1998 (12) TMI 635 - SC - Indian Laws

Trust Lands Not Inheritable under Section 129(b) of Bombay Tenancy Act. Ordinary Law of Inheritance Excluded.

The Supreme Court held that the tenancy of lands belonging to trusts covered by Section 129(b) of the Bombay Tenancy and Agricultural Lands (Vidarbha ... - Issues Involved1. Applicability of Section 129(b) of the Bombay Tenancy and Agricultural Lands (Vidarbha Region) Act, 1958.2. Heritability of tenancy under Section 54 of the Tenancy Act of 1958.3. Exclusion of ordinary law of inheritance and succession.Issue-wise Detailed Analysis1. Applicability of Section 129(b) of the Bombay Tenancy and Agricultural Lands (Vidarbha Region) Act, 1958The appellants, being trusts for educational purposes or institutions for public religious worship, argued that their lands are covered under Section 129(b) of the Tenancy Act of 1958. This section exempts such lands from the application of most provisions of the Act, provided the entire income from these lands is appropriated for the purposes of the trust. The Collector had granted certificates to these trusts, confirming that they met the conditions specified in Section 129(b).2. Heritability of Tenancy under Section 54 of the Tenancy Act of 1958The core question was whether the tenancy of lands belonging to such trusts is heritable by the heirs of a deceased tenant. Section 54 of the Tenancy Act, which generally makes tenancies heritable, does not apply to lands covered by Section 129(b). Section 54 states that on the death of a tenant, the tenancy continues with the surviving members of an undivided Hindu family or to the tenant's heirs. However, this section is part of Chapter III, which is explicitly excluded by Section 129 for lands belonging to such trusts.3. Exclusion of Ordinary Law of Inheritance and SuccessionThe Full Bench of the Bombay High Court had previously held that even if Section 54 does not apply, the ordinary law of succession would make the tenancy heritable. The Supreme Court examined whether the exclusion of Section 54 also implied the exclusion of the ordinary law of inheritance. It was concluded that the exclusion of Section 54 necessarily implies the exclusion of the ordinary law of inheritance. The Act's intention is to make such tenancies non-heritable, as evidenced by the exclusion of Section 37, which preserves tenants' rights under any other law.ConclusionThe Supreme Court concluded that the tenancy of lands belonging to trusts covered by Section 129(b) is not heritable. The exclusion of Section 54 by Section 129(b) also excludes the application of the ordinary law of inheritance and succession. Therefore, the High Court's judgment, which held that the tenancy would be heritable under ordinary law, was incorrect. The appeals were allowed, and the High Court's judgment was set aside, with no order as to costs.