As per case facts, a tenant obtained permission to sell land, which was then transferred to a company through its directors. Eleven years later, the Additional Collector revoked the sale ...
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AGK
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.6397 OF 2012
WITH
CIVIL APPLICATION NO.1022 OF 2019
1.Prassanna Keshav Patwardhan,
Age Adult, Occupation Business,
Residing at 1471, Shukrawar Peth,
Pune 411 002
2.Shriram Narayan Bhave,
Age Adult, Occupation Business,
Residing at 1471, Shukrawar Peth,
Pune 411 002
(All through the Power of Attorney
holder, viz., petitioner No.1 above)… Petitioners
Vs.
1.State of Maharashtra,
(Summons to be served on the learned
Government Pleader appearing for
State of Maharashtra under Order
XVIII Rule4, of the Code of Civil
Procedure, 1908)
2.Additional Collector, Alibag,
District Raigad
(Summons to be served on the learned
Government Pleader appearing for
State of Maharashtra under Order
XVIII Rule4, of the Code of Civil
Procedure, 1908)
3.Tahsildar Khalapur,
Taluka Khalapur, District Raigad
1
ATUL
GANESH
KULKARNI
Digitally signed by
ATUL GANESH
KULKARNI
Date: 2026.05.06
11:15:45 +0530
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(Summons to be served on the learned
Government Pleader appearing for
State of Maharashtra under Order
XVIII Rule4, of the Code of Civil
Procedure, 1908)
4.Ganu Kushaba Patil,
R/at: Kalote Mokashi, Taluka
Khalapur, District Raigad
(deleted as per
order dated
01.11.2012)
5.Lata Tukaram Surve,
R/at: Karjat, Taluka Karjat,
District Raigad
6.The President, Maharashtra Revenue
Tribunal, Mumbai
(Summons to be served on the learned
Government Pleader appearing for
State of Maharashtra under Order
XVIII Rule4, of the Code of Civil
Procedure, 1908) … Respondents
Mr. Girish S. Godbole, Senior Advocate with Mr. Sumit
Kothari and Ms. Aishwarya Shinde for the petitioners.
Smt. A.A. Nadkarni, AGP for the respondent Nos.1 to
3-State.
CORAM :AMIT BORKAR, J.
RESERVED ON :APRIL 29, 2026.
PRONOUNCED ON:MAY 6, 2026
JUDGMENT:
1.By the present writ petition instituted under Articles 226 and
227 of the Constitution of India, the petitioners have invoked the
supervisory and extraordinary jurisdiction of this Court to assail
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the legality, propriety, and correctness of the judgment and order
dated 11 April 2012 passed by the President of the Maharashtra
Revenue Tribunal, Mumbai, in Revision Application No.
TNC/REV/400/B/2008.
2.The factual matrix, as set out by the petitioners and forming
the basis of the present proceedings, is that during the period
1962–1963, one Ganu Khusaba Patil, who is now deleted from the
array of parties, was recorded as a tenant in respect of the subject
land. Proceedings under Section 32G of the Maharashtra Tenancy
and Agricultural Lands Act, 1948 were concluded, culminating in
issuance of a certificate under Section 32M in favour of the said
tenant. Subsequently, on 10 August 1992, Lata Tukaram Surve
instituted Short Cause Suit No. 334 of 1992 before the Court of
Civil Judge, Senior Division at Panvel, seeking specific
performance and execution of a registered conveyance pursuant to
a sale permission dated 18 October 1991 granted by the Sub-
Divisional Officer, Panvel, and order dated 22 April 1992, in
respect of land bearing Survey No. 173 situated at Village Kalote,
Taluka Khalapur, District Raigad, later renumbered as Gut No. 236.
The present petitioner figures as defendant No. 5 in the said suit.
The learned Civil Judge, Senior Division, Panvel, by order dated 5
April 1997, rejected the application at Exhibit-5 in the aforesaid
suit. The Court recorded a categorical finding that no valid
agreement for sale was produced on record by the plaintiff.
Although three separate agreements for sale were placed on
record, the Court noted that there was no material to demonstrate
that any effective steps had been taken by the parties to fructify
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the alleged transaction since the year 1991.
3.Being aggrieved by the said order dated 5 April 1997, Lata
Tukaram Surve preferred Appeal from Order No. 548 of 1997
before this Court. By order dated 6 October 2000, this Court
directed expeditious disposal of Short Cause Suit No. 334 of 1992
and granted interim protection to operate during the pendency of
the suit, while disposing of the said appeal. In the meantime, the
Additional Collector, Raigad at Alibaug, by order dated 23 April
1997 passed under Section 43 of the Maharashtra Tenancy and
Agricultural Lands Act, 1948 read with Rule 25A(1)(f) of the
Maharashtra Tenancy and Agricultural Lands Rules, 1956, granted
permission to sell the subject land. The said permission was
granted on an application preferred by Ganu Khusaba Patil.
Pursuant thereto, within a period of one month, a registered sale
deed bearing No. 1253 of 1997 dated 16 May 1997 came to be
executed in favour of Prasanna Terminals Limited through its
representatives, namely Prasanna Patwardhan (petitioner No.1)
and Shriram Bhave (petitioner No.2), whereby the land bearing
Gut No. 236 admeasuring 2 Hectares and 33 Ares was purchased
for a consideration of Rs. 15,00,000/-. The said transaction was
effected with the consent of Ramchandra Ganu Thombre, Kaluram
Kanu Thombre, Gajanan Ganu Thombre and Anand Ganu
Thombre. Consequent upon the execution of the aforesaid sale
deed, Mutation Entry No. 445 came to be recorded in the record of
rights on 16 May 1997, reflecting that Ganu Khusaba Patil had
transferred the said land in favour of Prasanna Patwardhan and
Shriram Bhave for a consideration of Rs. 15,00,000/-.
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4.After a lapse of more than eleven years, the Additional
Collector, Raigad at Alibaug, by order dated 3 October 2008,
purported to revoke the sale permission granted earlier. It was
recorded that, in view of Condition No. 4 incorporated in the
permission dated 23 April 1997, the permission would
automatically stand lapsed if any proceedings or suits were
pending before any Court. It was further observed that Short
Cause Suit No. 334 of 1992 filed by Lata Tukaram Surve was
pending on the date of grant of permission and came to be finally
disposed of on 23 November 2001. On that basis, it was concluded
that since the suit was pending as on 23 April 1997, the permission
granted on that date stood vitiated and was liable to be cancelled.
It was also noted that the Regular Civil Appeal and Second Appeal
arising therefrom were dismissed in the year 2002.
5.Being aggrieved by the said order, the petitioners preferred
Revision Application No. 400/B of 2008 before the Maharashtra
Revenue Tribunal, Mumbai, along with an application for stay of
the order dated 3 October 2008. By order dated 24 October 2008,
the Tribunal granted interim stay. Accordingly, Mutation Entry No.
894 dated 20 November 2008 came to be recorded, indicating that
the operation of the order dated 3 October 2008 had been stayed
by the Tribunal. The President of the Maharashtra Revenue
Tribunal, by order dated 11 April 2012, allowed Revision
Application No. 400 of 2008 and set aside the order dated 3
October 2008 passed by the Additional Collector. However, it was
subsequently recorded that after pronouncement of the judgment
in open Court, it transpired that the Advocate appearing for the
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parties had failed to bring to the notice of the Tribunal an earlier
order dated 6 March 2012, whereby the parties were directed to
establish the relationship between the applicant and the
purchasing company, particularly since the sale deed was not
executed in the names of the original applicants for permission. In
view thereof, a notice was issued calling upon the parties to show
cause as to why the order should not be reviewed, thereby
invoking the power of suo motu review. Thereafter, by order dated
13 June 2012, the President of the Maharashtra Revenue Tribunal
recalled the earlier order dated 11 April 2012 and restored the
order dated 3 October 2008 passed by the Additional Collector,
Raigad. It is also placed on record that the original tenant, namely
respondent No. 4, came to be deleted from the array of parties by
order dated 1 November 2012.
6.Mr. Godbole, learned Senior Advocate appearing on behalf of
the petitioners, submits that the sale deed in question has been
executed pursuant to a valid permission granted under Section 43
of the Maharashtra Tenancy and Agricultural Lands Act, 1948. It is
contended that the statutory scheme of Section 43 does not
contemplate any provision for revocation of such permission once
it is duly granted. According to him, the exercise of suo motu
power for revocation after an inordinate lapse of eleven years is
contrary to the settled principles of law and suffers from patent
illegality. It is, therefore, urged that the impugned action of the
Collector as well as the Maharashtra Revenue Tribunal is without
jurisdiction and devoid of any legal authority. It is further
submitted that Section 43 of the said Act is enacted primarily for
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the protection and benefit of the tenant purchaser, and any
conditions imposed in the permission, including a stipulation
regarding pendency of litigation, are intended to safeguard the
interest of the purchaser. It is urged that the original tenant never
raised any objection to the transaction and that the civil suit,
which was pending at the relevant time, came to be finally
disposed of on 23 November 2001, prior to the order of
revocation. On this premise, it is contended that the order of
revocation reflects non-application of mind. It is also submitted
that neither Section 43 of the Act nor Rule 25 of the Rules
mandates that the permission must necessarily be granted in the
name of the ultimate purchaser or that the person in whose favour
the agreement for sale is executed must be identical to the person
in whose favour permission is granted. Hence, according to the
petitioners, no breach of any condition can be said to have
occurred.
7.The learned Senior Advocate further submits that a plain
reading of the impugned judgment and order dated 11 April 2012
passed by the President of the Maharashtra Revenue Tribunal
indicates that the controversy before the Tribunal was confined to
the issue of pendency of litigation, which subsequently stood
concluded. It is contended that no issue was raised before the
Tribunal regarding the identity of the purchaser or the person in
whose favour the permission was granted. In such circumstances,
it is urged that the subsequent exercise of suo motu power to recall
the order dated 11 April 2012 and the passing of the order dated
13 June 2012 is wholly impermissible, particularly when the said
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aspect was neither argued nor considered prior to dictation of the
judgment in open Court.
8.Per contra, Ms. Nadkarni, learned Assistant Government
Pleader appearing for the State, submits that Condition No. 4
incorporated in the permission order dated 23 April 1997 issued
by the Additional Collector, Raigad-Alibag, expressly provides that
if any suit is pending in respect of the land for which permission is
sought, the permission shall automatically stand cancelled. It is
submitted that, admittedly, a Special Civil Suit was pending before
the Court of Civil Judge, Senior Division at Panvel at the relevant
time. It is further contended that the applicant, Ganu Khusaba
Patil, suppressed this material fact and made a false statement to
secure the permission. Reliance is placed on the averments in
paragraph 5 of the petition to contend that the petitioners
themselves have admitted the pendency of litigation between Lata
Tukaram Surve and Ganu Khusaba Patil from 1992 till 2001. On
this basis, it is submitted that the permission dated 23 April 1997
stood automatically cancelled in view of Condition No. 4, and
consequently, neither Ganu Khusaba Patil nor the petitioners had
any lawful authority to transfer the said land on the strength of
such permission.
9.It is further submitted on behalf of the State that the order
dated 3 October 2008 passed by the Additional Collector is legal
and in consonance with the terms of the permission. It is reiterated
that Condition No. 4 clearly stipulates automatic cancellation of
permission in the event of pendency of any suit, and the
petitioners have themselves acknowledged such pendency in the
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pleadings. It is contended that despite being aware of the
subsisting litigation, Ganu Khusaba Patil suppressed the said fact
from the competent authority. It is also submitted that the
permission was specifically granted to effect sale in favour of two
named individuals, namely Prasanna Keshav Patwardhan and
Shriram Narayan Bhave, and for agricultural purposes subject to
the conditions mentioned therein. According to the State, no
permission was granted in favour of any company, firm or
association. In that view of the matter, it is contended that the sale
deed ought to have been executed strictly in favour of the said
individuals and not in favour of Prasanna Terminals Limited. The
execution and registration of the sale deed in favour of the
company, without obtaining requisite permission, is therefore
asserted to be illegal and void ab initio.
REASONS AND ANALYSIS:
10.For the purpose of proper adjudication of the issues involved
in the present matter, it becomes necessary to reproduce and
closely examine the relevant statutory provisions governing the
field. Since the rival submissions of the parties are based upon the
interpretation and application of these provisions, it is appropriate
to set out Section 43 of the Act and Rule 25-C of the Rules, which
read as under:
“43.Restriction on transfers of land purchased or sold
under this Act.
(1) No land purchased by a tenant under sections 32, 32F,
32-I, 32-O, 33C or 43-1D or sold to any person under section
32P or 64 shall be transferred by sale, gift, exchange,
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mortgage, lease or assignment [* * *] without the previous
sanction of the Collector. [Such sanction shall be given by
the Collector in such circumstances, and subject to such
condition, as may be prescribed by the State Government:
Provided that, no such sanction shall be necessary where the
land is to be mortgaged in favour of Government or a society
registered or deemed to be registered under the Bombay Co-
operative Societies Act, 1925, for raising a loan for effecting
any improvement of such land.
Provided further that, no such previous sanction shall
be necessary for the sale, gift, exchange, mortgage, lease or
assignment of the land in respect of which ten years have
elapsed from the date of purchase or sale of land under the
sections mentioned in this sub-section, subject to the
conditions that,-
(a) before selling the land, the seller shall pay a nazarana
equal to forty times the assessment of the land revenue to
the Government;
(b) the purchaser shall be an agriculturist;
(c) the purchaser shall not hold the land in excess of the
ceiling area permissible under the Maharashtra Agricultural
Lands (Ceiling on Holdings) Act, 1961; and
(d) the provisions of the Bombay Prevention of
Fragmentation and Consolidation of Holdings Act, 1947 shall
be violated.
(2) Any transfer [* * *] of land in contravention of sub-
section (1) shall be invalid.]
(3) Notwithstanding the amendment of section 43 of the
Bombay Tenancy Act made by sub-section (1) of this section,
where any orders have been made, by the Collector or any
officer exercising the powers of the Collector under the said
section 43, declaring partition of any land as invalid and the
person concerned has been evicted by the Collector or such
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officer for such land, before the commencement of this Act,
then such orders shall not be affected by the amendment
aforesaid, but shall continue to be in operation as before.”
11.Rule -25-C. Circumstances in which and conditions subject to
which sanction shall be given by the Collector under Section 43 for
transfer.
“(1) The circumstances in which and the conditions subject
to which the previous sanction of the Collector under sub-
section (1) of section 43 may be given, shall be as follows,
namely:
(a) that the land is required for an agricultural purpose by
industrial or commercial undertaking in connection with any
industrial commercial operations carried on by such
undertakings;
(b) that the transfer is for the benefit of any educational or
charitable institution duly registered under the Bombay
Public Trust Act, 1950;
(c) that the land is required by a co-operative farming
society;
(d) that the land is being sold in execution of a decree of a
Civil Court or for the recovery of arrears of land revenue
under the provisions of the Bombay Land Revenue Code,
1879;
(e) that the land is being sold bona fide for any non-
agricultural purpose;
(f) that the land is being sold by landowner on the ground
that
i) he is in need of contracting his holding either for
adequate finance or for intensive cultivation;
(ii) he is permanently giving up the profession of
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agriculturist; or
(iii) he is permanently rendered incapable of
cultivating the land personally;
(g) that the land is being gifted in favour of
(i) the bodies or institutions mentioned in section
88-A and clauses (a) and (b) of sub-section (1) of
section 88-B, or
(ii) a member of the landowners family;
(h) that the land is being exchanged
(i) with land of equal or nearly equal value owned
and cultivated personally by a member of the same
family;
(ii) with land of equal or nearly equal value situated
in the same village or in any other village owned and
cultivated personally by another landowner with a
view to forming a compact block of his holding or with
a view to having better management of the land:
Provided that the total land held and cultivated
personally by any of the parties to the exchange
whether as owner or tenant or partly as owner and
partly as tenant does not exceed the ceiling area as a
result of the exchange;
(i) that the land is being leased by a landowner who is a
minor, or a widow or a person subject to any physical or
mental disability or a member of the armed forces or among
the landowners holding the land jointly;
(j) that the land is being partitioned among the heirs or
survivors of the deceased land owners: Provided the area
allotted to each sharer is not less than a unit specified by the
State Government under clause (c) of sub-section (1) of
section 27; or
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(k) that the land is being sold by the land owner on the
ground that it is situated at such distance from his residence
that he is not in a position to look after it.
(2) The sanction of the Collector under clauses (a), (b), (c)
and (g) of sub-rule (1) shall be subject to a further condition
that the person or institution in whose favour the transfer is
made shall use the land for the same purpose for which the
transfer has been sanctioned within a period of three months
from the date of transfer of land which may be extended
upto two years in aggregate by the Collector for genuine
reasons to be recorded in writing. If the person fails to
comply with the condition within the period so specified, the
sanction given under sub-section (1) of section 43 shall be
deemed to have been cancelled and transfer shall be deemed
to have been made without the previous sanction of the
Collector.”
12.Section 43 of the Maharashtra Tenancy and Agricultural
Lands Act, 1948, as amended, imposes a restriction on the transfer
of land purchased by a tenant or sold under the provisions of the
Act. Sub-section (1) mandates that no such land shall be
transferred by way of sale, gift, exchange, mortgage, lease or
assignment without obtaining prior sanction of the Collector. The
provision contemplates that such sanction may be granted by the
Collector in circumstances and subject to conditions as may be
specified by the State Government. Certain exceptions are carved
out, including cases where the land is mortgaged in favour of the
Government or a registered co-operative society for the purpose of
raising a loan for improvement of the land. A proviso stipulates
that upon expiry of ten years from the date of purchase or sale,
prior sanction is not necessary, subject to compliance with
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conditions relating to payment of nazarana, status of the purchaser
as an agriculturist, adherence to ceiling limits, and conformity with
the provisions of the law relating to fragmentation and
consolidation of holdings.
13.Sub-section (2) declares that any transfer effected in
contravention of sub-section (1) shall be invalid. The consequence
of non-compliance with the requirement of prior sanction is thus
rendered void, indicating the mandatory nature of the provision.
14.Sub-section (3) preserves the validity and operation of
orders passed prior to the amendment of Section 43, particularly
those declaring partitions as invalid and consequent evictions,
thereby protection of actions taken under the unamended
provision.
15.The scheme of Section 43, therefore, reflects a intention to
control transfers of agricultural land purchased under the Act, so
as to prevent fragmentation and ensure that such lands remain
with eligible persons in accordance with the policy.
16.Rule 25-C of the Maharashtra Tenancy and Agricultural
Lands Rules, 1956, provides the circumstances in which, and the
conditions subject to which, the Collector may grant previous
sanction under sub-section (1) of Section 43 of the Act for transfer
of land. Sub-rule (1) provides situations where such sanction may
be accorded. These include cases where the land is required for
agricultural purposes by an industrial or commercial undertaking;
where the transfer is for the benefit of an educational or charitable
institution; or where the land is required by a co-operative farming
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society. Sanction is also contemplated where the transfer arises out
of execution of a decree of a Civil Court or recovery of arrears of
land revenue under the Bombay Land Revenue Code, 1879.
17.The Rule further provides for grant of sanction where the
land is proposed to be sold bona fide for non-agricultural
purposes, or where the landowner seeks to sell the land on
grounds, such as the necessity to holdings for financial reasons or
cultivation, cessation of agricultural occupation, or incapacity to
personally cultivate the land. Provision is also made for transfers
by way of gift in favour of specified institutions or family members,
and for exchange of land under conditions to facilitate
consolidation, subject to compliance with ceiling limits. Additional
circumstances include lease of land by categories of landowners
such as minors, widows, or persons under disability, partition
among heirs subject to minimum area requirements, and sale on
account of the land being situated at such a distance from the
residence of the owner that supervision is not feasible.
18.Sub-rule (2) imposes an additional condition in respect of
sanctions granted under clauses (a), (b), (c) and (g) of sub-rule
(1), namely, that the transferee must utilise the land for the
purpose for which the sanction is granted within a period of three
months from the date of transfer, extendable up to two years for
reasons to be recorded in writing. Failure to comply with this
condition results in a cancellation of the sanction, and the transfer
is treated as having been effected without prior permission.
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19.Sub-rule (3) prescribes conditions in cases where sanction is
granted for non-agricultural purposes under clause (e) of sub-rule
(1). It requires the transferee to apply for non-agricultural
permission within six months, extendable up to two years, and to
utilise the land for the sanctioned purpose within a stipulated
period following grant of such permission, subject to further
extensions as provided. Non-compliance entails deemed
cancellation of the sanction and invalidation of the transfer. The
provisos clarify that initiation of bona fide steps towards utilisation
shall constitute compliance, and also empower the Collector, for
recorded reasons, to permit use of the land for an alternative
purpose where the original purpose cannot be fulfilled. The
Explanation confers finality upon the decision of the Collector in
determining whether the steps taken are bona fide.
20.The scheme of Rule 25-C thus operates with Section 43, not
only by specifying the grounds for granting sanction but also by
attaching obligations to ensure that the transfer serves the
intended purpose, failing which the sanction stands revoked by
operation of law.
21.Having considered these rival submissions, the first question
which comes for determination is regarding the nature and scope
of power under Section 43 of the Act. The section imposes a
restriction on transfer of land which is purchased by a tenant or
otherwise covered under the provisions of the Act. It mandates
that such transfer cannot be effected without sanction of the
Collector. It seeks to ensure that agricultural land does not pass in
a manner contrary to the policy of the statute. At the same time,
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when the language of the section is examined, it becomes clear
that it speaks only about requirement of prior sanction and the
consequence of transfer made without such sanction.
22.Rule 25-C, which supplements Section 43, lays down the
circumstances under which sanction may be granted and also
attaches certain conditions to such grant. The Rule further
provides that in certain situations, if the transferee fails to comply
with post-transfer conditions, the sanction shall be deemed to have
been cancelled. This provision applies where the transferee, after
obtaining permission and completing the transaction, does not
utilise the land for the purpose for which sanction was granted
within the prescribed time, or fails to observe conditions which are
directly linked with the use and enjoyment of the land. The Rule
must be read according to its language. It does not create a power
in the authority to review or cancel permission on any ground
whatsoever. In the present case, the impugned order of revocation
is not founded upon any breach of such post-transfer conditions.
There is no finding that the petitioners failed to use the land for
the permitted purpose or violated any time-bound obligation.
Instead, the revocation is based on circumstances existing prior to
grant, namely pendency of civil suit, and also on the issue relating
to identity of purchaser.
23.The entire basis of the action proceeds on the ground that
pendency of a civil suit was a material circumstance which ought
to have been disclosed and that non-disclosure amounts to
suppression. Rule 25-C sets out the circumstances in which
sanction under Section 43 may be granted and the conditions
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subject to which such sanction operates. The Rule enumerates
categories such as requirement for industrial or commercial
purpose, benefit of charitable institution, bona fide non-
agricultural use, personal necessity of the landholder, exchange,
gift, and other defined situations. The Rule also prescribes
consequences where conditions are not complied with. However, a
plain reading of the Rule does not indicate that pendency of a civil
suit is a disqualifying circumstance or a condition precedent for
grant of permission. In absence of such provision in the rule, it
becomes difficult to accept the contention that non-disclosure of
pendency of litigation would amount to suppression of a material
fact, so as to render the permission liable to be cancelled. A fact
can be said to be material only when the rule makes it relevant for
the decision-making process. Where the Rule itself does not
recognize pendency of a suit as a circumstance affecting grant of
permission, the omission to state such fact cannot be elevated to
the level of suppression.
24.It is true that administrative orders may incorporate certain
conditions. Condition No. 4 in the present case refers to pendency
of proceedings. Yet, condition must be read with the statute and
the Rules. A condition cannot travel beyond the rules to introduce
a ground which the Rule-making authority itself has not
contemplated. If Rule 25-C does not treat pendency of litigation as
a relevant circumstance, then a condition in the permission order
cannot be construed in a manner so as to expand the Rule.
Moreover, there is no finding recorded by the authority that any of
the conditions enumerated under Rule 25-C were breached by the
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petitioners. The case of the State is not any of the post-transfer
obligations were violated. The basis remains confined to pendency
of the civil suit and the alleged non-disclosure thereof. When the
Rule itself does not recognise such circumstance, the conclusion of
breach becomes unsustainable.
25.The objection raised by the State regarding execution of the
sale deed in favour of a company instead of the named individuals
also requires consideration. It is true that the permission order
refers to individuals and ordinarily the transaction is expected to
conform to such permission. At the same time, the petitioners have
explained that the company was the purchasing entity and that the
individuals named were its directors. The Act regulates transfer of
agricultural land with certain safeguards. It does not appear from
the record that the authority has demonstrated any breach such as
transfer to an ineligible person or violation of ceiling limits or
misuse of land. Therefore, although the objection of the State
raises some doubt, it is not sufficient to invalidate the entire
transaction, particularly after long passage of time. The
consequence of cancellation is serious and cannot be based on a
technical deviation unless it strikes at the root of legality.
26.In that view of the matter, the reasons assigned by the
Additional Collector proceeds on a ground not contemplated by
the statutory scheme. The finding of suppression is not supported
by the scheme of Section 43 read with Rule 25-C. Consequently,
the basis for invoking cancellation stands weakened. This aspect,
when read with delay and completion of the transaction, supports
the conclusion that the impugned action cannot be sustained.
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27.In view of the foregoing discussion and for the reasons
recorded hereinabove, the following order is passed:
(i) The writ petition is allowed;
(ii) The order dated 3 October 2008 passed by the
Additional Collector, Raigad, Alibaug is quashed and set
aside;
(iii) The order dated 13 June 2012 passed by the President,
Maharashtra Revenue Tribunal, Mumbai, recalling the earlier
order, is also quashed and set aside;
(iv) The judgment and order dated 11 April 2012 passed by
the President, Maharashtra Revenue Tribunal, Mumbai in
Revision Application No. TNC/REV/400/B/2008 is restored;
(v) The sale transaction effected pursuant to the
permission dated 23 April 1997 and the consequential
mutation entries shall stand revived and shall continue to
operate in accordance with law;
(vi) Rule is made absolute in the aforesaid terms. There
shall be no order as to costs.
(vii) All pending interlocutary application(s) stand disposed
of as infructuous.
(AMIT BORKAR, J.)
20
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