Chapter VL - Collection of Land Revenue

Security for payment of land revenue. (1) In the case of every estate the entire estate and the land-owner or, if there are more than one, the land-owners jointly and severally, shall be liable for the land-revenue for the time being assessed on the estate: Provided that--(a) the State Government may by notification declare that in any estate a holding or its owner shall not be liable for any part of the land-revenue for the time being assessed on the estate except that part which is payable in respect of the holding; and (b) when there are superior and inferior land-owners in the same estate, the Financial Commissioner may by rule, or by special order in each case, determine whether the superior or interior land-owners shall be liable for the land-revenue, or whether both shall be so liable, and, if so, in what proportions. (2) A notification under proviso (a) to sub-section (1) may have reference to any single estate or to any class of estate or estates generally in any local area.

(1) The land revenue for the time being assessed on an estate or payment in respect of a holding shall be the first charge upon the rents profits and produce thereof. (2) Without the previous consent of the Collector, the rents, profits or produce of an estate or holding shall not be liable to be taken in execution of a decree or order of any Court until the land revenue chargeable against the rents profits or produce, and any arrear of land revenue due in respect of the estate or holding, have been paid.

Orders to regulate payment of land revenue. (1) Notwithstanding anything in any record-of-rights, the Financial Commissioner may fix the number and amount of the instalments, and the times, places and manner, by, at and in which land revenue is to be paid. (2) Until the Financial Commissioner otherwise directs, land revenue shall be payable by the instalments at the times and place and in the manner, by, at and in which it is payable at the commencement of this Act.

(1) The Financial Commissioner may make rules consistent with this Act to regulate the collection, remission and suspension of land-revenue and may by those rules determine the circumstances and terms in and on which land revenue may be collected by the assignee. (2) Where land revenue due to an assignee is collected by a Revenue Officer, there shall be deducted from the sum collected such a percentage on account of the cost of collection as the Financial Commissioner may by rule in this behalf prescribe. (3) A suit for an arrear of assigned land revenue shall not be entertained unless there is annexed to the plaint at the time of the presentation thereof a document under the hand of the Collector specially authorizing the institution of the suit.

The costs of any process issued under this Chapter shall be recoverable as -part of the arrear of land revenue in respect of which the process was issued

A statement of account certified by a Revenue Officer shall be conclusive proof of the existence of an arrear of land revenue, of its amount and of the person who is the defaulter.

Process for recovery of arrears. Subject to other provisions of this Act, an arrear of land revenue may be recovered by any one or more of the following processes, namely:-(a) by service of a writ of demand on the defaulter; (b) by arrest and detention of his person; (c) by distress and sale of his movable property and uncut or ungathered crops; (d) by transfer of the holding in respect of which the arrear is due; (e) by attachment of estate or holding in respect of which the arrear is due; (f) by annulment of the assessment of that estate or holding; (g) by sale of that estate or holding; (h) by proceedings against other immovable property of the defaulter.

A writ of demand may be issued by a Revenue Officer on or after the day following that on which an arrear of land revenue accrues.

(1) At any time after an arrear of land revenue has accrued, the movable property and uncut or ungathered crops of the defaulter may be distrained and sold by order of a Revenue Officer. (2) The distress and sale shall be conducted as nearly as may be, in accordance with the law for the time being in force for the attachment and sale of movable property under the decree of Revenue Court constituted under the law for time being in force: Provided that, in addition to the particulars exempted by that law from liability to sale, so much of the produce of the land of the defaulter as the Collector thinks necessary for seed grain and for the subsistence, until the harvest next following, of the defaulter and his family, and of any cattle exempted by that law, shall be exempted from sale under this section.

(1) At any time after an arrear of land revenue has accrued on a holding, the Collector may transfer the holding to any person being a land owner of the estate in which this holding is situate and not being a defaulter in respect of his own holding, on condition of his paying the arrear before being put in possession of the holding, and on such further conditions as the Collector may see fit to prescribe. (2) The transfer may, as the Collector thinks fit, be either till the end of the agricultural year in which the defaulter pays to the transferee the amount of the arrear which the transferee paid before being put in possession of the holding, or for a term not exceeding fifteen years from the commencement of the agricultural year next following the date of the transfer. (3) The Collector shall report to the Financial Commissioner any transfer made by him under this section, and the Financial Commissioner may set aside the transfer or alter the conditions thereof or pass such other order as he thinks fit. (4) A transfer under this section shall not affect the joint and several liability of the land owners of the estate in which it is enforced. (5) In respect of all rights and liabilities arising under this Act, the person to whom the holding is transferred shall, subject to the conditions of the transfer, stand in the same position as that in which the defaulter would have stood if the holding had not been transferred. (6) When the transfer was for a term, the holding shall, on the expiration of the term, be restored by the Collector to the defaulter free of any claim on the part of the State Government or the transferee for any arrear of land revenue or rates and cesses due in respect thereof.

(1) At any time after an arrear of land revenue has accrued the Collector may cause the estate or holding in respect of which the arrear is due to be attached and taken under his own management or that of an agent appointed by him for the purpose or that of a Gram Panchayat. (2) The Collector or the agent or Gram Panchayat shall be bound by all the engagements which existed between the defaulter and his tenancy, if any, and shall be entitled to manage the land and to receive all rents and profits accruing therefrom to the exclusion of the defaulter until the arrear has been satisfied, or until the Collector restores the land to the defaulter. (3) All surplus profits of the land attached beyond the cost of attachment and management and the amount necessary to meet the current demand for land revenue and rates and cesses shall be applied in discharge of the arrear. (4) Land shall not be attached for the same arrear for the longer term than five years from the commencement of the agricultural year next following the date of the attachment, but, if the arrear is sooner discharged, the land shall be released and the surplus receipts, if any, made over to the land-owner.

(1) When an arrear of land revenue has been due for a longer period than one month, and the foregoing processes are not deemed sufficient for the recovery thereof, the Financial Commissioner may, in addition to or instead of all or any of those processes, order the existing assessment of the estate or holding in respect of which the arrear is due to be annulled. (2) The provision of this section shall not be put in force for the recovery of an arrear of land revenue which has accrued on land:- (a) while under attachment under the last foregoing section; and (b) while under the charge of the Court of Wards. (3) When the assessment of any land has been annulled, the Collector may, with the previous sanction of the Financial Commissioner, either manage the land himself or through an agent, or let it in farm to any person willing to accept the farm, for such term and on such conditions as may be sanctioned by the Financial Commissioner: Provided that the term for which land may be so managed or farmed shall not be longer than fifteen years from the commencement of the agricultural year next following the date of annulment. (4) At some time before the expiration of that term the Collector shall determine the assessment to be paid in respect of the estate or holding for the remainder of the term of the current assessment of the district or tehsil, and, when that assessment has been sanctioned by the Financial Commissioner, shall announce it to the land owner. (5) The land-owner may give notice to the Collector of refusal to be liable for the assessment within thirty days from the date on which the assessment was announced to him. (6) If notice is so given, the Collector may, with the previous sanction of the Financial Commissioner, take the estate or holding under direct management or farm it for the remainder of the term of the current assessment of the district or tehsil, or for any period within that term which the Financial Commissioner may fix. (7) When the assessment of holding is annulled, the joint responsibility of other land-owners of the estate for the land revenue of that holding becoming due after the annulment shall be in abeyance until a new assessment takes effect. (8) The Financial Commissioner may direct that any contract made by the defaulter, or by any person through whom the defaulter claims, with respect to any land comprised in an estate or holding of which the assessment has been annulled, shall not be binding on the Collector or his agent or farmer during the period for which the estate or holding remains under the management of the Collector or his agent or is let in farm.

Proclamation of attachment or annulment of assessment and consequence of the proclamation. (1) When any land is attached under section 78, or when the assessment of any land has been annulled under the last foregoing section, the Collector shall maintain proclamation thereof. (2) The surplus shall not, except under an order of a Court, be making of the proclamation on account of rent or any other asset in anticipation of the usual time for the payment shall, without the special sanction of the Collector, be credited to that person or relieve him from liability to make the payment to the Collector or his agent or farmer. (3) No payment made after the making of the proclamation on account rent or any other asset of the estate or holding to any person other than the Collector or his agent or farmer shall be credited to the person making the payment or relieve him from liability to make the payment to the Collector or his agent or farmer.

When an arrear or land revenue has accrued and the foregoing processes are not deemed sufficient for the recovery thereof, the Collector, with the previous sanction of the Commissioner, may, in addition to, or instead of, all or any of those processes, and subject to the provisions hereinafter contained, sell the estate or holding in respect of which the arrear is due: Provided that land shall not be sold for the recovery of :- (a) any arrear which has accrued while the land was under the charge of the Court of Wards, or was so circumstanced that the Court of wards might have exercised jurisdiction over it under the law in force: (b) any arrear which has accrued while the land was under attachment under section 78 of this Act; or (c) any arrear which has accrued while the land was held under direct management by the Collector or in farm by any other person, under section 79, after either an annulment of assessment or a refusal to be liable therefor.

(1) Land sold under the last foregoing section shall be sold free of all encumbrances, and all grants and contracts previously made by any person other than the purchaser in respect of the land shall become void as against the purchaser at the sale. (2) Nothing in sub-section (1) shall affect:- (a) a tenant’s right of occupancy, unless the right was created by the defaulter himself; or (b) any lease at a fair rent, temporary or perpetual, for the erection of a dwelling house or manufactory, or for a mine, garden, tank, canal, place of worship, or burial ground, so long as the land continues to be used for the purposes specified in the lease; or (c) any encumbrance, grant, contract or right of occupancy specially saved by order of the Financial Commissioner and proclaimed as hereinafter provided.

(1) If the arrear cannot be recovered by any of the processes hereinafter provided, or if the Commissioner considers the enforcement of any of those processes to be inexpedient, the Collector may, where the defaulter owns any other estate or holding or any other immovable property, proceed under the provisions of this Act against that property as if it were the land in respect of which the arrear is due: Provided that no interests save those of the defaulter alone shall be so proceeded against, and no encumbrances created, grants made or contracts entered into by him in good faith shall be rendered invalid by reason only of his interests being proceeded against. (2) When the Collector determines to proceed under this section against immovable property other than the land in respect of which the arrear is due, he shall issue a proclamation prohibiting the transfer or charging of the property. (3) The Collector may at any time by order in writing withdraw the proclamation, and it shall be deemed to be withdrawn when either the arrear has been paid or the interests of the defaulter in the property have been sold for the recovery of the arrear. (4) Any private alienation of the property, or of any interest of the defaulter therein, whether by sale, gift, mortgage or otherwise, made after the issue of the proclamation and before the withdrawal thereof shall be void. (5) In proceeding against property under this section the Collector shall follow, as nearly as the nature of the property will admit, the procedure prescribed for the enforcement of process against land on which an arrear of land revenue is due.

(1) Notwithstanding anything in section 73 when proceedings are taken under this Act for the recovery of an arrear the person against whom the proceedings are taken may, if he denies his liability for the arrear or any part thereof and pays the same under protest made in writing at the time of a payment and signed by him or his agent, institute a suit in a Civil Court for the recovery of the amount so paid. (2) A suit under sub-section (1) must be instituted in a court having jurisdiction in the place where the office of the Collector of the district in which the arrear or some part thereof accrued is situate.

(1) On the receipt of the sanction of the Commissioner to the sale of any immovable property, the Collector shall issue a proclamation of the intended sale, specifying-(a) the date, time and place of the sale; (b) the property to be sold, and, if it is an estate or holding, the land revenue accessed thereon or payable in respect thereof; (c) if the property is to be sold for the recovery of an arrear due in respect thereof, the encumbrances, grants, contracts and rights of occupancy, if any, specially saved by order of the Financial Commissioner under section 82, sub-section (2), clause (c); (d) if the property is to be sold otherwise than for the recovery of an arrear due in respect thereof any encumbrance, grant or contract to which the property is known to be liable; and (e) the amount for the recovery of which the sale is ordered. (2) The place of sale specified under clause (a) sub-section (1) must be either the office of the Collector or some place appointed by the Collector in this behalf and situate in or near the property to be sold.

Indemnity to Revenue Officer with respect to contents of proclamation. A Revenue Officer shall not be answerable for any error, mis-statement or omission in any proclamation under the last foregoing section unless the same has been committed or made dishonestly.

Publication of proclamation. (1) A copy of the proclamation shall be served on the defaulter and be posted in a conspicuous part of the office of the Tehsildar of the tehsil in which the property to be sold is situate. (2) After a copy of the proclamation has been served on the defaulter and posted in the office of the Tehsildar, a copy thereof shall be posted in the office of the Collector. (3) The proclamation shall be further published in manner prescribed in section 23 and in such other manner as the Collector thinks expedient.

Time and conduct of sale. (1) The sale shall not take place on Sunday or other holiday, or till after the expiration of at least thirty days from the date on which the copy of the proclamation was posted in the office of the Collector. (2) The sale shall be by public auction, and shall be conducted either by the Collector in person or by a Revenue Officer specially appointed by him in this behalf.

The Collector may from time to time postpone the sale.

Stay of sale. If at any time before the bidding at the auction is completed the defaulter pays the arrear in respect of which the property has been proclaimed for the sale, together with the costs incurred for the recovery thereof, to the officer conducting the sale, or proves to the satisfaction of that officer that he has already paid the same either at the place and in the manner prescribed under section 70 or into Government treasury, the sale shall be stayed.

When the highest bid at the auction has been ascertained, the person who made that bid shall, on the requisition of the officer conducting the sale, pay to that officer a deposit of twenty-five per centum on the amount of his bid, and shall, on payment thereof, be declared to be the purchaser subject to the provisions of this Chapter with respect to the exercise of any right of pre-emption.

Consequences of failure to pay deposit. If the person who made the highest bid fails to pay the deposit as required by the last foregoing section, the property shall forthwith be put up again and sold, all expenses attending the first sale, and the deficiency of price, if any, which may happen on the resale, may be recovered from him by Collector as if he same were an arrear of land revenue.

Time for payment in full. The full amount of the purchase money shall be paid by the purchaser before the close of the fifteenth day from that on which the purchaser was declared

In default of payment of full amount of the purchase money within the period mentioned in the last foregoing section, the deposit referred to in section 91 shall, after defraying the expenses of the sale, be forfeited to the State Government and, may if the Collector, with the previous sanction of the Commissioner, so directs, be applied in reduction of the arrear and the property shall be resold, and the defaulting purchaser shall have no claim in the property or to any part of the sum for which it may subsequently be sold.

(1) At any time within thirty days from the date of the sale, application may be made to the Commissioner to set aside the sale on the ground of some material irregularity or mistake in publishing or conducting it. (2) But a sale shall not be set aside on that ground unless the applicant proves to the satisfaction of the Commissioner that he has sustained substantial injury by reason of the irregularity or mistake.

(1) After the expiration of thirty days from the date of the sale, if such an application as is mentioned in the last foregoing sections has not been made, or if such application has been made and rejected, the Commissioner shall make an order confirming the sale and, if such application has been made and allowed, the Commissioner shall make an order setting aside the sale. (2) An order made under this section shall be final.

Whenever the sale of any property is set aside, the purchaser shall be entitled to receive back his purchase-money within three months of the date or rejection of the sale after which date the purchaser shall be entitled to interest at such rate not exceeding three per cent per annum as the Financial Commissioner thinks fit on the money deposited.

A sale made after a postponement under section 89, and a resale consequent on a purchaser’s default under section 94 or on the setting aside of a sale under section 97, shall be made after the issue of a fresh proclamation in the manner hereinbefore prescribed for the sale.

(1) After a sale has been confirmed in manner aforesaid the Collector shall put the person declared to be the purchaser into possession of the property sold, and shall grant him a certificate to the effect that he has purchased that property. (2) The certificate shall state whether or not the property was sold for the recovery of an arrear due in respect thereof, and, if it was so sold, shall set forth the encumbrances, grants, contracts and rights of occupancy, if any, specified in the proclamation of the sale as specially saved by order of the Financial Commissioner under section 82, sub-section (2), clause (c).

(1) When a sale of immovable property under this Chapter has been confirmed, the proceeds of the sale shall be applied in the first place to the payment of any arrears, including cost incurred for the recovery thereof, due to the State from the defaulter at the date of the confirmation of the sale, whether the arrears are of land revenue, or of sum recoverable as arrears of land revenue, and the surplus, if any, shall be paid to the person whose property has been sold, or, if the property sold was owned by more than one person, then to the owners either collectively or according to the amount of their recorded interests, as the Collector thinks fit. (2) The surplus shall not except under an order of a Court, be paid to any creditor or a person whose property has been sold. (3) If the proceeds of the sale fall short of such arrears as are referred to in sub-section (1), the balance remaining due from the defaulter may be recovered from him by further proceedings under this Chapter or by any other means authorised by law.