Supreme Court Rules on Land Transfer Under U.P. Consolidation of Holdings Act

The case of Suraj Pal (D) Through L.R. v. Ram Manorath & Others revolved around the question of whether permission from the Settlement Officer (Consolidation) was required before transferring certain land under Section 5(c)(ii) of the U.P. Consolidation of Holdings Act. The Supreme Court upheld the High Court’s ruling that no such permission was necessary since the land in question was outside the scope of the consolidation scheme.

Background of the Case

The dispute centered on a plot of land used as ‘Abadi’ (residential land), declared as ‘Chakout’ (outside the consolidation scheme) after a preliminary survey. The land was originally held by four brothers, one of whom executed a sale deed for his one-fourth share in favor of the respondents. The remaining three brothers challenged the sale, arguing that it was void due to the absence of permission from the Settlement Officer (Consolidation), as required under Section 5(c)(ii) of the Act.

Legal Issues Before the Court

• Whether land designated as ‘Chakout’ requires permission from the Settlement Officer (Consolidation) before transfer.
• Whether the High Court had the jurisdiction to review and reverse a prior decision.
• Whether the land, though excluded from the consolidation scheme, still fell under the provisions of the Act.

Arguments by the Parties

Petitioner’s Arguments

The petitioners, who opposed the sale, contended that:

• Any transfer of land from a tenure-holder during consolidation proceedings required prior permission under Section 5(c)(ii).
• Even though the land was designated as ‘Chakout,’ it remained a part of the holding and should be regulated under the Act.
• The High Court’s decision to reconsider the matter exceeded the permissible scope of review.

Respondents’ Arguments

The respondents, who purchased the land, countered that:

• The land was explicitly excluded from the consolidation scheme, making Section 5(c)(ii) inapplicable.
• The objective of the U.P. Consolidation of Holdings Act was to regulate agricultural holdings, not residential land.
• Since the land could not be reallocated under the scheme, requiring permission for transfer was unnecessary.

Supreme Court’s Judgment

The Supreme Court, comprising Justices Madan B. Lokur and Deepak Gupta, upheld the High Court’s ruling that no permission was required for the land’s transfer.

“The purpose of a consolidation scheme is to provide consolidation of agricultural holdings. Abadi land, groves, etc., are kept outside the scope of consolidation schemes. They cannot be re-allocated or re-allotted to any other person.”

The Court emphasized that the Act was designed to manage agricultural land, not residential plots, and that permission requirements under Section 5(c)(ii) applied only to lands within the consolidation scheme.

Key Legal Observations

• The consolidation scheme applies only to agricultural land and does not regulate ‘Chakout’ land.
• The transfer of land not subject to consolidation proceedings does not require prior permission.
• The High Court had the authority to correct its prior ruling if an apparent error in law was identified.

Final Order

The Supreme Court dismissed the appeal, affirming the High Court’s judgment and vacating the stay order that had previously been granted.

Conclusion

This judgment clarifies that land excluded from consolidation schemes can be freely transferred without government approval. It reaffirms the limited scope of the U.P. Consolidation of Holdings Act, ensuring that unnecessary restrictions are not imposed on transactions involving non-agricultural land.

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Download Judgment: Suraj Pal (D) Throug vs Ram Manorath & Other Supreme Court of India Judgment Dated 11-08-2017.pdf

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