LEGAL PRINCIPLE: LAND LAW – Sale of State Land – Ultra Vires Sale of State Land as Fee Simple
PRINCIPLE STATEMENT
There is no statutory power authorizing a State Government to sell State land, originally acquired for public purposes, as a fee simple absolute in possession to a private individual; such a purported sale is ultra vires, null and void. A reversioner cannot sell a fee simple free from encumbrances while another person is in lawful possession.
RATIO DECIDENDI (SOURCE)
"There is no statutory power authorising a State Government to sell State land, originally acquired for public purposes, as a fee simple absolute in possession to a private individual. Such a purported sale is ultra vires, null and void. A reversioner cannot sell a fee simple free from encumbrances while another person is in lawful possession."
EXPLANATION / SCOPE
State governments lack inherent power to sell public land as fee simple—they may only exercise powers conferred by statute. Land acquired for public purposes remains impressed with that purpose; absent statutory authorization, states cannot convert it to private ownership by selling fee simple. Such sales are ultra vires (beyond powers) and void ab initio. Additionally, a reversioner (holder of future interest after a lease expires) cannot sell unencumbered fee simple while someone lawfully possesses the property under existing rights. The state’s reversionary interest doesn’t permit selling greater rights than it holds. This protects existing possessory rights and ensures state land transactions comply with statutory frameworks governing public property disposition