SECTION 3

INTRODUCTION

To run the government machinery properly and smoothly, the State Government is always in
need of money which the State derives from different sources. One of these sources is the share of the
State in the produce of the land which is bound to give certain share to the government in respect of
their land which is termed as land revenue. Hence recovery of revenue and for its regulation The Punjab
Land Revenue Act has been enacted in 1887. It extends to the territories administered by the State of
Punjab and also applicable in Haryana. The main purpose of this Act is -:

1. Making and Maintenance of Record-of-rights in land.

2. Assessment and Collection of land revenue.
3. Other matters relating to the land and the liabilities relating to the land.

(A) Estate

Introduction - The word ‘estate’ has been defined u/s 3 (1), (a), (b), (c) of the PLRA. The word estate has
also been defined by different writers. Estate is a legal expression defined by the Act and forms the unit
of revenue assessment and administration in Punjab.

Definitions

1. Clauses (a), (b) and (c) of section 3 (1) of PLRA 1887, define estate as follows- Estate means any
area:-
(a) for which a separate record of rights has been made.
(b) Which has been separately assessed to land revenue (LR) or would have been so assessed if
the LR had not been released, compounded or redeemed, or
(c) which the state govt. may by general rule or special order, declare to be an estate.

2. Mr. Thompson defined ‘Estate’ as any parcel or parcels of land which may be separately
assessed with the public revenue.

3. According to the definition in the present Act:- Estate means an area for which either a separate
record of rights has been prepared or which the state government has by general rule or special
order declared to be an Estate.

The fundamental element in this definition is:

(a) separate assessment

(b) where more than one person own the same estate, their joint liability is for the payment of its

revenue
(c) a separate unit of assessment must as a matter of fact, have a separate record of rights.

Estate and village distinguished - We invariably come across two vernacular term mauza and
mahal in revenue administration . mauza is usually translated “village” and the English equivalent of
mahal is estate.

Examples of Estate - All democratic areas of uncultivated and forest land owned by government are
declared to be ‘Estates’ within the meaning of The PLRA, Act 1887. So also any land which is
occupied as a site of village and referred to as ‘abadi-deh’ in the revenue records.

CONCLUSION - So from the above discussion we conclude that estate is a portion of land which may
be separately assessed to land revenue. The land owners of an estate has a joint responsibility to
pay the land revenue.

(B) NET ASSETS

Introduction - Net assets of an estate or group of estates means the estimated average annual
surplus produce of such estate or group of estates remaining after deduction of the ordinary
expenses of cultivation as ascertain or estimated.

Meaning - The net assets of an estate mean the average surplus which the estate may yield after
deduction of the expenses of cultivation.To put briefly, “Net assets” mean what the landlord actually
gains after all expenses of cultivation have been paid, but before payment of land revenue and
cesses. The ordinary expense of cultivation include payments , if any, which the land owner
customarily bears whether in kind or in cash , either in whole or in part in respect of-

1. Water rates
2. Maintenance of means of irrigation
3. Maintenance of embankments
4. Supply of seeds
5. Supply of manure
6. Cost of collection of rent
7. Improved implements of husbandry
8. Concessions with regard to fodder
9. Special abatements made for follows or bad harvest
10. Allowance for shortage in collection of rent
11. Interest charges.

The net assets also include any income which the proprietors derive from the spontaneous
product of their waste and cultivated lands and strictly speaking, any dues for whatever sort which
they get in their capacity of land owners.
 Net letting value - It is the value of a site put to non agricultural use means the estimated annual
rent of the site remaining after deduction of-

(a) The capital invested on buildings and machinery or both after deducting the depreciation on
their value.
(b) House tax , property tax.
(c) Maintenance charges.

Conclusion - The definition of net assets as laid down in the section 3(18) has been placed on the
legal basis. So, net assets includes the average surplus of the estate , a full fair rent by a tenant at
will, what the landlord actually gain as well as any income derived from the waste and cultivated
lands.

LAND –OWNER

Introduction - According to the Punjab Land Revenue Act, in ordinary circumstances the
persons to give state its share of the produce are evidently those who are found to be in
thepossession of an exclusive right to till the soil and reap the harvest themselves or to make it
over to others for village is said to be Land Owner. The definition of Land Owner as above
described seems to follow this line includes all persons who are to pay the land revenue to the
states for time being. The definition of Land Owner is not exhaustive, the interpretation clause
enlarges the meaning of the term and makes it include matters which are not included in the the
ordinary meaning .

Difference between ‘ Owner of the Land’ and ‘ Land Owner’ - Difference between these two
terms has been drawn by Chatterjee T. in Buta vs. Mst. Tiwani. According to him, land owner has
a very wide significance and includes many persons whose interest in land are of a limited
character eg. A farmer or transferee or one who is in possession of an estate or in the
engagement of any part of the profits of an estate.

The word “Owner” has not been defined in the Act. But according to the accepted
canons of interpretation the term applied to persons whose rights in property are unlimited as
well as those whose rights are more or less restricted. According to Austin, ownership means a
“right over a determinate thing indefinite in point of time, unrestricted in point of disposition
and unlimited in point of duration.” The word ownership includes these heads – possession,
enjoyment and disposition.
The Land Owner being thus a wider term than the owner of the land, every owner of
land is land owner but every land owner is not the owner of the land. Mortgagee with
possession of the land are certainly land owners within the definition but they are not the
owner of the land.

CASE -: In Tekan vs. Ganeshi, there was a suit for ejectment of tenant-at-will by the lesee
landlord. The latter was not an allottee or lessee or a mortgagee with possession. It was held
 that he was only a tenant and not a Land Owner within the definition in the Act. Hence, his
application for effecting his tenant-at-will had to be dismissed.
A Division Bench of Punjab and Haryana High Court in Jasmer Singh Bhatti vs. State of
1
Punjab , a land was possessed by a person who is not an owner but he is enjoying the profits of
the said land. The Court held that he is deemed to be the land owner of the said land.
In Jasmer Singh vs. State of Punjab2, the court held that the landowner as defined may not be
the owner of the land. Every other person mentioned in section 3(2) who is in possession of an
estate or enjoyment of any part of profits of an estate would be the land owner.
In Dera Baba Ram Gir vs. State of Haryana 3, the High Court held that the muafidar is the owner
in whose favour the land revenue is released. He is not liable to pay any land revenue to the
government inspite of the fact that the amount of land revenue might have been assessed.

Conclusion - So,land owner is a person who has restricted rights in the estate. He is not said to
be owner of the land. The land owner is a wider term which includes many persons like
mortgagee or widow but the land owner has no right to apply for the partition of the land. So
we can say that land owner is a wide term with restricted rights.

DEFAULTER

The term defaulter has been defined under section 3(8) of the Punjab Land Revenue Act,
it says that the defaulter means the person who is liable for the arrears of land revenue and
further it includes the persons who are responsible as surety for the payment of arrears. This
definition was amended in the year 1974 and the Village Officer i.e. Lambardar who is duty
bound to collect the land revenue or any other sum recoverable as land revenue but has failed
to pay the sum to the “state” then he is also a defaulter 4.
The dictionary meaning of the term defaulter is that a person who fails to perform some
duty or obligation of which he is legally bound to do so. In Sartaj Singh vs. State of Punjab5, the
Court held that all the landowners in an estate can be treated as defaulters if arrears are due in
respect of any particular holding. Thus, the definition of the term defaulter has a wider scope
than it has been embodied in section 3(8) of the Punjab Land Revenue Act because the term has
not been exhaustively defined in the Act.
In Haryana State vs. Sardool Singh6, the Court has categorically observed that this
amendment inserted by Amendment Act, 45 of 1973 in Haryana is not retrospective in
operation. Similarly, in State of Punjab vs. Partap Singh7, the Court held that the land revenue
collected by the Lambardar prior to the amendment and he has not deposited the same with
the government then he does not come within the definition of defaulter. In Sardara Singh vs.

1
1990 PLJ 597.
2
1989 PLJ 288
3
1972 PLJ 16,
4
(Ins. By Pb. Act, No. 4 of 1974, Section 2)
5
1969 PLJ 414
6
1983(1) PLR 27
7
1992 (1) LJR 50
 Hakam Singh8, the Court held that defaulter means the person who is liable for arrears of land
revenue.
In Balbir Singh Bedi vs. State of Haryana and others9, the Court held that Lambardar
who has not collected land revenue, is not a defaulter. The Court further held that the failure of
Lambardar to collect land revenue from persons liable to pay the same and deposit it in the
Government Treasury does not render Lambardar10, a defaulter.
In the State of Punjab vs. Partap Singh11, lambardar collected land revenue from land
owners but failed to deposit the collected land revenue in the Government Treasury. The Court
held that in such circumstances a lambardar will be deemed to be a defaulter and further held
that such amount will be recovered from the lambardar as arrears of land revenue.
In the year 1974 Clause 3(8) was amended. In view of the amendment, a Lambardar will
be deemed to be a defaulter if he failed to deposit the land revenue collected in Government
Treasury after March 15, 1974. In Shamsher Singh vs. The Commissioner, Jalandhar Division
and Others12, the Court held that by the amendment of 1974 definition of “defaulter” has been
enlarged. A new liability in relation of Village Headman has been created, the Court further held
that amendment of Clause 3(8) has been neither expressly made retrospective nor procedural,
explanatory or declaratory.
In State of Punjab vs. Krishan Lal13, the Court held that defaulter means a person liable
for the arrears of land revenue and includes a person who is responsible as surety for the
payment of arrears and a village officer who collects the land revenue and does not pay the
same to the Government.

LAND REVENUE

Introduction - Land Revenue is any sum payable in respect of land by way of quit rent or of
commutation for service to the government or to a person to whom the government has
assigned to receive the payment.

Meaning and Scope - Since the ancient law of the country the ruling power is entitled to a
certain proportion of the annual produce of every bigha14 of land. This certain proportion of
annual produce of the land to which the state is entitled is the Land Revenue. Land Revenue

8
1976 PLR 441(DB),
9
1977 PLJ 2(1) (P&H)
10
The registered representative of a coparcenery community who is responsible for government revenue. He is
nominated by the co-sharers of the mahal. There may be one or more lambardars in a mahal, as the Collector
thinks fit. A Lambardar is entitled to receive remuneration from the co-sharers whom he represents.
11
1992(1) RRR 55 (P&H)
12
1956 PLJ 492,
13
2000 (1) LJR 237 (P&H)
14
A measure of land varying in extent in different parts of India. The standard bigha of the revenue surveys of the
United Province is equal to 3025 sq. yds. Or 5/8 of an acre.
may be in cash as was under British Government or as in under our National Government or in
kind as under the native government which preceded the British Government.

Assigned Land Revenue - Jagirs and Muafis

Muafi - is a remission of land revenue to the owner.

Jagir - is an assignment of land revenue which is collected and paid to the jagirdar. The jagirdar
may subsequently acquire the property. Thus, a muafidar is not an assignee of land revenue. He
is the owner in whose favour the land revenue is released i.e. he is not liable to pay only land
revenue to the government.

QUIT -RENT - It is an annual nazrana of a fixed amount which an assignee for life or perpetuity
of the right to receive the revenue of a track of land has to pay to the government.

COMMUTATION FOR SERVICE - Before the annexation of Punjab the chiefs were required to
supply number of soldiers. But owing to their disloyality, sovereign powers were taken away
from them and as the government did not require their aid; the services of soldiers were
commuted into money. It is recoverable as revenue and is deducted from the amount of their
respective jagirs. This amount is called ‘ commutation for service’.

ARREARS OF LAND REVENUE – It means that land revenue which remains unpaid after the due
date on which it becomes payable.

Conclusion - In simple words, land revenue is a sum payable by the owner of the land to the
government. If the person makes default in payment of land revenue, there are various
processes of recovery of arrears of land revenue. If there are more than one land owner of the
land, he is jointly and severally liable for the payment of the whole land revenue assessed. The
land revenue payable in cash shall be paid at the office of the tehsil to which the estate belongs.
So, it is binding upon the land owner to pay the revenue otherwise his land is liable to be sold.