KALPANA LAMPS AND COMPONENTS PRIVATE LIMITED Vs. COMMISSIONER AND SECRETARY TO THE GOVT OF TAMIL NADU REVENUE DEPT FORT ST GEORGE MADRAS 9

JUDGEMENT

(1.) M/s. Zenith Lamps & Electri-cals Ltd. were ordered to be wound up in Company Petition No. 50 of 1971. As per the orders of the court, the Official Liquidator brought the company for sale. The Petitioners'bid for purchase of the same for a consideration of Rs. 61,79,301 was accepted by the court. There were certain directions relating to payment of the sale consideration which have been complied with. In Company Application No. 2586 of 1978 etc. while accepting the highest offer for purchase of the entire unit of the company, the petitioner-company was directed to obtain necessary clearance from the State Government under the Tamil Nadu Urban Land (Ceiling and regulation) Act, 1978 (Tamil Nadu Act 24 of 1978) (herein after referred to as the Act ). On the basis that the petitioner had complied with the conditions relating to payment of the sale consideration, the petitioner -company was put in possession of the unit on 15. 2. 1979 and the petitioner had been running the unit the name of Kalpana Lamps and Components (p) Ltd. with the same workers numbering about 300. In Company Application No. 16 of 1982, most of the title deeds relating to the property were directed to be handed over by an order dated 12. 2. 1982. Having taken possession of the property, the petitioners filed an application under section 21 of the Act for exemption of the excess vacant land from the provisions of the Act, on the grand that the entire extent was needed for the industrial purposes of the company. By g. O. Ms. No. 248 Revenue dated 14. 2. 1983, the entire excess extent of 33,959 sq. metres comprised in Survey No. 840 and 841, etc. of Madhavaram Village was exempted from the provisions of Chapter III of the Act. The exemption was subject to certain conditions which need not be noted.

(2.) BY an order dated 3. 2. 1984 in Company Application no. 62 of 1984, the learned Company Judge directed the Official Liquidator to register the sale deed in favour of the petitioners on the ground that the petitioners had obtained exemption in respect of the excess holding from the provisions of the Act. As directed by the court earlier. On some mistaken impression, the Official Liquidator was seeking the orders of the court on the ground that he is to get permission from the Government under section 6 of the act for executing the sale deed. The Court permitted the Official Liquidator to execute and register the sale on receipt of orders from the competent authority under the Act. The Court further observed that in view of the pecuniary loss and disadvantage suffered by the intending purchaser, namely, Kalpana Lamps & Components (P) Ltd. , it is desirable that the competent authority under the Act should expeditiously pass orders. Against this order, the petitioner preferred an appeal in O. S. A. No. 45 of 1984. (M/s. Kalpana Lamps Companants (P) Ltd rep. by its General Manager Madras -18 v. The Official Liquidator High court, Madras) It was argued before the Bench that on a proper construction of sections 6 and 21 of the Act, no such permission under section 6 was needed in view of the fact that the petitioner had already obtained an order of exemption under section 21. But the appeal was dismissed with an observation that this point was not raised before the learned Judge and that in fairness the matter should be brought before the learned single Judge again by way of a clarification application or otherwise and that if it was so done, the matter shall have to be dealt with by the learned Judge afresh on merits. Accordingly the matter was brought to the notice of the learned Company Judge.

(3.) THE relevant provision in section 21 (1) (a) of the act reads as follows: "5. 21. Power to Exempt: - (1) Notwithstanding anything contained in any of the foregoing provisions of this Chapter, - (a)where any person holds vacant land in excess of the ceiling limit and the State government is satisfied, either on its own motion or otherwise, that, having regard to the location of such land, the purpose for which such land is being or is proposed to be used and such other relevant factors as the, circumstances of the case may require, it is necessary or expedient in the public interest so to do, the State Government may, by order, exempt whether prospectively or retrospectively subject to such conditions, if any, as may be specified in the order, such vacant land from the provisions of this Chapter. " THE phrase "to hold" is defined in section 3 (1)of the Act and it reads as follows: S. 3 (1): "to hold" with its grammatical variations, in relation to any vacant land, means - (i) to own such land ; or (ii) to possess such land as owner or as tenant or as mortgagee or under an irrevocable power of attorney or under a hire purchase agreement or partly in one of the said capacities and partly in any other of the said capacity or capacities. Explanation I- : For the purpose of this clause, "tenant" means any person who has paid or has agreed to pay rent or other consideration for his being allowed by another to enjoy the land of the latter under a tenancy agreement, express or implied, and includes - (i) any such person who continues in possession of the land after the determination of the tenancy agreement; (ii) the heirs, assignees, legal representatives of such person or persons deriving rights through such person. Explanation I. A.- (a) A vacant land vested with an executor or an administrator under the Indian Succession Act, 1925 (Central Act xxxix of 1925) shall be deemed to be held by such executor or administrator, for the purpose of this Act; and (b) for the purpose of computing the ceiling limit of vacant land so deemed to be held by any person in the capacity of such executor or administrator, the vacant land held by such person in any other capacity shall be dealt with separately and the provisions of this Act shall apply accordingly. Explanation II: -Where the same vacant land is held by one person in one capacity and by another person in another capacity then, for the purposes of this Act, such land shall be deemed to be held by both such persons. "