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Issues: (i) Whether the prohibition on transfer of immovable property in scheduled areas by non-tribals in favour of non-tribals is an unreasonable restriction and unconstitutional; (ii) Whether the expression "land" in the governing constitutional and regulatory framework includes structures raised thereon; (iii) Whether the statutory presumption against non-tribals in possession of lands in scheduled areas is invalid.
Issue (i): Whether the prohibition on transfer of immovable property in scheduled areas by non-tribals in favour of non-tribals is an unreasonable restriction and unconstitutional.
Analysis: The protection of Scheduled Tribes was viewed as a constitutional objective rooted in Articles 15(4) and 46 and in the Governor's power under the Fifth Schedule to regulate transfers in scheduled areas. The legislative scheme was upheld as an anti-exploitation measure intended to restore lands to tribals and prevent fresh alienation to non-tribals, who had historically secured tribal lands through unequal and exploitative dealings. The restriction was held not to be unreasonable merely because it applied to transfers by non-tribals inter se, since freezing the land pool would perpetuate past deprivation and frustrate the constitutional purpose. The challenge under Article 19(1)(f) was also considered in the context of the doctrine of eclipse, but the restriction was nevertheless examined on merits because of the continuing relevance of past transactions.
Conclusion: The prohibition was held to be a reasonable restriction and constitutionally valid, and the challenge failed.
Issue (ii): Whether the expression "land" in the governing constitutional and regulatory framework includes structures raised thereon.
Analysis: The term "land" was interpreted in its legal sense as a comprehensive expression, capable of including houses and other immovable structures attached to it. A narrow reading would defeat the object of the regulation because the prohibition could otherwise be circumvented by raising constructions on the land and transferring them along with the land. The broader construction was necessary to give effective operation to the protective scheme.
Conclusion: The expression "land" was held to include structures raised thereon, and the challenge on that ground failed.
Issue (iii): Whether the statutory presumption against non-tribals in possession of lands in scheduled areas is invalid.
Analysis: The presumption was treated as a rebuttable rule of evidence, justified by the special knowledge of the non-tribal possessor regarding title and acquisition. The burden-shifting rule was supported by the evidentiary principle reflected in Section 106 of the Indian Evidence Act, and was found necessary to make the protective legislation effective against concealed or benami transactions. The Court agreed with the view that the presumption was neither arbitrary nor unreasonable.
Conclusion: The presumption was upheld as valid.
Final Conclusion: The regulatory scheme protecting tribal lands in scheduled areas was sustained in full, and the appeals did not succeed.
Ratio Decidendi: A protective prohibition on transfer of lands in scheduled areas, even as between non-tribals, is constitutionally valid if it is a reasonable measure to prevent exploitation, preserve tribal landholding, and make the constitutional safeguard effective.