BAHADUR SINGH AND ORS. versus SHANGARA SINGH AND ORS.

Citation: [1994] SUPP. 5 S.C.R. 141 · Decided: 24-10-1994 · Supreme Court of India · Bench: M.N. VENKATACHALIAH · Disposal: Dismissed

Judgment (excerpt)

BAHADUR SINGH AND ORS. 
A 
v. 
SHANGARA SINGH AND ORS. 
OCTOBER 24, 1994 
[K. RAMASWAMY ANDN. VENKATACHALA, JJ.] 
B 
Punjab Occupancy Tenant's Vesting of Property Rights Act, 1952-
Sections 2 and 3-0ccupancy tenants-Continuation in possession from 
1931-Vesting of right of ownership in their favour by operation of law 
from June 15, 1951-0mission to have their names recorded in revenue 
records as occupancy tenants-Their accrued right of ownership not C 
defeated-No estoppel against statute. 
Respondents Nos. 5 to 15 were the tenants in occupation of the 
demised lands from December 16, 1931. The Punjab Occupancy 
Tenants' Vesting of Property Rights Act, 1952 came into force on June 
15, 1951. The names of the tenants had not been recorded in the D 
revenue records as occupancy tenants and they continued to pay the 
rent upto 1974, the year in which they sold the lands to respondents 
Nos. 1 to 5. The appellants- landlords claimed right to obtain 
declaration as owners and for possession of the land. The High Court 
refused to grant the relief. Hence this appeal. 
Dismissing the appeal, this Court 
HELD : 1.1. Respondent Nos. 5 to 15 who had become absolute 
owners of the property as on June 15, 1951 when they sold the property 
on June 19, 1974. Thereby, the appellants had no right to obtain 
E 
declaration as owners and for possession of the land as sought for. 
F 
(145-B) 
1.2. 
A perusal of Sections 2 and 3 of the Punjab Occupancy 
Tenants' Vesting of Property Rights Act, 1952 clearly indicates that 
occupancy tenant immediately before the commencement of the Act i.e. 
June 15, 1951, has been conferred with a right of ownership on the G 
demised lands and the pre-existing right, title and interest held by the 
owner has been extinguished by operation of law. The landlord has 
become entitled to receive and be paid such compensation as may be 
determined under the Act. The occupancy tenant is enjoined to pay 
direct to the Government only the land revenue accruing due in respect 
of the land. Thereby the pre-existing jural relationship of landlord and H 
141 
142 
SUPREME COURT REPORTS 
(1994) SUPP. 5 S.C.R. 
A 
tenant has been put to an end to by operation of law and the new 
relationship as an owner between him and the State has been created 
by operation of law. When the pre-existing right, title and interest of 
the landlord has been divested by operation of law, the contract under 
which the tenants came into possession on December 16, 1931 and the 
convenants contained thereunder no longer subsist and operate 
B 
between the erstwhile landlord and the tenant after the appointed date, 
namely, June 15, 1951. (144-E-F) 
c 
D 
E 
1.3. It is true that the names of the tenants had not been recorded 
in the revenue records as occupancy tenants and the tenants contint ~d 
to pay the rent upto 1974, the year in which they sold the lands to 
respondent Nos. 1 to 5. It would show the ignorance of the tenants and 
their truthfulness to abide by the contract. In view of the admitted 
tenancy and their continuation in possession from 1931, the accrued 
right in their favour by operation of law does not get defeated ·merely 
by omission to have their names recorded in their revenue records as 
occupancy tenants. Equally, the payment of the rent by them does not 
have the effect of divesting the rights, they had acquired under the 
statute. There is no estoppel against the statute. (144-G-H, 145-A) 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 7567 of 
1994. 
From the Judgment and Order dated 7.4.86 of the Punjab and Haryana 
High Court in R.S.A. No. 1292of1977. 
Anant Vijay Palli, Atul Shanna, E.C. Agarwala and Ms. Rekha Palli, 
for the Appellants. 
F 
J.K. Sibal, Ms. S. Bagga, (NP) and Ms. Kamini Jaiswal for the 
G 
Respondents. 
The following Order of the Court was delivered : 
Leave granted. 
This appeal arises from the judgment and order dated 7.4.1986 of the 
High Court of Punjab and Haryana made in Regular Second Appeal No. 
1292of1977. 
Admittedly, respondent Nos. 5 to 15 were the tenants in occupation of 
H 
the demised lands from December 16, 1931. The Punjab Occupancy 
BAHADUR SINGH v. SHANGARA SINGH 
143 
Tenant's Vesting of Property Rights Act, 1952, (for short 'the Act') came A 
into force on June 15, 1951. Section 2 of the Act defines "appointed day" 
and "occupancy tenant", thus: 
"(a) 'Appointed day' means -
(i) in relation to any tenant who, immediately before the B 
commencement of this Act, is record

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