TMI Blog2005 (7) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... while granting title to the lessees, can impose any conditions which are permissible under law. The land is being given to lessees either free of cost or at a price which is less than the full market price. It is not an outright sale made by the Government for full consideration. In all these cases, lands were given almost free of cost. The upset price of the land was either fixed at ₹ 200-250 per acre and this ₹ 200 itself was waived and the grantee was to remit only ₹ 50 per acre. Grantee was to execute Saguvali Chit and it incorporated a condition prohibiting alienation for a period of 15 years. The history of the legislation also would show that the State of Karnataka has all along been giving lands to the landless persons belonging to Scheduled Castes and Scheduled Tribes subject to the restriction on alienation of such land. It is also pertinent to note that the prohibition regarding alienation is a restrictive covenant binding on the grantee. The grantee is not challenging that condition. In all these proceedings, challenge is made by the third party who purchased the land from the grantee. The third party is not entitled to say that the conditions imposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ENKATARAMA REDDI, JJ. For the Appellant : S.K. Kulkarni and M. Gireesh Kumar, Advs. for Sangeeta Kumar, Adv S.R. Hedge, Arvind Verma and Satya Mitra, Advs For the Respondent : None JUDGMENT K.G. Balakrishnan, J. 1. All these appeals have been filed against the common Judgment passed by the Full Bench of the Karnataka High Court in five Writ Appeals. 2. Under the Mysore Land Revenue (Amendment Rules), 1960 [hereinafter being referred to as Rules of 1960 ], certain lands were granted to members of Scheduled Castes and Scheduled Tribes. Initially, these lands were given to them on temporary lease and later by virtue of Rule 43-J of Rules of 1960, these lands were given to them permanently with a restriction that the grantees shall not alienate these lands to third parties for a period of 15 years. These lands were granted to them during the period 1959-65. The Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer of Certain Lands), Act, 1978 [hereinafter being referred to as Act 2 of 1979 ] came into force on 1.1.1979. Section 4 of this Act is to the effect that any transfer of granted land made either before or after the commencement of the Act, in contravention of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 43-J of Rules of 1960 and as it is not specifically provided under Rule 43-J that there shall be any restriction on alienation, the restriction imposed was not valid or enforceable. The Division Bench of the High Court thought it fit to refer the matter to the Full Bench as certain conflicting opinions were expressed by different Benches of the same High Court. The relevant portion of the reference order was to the following effect:- One of the important questions that arises for consideration in these Writ Appeals is as to whether an Authority granting land under Rule 43-J of Mysore Land Revenue (Amendment) Rules, 1960 can impose any condition at the time of making grant that the grantee, shall not alienate the land for a period of 15 years when Rule 43-J do not provide for any such condition. A further question also arises on the effect of a condition imposed in the Saguvali chit by the Tahsildar that the grantee shall not alienate the land for a period of 15 years when such condition was not imposed by the order of the Authority making the grant. 4. The Full Bench held that in all these cases the lands were allotted under Rule 43-J and, therefore, there should not have been an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of land available for disposal in a village is more than ten acres, a minimum of ten acres shall be reserved for grant to applicants belonging to Scheduled Castes and Scheduled Tribes. Rule 43-F prescribes the order of priority and the extent of land to be granted. Marginal note to Rule 43-G says that the grant of land under the preceding rules shall be subject to certain conditions. Section 43-G reads as follows:- 43-G Grant of lands under the preceding rules shall be subject to the following conditions. (1) In the case of grant of lands to applicants belonging to the Scheduled Castes and Scheduled Tribes, and to other applicants, who are unable to pay the occupancy price on account of poverty, the occupancy price may be waived up to rupees two hundred and the balance recovered in three annual instalments. (2) In the case of grant of land to applicants who are ex- servicemen the occupancy price shall be waived up to the extent awarded by Government under the Military Concession Rules. (3) In the case of grant of land free of occupancy price, the grant shall be subject to the condition that the grantee shall pay contribution or betterment levy in respect of the land and the val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue (Amendment) Rules, 1960, if such land is available for disposal and if the conditions of the lease have been complied with, the land may be granted to the lessee. 8. The finding of the Full Bench of the Karnataka High Court is that if the grant is made under Rule 43-J, there could not have been any condition restricting the alienation and if at all there were any such conditions they are null and void. This view has been taken for the reason that conditions restricting alienations are given under clause (4) of Rule 43-G and these provisions would apply to grant of lands made under the preceding rules and not apply to Rule 43-J which comes after Rule 43-G of the Rules of 1960. This view has been taken based on the title/marginal note of Rule 43-G. The Full Bench was also of the view that under Rule 43-J, it is not stated that there shall be any conditions prohibiting alienation. Therefore, the court held that authorities were not empowered to impose any such conditions. 9. A careful scrutiny of the entire scheme of the rules relating to grant of lease to landless persons would show that the finding of the Full Bench on this issue is legally not sustainable. First of all, Rule 43 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r rule. The side notes are not considered as part of the Act. Lord Macnaghten in a case decided by the Privy Council held that the marginal notes cannot be referred to for the purpose of construction. Lord Reid in Chandler Vs. D.P.P. [1964] A.C. 763 said: In my view, side notes cannot be used as an aid to construction. They are mere catchwords and I have never heard that an amendment to alter a side note could be proposed in either House .So side notes cannot be said to be enacted in the same sense as the long title or any part of the body of the Act. 12. When the rule itself says that where the grant is made free of cost or at a price which is less than the full market value, such grant shall be subject to the condition that the land shall not be alienated for a period of 15 years from the date of the grantee taking possession of the land after the grant, such conditions could be imposed on any grant made to the party. 13. In any case, the High Court failed to take into account the clear language employed in Section 4, according to which any transfer of granted land made either before or after the commencement of this Act 'in contravention of the terms of the grant of such lan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsfer of the same. The condition regarding the prohibition on transfer of such granted lands for a specified period, was imposed by virtue of the specific term in the grant itself or by reason of any law, rule or regulation governing such grant. It was undoubtedly open to the grantor at the time of granting lands to the original grantees to stipulate such a condition the condition being a term of the grant itself, and the condition was imposed in the interests of the grantee. Except on the basis of such a condition the grantor might not have made any such grant at all. The condition imposed against the transfer for a particular period of such granted lands which were granted essentially for the benefit of the grantees cannot be said to constitute any unreasonable restriction. The granted lands were not in the nature of properties acquired and held by the grantees in the sense of acquisition, or holding of property within the meaning of Article 19(1) (f) of the Constitution. It was a case of a grant by the owner of the land to the grantee for the possession and enjoyment of the granted lands by the grantees and the prohibition on transfer of such granted lands for the specified peri ..... 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