Premium for transfer of protected agricultural land upheld, with valuation tied to sanction date and timely disposal required.

Section 43 of the Bombay Tenancy and Agricultural Lands Act, 1948 permits transfer of protected land for non-agricultural use only with prior sanction and payment of premium fixed by the State. The premium was treated as a condition for permission, not as a tax or fee, so the Government Resolution prescribing Jantri-based valuation was upheld. For determining premium, the relevant Jantri rate is the rate in force on the date of sanction, since payment is linked to the grant of approval. Applications for such permission cannot remain pending indefinitely and should be decided within a reasonable time, with reasons recorded for delay; a 90-day disposal period was indicated as the target.

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Issues: (i) whether the requirement under Section 43 of the Bombay Tenancy and Agricultural Lands Act, 1948 to pay premium for transfer of land for non-agricultural use, as implemented by the Government Resolution dated 4 July 2008, was unconstitutional or otherwise invalid; (ii) whether the Jantri rate applicable for determining premium was the rate prevailing on the date of application or on the date of sanction by the Collector; and (iii) whether applications for permission under Section 43 could be kept pending indefinitely or must be decided within a reasonable time.

Issue (i): Whether the requirement under Section 43 of the Bombay Tenancy and Agricultural Lands Act, 1948 to pay premium for transfer of land for non-agricultural use, as implemented by the Government Resolution dated 4 July 2008, was unconstitutional or otherwise invalid.

Analysis: Section 43 was part of an agrarian reform scheme under which land purchased by tenants could not be transferred except with prior sanction and on payment of an amount determined by the State Government. The payment was characterised as a premium for permission, not as tax or fee. The restriction was consistent with the statutory object of ensuring personal cultivation and preventing diversion of protected agricultural land to non-agricultural use without State consent. The Government Resolution only operationalised that statutory scheme by prescribing valuation through Jantri rates.

Conclusion: The challenge to Section 43 and the implementing Resolution failed; the provision was upheld.

Issue (ii): Whether the Jantri rate applicable for determining premium was the rate prevailing on the date of application or on the date of sanction by the Collector.

Analysis: The governing provision speaks of previous sanction, and the statutory scheme makes the grant of permission conditional upon approval by the Collector. Since the premium is payable as a condition for the grant of sanction, the relevant valuation is the one in force when sanction is granted, not when the application is filed.

Conclusion: The Jantri rate on the date of sanction governs.

Issue (iii): Whether applications for permission under Section 43 could be kept pending indefinitely or must be decided within a reasonable time.

Analysis: Although the statute does not prescribe a specific outer limit, applications for permission affecting property rights and land use cannot remain pending indefinitely. Administrative fairness and reasonableness require timely disposal, and a long delay would defeat the purpose of the statutory mechanism.

Conclusion: The Collector should endeavour to decide such applications within 90 days and, if delayed, record reasons for the delay.

Final Conclusion: The appeals did not merit interference, the statutory and executive framework for levy of premium on transfer of land for non-agricultural use was sustained, and a time-bound approach was directed for disposal of pending applications.

Ratio Decidendi: Where a statute permits transfer of protected land only with prior sanction and on payment of an amount fixed by the State, the premium is a condition of permission, the relevant valuation is the one prevailing on the date of sanction, and applications must be decided within a reasonable time.

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