Ramanlal Bhailal Patel v. State of Gujarat (2008) 5 SCC 449
Supreme Court of India — Who is a “person” under the Gujarat Ceiling Act? Co-ownership vs AOP/BOI, deemed partition, surplus land
 
    Quick Summary
Ten buyers purchased farm land together. The revenue authorities treated them as one “person” (as an AOP/BOI) under the Gujarat Agricultural Lands Ceiling Act, 1960, and computed a huge surplus. The Supreme Court said: co-ownership is not automatically an association of persons. Unless a law or agreement shows a joint venture for profit, the ten buyers remain ten separate persons. A partition made on 30-12-1971 was treated as a device to defeat the 1972 Amendment and so was ignored for surplus calculation. The case was partly remanded to decide non-agriculturist issues and recompute surplus per individual shares.
Issues
- Does “person” in the Gujarat Ceiling Act include an AOP/BOI and do co-owners become such a unit by default?
- Do the ten purchasers together form a single person under the Act?
- Is the 30-12-1971 partition deemed to defeat the 1972 Amendment under Section 8(1)? What if no application was made under Section 8(2)?
- If some co-owners were non-agriculturists at purchase, can the Mamlatdar examine this when fixing surplus?
Rules
- Inclusive “Person”: The General Clauses Act meaning applies unless excluded. Section 2(21) of the Ceiling Act adds “joint family”; it does not cut down the general meaning.
- Co-ownership ≠ AOP/BOI: Buying undivided shares together does not, by itself, create an association/body of individuals without a deeming clause or agreement for a joint venture.
- Section 8 (Ceiling Act): A partition is deemed to defeat the 1972 Amendment unless the contrary is proved by an application to the Collector (S.8(2)).
Facts (Timeline)
 
            Arguments
Appellants
- Ten names on a sale deed do not create an AOP/BOI; they are only co-owners.
- “Person” must be read as in the General Clauses Act plus “joint family”; there is no repugnancy.
- Surplus must be computed per individual shares, not as a single unit.
Respondents
- A group purchase should be treated as one person to stop ceiling evasion.
- The 1971 partition was a device to defeat the 1972 Amendment (S.8 deeming clause).
- Some purchasers were non-agriculturists; transfers to them are invalid in part.
Judgment (Held)
 
            - “Person” is inclusive; the Ceiling Act adopts the General Clauses Act meaning and additionally mentions joint family.
- Co-owners ≠ AOP/BOI: The ten purchasers are ten persons, not one unit. No joint venture/profit purpose was shown.
- Partition (30-12-1971): Deemed to defeat the 1972 Amendment → must be ignored for surplus unless disproved via S.8(2) (not done).
- Remand: Mamlatdar to check non-agriculturist status and recompute surplus individually, considering each co-owner’s other lands.
Ratio Decidendi
Co-ownership does not, by itself, form an AOP/BOI. An inclusive definition of “person” covers ordinary meanings and specified inclusions; absent a deeming clause or joint-venture intent, co-owners remain separate persons. Deeming under Section 8 about partitions must be given full effect unless rebutted as prescribed.
Why It Matters
This ruling draws a clear line between co-ownership and AOP/BOI. It also shows how anti-evasion deeming clauses like Section 8 operate and how surplus must be recomputed person-wise.
Key Takeaways
- “Person” is broad; Ceiling Act adds “joint family” but does not collapse co-owners into one unit.
- Co-ownership alone is not AOP/BOI; look for a joint venture/profit purpose or deeming statute.
- Partitions near an amendment may be deemed evasive and ignored unless timely rebutted under S.8(2).
- Surplus land must be computed individually, factoring each holder’s other lands and eligibility (agriculturist status).
Mnemonic + 3-Step Hook
Mnemonic: “Ten Together ≠ One.”
- Identify: Are they just co-owners, or an AOP/BOI by law/agreement?
- Ignore: Deemed-evasive partitions unless disproved via S.8(2).
- Individuate: Recalculate surplus per person, check agriculturist status.
IRAC Outline
Issue
Whether ten co-purchasers are one “person” (AOP/BOI) under the Ceiling Act; effect of deemed partition; role of non-agriculturist status.
Rule
Inclusive definition of “person”; co-ownership ≠ AOP/BOI absent deeming clause/intent; Section 8 deeming about partitions; S.8(2) rebuttal route.
Application
No joint venture shown; partition deemed evasive; surplus and invalid transfers to be tested and recomputed individually.
Conclusion
Ten buyers are ten persons; partition ignored; remand to Mamlatdar for status checks and fresh surplus computation.
Glossary
- AOP/BOI
- Association of Persons/Body of Individuals — people joined for a common purpose like profit or a joint venture.
- Deemed Partition (S.8)
- A legal presumption that a partition near an amendment was to defeat the law unless rebutted by application.
- Mamlatdar
- Revenue officer who examines land holdings and surplus under the Ceiling Act.
- Surplus Land
- Land held beyond the statutory ceiling; liable to vest in the State.
FAQs
Related Cases
- Cases distinguishing co-ownership from AOP/BOI in tax/land statutes.
- Judgments on deeming provisions to curb evasion in ceiling laws.
- Decisions on remand to revenue authorities for recalculation of surplus.
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