As per case facts, one Bahadur filed an application under Section 170-B of the Madhya Pradesh/Chhattisgarh Land Revenue Code, 1959, alleging that land belonging to his Scheduled Tribe father was ...
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CGHC010089462022 2026:CGHC:32781
NAFR
HIGH COURT OF CHHATTISGARH AT BILASPUR
WPC No. 1365 of 2022
Order Reserved on: 15.6.2026
Order Delivered on: 30.7.2026
1 - Hukum Sai Rajwar S/o Mohan Rajwar Aged About 80 Years R/o
Village Kunjnagar, Tahsil Surajpur, District Sarguja Chhattisgarh.
... Petitioner(s)
versus
1 - Sub Divisional Officer Surajpur, District Sarguja Chhattisgarh.
2 - The Collector Sarguja, Ambikapur Chhattisgarh.
3 - The Commissioner Sarguja Division, Ambikapur Chhattisgarh.
4 - Samudri W/o Bahadur Bhima R/o Village Karampur, Tahsil Surajpur,
District Surajpur Chhattisgarh.
5 - Lakhan S/o Bahadur Bhima R/o Village Karampur, Tahsil Surajpur,
District Surajpur Chhattisgarh.
6 - Madan S/o Bahadur Bhima R/o Village Karampur, Tahsil Surajpur,
District Surajpur Chhattisgarh.
7 - Vijay S/o Bahadur Bhima R/o Village Karampur, Tahsil Surajpur,
District Surajpur Chhattisgarh.
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... Respondent(s)
For Petitioner(s) :Mr. Somnath Verma, Advocate.
For Respondent(s)/State :Mr. Soumitra Kesharwani, Panel
Lawyer.
For Respondents No. 4 to 7:Ms. Ankita Goswami, Advocate on
behalf of Mr. Pushpendra Kumar
Patel, Advocate.
Hon’ble Mr. Justice Amitendra Kishore Prasad
C A V Order
1.By way of this petition, the petitioner has prayed for following
reliefs:-
“10.1. that, the Hon'ble Court may kindly be pleased to
issue appropriate writ quashing the order impugned (ann.
P/6) dated 14.12.2021 passed by the Commissioner.”
2.Brief facts of the case, is that, one Bahadur had filed an
application under Section 170-B of the Madhya
Pradesh/Chhattisgarh Land Revenue Code, 1959, before the Sub-
Divisional Officer (Revenue), Surajpur, inter alia, stating that he
belongs to the Bhima caste, which is a Scheduled Tribe, and that
the lands bearing various Khasra numbers, as detailed in
Schedule-A to the application, situated at Village Karampur,
Revenue Circle Pilkha, District Surajpur, originally belonged to his
father, namely, Sundar Sai, and were settled and recorded in his
name in the revenue records.
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3.It was further stated in the application that, after the death of
Sundar Sai, the lands in question were mutated in the names of
his sons, namely, Mahaveer and Rooney, in the revenue records.
Mahaveer died issueless and, after the death of Mahaveer and
Rooney, there was no other successor to the lands in question
except the applicant. It was alleged that Mahaveer had mortgaged
the lands in question in favour of Mohan, father of Hukum Sai;
however, a registered sale deed was fraudulently got executed in
favour of Hukum Sai, without the knowledge of the applicant or
the other persons concerned. The lands continued to remain in
the possession of Mohan, father of Hukum Sai, and when
possession thereof was sought to be recovered, the respondents
refused to hand over the same. It was, therefore, alleged that the
sale deed had been obtained fraudulently and the transaction had
never been disclosed to the applicant or the other interested
persons. According to the applicant, the aforesaid transaction was
in contravention of Section 165(6) of the Madhya Pradesh Land
Revenue Code, 1959, and, therefore, the lands were liable to be
reverted to the original tribal landholder or his legal heirs. The
concerned Sub-Divisional Officer (Revenue) took cognizance of
the application, issued notices to Hukum Sai and the other
concerned persons and, after conducting a detailed enquiry,
passed an order dated 13.06.2002, holding that the registered
sale deed had been fraudulently and illegally executed and,
accordingly, declared the said transaction to be null and void.
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4.Since the lands in question had already been acquired by South
Eastern Coalfields Limited (SECL), an order for physical reversion
of the lands could not be passed. Consequently, Hukum Sai, son
of Mohan, was directed to return the amount of compensation
received towards acquisition of the lands in question to the legal
heirs of Bahadur, namely, Samudri and others. The aforesaid
order was challenged by way of an appeal under Section 44 of the
Chhattisgarh Land Revenue Code, 1959, before the Collector.
Upon due consideration of the material available on record and
the nature of the transaction, the Collector found that the
transaction in question had not been effected in accordance with
law.
5.The Collector further held that the transaction was in
contravention of Section 165(6) of the Chhattisgarh Land
Revenue Code, 1959, and that the concerned Sub-Divisional
Officer (Revenue) had rightly declared the sale deed to be null
and void. It was further observed that, since the lands in question
had already been acquired by SECL, their physical reversion was
no longer possible and, therefore, the Sub-Divisional Officer
(Revenue) had rightly directed the return of the compensation
amount to the legal heirs of Bahadur, namely, Samudri, Lakhan,
Madan and Vijay. Accordingly, the order passed by the Sub-
Divisional Officer (Revenue) was affirmed by the Collector. Being
aggrieved by the said order, the petitioner preferred a revision
before the Commissioner, Sarguja Division, Ambikapur. The
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Commissioner, upon reconsideration of the entire matter and the
material available on record, arrived at the conclusion that the
registered sale deed had been obtained by playing fraud upon the
original tribal landholder and, therefore, had rightly been declared
null and void. The Commissioner further observed that, ordinarily,
the consequence of such a finding would be reversion of the lands
to the original landholder or his legal heirs; however, since the
lands had already been acquired by SECL, actual reversion
thereof was not possible. In such circumstances, the direction for
return of the compensation amount received in respect of the
acquired lands to the legal heirs of the original landholder was
held to be just and in accordance with law. Consequently, the
revision preferred by the petitioner was dismissed by the
impugned order dated 14.12.2021.
6.Learned counsel for the petitioner submits that Section 170-B of
the Madhya Pradesh/Chhattisgarh Land Revenue Code, 1959,
does not contain any provision empowering the revenue
authorities to direct the return or repayment of compensation
received upon acquisition of the land. He submits that Section
170-B of the Code deals with fraudulent transactions relating to
the lands of members of Scheduled Tribes and, where, upon
enquiry, it is found that the transaction was fraudulent or in
contravention of Section 165(6) of the Code, the competent
authority is empowered to pass an order for reversion of the land
to the original tribal landholder or his legal heirs. He further
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submits that, in the present case, the lands in question had
already been acquired by SECL and the compensation amount
was paid to the petitioner as his name was duly recorded in the
revenue records at the relevant point of time. According to learned
counsel, there is no provision under the Madhya
Pradesh/Chhattisgarh Land Revenue Code, 1959, authorising the
revenue authorities to direct the petitioner to return the
compensation received by him in lieu of acquisition of the lands. It
is further submitted that SECL, being the acquiring body and a
necessary party to the dispute, has not been impleaded as a party
to the proceedings and, therefore, the proceedings also suffer
from non-joinder of a necessary party. Learned counsel, therefore,
submits that the orders passed by all the three revenue authorities
are beyond the scope and ambit of Section 170-B of the Code and
are contrary to law and, as such, the impugned orders deserve to
be quashed.
7.Per contra, learned counsel appearing for the State as well as
learned counsel appearing for respondents No. 4 to 7 oppose the
submissions made on behalf of the petitioner and submit that all
the three revenue authorities have concurrently recorded a finding
that the transaction in question was fraudulent and was effected in
contravention of Section 165(6) of the Chhattisgarh Land
Revenue Code, 1959. It is submitted that, once the transaction
itself has been declared null and void, the petitioner cannot be
permitted to retain the compensation amount received on the
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strength of such an illegal and fraudulent transaction. Learned
counsel further submit that, since the lands in question had
already been acquired by SECL, physical reversion of the lands to
the original tribal landholder or his legal heirs had become
impossible and, therefore, the revenue authorities rightly directed
the petitioner to return the compensation amount to the private
respondents in lieu of reversion of the lands. It is, therefore,
submitted that the orders passed by the three revenue authorities
are based upon concurrent findings of fact, are just and proper
and do not suffer from any illegality or perversity warranting
interference by this Court in exercise of its writ jurisdiction.
8.Having heard learned counsel for the parties and perused the
material available on record.
9.This Court is of the view that the sole question which arises for
consideration and determination in the present case is whether, in
exercise of the powers conferred under Section 170-B of the
Madhya Pradesh/Chhattisgarh Land Revenue Code, 1959, the
competent revenue authority is empowered to pass an order
directing the return of the compensation amount received in lieu of
the land, where the transaction and registration of such land in
favour of the petitioner has subsequently been found to be
fraudulent and contrary to the provisions of the Code. In other
words, the issue which requires determination is whether a
direction for restitution or return of the compensation amount
received on account of acquisition of such land can be issued in
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proceedings under Section 170-B of the Code, particularly when
physical reversion of the land has become impossible owing to its
subsequent acquisition. In order to examine and adjudicate upon
the aforesaid question, it would be apposite to refer to the
provisions contained in Section 170-B of the Madhya
Pradesh/Chhattisgarh Land Revenue Code, 1959, which read as
under:-
“170-B. Reversion of land of members of
aboriginal tribe which was transferred by fraud.-(1)
Every person who on the date of commencement of
the Madhya Pradesh Land Revenue Code
(Amendment) Act, 1980 (hereinafter referred to as the
Amendment Act of 1980) is in possession of
agricultural land which belonged to a member of a
tribe which has been declared to be an aboriginal tribe
under sub-section (6) of section 165 between the
period commencing on the 2nd October, 1959 and
ending on the date of the commencement of
Amendment Act, 1980 shall, within 2[two years) of
such commencement, notify to the Sub-Divisional
Officer in such form and in such manner as may be
prescribed, all the information as to how he has come
in possession of such land.
(2) If any person fails to notify the information as
required by sub-section (1) within the period specified
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therein it shall be presumed that such person has
been in possession of the agricul-tural land without
any lawful authority and the agricultural land shall, on
the expiration of the period aforesaid revert to the
person to whom it originally belonged and if that
person be dead, to his legal heirs.
[(2-A) If a Gram Sabha in the Scheduled area referred
to in clause (1) of Article 244 of the Constitution finds
that any person, other than a member of an aboriginal
tribe, is in possession of any land of a Bhumiswami
belonging to an aboriginal tribe, without any lawful
authority, it shall restore the possession of such land
to that person to whom it originally belonged and if
that person is dead to his legal heirs.
Provided that if the Gram Sabha fails to restore the
posses-sion of such land, it shall refer the matter to
the Sub-Divisional Officer, who shall restore the
possession of such land within three months from the
date of receipt of the reference.]
(3) On receipt of the information under sub-section (1),
the Sub- Divisional Officer shall make such enquiry as
may be deemed necessary about all such transactions
of transfer and if he finds that the member of
aboriginal tribe has been defrauded of his legitimate
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right he shall declare the transaction null and void and
pass an order revesting the agricultural land in the
transferer and, if he is dead, in his legal heirs.]
[(3) On receipt of the information under sub-section (1)
the Sub-Divisional Officer shall make such enquiry as
may be neces-sary about all such transactions of
transfer and if he finds that the member of aboriginal
tribe has been defrauded of his legitimate right he
shall declare the transaction null and void and-
(a) Where no building or structure has been erected
on the agricultural land prior to such finding pass an
order revesting the agricultural land in the transferer
and if he be dead, in his legal heirs,
(b) Where any building or structure has been erected
on the agricultural land prior to such finding, he shall
fix the price of such land in accordance with the
principles laid down for fixation of price of land in the
Land Acquisition Act, 1894 (No. 1 of 1894) and order
the person referred to in sub-section (1) to pay to the
trans-ferer the difference, if any, between the price so
fixed and the price actually paid to the transferer:
Provided that where the building or structure has been
erected after the 1st day of January, 1984 the
provisions of clause
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(b) above shall not apply:
Provided further that fixation of price under clause (b)
shall be with reference to the price on the date of
registration of the case before the Sub-Divisional
Officer.]”
10.From a plain reading of the aforesaid provision, it is evident that
Section 170-B of the Madhya Pradesh/Chhattisgarh Land
Revenue Code, 1959, is intended to deal with transactions
concerning the lands of members of Scheduled Tribes which are
found, upon enquiry, to be fraudulent, illegal or otherwise contrary
to the provisions of the Code. Where such a transaction is found
to be fraudulent, the statutory consequence ordinarily
contemplated under the said provision is reversion of the land to
the original tribal landholder or his legal heirs. The question which,
however, arises in the present case is as to what appropriate relief
can be granted where the land in question has already been
acquired and, consequently, its physical reversion to the original
landholder or his legal heirs has become impossible. In the
present case, it is not in dispute that, on the basis of the
transaction subsequently found to be fraudulent, the petitioner got
his name mutated in the revenue records. It is also not in dispute
that the land in question had already been acquired by SECL prior
to the filing of the application under Section 170-B of the Code.
The material available on record further indicates that the
transaction in question was not within the knowledge of the
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original landholder, namely, Sundar Sai, or his legal heirs. From
the documents available on record, it appears that the original
tribal landholders had never intended to alienate the land by way
of an absolute sale and that the transaction was, in substance,
intended to be a mortgage. However, a registered sale deed was
obtained in favour of the petitioner, on the basis of which his name
was subsequently mutated in the revenue records. The concurrent
findings recorded by the revenue authorities demonstrate that the
tribal landholders were defrauded and that the sale deed in favour
of the petitioner had been obtained by way of a fraudulent
transaction.
11.The object and purpose underlying Section 170-B of the Code is
to protect members of Scheduled Tribes from illegal, fraudulent
and unauthorised transactions concerning their lands and to
prevent non-tribals or other persons from retaining possession or
deriving benefit from such transactions. For achieving the
aforesaid object, the Sub-Divisional Officer, being the prescribed
authority, has been conferred with the power and jurisdiction to
conduct an enquiry into the nature and validity of such
transactions and to grant appropriate relief in accordance with the
statutory scheme. Though the provision primarily contemplates
reversion of the land to the original tribal landholder or his legal
heirs, in a case where physical reversion of the land has become
impossible on account of its subsequent acquisition, the beneficial
object of Section 170-B cannot be rendered nugatory merely for
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the reason that the land is no longer available for restoration. In
such circumstances, the tribal landholder or his legal heirs cannot
be left remediless, particularly when the compensation for
acquisition of the land has been received by a person whose title
was founded upon a transaction subsequently declared to be
fraudulent and null and void. Thus, where the petitioner has
received the compensation amount solely on the strength of a
sale deed which has been declared null and void, the benefit
derived from such transaction cannot be permitted to be retained
by him to the prejudice of the original tribal landholders or their
legal heirs.
12.It is also pertinent to note that Section 170-B of the Code itself
contemplates a situation where reversion of the land may not be
practicable on account of the construction of a building or
structure over the agricultural land and provides for payment of
the price of such land determined in accordance with the
principles laid down for fixation of the price of land under the Land
Acquisition Act, 1894. The provision further contemplates
adjustment of any amount already paid and payment of the
differential amount, if any. The aforesaid statutory scheme makes
it clear that the legislative intent is not confined merely to the
physical reversion of the land but is also aimed at securing the
monetary value of the land to the tribal landholder in cases where
actual restoration of possession is not possible. Therefore, in the
peculiar facts and circumstances of the present case, where the
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land has already been acquired by SECL and physical reversion
thereof is no longer possible, an appropriate monetary relief can
be granted to the original tribal landholders or their legal heirs.
However, such monetary liability is required to be determined in
conformity with the mechanism contemplated under Section 170-
B of the Code and the principles governing determination of the
price of the land.
13.In view of the aforesaid facts, circumstances and legal position,
this Court is of the considered opinion that the orders passed by
the Sub-Divisional Officer (Revenue), Surajpur, and affirmed by
the Collector, Sarguja, as well as the Commissioner, Sarguja
Division, Ambikapur, require modification only to the extent of
determination of the monetary amount payable in respect of the
land in question. Accordingly, the impugned orders are modified to
the extent that the concerned Sub-Divisional Officer (Revenue),
Surajpur, shall determine the price of the land in question in
accordance with the principles laid down for fixation of the price of
land under the Land Acquisition Act, 1894, as contemplated under
Section 170-B of the Madhya Pradesh/Chhattisgarh Land
Revenue Code, 1959. Upon such determination, the petitioner
shall be liable to pay the amount so determined to the entitled
legal heirs of the original tribal landholder. While determining the
amount payable, the Sub-Divisional Officer (Revenue), Surajpur,
shall also take into consideration and appropriately adjust the
compensation amount already received by the petitioner in
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respect of the acquisition of the land in question. The aforesaid
exercise shall be carried out by the concerned authority strictly in
accordance with law and after affording a reasonable opportunity
of hearing to all the parties concerned.
14.Accordingly, with the aforesaid modification in the orders passed
by the revenue authorities, the present writ petition stands
disposed of. The concerned Sub-Divisional Officer (Revenue),
Surajpur, is directed to undertake and complete the exercise of
determination of the price of the land in question, in terms of the
observations and directions made hereinabove, within a period of
90 days from the date of receipt of a copy of this order, after
affording a reasonable opportunity of hearing to all the parties
concerned. Upon determination of the amount payable, the
petitioner shall deposit/pay the amount so determined in favour of
the entitled legal heirs of the original tribal landholder within a
further period of 60 days from the date of such determination. It is
made clear that, except to the extent of the modification made
hereinabove with regard to the determination of the amount
payable, the concurrent findings recorded by the revenue
authorities regarding the fraudulent nature of the transaction and
the invalidity of the sale deed shall remain undisturbed.
15.With this observation and direction, the writ petition is disposed of.
Sd/-
(Amitendra Kishore Prasad)
Judge
Raghu Jat
In a significant ruling, the High Court of Chhattisgarh at Bilaspur has delivered a judgment that reinforces the protective measures for Scheduled Tribes concerning land transactions, specifically addressing situations where land acquired through fraudulent means is subsequently acquired by a third party. This intricate case, WPC No. 1365 of 2022, delves into the interpretation and application of Section 170-B of the Madhya Pradesh/Chhattisgarh Land Revenue Code, 1959, offering crucial insights into the High Court's approach to restitution in the absence of physical land reversion. Readers can find comprehensive details and analysis of this and similar judgments on CaseOn, highlighting its status as an important legal precedent.
The core question before the High Court was whether, under Section 170-B of the Madhya Pradesh/Chhattisgarh Land Revenue Code, 1959, revenue authorities possess the power to direct the return or repayment of compensation received from land acquisition when the physical reversion of the fraudulently transferred tribal land has become impossible due to its subsequent acquisition by an entity like SECL.
The case revolves around Section 170-B of the Madhya Pradesh/Chhattisgarh Land Revenue Code, 1959, titled "Reversion of land of members of aboriginal tribe which was transferred by fraud."
The legislative intent behind Section 170-B is clearly to protect Scheduled Tribes from illegal, fraudulent, and unauthorized land transactions, ensuring they are not dispossessed of their legitimate rights.
The case originated from an application filed by Bahadur under Section 170-B, alleging that land belonging to his father, Sundar Sai (a member of the Bhima Scheduled Tribe), was fraudulently acquired. After Sundar Sai's death, his sons Mahaveer and Rooney inherited the land. It was alleged that Mahaveer had mortgaged the land to Mohan (father of the petitioner, Hukum Sai), but a registered sale deed was fraudulently executed in Hukum Sai's favor without the knowledge of the applicant or other legal heirs. The land remained in Mohan's possession, and subsequent attempts to recover possession were thwarted.
The Sub-Divisional Officer (Revenue), after an inquiry, found the sale deed fraudulent and illegal, declaring it null and void on June 13, 2002. However, since the land had already been acquired by South Eastern Coalfields Limited (SECL), physical reversion was impossible. Consequently, the SDO directed Hukum Sai to return the compensation received from SECL to Bahadur's legal heirs.
This order was challenged by Hukum Sai before the Collector, who affirmed the SDO's decision, reiterating that the transaction contravened Section 165(6) of the Code and that the SDO rightly directed the return of compensation due to SECL's acquisition. Subsequently, the petitioner filed a revision before the Commissioner, Sarguja Division, who also upheld the lower authorities' findings. The Commissioner concluded that the registered sale deed was obtained by fraud, was null and void, and that directing the return of compensation was just and legal given the impossibility of physical reversion.
Before the High Court, the petitioner argued that Section 170-B does not explicitly empower revenue authorities to direct the return of compensation received for acquired land. They contended that since SECL had acquired the land and compensation was paid based on the petitioner's name in revenue records, directing him to return the compensation was beyond the scope of Section 170-B. Furthermore, the petitioner argued that SECL, being the acquiring body, was a necessary party to the dispute and its non-joinder vitiated the proceedings.
The High Court carefully considered the arguments, acknowledging the concurrent findings of fraud by all three revenue authorities. It observed that the petitioner's name was mutated in the revenue records based on a fraudulent transaction, and the original tribal landholders never intended an absolute sale, but rather a mortgage.
The Court emphasized the beneficial object of Section 170-B: to protect Scheduled Tribes. It reasoned that this object could not be rendered nugatory merely because physical reversion became impossible due to subsequent acquisition. The Court highlighted that the Code itself, under Section 170-B(3)(b), contemplates monetary restitution (payment of land price) when physical reversion is impracticable due to the construction of a building or structure.
The Court held that the legislative intent extends beyond mere physical reversion; it aims to secure the monetary value of the land for the tribal landholder when actual restoration of possession is not possible. Therefore, allowing the petitioner to retain compensation derived from a null and void transaction would prejudice the original tribal landholders.
In analyzing such complex legal provisions, **CaseOn.in 2-minute audio briefs** prove invaluable, offering legal professionals and students quick, digestible summaries that highlight the core arguments and judicial reasoning, enabling efficient analysis of specific rulings like this.
The High Court, while affirming the concurrent findings of fraud and the invalidity of the sale deed, modified the lower authorities' orders regarding the determination of the monetary amount. It directed the Sub-Divisional Officer (Revenue), Surajpur, to determine the price of the land in question in accordance with the principles laid down for fixation of the price of land under the Land Acquisition Act, 1894, as contemplated by Section 170-B. Upon this determination, the petitioner is liable to pay the determined amount to the entitled legal heirs, with an appropriate adjustment for any compensation already received by him.
The SDO was mandated to complete this exercise within 90 days from the date of the order's receipt, after providing a reasonable opportunity of hearing to all parties. The petitioner must then deposit/pay the determined amount within 60 days of the determination. The Court explicitly stated that, save for this modification regarding monetary determination, the concurrent findings on the fraudulent nature of the transaction and the invalidity of the sale deed remain undisturbed.
The High Court of Chhattisgarh at Bilaspur, in WPC No. 1365 of 2022, disposed of the writ petition with a crucial modification to the orders passed by the revenue authorities. It affirmed that a fraudulent land transaction, even if followed by the land's acquisition by a third party (SECL), does not absolve the beneficiary of the fraudulent transaction from their liability. While physical reversion was impossible, the Court ensured that the spirit of Section 170-B — protecting tribal land rights — was upheld by directing the determination and payment of compensation to the original tribal landholders' legal heirs. The revenue authorities' findings of fraud and the nullity of the sale deed were upheld, emphasizing that benefits derived from such illegal transactions cannot be retained.
This judgment serves as a pivotal reference for several reasons:
For legal practitioners, this ruling provides a strong precedent for arguing cases involving fraudulent tribal land transfers where restitution might take a monetary form. For law students, it's an excellent example of judicial interpretation aimed at fulfilling the legislative intent and spirit of a protective statute, especially when faced with unforeseen practical complexities.
All information provided in this article is for informational purposes only and does not constitute legal advice. Readers should consult with a qualified legal professional for advice pertaining to their specific circumstances.
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