SHRI GOKUL MAHTO versus THE STATE BANK OF BIHAR AND ORS.

Citation: [1999] 1 S.C.R. 885 · Decided: 24-02-1999 · Supreme Court of India · Bench: M. JAGANNADHA RAO, S.N. PHUKAN · Disposal: Dismissed
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Judgment (excerpt)

.... 
SHRI GOKUL MAHTO 
A 
v. 
THE STATE BANK OF BIHAR AND ORS. 
FEBRUARY 24, 1999 
[M. JAGANNADHA RAO AND S.N. PHUKAN, JJ.] 
B 
... 
Bihar Land Ref onns Fixation of Ceiling Area and Acquisition of 
Surplus Land Act, 1961; Sections 16(1) Explanation 16(3), 17 a11d 18. 
Pre-emptioit-Neighbour's light of pre-emption-Applicability to land c 
received in gift-Land gifted to fifth respo11dent by third respo11dent (her 
brother) 011 1 l.5.1982:-Appella11t a neighbour in respect of the said property 
claimed a light of pre-emption under Section 16(3 }--Application rejected by 
Board of Revenue and High Court on the ground that Section 16(3) does 
not apply to transfers by way of gift-Appeal before Supreme Court-Held D 
~ 
view taken by Board of Revenue and High Court is right--Explanation to 
,... 
Section 16(1) clearly excludes from the purview of the entire Sectio11 16 
trans[ ers by way of inheritance, bequest or gift. 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6974 of E 
1994. 
From the Judgment and Order dated 22.3.94 of the Patna High Court 
in C.W.J.C. No. 3314 of 1987. 
~ 
R.P. Kathuria, C.S. Ashri and Ms. Kailas~ Golani for the Appellant. 
F 
Ms. Naresh Bakshi (NP) for the Respondents. 
The following Order of the Court was delivered : 
This is an appeal by the appellant from the judgment of the Patna G 
High Court dated 22.3.1994 in Writ Petition No. CWJC 3314/87. By that 
judgment the High Court dismissed the writ petition, filed by the appellant, 
~ 
questioning the orders of the Board of Revenue dated 19.5.1987, allowing 
the revision filed by the respondent, and setting aside the orders passed by 
the authorities subordinate to the Board. 
H 
885 
886 
SUPREME COURT REPORTS 
(1999] 1 S.CR 
A 
The point arises under Section 16 of the Bihilr Land Reforms (Fixa-
tion of Ceiling Area and Acquisition of Surplus Land), Act, 1961. The 
appellant is a neighbour in respect of the property which was gifted to the 
fifth respondent by her brother, the third respondent, on 11.5.1982. The 
appellant claimed a right of pre-emption under Sub-clause (3) of Section 
B 16 of the abovesaid Act. 
Learned counsel for the appellant has contended that gifts do come 
within Sub-clause (3) of Section 16 in spite of the Explanation added below 
Sub-clause (1) of Section 16. According to counsel, the Explanation which 
excludes 'gifts' from the purview of Section (16) must be confined to 
C Sub-clause (1) of Section (16) only and cannot be applied for purposes of 
Sub-clause (3) of Section (16), which deals with the right of pre-emption 
of the neighbour. 
D 
E 
F 
G 
H 
Section 16 of the Bihar Land Reforms (Fixation of Ceiling Area and 
Acquisition of Surplus Land), Act 1961 reads as follows : 
16. Restriction on JUture acquisition by transfer, etc. - (1) No 
person shall after the commencement of this Act, either by himself 
or through any other person, acquire or possess by transfer, ex-
change, lease, mortgage, agreement, or settlement any land which 
together with the land, if any, already held by him exceeds in the 
aggregate the ceiling area. 
Explanation : For the purposes of this section 'transfer' does 
not include inheritance, bequest or gift. 
(2)(i) After the commencement of this Act, no document 
incorporating any transaction for acquisition or possession of any 
land by way of transfer, exchange, lease, mortgage, agreement or 
settlement shall be registered, unless a declaration in writing duly 
verified is made and filed by the transferee before the registering 
authority under the Indian Registration Act, 1908 (XVII of 1908), 
as to the total area of land held by him by himself or through any 
other person anywhere in the State. 
(ii) No such registering authority shall register any document 
evidencing any transaction if, from the declaration made under 
clause (i), it appears that the transaction has been effected in 
contravention of the provision of sub-section) (1). 
GOKUL MAHTO v. STATE BANK OF BIHAR 
887 
.. 
(iii) No land shall be transferred, exchanged, leased, A 
mortgaged, bequeath or gifted without a document registered in 
accordance with the provisions of the Indian Registration Act, 1908 
(XVII of 1908). 
Expla11atio11 - Nothing in this sub-section shall be deemed to 
have any effect on the provisions of the tenancy law of the area B 
.I, 
relating to transfer, exchange, lease, mortgage, agreement or set-
-
tlement. 
(3)(i) When any transfer of land is made after the commence-
ment of this Act to any
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