Land assignment restrictions cannot survive full payment and government recognition of a later settlement deed creating enforceable rights.

Section 8 of the Kerala Government Land Assignment Act, 1960 was treated as inapplicable because the original alienation restriction operated only until the Government dues were fully paid. Once payment had been made, the Government recognized the later settlement deed by mutation and by issuing pattas in favour of the assignee's children, leaving no subsisting condition to which Section 8 could attach. The settlement therefore created enforceable rights in the children, and the State could not defeat those rights by relying on the earlier assignment restrictions. The adverse possession argument was also treated as irrelevant in light of the Government's recognition of the settlement.

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Issues: Whether Section 8 of the Kerala Government Land Assignment Act, 1960 applied so as to preserve restrictions in the original land assignment and prevent the children of the assignee from claiming separate units under the later settlement deed.

Analysis: The agreement governing the reclamation scheme imposed restrictions on alienation only until the amounts due to the Government by way of land value were fully paid. The amount had been paid before the settlement deed, and the Government had acted upon that settlement by effecting mutation and issuing pattas in favour of the children. In these circumstances, there was no subsisting patta or document containing a condition to which Section 8 could attach. The Court also treated the adverse possession argument as irrelevant once the Government itself recognized the rights created under the settlement.

Conclusion: Section 8 did not apply, and the children derived rights under the settlement deed; each was entitled to compensation for a separate unit.

Final Conclusion: The appeals failed because the later settlement was effective and the statutory restriction relied upon by the State could not defeat the rights created under it.

Ratio Decidendi: A restriction in an assignment agreement operates only so long as the stipulated obligations remain unperformed, and once the Government recognizes a subsequent settlement by mutation and issuance of pattas, Section 8 cannot be invoked to override the rights so created.

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