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Sh. Sukhbir vs Financial Commissioner & Ors.
2011 Latest Caselaw 1404 Del

Citation : 2011 Latest Caselaw 1404 Del
Judgement Date : 10 March, 2011

Delhi High Court
Sh. Sukhbir vs Financial Commissioner & Ors. on 10 March, 2011
Author: Rajiv Sahai Endlaw
          *IN THE HIGH COURT OF DELHI AT NEW DELHI

                                                        Date of decision: 10th March, 2011

+                                        W.P.(C) 9033/2009

%         SH. SUKHBIR                                                         .... Petitioner
                                         Through:            Mr. Davinder Verma, Advocate

                                                   Versus

          FINANCIAL COMMISSIONER & ORS.        ....Respondents
                      Through: Ms. Bandana Shukla, Advocate for
                               Ms. Ruchi Sindhwani, Advocate for
                               R-1 to R-5.
                               Mr. R.P. Vats & Mr. P.K. Dhamija,
                               Advocates for the purchasers.

                                                       AND

+                                        W.P.(C) 9430/2009

          SH. HAWA SINGH                                                     ..... Petitioner
                       Through:                              Mr. Davinder Verma, Advocate

                                                   Versus

          FINANCIAL COMMISSIONER & ORS. ..... Respondents
                      Through: Ms. Bandana Shukla, Advocate for
                               Ms. Ruchi Sindhwani, Advocate for
                               R-1 to R-5.
                               Mr. R.P. Vats & Mr. P.K. Dhamija,
                               Advocates for the purchasers.

                                                       AND
W.P.(C) Nos.9033/09, 9430/09, 9487/09, 9515/09, 11111/09, 11249/09 & 11314/09        Page 1 of 18
 +                                        W.P.(C) 9487/2009
          SUKHBIR                                                            ..... Petitioner
                                         Through:            Mr. Davinder Verma, Advocate
                                                   Versus
          FINANCIAL COMMISSIONER & ORS. ..... Respondents
                      Through: Mr. Arun Kumar Sharma, Adv. for
                               R-1 to R-5.
                               Mr. R.P. Vats & Mr. P.K. Dhamija,
                               Advocates for the purchasers.
                                                       AND
+                                        W.P.(C) 9515/2009

          HAWA SINGH                                                         ..... Petitioner
                                         Through:            Mr. Davinder Verma, Advocate
                                                   Versus
          FINANCIAL COMMISSIONER & ORS. ..... Respondents
                      Through: Mr. Arun Kumar Sharma, Adv. for
                               R-1 to R-5.
                               Mr. R.P. Vats & Mr. P.K. Dhamija,
                               Advocates for the purchasers.

                                                AND
+                                        W.P.(C) 11111/2009
          PARTAP SINGH                                             ..... Petitioner
                                         Through: Mr. D.C. Sharma, Advocate
                                              Versus
          THE GOVT. OF N.C.T.D. & ORS.           ..... Respondents
                       Through: Mr. R.P. Vats & Mr. P.K. Dhamija,
                                  Advocates for the purchasers.


W.P.(C) Nos.9033/09, 9430/09, 9487/09, 9515/09, 11111/09, 11249/09 & 11314/09        Page 2 of 18
                                                        AND
+                                        W.P.(C) 11249/2009
          HAWA SINGH                                                         ..... Petitioner
                                         Through:            Mr. Davinder Verma, Advocate
                                                   Versus

          FINANCIAL COMMISSIONER & ORS. ..... Respondents
                      Through: Mr. R.P. Vats & Mr. P.K. Dhamija,
                               Advocates for the purchasers.

                                                       AND
+                                        W.P.(C) 11314/2009
          PARTAP SINGH                                                        ..... Petitioner
                                         Through:            Mr. D.C. Sharma, Advocate

                                                   Versus

          THE GOVT. OF N.C.T.D. & ORS.           ..... Respondents
                       Through: Mr. R.P. Vats & Mr. P.K. Dhamija,
                                  Advocates for the purchasers.

CORAM :-
HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW
1.        Whether reporters of Local papers may
          be allowed to see the judgment?                                       No

2.        To be referred to the reporter or not?                                No

3.        Whether the judgment should be reported                               No
          in the Digest?


W.P.(C) Nos.9033/09, 9430/09, 9487/09, 9515/09, 11111/09, 11249/09 & 11314/09         Page 3 of 18
 RAJIV SAHAI ENDLAW, J.

1. These seven writ petitions have been filed against the common

order dated 29th January, 2009 of the Financial Commissioner

dismissing the eight Revision Petitions under Section 42 of the East

Punjab Holdings (Consolidation and Prevention of Fragmentation) Act,

1948 (Consolidation Act) preferred before it.

2. On enquiry, as to why the order on the eight Revision Petitions

has resulted in filing of seven instead of eight writ petitions, the

counsel for the "purchasers" states that W.P.(C) No.11112/2009

against the eighth Revision Petition was also preferred by Partap Singh

but which was dismissed for non prosecution on 26th August, 2009.

The counsel for the petitioners states that he has no instructions with

respect thereto.

3. The counsel for the petitioners Hawa Singh and Sukhbir Singh

has contended that Hawa Singh, Sukhbir Singh and Partap Singh were

the bhumidhars having 1/12th share each in land ad-measuring 240

Bighas 12 Biswas in village Pooth Khurd, Delhi. It is stated that thus

each of them was the Bhumidhar of 20 Bighas 1 Biswa of land. It is

further informed that Notification for consolidation was issued with

respect to the said village and the Consolidation Scheme sanctioned on

23rd February, 1998. It is urged that under Section 8 & 9 of the

Consolidation Act, post notification for consolidation, no transfer or

partition could be effected with respect to the village land. Attention is

invited to the Khatauni dated 20th May, 2006 with respect to the said

land also containing a notation that no permission for sale / transfer of

the land subject matter of consolidation shall be granted.

4. It is further the case of the petitioners Hawa Singh & Sukhbir

Singh that without their knowledge, five Sale Deeds were registered at

Bombay on 10th June, 1998, of which three were purportedly on behalf

of Hawa Singh and two were purportedly on behalf of Sukhbir Singh

of different portions of their land aforesaid in favour of different

purchasers and after the said transfer, petitioners Hawa Singh &

Sukhbir Singh were left with only 4 Bighas and 19 Biswas of land

each. It is further informed that the Sale Deeds were shown to be

executed on their behalf by their purported attorneys and consideration

was shown to have been paid before the Sub-Registrar.

5. The counsel for the petitioners states that the case qua Partap

Singh is the same and three Sale Deeds with respect to land of the

share of Partap Singh were also executed on the same date in favour of

three different purchasers, save that Partap Singh was left with land ad-

measuring 1 Bigha 16 Biswas only.

6. It is further the case of the petitioners that on the basis of Sale

Deeds aforesaid, the purchasers applied for mutation to the Tehsildar

then also functioning as the Consolidation Officer who without notice

to any of them carried out the said mutation on 13 th July, 1998.

7. The petitioners claim that they learnt of the mutation and the

Sale Deeds in favour of the purchasers when in repartition pursuant to

the consolidation proceedings, no allotment was made in their favour

with respect to the land subject matter of the Sale Deeds and which

stood mutated in the name of the purchasers.

8. The petitioners Hawa Singh & Sukhbir Singh took dual

remedies against the aforesaid. They filed appeals before the Deputy

Commissioner under Sections 64 & 65 of the Delhi Land Revenue Act,

1954 (Revenue Act) against the order of mutation averring mutation by

Tehsildar to be in violation of Section 23 of the Revenue Act as well as

in violation of Section 33 of the Delhi Land Reforms Act, 1954. They

also filed Revision Petitions aforesaid under Section 42 of the

Consolidation Act before the Financial Commissioner against the

allotment in re-partition in favour of purchasers.

9. However, Partap Singh did not prefer any appeal against the

mutation and was satisfied by preferring revision petitions only to the

Financial Commissioner.

10. It is in this manner that the eight Revision Petitions mentioned in

the initial part of this order were filed before the Financial

Commissioner. The Financial Commissioner in the order impugned in

these writ petitions has held that the petitioners had not even filed an

affidavit to counter the allegations of the purchasers that the petitioners

had received the sale consideration under the Sale Deeds and deposited

the same in the State Bank of India (SBI), Pooth Khurd, Delhi. The

Financial Commissioner thus observed that the non denial by the

petitioners proved that the sale transaction was finalized between the

parties and the petitioners had received the sale consideration. With

respect to the argument of the petitioners of the mutation on the basis

of Sale Deeds registered in Bombay being in violation of orders /

circulars dated 29th August, 1990 & 3rd October, 1996 of the Deputy

Commissioner, the Financial Commissioner held the same to be not

permissible in view of the judgment of Single Judge of this Court in

Rajinder Singh Vs. Financial Commissioner 122 (2005) DLT 151.

The Financial Commissioner held the Sale Deeds to have been thus

rightly registered and acted upon by the consolidation authorities.

11. Upon enquiry as to the fate of the appeals preferred by Hawa

Singh & Sukhbir Singh against the mutation to the Deputy

Commissioner, it is informed that the same were allowed by the

Deputy Commissioner on 23rd September, 2009. It is further stated

that one of the purchasers namely Smt. Devki Devi who was the

respondent in one of the appeals preferred by Hawa Singh, filed an

affidavit before the Deputy Commissioner denying that she had made

any purchase of land from Hawa Singh as attributed to her.

12. Upon enquiry as to whether any second appeals have been

preferred against the order aforesaid of the Deputy Commissioner, it is

stated that though none of the purchasers have filed any second appeal

but one person claiming to be assignee of Smt. Devki Devi has filed a

second appeal before the Financial Commissioner and which second

appeal is stated to be still pending.

13. The Counsels for the petitioners contend:

(i) that the land of each of the petitioners being 20 Bighas 1 Biswa

i.e. less than 8 standard acres (equal to 48 Bighas), the sale of

different portions thereof to different purchasers leaving balance

as aforesaid with each of the petitioners was in violation of

Section 33 of the Reforms Act restricting such transfers;

(ii) once the sale was in violation of Section 33 of the Reforms Act,

the same was void under Section 45 of the Reforms Act;

(iii) that the Financial Commissioner has wrongly imputed admission

to the petitioners of receipt of sale consideration when none

existed;

(iv) without prejudice to the aforesaid contentions, it is urged that

even if the petitioners are held to have received the sale

consideration, the same would still not validate the sale in as

much as under Section 42 of the Reforms Act, the sale in

contravention of Section 33 of the Reforms Act, even though

vesting the land in the Gaon Sabha, does not prevent the

transferor from suing for the balance sale consideration;

(v) It is thus urged that the invalidity under Section 33 of the

Reforms Act is irrespective of receipt of sale consideration;

(vi) that the purported Sale Deeds during the pendency of the

consolidation proceedings even otherwise could not have

conveyed any title in as much as immediately upon

consolidation the entire land vested in the common pool and

there was no question of the petitioners being entitled to convey

any title or transferring possession thereof;

(vii) it is contended that though all the aforesaid arguments were

raised before the Financial Commissioner in the Revision

petitions aforesaid but the Financial Commissioner without

adjudicating upon the same has merely on an admission wrongly

attributed to the petitioners of receipt of sale consideration

dismissed the Revision Petitions;

(viii) that the Financial Commissioner in exercise of powers under

Section 42 of the Act was not empowered to look into the sale

transactions and was only concerned with the orders made in the

course of consolidation proceedings and has erred in dismissing

the Revision Petitions on the basis of finding regarding the Sale

Deeds;

14. Per contra, the counsel for the purchasers has contended:

(i) that the petitioners have not initiated any proceedings

challenging the Sale Deeds;

(ii) that the petitioners had not denied deposit of sale consideration

in their account with the State Bank of India. On enquiry as to

whether the admission attributed to the petitioners of receipt of

sale consideration is in writing, it is informed that the purchasers

in their reply to the Revision Petitions had taken the said plea

and no rejoinder thereto was filed by the petitioners. On further

enquiry as to whether any opportunity was given to the

petitioners to file the rejoinder, though the answer is in the

affirmative but there is nothing before this Court to demonstrate

so;

(iii) the statement of the counsel for the petitioners of the appeals

having been decided by the Deputy Commissioner is

controverted and it is stated that the appeals are still pending;

(iv) it is contended that the notification under Section 4 of the Land

Acquisition Act, 1894 was issued with respect to the said land

on 7th August, 2000; notification under Section 6 of the Act was

issued on 11th September, 2000; possession of the land was

taken on 4th October, 2000 and award with respect to the land

made on 7th September, 2002. It is stated that in accordance

with the award, the compensation for acquisition of the land was

received by the purchasers and it is the purchasers alone who

sought a reference with respect to the award for compensation

for acquisition and which reference has also since been decided.

It is contended that the petitioners herein did not prefer any

claims whatsoever with respect to acquisition or seek any

reference. On interjection by the counsel for the petitioners that

the petitioners could not have made any such claim since the

land did not stand in their name, it is contended that any person

claiming any interest in land is entitled to make a claim with

respect to acquisition thereof;

(v) attention is invited to Section 67(b) of the Reforms Act to

contend that the right as Bhumidhar extinguishes on acquisition

of the land;

(vi) reliance is placed on Pyare Vs. Financial Commissioner 94

(2001) DLT 348 (DB) where the Division Bench of this Court

held that the Revenue Court ceases to have jurisdiction on

acquisition of the land. It is thus contended that the argument of

the petitioners of the Sale Deeds being in contravention of the

Reforms Act could not in any case, have been considered by the

Financial Commissioner;

(vii) it is contended that the petitioners have not approached this

Court with clean hands; they have suppressed from the petition

the factum of acquisition; having preferred appeals to the Deputy

Commissioner and of having filed affidavits before the

Tehsildar-cum-Consolidation Officer confirming the same.

15. The counsels for the petitioners have of course controverted all

the arguments of the counsel for the purchasers and have contended

that the acquisition was of a very small part of the land and the

remaining land is still in possession of the purchasers. The counsel for

the purchasers however states that only one plot allotted in repartition

for commercial purposes survives on acquisition.

16. In my view the order of the Financial Commissioner cannot be

sustained merely on the ground that a vital conclusion of the petitioners

having received the sale consideration could not have been arrived at

for the reason of non denial alone. The counsel for the purchasers has

been unable to show any documents / pleadings in which the

petitioners may have admitted the receipt of the sale consideration.

Rather the impugned order itself notices that it was the case of the

petitioners that the purchasers had committed fraud and records "the

counsel for the petitioner submitted that the petitioner had not received

any consideration for the alleged sale". It was further noted that it was

the case of the petitioners that they had neither executed the Sale Deed

nor the GPA on the basis whereof the Sale Deeds were executed. In the

face of recording the said pleadings of the petitioners, the Financial

Commissioner could not have, even if had felt the question of receipt

of sale consideration was relevant, dismissed the Revision Petitions

without proof of deposit of sale consideration in the bank account of

the petitioners.

17. I have enquired from the counsel for the purchasers whether the

purchasers have produced any document before this Court viz. a

certificate from any of the banks of deposit of sale consideration by

cheque or by cash in the said bank accounts. The answer is in the

negative. It is however argued that the documents were filed before

the Financial Commissioner. Suffice it is to state that there is no

mention thereof in the impugned order and even if there were any

documents, the Financial Commissioner has not proceeded on the basis

thereof and has merely returned the finding of receipt of sale

consideration on assumed non-denial thereof by the petitioners.

18. I am also of the view that once the Deputy Commissioner was

seized of the challenge to the mutation and on the basis of which

mutation allotment on repartition was made in favour of the

purchasers, irrespective of whether the Deputy Commissioner has till

now decided the appeals or not, the Financial Commissioner ought not

to have shown haste in deciding the Revision Petitions. If the

contention of the petitioners of such appeals having been decided in

favour of the petitioners by the Deputy Commissioner and no second

appeal thereagainst having been preferred is to be correct, then in any

case the two orders i.e. one impugned in these petitions and that of the

Deputy Commissioner which are inconsistent to each other, cannot be

allowed to stand.

19. With respect to the various other contentions noted hereinabove,

need is not felt to return any finding in as much as it is felt that the

same may prejudice the proceedings before the Financial

Commissioner on remand. Moreover, it is not deemed expedient by

this Court to in the first instance decide all the said contentions without

the same having been dealt with by the Financial Commissioner.

20. The petitions therefore succeed. The order dated 29 th January,

2009 of the Financial Commissioner is set aside. The matter is

remanded to the Financial Commissioner for decision of the Revision

Petitions afresh after dealing with all the contentions raised by the

respective parties including those recorded hereinabove.

No order as to costs.

RAJIV SAHAI ENDLAW (JUDGE) MARCH 10, 2011 „gsr‟

 
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