FAQ About Assets for Which Sarfaesi Action Can Not Be Taken Including Agricultural Land
Answer: The expression agricultural land has not been defined in Sarfaesi Act, 2002. We have to rely on judgements about the meaning of ‘agricultural land’ in connection with other Acts
In CWT Versus Officer In-charge (Court of Wards) reported in (1976)3 Supreme Court Cases Page 864, Supreme Court held as follows:-
“We agree that the determination of the character of land, according to the purpose for which it is meant or set apart and can be used, is a matter which ought to be determined on the facts of each particular case. What is really required to be shown is the connection with an agricultural purpose and user and not the mere possibility of user e of land, by some possible future owner or possessor, for an agricultural purpose. It is not the mere potentiality, which will only affect its valuation as part of "assets", but its actual condition and intended user which has to be seen for purposes of exemption from wealth tax. One of the objects of the exemption seemed to be to encourage cultivation or actual utilisation of land for agricultural purposes. If there is neither anything in its condition, nor anything in evidence to indicate the intention of its owners or possessors, so as to connect it with an agricultural purpose, the land could not be "agricultural land" for the purposes of earning an exemption under the Act. Entries in revenue records are, however, good prima facie evidence.”
In the case of Kunjaukutty Sahib Versus State of Kerala reported in (1972)2 Supreme Court Cases Page 364, Supreme Court held as follows:-
“We suppose that something or other can be, and often is, grown on any vacant land, but that would not necessarily make it agricultural land for our purposes. To give an example the possibility of cultivating, or even the actual cultivation of, what is essentially a building site in the heart of a town would not make it agricultural land. It is the purpose for which it is held that determines its character and the existence of a few coconut trees or a vegetable patch on the land cannot alter the fact that it is held for purposes of building and not for purposes of agriculture.”
In the case of ITC Limited Versus Blue Coast Hotels Limited reported in (2018)15 Supreme Court Cases Page 99, the question of agricultural land under Sarfaesi Act, 2002, was directly involves. In this case the Supreme Court held inter alia as follows:-
“The purpose of enacting Section 31(i) and the meaning of the term "agricultural land" assume significance. This provision, like many others is intended to protect agricultural land held for agricultural purposes by d agriculturists from the extraordinary provisions of this Act, which provides for enforcement of security interest without intervention of the Court. The plain intention of the provision is to exempt agricultural land from the provisions of the Act. In other words, the creditor cannot enforce any security interest created in his favour without intervention of the court or tribunal, if such security interest is in respect of agricultural land. The exemption thus protects agriculturists from losing their source of livelihood and income i.e. the agricultural land, under the drastic provision of the Act.”
Categories
Related FAQs
-
FAQ About Essential Pre- Conditios for Taking Sarfaesi Action
Know more about frequently asked questions [...]
-
FAQ About Demand Notice Under Section 13(2) of Sarfaesi Act, 2002
Know more about frequently asked questions [...]
-
FAQ About Borrower’s Representation/ Objection Against Section 13(2) Notice
Know more about frequently asked questions [...]
-
FAQ About Non-performing Assets
Know more about frequently asked questions [...]
-
FAQ About Assignment of Loan Account to Asset Reconstruction Company
Know more about frequently asked questions [...]
-
FAQ About Possession of Immovable Property
Know more about frequently asked questions [...]
-
FAQ About Sale of Immovable Property Under Sarfaesi Act, 2002
Know more about frequently asked questions [...]
-
FAQ About Redemption
Know more about frequently asked questions [...]
-
FAQ About Possession and Sale of Movable Properties
Know more about frequently asked questions [...]
-
FAQ About Application to Debts Recovery Tribunal Under Section 17 of the Sarfaesi Act, 2002
Know more about frequently asked questions [...]
-
FAQ About Appeals to Debts Recovery Appellate Tribunal Including About Pre-deposit
Know more about frequently asked questions [...]
-
FAQ About Taking Possession With the Help of District Magistrate/Chief Metropolitan Magistrate Under Section 14 of the Sarfaesi Act, 2002
Know more about frequently asked questions [...]
-
FAQ About Eviction of Tenants Under Sarfaesi Act, 2002
Know more about frequently asked questions [...]
-
FAQ About Powers of Debts Recovery Tribunal
Know more about frequently asked questions [...]
-
FAQ About Powers of Debts Recovery Appellate Tribunal
Know more about frequently asked questions [...]
-
FAQ About Registration of Security Interest, That is Mortgage/hypothecation
Know more about frequently asked questions [...]
-
FAQ About Assets for Which Sarfaesi Action Can Not Be Taken Including Agricultural Land
Know more about frequently asked questions [...]
-
FAQ About Taking Over of Management
Know more about frequently asked questions [...]
-
FAQ About Misc. Provisions of Sarfaesi Act, 2002
Know more about frequently asked questions [...]