TaxTMI 
TaxTMI 
2021 (5) TMI 1099
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....es to permanently settle the leasehold lands in favour of the petitioners within a period to be fixed by this Court. 2. The factual matrix of the case, in a nutshell, is that one Late Bira Kishore Kar, son of Late ate Kishor Krushna Chandra Kar was the original lessee of the land appertaining to J. No. 66/1, Khata No. 414, Plot No. 389 (P), Area Ac. 0.172 dec. of Mouza- Ramagarh, Bholamia Bazar, Tahasil- Cuttack Sadar. The said lease was granted in his favour for a period of 30 years w.e.f. 01.04.1973 valid up to 01.04.2003. Late Bira Kishore Kar sold the aforesaid land to the present petitioners vide registered sale deeds executed on 04.11.1985 with due consideration, and since then all the petitioners are residing on the homestead land having constructed residential houses thereon and are in peaceful possession over the same. The petitioners are also paying holding tax as well as rent in respect of the suit land. 2.1 The petitioner no.1 purchased an area of Ac.0.068 dec. of plot no. 866/3657, holding no. 623, petitioner no.2 purchased an area of Ac.0.062 dec. of plot no. 866 of holding no. 623/A/1 and petitioner no.3 purchased an area of Ac.0.045 dec. of plot no. 866/3658 o....
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....nt. After submission of the above clarification, no approval was accorded by the Collector, Cuttack and the matter was kept pending for years together. 2.4 Further, the petitioners being in possession of the leasehold land with residential houses with demarcation boundary for more than five years by the appointed date, the Tahasildar, Sadar, Cuttack, having recommended the case of the petitioners for permanent settlement, in view of the provision of law that the leasehold estate of Khasmahal land is heritable and transferable with the right of renewal, the Collector therefore should have approved the leasehold land for permanent settlement in accordance with law. Though such recommendation had been made by the Tahasildar, Sadar, Cuttack way back in the year 2009, the matter is still pending in the office of the Collector for approval, even though the unnecessary queries made from the office of the Collector in the year 2015 were clarified by the Tahasildar, Sadar, Cuttack, vide letter no. 11644 dated 22.01.2016. Due to such inaction on the part of the Collector in the matter of according approval for permanent settlement of the above noted leasehold lands in favour of the petiti....
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....ja, learned Advocate General appearing for the State opposite parties contended that the issue involved in this case no more remains res integra to be considered by this Court, as it is well settled in Rajat Kumar Rath (supra). Therefore, the matter can be disposed of directing the Collector, posed dire Cuttack to make approval in accordance with the provisions contained in the OGLS Act, 1962 and Rules framed thereunder within a stipulated time. He also declined to file counter affidavit in the matter, though several adjournments were granted to the State in that regard. 5. This Court heard Mr. N.C. Panigrahi, petitioner no.1 in person for himself as well as on behalf of petitioners no.2 & 3; and Mr. A.K. Parija, learned Advocate General for the State opposite parties by virtual mode; perused the records and with the consent of the parties, the matter is being disposed of finally at the stage of admission. 6. In view of the facts delineated above, which are not in dispute, is it the bounden duty of the statutory authority, viz., the Collector, Cuttack to discharge his responsibility with the provisions of law in the matter of granting approval on the recommendation of the Tah....
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.... execution of lease deed in Form-IV. In case of sub-sease and subsequent sub-lease such settlement shall take effect on production of the stamped receipt in Form-1 from the date of payment of such compensation to the person immediately under whom they held the land. Provided that on each such settlement, approval of the Collector shall be obtained. (b) The amount of compensation shall be equal to 10 times of the annual rent as provided in the lease deed." From the above mentioned provisions, it is made clear that the Tahasildar, on being satisfied after causing enquiry that a Nazul/Khasmahal land has been used and occupied by any person as homestead for a period of not less than 5 years as on the appointed date, shall settle the said land in favour of the person holding such land, provided that for such settlement approval of the Collector shall be obtained. 10. There is no dispute that the petitioners are in possession of a Khasmahal land by constructing houses over the same and using the same as homestead land for a period not less than five years as on the so; appointed date and, more so, their vendor was in possession of the said land w.e.f. 01.04.1973, pursuant ....
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.... both hereditary and transferable. His rights are similar to those of owner of a private land. His interest is regulated by the terms of lease between him and the Khasmahal authorities and the parties to the lease are governed by the provisions of the Transfer of Property Act. It has been so stated in Janab Begum Sahib v. State of Orissa, 28 (1962) Cuttack Law Times 209 and in Republic of India v. Prafulla Kumar Samal, ILR 1976 Cuttack series 1392." 13. In Sourindra Narayan Bhanja Deo mentioned supra, learned Single Judge of this Court in para-9 of the said judgment held as under :- "9. So far as the law regarding the Khasmahal land is concerned, such land shall be treated as the private land of the lessee, which is both heritable and transferable. In this context, reference may be made to a decision of this Court in the case of Republic of India v. Prafulla Kumar Samal and another, ILR 1976 Cuttack 1392, in paragraph-4 whereof it has observed thus: "xxx Rights of a lessee in Khasmahal lands are in no way different from those which one has in his own private land. The lessee's right in the Khasmahal land being heritable and transferable the lessee can creat....
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....for amending the above section of the OGLS Act, 1962 and Rules thereunder to eliminate temporary lease requiring renewal from time to time and to simplify the process of collection of rent/premium, this Court is of the considered view that when the Tahasildar was satisfied that the petitioners are in possession of the land in question for more than 5 years and utilizing the same for homestead purpose by constructing houses thereon, the Collector should have acted upon the recommendation made by the Tahasildar, Sadar, Cuttack without causing any hindrance thereon. 15. In Westminster Corpn. V. L. & N. Ry., (1905) A.C. 426 it was statutory power that it must be exercised reasonably, and negligence. 16. In Cf. Karnapura Development Co. v. Kamakshya Narain, (1956) S.C.R. 325, the apex Court dition stat held that it is a condition of any statutory power that it must be exercised bona fide. 17. In Commissioner of Police, Bombay v. Gordhandas Bhanji, AIR 1952 SC 16, the apex Court observed as follows: "10. ... ... Public authorities cannot play fast and loose with the powers vested in them, and persons to whose detriment orders are made are entitled to know with exactness....