SHARANAPPA BASAPPA DINDAWAR versus STATE OF KARNATAKA AND ORS.

Citation: [1996] SUPP. 5 S.C.R. 317 · Decided: 28-08-1996 · Supreme Court of India · Bench: K. RAMASWAMY, K. VENKATASWAMI · Disposal: Appeal(s) allowed
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Judgment (excerpt)

SHARANAPPA BASAPPA DINDAWAR 
A 
v. 
STATE OF KARNATAKA AND ORS. 
AUGUST 28,-1996 
[K. RAMASWAMY AND K. VENKATASWAMI, JJ.) 
B 
Land Laws: 
Kamataka Land Refonns Act, 1961: 
Sections 2(7), 63, 66 and 76-Rural land-Ceiling limit-..!'E.xchange of C 
land" after the appointed day-Whether could be added to the other land 
retained by the holder in calculating the ceiling area-High Court holding that 
it should be included-On appeal held, the appellant did not intend to defeat 
·the provisions of the Act-Nor did he alienate the holding he had p1ior to the 
exchange-On the other hand he enlarged his holdinfj 17ieref ore the land D 
held by him by exchange cannot be included in his holding. 
Words & Phrases : 
"E.xchange"-Meaning of in the context of S.118 of the Transfer of 
Property Act, 1882. 
E 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 3809 of 
1990. 
From the Judgment and Order dated 17.11.89 of the Karnataka High 
Court in W.A. No. 1830 of 1984. 
F 
Ms. Kiran Suri for the Appellant. 
M. Veerappa for the Respondents. 
The following Order of the Court was delivered : 
G 
This appeal by special leave arises from the judgment and order of 
the Karnataka High Court made on November 17, 1989 in Writ Appeal 
No. 1830/84. The admitted position is that under Section 66 of the Kar-
nataka Land Reforms Act, 1961, as amended by 1974 Amendment Act (for 
short, the 'Act') the ceiling area has been determined as 54 acres. "fhe H 
317 
318 
SUPREME COURT REPORTS (1996) SUPP. 5 S.C.R. 
A 
appellant had in his· possession 15 acres 6 gunthas in Survey No. 102 and 
28 acres 10 gunthas in Survey No. 28/2 in Ankalagi Village in Bijapur taluk. 
By a registered exchange deed dated August 18, 1971, the appellant had 
exchanged 28 acres 10 gunthas of land with Gurappa Bhimaraya Birdar's 
30 acres 24 gunthas of land in Survey No. 175 of the same village. Earlier, 
B 
he had total extent of 43 acres 16 gunthas and by virtue of the exchange 
deed, he had 45 acres 30 gunthas. Thus, he remained within the ceiling 
limit of rural land. 
The question that arises is : whether the 30 acres 24 gunthas of land 
obtained by the appellant in exchange of 28 acres 10 gunthas could be 
C 
included in his .total holding of 43 acres 16 gunthas? The High Court relying 
upon the explanation to sub-section (10) of Section 63 construed that since 
the appellant had 30 acres 24 gunthas by exchange after January 24, 1971, 
the said land should also be included in his holding in addition to 15 acres 
6 gunthas and 28 acres 10 gunthas situated in the aforestated survey No. 
D Thereby, the appellant was found in excess of the ceiling limit. Accordingly, 
the surplus land was directed to be surrendered. Thus, this appeal by 
special leave. 
The Act had come into force on March 15, 1962. The Amendment 
Act came into force on March 1, 1974. Section 2(7) defines 'ceiling area' 
E 
to mean an extent of land which a person or family is entitled to hold under 
Section 63. The Act does not define the word "exchange". Section 118 of 
the Transfer of Property Act, 1882 defines "exchange" and provides that 
where two persons mutually transfer the ownership of one thing for owner-
ship of another, neither thing or both things being money only, the trans-
F 
action is called an 'exchange'. It would thus be clear that transfer of the 
property is complete between two persons in the manner provided under 
the transfer of the property by way of exchange duly registered under the 
Registration Act. The exchange deed having been duly registered between 
the two persons by operation of Section 17 of the Registration Act, the 
right, title and interest of the land held by the two persons stood mutually 
G transferred to each other. Consequently, 28 acres 6 gunthas of land held 
by the appellant in Survey No. 28/2 stood exchanged with 30 acres 24 
gunthas of the land in Survey No. 175 belonging to Gurappa Bhimaraya 
Birdar; thereby, the appellant got 30 .acres 24 gunthas while Gurappa 
Bhimaraya Birdar had 28 acres 10 gunthas of the land. The appellant by 
H virtue of exchange came to possess land to the extent of 45 acres 30 
S.B. DINDA WAR v. STATE 
319 
gunthas. 
A 
The question then emerges : whether the appellant has come to 
possess land in excess of the ceiling limit? It is true that by virtue of 
exchange, on and after January 24, 1971, if the land which was found to be 
in excess of the ceiling limit but stood transferred, necessarily, by operation 
of the explanation to sub-s
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