MAHARANA SHRI JAYVANTSINGHJI RANMALSINGHJI ETC. versus THE STATE OF GUJRAT
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2 S.C.R. SUPREME COURT REPORTS 411 for attendance of the company "in person", but apart from that we wish to point out that the resolution made by the two companies do not appear to us to delegate the powers of the directors to Arjun Prasad. The conclusion of the High Court that the votes cast by Arjun Prasad on behalf of the two companies., viz., Bhandani Brothers and the Hindustan Coal Company, were not valid votes is, in our opinion, correct. The appeals are accordingly dismis~ed with costs. One set of hearing fee. Appeals d;ismisse,d. MAHARANA SHRI JAYVANTSINGHJI RANMALSINGHJI ETC. v. THE STATE OF GUJRAT (B. P. SINHA, c. J., s. K. DAS, A. K. SARKAR, N. RAJAGOPALA AYYANGAR and J. R. MUDHOLKAR, JJ.) Land Tenure, Abolition of-Amendment of enactment-If creates a new cla.!s of permanenl. tenanl8-0onslitutional validity-If infringes fundamental rights of erstwhile tenure· holdera--Bombay Land Tenure Abol-ition Laws (Amendment) Act, 1958 (Bom. LYII of 1958), ss. 3, 4, 6-0on•titution of India, Arts. U, 19 (1)(/), 31, 31-A. The petitioners, who were tenure-holders, challenged the constitutional validity of the Bombay Land Tenure Aboli- tion Laws (Amendment) Act, 1958 and in.particular ss. 3 and 4 read withs. 6 of that Act, as infringing their fundamental rights guaranteed by Arts. 14, 19 and 31 of the Constitution. Their case in brief was that those provisions by making certain non-permanent tenants permanent as from the commencement of the Bombay Taluqdari Tenure Abolition Act, 1949, enabled them to acquire occupancy right by payment of six times the assessment or the rent under s. 5A of that Act instead of 20 timea to 200 times the as>essment under s. 32H of ~e Bombay Tenancy and Agricultural Lands Act, 1948, 1951 .4rjun Prarad v. Sha•lital SiuJllkarl•I Shah 1961 Denmber 32. IHI Mo},o,ana 8/ari J oywntJ iltglej i R.-lriogJiii etc. v. T"' Slot. of Gufrat 412 SUPREME COU.KT REPORTS [1962] St:Pl'. a' amended in 1956, and thereby substantially deprived the petitioners of the rifhts acquired by them on the 'tillers' day, April 1, 1957, when they ceased to be tenur<-holders. It was urged that the impugned Act was a piece of colourable legis- lation in that it had confiscated, under the guise of defining a permanent tenant or changing a rule of evidence, a large part of rhc purchase price the pl"'tit10 tt>rs were cnti1lcd to from their tenants, and that the Stat : Legislature had not the competence to enact it as it was not saved by Art. 31A of the C orutitution. Held, (Sarkar and Mudholkar, JJ., dissenting), that ss. 3, 4 and 6 of the Bombay Land Tenure Abolition Laws (Amendment) Act, 1958, in so far as they deemed some tenants as permanent tenants in possession of Taluqudari land, were unconstitutional and void. Under the guise of chang- ing the definition of a permanent trnant and changing a rule of evidence, they really reduced the purchase price that the petitioners "'·ere entitled to receive under s. 32H of the Bombay Tenancy and Agriculrural L•n<ls Act, 1948, as amended in 1956, from some of their tenants on the "tillers' day." Per Sinha, C. J., and Das, J .-There can be no doubt that s. 4 of the impugned Act, properly construed, created a new class of permanent tenants not contemplated by s. 83 of the Bombay Land Revenue Code, 1879, and not in existence on the "tillers' day", and the combined effect of ss. 3, 4 and 6 of the impugned Act was that if the tenµre holder did not m•ke an appli:ation under s. 6 w,thin six months from the commencement of the impugned Act for a declaration that a tenant under him waJ not a permanent tenant, the name of the tenant would be recorded as a permanent tenant if he fulfilled the conditions lai<l down by s. 4 and thereafter he would be dremed under s. 3 to be a permanent tenant and under s. 4 all the provisions of the Taluqd;,ri Abolition Act 1949, would apply to him. The result of this combined effect would be to deprive the tenure-holder of any real opportunity of contesting the claims of the tenant and deprive him of the purchase prfce prescribed bys. 32H of the Bombay, Tenancy and Agricultural Lands Act, 1948. The right of the petitioners to the said purchase pr;ce from those of their tenants who were non-permanent on April J, 1957, was a right ofpropertf guaranteed by Art. 19 (I) (f) and the impugned sections adversely afl'cctrd that right with retrospe<:tive effe
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