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Issues Involved
1. Jurisdiction of Civil Courts to entertain the suit challenging the legality of the notification reducing rent rates. 2. Validity of the notification Ex. A-13 under Section 3(2) of the Madras Estates Land (Reduction of Rent) Act, 1947. 3. Compliance with procedural requirements by the Special Officer in determining rent rates. 4. Applicability of Section 8(1) of the Reduction of Rent Act in excluding Civil Court jurisdiction. Issue-wise Detailed Analysis Jurisdiction of Civil Courts The principal question was whether Civil Courts have jurisdiction to entertain and decide the suit challenging the legality of the notification Ex. A-13 dated November 2, 1949, which reduced the rates of rent for delta dry ryoti lands in the village of Kalipatnam. The trial court decreed the suit in part, but the High Court held that Civil Courts had no jurisdiction to entertain the suit. The appellant's counsel conceded that the question regarding the type of grant could only be decided by the Tribunal appointed under the Reduction of Rent Act, making the suit challenging the validity of Ex. A-1 declaring Kalipatnam village as an inam estate incompetent. However, the appellant argued that any finding by the Civil Court on the type of grant should be ignored by the Tribunal under the Reduction of Rent Act. Validity of Notification Ex. A-13 The appellant questioned the validity of the notification Ex. A-13 on the grounds that it was not made in strict compliance with Section 3(2) of the Reduction of Rent Act, and therefore, should not be immune from challenge in Civil Courts. The Reduction of Rent Act was enacted to reduce rents payable by ryots in estates governed by the Madras Estates Land Act, 1908, to levels comparable to those in ryotwari areas. The Act also empowered the State Government to appoint a Special Officer to recommend fair and equitable rates of rent for ryoti land. Procedural Compliance by the Special Officer The appellant argued that the Special Officer's determination of rent rates was based solely on the settlement register of an adjacent village, Losaragutlapadu, which did not contain entries for Kalipatnam. The Special Officer failed to conduct a factual inquiry into the soil and land conditions of Kalipatnam, relying instead on irrelevant material. This was considered a violation of the fundamental principles of judicial procedure. The Special Officer's obligation under Section 2 of the Reduction of Rent Act was to determine the average rate of cash rent per acre for each class of ryoti land in Kalipatnam based on relevant material, which was not fulfilled. Applicability of Section 8(1) Section 8(1) of the Reduction of Rent Act excludes the jurisdiction of Civil Courts to question the validity of certain orders and proceedings, including those made under Section 3(2). The general principle is that the exclusion of Civil Court jurisdiction must be explicitly expressed or clearly implied. Even if jurisdiction is excluded, Civil Courts can examine cases where the Act's provisions have not been complied with or where the statutory Tribunal has not acted in conformity with judicial procedure. The appellant argued that the exclusion of jurisdiction does not apply to orders not made in strict compliance with Section 3(2). The respondent contended that Ex. A-13 was made under Section 3(2) and thus covered by Section 8(1), precluding Civil Courts from considering its correctness. Conclusion The Supreme Court concluded that the determination by the Special Officer was based on no evidence and violated the fundamental principles of judicial procedure. Consequently, the order of the Government made under Section 3(2) based on the Special Officer's recommendation was not in conformity with the Reduction of Rent Act. Therefore, Section 8(1) was inapplicable, and the jurisdiction of Civil Courts was not excluded. The notification Ex. A-13 was struck down as contrary to law and ultra vires the Reduction of Rent Act. The appeals were allowed, and the report of the Special Officer and the notification Ex. A-13 were struck down. The authorities were permitted to proceed to reduce the rent in accordance with the law. The appeals were allowed with costs.
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