SARDAR GOVINDRAO AND OTHERS versus STATE OF MADHYA PRADESH
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SARDAR GOVINDRAO AND OTHERS v. STATE OF MADHYA PRADESH October 6, 1964 (P. B. GAJENDRAGADKAR, c. J., K. N. WANCHOO, M. HIDAYATULLAH, JlAGHUBAR DAYAL AND J. R. MUDHOLKAR JJ.) The C.P. and Berar Revocation of Land Revenue Exemptions Act, 1948, s. 5(3)-Descendant.< of former Cliiefs losing exemption entitled (O apply for tnoney grant or pension--Granting of pension, if conditions sallsfied, 'K'hether discretionary. The appellants who were descendants of a former ruling chief and had lost their exemption from land revenue as a result of the operation of s. 3 of the C.P. & Berar Revocation of Land Revenue Exemptions Act, 1948, applied for a pension or money grant under the provisions of s. 5 of the Act. Their petition was rejected by the State Government without reasons being recorded. They filed a writ petition under Art. 226 but the High Court held that the granting of a pension was completely within the discretion of the Government and the petition was therefore incompetent. In appeal before the Supreme Court the appellants contended that rejce· tion ot' their petition without any reasons being given amounted to no decision at all, and that once the conditions for the grant of a pension were satisfied it was obligatory on the State Government to make a grant of money or pension. On bchati of the State Government reliance was placed on the words of s. 5(2) that after enquiry in respect of the applica- tions the Government 'may pass such orders as it deems fit' and the directory word 'may' used in s. 5 ( 3) itself. HELD: (i) Sub-section (2) and (3) of s. 5 must be considered sepa- rately. Under sub-s. (2) all the applications for grant of money or pension had to be considered and Government could deal with them in several v.·ays. Notwithstanding its apparent discretion s. 5 (2) only enabled Government to pass orders as fit the occasion. (683 E-H]. In sub-s. (3) special classes namely religious and charitable institution.-. etc. and descendants of ruling chiefs had to be dealt '";th and therefore the discretion stood modified. The rule> highlighted the distinction between the two sub-sections because they provided for special enquiries in cases falling under sub-s. (3) (683 A-DJ. Enabling provisions sometimes acquire a compulsory force and in the present instance on the existence of the condition precedent. the grant of money or pension became obligatory on the Government notwithstanding that in sub-s. (2) the Government had power to pass such orders as it thought fit and in sub-s. (3) the word 'may' was used. Except in those cases where there were good grounds for not granting the pension, Govern· ment was bound to make a grant to those who fulfilled the desired condi- tions and the word 'may' in the third sub-section though apparently discre· tionary had to be read as 'must', [684 B·H]. Afaxv.·e/I on Interpretation of Statutes, referred to, (ii) In passing orders on the appellants' application Government had lo act in a quasi-judicial manner. The appellants had to be given an A B c D E F G H GOVINDRAO v. STATB (Hidayatlll/ah J,) 67 9 A oppo11Unlty to state their case and were also entitled to know why their claim had been rejected. [685 B-D]. M/1. Harl Nagar Sugar Mi/ls. Ltd. v: Shyam Sundar Jhunjhunwa/a and Others [1962) 2 S.C.R. 339, referred to. Order of the State Government set aside. B CIVIL APPELLATE JURISDICTION: Civil Appeal No. 182 of 1964. Appeal by special leave from the judgment and order dated April 20, 1959, of the Madhya Pradesh High Court in Misc. Peti- tion No. 325 of 1955. C S.-V. Gupte, Solicitor-General, W. S. Barlingay, S. T. Khirwar- D kar and A. G. Ratnaparkhi, for the appellants. M. S. K. Sastri and M. S. Narasimhan for I. N. Shroff, for th~ respondent. The Judgment of the Court was delivered by IDdayatullah J. The appellants claiming to be the descen- dants of former ruling chiefs in the Hoshangabad and Nimar Districts of Madhya Pradesh applied under the Central Provinces and Berar Revocation' of Land Revenue Exemptions Act, 1948, for grant of money or pension as suitable maintenance for themselves. E By that Act, every .estate, mahal, village or land which was exempted from the payment of the whole or part of land revenue by special grant of, or contract with the Crown, or under the provision of any law or rule for the time being in force or in pur- suance of.any other instrument was after the appointed date
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