Maharashtra agri land - btal section 63 and ceiling
Sagar Phadke
(Querist) 28 February 2012
This query is : Resolved
Dear Sirs,
My client has floated a Pvt Ltd. Company its main object being to carry out agriculture activity.
Maharashtra Agricultural Lands (Ceiling on Holdings) Act 1961, provides that.. ` No person shall hold agricultural land in excess of the ceiling limit prescribed`. Max ceiling limit for dry area is 54 Acres.
The said Act does not contain definition of person,
BTAL Sec 63 says no person who is not an "agriculturist" shall acquire Agri Land.
BTAL Act also does not contain definition of person.
Therefore if we take recourse to General Clauses Act, we find that it defines person includes Body Corporate.
Going by this it appears that
a) Company must be an agriculturist to acquire agri. land.
b) Company must not hold land exceeding ceiling limit under 1961 Act.
However I have talked with a few persons in Revenue department and also some lawyer friends they also say that there is no bar of section 63 on Company with agril. main object and there is no ceiling limit for company.
But no one is able to give any citation or legal framework for their say...
Please guide us in the matter
Thanks and Regards
Raj Kumar Makkad
(Expert) 28 February 2012
State of Maharashtra- Under the provisions of the Companies Act 1956 and Bombay Tenancy & Agricultural Lands Act,1948 a company (having due powers under its Memorandum of Association and Articles of Association) has to obtain permission under Sec.63 to purchase agricultural lands.Further a company (having due powers under its Memorandum of Association and Articles of Association) has to obtain permission under the provisions of Sec.63-1A to purchase agricultural land in case of purchase exceeding 10 Hectares if the purpose of purchase is industrial in nature.
If at all a company has
(i)no powers to purchase agricultural lands under its Memorandum and Articles of Association;and
(ii)has not obtained permission under Sec 63 or under Sec.63-1A;and
(iii)has executed a Sale Deed of Agricultural lands from the farmers;and
(iv) the local revenue authorities (without checking the details of the company)have recorded the name of such company as the owner of such land.
Sagar Phadke
(Querist) 29 February 2012
Thank You Very Much Sir,
I have also made some reading last night and I put following propositions-
a) The Company is registered with object of Agriculture in 2007.
b) Since beginning Profit & Loss A/c of Company shows NIL Revenue, as land is yet to purchase and no other source of Income. c) So technically company is having income less than 5000/-from Non Agri Sources.
d) From above, the Company should be eligible to apply U/s 63.
Am I correct Sir?
Another proposition is that "Person" is not defined..but definition of Agriculturist is "person who cultivates land personnally/ or through family members etc."
If we interprete this Can it be said that for BTAL Act Person=Individual ?
If this holds good then Can we say that bar of 63 is for person & hence not applicable for Company ?
Thanks and Regards,
Sagar
