Daijiworld Media Network - New Delhi

New Delhi, Jul 16: The Supreme Court has ruled that land granted under the Agricultural Tenancy Act cannot be used for non-agricultural purposes like construction, reaffirming a crucial legal precedent.

A division bench comprising Justices Sudhanshu Dhulia and Arvind Kumar passed the ruling on Monday in a special leave petition filed by the Thivim Comunidade, challenging a Bombay High Court order that refused to permit an out-of-court settlement in a tenancy dispute.

The case pertains to two plots of land in Goa (Survey Nos. 448/0 and 440/0) leased in 1978 to the ancestors of Biku Vaigankar and others. In 1986, after the original tenants passed away, the successors approached the Civil Court to register themselves as tenants, which was allowed in an ex-parte ruling.

While Thivim Comunidade challenged the decision in District Court, both parties later agreed to a compromise. As per the consent terms passed at a general body meeting in March 2021, 60% of the land was to be given to the tenants and 40% retained by the Comunidade.

However, the agreement required approval from the Administrative Tribunal under the Code of Comunidades, which was denied. The Bombay High Court upheld this decision, prompting Thivim Comunidade to approach the Supreme Court.

Rejecting the plea, the apex court observed that the compromise violated both the Agricultural Tenancy Act and the Land Use Act by creating freehold rights without following legal procedure and by enabling use of farmland for non-agricultural purposes.

Calling the compromise an "abuse of the process of law," the bench noted it was a deliberate ploy to sidestep legal provisions.

Reacting to the judgement, Goa's Advocate General Devidas Pangam highlighted that the High Court has consistently ruled against repurposing tenanted agricultural land for any other use.