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TMI Blog1969 (1) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... Powers) Act, the Government of U. P. appointed the Collector, Deoria, as the authorised controller of the company. On August 8, 1955, the Land Reforms Commissioner sanctioned the proposal submitted by the Collector, Deoria, to sell the holdings and the property of the company for realizing Rs. 8,38,176-13-0. Sardar Jagjit Singh, Chief Engineer, Indian Institute of Sugar Technology, Kanpur, valued the movables belonging to the company, i.e., tools and workshop plant, mill stores, spare parts and furniture at Rs. 7,64,817 and the lands and the factory at Rs. 23,75,000. Thereafter a sale proclamation was issued on October 4, 1955, for recovery of the total amount of Rs.8,38,176-13-0. The sale was fixed for November 8 1955. In the first instance only the movables were put up for sale by the Collector, Deoria, but the highest bid offered was Rs. 2,75,000. The Collector then put up for sale the immovable property for which a bid of Rs. 23,50,000 was made and accepted. The movables were then put up for sale and the highest bid for Rs. 2,75,000 was accepted. The purchases of both the lots were the Cawnpore Sugar Works Ltd., through their managing agent, Tulsidas Mundra, respondent No. 7 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us Acts which make the realization of sums becoming due under those Acts as arrears of land revenue and in view of the provisions of the Act the Collector has got a duty and a statutory obligation to realise those sum. He has no discretion in the matter. Consequently I read the words 'may realise the same from the interest of the defaulter in any immovable property' in sub-section (1) or 'may be recovered from any immovable property of the defaulter' in sub-section (2) as meaning that if the Collector does not succeed in recovering the amount by having recourse to the processes mentioned in clauses (a) to (e) of section 279 of the Act he shall sell the immovable property of the defaulter." The learned judge also observed that the Collector acted in violation of the statutory provision contained in section 286(2) of the Act in selling the immovable property before selling the movable property, but the sale could not be set aside, because substantial injury was not shown to have been caused. The company has appealed to this court against the order passed by the High Court confirming the order passed by Oak J. In this appeal, it is urged in the first instance, that the company pos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could be attached and sold only after the processes prescribed in section 279, clauses (a) to (e), were resorted to and the Collector was unable to recover the dues. It was urged that this is the true effect of section 286(1) and section 279 of Act 1 of 1951. Section 286 (1) provides : "If any arrears of land revenue cannot be recovered by any of the processes mentioned in clauses (a) to (e) of section 279, the Collector may realize the same by attachment and sale of the interest of the defaulter in any other immovable property of the defaulter." Section 279 of the Act sets out the procedure for recovery of arrears of land revenue. The section as it stood at the date of sale provided : "An arrear of land revenue may be recovered by any one or more of the following processes : (a) by serving a writ of demand or a citation to appear on any defaulter, (b) by arrest and detention of his person, (c) by attachment and sale of his movable property including produce, (d) by attachment of the holding in respect of which the arrear is due, (e) by sale of the holding in respect of which the arrear is due, (f) by attachment and sale of other immovable property of the default ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue is due. But the restrictions on the power of the Collector operate only when land revenue is in arrears. Restrictions, if any, upon the power of the Collector to recover dues under other statutes, as arrears of land revenue, arises from the statute which is the source of the liability and not from Act 1 of 1951, which merely sets out the processes for recovery of the dues. To hold that sub-section (2) of section 286 requires the Collector in the first instance to recover out of the movable property or by arrest and detention of the defaulter before immovable property of the defaulter is attached and sold is to amend the substantive provisions of the Acts under which the liability for money due is recoverable as land revenue. For instance, under section 46(2) of the Indian Income-tax Act, 1922, it is provided : "The Income-tax Officer may forward to the Collector a certificate under his signature specifying the amount of arrears due from an assessee, and the Collector, on receipt of such certificate, shall proceed to recover from such assessee the amount specified therein as if it were an arrear of land revenue ; Provided that without prejudice to any other powers of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... connection with the recovery of miscellaneous dues as arrears of land revenue it is permissible to sell immovable property of the defaulter but subject to what is provided for in sub-section (1) ." We are also unable to agree with the observations made by the learned judge that " ... if sub-section (2) of section 286 of the Act were to be read in isolation and detached from sub-section (1) it would become impossible to administer the same. Sub-section (2) only provides that the arrears of miscellaneous dues may be recovered from any immovable property of the defaulter without specifying the manner in which they are to be recovered, that is to say, without indicating whether it would be recovered from the usufruct of the property or by its sale or by mortgage or lease." The provisions of the Act which authorise recovery of sums of money as arrears of land revenue do not require the Collector to follow any sequence of the processes for recovery : it is competent to the Collector to resort to any process prescribed by section 279 in aid of recovery of the dues which are recoverable as arrears of land revenue. It is unnecessary, in the circumstances, to consider whether the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake in publishing or conducting it, and it is therefore not liable to be set aside. It was finally contended that the company was prevented from exercising its right under rule 285-H of the rules framed under U. P. Act 1 of 1951, because the purchaser at the sale was appointed, by order of the Central Government, authorised controller of the factory of the company, and all the properties of the company were put in the possession of the purchaser, and that the company was unable to raise the requisite amount to be deposited under rule 285-H. Under rule 285-H any person whose holding or other immovable property has been sold under the Act may, at any time within thirty days from the date of sale, apply to have the sale set aside on his depositing in the Collector's Office-- (a) for payment to the purchaser, a sum equal to 5 per cent. of the purchase money ; and (b) for payment on account of the arrear, the amount specified in the proclamation in Z.A. Form 74 as that for the recovery of which the sale was ordered, less any amount which may, since the date of such proclamamation of sale have been paid on that account ; and (c) the cost of the sale. If the deposit is made, the ..... 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