High Court of KeralaDivision BenchRevision petition partly allowed; Wakf Tribunal...

K.T. Beeran Kutty and M.C. Ismalkutty v Kerala State Wakf Board and Others

Case / Petition Number:CRP No. 104 of 2012

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • ANTONY DOMINIC
  • DAMA SESHADRI NAIDU
Judgment Date
2016-06-01
Court Decision / Holding
The judgment sets aside the Wakf Tribunal OA judgment to the extent it directs the petitioners to remit sale proceeds (₹60,459) and declares that the petitioners shall not deal with Wakf property, including standing timber or trees, without following the Wakf Act procedures as amended. It holds that the Wakf Act’s amendments (2013) strengthen protections against the dissipation of wakf property and directs compliance with the Act going forward. There is no order on costs.
Final Disposition
Revision petition partly allowed; Wakf Tribunal order set aside to the extent it calls for remittance of sale proceeds; remittance directed for ₹60,459; directors to adhere to Wakf Act procedures; no costs order.

Parties to the Case

Appellants / Petitioners

  • K.T.BEERAN KUTTY
  • M.C.ISMALKUTTY

Respondents

  • KERALA STATE WAKF BOARD represented by its Secretary
  • THE CHIEF EXECUTIVE OFFICER KERALA STATE WAKF BOARD
  • MATTATHOOR V.MUHAMMED MUSALIAR
  • K.M.MUHAMMED KUTTY HAJI
  • K.K.ASHRAF
  • A.K.MAMMU MUSALIAR

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. Elvin Peter P.J.
  • • Sri. T.G.Sunil (Pranavam)
  • • Sri. K.R.GANESH

Counsels for Respondents

  • • Sri.K.M.FIROZ
  • • Smt.M.SHAJNA
  • • Sri A.A.ABUL HASSAN, SC, Wakf Board

Case Synopsis & Summary

The petitioners, two members of the Vavoor Juma At Palli Paripalana Committee, challenge the Wakf Tribunal’s OA 9 of 2011 (disposed by judgment dated 20 January 2012) which interdicts the Committee from cutting trees and orders deposit of sale proceeds from trees felled earlier. The Wakf Board had initially passed orders in 2007 and 2009 interdicting further felling and directing deposit of sale proceeds; the Committee instead furnished a bank guarantee. The petitioners contend that the felling and sale occurred before 2013 when Wakf Act amendments—Section 51 and an insertion of Section 104-A (104(a))—were introduced, and that the unamended provisions did not define immovable property to include standing timber. They rely on the General Clauses Act, Transfer of Property Act, and Registration Act definitions, and cite Smt. Shantabai v State of Bombay and others (AIR 1958 SC 532) and Triveni Engineering Industries Ltd. v Commissioner of Central Excise (2000) 7 SCC 29 to argue standing timber should not automatically be classed as immovable property. The respondents maintain that the enquiry found illegality and misappropriation of proceeds; they emphasize that the Act has evolved to prevent dissipation of Wakf property. The Kerala High Court, noting the narrow scope, holds that post-2013 amendment, the Wakf Act protects property; it sets aside the OA judgment to the extent it requires remittance of sale proceeds (₹60,459) and directs that no Wakf property, including standing timber, be dealt with without following Wakf Act procedures, and without the required statutory compliance. The Court records no costs order.

Provisions of Law Cited

Wakf Act Section 51Wakf Act Section 104-AWakf Act Section 104(a)General Clauses Act Section 3(26) (definition of immovable property)Transfer of Property Act Section 3Registration Act Section 2(6)Constitution of India Article 19(1)(f) and (g)Constitution of India Article 32

Legal Doctrines & Maxims

  • Distinction between standing timber and timber for the purposes of defining immovable property
  • Immovable property is defined by statutory definitions in the Transfer of Property Act and General Clauses Act; standing timber may be movable depending on ability to use as timber when cut
  • Post-2013 amendments to Wakf Act to prevent dissipation of Wakf property

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners contend that the felling of the trees and removal of timber occurred before 2013, when Section 51 of the Wakf Act was amended and Section 104(a) inserted. They submit the unamended Act did not define immovable property to include standing timber, relying on the General Clauses Act, Transfer of Property Act, and Registration Act. They argue standing timber is not immovable property until it could be used as timber after cutting, and rely on Smt. Shantabai v State of Bombay and Triveni Engineering to emphasize the complexity of the immovable property definition. They urge that, prior to amendment, the Wakf Act did not expressly prohibit disposal of movable property by a wakf committee.

Contentions of Respondents

The Wakf Board and its counsel counter that the enquiry found illegality and misappropriation in cutting trees and sale of proceeds. They argue that standing timber, once classified through the Act’s evolving definitions, falls within the scope of wakf property and that post-amendment 104-A explicitly bars any sale, gift, exchange, mortgage, or transfer of wakf property, movable or immovable. They assert that the committee acted as a trustee and must obtain Wakf Board permission before intermeddling with Wakf property. They rely on statutory interpretations and the need to prevent dissipation of Wakf assets, with references to the General Clauses Act, Transfer of Property Act, and Registration Act to explain immovable property concepts.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Smt. Shantabai v State of Bombay and othersAIR 1958 SC 532PositiveUsed to discuss the distinction between standing timber and timber and the concept of immovable property; supports the principle that standing timber may not automatically be immovable
Triveni Engineering Industries Ltd. and another v Commissioner of Central Excise and another(2000) 7 SCC 29DistinguishedCited to contrast with the present context; court finds it not directly applicable

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Extracted Judgment Text

Exact text extracted from official judgment records.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE ANTONY DOMINIC & THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU WEDNESDAY, THE 1ST DAY OF JUNE 2016/11TH JYAISHTA, 1938 CRP.No. 104 of 2012 () ----------------------- AGAINST THE ORDER/JUDGMENT IN OA 9/2011 of WAKF TRIBUNAL, KOZHIKODE DATED 20-01-2012 PETITIONERS/PETITIONERS: ---------------------- 1. K.T.BEERAN KUTTY, AGED 56 YEARS, S/O.MOHAMMED HAJI, MANNATHANATH HOUSE, CHEEKODE AMSOM, VAVOOR DESOM, CHEEKODE P.O., PIN-673 654, MALAPPURAM DISTRICT. 2. M.C.ISMALKUTTY AGED 56 YEARS, S/O.MOIDEEN, MANGATICHALIL HOUSE, CHEEKODE AMSOM, VAVOOR DESOM, CHEEKODE. BY ADVS.SRI.ELVIN PETER P.J. SRI.T.G.SUNIL (PRANAVAM) SRI.K.R.GANESH RESPONDENTS/RESPONDENTS: ----------------------- 1. KERALA STATE WAKF BOARD REPRESENTED BY ITS SECRETARY, PARAMARA ROAD, ERNAKULAM, COCHIN-18. 2. THE CHIEF EXECUTIVE OFFICER KERALA STATE WAKF BOARD, PARAMARA ROAD, ENRAKULAM, COCHIN-18. 3. MATTATHOOR V.MUHAMMED MUSALIAR AGE NOT KNOWN, VAVOOR P.O., CHEEKODE, MALAPPURAM, PIN-673 645. 4. K.M.MUHAMMED KUTTY HAJI AGE NOT KNOWN, MANATHANATH HOUSE, VAVOOR P.O., CHEEKODE, MALAPPURAM, PIN-673 645. 5. K.K.ASHRAF AGE NOT KNOWN, S/O.MUHAMMED, VAVOOR P.O., CHEEKKODE, PIN-673 645. 6. A.K.MAMMU MUSALIAR S/O.MUHAMMED HAJI, ALUNGAPARAMBIL HOUSE, CHEEKODE AMSOM, VAVOOR DESOM, MALAPPURAM, PIN-673 645. R1 BY ADV. SRI.K.M.FIROZ ,CAVEATOR R4-R6 BY ADV. SRI.K.M.FIROZ R4-R6 BY ADV. SMT.M.SHAJNA R BY SRI.K.M.FIROZ R BY SRI.A.A.ABUL HASSAN, SC, WAKF BOARD THIS CIVIL REVISION PETITION HAVING BEEN FINALLY HEARD ON 01-06-2016, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: ## **ANTONY DOMINIC & DAMA SESHADRI NAIDU, JJ. ------------------------------------------CRP No. 104 of 2012** ## **-----------------------------------------Dated this the I[st] day of June, 2016.** ## **JUDGMENT** Dama Seshadri Naidu,J. The Petitioners, the General Secretary of the Vavoor JumaAt Palli Paripalana Committee and one of its members, are aggrieved by the judgment dated 20[th] January 2012 in O.A.No. 9 of 2011. They have, accordingly, filed the present revision petition. 2. The facts, briefly stated, are that the Wakf, a hundredyear one, had its building in a dilapidated condition. To renovate it, the Committee, apart from collecting donations, sold two teak trees and said to have used the proceeds for renovation. 3. At that juncture, the respondents 4 to 6, the members of the Mahalloo, complained to the Wakf Board about cutting the trees without prior permission and about the alleged misappropriation of the proceeds thereof. In that context, after hearing the parties concerned, the Wakf Board passed two orders CRP No. 104/2012 : 2 : dated 24.11.2007 and 14.10.2009 interdicting the Committee from cutting any more trees, apart from directing it to deposit the sale proceeds of the trees felled and sold earlier. As seen from the subsequent developments, the Committee has, instead, provided a bank guarantee, in compliance with the direction given by the Wakf Board. 4. At any rate, assailing the orders to the Wakf Board, the petitioners filed O.A. No. 9 of 2011 before the Wakf Tribunal, Kozhikode, which, through the impugned judgment dated 20.1.2012, dismissed the O.A. It held that the trees, treated as immovable property, were cut and removed by the Committee without the Board’s prior permission. Further aggrieved, the petitioners have approached this Court. 5. The learned counsel for the petitioners has strenuously contended that the felling of the trees and removal of timber took place before 2013, only when was Section 51 of the Wakf Act amended and Section 104(a) inserted. According to him, the unamended provision never interdicted the power of the Committee to deal with the Wakf’s movable property. CRP No. 104/2012 : 3 : 6. In elaboration, the learned counsel has submitted that the trees removed were over hundred years old and that they were nothing but standing timber, which stands excluded from the definition of immovable property. To support his submissions, the learned counsel has drawn our attention to the definitional provisions of the General Clauses Act, the Transfer of Property Act, and the Registration Act. 7. The learned counsel has further placed reliance on the judgments of the Hon’ble Supreme Court in **Smt. Shantabai** v **State of Bombay and others**[1] and also in **Triveni Engineering Industries Ltd. and another** v C **ommissioner of Central Excise and another**[2] **.** 8. Summing up his submissions, the learned counsel has submitted that the Wakf Act has not defined the immovable property. According to him, the lexical provisions of various statues concerning immovable property have already been considered in the judgment of the Supreme Court referred to above. In sum and substance, the learned counsel would contend that the felling of the trees, by any reckoning, would not amount > 1 AIR 1958 SC 532 > 2 (2000) 7 SCC 29 CRP No. 104/2012 : 4 : to any violation of the statutory mandate in the Wakf Act. And once the trees were treated as immovable property, at least until the Act underwent an amendment, the act on the Committee’s part could not be faulted. 9. Per contra, the learned counsel for the respondents 4 to 6 has submitted that, based on the complaint lodged by the respondents 4 to 6, there was initially an enquiry. The findings of the enquiry were that the felling of the trees, in the first place, was illegal and that the proceeds were misappropriated. 10. The learned counsel has further submitted that the definition in the Transfer of Property Act is meant for the purposes envisaged by the very Act. On the other hand, if one were to rely, he further avers, on the definition under the General Clauses Act, it is only inclusive without spelling out any exclusion as regards the standing timber. According to him, comprehensively viewed, the Committee acts only as a trustee, and it is essential for the Committee to seek the permission of the Wakf Board before it intermeddles with the property in any manner. He, thus, urges that the judgment impugned cannot be interdicted. CRP No. 104/2012 : 5 : 11. The learned counsel, too, has relied on the judgment of the Supreme Court in Shantabai (supra), relied on by the learned counsel for the petitioners. He has drawn our attention specifically to paragraphs 28 and 33 of the judgment. 12. Heard Sri Elvin Peter P.J., the learned counsel for the petitioners, Sri. A.A.Abul Hassan, the learned Standing Counsel appearing for the Wakf Board, and Sri K. M. Firoz, the learned counsel appearing for respondents, apart from perusing the record. 13. Indeed, the issue lies in a very narrow compass. Perhaps, realising the statutory lacuna, the legislature amended Section 51, apart from inserting Section 104(a), in 2013. Till then, the governing position was that the wakf’s immovable property should not be dissipated by any means, such as a sale. In the present instance, as has been contended by the learned counsel for the petitioners, the Wakf Act is silent about what is meant by ‘immovable property’. Analogously interpreting, we may as well refer to the General Clauses Act, in which Section 3(26) of Act defines the immovable property as follows: CRP No. 104/2012 : 6 : “Immovable property’’ shall include land, benefits to arise out of land, and things attached to the earth, of permanently fastened to anything attached to the earth.” 14. We may, incidentally, refer to the interpretation clauses of the Transfer of Property Act and also the Registration Act, to explore the semantic significance of the expression ‘immovable property. As per Section 3 of the Transfer of Property Act, “immovable property” does not include standing timber, growing crops, or grass, unless something is repugnant in the subject or context. The definition, therefore, is exclusionary. Section 2 (6) of the Registration Act, too, though more explicit, defines the term inclusively. Immovable property includes land, buildings, hereditary allowances, rights to ways, lights, ferries, fisheries or any other benefit to arise out of the land, and things attached to the earth, or permanently fastened to anything which is attached to the earth, but not standing timber, growing crops nor grass. It is clear from the definition provided in the Registration Act that standing timber, growing crops, and grass do not answer the description of immovable property. 15. Shantabai (supra), after acknowledging that absent a CRP No. 104/2012 : 7 : special definition, that given in the General Clauses Act must prevail, proceeds to distinguish between standing timber and a tree. It holds, among other things, thus: “25. [I]t is clear that there must be a distinction because the Transfer of Property Act draws one in the definitions of "immovable property" and "attached to the earth"; and it seems to me that the distinction must lie in the difference between a tree and timber. It is to be noted that the exclusion is only of "standing timber" and not of "timber trees". 26. Timber is well enough known to be - "wood suitable for building houses, bridges, ships etc., whether on the tree or cut and seasoned." (Webster's Collegiate Dictionary). 27. Therefore, "standing timber" must be a tree that is in a state fit for these purposes and, further, a tree that is meant to be converted into timber so shortly that it can already be looked upon as timber for all practical purposes even though it is still standing. If not, it is still a tree because, unlike timber, it will continue to draw sustenance from the soil. . . . 30. In my opinion, the distinction is sound. Before a tree can be regarded as "standing timber" it must be in such a state that, if cut, it could be used as timber; and when in that state it must be cut reasonably early. The rule is probably grounded on generations of experience in forestry and commerce and this part of the law may have grown out of that. It is easy to see that the tree might otherwise deteriorate and that its continuance in a forest after it has passed its prime might hamper the growth of younger wood and spoil the forest and eventually the timber market. But however that may be, the legal basis for the rule is that trees that are not cut continue to draw nourishment from the soil and that the benefit of this goes to the grantee.” 16. In Triveni Engineering (supra), the question was whether turbo alternators are excisable goods under the Central Excise Tariff Act. The Apex Court, in that context, held that from a CRP No. 104/2012 : 8 : combined reading of the definition of immovable property' in Section 3 of the Transfer of Property Act and Section 3 (25) of the General Clauses Act, we can discern that there is neither mobility nor marketability in an immovable property, as understood in the Excise Law. To know whether an article is permanently fastened to anything attached to the earth, we are required to determine both the intention and the nature of property; this has to be ascertained from the facts and circumstances of each case. We, therefore, see little relevance to Triveni Engineering as a precedent in the present context. 17. Indeed, the learned counsel for the respondents 5 & 6, too, has relied on Shantabai (supra), especially paras 28 and 33 thereof. In para 28, their Lordships have observed that a tree, of course, will continue to draw sustenance from the soil if it continues to stand and live; and that physical fact of life cannot be altered by giving it another name and calling it "standing timber". But the nourishment it takes, if it is felled at a reasonably early date, is so negligible that it can be ignored for all practical purposes. The passage of law on the conceptual course of CRP No. 104/2012 : 9 : ‘immovable property’ has empirically grown from instance to instance and decision to decision until a recognisable and workable pattern emerged. 18. True, the Apex Court has observed that trees that have remained uncut for a long time drawing nourishment from the land, as per the Transfer of Property Act and General Clauses Act, could be treated as movable property. To appreciate the proposition of law, we may state the facts of the case. 19. A zamindar executed in 1948 an unregistered document in favour of his wife, granting her a right to enter, cut, and appropriate all kinds of wood from his zamindari forest. The document was purported to be a lease for twelve years and the consideration, too, was stated. In 1951 the proprietary rights in the zamindari estate vested in the State by a notification issued under a particular enactment. As a result, the grantee was stopped from cutting any wood from the forest. The D. F. O. took action against her for unlawful cutting of wood and forfeited the cut materials. The grantee thereupon applied under Art. 32 of the Constitution praying for setting aside of the order of D. F. O. on CRP No. 104/2012 : 10 : the ground that it infringed her fundamental rights under Art. 19 (1) (f) and (g) of the Constitution. 20. Holding that the document was a licence, rather than a lease, the Apex Court has held that the trees may have been regarded as standing timber at the date of the document. But both because of their size and girth and also because of their not getting cut soon, the trees would be movable property for the purposes of the Transfer of Property and Registration Acts. We are, therefore, of the view that the observation of the Apex Court in para 33 of the judgment cannot be read in isolation; on the other hand, they have to be read in the factual backdrop of the case. 21. Be that as it may, now, the Act has effective provisions against the dissipation of any property of whatever description. As per the newly inserted Section 104-A of the Act, which begins with a nonobstante clause, no person shall sell, gift, exchange, mortgage or transfer any movable or immovable property which is a wakf property to any other person. Any such sale, gift, exchange, mortgage or transfer of property shall be void ab initio. 22. In these facts and circumstances, we are of the opinion CRP No. 104/2012 : 11 : that the judgment impugned cannot be sustained; and, accordingly, it is set aside to the extent it calls upon the petitioners to remit the sale proceeds, i.e. ₹60,459/- concerning the trees that had been cut and sold. Nevertheless, it is further directed that the petitioners shall not deal with any property of the Wakf including the standing timber or trees without following the procedure prescribed in the Wakf Act, as it stands now. No order on costs. **Sd/-ANTONY DOMINIC, JUDGE** **sd/- DAMA SESHADRI NAIDU, JUDGE** css/- true copy P.S.TO JUDGE