KRISHAN MALHAR MIRASDAR versus SASWAD MALI SUGAR FACTORY LTD. AND ORS.

Citation: [1998] 1 S.C.R. 97 · Decided: 13-01-1998 · Supreme Court of India · Bench: S.B. MAJMUDAR · Disposal: Dismissed

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Judgment (excerpt)

KRISHAN MALHAR MIRASDAR 
A 
v. 
·'-\; 
SASWAD MALI SUGAR FACTORY LTD. AND ORS. 
JANUARY 13, 1998 
[S.B. MAJMUDAR AND M. JAGANNADHA RAO, JJ.] 
B 
;.. 
_, 
Tenancy and Land Laws : 
Bombay Tenancy and Agricultural Lands Act, 1948: Sections 43-A c 
(l)(a)&(3), 4 and 14 Sub-lessees-As deemed tenants-Lands leased to 
commercial undertaking viz. Sugar factory approved by State Government 
under S.43-A(1)(a)-Sugar factory further sub-leased to sub-lesses-
Notification issued under S. 43-A (3) made S.14 applicable to limited extent 
of prohibiting any sub-lease executed contrary to the provisions of lease-
Lease deed under which Sugar factory was given lease granted express D 
,.,.""'-. 
permission to the lessee to sub-let-Held: The prohibition contained in 
notification is inapplicable-S.14 applies to such leases by virtue of S.43-
A(I) as it was not one of the sections enumerated as excluded from their 
applicability to such leases-Sub-lessees of Sugar factory cannot be said to 
be in unlawful cultivation-Hence, sub-lessees became deemed tenants under 
S.4 which operates on its own. 
E 
Section 4-Deemed tenant-Held: A class apart from a lessee. 
Section 43-A(3)(d)-Scope of-Sub-lessees-As Purchasers of land-
Notification issued under S.43-A(3) laid down condition regarding "any 
other matter referred to in section mentioned in sub-section (I) "-Notification F 
..> 
-J.... 
laid down condition that when land leased to commercial undertaking viz 
Sugar factory approved under S.43-A(I) is sub-leased, such sub-lessee shall 
have a right to purchase the land within one year from expiry of the period 
during which lessor is entitled to terminate the lease under S.14 and that Ss. 
32 to 32-R shall, as far as may be applicable, apply to right of such lessees G 
to purchase that lands-Held: Notification under Sub-section (3) includes 
notification providing conditions for applicability of the sections which are 
-< 
excluded under Sub-section (1)-Hence, conditions not contrary to scope 
S.43-A(3). 
The appellants leased out lands belonging to it to the respondent-Sugar H 
97 
98 
SUPREME COURT REPORTS 
(1998] I S.C.R. 
A factory which was a commercial undertaking approved by the State Government 
under Section 43-A (l)(a) of the Bombay Tenancy and Agricultural Lands 
Act, 1948. Tiie State Government issued a notification under Section 43-
A(3) making Section 14 of the Act applicable to a limited extent of prohibiting 
any sub-lease executed contrary to the provisions of the lease. Under the 
lease deeds, which were renewed from time to time, the respondent-Sugar 
B factory, the original lessee, was permitted to sub-lease the said lands and 
accordingly, the sub-lessees came to occupy these lands at the relevant time 
when the leases were granted. The further notification under Section 43-
A(3) issued by the State Government laid down additional conditions one of 
them being that the sub-lessee shall have a right to purchase the land within 
C one year from the expiry of the period during which the lessor was entitled 
to terminate the lease under Section 14 and that Sections 32 to 32- R applied 
to the right of such sub-lessees to purchase the lands. 
Accordingly, the sub-lessees were treated as deemed purchasers of 
agricultural, lands cultivated by them in the light of the aforesaid notification. 
D A Division Bench of the High Court had upheld the said right of the sub-
lessees. Hence this appeal. 
E 
Dismissing the appeal, this Court 
HELD: I. It is an indisputable fact that the lease documents, under 
which the Sugar factory was given lease, gave express permission to the 
lessee to sub-let. Therefore, strictly speaking the prohibition mentioned in 
the notification to the effect that lea·ses would be terminated if lessees had-
sub let the lands contrary to the provisions of the lease did not apply. Section 
4 of the Bombay Tenancy and Agricultural Lands Act, 1948 applies to such 
F leases by virtue of Section 43-A(l) as it is not one of the sections enumerated 
as excluded from their applicability to such leases. Hence, sub-lessees of the 
Sugar factory came within the scope of the protective umbrella of Section 
4 the Act and became deemed tenants as it cannot be said that they were not 
lawfully cultivating these lands. 1103-B-G] 
G 
Dahya Lal v. Rasul Mohammed Abdul Rahim, 11963] 3 SCR 1, followed. 
Gopala Genu Wagale v. Mageshwardeo Palas Abhishekh Anusthan 
Trust, 11978) 2 SCC 47, held inapplicable. 
H 
2. By Section 4 of 

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