Monday, December 28, 2015

Use of Leased Land for Tourism - HC Upholds Govt's Takeover of 480-acre Estate at Nelliyampathy - Read Full Judgment


HC upholds govt's takeover of estate


KOCHI: The Kerala High Court has upheld state government’s decision to take over the 486.63-acre Miraflores Estate in Nelliampathy.
The land that was notified as a reserve forest and initially leased out in the 1930s for cultivation of coffee, tea, and spices was allegedly being used by the present lease holders for tourism purposes. Government had ordered resumption of the leased land in June 2011.
Cancellation of the lease was upheld by a division bench comprising chief justice Ashok Bhushan and justice PR Ramachandra Menon after considering an appeal filed by the state government.
Through five lease deeds executed between 1933 and 1947, a total of 507.6 acres was leased out for cultivation by the government. The original lessees transferred the leased land in favour of different persons from time to time. Through three purchase deeds registered on April 26, 1994, 486.63 acres was purchased by New World Investment Pvt Ltd and Malabar Dairy Farms Pvt Ltd of Nelliampathy from Rajagiri Rubber and Produce Company Ltd. In the sale deeds, the vendors claimed to be absolute owners having perpetual leasehold right of coffee and cardamom estates.
Forest department noticed in 2002 that the leased land is being used for plantation tourism and asked the lessees not to put the land to any other use than for cultivation. In January 2008, the government asked the lessees to show cause for not terminating the lease and an explanation was submitted in March. On June 24, 2011, government ordered resumption of the entire 486.63 acres of leased land. The ‘owners’ then approached the high court.
Government contended at the high court that leased land could not have been sold to the petitioner, New World Investment Pvt Ltd, as the original lessee had no right of alienation of the property. The petitioner was using forest land for non-forest use, by running a tourist resort named Tropical Hill Resort, which is prohibited under Kerala Forest Act of 1980. Petitioner has converted the entire area into resorts, parks, dairy farms, etc in violation of law, special government pleader MP Madhavankutty argued. The counsel for the company submitted that the 1980 Act could not have retrospective operation.
It was held by the court that the area in question was declared as reserve forest as per notifications issued by the diwan and the law as existed then and introduced later on prohibits right of any description upon reserved forest except through a grant or contract in writing by the government.
Cancellation of the lease by the government was fully in accordance with the provisions of the 1980 Act and cannot be faulted, the division bench held.

HERE'S THE JUDGMENT:-

IN THE HIGH COURT OF KERALA AT ERNAKULAM

                            PRESENT:

       THE HONOURABLE THE CHIEF JUSTICE MR.ASHOK BHUSHAN
                                &
        THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON

   THURSDAY, THE 19TH DAY OF NOVEMBER 2015/28TH KARTHIKA, 1937

            WA.NO. 89 OF 2011 ( )  IN OP.35736/2002
            ----------------------------------------
     AGAINST THE JUDGMENT IN OP 35736/2002  DATED 11-08-2010

APPELLANT(S)/RESPONDENTS IN O.P.:


          1. THE STATE OF KERALA REP.BY SECRETARY,
       FORESTS & WILDLIFE DEPARTMENT, SECRETARIAT
       THIRUVANANTHAPURAM.

          2. THE CHIEF CONSERVATOR OF FORESTS (P),
       THIRUVANANTHAPURAM.

          3. THE CONSERVATOR OF FORESTS,
       OLAVAKKODE, PALAKKAD.

          4. THE DIVISIONAL FOREST OFFICER,
       NEMMARA DIVISION, NEMMARA, PALAKKAD.

          5. THE FOREST RANGE OFFICER,
       NELLIAMPATHY RANGE, PALAKKAD.

       BY SPECIAL GOVERNMENT PLEADER SHRI   M.P. MADHAVANKUTTY

RESPONDENT(S)/PETITIONER:

       NEW WORLD INVESTMENT (P) LIMITED,
       MALABAR DAIRY FARMS (P) LIMITED, NELLIYAMPATHY
       PALAKKAD REPRESENTED BY ITS DIRECTOR, S.SUNILKUMAR.

       R,R BY ADV. SRI.N.N.SUGUNAPALAN (SR.)
       R, BY ADV. SRI.N.J.MATHEWS
       R,R BY ADV. SRI.K.MOHANAKANNAN
       R BY SRI.M.P.ASHOK KUMAR

       THIS WRIT APPEAL  HAVING BEEN FINALLY HEARD  ON 30.10.2015
ALONG WITH   W.P(C) NO.18339 OF 2011,   THE COURT ON 19.11.2015
DELIVERED THE FOLLOWING:


                                                         "C.R"

                   ASHOK BHUSHAN, C.J.
                               and
              P.R. RAMACHANDRA MENON, J.
           ====================================
                        W.A. No.89 of 2011
                                &
                     W.P(C) No.18339 of 2011
            ====================================
           Dated this the 19th day of November, 2015

                         J U D G M E N T


Ashok Bhushan, C.J.


       Writ Petition as well as the Writ Appeal have been

heard together and are being decided by this common

judgment.

       2. Facts and pleadings in W.P(C) No.18339 of 2011 shall

suffice in deciding     the Writ    Petition  as well as the Writ

Appeal. Parties shall be referred to as described in the Writ

Petition.

       3. The Cochin State had enacted "The Cochin Forest Act

III of 1080 ME" (for short, "Regulation III of 1080") for making

better provision for protection and management of the forest

in the Cochin State.        Regulation III of 1080 was passed on

12.03.1905.       As per the Regulation, the Diwan was
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                              -: 2 :-


empowered to                constitute        any area as reserve forest.

Section 8 contemplated that, whenever it is proposed to

constitute          any area as reserve forest, the Diwan shall

publish a Notification in the Sirkar Gazette specifying the

details as mentioned under Section 8 of the Regulation.                  A

Notification is contemplated in Section 12 specifying the limit

of forest which is intended to be reserved and declare the

same to be reserve forest from a date to be fixed by the said

Notification. Notification dated 08.05.1909 under Section 12

of    Regulation III of 1080 declared                  the reserve forest

including Nelliyampathy block with details of boundaries

mentioned therein.                Several coffee estates were treated as

enclosures within the State reserves and                 at serial No.18 of

the coffee estate, Valvachan area of 507 Acres, 68 cents

was also included.                    By a subsequent Notification dated

11.02.1933 issued under Section 12 of the Regulation III of

1080,       reserve forest was declared, whereby block No.9 of

Nelliyampathy, as described in the schedule, included

Valvachan area of 507.68 Acres as reserve forest.                  A lease

deed dated 19.05.1933 was executed by the Diwan of Cochin
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                              -: 3 :-


representing the Cochin Government in favour of one Cecil

Ralpt Townshend Congreve Esq. of 82.45 Acres as Miraflores

Estate. The lease deed contemplated that for purposes of

lease, the Conservator of Forests shall be regarded as the

superior authority in matters relating to the                  lease forest.

Lease rent was also fixed.                   Lease was granted for purposes

of cultivation of coffee, tea, cardamom and other products.

Another area of 126.50 Acres was leased out on 04.09.1936

by the Conservator of Forests representing                      the Cochin

Government in favour of persons as mentioned above on the

premium and rent as fixed. The lease was again for purposes

of cultivation of coffee, cardamom and other products except

tea and rubber. Similarly by another lease dated 04.09.1936

93 Acres of Miraflores estate was leased out by the

Conservator of Forests in favour of the persons named above

on premium and rent for cultivation of coffee, cardamom and

other products except tea and rubber. Another 27 Acres was

leased out on 03.02.1941 by the Conservator of Forests on

behalf of the             Cochin Government in favour of Miraflores

Estate Ltd., a company for cultivation of crops on the rent as
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                              -: 4 :-


fixed in the deed. Another lease dated 24.09.1947 an area

of 157.68 Acres, namely, Valvachan Estate was leased out

by the Chief Secretary to the Government on behalf of the

Government               in favour of K.M.Velayudh Panicker  for

cultivation of crops on rent as fixed in the deed.        By the

aforesaid 5 leases a total extent of 507.68 Acres was leased

out between the period from 1933 to 1947. The lessees

transferred the leased land in favour of different persons

from time to time. Petitioner purchased the entire area      by

sale deeds bearing Nos.494, 925 and 926 dated 26.04.1994

from Rajagiri Rubber and Produce Company Ltd. covered by

the above five leases. Copy of the above lease deeds have

been brought on record as Exts.P1, P1(a), P1(b), P1(c) and P1

(d) whereas sale deeds have been brought on record            as

Ext.P2, P2(a) and P2(b). In the sale deeds the vendors

claimed to be absolute owners having perpetual leasehold

right of coffee and cardamom estates.

       4.        Sale deeds were registered on the basis of

directions issued by this Court in O.P. No.3953 of 1994.

Petitioner paid lease rent and tax from time to time.       The
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                              -: 5 :-


Divisional Forest Officer by letter dated 21.11.1996 issued

notice to the petitioner directing him                       to inform    the

willingness to conduct a comprehensive survey, demarcate

boundaries and prepare sketches.                      Petitioner sent a reply

that it is ready to bear the expenses of survey. Petitioner

was informed that matter has been taken up with the higher

authorities          and petitioner shall be accordingly informed.

Various cases were booked against the petitioner regarding

removal of boundary stones, encroachment, etc.                     Petitioner

filed O.P. No.35736 of 2002 seeking a direction to conduct

survey and further restraining the respondents from

attaching any portion of the                        plantation including the

Bungalow and further to direct the respondents                         not to

unnecessarily            harass         the   petitioner   before  the   final

determination of the exact boundaries.                      Writ Petition was

disposed of on 12.08.2000 directing the respondents to

conduct a comprehensive survey.                        In the year 2002 the

Forest Department having noticed that petitioner is using

the estate for entertaining tourists                     informed that    the

petitioner is not entitled to undertake any activities in the
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                              -: 6 :-


area other than those mentioned in the lease deed.                       Letter

dated 25.11.2002 was issued by the Conservator of Forests in

the above context. Challenging the letter dated 25.11.2002,

petitioner has filed O.P. No.38847 of 2002 where a direction

was sought to the Conservator of Forests or other Officers

not to interfere            in the conduct of plantation tourism by the

petitioner in the Miraflores Estate.                 Initially an interim order

was passed in favour of the petitioner which came to an end

on 19.11.2004. Notice dated 04.01.2008 had been issued by

the State Government to the petitioner asking it to show

cause as to why the lease in respect of whole area of 486.63

Acres       should not be terminated as contemplated in the

aforesaid lease.              Several        grounds for taking action were

mentioned in the show cause notice.                      Petitioner submitted

explanation to the show cause notice dated 14.03.2008. On

04.12.2010 the petitioner was                    also personally heard by the

Government. Order dated 24.06.2011, Ext.P10 was passed by

the Government by which the Government decided to order

resumption of an area of 486.63 of the leased forest.

Challenging the              order dated 24.06.2011 the Writ Petition
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                              -: 7 :-


has been filed by the petitioner praying for the following

reliefs:

                 (i)      To issue a writ of certiorari or appropriate writ,

        order or direction calling for the records leading to Ext.P10 and

        quash the same;

                 (ii)     To issue a writ of mandamus or any other

        appropriate writ or order or direction directing the respondents not

        to interfere in any manner in possession and enjoyment of the

        property covered by Exs.P1 to P1(d).

                 (iii)    To issue a writ of mandamus or any other

        appropriate writ or order of direction permitting the petitioner to

        enjoy and maintain the Estate covered by Exts.P1 to P1(d)

        including the office store and bungalow without any interference

        or hindrance by the respondents and their men and and orders

        may be passed accordingly.

                 (iv)     To declare that the cancellation of lease by Ext.P10

        order is non-est in the eye of law.

                 (v)      To grant such other relief as this Honourable Court

        deem fit to grant in the interest of justice."

       5. Counter affidavit has been filed by the State

Government opposing the                      Writ Petition.        In the counter

affidavit it has been pleaded that the lands purchased by the

petitioner on 26.04.1994 were the lands comprised in

reserve forest which were leased out between 1933 to 1947.

Leased land could not                    have been sold to the petitioner.

Provisions of the Forest Conservation Act, 1980 (hereinafter
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                              -: 8 :-


referred to as "the 1980 Act")                      are applicable and    the

petitioner was using the forest land, also for                    non-forest

purpose, i.e., tourism resort. The original lessee had no right

of alienation of the                    Estate.    Government have rightly

initiated action to              cancel the          lease conforming to the

Kerala Forest Act, 1961 (hereinafter referred to as "the 1961

Act") and the 1980 Act.                      An Order dated 10.01.2011 was

issued by the Government stating for                      not accepting any

tax from the estates as the State proposed to cancel the

lease.         Use of forest land for                 non-forest purpose   is

prohibited by the 1980 Act.                    Petitioner has converted the

entire area into resorts, parks, dairy farms, etc., violating

the provisions of the 1980 Act. The area was inspected and

report was submitted mentioning that the property was used

for non-forest purpose by running resorts, etc. Reply was

also filed by the petitioner.                It was pleaded by the petitioner

that the 1980 Act has no retrospective operation and sale

deed was registered in favour of the petitioner under orders

of this Court.                It was further pleaded that there being

provisions for amending the lease deeds, application was
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                              -: 9 :-


submitted to the Government.

       6. Writ Appeal No.89 of 2011 has been filed by the

State Government                  against the judgment of the learned

Single Judge dated 11.08.2010                       in O.P. No.35736 of 2002.

O.P.No.35736 of 2002 was filed by New World Investments

(P) Limited and Malabar Dairy Farms (P) Limited praying for

the following reliefs:

                 "(i) to issue writ of mandamus or other appropriate order

        directing the respondents 2 to 5 or other concerned officers to

        conduct a survey under the Kerala Survey and Boundaries Act in

        the Forest Land to identify the Boundary of 486.63 acres of

        plantation in Nelliyampathy Forest,            Nenmara Division as

        described in Exts.P1 to P3 documents.

                 (ii) to issue a writ of prohibition or any other writ or order

        restraining the respondents 2 to 5 from attaching any portion of

        486.63 acres of the plantation including the Bungalow No.N.P. VI

        387 and two workmen quarters attached to it situated in the

        Nelliampathy Grama Panchayat owned by the petitioner company.

        (iii) to issue a writ of mandamus or any other writ, order or

        direction directing the respondents 2 to 5 to supply copies of

        preliminary report in respect of 486.63 acres comprised in the

        Estate if any to the petitioner forthwith.

                 (iv) to issue a writ of mandamus or any other writ, order or

        direction directing the forest authorities or their subordinates not

        to    unnecessarily      harass     the petitioner before   the   final

        determination of the exact boundaries of the 486.63 acres

        comprised in the Estate"
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                              -: 10 :-


Writ Petition was disposed of by a learned Single Judge by

judgment dated 11.08.2010                          issuing direction to the

respondents to conduct comprehensive survey. The learned

Single Judge also directed the                          respondents to pay

Rs.25,000/- as costs                  to the petitioner within one month.

The State has filed by the appeal against the said judgment.

A Division Bench of this Court by order dated 27.01.2011

stayed the said judgment in appeal.

       7. We have heard                      Shri N.N. Sugunapalan, learned

Senior         Advocate            for       the   petitioner  and     Shri

M.P.Madhavankutty, learned Special Government Pleader on

behalf of the State.

       8. Learned Senior Advocate for the petitioner in support

of the Writ Petition contended that there was no prohibition

for alienation of leased land in favour of the petitioner as per

the terms and conditions of the lease deeds. It is submitted

that the original lessee had transferred the land comprised in

the lease deeds from time to time which was purchased by

the petitioner from a subsequent transferee of the original

lessee. The sale deed in fact was got registered under an
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 11 :-


order passed by this Court dated 17.03.1994 in O.P. No.3953

of 1994. Forest area was already cleared and plantation was

undertaken before enforcement of the 1980 Act and hence

provisions of the 1980 Act have no application. It is further

contended by the learned Senior Advocate for the petitioner

that leases were separate leases and hence, even if any

violation was alleged regarding using portion of the area for

tourism, the State could have cancelled only that portion of

the lease, where allegation was made for use of the land for

non-forest purpose and that the lease in respect of the entire

area was not liable to be cancelled.                  The areas which were

leased out originally                  between 1933 to 1947 were only

'enclosures' to              reserve forest and could not have been

regarded as 'reserve forest'. Terms and conditions of the

lease clearly provided that                   the expression  'lessee' shall

include heirs, administrators, and assignees and hence the

lease deeds clearly contemplated assignment in favour of

others.        Thus there was no prohibition in transferring the

leasehold rights.             No objection         has been raised by the

Forest Department at the time of registration of sale deed in
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 12 :-


the year 1994 in favour of the petitioner and                     further the

deed having been registered under orders of this Court on

17.03.1994, it is not open to the respondents to contend that

the sale deed is void or inoperative.                   Petitioner has been

paying lease rent and taxes and hence the respondents

cannot at this stage say                   that said sale was impermissible.

For transfer of the estate, no restriction under the 1980 Act

has been provided for.

       9. Learned Special Government Pleader refuting the

submissions made by the learned counsel for the petitioner

contended that the area comprising 486.63 Acres which has

been purchased by the petitioner in the year 1994 and which

was leased between 1933 to 1947 is comprised in reserve

forest constituted by the Diwan under the Regulation III of

1080        and by further Notification dated 11.02.1933 under

Section 12 of Regulation III of 1080, the land in question is

included in the forest area. Petitioner was put to notice by

letter dated 25.11.2002 that it is using the land for non-

forest purposes and                    why the lease be        not cancelled.

Petitioner immediately rushed to this Court by filing O.P.
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 13 :-


No.38847 of 2002 challenging the notice where initially an

interim order was                obtained       which came to an end    on

19.11.2004.           Petitioner throughout entertained tourists and

used the land for non-forest purposes. Even after the interim

order came to an end, they continued to use the land for

entertaining tourists                which was found on inspection and

reported by the forest Officials. Section 22 of the 1961 Act

contains a prohibition for transferring the land. Land could

have been            devolved           only   by succession and  grant or

contract         is contemplated             only by a    person who was

entitled       for issuing such grant or contract at the time of

declaration of            the land as reserve forest.        The 1980 Act

prohibits use of forest land                      for  non-forest purpose.

Petitioner having violated the terms and conditions of the

lease and the provisions of the 1961 Act and the 1980 Act,

the lease has rightly been cancelled. The State had given

valid reasons in the order                   impugned in the Writ Petition.

Since no tenable               grounds have been made out in the Writ

Petition, the Writ Petition deserves to be dismissed.

       10. Learned counsel for the parties have relied and
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 14 :-


referred to various decisions of the Apex Court and this Court

which we shall notice while considering the submissions in

detail.

       11. From the pleadings on record and submissions of

the      learned counsel for the parties, the following are the

issues which arise for consideration.

          I. Whether the land in question, i.e. 486.63

          Acres leased out by five lease deeds between

          1933 to 1947 and purchased by the petitioners

          by three sale deeds dated 26.04.1994 from the

          subsequent purchasers are part of reserve

          forest?


          II. Whether the respondents are estopped from

          raising any objection regarding sale deeds dated

          26.04.1994 as the sale deeds having been

          registered under the orders of High Court dated

          17.03.1994 in O.P. No. 3953 of 1994 ?


          III. Whether the transfer of leased area in

          favour of petitioners through sale deeds dated

          26.04.1994 executed by subsequent purchasers

          from the original lessee is void in view of Section
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 15 :-


          22 of the Kerala Forest Act, 1961 ?


          IV. Whether the order of the State Government,

          cancelling the leases, in the facts of the present

          case, could also be supported on the ground of

          violation of terms and conditions of the lease

          deed ?


          V.      Whether             the     petitioners violated the

          provisions of the Forest (Conservation) Act,

          1980 by using the leased land comprised in

          reserve forest for running 'tourist resort' which

          is a non-forest activity ?


          VI. Whether, on the contention of the petitioners

          that they were running a tourist resort only in a

          part of the leased property, the State was

          justified in cancelling the entire lease ?

ISSUE NO.I

         12. In the Cochin State, the State exercised control

over the Forest in accordance with the Cochin Forest Act,

(Regulation III of 1080). The preamble of the Act indicates

that the enactment was made to protect and manage                  the

forest in the Cochin State. Under Section 7 the Diwan was
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 16 :-


empowered to constitute any area as reserved forest in the

manner provided.                   Section 8 dealt with procedure for

constituting an area as reserved forest. Section 11 provided

for the steps to be taken by the Forest Settlement Officer

which included consideration of various claims in the area.

Section 12 provided for issuance of notification declaring

reserved forest. Section 12 of Regulation III of 1080 reads as

follows:

                 "12.    When all proceedings prescribed by section eleven

       have been taken, and all lands (if any) to be included in the

       proposed forest which the Forest Settlement Officer has elected to

       acquire under the Land Acquisition Act have become vested in the

       Government under section fifteen of that Act and all rights of way, or

       rights to water, pasture or forest produce have been adjudicated

       upon as provided in section eleven;


                 The Diwan may publish a notification in the Government

       Gazette, specifying the limits of the forest which it is intended to

       reserve, and declaring the same to be reserved from a date to be

       fixed by such notification. From the date so fixed, such forest shall

       be deemed to be a reserved forest."


       13. The State in the counter affidavit has brought on

record two notifications issued under Section 12 of

Regulation III of 1080.                   By notification dated 08.05.1909,
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 17 :-


under Section 12, the Nilambur Reserved Forest was

constituted. The notification also mentioned about various

coffee estates which were to be treated as enclosures within

the State reserves. An area of 507.60 Acres of Valvachan

Coffee Estate was also mentioned therein. By a subsequent

notification dated 11.02.1933 issued under Section 12 of the

Regulation III of 1080 various estates were declared as

reserve forests which also includes Valvachan Estate of

507.60 Acres.             The original leases were executed by the

Diwan of Travancore-Cochin/Conservator of Forests between

the period 1933 to 1947. The terms and conditions of all 5

leases are similar.                 Clause 5 of the lease deed clearly

indicates that what has been leased to the lessees was forest

and Conservator of the Forest was regarded as the superior

authority in matters relating to leased forest. Clause 5 of the

lease deed is as follows:

                "5.      For purpose of this lease the Conservator of Forests

       shall be regarded by the Lessees as a Superior authority in matters

       relating to their leased forests and if in his opinion any injury of

       permanent nature is done to the land whereby the land becomes

       unfit for the growth of valuable timber, the Lessees shall be liable to

       pay a fine of Rs.10/ per acre."
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 18 :-


       14. Learned counsel for the petitioner submitted that

since the area in question was only an 'enclosure' of the

reserve forest, as is clear from the                      Notification dated

08.05.1909, the area cannot be treated as reserve forest.

The above submission has no substance. It is sufficient to

refer to the subsequent notification dated 11.02.1933 (Ext.R2

(b)) which is to the following effect:

                      "THE COCHIN GOVERNMENT GAZETTE
                               PUBLISHED BY AUTHORITY



     Vol.XVII                   Ernakulam, Saturday, 29th Makaram 1108 (11th
     February
                                                           1933) No.19




     PART I                    NOTIFICATION BY GOVERNMENT
                                    Revenue Department
                                        NOTIFICATION


               No.65 : The Diwan hereby declares under the provisions of

     section 12 of the Cochin Forest Regulation III of 1080, as amended by

     Regulations VII of 1093 IV of 1096 and I of 1100, the areas, the

     boundaries of which are described in the schedule below "Reserved

     Forest" under the said Regulation.
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                              -: 19 :-



No.        and   Names of the portions             Extent

Name          of of     the      abandoned    AC              C           Remarks
Block            estates      to    be     re-
                 afforested

Block No.9       Alexandria                   751             75 The surveyed,
Nelliampathi                                                  45  demarcated and
es               Victoria                     619                 mapped boundary of the
(Unsurveyed Monkwood                          232             82 relinquished area of
)                Beatrice                     279             94  Alexandria, Victoria,
                                                                  Monkwood, Beatrice,
                 Pullala (East & West)        239             99  Pullala (E & W),
                 Valuvachan                   507             68  Valuvachan,
                                                                  Polayampara,
                 Polayampara                  794             63  Pothupara, Manalaroo,
                 Pothupara                    185             72  Padagiri and Riffle Butts
                                                                  estates of the
                 Manalaroo                    459             95  Nelliampathy
                 Padagiri                       6             09  Coffee estates
                 Riffle Butts                  31             65

                                              --------------------

                                              4109            67

Office of the Diwan of Cochin
    Revenue Department                                      T.V. Kasthuri Ranga Ayyer
     (Separate Revenue)                                           Ag. Diwan of Cochin.


5th February 1933
23rd Makaram 1108"


       15. It is not the case of the parties that at any point of

time the estate was taken out from the reserved forests.

Shri N.N.Sugunapalan, learned Senior Advocate appearing

for the petitioner                submitted that the enclosures to the

reserve forest cannot be treated as                             reserve forest.        He

submitted that              Notification dated 08.05.1909                     which has
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 20 :-


been brought on record as Ext.R2(a) mentions coffee estates

as enclosures within the State reserve. He submitted that

the enclosures within the State reserve                    are not reserve

forest.       It is not necessary to dwell any further upon the

above submission in view of the subsequent Notification

dated 11.02.1933 issued under Section 12 of the Regulation

III of 1080 filed as Ext.R2(b).                  The above Notification has

already been extracted which clearly stated that the Diwan

thereby declared under the provisions of section 12 of the

Cochin Forest Regulation III of 1080, as amended by

Regulations VII of 1093 IV of 1096 and I of 1100, the areas,

the boundaries of which were described in the schedule given

below as "Reserved Forest".

       16. Notification                 dated    11.02.1933  thus    clearly

declared the area as reserve forest which no longer remains

as enclosure in the State reserve. Thus in any view of the

matter, by subsequent Notification dated 11.02.1933 the

area in question has been declared as reserve forest under

Regulation III of 1080 and at no point of time any Notification

has been issued taking out the said area out of the reserve
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 21 :-


forest. It is further relevant to note that in the original lease

deeds from the year 1933 to 1947 the area in question was

described as forest area. We thus conclude that the area in

question which has been purchased by the petitioner by sale

deeds dated 29.04.1994 is comprised in 'reserve forest'. The

Issue is answered accordingly.

ISSUE NO.II

       17. One the of the submissions raised by Shri

N.N.Sugunapalan is that the sale deed dated 26.04.1994 was

got registered under the direction of this Court dated

17.03.1994 in O.P. No. 3953 of 1994, hence the State cannot

raise any objection regarding the validity of the sale deed on

any ground. It is submitted that the State is now estopped

from raising any objection against the sale deed dated

26.04.1994. The registering authority did not register the

sale deed when it was presented by the petitioner and hence

they had approached this Court by filing O.P. No.3953 of

1994, wherein a direction was issued by the High Court to

register the sale deed. The mere issuance of direction by this

Court to register a document under the Registration Act,
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 22 :-


1908 does not mean that the High Court has pronounced

about the validity or otherwise of the document which was

directed to be registered. The registration of a document has

a different consequence and mere direction of this Court to

register the document and Registration of document on

26.04.1994 can in no manner estopped                    the State from

raising the issues regarding violation of Section 22 of the

1961 Act in the present writ petition. The State is not raising

any objection regarding the registration of the document;

rather the submission of respondents in the present case is

that there is prohibition in acquiring the right by transfer by

the petitioners in the present case. We thus conclude that

the State is not estopped from raising its objection on the

ground of violation of Section 22 of the 1961 Act.



ISSUE NO.III

       18. One of the submissions which has been pressed by

learned Special Government Pleader (Forest) appearing for

the State is that the sale deed dated 26.04.1994 was void

and hit by Section 22 of the 1961 Act. Before we come to
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 23 :-


Section 22 of the 1961 Act, it is necessary to look into the

earlier two enactments regulating the reserved forests. The

Cochin Forest Regulation III of 1080, as noted above, was the

first enactment for control over the forest.                        Section 8

provided that whenever it is proposed to constitute any area

as reserved forest, the Diwan shall publish a notification in

the Government Gazette declaring that it is proposed to

constitute such area as reserved forest. After verification of

claims by Forest Settlement officer, under Section 11, a

notification is contemplated to be issued and under Section

12, a notification is to be issued declaring the area as

reserved forest. Section 13 of Regulation III of 1080 provides

for consequence of declaration of reserve forest which was to

the following effect:




                 "13.     When any area is constituted a reserved forest

        under section twelve, all property in or over such area shall vest

        absolutely in the Government subject to any right of way, right to

        water, pasture or forest produce that may have been admitted

        under section eleven; and the management of such area shall vest

        in the Conservator, subject to the control of the Diwan. No right of

        any description shall be acquired in or over a reserved forest
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 24 :-


        except under a grant or contract in writing made by the Diwan on

        behalf of the Government."


       19. Section 13, as quoted above, thus provided that no

right of any description shall be acquired in or over a

reserved forest except under a grant or contract in writing

made by the Diwan on behalf of the Government. Thus there

was clear prohibition of creating any right in or over a

reserved forest except under a grant or contract in writing

made by the Diwan.

       20. The provisions of Regulation III of 1080 were

repealed by Act III of 1952 i.e., the Travancore-Cochin Forest

Act, 1951 (hereinafter referred to as 'Forest Act 1951').

Chapter II of the Act contains the heading "Reserved Forest".

Section 4 provided for issuance of notification whenever it is

proposed to constitute any land as reserved forest. After

various proceedings and determination of right by Forest

Settlement Officer, final notification is contemplated under

Section 19 declaring a reserved forest. Section 19 is quoted

as below:
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 25 :-



      "19. When           the     proceedings     prescribed  in   the preceding
      sections

                                               have been taken, the Government
      Notification declaring forests           may publish a notification in the

      reserved.                                Gazette specifying the limits of
                                               the forests which it is intended to
                                               reserve and declaring the same to

      be reserved from a date to be fixed by such notification.

       Copies of the notification shall also be published at the

headquarters of each Taluk in which any portion of the land

included in such notification is situate and in every town and

village or pakuthy in the neighbourhood of such land.

       From the date so fixed the forest shall be deemed to be

a "Reserved Forest"."

       21. Section 22 of Forest Act, 1951 provided that no

right of any description shall acquire in or over a Reserved

Forest except as provided therein. Section 22 is quoted as

below:

      "22.          No right of any description shall be acquired in
      or over a
                                               Reserved Forest except under a
                                               grant or contract in writing
      No right acquired over                   made by or on behalf of the
      Reserved Forests except as
      herein provided.                         Government or by or on behalf
                                               of some person in whom such
                                               right or the power to
      create such right was vested when the notification under
      Section 19 was issued or by succession from such person."

       22. Section 22 thus prohibited acquisition of any right in
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 26 :-


or over the reserved forest except under the following two

circumstances (i) under a grant or contract in writing made

by or on behalf of the Government or (ii) by or on behalf of

some person on whom such right or power to create such

right was vested, when                   a notification under Section 19 was

issued or by succession from such person. Thus apart from

the right of Government by a grant or contract the right of

person who at the time of issuance of final notification under

Section 19 was entitled to create such right was saved.

Section 101 of Forest Act, 1951 provided for repeal. Section

101 is quoted as below:

       "101.          (1) The Travancore Forest Act of 1068 (Act II of
       1068) as
                                               subsequently amended and the
                                               Cochin Forest Act (Act III of
       Repeal.                                 1080)     as     subsequently
                                               amended are hereby repealed.
             (2)        All references made in any enactment to the
       enactments hereby repealed shall be read as if made to the
       corresponding provisions of this Act.
            (3)        All rules prescribed, appointments made, powers
       conferred and orders issued under the enactments hereby
       repealed shall, so far as they are consistent with this Act, be
       deemed to have been respectively prescribed, made,
       conferred and issued hereunder".


       23. The Forest Act, 1951 was repealed by the 1961 Act,
 W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                              -: 27 :-


1961.         The 1961 Act                  also contains similar provisions

regarding reserved forest in Chapter II. Under Section 4 of

1961 Act a notification is to be issued by the Government

whenever it is proposed to constitute any land as reserved

Forest.          Section 6 deals with proclamation by Forest

Settlement Officer. Section 7 provides for Bar of accrual of

forest right, prohibition of clearings, etc. Section 8 provides

for inquiry by Forest Settlement Officer and final notification

is contemplated under Section 19 of the 1961 Act which is to

the following effect:

       "19. When           the     proceedings     prescribed   in  the preceding
       sections
                                                have been taken, the Government
                                                may publish a notification in the
       Notification declaring forests
       reserved.                                Gazette specifying the limits of the
                                                forests which it is intended to
                                                reserve and declaring the same to
       be reserved from a date to be fixed by such notification.

        Copies of the notification shall also be published at the headquarters

of each Taluk in which any portion of the land included in such notification

is situate and in every town and village or pakuthy in the neighbourhood of

such land.

        From the date so fixed the forest shall be deemed to be a

"Reserved Forest"."

        24. Section 22 of the 1961 Act is relevant for the
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 28 :-


present case which provides as follows:

      "22.       No right of any description shall be acquired in or over a
                                               Reserved Forest except under a
      No right acquired over                   grant or contract in writing made by
      Reserved Forests except as               or on behalf of the Government or
      herein provided.                         by or on behalf of some person in
                                               whom such right or the power to
      create such right was vested when the notification under Section 19
      was issued or by succession from such person".


       25. The question to be answered is as to whether the

sale deed dated 26.04.1994 is hit by Section 22. It is also

relevant to note Section 85 of the 1961 Act which provides

for repeal. Section 85 is pari materia to Section 101 of 1951

Act. Section 85 is quoted as below:

                 "85. Repeal.- (1) The Travancore-Cochin Forest Act, 1951 (III

        of 1952) and the Madras Forest Act, 1882 (V of 1882) and the

        Madras Wild Elephants Preservation Act, 1873 (Act I of 1873) as in

        force in the Malabar District referred to in sub-section (2) of Section

        5 of the States Reorganisation Act, 1956, are hereby repealed.

                 (2) All references made in any enactment to any provision of

        the enactments hereby repealed shall be read as if made to the

        corresponding provisions of this Act.

                 (3) All rules prescribed, appointments made, powers

        conferred and orders issued under the enactments hereby repealed

        shall be deemed to have been respectively prescribed, made,

        conferred and issued hereunder till new rules and enactments are

        made under the various sections of this Act."
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 29 :-


       26. A perusal of the aforesaid statutory provisions of

Regulation III of 1080, 1951 Act and 1961 Act makes it clear

that after an area is declared as reserved forest, there is

prohibition of right of any description under the reserved

forest and the statutory scheme admit only following two

contingencies when acquisition of any right can be admitted.

They are: (i) a grant or contract in writing made by or on

behalf of the Government and (ii) by or on behalf of some

person in whom such right or the power to create such right

was vested when the notification under Section 19 was

published or by succession for such person.

       27. There is no issue regarding right of Government in

issuing a grant or contract. What is the scope and content of

right of a private person to create a right of any description

in a reserve forest                 has to be examined.  The statutory

provision as contained in Section 22 indicates that a grant or

contract can be issued only by a person in whom such right

or the power to create such power was vested when

notification under Section 19 was published.               Notification

under Section 19 is a final notification declaring the reserved
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 30 :-


forest. By virtue of Section 101 of 1951 Act and Section 85

of 1961 Act, the date, on which final notification declaring the

reserved forest is issued, is                    relevant for the aforesaid

provision. For the present case the aforesaid date shall be

the date i.e. 08.05.1909/11.02.1933 when notification under

Section 12 of Regulation III of 1080 was issued. There is a

purpose and object for saving the right of a person who had

right to create a grant or contract on the date when

declaration was issued on reserved forest.                   The statutory

scheme when pins down a particular date, for exercise of

right of grant or contract, the said statutory scheme has a

purpose and object. Further more Section 22 provides for

acquisition of a right by succession from such person. The

word 'such person' is a person who has right to create a grant

or contract on the date of declaration of reserved forest.

Thus       the right in reserved forest could acquire only by

succession from the person who has such right on the date of

declaration of reserved forest. Petitioners in the writ petition

do not claim any right of succession from any person who has

right to issue any grant or contract on the date on which the
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 31 :-


area was declared as reserved forest. Petitioners also did not

claim any such right of succession from the original lessees

of the area.            The word "succession" has been defined in

P.Ramanatha Aiyar's Advanced Law Lexicon (4th Edition)

which is to the following effect:

                 ""SUCCESSION" includes both intestate and testamentary

        succession.

        The process by which one person succeeds another in the

        occupation or possession of any estate or the like; the act or

        process of following in order of time or place.

        The act or right of legal or official investment with a predecessor's

        officer, dignity, possessions, or functions; a series of persons

        following one another; a lineage; an order of descendants. In the

        law of descent, the coming in of another to take the property of one

        who dies without disposing of it by will.

        The word "succession" is a word of technical meaning, and refers

        to those who by descent or will take the property of a decedent. It is

        a word which clearly excludes those who take by deed, grant, gift, or

        any form of purchase or contract.

        The word "succession" is often used synonymously with the word

        "descent".

        "Succession" is the transmission of the rights and obligations of a

        deceased to his heirs."

Similarly the Black's Law Dictionary (9th Edition) defines the

word "Succession" has defined as follows:

                 "Succession. 1. The act or right of legally or officially taking
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 32 :-


       over a predecessor's office, rank, or duties. 2. The acquisition of

       rights or property by inheritance under the laws of descent and

       distribution."


       28. The word 'Succession' used in Section 22 thus

contemplates testamentary or intestate succession from the

deceased. Learned counsel for the petitioners submits that

the lease deed did not contain any type of restriction in

transfer of the leasehold rights. It is true that in the lease

deed dated 09.05.1933, the word 'lessee' was referred to as

"hereinafter called the lessee which expression shall include

were applicable their heirs, administrators and assigns."

When the statutory provision as contained in Section 13 of

Regulation III of 1080, Section 22 of 1951 Act, Section 85 of

the 1961 Act permits acquisition of right only by succession,

the said expression used in lease deed does not advance the

case of the petitioners. The expression defining the lessee as

quoted above used the word "were applicable". Thus for the

interpretation of Section 22 it cannot be said that the lessee

shall have a right               of transferring the land or right can be

acquired in a reserved forest by alienation contrary to

Section 22.
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 33 :-


       29. Shri N.N. Sugunapalan, learned Senior Counsel

appearing for the petitioners contended that the word

'succession' has a wide meaning and it may include

acquisition of right by transfer also.                    In support of his

submission he has placed reliance on the judgment of Apex

Court reported in Sambudamurthi Mudaliar v. The State

of Madras and another [1970 (1) SCC 4].                          In the above

case the Apex Court was considering the provisions of

Madras Hindu Religious and Charitable Endowments Act,

1951.        Section 6(9) which defined the term Hereditary

Trustee noted             in paragraph 2 of the judgment reads as

follows:

                 "2. The appellant brought the suit in O. S. No. 3 of 1961 in

       the Court of Subordinate Judge, Nagapattinam for setting aside the

       order dated May 10, 1960 of respondent No. 1 the Commissioner of

       Hindu Religious and Charitable Endowments, Madras who had

       affirmed earlier the order of the second respondent, the Deputy

       Commissioner, holding that the trusteeship of the Kumaran Koil in

       Manjakollai village was not hereditary. The appellant was elected as

       a trustee by the Sengunatha Mudaliars of Manjakollai village at a

       meeting held on June 27, 1957. According to the appellant the

       temple was founded two hundred years ago by the members of his

       community and since then the management of the temple and its

       affairs was always vested in the community of the Sengunatha
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 34 :-


       Mudaliars and no person other than the elected trustee had at any

       time the right of management and control of the temple. The

       appellant said that the temple was declared as an "exempted"

       temple under the provisions of Madras Act 1 of 1925. The case of

       the appellant was that the trusteeship of the temple was "hereditary."

       The respondents, however, took a different view and proceeded on

       the basis that trusteeship of the Kumaran Koil was not hereditary.

       The Subordinate Judge held that the appellant was a hereditary

       trustee and the suit was not barred by limitation. The respondents

       took the matter in appeal to the Madras High Court which by its

       judgment dated March 31, 1965 allowed the appeal and set aside

       the judgment of the          Subordinate Judge. Nagapattinam. S.6, sub-

       section (9) of Madras Act 19 of 1951 states:

                 "In this Act, unless there is anything repugnant in the subject

       or context--

                                  xxxx                 xxxx

       xxxx      (9) 'hereditary trustee' means the trustee of a religions

       institution succession to whose office devolves by hereditary right or

       is regulated by usage or is specifically provided for by the founder,

       so long as such scheme of succession is in force;"

       This Act has been substituted by Madras Act 22 of 1959 but the

       definition of the trustee is identical in both the Acts."


       30. In the above case the Apex Court was considering

the word 'succession' in the context of hereditary trustee and

following was laid down in paragraph 3 of the judgment

which reads as follows:

                 "3. The question to be considered in this appeal is whether

        the appellant is a hereditary trustee within the meaning of the
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 35 :-


        section. The definition includes three types of cases: (1) succession

        to the office of trusteeship devolving by hereditary right; (2)

        succession to such office being regulated by usage; and (3)

        succession being specifically provided for by the founder on

        condition that the scheme of such succession is still in force. It is not

        the case of the appellant that the trustees of the temple of the

        Kumaran Koil are hereditary trustees because their office devolves

        by hereditary right or because succession to that office is specifically

        provided for by the founder. The contention on behalf of the

        appellant is that the succession is "regulated by usage." It was said

        that according to the usage of the temple the trustees were elected

        for a period of one year each at a meeting of the members of the

        Sengunatha        Mudaliar Community and so the appellant must be

        held to be a trustee within the meaning of S.6(9) of Act 19 of 1951. In

        our opinion, there is no warrant for this argument. The phrase

        "regulated by usage" in S.6(9) of the Act must be construed along

        with the phrase "succession to this office" and when so construed

        that part of the definition would only apply where the ordinary rules of

        succession under the Hindu Law are modified by usage and

        succession has to be determined in accordance with the modified

        rules. The word "succession" in relation to property and rights and

        interests in property generally implies "passing of an interest from

        one person to another" (vide in Re. Hindu Women's Right to

        Property Act, 1937, (1941 FCR 12 : AIR 1941 FC 72). It is now well

        established that the office of a hereditary trustee is in the nature of

        property. This is so whether the trustee has a beneficial interest of

        some sort or not. (see Ganesh Chunder Dhur v. Lal Behary, (63 Ind

        App 448 : AIR 1936 PC 318) and Bhabatarini v. Ashalata, (70 Ind

        App 57 : AIR 1943 PC 89). Ordinarily a shebaitship or the office of

        dharmakarta is vested in the heirs of the founder unless the founder

        has laid down a special scheme of succession or except when usage
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 36 :-


        or custom to the contrary is proved to exist Mukherjea J., in

        Angurbala Mullick v. Debabrata Mullick, (1951 SCR 1125 : AIR 1951

        SC 293) delivering the judgment of this Court observed:


                 "Unless, therefore the founder has disposed of the
        shebaitship in any particular manner -- and this right of disposition is
        inherent in the founder -- or except when usage or custom of a
        different nature is proved to exist, shebaitship like any other species
        of heritable property follows the line of inheritance from the founder."


        In the case of mutts, whose heads are often celibates and

        sometimes sanyasins, special rules of succession obtain by custom

        and usage. In Sital Das v. Sort Ram, AIR 1954 SC 606 the law was

        taken as well settled that succession to mahantship of a mutt or

        religious institution is regulated by custom or usage of the particular

        institution except where the rule of succession is laid down by the

        founder himself who created the endowment In that case the custom

        in matters of succession to mahantship was that the assembly of

        Bairagis and worshippers of the temple appointed the successor; but

        the appointment had to be made from the disciples of the deceased

        mahant if he left any, and failing disciples, any of his spiritual

        kindred. Such a succession was described as not hereditary in the

        sense that on the death of an existing mahant, his chela does not

        succeed to the office as a matter of course, because the successor

        acquires a right only by appointment and the authority to appoint is

        vested in the assembly of the Bairagis and the worshippers. In Sri

        Mahant Paramananda Das Goswami v. Radhakrishna Das, (51 MLJ

        258 : AIR 1926 Mad. 1012), the Madras High Court took the view

        that where succession to the mahantship is by nomination by the

        holder in office, it is not a hereditary succession. In that case

        Venkatasubba Rao, J., said:

                 "If the successor owes his title to nomination or appointment,
        that is, his succession depends on the volition of the last incumbent
        and does not rest upon independent title. I am inclined to the view
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 37 :-


        that the office cannot be said to be hereditary."

        Krishnan, J., stated as follows:

        "Where succession is by nomination by the holder in office of his

        successor it seems to be impossible to contend that it is a hereditary

        succession. Hereditary succession is succession by the heir to the

        deceased under the law, the office must be transmitted to the

        successor according to some definite rules of descent which by their

        own force designate the person to succeed. There need be no blood

        relationship between the deceased and his successor but the right of

        the latter should not depend upon the choice of any individual."


        It is true that the artificial definition of hereditary trustee in S.6(9) of
        the Act would include even such cases."

       31. The above case has thus no application in the

present case where the question is succession to property.

Present is not a case of succession to any office. It is true that

the word succession is also used in the context of an office

but present is not a case of succession to office. We thus are

of the view that the above judgment of the Apex Court does

not help the petitioners in the present case.

       32. The Constitution of India contains several provisions

for protection of forests. Article 48A provides for protection

and improvement of environment and safeguarding of forests

and wild life. Article 51A sub-clause (g) provides that it shall

be the duty of every citizens of India to protect and improve
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 38 :-


the natural environment including forests, lakes, rivers and

wild life.

       33. The State Legislature, even more than a century

ago, have passed legislation for protection of forests.               An

area       when declared as reserved forests, it has to be

maintained as such and it is the obligation of the forest

department of the State to maintain reserved forests. The

provisions of Section 22 of 1961 Act has been enacted with

the object of creating restrictions of acquisition of right in a

reserved forest which has been imposed with an object and

the provisions of Section 22 has to be interpreted keeping in

mind the very object and purpose of the Act.                    We thus

conclude that the petitioner could not have acquired any

right in the reserved forest contrary to the provisions of

Section 22 of the Act, it is also relevant to note that as per

the proviso to Section 22, no Patta without previous sanction

of the Government can be granted for any land included

within the reserve forests.                    When the grant of patta is

prohibited without sanction of the Government, we fail to see

any reason in permitting a private owner to grant right by
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 39 :-


transfer in a leased area without sanction from the State

Government.                Thus the restriction under Section 22

prohibited the vendor, from whom the petitioners acquired

the leased area by sale deed dated 26.04.1994. We thus

hold that sale deed dated 26.04.1994 was hit by Section 22

and no valid right could be claimed by the petitioners in the

leased area. We however leave it open for the petitioners to

take such remedy against the vendor as permissible under

law.

ISSUE NO.IV

       34. One of the submissions pressed by learned Special

Government Pleader (Forests) is that the order of the State

Government dated 24.06.2011 cancelling the lease deed is

also supportable on the ground that petitioner has violated

the terms and conditions of the lease. It is submitted that

both in the show cause notice issued to the petitioner as well

as in the order cancelling the lease, violation of the terms

and conditions of the lease was found. For appreciating the

aforesaid submission, the terms and conditions of the lease

deed are to be noted. Clauses 4, 5 and 10 in the lease deed
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 40 :-


dated 09.05.1933 are relevant and are extracted below:

                 "4.      82.45 acres of land thus leased out shall be used by

        the lessees for raising catchcrops at their option provided the nature

        of the crops is not in the opinion of the Conservator of Forests

        injurious to the soil. The Lessees shall develop 16 and odd acres

        each year so that the whole area is developed by the end of the 5th

        year.

                 5.       For purpose of this lease the Conservator of Forests

        shall be regarded by the Lessees as a Superior authority in matters

        relating to their leased forests and if in his opinion any injury of

        permanent nature is done to the land whereby the land becomes

        unfit for the growth of valuable timber, the Lessees shall be liable to

        pay a fine of Rs.10/ per acre.

                 10.      In the event of the Lessees making default in the

        observance or fulfillment of any of the terms and conditions herein

        contained and failing to remedy such default for six months after

        notice so to do shall have been given to them by the Conservator of

        Forests the Lessor shall be at liberty at any time thereafter after

        notice to the Lessees and hearing them in person or through their

        agent or vakil duly appointed about the failure of the Lessees to

        remedy such defaults they may be reported to the Lessor from time

        to time by the Conservator of Forests to determine this lease and the

        Lessees shall forthwith vacate the land hereby leased and demised

        and notwithstanding such determination of this lease be liable for

        any loss which the Lessor may sustain by reason of such default and

        all such improvements made by the Lessees on the land hereby

        leased and demised as exist at the time of vacating the same must

        be left in tact and no compensation therefore can be claimed."


       35. The forest land was leased to the original lessee for
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 41 :-


the purpose of cultivation of coffee, cardamom and other

products. Clauses 4, 5 and 10 are the terms and conditions

of the lease. Under Clause 4 the leased land was required to

be used by lessee for catchcrops. The Conservator of Forest

was the superior authority in the matter relating to lease of

forest land and under Clause 10,                     lease was liable to be

determined on committing any default. The petitioner has

started using              leased area for running a resort.               The

Conservator of Forest has issued a letter dated 25.11.2002

informing the petitioner that they are not allowed to take up

any       activities in the leased area,                 other than those

permitted. The letter further mentioned that it had come to

the notice of the department that the Estate Authorities had

already started entertaining the tourists in the area.

Petitioners were put to notice that the lease was liable to be

prematurely terminated. It is useful to refer to the following

extract from letter dated 25.11.2002 issued by the

Conservator of Forest :

                 "The Government has leased out the land for the limited

       purpose of raising catchcrops under tree cover. The tourism activity

       now proposed by the Estate Management amounts to non-forestry
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 42 :-


       activity and hence clearance of Government of India is also required

       under the provisions of Forest Conservation Act, 1980.          Further,

       Government of Kerala have not taken any policy decision in

       promoting tourism activities within the leased out forest areas and

       hence the Department cannot permit you to conduct tourism within

       the forest area leased for the purpose of cultivation of coffee,

       cardamom etc. Further you are not allowed to take up any other

       activity in the leased area other than those permitted in the lease

       deed.      Under these circumstances the application for permission

       submitted by the estate authorities as per letters cited is rejected. It

       has come to the notice of the department that the Estate authorities

       have already started entertaining tourists in the area. You may also

       take note that the violation of lease conditions and conduct of non-

       forestry activity within the leased area without clearance of

       Government of India under the Forest Conservation Act, 1980, may

       force the department to initiate action for premature termination of

       the lease. Hence you are advised not to resort to any activity not

       permitted under the agreement.

       xx xx      xx ."


       36. On           receipt of the letter dated 25.11.2002 the

petitioner rushed to this Court by filing O.P. No.38847 of

2002.        The petitioners also prayed for an interim order

directing the respondent not to interfere in their running of

tourist activities. An interim order was passed by this Court

in the aforesaid writ petition, which, however, came to an end

on 19.11.2004. The petitioner even after the expiry of the
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 43 :-


interim order continued to carry on the tourist activities in the

leased area as has been reported by the Divisional Forest

officer in its letter dated 21.08.2006 Ext.R2(d). The Flying

Squad of Divisional Forest Officer inspected the estate on

16.08.2006. It was reported that the petitioner was running a

resort namely "Tropical Hill Resort" at Nelliyampathy Hills.

Inspection team took various registers, bill etc from the

Resort.        The Divisional Forest Officer in his letter dated

21.08.2006 has reported that the last stay of the tourist was

on 01.08.2006. It is thus clear that even after vacation of the

interim order obtained by the petitioner in O.P. No.38847 of

2002, they continued with the tourist activities in the said

area for more than 1= years. As noted above, the terms and

conditions of lease deed oblige the petitioner to use the

estate for growing catchcrops.                   Use of the estate for any

other purpose by the petitioner was also a clear violation of

the terms and conditions of the lease and we do not find any

error in the finding of the State Government that the

petitioner had violated the terms and conditions of the lease

and hence the leased area was liable to be resumed by the
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 44 :-


State.       The State has also recorded a finding that the

application of the petitioner for amendment of the conditions

of lease to include the tourist activities was rejected by the

Forest Officer, Nenmara. Since the tourist activity is a non-

forestry activity, starting of resort activity could not have

been permitted. We thus hold that cancellation of lease for

violation of the lease conditions was fully justified.                Issue

No.IV is answered accordingly.

ISSUE NO.V

       37. The 1980 Act has been enacted by the Parliament

for the conservation of forests and for matters connected

therewith or ancillary or incidental thereto. The Statement of

objects and reasons for the enactment of the 1980 Act states

"deforestation causes                   ecological imbalance and leads to

environmental deterioration.                      De-forestation had been

taking place on a large scale in the country                    and it had

caused widespread concern....".                   Section 2 of the 1980 Act

contained a restriction on the de-reservation of forests or use

of forest land for non-forest purpose. Section 2 as amended

by Amendment Act 1988 is as follows:
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 45 :-


                 "2. Restriction on the de-reservation of forests or use

        of forest land for non-forest purpose.- Notwithstanding

        anything contained in any other law for the time being in force in a

        State, no State Government or other authority shall make, except

        with the prior approval of the Central Government, any order

        directing-

                 (i) that any reserved forest (within the meaning of the

                 expression "reserved forest" in any law for the time being

                 in force in that State) or any portion thereof, shall cease to

                 be reserved;

                 (ii) that any forest land or any portion thereof may be used

                 for any non-forest purpose;

                 (iii) that any forest land or any portion thereof may be

                 assigned by way of lease or otherwise to any private

                 person or to any authority, corporation, agency or any

                 other organisation not owned, managed or controlled by

                 Government;

                 (iv) that any forest land or any portion thereof may be

                 cleared of trees which have grown naturally in that land or

                 portion, for the purpose of using it for reafforestation.

        Explanation - For the purpose of this section, "non-forest purpose"

        means the breaking up or clearing of any forest land or portion

        thereof for-

                 (a) the cultivation of tea, coffee, spices, rubber, palms, oil-

                 bearing plants, horticultural crops or medicinal plants;

                 (b) any purpose other than reafforestation;

                 but does not include any work relating or ancillary to

                 conservation, development and management of forests

                 and wildlife, namely, the establishment of check-posts, fire

                 lines, wireless communications and construction of

                 fencing, bridges and culverts, dams, waterholes, trench
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 46 :-


                 marks, boundary marks, pipelines or other like purposes."

Preservation and conservation of forests                             have always

weighed with the Legislature in the State of Kerala as well

as Central Legislature while enacting laws even before the

enforcement of the Constitution of India. The Apex Court in

M.C. Mehta v. Kamal Nath and Others ([1997] 1 SCC

388) had occasion to consider the principle of 'public trust

doctrine' which enjoins the State to protect the natural

resources such as rivers, forests, seas shores, etc., for the

purpose of          protecting the eco system.                The following was

laid down by the Apex Court in paragraphs 25 and 34:

                 "25.     The Public Trust Doctrine primarily rests on the

         principle that certain resources like air, sea, waters and the forests

         have such a great importance to the people as a whole that it

         would be wholly unjustified to make them a subject of private

         ownership. The said resources being a gift of nature. They should

         be made freely available to everyone irrespective of the status in

         life. The doctrine enjoins upon the Government to protect the

         resources for the enjoyment of the general public rather than to

         permit then use for private ownership or commercial purposes.

         According to Professor Sax the Public Trust Doctrine imposes the

         following restrictions on governmental authority.

         Three types of restrictions on governmental authority are often

         thought to be imposed by the public trust: first, the property

         subject to the trust must not only be used for a public purpose, but
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 47 :-


         it must be held available for use by the general public; second, the

         property may not be sold, even for a fair cash equivalent; and

         third, the property must be maintained for particular types of

         uses.

                 34.      Our legal system based on English Common Law -

         includes the public trust doctrine as part of its jurisprudence. The

         State is the trustee of all natural resources which are by nature

         meant for public use and enjoyment. Public at large is beneficiary

         of the sea shore, running waters, airs, forests and ecologically

         fragile lands. The State as a trustee is under a legal duty to

         protect the natural resources. These resources meant for public

         use cannot be converted into private ownership."

The Apex Court again in Samatha v. State of A.P ([1997]

8 SCC 191) has occasion to consider the provisions of the

1980 Act.             Noticing Section 2 of the 1980 Act, the Apex

Court held that Section 2 prohibits de-reservation of forest

or      use of any forest land for non-forest purpose or

assignment by way of lease or                    any portion thereof by way

of       lease or otherwise to any private person or to any

authority or corporation, agency or any other organization

not owned, managed or controlled by the Government. In

paragraph 121, the following was laid down by the Supreme

Court:

                "121. It would thus be seen that 'forest' bears extended
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 48 :-


       meaning of a tract of land covered with trees, shrubs, vegetation

       and undergrowth inter mingled with trees with pastures, be it of

       natural growth or man made forestation. The FC Act, as amended

       by 1988 Act was enacted to check deforestation and conservation

       of forest. Sub-s.(2) with a non obstante clause on deforestation of

       forest or use of forest land for non forest purposes; regulates the

       forest and provides that notwithstanding any other law for the time

       being in force in the State, no State Government or other authority

       shall make, except with prior approval of the Central Government,

       (i) any order directing that any reserved forest or any portion

       thereof shall cease to be a reserved forest, (ii) that any forest land

       or portion thereof may be used for any non forest purpose; (iii) that

       any forest land or any portion thereof may be assigned, by way of

       lease or otherwise, to any private person or to any authority or

       corporation, agency or any other organisation, not owned,

       managed or controlled by the Government, (iv) that any forest

       land or any portion thereof may be cleared or trees which have

       grown natural in the land or portion for the purpose of using it for

       reforestation. Clauses (iii) and (iv) were added by Amendment Act

       69 of 1988 w.e.f. December 19, 1988. The explanation thereto of

       non forest purpose was defined to mean the breaking up or

       clearing of any forest land or portion thereof for the cultivation of

       but does not include any work relating to ancillary to conservation

       development and management of forest and wild life, namely,

       establishment of check posts, fire lines ......... or other like

       purposes. S.2, therefore, prohibits de - reservation of the forest or

       use of any forest land for and non forest purpose or assignment

       by way of lease or otherwise of any portion of land to any private

       person other than Government controlled or owned, organised or

       managed by the State Government agency; it prohibits clearance

       of trees or natural growth in the forest land or any portion thereof
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 49 :-


       to use it for reforestation, except for preservation. Breaking up or

       clearance of forest land or a portion thereof is amplified to be of

       non forest purpose. The object of the F.C. Act is to prevent any

       further deforestation which causes ecological imbalance and leads

       to environmental degradation. it is, therefore, necessary for the

       State Government to obtain prior permission of the Central

       Government for (1) de - reservation of forest; and (2) the use of

       forest land for non forest purpose. The prior approval of the

       Central Government, therefore, is a condition precedent for such

       permission. The State Governments are enjoined by FC Act, with

       power coupled with duty, to obtain prior approval of the Central

       Government. The leases/renewal of leases otherwise are good.

       38. In T.N. Godavarman Thirumulpadu v. Union of

India [AIR 1997 SC 1228] the Apex Court had occasion to

consider Section 2 of the 1980 Act. It was held that Section

2 shall apply clearly to all forests irrespective of the

ownership or classification thereto. In paragraph 4 of the

judgment, following was held:

                 "4.      The Forest Conservation Act, 1980 was enacted

         with a view to check further deforestation which ultimately results

         in ecological imbalance; and therefore, the provisions made

         therein for the conservation of forests and for matters connected

         therewith, must apply to all forests irrespective of the nature of

         ownership or classification thereof. The word "forest: must be

         understood according to its dictionary meaning. This description

         covers all statutorily recognised forests, whether designated as

         reserved, protected or otherwise for the purpose of Section 2(i) of
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 50 :-


         the Forest Conservation Act. The term "forest land", occurring in

         Section 2, will not only include "forest" as understood in the

         dictionary sense, but also any area recorded as forest in the

         Government record irrespective of the ownership. This is how it

         has to be understood for the purpose of Section 2 of the Act. The

         provisions enacted in the Forest Conservation Act, 1980 for the

         conservation of forests and the matters connected therewith must

         apply clearly to all forests so understood irrespective of the

         ownership or classification thereof. This aspect has been made

         abundantly clear in the decisions of this Court in Ambica quarry

         Works and Ors. v. State of Gujarat and Ors.: AIR1986SC1620,

         Rural Litigation and Entitlement Kendra v. State of U.P.:

         AIR1988SC2187 , and recently in the order dated 29th

         November, 1996 in W.P.(C) No. 749/95 (Supreme Court

         Monitoring Committee v. Mussorie Dehradun Development

         Authority and Ors.). The earlier decision of this Court in State of

         Bihar v. Banshi Ram Modi and Ors.: AIR1985SC814 , has,

         therefore, to be understood in the light of these subsequent

         decisions. We consider it necessary to reiterate this settled

         position emerging from the decisions of this Court to dispel the

         doubt, if any, in the perception of any State Government or

         authority. This has become necessary also because of the stand

         taken on behalf of the State of Rajasthan even at this late stage,

         relating to permissions granted for mining in such area which is

         clearly contrary to the decisions of this court. It is reasonable to

         assume that any State Government which has failed to

         appreciate the correct position in law so far, will forthwith correct

         its stance and take the necessary remedial measures without any

         further delay."

       39.        Shri       M.P.       Madhavankutty,         learned      Special
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                              -: 51 :-


Government Pleader                      has referred to and relied on a

judgment of the Division Bench of this Court in Jairaj A.P. v.

Chief Conservator of Forests (Wild life) and Others (ILR

1996 [2]            Kerala 270).             In the above case, the State

Government proposed a construction of forest lodge in the

buffer zone of             Parambikulam           Wild Life Sanctuary.       The

proposed construction was challenged on the ground that it

violates Section 2 of the 1980 Act since prior approval of the

Central Government has not been obtained. The Apex Court

upheld the challenge and issued a writ of mandamus. The

following was laid down in paragraph 8:

                  "8. The requirement in S.2 for prior approval of Central

       Government must be strictly construed as any relaxation of it

       would be perilous to the fast depleting forest wealth of the country.

       One of the directive principles of State Policy is to "safeguard the

       forests and wild life of the country" (Art.48A of the Constitution).

       One of the fundamental duties of every citizen of India is to protect

       and improve forests (Art.51A Clause (g)). So clearance of forest

       area should be allowed only as a stark exception. When

       Parliament insisted that such clearance can be made only with the

       prior permission of Central Government the rule should be

       rigorously followed. Forest wealth is already an endangered

       bounty of nature."

       40. Shri N.N.Sugunapalan, learned Senior Advocate for
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 52 :-


the petitioner has relied on the Division Bench judgment of

this Court in             Nature Lovers Movement v. State of

Kerala (ILR 2000 [3] Kerala 219). It is contended by the

learned Senior Advocate that                    when the forest          has been

cleared prior to the                enforcement of the 1980 Act,              prior

approval of the Central Government is not necessary. In the

above case Original Petition was filed in public interest for a

declaration that all leases, licences and grants given by the

State       Government in respect of the                     forest land stood

automatically expired on the commencement of the 1980

Act, and a prayer was made for quashing Exts.P1 and P2

granting lease and licences to various persons after the

commencement of the 1980 Act. The Division Bench in the

above case held the following in paragraph 6:

                 "6. The main question that arises for consideration in this

        writ petition is whether the prior approval of the Central

        Government is a sine-qua-non before renewing/extending leases

        of plantations which had been broken up and used for the non

        forest purposes of plantation activity even before the coming into

        force of the Act. In this connection, it has to be noted that the

        question has to be answered . with reference to the type of

        activity carried on in the land. Admittedly, the land in question is a

        plantation and in order to continue the plantation activity in the
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 53 :-


        estate no further 'breaking up' of the area is required, whereas, all

        that is required is only periodical "shade tree lopping" which is not

        an activity prevented by any law in force. The plantation activity

        will not result in further deforestation. These facts are admitted in

        Para.6 of the counter affidavit filed by the State Government on

        21st February 1996. Admittedly, plantation activity can be called a

        form of afforestation as plantations provide more than 40 percent

        green cover, as in the case of a dense forest. The case of

        plantation is different from the case of mining leases in forest land

        where for every mining activity, breaking up of the forest is

        involved".

The Apex Court had occasion to consider the issue as to

whether the 1980 Act has any retrospective operation in a

case arising out of the Full Bench judgment of this Court in

Nature Lovers Movement v. State of Kerala ([2009] 5

SCC 373). The Writ Petition was dismissed by the High Court

holding that the 1980 Act was prospective in operation and

the provisions contained therein were not applicable to the

cases where             land was used for non-forest purpose prior to

25.10.1980.             Considering the object of the 1980 Act, the

following was laid down by the Apex Court in paragraphs 39,

47 and 48:

                 "39.     Undisputedly, the object of the 1980 Act is

        conservation of forest and to prevent depletion thereof. Therefore,
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 54 :-


        the Court is bound to interpret the provisions of that Act which

        would further the object of the legislation. After enforcement of the

        1980 Act, the State Governments were denuded of suo moto

        power to deal with reserved forest or forest land and permit use

        thereof for non forest purposes. They could do so only after

        obtaining prior approval of the Central Government. However, as

        large tracts of reserved forests and forest land had been occupied

        by landless poor, who also undertook cultivation for their

        sustenance many decades before the enactment of the 1980 Act,

        and there was demand from several quarters that old occupation

        of the forest land may be regularised, the Government of India,

        after taking note of the recommendations made in the Forest

        Ministers Conference and committee appointed by it, issued

        guidelines for grant of approval to the decision taken by the State

        Governments before the enforcement of the 1980 Act, i.e.,

        25/10/1980 to regularize encroachments made on forest land and

        / or use thereof for non forest purpose. This necessarily implies

        that where the State Government had not taken any policy

        decision to regularize pre 25/10/1980 occupation / encroachment

        of forest land no order for regularization of such occupation /

        encroachment can be passed without obtaining prior approval of

        the Central Government in terms of S.2 of the 1980 Act which, as

        mentioned above, contains a non obstante clause.


                 47.      The ratio of the above noted judgments is that the

        1980 Act is applicable to all forests irrespective of the ownership

        or classification thereof and after 25/10/1980, i.e., date of

        enforcement of the 1980 Act, no State Government or other

        authority can pass an order or give a direction for dereservation of

        reserved forest or any portion thereof or permit use of any forest

        land or any portion thereof for any non forest purpose or grant
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 55 :-


        any lease, etc. in respect of forest land to any private person or

        any authority, corporation, agency or organization which is not

        owned, managed or controlled by the Government.


                 48.      Another principle which emerges from these

        judgments is that even if any forest land or any portion thereof

        has been used for non forest purpose, like undertaking of mining

        activity for a particular length of time, prior to the enforcement of

        the 1980 Act, the tenure of such activity cannot be extended by

        way of renewal of lease or otherwise after 25/10/1980 without

        obtaining prior approval of the Central Government."

The Apex Court had disposed of the aforesaid appeal by

issuing certain directions and declaration                      in paragraph 52

which are to the following effect:

                 "52. In the result, the appeal is disposed of in the following

        terms:

                 (1) The policy decision taken by the Government of Kerala

        to assign 28,588.159 hectares of forest land to unauthorized

        occupants / encroachers after seeking approval from the Central

        Government does not suffer from any legal infirmity and the High

        Court rightly declined to interfere with the said decision.


                 (2) After the enforcement of the 1980 Act, neither the State

        Government nor any other authority can make an order or issue

        direction for de-reservation of reserved forest or any portion

        thereof or permit use of any forest land or any portion thereof for

        any non forest purpose or assign any forest land or any portion

        thereof by way of lease or otherwise to any private person or to

        any authority, corporation, agency or organization not owned,
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 56 :-


        managed or controlled by the Government except after obtaining

        prior approval of the Central Government.


                 (3) Conclusion No.D recorded by the High Court in para

        103 of the impugned judgment is legally unsustainable and is set

        aside.


                 (4) As and when the State Government decides to assign

        10,000 hectares of forest land to unauthorised occupants /

        encroachers, it shall do so only after obtaining prior approval of

        the Central Government and the latter shall take appropriate

        decision keeping in view the object of the 1980 Act and the

        guidelines framed for regularization of encroachments on forest

        land."



       41. In the present case                  as noted above, the State

issued show cause notice for cancellation of the lease on the

ground that petitioners are using the leased land for running

a tourist resort which is a non-forest activity requiring prior

approval of the Central Government under Section 2 of the

1980 Act.          The Division Bench judgment as relied on by the

petitioners in            Nature Lovers Movement v. State of

Kerala (supra) does not help the petitioner in the present

case.

       42. Learned Senior Advocate for the petitioner further
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 57 :-


placed reliance on the judgment of the Apex Court in State

of Bihar v. Banshi Ram Modi ([1985] 3 SCC 643) in

support of his argument that in event permission had been

granted for breaking of reserve forest prior to enforcement

of the 1980 Act, permission of the Central Government is not

required.         It is submitted that in the present case plantation

lease was granted prior to the enforcement of the 1980 Act,

hence the provisions of the the 1980 Act                     shall not apply.

The judgment in State of Bihar v. Banshi Ram Modi

(supra) was explained by the Apex Court in a Constitution

Bench in Ambica Quarry Works v. State of Gujrat and

Others ([1987] 1 SCC 213) where it was held that the ratio

of judgment in               State of         Bihar v. Banshi Ram Modi

(supra) has to be understood in the background of facts of

that case. As noted above, in Nature Lovers Movement

v. State of Kerala (supra) after considering all the relevant

judgment, the                  Three Judges Bench held that after

enforcement of the 1980 Act neither the State Government

nor any authority can make an order or direction for de-

reservation of forest or permit                   use of forest land for non-
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 58 :-


forest purpose or any portion thereof assigned by way of

lease or otherwise to any private person or to any authority

or corporation, agency or any other organization not owned,

managed or controlled by the Government except with the

prior approval of the Central Government.                   From      the

above discussion it is clear that petitioner has                used the

leased land for non-forest purpose, i.e., for running tourism

resort after the enforcement of the 1980 Act which was in

clear violation of the provisions contained in Section 2 of the

1980 Act.             For violation of the statutory provisions as

contained in Section 2 of the 1980 Act, the State has rightly

proceeded to issue show cause notice to the petitioner and

cancelled the lease. The action of the State for cancellation

of the lease            granted to the petitioner was thus fully in

accordance with the                   provisions of the 1980 Act. Ext.P10

cannot be faulted.

ISSUE NO.VI

       43. Learned              Senior Advocate for the petitioner has

contended in support of the Writ Petition that petitioner was

running a tourist resort only in a part of the leased land and
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 59 :-


at best the State could have proceeded against that portion

of the lease on which non-forest activity was carried on. The

State has no authority or right to cancel the entire leased

area which was purchased by the petitioner on 26.04.1994.

The above submission raised by the learned counsel for the

petitioner        has       been refuted         by   the learned Special

Government Pleader appearing for the State. It is submitted

by the learned Special Government Pleader that in reply to

the show cause notice                       dated 04.01.2008 given to the

petitioner          no such plea was              raised by the petitioner.

Learned Special Government Pleader has referred to the

reply submitted by the petitioner dated 14.03.2008, Ext.P8.

       44. We have perused the reply given by the petitioner

to the show cause notice.                    Although in the reply it was

admitted that petitioner was running                     home stay facility

which was stopped after the stay order was vacated in the

Original Petition filed by the petitioner in this Court

challenging the notice dated 25.11.2002, there was no such

plea in the reply that petitioner is running the tourism resort

in any part of the leased area of land. No such details were
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                              -: 60 :-


mentioned in the reply.                     In the Writ Petition in any of the

paragraphs also, no such plea was raised by the petitioner

that the petitioner was                    carrying tourist resort only in a

particular portion of the lease and respondents are not

entitled to cancel the entire lease area.                      There being no

pleading on behalf of the petitioner that the petitioner is

carrying on tourism activities only in a portion of the leased

area, it was not necessary for the State to consider any such

plea.      Moreover, petitioner having violated the terms and

conditions of the lease, as held above, the State was well

within its power and jurisdiction to cancel all the leases

which leased area was purchased by the petitioner by sale

deed dated 26.04.1994.

       45. In view of the foregoing discussion we are of the

view that          petitioner         has     not made out any ground for

setting aside Ext.P10 order cancelling the lease deed in

respect of Miraflores Estate of 486.63 Acres. The State has

after issuance of Ext.P10 order has already resumed the land

on 27.06.2011.

       46. Now we come to W.A. No.89 of 2011 which has been
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 61 :-


filed by the State against the judgment dated 11.08.2010 by

which judgment, the learned Single Judge has directed the

respondents to conduct a comprehensive survey                        and

demarcate and measure 486.63 acres possession of which

forest land was claimed by the petitioner. Learned Single

Judge further directed for payment of cost of Rs.25,000/-.

The State in its counter affidavit filed in the Writ Petition has

pleaded that survey was already conducted and boundaries

demarcated.             A survey sketch was also filed along with the

counter affidavit as Ext.R3(a).                   Learned counsel for the

appellants is also right in his submission that there was no

ground for imposing the cost of RS.25,000/- on the State. For

the reasons, we have noted above, the Writ Appeal filed by

the State is to be allowed setting aside the judgment of the

learned Single Judge dated 11.08.2010.

       The Writ Appeal and Writ Petition are disposed of as

follows:

                 (1) W.P.              No.18339      of  2011    is

        dismissed.

                 (2) W.A. No.89 of 2011 is allowed.

        The judgment of the learned Single Judge
W.A. No. 89 of 2011 & W.P(C) No.18339 of 2011
                                             -: 62 :-


        in      W.P(C)           No.35736         of  2002    dated

        11.08.2010               is     set     aside  and  W.P(C)

        No.35736 of 2002 is dismissed.

       Parties shall bear their costs.




                                                 ASHOK BHUSHAN,
                                                   CHIEF JUSTICE.




                                            P.R. RAMACHANDRA MENON,
                                                     JUDGE.

vsv/ttb