State bound to cause conversion of leasehold right to ownership upon permission granted under proviso to section 281(ii)

Ramavtar Agarwal Vs State of Odisha (Orissa High Court)

Orissa High Court held that in event petitioners obtain conversion, there will be better chance of recovery by revenue on proceeding with the attachment of land that would then be owned by the estate. However, upon the permission granted under clause (ii) of the proviso in section 281, State will be bound to cause the conversion

Facts- Petitioner wants conversion of leasehold right to ownership so as to enable dealing with the land for liquidating demands outstanding against the estate of Nanu Ram Agrawalla, since deceased.

Whereas, the State submits certificate of dues that are outstanding from the estate. It is stated that there has to be a first recovery before petitioners, as legal heirs, can claim to have conversion.

On the other hand revenue submits that no transfer can be permitted as barred by section 281 in Income Tax Act, 1961. He submits, conversion means that the government land will be transferred by the government, to petitioners. The estate has income tax dues, to enforce recovery of which there has been the attachment of the property.

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