Supreme Court Rules on Sale of Deity’s Land Under Orissa Hindu Religious Endowment Act

The Supreme Court of India, in the case of State of Orissa & Anr. vs. Abani Ballav Dey & Ors., addressed the sale of land belonging to a religious institution under the Orissa Hindu Religious Endowment Act, 1951. The judgment, delivered by Justices Kurian Joseph and Rohinton Fali Nariman, settled a long-standing dispute concerning the disposal of the deity’s land, which had been occupied by private individuals since 1956.

Background of the Case

The dispute arose over the land belonging to the deity Sri Sri Raghunath Jew, located in Cuttack, Orissa. The land had been in possession of Respondents 1 and 2 for decades, and litigation concerning its ownership had been ongoing. The appellants, the State of Orissa, challenged a High Court order that allowed a compromise sale of the land without proper valuation and procedural approvals under the Orissa Hindu Religious Endowment Act.

Key Legal Issues

• Can land belonging to a religious institution be disposed of without proper authorization under the Endowment Act?
• Did the High Court err in approving a compromise sale at a rate lower than the market valuation?
• Should long-term occupants of religious land be granted ownership rights?

Arguments of the Parties

Petitioner’s Arguments (State of Orissa)

The State of Orissa contended that the land of the deity could not be disposed of through a compromise without following due process under Section 19 of the Orissa Hindu Religious Endowment Act. It argued that the High Court’s approval of the sale at Rs. 45 lakh was significantly below the market value, which was later estimated at Rs. 2.75 crores per acre.

Respondent’s Arguments (Abani Ballav Dey & Ors.)

The respondents maintained that they had been in possession of the land since 1956 and had constructed houses on it. They argued that the deity and the associated religious institution were in financial distress and that the sale of the land was necessary to generate funds for its maintenance.

Supreme Court’s Observations

Justice Kurian Joseph, delivering the judgment, noted:

“The deity/institution is badly in need of money, and having regard to the background of litigation, the property needs to be, in any case, disposed of.”

The Court observed that while the initial compromise amount was Rs. 45 lakh, subsequent valuation reports suggested a much higher market value. The Court directed that the property be sold for Rs. 2.75 crores instead, considering both the deity’s financial needs and the respondents’ long-term possession.

Final Verdict

The Supreme Court ruled that Respondents 1 and 2 could acquire ownership of the land by depositing Rs. 2.75 crores within three months. The Court emphasized that this judgment was case-specific and should not be treated as a precedent for future disputes involving religious land sales.

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Download Judgment: State of Orissa & An vs Abani Ballav Dey & O Supreme Court of India Judgment Dated 02-03-2016-1741853841305.pdf