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TMI Blog2018 (4) TMI 1665X X X X Extracts X X X X X X X X Extracts X X X X ..... ent with the findings of the High Court regarding the vesting of the land in the Government under the 1950 Act due to which the Plaintiffs were held disentitled for any compensation. The land owners may resort to any remedy available to them for payment of compensation to which they are entitled to - appeal dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted in the written statement that the land in dispute vested with the State Government by virtue of the Uttar Pradesh Sugar Undertakings (Acquisition) Act, 1971 (the 1971 Act) and Defendant No. 1 became the title holder of the property after the scheduled undertaking was transferred to it. The Defendants further pleaded that they have made permanent construction on the land which was being used for the purpose of the factory and they had become permanent lessees. The Trial Court relied upon the order passed by the S.D.O. Bijnor Under Section 143 of the 1950 Act on 20.01.1972 declaring that the land in dispute was not agricultural land. On the basis of the said order, the Trial Court held that the land was not agricultural land and the Plaintiffs had the right to lease out the land. The Trial Court found that the land did not vest in the State Government under the 1971 Act as, according to the Trial Court, only the leasehold interest in the land vested with the State Government. The Trial Court refused to grant a decree of eviction on the ground that the notice dated 10.12.1979 was not proved to have been served on the concerned person. The Plaintiffs were held to be entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, the possession of the scheduled undertaking was handed over only in the year 1979 to the Government. vi. A notice of termination of the lease was issued on 10.12.1979. The suit filed by the Plaintiffs was partly decreed by the trial Court on 14.04.1982 and fully decreed by the First Appellate Court on 01.08.1984. vii. During the pendency of the second appeal in the High Court, the Plaintiffs executed a sale deed in favour of the present Appellant on 29.11.2004. Notice was issued in the SLP on 20.07.2007 and leave was granted by this Court on 05.10.2009. 8. The point of vesting of the lands under the 1971 Act was adjudicated by all the three Courts below. We are of the opinion that determination of this issue will set at rest the controversy in this case. The Trial Court and the First Appellate Court held that the land did not vest in the Government under the 1971 Act and it was only the leasehold interest in the land that vested in the Government. Whereas, the High Court held that the land vested in the Government. 9. The 1971 Act was promulgated for acquisition of certain sugar undertakings. The Act was made in view of the serious problems created by the owners of certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l engineering works including leasehold interest therein are also treated as part of the Scheduled Undertaking. The test, therefore, is whether the asset or any interest therein is held or occupied "for purpose of a sugar factory". If the answer is in the affirmative, the same is treated to be a part of the Scheduled Undertaking that would vest in the Appellant Corporation upon acquisition. 11. A statute is best interpreted when we know why it is enacted. If a statute is looked at, in the context of its enactment, with the glasses of the statute maker, provided by such context, its scheme, the sections, clauses, phrases and words may take colour and appear different than when the statute is looked at without the glasses provided by the context. (Reserve Bank of India v. Peerless General Finance and Investment Co. Ltd. and Ors. (1987) 1 SCC 424 para 33). Reasons for the enactment of the 1971 Act are set out in the statement of objects and reasons. The serious problems created for the cane growers and labourers due to mismanagement of certain sugar mills led to a situation where the only solution was to acquire the said sugar mills with a view to renovate and rehabilitate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Hari Ram v. Babu Gokul Prasad [1991 Supp (2) SCC 608] where it occurs in Section 185(1) of the Madhya Pradesh Land Revenue Code, 1959. It was observed: (SCC p. 611, para 5) The word 'holds' is not a word of Article It has not been defined in the Act. It has to be understood in its ordinary normal meaning. According to Oxford English Dictionary, it means, to possess, to be owner or holder or tenant of. The meaning indicates that possession must be backed with some right or title. 12. Black's Law Dictionary defines 'Hold' as under: To possess in virtue of a lawful title; as in the expression, common in grants, "to have and to hold," or in that applied to notes, "the owner and holder." In the context of the 1971 Act, the word "held" connotes a wide meaning. All lands held or occupied lawfully and which were used for the purposes of the factory stood vested in the Government on the appointed day. The word 'held' in Section 2(h)(vi) cannot be interpreted as limited only to a holding as an owner of the property. Legal possession is sufficient for the lands to vest in the Government by forming part of the scheduled undert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leasehold lands it could have expressed the same by adding lands held on lease along with agricultural and grove lands. As per Section 2(h)(vi) all lands other than lands held or occupied for purpose of cultivation and grove lands are part of scheduled undertaking. In view of above, we are of the opinion that the land in dispute stood vested in the State Government on the appointed day i.e. 03.07.1971. 16. The findings recorded above would have been sufficient to dispose of the controversy in this case. But it has become necessary for us to deal with the findings of the High Court that the Plaintiffs are not entitled for any compensation for their lands. The reason given by the High Court is that the lease executed by the Plaintiffs was contrary to Section 156 of the 1950 Act. And, the consequence of the violation of Section 156 is that the transaction is void and the Plaintiffs lost all rights in the property as per Section 167 of the Act. 17. Undisputedly, the lease of the land was entered into between the parties prior to the 1950 Act coming into force. The Act of 1950 is not applicable to the land which was being used for non agricultural purposes prior to 1950. Land as defi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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