1955 (2) TMI 20 - SC - Indian Laws

Summary

Issues Involved:
1. Liability of lands to be assessed to revenue under the Bombay City Land Revenue Act, 1876.
2. Rights of the occupants under the Foras Act, 1851.
3. Effect of land acquisition proceedings under the Land Acquisition Act, 1857.
4. Impact of the sale deed (Exhibit A) on the right to assess.
5. Interpretation of Section 8 of the Bombay City Land Revenue Act, 1876.
6. Construction of Crown grants and their implications.

Detailed Analysis:

1. Liability of Lands to be Assessed to Revenue under the Bombay City Land Revenue Act, 1876:
The primary issue was whether certain lands within the City of Bombay were liable to be assessed to revenue under the Bombay City Land Revenue Act, 1876. The lands in question were originally known as Foras lands and were acquired by the Government for the B.B.C.I. Railway between 1864 and 1867. These lands were later sold to private parties in 1938.

2. Rights of the Occupants under the Foras Act, 1851:
The respondents argued that under the Foras Act, 1851, the maximum assessment leviable on the lands was 9 reas per burga and that this right limited the Government's ability to enhance the assessment. The court noted that the Foras Act granted lands to occupants on a permanent tenure but did not grant them on a permanent assessment. The court concluded that the Foras Act conferred a specific limit on the assessment, which was 9 reas per burga.

3. Effect of Land Acquisition Proceedings under the Land Acquisition Act, 1857:
The respondents contended that the land acquisition proceedings extinguished the Government's right to levy assessment. The court disagreed, stating that the right to levy assessment is a prerogative right of the Crown, paramount to ownership and not an interest in land. The court held that the acquisition extinguished the rights of the occupants but not the Government's right to levy assessment.

4. Impact of the Sale Deed (Exhibit A) on the Right to Assess:
The respondents argued that the sale deed conveyed the lands as revenue-free. The court found no recital in the deed that the lands were to be held revenue-free. Instead, the deed provided that the properties would be subject to all cesses, taxes, rates, assessments, dues, and duties. The court concluded that Exhibit A did not confer a right to hold the lands free from assessment.

5. Interpretation of Section 8 of the Bombay City Land Revenue Act, 1876:
Section 8 of the Act mandates the Collector to fix and levy the assessment for land revenue. The respondents argued that they had a specific right limiting the Government's right to assess the lands. The court held that the respondents were "superior holders" as defined in the Act and that their rights were to be determined in accordance with Section 8. The court concluded that the respondents failed to establish a right to hold the lands free from assessment.

6. Construction of Crown Grants and Their Implications:
The court discussed the principles of construing Crown grants, stating that a grantee from the Crown gets only what is granted by the deed, and nothing passes by implication. The court found that the sale deed (Exhibit A) did not grant the respondents any right to hold the lands revenue-free. The court also noted that the Foras Act was repealed in 1870, and any rights under it were no longer available.

Conclusion:
The court allowed the appeal, set aside the judgments of the lower courts, and dismissed the suits instituted by the respondents. The court held that the right of the appellant to levy assessment under Section 8 of the Bombay City Land Revenue Act, 1876, was not limited by any right in the respondents. The lands were liable to be assessed to revenue as per the provisions of the Act.