Deemed permission under land grant conditions cannot defeat public purpose, and breach can justify cancellation of the whole grant.

Deemed permission under the proviso to Section 65 of the Bombay Land Revenue Code was confined to use consistent with the grant and its statutory object; it could not be treated as authority to convert granted agricultural land for building or other non-agricultural use. On that construction, the challenge based on deemed permission failed and did not invalidate cancellation of the grant. Where the grantee used the land contrary to the grant by attempting conversion and sale for building purposes, the object of the allotment was frustrated, and the State was entitled to cancel the grant for the entire extent of land.

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Issues: (i) whether the proviso to Section 65 of the Bombay Land Revenue Code could be invoked to treat permission as deemed granted and thereby invalidate cancellation of the land grant; (ii) whether, on breach of the grant conditions, the Government was justified in cancelling the grant in respect of the entire extent of the land.

Issue (i): whether the proviso to Section 65 of the Bombay Land Revenue Code could be invoked to treat permission as deemed granted and thereby invalidate cancellation of the land grant.

Analysis: The proviso was held to contemplate permission only for use consistent with the grant and the statutory object. Deemed permission could not be treated as a licence to convert granted agricultural land to building or other non-agricultural use so as to defeat the purpose of the grant. The constitutional policy underlying the grant, including the promotion of agricultural production and social and economic justice under Articles 38, 39(b) and 46, supported that limited construction.

Conclusion: The contention based on deemed permission failed and did not invalidate the cancellation.

Issue (ii): whether, on breach of the grant conditions, the Government was justified in cancelling the grant in respect of the entire extent of the land.

Analysis: Once the grantee used the land contrary to the grant by attempting to convert it for building purposes and to sell it for that purpose, the object of the grant stood frustrated. The violation was not confined to a separable portion in the circumstances found, and the Government was entitled to revoke the grant to prevent circumvention of the public purpose for which the land had been allotted.

Conclusion: Cancellation of the grant for the entire extent of land was upheld.

Final Conclusion: The appeal failed in its entirety, and the order cancelling the grant was sustained.

Ratio Decidendi: Deemed permission under a grant condition cannot be used to defeat the statutory and public-purpose object of the allotment, and where the breach frustrates that object, the State may revoke the grant for the whole land.

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