Piara Singh, State of Punjab, land dispute, auction, corrigendum, tenant rights, Displaced Persons Act, Supreme Court, judgment
 10 Jul, 2000
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Piara Singh Vs. State Of Punjab & Others

  Supreme Court Of India C.W.P.No. 4692 of 1989
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Case Background

As per case facts, the appellant was given possession as a tenant on certain low-lying land. Separately, the respondent had purchased a different property in a 1959 auction. Decades later, ...

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Document Text Version

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 6

PETITIONER:

PIARA SINGH

Vs.

RESPONDENT:

STATE OF PUNJAB & OTHERS

DATE OF JUDGMENT: 10/07/2000

BENCH:

A.P. MISRA, J. & M.B. SHAH. J.

JUDGMENT:

Shah, J.

This appeal is filed against the judgment and order

dated 21st August, 1989 passed by the High Court of Punjab and

Haryana in C.W.P.No. 4692 of 1989 whereby the High Court

dismissed the same summarily by upholding the order dated

6.9.1988 passed by the Financial Commissioner Revenue

(Respondent No.1), who rejected the Misc. Reh. No.42 of

1987-88 filed by the appellant under Section 33 of the Displaced

Persons (Compensation and Rehabilitation) Act, 1954 (hereinafter

referred to as the Act).

The dispute in the present appeal pertains to land

admeasuring 2 Kanals 12 Marlas out of Khasra No.28//23, 24/2

which admeasures 5 Kanals 12 Marlas situated in village Khokhar,

tehsil Dasuya, district Hoshiarpur, Punjab. It has been

contended that the said land was low-lying land and was

classified as gair mumkin toba i.e. pond or tank land, which

was not cultivated for more than 10 years. That land was

evacuee property within the meaning of Section 2 (c) of the Act.

It is the contention of respondent No.2 that on 8.12.1959 the

Tehsildar (Sales) put up for auction a parcel of land stated to

be brick kiln property No.25, total admeasuring 13 Kanals 10

Marlas, which was gair mumkin bhatta. According to the

appellant, what was auctioned was gair mumkin bhatta land and

not the land in dispute which was known as gair mumkin toba. In

the said auction, land was purchased by respondent No.2. On

21st March, 1964 a sale certificate was issued by the H.O.

(Sales), Jalandhar of the Rehabilitation Department, Government

of India. By some error the name of the village was

inaccurately mentioned and the schedule in the sale certificate

read property No.25 brick kiln situated in village Cholong,

district Hoshiarpur. No khasra numbers were given in the

original sale certificate to identify the property. It is also

admitted position that because of acquisition of the land by the

Railways out of the auctioned property, respondent no.2 was

entitled to only a total area admeasuring 7 Kanals and 6 Marlas.

On 17.4.1964 part of this property being Khasra No.28/17/1

admeasuring 7 Kanals 18 Marlas was mutated in the name of

respondent No.2 for a period of 14 years. Respondent No.2

remained satisfied with the mutation and took no steps.

However, on 22.5.1978 he filed an application for issuance of a

corrigendum and the concerned Managing Officer issued

corrigendum to the effect that auction land comprised Khasra

No.R/28/17 total admeasuring 4 Kanals and 14 Marlas in village

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Khokhar. This corrigendum was issued after a site report from

the Tehsildar (Sales), Hoshiarpur.

It is the contention of the appellant that the land in

dispute Khasra

No.R-28//23, 24/2 was also evacuee land and in 1978-79

the appellant was inducted as a tenant. At the time of grant of

such land to the appellant, it has been recorded as low-lying

waste land (pond land) which appellant levelled, fertilised and

irrigated to make it fit for growing green fodder and thereafter

in 1985 onwards the appellant was growing sugarcane thereon.

After grant of land to the appellant as tenant

respondent No.2 filed an application on 25.8.1982 for issue of

further corrigendum for including the land which was granted to

the appellant by stating that it was also sold to him by the

auction held in 1959. That application was rejected by the

Tehsildar (Sales) by order dated 9.2.1983 (Annexure H) by

holding that the Assistant Settlement Officer (Sales) after

having examined the case papers of the Tehsildar, Hoshiarpur had

issued corrigendum on 22.5.1978 and had issued fresh sale

certificate mentioning Khasra No.28//17/2 and 18, admeasuring 4

Kanals 14 Marlas of village Khokhar, district Hoshiarpur. The

request of respondent No.2 for further correction in the sale

certificate was not acceded to as the corrigendum was issued

after proper verification and after obtaining report from

Tehsildar.

Meanwhile, the land held by appellant-tenant was put to

auction on 30.12.1982 and the appellant was the highest bidder

for purchase of the said land. However, the Tehsildar (Sales)

by order dated 30.1.1985 rejected the said auction by holding

that there was defective proclamation (Annexure- I).

Against the order dated 9.2.1983 passed by the

Tehsildar, respondent No.2 preferred appeal under Section 22 of

the Act before the Settlement Commissioner, Mohali, Punjab

without joining the appellant as party- respondent. That appeal

was allowed by order dated 01.12.1983 with a direction to the

Tehsildar (Sales) to examine the relevant revenue record and

issue a fresh corrigendum after hearing the respondent. In the

said order, it was observed that the land purchased at the time

of auction was described as gair mumkin bhatta and because of

the clerical omission lesser area was mentioned in the

corrigendum issued without comparing the pre- consolidation

khasra numbers with the post consolidation killa numbers. He

observed that the clerical mistakes can be rectified at any

time. On the basis of the said order without considering any

thing a corrigendum for sale certificate was issued on 6.2.1985

including the land which was in possession of the appellant.

Against that order, appellant preferred appeal/revision

before the Deputy Commissioner, Hoshiarpur (The Chief Settlement

Commissioner under the Act) wherein it was pointed out that

corrigendum was issued without hearing the appellant and it can

only be issued if there is any clerical or authentic omission

but it cannot be issued for giving alternative area.

Meanwhile, the appellant filed Civil Suit No.168 of 1986

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before Sub Judge, Dasuya for permanent injunction restraining

respondent No.2 not to interfere in any manner in the peaceful

possession of the land measuring 2 Kanals 12 Marlas situated in

village Khokhar, tehsil Dasuya. That suit was decreed

restraining respondent No.2 from interfering in any manner in

peaceful possession of the land in dispute except by following

due course of law. Against that Civil Appeal No.64 of 1986

filed before the District Court was dismissed on 6.10.1986 by

the Addl. District Judge, Hoshiarpur.

Thereafter, appeal/revision filed against the order

dated 1.12.1983 was heard by the Chief Settlement Commissioner,

Hoshiarpur, which was dismissed on the ground that the appellant

did not have any locus standi to file the said appeal or

revision as auction in his favour had been cancelled by the

Settlement Commissioner. He also observed that under the rules

there is no bar on issuing of second or more corrigendum if only

arithmetic error is sought to be corrected.

That order was challenged before the Financial

Commissioner (Revenue) under Section 33 of the Act. After

hearing the parties and recording the contentions raised by them

in detail, the Financial Commissioner held that the appellant

was not entitled to any prior notice of hearing before rejection

of his bid because Rule 90 of the Displaced Persons

(Compensation & Rehabilitation) Rules, 1955 gives discretion to

the Settlement Commissioner to accept or reject appeals without

assigning any reasons. He also held that transfer of additional

land in favour of respondent no.2 was well considered and

justified and, therefore, the revision was dismissed. Against

that order writ petition was filed which was summarily

dismissed. That order is challenged in this appeal.

Dr. Roxna Swami, learned counsel appearing for the

appellant vehemently submitted that order passed by the

authorities below issuing so- called corrigendum is, on the face

of it, arbitrary, illegal and is passed to favour respondent

no.2. It has been pointed out that auction sale took place in

1959. Respondent no.2 remained in possession of the property

purchased by him since then and he never raised any objection

that the possession of the auctioned property was not handed

over to him or lesser area was given to him, for more than 23

years. It is also submitted that even in 1978 when respondent

no.2 requested for mentioning of correct name of the village, at

that time also he had not submitted that the area of land which

was given to him was less than what was auctioned. She further

pointed out that Tehsildar rightly first rejected the said

application by order dated 9.2.1983 yet in appeal without

verification of any record and without issuing notice to the

appellant who was in possession of the property as a tenant the

order was set aside and matter was remanded to the Tehsildar for

fresh decision by the Settlement Commissioner. Surprisingly,

without holding any enquiry, on the basis of the said order a

corrigendum was issued on 6.2.1985. This indicates that the

corrigendum dated 6.2.1985 is without any basis and totally

arbitrary. She also submitted that the authorities below erred

in holding that the appellant was not having any locus standi

without considering the fact that the possession of the land was

handed over to the appellant in 1978-79; that he made it

cultivable and thereafter purchased the same in an auction which

took place on 30.12.1982. That auction was set aside

arbitrarily without issuing any notice to the appellant by order

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dated 30.1.1985 on the ground that there was defective

proclamation for sale. On the basis of the aforesaid

submission, learned counsel submitted that the High Court

materially erred in not exercising its jurisdiction and in

rejecting the writ petition summarily. As against this, learned

counsel for respondent no.2 submitted that the order passed by

the authorities was based on record of auction held in 1959 and,

therefore, authorities were having jurisdiction to issue

corrigendum in the year 1982. He further vehemently submitted

that the order passed by the authorities is based upon finding

of fact and, therefore, the High Court rightly refused to

entertain the writ petition and hence this appeal should be

dismissed.

From the facts stated above and from the record, it is

apparent that order issuing so called corrigendum for giving

possession of additional land is grossly arbitrary because:

(a) Auction of the land stated to be the property No.25

was sold in the year 1959 and the possession of the said land

was handed over to respondent no.2 on 8.12.1959. The

authorities issued the sale certificate on 21.3.1964 for the

land purchased at the time of auction. At that time, respondent

no.2 never raised an objection that he was not given possession

of the entire area of the land auctioned and sold in his favour.

(b) In the year 1978, possession of the land in dispute

was given to the appellant as a tenant. At that time also

respondent no.2 had not raised any objection that the said

property was sold to him in the auction.

(c) On 22.5.1978 respondent no.2 filed an application

for issuance of corrigendum and the concerned Managing Officer

issued corrigendum to the effect that the auctioned land

comprised in Khasra No.R/28/17 admeasuring 4 Kanals 14 Marlas in

village Khokhar. This corrigendum was issued after a site

report from Tehsildar (Sales), Hoshiarpur. At that time also

respondent no.2 had not raised any objection that site report or

the corrigendum issued by the concerned Managing Officer was

incorrect.

(d) Respondent no.2 applied only on 25.9.1982 for

issuing of fresh corrigendum correcting the sale certificate

issued in his favour with the request to include the portion of

the land which was in possession of the appellant since 1978.

The said application was rightly rejected by the Tehsildar

(Sales) by order dated 9.2.1983. The said order was set aside

in appeal and the matter was remanded to the Tehsildar (Sales)

to examine the relevant record and to issue a fresh corrigendum

after hearing respondent no.2. It appears that without

recording any reason and without considering anything the

Tehsildar issued the corrigendum (Annexure K) on 6.2.1985

including the land which was in possession of the appellant.

(e) It is mentioned in the orders that what was sold to

respondent no.2 in a public auction held in 1959 was a brick

kiln property no.25, which was known as gair mumkin bhatta.

As against that, the land on which the appellant was inducted as

a tenant was classified as gair mumkin toba i.e. pond or tank

land.

Further, it appears on the record that some portion of

the land which was sold by auction to respondent no.2 was

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acquired by railways and without considering this aspect the

impugned order is passed. Authorities have also not considered

the effect of consolidation proceedings.

In any case, in the present case it cannot be said that

there is clerical or arithmetical error in mentioning khasra

number or its area in the sale certificate. As such, what is

contended by respondent no.2 is the possession of the land

which was sold by auction in his favour in 1959 is not handed

over and only a part of the land was handed over to him in 1959.

This dispute he raised in 1982, that means, after lapse of 23

years. Considering the long lapse of time and the fact that

there is no question of clerical or arithmetic error, the

authorities ought not to have exercised jurisdiction under

Section 25(2) of the Act which only empowers the authority to

correct clerical or arithmetical mistakes in any order or errors

arising therein from any accidental slip or omission. Under the

guise of corrigendum authorities have passed an order handing

over possession of additional land in favour of Respondent No.2.

It is also apparent that the Chief Settlement Commissioner has

not applied his mind to the facts of the case and has only

observed that there is no bar on issuing the second corrigendum

or more corrigendum in correcting the arithmetical error.

Further, the Chief Settlement Commissioner ought to have

considered the fact that the appellant was in possession of the

land as he was inducted as a tenant since 1978. Therefore, he

was having locus standi to file an appeal against the so-called

corrigendum granting additional land which was in his

possession, to respondent no.2.

Lastly, we find much force in the contention raised by

the learned counsel for the appellant that Tehsildar (Sales)

erred in passing the order dated 30.1.1985 (Annexure 'I)

setting aside the auction sale dated 30.12.1982 on the ground of

defective proclamation without issuing any notice to the

appellant. Tehsildar (Sales) ought to have heard the appellant,

whose bid was highest and was accepted on 30.12.1982 before

passing the impugned order after three years. In the present

case, the appellant was in possession of the land as a tenant.

His bid was accepted and if that bid was to be set aside, his

(appellants) rights would be certainly adversely affected,

therefore, he was required to be heard. Since no such

opportunity was afforded to the appellant before passing such

order, it requires to be quashed. [Re: Surinder Singh v.

Central Government and others, (1986) 4 SCC 667].

In view of the aforesaid discussion, the impugned order

passed by the High Court dismissing the writ petition, filed by

the appellant, in limine is set aside. The corrigendum dated

6.2.1985 (Annexure K) issued by the Tehsildar-cum-M.O., Dasuya

correcting the sale certificate by including the land held by

the appellant as a tenant issued in favour of respondent no.2 is

quashed and set aside. Consequently, the impugned orders passed

by the Financial Commissioner Revenue and Secretary to Govt. of

Punjab, Rehabilitation Department and the order passed by the

Chief Settlement Commissioner, Hoshiarpur are set aside. The

order (Annexure I) dated 30.1.1985 passed by the Tehsildar

(Sales) setting aside the auction dated 30.12.1982 is also

quashed. The appeal stands disposed of accordingly with no

order as to costs.

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Reference cases

Description

Supreme Court of India Delivers Landmark Ruling on Displaced Persons (Compensation and Rehabilitation) Act and Arbitrary Corrigendum Orders

The Supreme Court of India recently delivered a significant judgment in the case of Piara Singh v. State of Punjab & Others, offering crucial interpretations of the **Displaced Persons (Compensation and Rehabilitation) Act, 1954** and the limitations surrounding **Arbitrary Corrigendum Orders**. This ruling, now available on CaseOn, provides essential guidance for understanding administrative powers, property rights, and the principles of natural justice in rehabilitation cases.

Case Background: A Decades-Old Land Dispute

The core of this appeal revolved around a parcel of evacuee land, specifically 2 Kanals 12 Marlas, located in village Khokhar, Punjab. This land, classified as 'gair mumkin toba' (pond or tank land), was initially deemed unfit for cultivation for over a decade. The dispute began with an auction in 1959, where Respondent No.2 purchased a property described as 'brick kiln property no.25' (gair mumkin bhatta). A sale certificate was issued in 1964, but it contained inaccuracies regarding the village name and lacked specific khasra numbers.

Years later, in 1978, the appellant, Piara Singh, was inducted as a tenant on the disputed land, which he subsequently improved for cultivation. Meanwhile, Respondent No.2, after a significant delay, began a series of applications for 'corrigenda' (corrections) to his original sale certificate, eventually seeking to include the land occupied by Piara Singh, claiming it was part of his 1959 purchase.

Legal Issue: The Scope of Administrative Correction Powers

The primary legal question before the Supreme Court was whether administrative authorities could issue multiple corrigenda to a sale certificate, decades after the original transaction, to transfer additional land—especially when such land was already in the possession of another party (the appellant) and had a different classification than the initially auctioned property. The case also raised critical questions about the appellant's locus standi to challenge these administrative actions and the legality of setting aside his auction bid without due notice.

Applicable Legal Rules: Due Process and Statutory Limits

The Court considered several key legal principles and statutory provisions:

  • Displaced Persons (Compensation and Rehabilitation) Act, 1954:

    Specifically, Section 25(2) of the Act, which empowers authorities to correct clerical or arithmetical mistakes or accidental slips/omissions. The Court examined whether this section could be stretched to alter the substance of a sale certificate or transfer new land.

  • Displaced Persons (Compensation & Rehabilitation) Rules, 1955:

    Rule 90, granting the Settlement Commissioner discretion to accept or reject appeals without assigning reasons, was scrutinized in the context of fairness.

  • Principles of Natural Justice (Audi Alteram Partem):

    The fundamental right to be heard, especially when an administrative decision affects an individual's rights or property, was a central tenet of the appellant's argument.

  • Arbitrary Administrative Action:

    The Court assessed whether the actions of the administrative authorities amounted to arbitrary exercise of power, violating constitutional safeguards.

  • Locus Standi:

    The standing of the appellant to challenge the corrigenda and subsequent orders was also a point of contention, particularly given his status as a tenant and later as a highest bidder in an auction.

Case Analysis: Unraveling Decades of Administrative Overreach

The Supreme Court meticulously analyzed the sequence of events and the decisions made by various authorities:

Initial Auction and Delayed Claims

Respondent No.2 purchased brick kiln land in 1959. Despite the 1964 sale certificate having inaccuracies, Respondent No.2 raised no objection about receiving less land for 23 years. It was only in 1982 that he sought a 'further corrigendum' to include the land then occupied by Piara Singh.

The Contested Corrigenda

Initially, the Tehsildar rejected Respondent No.2's application for the extended corrigendum in 1983. However, the Settlement Commissioner, in an appeal where Piara Singh was not made a party, set aside this rejection and ordered a fresh corrigendum. Crucially, in 1985, a corrigendum was issued including the appellant's land, without any hearing provided to Piara Singh, who was in peaceful possession of the property.

Appellant's Independent Rights and Challenges

Concurrently, in 1982, the land held by Piara Singh was put up for auction, and he emerged as the highest bidder. However, the Tehsildar arbitrarily rejected this auction in 1985, citing 'defective proclamation' but again, without any notice to Piara Singh. Piara Singh also successfully filed a civil suit, securing a permanent injunction against Respondent No.2's interference with his possession.

Flawed Administrative Review

The Chief Settlement Commissioner dismissed Piara Singh's appeal, asserting he lacked locus standi and that there was 'no bar' to issuing multiple corrigenda for arithmetic errors. The Financial Commissioner further upheld the transfer to Respondent No.2, citing the discretion under Rule 90 for rejecting the appellant's bid without prior notice. The High Court summarily dismissed Piara Singh's writ petition.

Supreme Court's Critical Examination of Arbitrary Actions

The Supreme Court found significant flaws in the actions of the lower authorities, terming them 'grossly arbitrary':

  • The Court emphasized the 23-year delay by Respondent No.2 in claiming less land, questioning the legitimacy of such a belated claim for 'correction.'
  • It highlighted the critical difference in land classification: the original auction was for 'gair mumkin bhatta' (brick kiln land), while the disputed land was 'gair mumkin toba' (pond land). A corrigendum cannot fundamentally change the nature of the auctioned property.
  • The issuance of a corrigendum without hearing the appellant, who was in long-standing possession and whose rights were directly affected, violated the principles of natural justice.
  • The Court clarified that Section 25(2) of the Act permits corrections only for 'clerical or arithmetical errors,' not for transferring additional land or rectifying substantial claims.
  • The Supreme Court also noted that the authorities failed to consider the impact of railway acquisition on the auctioned property and consolidation proceedings.
  • Furthermore, the setting aside of the appellant's highest bid in the 1982 auction without providing him any notice or opportunity to be heard was deemed arbitrary and illegal.

Legal professionals analyzing such complex rulings can greatly benefit from CaseOn.in's 2-minute audio briefs, which distill the essence of these specific judgments, making it easier to grasp the nuances and implications efficiently.

Conclusion: Upholding Justice and Due Process

The Supreme Court firmly rejected the arbitrary actions of the administrative authorities. It set aside the High Court's summary dismissal of the writ petition. Consequently, the corrigendum dated 6.2.1985, which had included Piara Singh's land for transfer to Respondent No.2, was quashed. All preceding orders from the Financial Commissioner, the Secretary to the Government of Punjab, the Chief Settlement Commissioner, and the Tehsildar (Sales) – including the one setting aside Piara Singh's 1982 auction – were also set aside. This judgment reinforces the sanctity of due process and the limits of administrative power, particularly in cases affecting property rights.

Why This Judgment is an Important Read

For Lawyers:

  • This case serves as a powerful reminder of the imperative of adhering to the principles of natural justice. Any administrative action affecting an individual's rights must be preceded by a fair hearing.
  • It provides a definitive interpretation of the scope of correction powers under the Displaced Persons (Compensation and Rehabilitation) Act, clarifying that 'corrigenda' cannot be used as a tool to transfer additional land or rectify long-standing, substantive claims under the guise of clerical errors.
  • The judgment highlights the critical importance of challenging arbitrary administrative orders and the Supreme Court's willingness to intervene when due process is circumvented.
  • It underscores the doctrine of laches and delay, emphasizing that a party cannot sit on its rights for decades and then seek 'corrections' that prejudice others.

For Students:

  • This case offers an excellent practical illustration of administrative law principles, particularly judicial review of administrative action, natural justice, and the limitations of statutory powers.
  • It provides a real-world example of how property law intertwines with rehabilitation legislation, making it an invaluable study for those interested in land disputes and post-partition legal frameworks.
  • Students can learn about the application of the IRAC method in analyzing complex legal scenarios, identifying the core issue, relevant rules, the court's analysis, and the final conclusion.
  • The judgment showcases the judiciary's role in ensuring fairness and preventing arbitrary exercises of power by executive authorities.

Disclaimer:

All information provided in this analysis is for informational purposes only and does not constitute legal advice. Readers are encouraged to consult with a qualified legal professional for advice on specific legal issues.

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