TMI Blog2008 (2) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... when considering the question of surplus land under the Ceiling Act? - C.A. 4420 OF 2004 - - - Dated:- 5-2-2008 - R.V. RAVEENDRAN PANTA, LOKESHWAR SINGH,JJ. JUDGMENT: This appeal by special leave, against the judgment dated 4.3.2003 passed by the Gujarat High Court in L.P.A. No.123 of 2000, relates to the interpretation of the word 'person' in the Gujarat Agricultural Lands Ceiling Act, 1960 ('Ceiling Act' for short). The Facts : 2. The five appellants along with their respective spouses purchased 172 acres and 36 guntas of agricultural land in Madheli village under four sale deeds dated 14.11.1970 (128A, 26G), 29.4.1971 (26A, 37G), 23.6.1971 (10A, 14G) and 18.12.1971 (6A, 39G) for a total consideration of ₹ 46,300/-. Before such purchase, the ten purchasers entered into an agreement dated 15.9.1969 proposing to purchase about 175 acres of land in their joint names and recording the conditions subject to which they proposed to purchase such land. The reason stated in the agreement for the joint purchase, was to avoid each of them having to individually negotiate and enter into separate agreements with several owners of the lands. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agricultural land together, had to be treated as 'a person' under the Act and therefore they could jointly hold only one unit (36 Acres) in view of the provision of section 6(1) of the Ceiling Act. As a consequence, he determined the surplus land as 145 A, 31G and directed the Mamlatdar to obtain selection of the land to be surrendered. The said order was challenged by the appellants before the Gujarat Revenue Tribunal, by invoking its revisional jurisdiction. The Tribunal, by its judgment dated 29.12.1987, upheld the decision of the Deputy Collector, by applying the definition of 'person' in the Bombay General Clauses Act, 1904, to the word 'person' in the Ceiling Act. 6. The appellants challenged the order of the Tribunal before the Gujarat High Court. A learned Single Judge by order dated 30.12.1999 allowed the petition and remanded the matter to the Revenue Tribunal to decide whether the definition of 'person' in the Bombay General Clauses Act, 1904 ('General Clauses Act' for short) could be imported into the definition of a 'person' under the Ceiling Act. The appellants challenged the order of the learned Single Judge in appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant should be added to his holding for the purpose of considering whether he held any surplus land. In other words, each couple (each of the five appellants with his wife) was a 'person' entitled to hold one unit (36 acres); and therefore, the decision of the Mamlatdar that the appellants were entitled to hold five units (180 acres) and only the land in excess of five units was surplus land was in accordance with law. 8. On the other hand, the respondent State contended that the definition of 'person' in the GC Act will have to be read into the definition of 'person' in section 2(21) of the Ceiling Act and therefore any 'association of persons' or 'body of individuals' will have to be treated as a person. It is submitted that when the five appellants and their respective spouses joined together to purchase 172 acres 36 guntas of land, they constituted an 'association of persons' or 'body of individuals' and therefore, the purchase by the ten purchasers was a purchase by a 'person' and the ten co-owners as a 'person' were entitled to hold only one unit (36 acres of 'C' class land). 8.1) The resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it would not affect the calculation of surplus land, as each co-owner was a 'person' and each family (husband and wife) will be entitled to one unit. In regard to contention based on section 63 of the Tenancy Act, it was submitted that while determining the surplus land under the provisions of the Ceiling Act, there was no question of holding any enquiry under section 63 of Tenancy Act. And at all events, even if the question as to whether the purchasers were agriculturists or not, has to be gone into, the same being a question of fact that will have to be decided by a separate inquiry under the Tenancy Act and not in the proceedings under the Ceiling Act. 10. On the contentions raised, the following questions arise for our consideration : (i) Whether the definition of 'person' in the Gujarat Agricultural Lands Ceiling Act, 1960, includes a body of individuals/association of persons ? (ii) Whether co-ownership, per se, is an 'association of persons/body of individuals' and therefore, constitutes a 'person'? (iii) Whether the ten purchasers, who became co-owners of the land, together constitute a 'body of individuals/association of per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (or more than one spouse) and their minor sons and minor unmarried daughters, irrespective of whether the family also includes any major son, land is also separately held by such individual's spouse or minor children, then the lands held by the individual and the said members of the individual's family excluding the major sons, if any, shall be grouped together for the purposes of the Act and the provisions of the Act shall apply to the total land so grouped together as if such land had been held by one person. xxxxxxx (3B) Where a family or a joint family consist of more than five members comprising a person and other members belonging to all or any of the following categories, namely : (i) minor son, (ii) widow of a pre-deceased son, (iii) minor son or unmarried daughter of a pre-deceased son, where his or her mother is dead, such family shall be entitled to hold land in excess of the ceiling area to the extent of one fifth of the ceiling area for each member in excess of five, so however that the total holding of the family does not exceed twice the ceiling area; and in such a case, in relation to the holding of such family, such area shall be deemed to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicable in Gujarat bars transfer to non-agriculturists. Sub-section (1) of section 63 provides that save as otherwise provided in the Act, no sale shall be valid in favour of a person - (i) who is not an agriculturist, or (ii) who being an agriculturist cultivates lands not less than ceiling area, or (iii) who is not an agricultural labour. The first proviso to sub-section (1) provides that the Collector (or an officer authorized by the State Government) may grant permission for such sale, but the second proviso to sub-section (1) provides that no such permission shall be granted where the land is being sold to a person who is not an agriculturist for agricultural purpose, if the annual income of such person from other sources exceeds Rupees five thousand. Question (i) who is a 'person' ? 14. The extent of land that could be held by the appellants depends upon the interpretation of the word 'person' in section 6(1) of the Ceiling Act which provides that no person shall be entitled to hold land in excess of the ceiling area . If the ten co-owners are considered as an 'association of persons' or 'body of individuals', and consequently as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dividuals whether incorporated or not. The said general legal definition is, however, either modified or restricted or expanded in different statutes with reference to the object of the enactment or the context in which it is used. For instance, the definition of the word 'person' in Income Tax Act, is very wide and includes an individual, a Hindu Undivided Family, a company, a firm, an association of persons or body of individuals whether incorporated or not, a local authority and every other artificial juridical person. At the other extreme is the Citizenship Act, section 2(f) of which reads thus : Person does not include any company or association or body of individuals whether incorporated or not. Similarly, the definition under Section 2(g) of Representation of People Act 1950, is person does not include a body of persons. 17. Both definitions of the word 'person', in General Clauses Act and Ceiling Act, are inclusive definitions. The inclusive definition of 'person' in General Clauses Act applies to all Gujarat Act unless there is anything repugnant in the subject or the context. The inclusive definition of 'person' in section 2(21) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;person'. In that context this Court observed that the term 'person' is not, strictly speaking, defined in the Act, and the definition merely clarified that the term includes a joint family and did not exclude an individual from being a person in the eye of law. This Court observed that the term 'person' for the purposes of Ceiling Act would include individuals as natural persons as well as group or body of individuals as artificial persons, as also a joint family and a family. This Court proceeded to explain section 6(2) thus: We do not find any fixed concept of person anywhere. No doubt the concept is wide so that it could be contended that it should not be narrowed down or confined. But does Section 6(2) do that? Section 6(2) does not either disable a husband or wife from owning or holding their separate properties separately. It does not merge or destroy their separate legal personalities. It requires their separate holdings to be grouped together as though they were held by one person only for the purpose of determining the ceiling limit for each member of a family. It may indirectly have the effect of disabling a member of a family from holding la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... co-ownership has been dissolved into sole ownership by the process known as partition. Co- ownership involves the undivided integrity of what is owned. 20. The terms 'association of persons' and 'body of individuals' (which are interchangeable) have a legal connotation and refer to an entity having rights and duties. They are not to be understood literally. For example, if half a dozen people are travelling in a car or a boat, or standing in a bus stop, they may be a group of persons or a 'body of individuals' in the literal sense. But they are not an association of persons/body of individuals in the legal sense. When a calamity occurs or a disaster strikes, and a band of volunteers or doctors meet at the site and associate or co-operate with each other for providing relief to victims, and not doing anything for their own benefit, they may literally be an association of persons, but they are not 'an association of persons/body of individuals' in the legal sense. A mere combination of persons or coming together of persons without anything more, without any intention to have a joint venture or carry on some common activity with a common understand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ective apartment and joint ownership of common areas, the co-owners of the plot of land, do not become an 'association of persons/body of individuals', in the absence of a deeming provision in a statute or an agreement. Similarly, when two or more persons merely purchase a property, under a common sale deed, without any agreement to have a common or joint venture, they will not become an 'association of persons/body of individuals'. Mere purchase under a common deed without anything more, will not convert a co-ownership into a joint enterprise. Thus when there are ten co-owners of a property, they are ten persons and not a 'body of individuals' to be treated as a 'single person'. But if the co-owners proceed further and enter into an arrangement or agreement to have a joint enterprise or venture to produce a common result for their benefit, then the co-owners may answer the definition of a 'person'. Question (iii) - Whether the ten purchasers constitute a 'person'? 22. We will now examine whether a group of individuals purchasing agricultural land jointly as co-owners, not with the intention of retaining the property in co-owner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sers as an 'association of persons/body of individuals' nor is it permissible to treat them as a single 'person', thereby restricting their entitlement to hold land to only one unit, even though there are ten purchasers. 24. The Tribunal and the High Court were right in holding that the word 'person' in the Ceiling Act includes an 'association of persons/body of individuals'. But they were not justified in treating the co-owners as an 'association of persons', or in holding that the ten co-owners will be entitled to own only one unit. Having regard to section 6(2) of the Act, the share of each couple (husband and wife) in the land, plus any other land individually held by them will have to calculated to find out whether they held any land in excess of the ceiling limit. Therefore the share of each appellant in the lands jointly purchased, with the addition of the lands held by his spouse, and addition of any other land held by them, will give the basis for determining the surplus land. For example, if a husband's share as co-owner is 20 acres and wife's share as co-owner is 20 acres, and their other individual holding is another 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding. Thereafter, the holdings of the person with that of his spouse and minor sons and unmarried daughter will have to be aggregated to determine the surplus. Question (v) - What requires to be done? 27. The Mamlatdar will have to decide the matter by holding an enquiry under section 21 of the Ceiling Act keeping in view the principles laid down in sections 6 to 8 of the Ceiling Act. Further section 63 of the Tenancy Act also has to be kept in view while examining the claim of co-owners. If the sale was effected jointly in the name of ten persons to enable some non- agriculturists who were barred from buying agricultural land, to buy agricultural land by joining some agriculturists as co-purchasers, the sale to the extent it is in favour of non-agriculturists will not be valid and the consequences on account of sale not being valid for violation of section 63 of Tenancy Act will follow as provided in section 84C of that Act. For example if ten purchasers purchase hundred acres of land with equal shares, and six of them are non-agriculturists, then the sale in respect of the six non- agriculturists (to an extent of 60 acres) will not be valid and such land purchased by non-ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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