, permanent tenant, protected tenant
or non-protected tenant shall be extinguished;
xxx xxx xxx
4. (1) Every inamdar shall, with effect from the date of vest ing,
be entitled to be registered as an occupant of all inam lands other
than-
(a) lands set apart for the village community, grazing lands; waste
lands, forest lands, mines and quarries; tanks, tank beds and
irrigation works, streams and rivers;
(b) lands in respect of which any person is entitled to be registered
under Sections 5, 6, 7 and 8 of the Act;
(c) lands upon which have been erected buildings owned by any
person other than the inamdar;
which immediately before the date of vesting, were under his
personal cultivation and which, together with any la nds he
separately owns and cultivates personally are equal to four and a
half times the ‘family holding’.
xxx xxx xxx
7. (1) Every protected tenant shall, with effect from the da te of
vesting, be entitled to be registered as an occupant of such inam
lands in his possession as may be left over after the all otment
under section 4, which were under his personal cultivation and
which, together with any lands he separately owns and cultivates
personally, are equal to four and a half times the ‘family holding’.
(2) The protected tenant shall be entitled to compensat ion from
the Government as provided for under this Act in respect of inam
lands in his possession in excess of the limit specified in su b-
section (1) whether cultivated or not:
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
Provided that-
(a) he continued to be a tenant of such inam lands until the
date of vesting; or
(b)if he is not in possession, he has been unlawful ly
dispossessed of such lands by the inamdar between the 10 th of
June, 1950 and the date of vesting.
(3) No protected tenant shall be entitled to be registered as an
occupant under sub-section (1) unless he pays to the Government
as premium an amount equal to forty times the land revenue for
dry land and thirteen times for wet land. The amount of premium
shall be payable in not more than ten annual instalments a long
with the annual land revenue and in default of such payment shall
be recoverable as arrears of land revenue due on the land in respect
of which it is payable.
Provided that the protected tenant who is a poor person
shall be entitled to be registered as an occupant under sub-section
(1), without payment of any premium to the Government.
xxx xxx xxx
10. Collector shall examine the nature and history of all lands in
respect of which an Inamdar, kabiz-e-kadim, permanent tenan t,
protected tenant or non-protected tenant, claims to be registered
as an occupant under sections 4, 5, 6, 7 and 8, as the case may be,
and decide-
(a) in whose favour, and in respect of which inam lands, the
claims should be allowed;
(b) the land revenue and the premium payable in respect of
such lands.
xxx xxx xxx
33. Nothing in this Act shall in any way be deemed to affect the
application of the provisions of the Telangana Tenancy and
Agricultural Lands Act, 1950 to any inam or the mutual rights and
obligations of an Inamdar and his tenants, save in so far a s the
1183
said provisions are in any way inconsistent with the e xpress
provisions of this Act.”
8. Sections 1, 2, 3 except clauses (d), (g), (h) and (i) of sub-
section (2), Sections 30 to 34, Section 35, Sections 36 and 37 had come
into force on the date of publication of the Inams Act in t he Official
Gazette on 20.7.1955 in terms of Section 1(3)(a) of the Inams Act. The
other provisions of the Inams Act including Section 3(2) (d), (g), (h) and
(i) came into force w.e.f. 1.11.1973.
9. In terms of Section 34 of the Tenancy Act, a person is deemed
to be a protected tenant in respect of any land of which he is not in the
possession at the time of commencement of the Act. He can se ek to
recover possession, if he intimates to the landholder within six months of
the said commencement that he is willing to hold the land on the terms
and conditions on which he held it before he lost possession thereof as
per Section 36. Still further, Section 38 starts with non obstante clause
contemplating that a protected tenant shall at any time after the
commencement of the Hyderabad Tenancy and Agricultural Lands
(Amendment) Act, 1954, be entitled to purchase the land-holder’s interest
in the land held by the former as a protected tenant. It may be mentioned
that if in respect of a land held by a protected tenant, the landlord concerned
intends to relinquish his interest in the land without receiving any
consideration, the Tribunal shall issue to such protected tenant a certificate
as provided in sub-section (6) of Section 38 (See Section 38-B). Further,
in terms of Section 38-D, if the landlord at any time intends to sell the
land held by the protected tenant, he shall give a notice in writing of his
intention to such protected tenant and offer to sell the land to him. The
protected tenant is to convey his intention to purchase the land within six
months from the date of receipt of such notice.
10. Mr. Dushyant Dave, learned senior counsel for the appellant
inter alia submitted that an appeal against the grant of occupancy rights
on 09.02.1982 was filed on 18.03.1987 by the protected tenant. Such
appeal was beyond the period of 30 days provided to file an appeal. The
said appeal was later withdrawn on 14.02.1989. Reliance has been placed
upon a judgment of this Court reported as Boddam Narsimha v. Hasan
Ali Khan & Ors,5 wherein this Court held that the benefit of section 38-
5 (2007) 11 SCC 410
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
E is to be given to persons holding the lands as protected tena nts and
who continue to hold the lands as such on 1.1.1973.
11. It was further argued that the purchasers had purchased Inam
land, governed by the Inams Act. It was also contended that the ri ghts
of the protected tenant under the Tenancy Act are subject to provisions
of the Inams Act by virtue of Section 33 of the said Act relying on the
judgment of Andhra Pradesh High Court in S. Rangaiah and Ors. v.
Collector Medak & Ors.6. It was also argued that Inams Act recognizes
the right of Inamdar and protected tenant to sell/ alienate their right and
interest in the land. The reliance was on the judgments rep orted as
S. Veera Reddy v. Chetlapalli Chandaiaha 7 and Bhimavarapu
Venkaiah & Anr. v. RDO8, S. Narsasimha and Ors. v. Joint Collector-
II, Ranga Reddy District 9. It was thus contended that the bar under
Section 30 restricting sub-division or sub-letting and alienation in terms
of now Section 47 (since repealed) of the Tenancy Act are not applicable
in view of the Inams Act.
12. A reference was also made to affidavits filed by Yettaiah, son
of the principal protected tenant as well as by the wife of the protected
tenant, admitting sale of land to the purchaser in 1957. Thus, the argument
was that the certificate of occupancy right was issued on 19.02.1982
upon due enquiry and after hearing the heirs of the original protected
tenant.
13. Mr. Dave relied upon an appeal filed against the grant of
occupancy rights before the Mandal Revenue Officer wherein statements
of the parties and the compromise arrived at by them wer e recorded.
This appeal was later withdrawn on 14.02.1989 by the protected tenant.
14. Further, an application filed before the Mandal Revenue Officer,
Qutubullapur, Medchal District under Section 32 of the Tena ncy Act
seeking restoration of possession was referred to but it was cont ended
that the pendency of such application was not discl osed by the
respondents in proceedings before the High Court. Thus, the Respondent
Nos. 3 to 10 are seriously guilty of suppression of rel evant facts.
6 1996 SCC Online AP 275
7 1994 SCC Online AP 510
8 (1999) SCC Online AP 896
9 2006 SCC Online AP 57
1185
Reference has been placed upon a judgment of this Court reporte d as
Jai Narain Parasrampuria v. Pushpa Devi Saraf 10.
15. Mr. V. Giri, learned counsel in another appeal submitted that
three generations of the protected tenant participated in t ransactions
granting occupancy rights to the family members of the p urchaser in
respect of the subject property. It was argued that the i nitial appeal
against the grant of occupancy rights certificate was withdrawn by the
protected tenant. Thereafter, the later appeal against suc h grant would
be barred ab initio as the same was filed after an inordinate delay of 36
years. Hence, it was argued that the compromise in judicial proceedings
ought to be given utmost sanctity, asserting the compromise arrived at
by the parties in 1989 which led to the withdrawal of appeal.
16. It was further argued that the contention of the prot ected
tenant that they became aware of occupancy rights certi ficate in the
year 2015 was a clear moonshine defense and that the delay of 33 years
by them per se defeats the proprietorial claim against subject property.
Reliance was placed upon judgment of this Court in Ravinder Kaur
Grewal & Ors. v. Manjit Kaur & Ors 11 inter-alia to contend that the
appellants are in possession since the date of purchase, therefore, they
have perfected their possession into title. Another order passed by this
Court in Civil Appeal Nos. 4367-4372 of 2016 titled as Jagadish v.
State of Karnataka decided on 29.08.2019 was referred wherein it has
been held that even though there is no period of limitation pr escribed
under Karnataka Scheduled Castes and Scheduled Tribes (Prohibit ion
of Transfer of Certain Lands) Act, 1978, but such right is required to be
exercised within reasonable time. Similar view has been taken by the
Division Bench of the High Court in Vorla Ramachandra Reddy &
Anr. v. Joint Collector I & Ors.12, wherein the reliance is placed upon
the judgment of this Court reported as Ponnala Narasing Rao v. Nallolla
Pantaiah 13. It was thus argued that the challenge to the gran t of
occupancy certificate had not been made within reasonable tim e, thus
the High Court had erred in law to interfere to dispute the legality of the
occupation rights certificate after gross delay and inaction on part of the
respondents.
10 (2006) 7 SCC 756
11 (2019) SCC Online SC 975
12 2021 SCC OnLine TS 703
13 (1998) 9 SCC 183
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
17. Learned counsel for the appellants also relied upon Single
Bench judgments of Andhra Pradesh High Court reported as Jupudi
Bhushanam v. Joint Collector, Khammam and Ors .14, Kasa
Muthanna and Another v. Sunke Rajanna and 11 Ors.15 It was argued
that the reliance placed by the High Court on the judgment in Sada v.
The Tahsildar16 is misconceived as in that case, the violation of period
of limitation prescribed under Section 24 was not the question, nor the
interplay between the Inams Act and the Tenancy Act was e xamined
therein. Even the judgment of this Court in B. Bal Reddy v. Teegala
Narayana Reddy17 would not be applicable in the facts of the present
case.
18. It was hence contended that the Joint Collector in its order
dated 4.12.2017 has rightly held that Section 38-E Certificate was granted
in favor of the protected tenant under a misconception because of original
uncorrected protected tenancy register. Still further, the Certificate under
Section 38-E should be followed by a payment of compensation to the
land owner. Since no compensation has been paid, the final vesting does
not take place. Furthermore, the conduct of protected tenant p rior to
and subsequent to Section 38-E Certificate demonstrat es that such
certificate never attained legal finality in light of the due legal procedure.
19. It was averred that the predecessor-in-interest of the purchaser
was in possession on 01.11.1973 which entitled him to occupancy rights
under the Inams Act. The name of predecessor-in-interes t was also
recorded in the order of 1982 by the Revenue Divisional Officer and the
Joint Collector who passed the order in 2017.
20. On the other hand, learned counsel for the respond ents-
protected tenants submitted that the primary objection of the purchaser
was firstly, settlement and consequent withdrawal of the appeal by the
protected tenants in the year 1989 and secondly, delay in filing of the
appeal in the year 2015. It was argued that the Tenancy Act and Inams
Act are based upon the principle that tiller of the land shall be the owner.
The provisions of the Tenancy Act are intended to secure the interests
of the tenants and insulate them from relinquishing their rights directly or
indirectly. The freedom of the protected tenant to relinquish his tenancy
14 1996 SCC OnLine AP 941
15 2015 SCC OnLine Hyd 592
16 (1987) 2 APLJ 397
17 (2016) 15 SCC 102
1187
rights are restricted by the statute as such surrender can be only with
the permission of the Competent Authority. In the present c ase, the
purchaser has placed reliance upon an oral surrender of tenancy rights
in the year 1954 and subsequent sale thereof in the year 1957. These
two actions are prohibited in law as the surrender has to be in writing
and is to be admitted by the tenant in good faith subject to the satisfaction
of the Tehsildar in terms of Section 38-E(5) read with Section 19(1)(a)
of the Tenancy Act. Both the instances of surrender of tenan cy rights
orally in 1954 and in writing in 1957, contravenes the statutory protection
granted to the protected tenant. The Tenancy Act has been ena cted to
protect the tenants from exploitation of the land owners, therefore, the
interpretation which advances the purpose of the statu te should be
accepted. The statute has prescribed a mode of surrender of te nancy
and such mode alone could be resorted to before the surrender is made.
The subsequent proceedings were to justify the surrender of alleged
tenancy rights. The reliance is placed upon Kotaiah & Anr. v. Property
Association of the Baptist Churches(P) Ltd. 18, Edukanti Kistamma
(Dead) through LRs & Ors. v. S. Venkatareddy (Dead) through LRs
& Ors.19 and B. Bal Reddy .
21. On merits, it was argued that the purchasers had not disclosed
the factum of the appeal being filed before the Joint Collector or before
the High Court. In fact, the protected tenants had no knowledge of the
appeal being filed and withdrawn. The filing and withdrawal of the appeal
is surrounded by suspicious circumstances so as to justify the gra nt of
Occupancy Rights Certificate to the purchasers. The order of gran ting
occupancy rights was passed on 19.2.1982 after issuance of certificate
under Section 38-E. Once ownership rights had been grant ed under
Section 38-E, the same cannot be disputed except in the manner
contemplated by law. There was no question of granting occupancy
rights to the purchasers as the land is deemed to be transferre d to the
protected tenant as the owner and that there was no intere st or title in
the disputed land which could be claimed by the purchasers onc e the
ownership is granted to the protected tenant. Section 33 of the Inams
Act specifically provides that the Inams Act will not affect the Tenancy
Act and the provisions of the Tenancy Act, particularly Section 38-E (1)
and Sub-Section 5 read with Section 19 have been given overriding effect
18 (1989) 3 SCC 424
19 (2010) 1 SCC 756
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
after the enactment of Inams Act. Thus, such provisions would prevail
over the Inams Act. Section 38-E (1) of the Tenancy Act substituted in
the year 1971 had given overriding effect to Chapter IV over any other
law which would also include the Inams Act.
22. The argument that the protected tenant has not deposited the
sale consideration payable to the land owner is inconsequential as it is
land owner who had to apply for compensation by way of an application
to the Tribunal in terms of Section 38-E (3) of the Tenanc y Act. In
addition, the payment of sale consideration was the responsibility to be
exercised by the Collector in terms of Section 38-E read with Section 38
sub-sections (4) to (8) of the Tenancy Act. Therefore, failure of the land
owner or the Revenue Authorities to assess the compensation pa yable
by the protected tenant would not defeat his rights by virt ue of being
declared as an owner on the strength of a statute. It was al so argued
that the land owner could not affect sale of his interest in the land which
is in possession of the protected tenant without giving an opportunity to
the protected tenant to purchase such land. The ownership rights were
transferred in favor of the purchasers in the year 1957 but no opportunity
was granted to the protected tenant to purchase land. Therefore, in terms
of Section 38-D, the sale itself in favor of the purchasers is in violation
of the prohibition contained in Section 38-D of the Tenancy Act.
23. It was further submitted that the Ownership Certificate issued
under Section 38-E has not been challenged by any person before any
authority. Therefore, the transfer of ownership is complete in respect of
the protected tenant. At best, the land owner could claim the unpaid,
undetermined sale price from the protected tenant but t he transfer of
ownership rights shall be absolute. Reliance has been placed upon
judgment of this Court in Edukanti Kistamma and judgment of the
High Court reported as Sada.
24. It was contended that Occupancy Rights Certificate was issued
to the purchasers without any notice to the protected tenant. Such
certificate would be null and void after the ownershi p rights were
conferred to the protected tenant. The affidavits of Mandala Yettaiah
and Govaramma in 1979 relinquishing the rights are undated, unsigned
and in any case ineffective as there was no permission obtained by the
Tehsildar for surrender of the tenancy rights under Section 38 -E (5)
read with Section 19 of the Tenancy Act. Therefore, the knowledge of
1189
grant of Occupancy Rights Certificate to the purchasers cannot be
attributed to the respondents and thus could be disputed in the year 2015
when the information about such Certificate came to the notice of some
of the protected tenants. It was an assertion of the title by the protected
tenant on the basis of certificate granted under Section 38- E of the
Tenancy Act. Thus, the Occupancy Rights Certificate obtained by the
purchasers was in nullity, void ab initio and without jurisdiction.
25. We have heard learned counsels for the parties and find no
merit in the present appeals. Before we examine the fact s of the case,
some principles of law need to be stated.
26. In Sada, a Full Bench of the Andhra Pradesh High Court
examined various aspects of the Tenancy Act by framing 9 points for
consideration by giving complete legislative history of the Tenancy Act.
The High Court held on the point Nos. 2 and 4 relevant for the purpose
of the preset appeal as under:
“(1) What is the meaning of the words ‘lands held by protecte d
tenants’ and whether a protected tenant must have been in physical
possession on the date of notification issued by the Government
under Section 38E (1) of the Act (in this batch 1-1-1973) for
becoming owner of the property and for obtaining the ownership
certificate?
4) Whether the new proviso to Section 38E(2) added by Act 2 of
1979 is retrospective and permits restoration of possession where
the ownership certificate has been issued before 11-1-1979 the
date when Act 2 of 1979 has come into force?
“27. In our view, the contention for the landholders that unless the
protected tenant is in physical possession on the date of notification
issued, under Section 38-E(1), he cannot get the ownership rights,
is not tenable. A plain regarding of S. 38-E (1) shows that the
Government may, by notification in the gazette declare is respect
of any area, that from which such date as may be specified therein,
ownership of all lands held by protected tenants which they ar e
entitled to purchase from their landholders in such area shall, subject
to Sec. 38(7), stand transferred to and vest in the protected tenant
holding them. It is important to note that the statute does not say
‘held on the date specified in such notification’. Wherever the
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
Legislature wanted that land should have been held on any specified
date, it had clearly specified in that Act…
xx xx xx
29. It is clear from S. 38-E that it is for these protected tenants
who are finally declared to be protected tenants’ and included in
the Register prepared for that purpose end for whom prot ected
tenancy certificates have been issued, that ownership right s are
envisaged. In S. 33-E(1), subject of course, to the limitation with
regard to extent of holdings as specified in S. 38(7) and to the
proviso to S. 38-E(1). Once persons who held land on the dates
or for the periods mentioned in S. 34. 37 and 37-A and the
requirement of physical possession on the dates required in those
sections is satisfied, such persons have become protected tenants’.
Once a person becomes a protected tenant, he earns a qualification
to become an owner by force of statute, subject of course to the
qualification regarding extent in S. 38(7) and to the proviso to S.
38-E(1). There is no requirement in the Act that he should also be
in possession on the date specified in the notification issued in S.
38-E(1). The words ‘all lands held by protected tenants’ is more a
description of the lands with regard to which the right as ‘protected
tenant’ has been declared and there are no words requiring physical
possession on the date specified in the notification.
xx xx xx
31. A person ‘holds’ the land as protected tenant if he is stiff a
‘protected tenant’ on the notified date, though out of possession. As
long as his right as protected tenant has not been determin ed
by date of notification in a manner known 10 the Ac t, he
‘holds’ the land ax protected tenant, whether physi cally in
possession or not We shall explain this again under point 7 in the
context of surrender”.
xx xx xx
36. For all the aforesaid reasons we hold on Point No. 1 that for
tie vesting of the ownership of land ‘held’ by a protected tenant
under S. 38-E(1), it is not necessary that the protected te nant
should have been in physical possession on the date of notification,
it is sufficient if he continued to hold the status of a ‘p rotected
1191
tenant’ as on the notified date even if not in physical possession
and he satisfied the requirements of S. 32(7) of the Act. This is
also subject to the proviso to Section 38-E(1).
xx xx xx
55. Point No. 4 The point is whether the new proviso to S. 38-
E(2) added by Act 2 of 1979 is retrospective and permits restoration
of possession Where ownership the certificate is issued bef ore
11-1-1979 when Act 2/79 has come into force.
56. Now the new proviso to S. 38-E(2) was introduced by Act 2/
1979 to get round the difficulty created by the jud gment
in Narsaiah’s case (1), There, it was held, that once the protected
tenant has become owner, there is no machinery in the Act enabling
him to obtain possession. It was pointed out that the provision in
the latter part of the Explanation to S. 38 E (1) enabling a ‘protected
tenant’ to obtain possession through the Tahsildar was not
applicable to the case of an application by an owner, even if it be
a case of a protected tenant becoming an owner.
57. In our view, the Legislature wanted to fill up the diffic ulty
created by Narsaiah’s case when it added the new proviso to S.
38-E(2) enabling the Tahsildar to restore possession to a former
protected tenant who had become the owner.
xx xx xx
59. It is then argued that the words “the ownership has been
transferred” in the new proviso to S. 38-E(2) show th at the
amendment does not apply to cases where the ownership certificate
has been issued before 11-1-1979. This interpretation is not correct.
We fully endorse the reasons given in Chennaiah’s case to say
that these words cannot be given such a restricted meaning. Point
No. 4 is decided accordingly.
xx xx xx
66. For purposes of S. 38-E(1) the protected tenant should not
have validly surrendered his tenancy right by the date of notification
under S. 38-E(1). But if he had voluntarily surrendered his rights
prior to 4-2-1954 (the date of the 1954 amendment) and put the
landholder in possession, be it without the intervention of the
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
Tahsildar, he could not claim any rights of ownership under S. 38-
E(1) upon the issue of the notification. Likewise, if the surrender
was after 4-2-1954 and before the date of notification under S.
38-E(1) and such surrender satisfied the requirements of Sec. 19
and was a valid surrender, the protected tenant could not claim
ownership rights. If however there was no valid surrender, whether
before (being not voluntarily but forcible), or after (being not in
conformity with S. 19), the protected tenant had a right to be put
back in possession under S. 32 as stated in Venkanna v. Buchamma
(12) and such protected tenants, (if they had not otherwise lost
their status under Ss. 32 or 44 by the notified date) would be
entitled to ownership rights under S. 38E(1) and would be entitled
to the ownership certificate under S. 38-E(2). In cases wher e
proceedings under S. 19 are pending on the date of notification
and end in favour of the protected tenant thereafter, the dat e of
vesting gets postponed till the said decision. Point No. 7 is decided
accordingly.”
27. In Kotaiah, this Court held that the protected tenant cannot
be dispossessed illegally by the landlord or anybody else. Section 38-D
prohibits the land holder from alienating the tenanted land to third parties.
Even if the land holder intends to sell the tenanted land, he must give a
notice in writing of such intention to the protected tenant. It was concluded
as under:
“22. In sum...,
(i) The protected tenant has a right to become full owner of the
lands in his possession. He becomes the owner when the
Government issues a notification under Section 38-E. We are told
that the Government had issued such a notification on 1-10-1973,
relating to the district where the lands in question are situated. It
was about three years earlier to termination of the appel lants’
tenancy by the Association. If the appellants had a right to become
owners of the tenanted lands, the question of terminating their
tenancy would not arise.
(ii) The protected tenant cannot be dispossessed illegally by the
landlord or anybody else. If so dispossessed, the Tehsildar either
suo motu or on application must hold a summary enquiry, and
direct that the land be restored to the protected tenant. That is the
mandate of Section 38-E and the Explanation thereof.
1193
(iii) The landholder by himself cannot dispossess the protecte d
tenant even if the tenancy is terminated in accordance wit h the
law. The landlord will have to take recourse to Section 32. He
must approach the Tehsildar to hold an enquiry and pass such
order as he deems fit.
(iv) Section 38-D prohibits the landholder from alienating the
tenanted land to third parties. If the landholder intends to sell the
land, he must give notice in writing of his intention to the protected
tenant. The first offer must be given to the protected tenant. It is
only when the protected tenant does not exercise the right to
purchase, the landholder could sell the land to third parties. The
alienation made in contravention of these provisions has no legal
effect.”
28. In Edukanti Kistamma, the appellants were the protected
tenants and were issued ownership certificate under Section 38-E of the
Tenancy Act. The stand of the respondents of surrender of the tenancy
rights was found to be invalid. This Court in these circumstances held
that it is not necessary that a protected tenant should also be in possession
on the date specified in the notification issued under Section 38-E of the
Tenancy Act. This Court relied upon the judgment in Kotaiah and held
as under:
“19. In view of the above, it is evident that the scheme of the Act
provides that a person who is a protected tenant has a right to get
the ownership in accordance with the statutory provisions, provided
the total area of the land owned by the landholder including the
land under the cultivation of his tenants is more than three times
the area of a family holding for the local area concerned. The
person should be in lawful possession of the land on the date of
commencement of the 1950 Act to claim benefits under the Act.
The Government has to make a declaration by publishing the
notification in the gazette in respect of any area and from such
date as may be specified therein, that the ownership of all lands
held by protected tenants which they are entitled to purchase from
their landholders in such area under the Act, subject to the
conditions laid down under Section 38(7) of the Act would stand
transferred to and vest in the protected tenants holding them a s
such and from such date the protected tenants shall be deemed to
be the full owners of such lands.
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
20. The certificate issued under Section 38-E(2) shall be conclusive
evidence of the protected tenant having become the owner of the
land with effect from the date of the certificate, as agai nst the
landholder and all other persons having any interest therein. In
case the protected tenant is not in possession of the land, he has a
right to restoration of the possession of the said land through the
Tahsildar. The protected tenant cannot be dispossessed illegally
by the landlord or anybody else. If so dispossessed, he has a right
to restoration of the possession. He can be dispossessed only by
taking recourse to the procedure prescribed under Section 32 of
the 1950 Act.
21. There is a complete embargo on the right of the landholder to
alienate the tenanted land to a third party without giving an option
to the tenant to purchase the land. Section 47 of the 1950 Act
(omitted by the amendment of 1969) provided that any transfer of
such land except to the protected tenant shall be void ab initio.
The protected tenant may surrender his rights by strict adherence
to the statutory requirements under the 1950 Act. In case there is
any deviation from any such requirement, it would render the
surrender ineffective and inconsequential.
xxx xxx xxx
26. The 1950 Act being the beneficial legislation r equires
interpretation to advance social and economic justice and enforce
the constitutional directives and not to deprive a person of his
right to property. The statutory provisions should not be construed
in favour of such deprivation. Interpretation of a beneficial
legislation with a narrow pedantic approach is not justified. I n
case there is any doubt, the court should interpret a benefic ial
legislation in favour of the beneficiaries and not otherwi se as it
would be against the legislative intent. For the pu rpose of
interpretation of a statute, the Act is to be read in its entirety. The
purport and object of the Act must be given its full effec t by
applying the principles of purposive construction. The court must
be strong against any construction which tends to reduce a statute’s
utility. The provisions of the statute must be construed so as to
make it effective and operative and to further the ends of justice
and not to frustrate the same. The court has the duty to construe
1195
the statute to promote the object of the statute and ser ve the
purpose for which it has been enacted and should not efface i ts
very purpose.
xxx xxx xxx
41. There can be no doubt that once a protected tenant gets a
certificate of ownership under Section 38-E(2) of the 1950 Act,
he has a right to apply for restoration of possession to him if he
has been dispossessed. The protected tenant has a right to a sk
for summary eviction of a trespasser.”
29. This Court in Boddam approved a Full Bench Judgment of
the High Court in Sada. In Boddam, an application was filed claiming
protected tenancy under Section 37-A of the Tenancy Act in the ye ar
1998. On 16.12.1998, for the first time, it was alleged that the appellant
was reflected as cultivating tenant in the Khasra Pahani for the year
1954-1955 for three years. The sale deed was executed in his favor by
the owner on 23.11.1959 after permission was granted to his vendor
under Sections 47 and 48 of the Tenancy Act. Bala, the paternal Uncle
of the appellant had not claimed protected tenancy rights during his
lifetime as he died in the year 1975. Even his legal representatives did
not claim protected tenancy. It was only in 1998 that protected tenancy
was sought and the ownership certificate under Section 38-E of the
Tenancy Act was claimed after more than 40 years. This Court held as
under:
“13. …A person becomes a protected tenant when he is a holder
on the dates or for the periods mentioned in Sections 35, 37 and
37-A. Once a person becomes a protected tenant, he is entitled to
an ownership certificate under Section 38-E. In Sada [AIR 1988
AP 77 : (1987) 2 An LT 749 (FB)] the Full Bench of the Andhra
Pradesh High Court held that a person “holds” the l and as
protected tenant if he is still a protected tenant on the notified
date i.e. 1-1-1973, though out of possession. As long as his right
as protected tenant has not been determined by the d ate of
notification in a manner known to the Act, he holds the land as a
protected tenant, whether physically in possession or not. For the
vesting of ownership of land held by a protected tenant under
Section 38-E, it is not necessary that the protected tenant should
be in physical possession on 1-1-1973. It is suffic ient if
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
he continues to hold the status of a protected tenant on the notified
date, even if he is not in physical possession. The Act doe s not
merely regulate the relationship of landlord and tenant but deals
with the alienation of agricultural land and includes transfer of the
landholder’s interest to the protected tenants. Therefore, the grant
of pattedari (ownership rights) also finds place in the Act.”
30. This Court in Bal Reddy quoted with approval the Full Bench
judgment in Sada as well as the earlier judgment of this Court in Kotaiah
to hold that protected tenancy could be terminated only in a m anner
known to law. In the absence of such valid termination of ‘pro tected
tenancy’, the interest of such protected tenant continues to be operative
and subsisting in law and could devolve on his lega l heirs and
representatives who could then claim restoration of possession. As laid
down in Sada, even if the protected tenant had lost possession, without
there being valid termination of his status as a protected tenant, he would
still be entitled to all incidents of protection under the Act.
31. We shall now examine the respective contentions of the parties
in view of the law laid down and also the judgment of the High Court in
Sada which has stood the test of time for last more than 30 years. The
scheme of the Act contained in Chapter IV of the Tenancy Act in respect
of protected tenant is materially different from that of tenants governed
by Chapter III of the Tenancy Act. The protected tenants are placed at
much higher pedestal as even if a protected tenant is not in possession
of the land, right has been given to him to seek possession later. Therefore,
neither Section 19 nor Section 32 forming part of Chapter I II of the
Tenancy Act are applicable in respect of protected tenant except when
the reference is made to the provisions of Section 19 on t he basis of
Section 38-E(5) which starts with a non obstante clause giving overriding
effect to anything contained in Section 38-E. Such clause mandates the
Collector to hold an enquiry suo motu to ascertain the genuineness of
the surrender of right made by the protected tenant. This exerc ise had
to be done before the surrender of tenancy rights and not subsequently
after many years of alleged surrender on the streng th of unequal
bargaining power with the tenant who survives on the basis of agriculture
activities.
32. The purchasers relied upon an oral surrender of tenancy rights
in the year 1954 and later by a written document of 5.2.1957 . The
execution of the document in the year 1957 unequivocally proves the
1197
factum of protected tenancy of the respondents herein. Such surrender
is contrary to Section 47 of the Tenancy Act prior to its omission by AP
Act No. 12 of 1969 and in contravention of Section 38-E(5) read wit h
Section 19(1)(a) of the Tenancy Act.
33. A protected tenant is entitled to recover possession in t erms
of Section 36 as well as Section 44 of the Tenancy Act which prohibits
the termination of protected tenancy. The proviso to sub-section (1) of
Section 44 of the Tenancy Act puts complete embargo on a land holder
to exercise the right of resumption unless he has within a period of
eighteen months from the commencement of the said A ct sought
reservation of land to exercise his right or resumption in t erms of the
commencement of Hyderabad Tenancy and Agricultural Lands
(Amendment) Act, 1955. The Deputy Collector in terms of th e said
provision had to make a necessary enquiry and issue a certi ficate that
the land has been so reserved. Thus, the land holder had no rig ht to
terminate the tenancy after the commencement of Amending Act, 1955
except after an enquiry which was to be conducted by t he Deputy
Collector. No such reservation had been made nor any enquiry was
conducted, therefore, the rights of protected tenant cannot be defeated.
34. The purchasers have relied upon the oral surrender of protected
tenancy in the year 1954. Such surrender of oral tenancy of a protected
tenant is not permissible under the Tenancy Act except in the m anner
which is prescribed under Section 38-E (5) read with Section 19 of the
Tenancy Act. Still further, the protected tenant has a right to seek
possession in terms of Section 36 of the Tenancy Act. Even in terms of
Section 38-D, if the land holder intends to sell the land whi ch is in
possession of a protected tenant, he has to give a notice in writing of his
intention to such protected tenant.
35. Section 38-E contemplates that on grant of certific ate of
ownership under Section 38-E, the protected tenants shall be deemed
to be the full owners of such land. Further, explanation provided under
Section 38-E(1) provides that if a protected tenant has been dispossessed
otherwise than in the manner and by the order of the Tahsildar as provided
in Section 32, then notwithstanding any judgment, decree or order of any
Court, or the order of the Board of Revenue or Tribunal shall be deemed
to be holding the land on the date of notification. The Tahsildar is under
an obligation to either suo motu or in furtherance of an application by
the protected tenant, to hold a summary enquiry and direct taking of land
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
in possession of the land holder or any other person claiming through or
under him. The possession from a protected tenant can be taken only if
the surrender of tenancy is approved by the Revenue Divisional Officer.
The land owner is liable to restore possession in terms of Section 46 of
the Act if he has failed to cultivate the land personally within one year.
Therefore, there is an embargo on the surrender of tenancy rights by
protected tenant and even if the tenancy is terminated, the land holder is
personally liable to restore possession to the tenant, if he fails to cultivate
the land within one year of termination of tenancy.
36. Once a certificate of ownership is granted which is required
to be published in the Government Gazette, the land stands transferred
and vested in the protected tenant as a full owner of such land. Such
certificate is final subject to the rights of the landowner under the Tenancy
Act which is only to seek compensation.
37. The judgments referred to by the learned counsels for the
appellants are not applicable to the facts of the present case. S. Rangaiah
was a case of kabiz-e-kadim, which means an old occupier, who is neither
a tenant nor a protected tenant. Such kabiz-e-kadim was granted
protected tenancy status after the land got vested with the Government
on 20.7.1955. The Bench noticed that even after vesting of Inam, a
protected tenant would continue to have tenancy rights and would have
the disability to enter into the agreement of sale on 22.1.1965 in favor of
the respondents. The present matter is not a case of transfer of rights by
or on behalf of the protected tenant. The entire argument is based upon
the fact of oral surrender and subsequent filing and withdrawal of appeal
in the year 1989 and of filing a belated appeal against the ownership
certificate in the year 2015. The fact of filing of an a ppeal and its
withdrawal was not raised in the first instance by the purch asers in
proceedings before the Joint Collector or before the High Court. Since
such documents were not produced at the earliest opportunity, and the
veracity of such documents is not beyond doubt, there cannot be any
attribution of knowledge of the grant of Occupancy Rights Certificate to
the purchasers. It is strange that the appeal was withdrawn on 14.2.1989
but Section 19 petition was dismissed on the basis of alleged withdrawal
of appeal on 31.1.1989. The High Court has held that the interest of the
protected tenant cannot be validly conveyed in law in view of Section 30
of the Tenancy Act.
1199
38. In the present case, the surrender of tenancy rights is be fore
the Mandal Revenue Officer on 31.1.1989, whereas as per the proviso
to Section 19(1)(a) of the Tenancy Act, a tenant can surrender his rights
at least a month before the commencement of the year and that surrender
is to be made by the tenant in writing. Such surrender is to be admitted
by him before the Tehsildar and the authority is to satisfy i tself that
surrender is made in good faith. In the present case, the oral surrender
by the protected tenant is set up in the year 1954. Such surrender is
followed by sale of tenancy rights in the year 1957. Thereafter, the petition
under Section 19 of the Tenancy Act was filed to seek approval of the
Tenancy rights, such application was withdrawn on the basis of an order
withdrawing the appeal against the grant of occupancy rights. This shows
that the purchasers have taken steps to procure surrende r of tenancy
rights, realizing that such surrender cannot be orally or by executing a
sale deed. It was a cover up operation initiated by the purchaser but the
same was still against the mandate of the statute as the finding of the
surrender has to be recorded by the Tehsildar. Since, neithe r the oral
surrender nor surrender in writing was recorded as bonafide by the
Tehsildar, the subsequent surrender approved by the Mandal Revenue
Officer is a nullity and bears no legal effect as such sur render is in
contravention of the statutory provisions. The protected tena nt was
conferred ownership rights under Section 38-E of the Tenancy Act on
23.3.1975 whereas the conferment of occupancy rights were granted in
the year 1982 under the Inams Act.
39. In S. Veera Reddy, the appellants were transferees of the
protected tenant who sought declaration. The appellants reli ed upon a
document dated 8.2.1963 by which the protected tenant was sai d to
have transferred possession in their favor. On the other hand, one Sattaiah
claimed possession after alleged surrender of tenancy r ights by the
protected tenant. The appellants filed a suit claiming declaration of title
and perpetual injunction. It was also a case where plaintiffs and
defendants applied for occupancy rights under the Inams Ac t. In fact,
Section 38-E came to be inserted in the year 1971 after the filing of the
suit by the appellants.
40. Bhimavarapu Venkaiah is a case of transfer of Inam land
wherein occupancy rights were claimed and the matter was remitted to
the Revenue Divisional Officer to consider the application of the first
petitioner for the grant of occupancy rights. S. Narasimha was also a
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
case of claim of grant of Occupancy Rights Certificate. There is however
no claim of grant of ownership rights as a protected tenant and interplay
between the Tenancy Act or the Inams Act.
41. In the judgment of this Court in Ponnala Narsing Rao, theory
of oral surrender of protected tenancy rights prior to 1954 was disbelieved.
It was held that the application under Section 32 of the Tena ncy Act
was filed after an unreasonable delay. Such judgment has been followed
by the Andhra Pradesh High Court in Vorla Ramachandra Reddy.
42. We do not find that such judgments provide assistance to the
arguments raised by the learned counsel for the appellants. Firstly, the
application was treated to be one under Section 32 of the Tenancy Act.
Section 32 falls in Chapter III of the Act dealing with the rights of the
tenants whereas the rights of protected tenants are gove rned under
Chapter IV. Section 32 is not applicable stricto sensu except to the
limited extent as mentioned in the explanation to Section 38-E (1) of the
Tenancy Act. Therefore, judgments in Ponnala Narsing Rao orVorla
Ramachandra Reddy are not applicable to the facts of the present
case. Sub-section (5) of Section 38-E provides for an enquiry to ascertain
the genuineness of surrender of the right by the protected tenant under
clause (a) of sub-section (1) of Section 19. There is no prov ision in
Chapter IV of the Tenancy Act to surrender protected tenancy rights.
However, if an application is made under Section 19(1) of the Tenancy
Act, the genuineness of such surrender is required to be ascertained by
the Collector.
43. The judgment in Boddam Narsimha is not helpful to the
arguments raised by Mr. Dave as it is not a case of protected tenant on
the dates mentioned in Sections 35, 37 and 37-A.
44. The order of the learned Single Bench in Jupudi Bhushanam
is to the effect that once certificate under Section 38-E is grant ed, and
subsequently he has been dispossessed, he has the right to seek remedy
from the Civil Court. The High Court has failed to notic e that the
explanation in sub-section (1) of Section 38-E of the T enancy Act
specifically provides that if a protected tenant, on account of his being
dispossessed otherwise than in the manner and by order of the Tahsildar
as provided in Section 32, is not in possession of the land on the date of
the notification issued under sub-section (1), then, the Tahsildar shall
notwithstanding anything contained in the said Section 32, eithe r suo
1201
motu or on the application of the protected tenant hold a summary enquiry,
and direct that such land in possession of the land holder or any person
claiming through or under him in that area, shall be taken f rom such
possession thereof and shall be restored to the protected tenant.
45. In the judgment of Kasa Muthanna, the plaintiff was relying
upon a certificate under Section 38 of the Tenancy Act wherea s the
defendant was relying upon a sale which was void in terms of Section
38 of the Tenancy Act. The High Court was examining in second appeal
filed by the defendant, when the certificate under Section 38-E was
granted to the plaintiff or their predecessors. In the afores aid case, a
certificate issued under section 38-E had become final and binding for
not being challenged as per the procedure established by law. The Court
held that the revenue entries made ignoring the 38-E certificate are illegal
and that when once the title is established and the defendants had failed
to prove adverse possession or any other right to remain in possession,
the plaintiffs are entitled to the relief of recovery possession.
46. In the judgment reported as J. Narayana & Ors. v. Jainapally
Pedda Kistaiah and Ors 20, the question examined was whether the
appellants are the protected tenants or owners under Section 38-E of
the Tenancy Act. The High Court held as under:
“16. From a perusal of the above, it is clear that it is only after the
certificate is issued under sub-section (2), that t he rights of
ownership stand conferred upon a protected tenant. An other
important aspect is that even where a certificate is issued, it must
be followed by determination of the amount to be paid to the land
owner and actual payment thereof. The default in payment of
price in its entirety or portion thereof would lead to annulment of
the ownership.
17. In the instant case the appellants were not issued any certificate
of ownership at all. They did not even produce any deed of lease,
which contains their names. It was not even pleaded that t he
price for the land was determined and the same was paid as
provided under sub-section (3) of Sec.38-E of the Tenancy Act.
xxx xxx xxx
20 2013 SCC OnLine AP 289
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
22. It is important to note that if a P.T. or his successor s are
dispossessed from the land, they can seek the relief of rec overy
of possession under Section 32 of the Tenancy Act by filin g
application before the Tahsildar. As a matter fact, they fil ed an
application under Sec. 32 of the Tenancy Act way back in t he
year 1988 for recovery of possession against the Respondents.
That, however, was after the lands were acquired and Notification
under Sec.4 (1) of the Act was published. Till today no order s
have been passed thereon. The result is that the Respondents are
undisputedly in possession of the land and in contrast the appellants
were never in possession of the same, till it was acqui red. The
Point No.2 is answered accordingly.”
47. The appeals allegedly filed by the protected tenant against the
grant of occupancy rights certificate and subsequently being withdrawn
is wholly inconsequential as after the grant of ownership certificate in
terms of Section 38-E of the Tenancy Act, the protected tena nts are
deemed to be owners. Once the protected tenants are deemed to be
owners, there could not be any occupancy rights certificate as the
purchasers were divested of their ownership by virtue o f the grant of
ownership certificate under Section 38-E of the Tenancy Act. Such
certificate was also not disputed by the purchasers. Theref ore, title of
the protected tenants is complete and the ownership unambiguously vests
with them.
48. Now we shall examine the occupancy rights certificate granted
to the purchasers in the year 1982. There was no right with the purchaser
to claim occupancy rights on the basis of possession sinc e 1.11.1973
upon surrender of protected tenancy rights. If the surrender of protected
tenancy rights is not in accordance with the mandate of the statute, the
possession from 1.11.1973 would be inconsequential as such possession
would not affect the rights of the protected tenant who is entitle d to
statutory protection. In fact, the grant of Certificate unequivocally
transfers ownership rights to the protected tenant.
49. The Inams Act is a subsequent statute than the Tenancy Act.
Section 33 of the Inams Act is to the effect that nothing in the Act shall
in any way be deemed to affect the application of the provisions of the
Tenancy Act to any inam or mutual rights and obligations of I namdar
1203
and his tenants, save insofar as the said provisions are in any way
inconsistent with the express provisions of this Act. Section 38-E (1) of
the Tenancy Act, as substituted in the year 1971, starts wit h a non-
obstante clause giving overriding effect to any other la w for the time
being in force. Such sub-clause will include the Inams Act and that Inams
Act will not be operative in the case of Section 38-E (1) of the Tenancy
Act. This notification was issued on 1.1.1973 to cover the entire Telangana
Area of the State. Both the Inams Act and the Tenancy Act are enacted
by the same Legislature. The Inams Act is a later Act ena cted in the
year 1955 but Section 38-E (1) was substituted in the year 1971 which
starts with a non-obstante clause. Therefore, owners hip certificate
granted under the Tenancy Act would prevail over the grant of occupancy
rights certificate under the Inams Act. Both the Acts operate in different
spheres. Inams Act deals with the land owner, whereas the Tenancy
Act protects the rights of the tiller i.e., tenant including a protected tenant.
In terms of Section 3(2)(b) of the Inams Act, all rights, title and interests
vesting in the Inamdar including the protected tenant shall cease and be
vested absolutely in the State, free from all encumbrances. Section 7 of
the Inams Act deals with the right of a protected tenant to be registered
as an occupant of such inam lands in his possession as may be left over
after the allotment under Section 4. Section 38-E of the Te nancy Act
was inserted initially in the year 1954 and subsequently s ubstituted in
1971 giving overriding effect to such provision. Therefore, an Inamdar
under the Inams Act would not have any right of allotment of occupancy
rights in view of overriding effect given to Section 38-E.
50. However, ownership rights were granted to the protected
tenant in respect of land measuring 19 acres and 16 guntas wherea s
occupancy rights have been granted in respect of the land meas uring
31.05 guntas including of land falling in Survey Nos. 61 and 62 in Village
Jeedimetla on 19.2.1982. Therefore, the said occupancy rights certificate
in favor of the purchaser shall be valid in respect of the land falling
under Survey Nos. 61 and 62, which is not the land claimed by t he
protected tenant as part of their tenancy. The Occu pancy Rights
Certificate in respect of land falling in Survey Nos. 53, 54, 55 and 56 is
null and void and inoperative.
THOTA SRIDHAR REDDY & ORS. v. MANDALA
RAMULAMMA & ORS. [HEMANT GUPTA, J.]
51. The protected tenant shall be entitled to resto ration of
possession in terms of explanation to Section 38-E (1) read with Section
32 of the Tenancy Act. The Tehsildar to ensure that the poss ession is
delivered to the protected tenant within 3 months.
52. Thus, the present appeals are dismissed except to the exte nt
of land falling in Survey Nos. 61 and 62 in respect of which the occupancy
certificate granted to the purchasers on 19.2.1982 would be valid.
Divya Pandey Appeals dismissed.