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1986 (11) TMI 394 - HC - Indian Laws

Issues Involved:
1. Whether Article 7 of Schedule I of the Bihar and Orissa Public Demands Recovery Act, 1914, entitles the Collector to recover the agreed settlement amount from the settlee of a hat, bazar, or mela in the absence of a duly executed registered lease deed.

Detailed Analysis:

1. Entitlement of the Collector under Article 7 of Schedule I of the Act:
The core issue is whether the Collector can recover the settlement amount from the settlee without a registered lease deed under Article 7 of Schedule I of the Bihar and Orissa Public Demands Recovery Act, 1914. The petitioner argued that no interest in land above Rs. 100 can be created without a formal, registered deed, and thus, Article 7 should be narrowly construed. The petitioner relied on previous judgments, particularly S.A. Mannan v. State of Bihar and Prabhunath Singh v. The State of Bihar, which supported this view.

The court examined the language of Article 7, which allows recovery of "any demand payable to the Collector by a person holding any interest in land, pasturage, forest-rights, fisheries or the like." The court emphasized the broad and liberal interpretation of "any interest" in land, which includes a wide range of interests beyond just legal title or right. The court noted that a lease for a year or less can be created by oral agreement and delivery of possession, thus creating an interest in land even without a registered deed.

2. Interpretation of "Any Interest" in Land:
The court highlighted that the term "interest" should not be narrowly construed as "right, title, and interest" in land. Instead, it should be given its broad dictionary meaning, which includes any stake, share, or right to some advantage. The court pointed out that the legislature deliberately used the term "any interest" to encompass a wide range of interests, not just those requiring formal registration.

3. Historical and Legislative Context:
The court delved into the history and purpose of the Act, emphasizing that it was designed to provide a special procedure for the recovery of public demands, including various types of revenue and dues. The court noted that the Act and its Schedule I have a wide-ranging definition of public demands, which includes any arrear or money mentioned or referred to in the schedule.

4. Comparison with Other Articles in Schedule I:
The court compared Article 7 with other articles in Schedule I, noting that they cover a wide range of public demands, including arrears of revenue, money due from sureties, and fees awarded by revenue authorities. The court pointed out that Article 9 specifically mentions a written instrument, while Article 7 does not, indicating that a written instrument is not a prerequisite for recovery under Article 7.

5. Practical Implications and Avoidance of Anomalous Results:
The court argued that a narrow interpretation of Article 7 would lead to anomalous and mischievous results, such as allowing settlers to defalcate collected tolls without any recourse for the Collector. The court emphasized that the intent of the legislature was to provide a broad mechanism for recovering public demands, and a narrow interpretation would defeat this purpose.

6. Rejection of Previous Judgments:
The court critically analyzed the judgments in S.A. Mannan v. State of Bihar and Prabhunath Singh v. The State of Bihar, concluding that they did not adequately consider the broader legislative intent and the wide-ranging language of Article 7. The court overruled these judgments, holding that they did not correctly interpret the law.

Conclusion:
The court concluded that Article 7 of Schedule I to the Act entitles the Collector to recover the agreed settlement amount from a settlee of a hat, bazar, or mela even in the absence of a duly executed registered lease deed. The writ petition was dismissed, and the court upheld the findings of the Certificate Officer and the appellate authority that the petitioner had collected tolls and was liable for the settlement amount. The parties were directed to bear their own costs due to the legal intricacy and previous precedent.

 

 

 

 

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