DUNICHAND HAKIM AND OTHERS Vs. DEPUTY COMMISSIONER (DEPUTY CUSTODIAN EVACUEE PROPERTY

PETITIONER:
DUNICHAND HAKIM AND OTHERS

Vs.

RESPONDENT:
DEPUTY    COMMISSIONER  (DEPUTY  CUSTODIAN  EVACUEE  PROPERTY)

DATE OF JUDGMENT:
18/12/1953

BENCH:
HASAN, GHULAM
BENCH:
HASAN, GHULAM
SASTRI, M. PATANJALI (CJ)
DAS, SUDHI RANJAN
BOSE, VIVIAN
JAGANNADHADAS, B.

CITATION:
1954 AIR  150          1954 SCR  578
CITATOR INFO :
E        1957 SC 599     (4)

ACT:
Administration     of Evacuee.Property Act (Act XXXI of  1905),
ss.  2, 12,  56(2)-Evacuee  property-Allotment–Cancellation
of-Jurisdiction    of      Deputy    Cutstodian-Notice      for
cancellation.,     whether essential-orders of cancellation  of
allotment-Validity of.

HEADNOTE:
Held,  that  the Deputy Custodian of  Evacuee  Property     has
jurisdiction to cancel the allotment of land both under     the
East Punjab Evacuees’ (Administration of Property) Act,     XIV
of  1947  as  well as under the     Administration     of  Evacuee
Property (Act XXXI of – 1950), ss. 2(a) 12(1) and 56(2), the
latter Act replacing the former Act.
That no notice was provided for cancellation of an allotment
under the rules framed under section 56.
That  the  petitioners-allottees in the     present  case    were
given  notice and had full opportunity to put forward  their
case before their allotments were cancelled.

JUDGMENT:
ORIGINAL  JURISDICTION:     PETITION  NO.    324  of     1953  under
article 32 of the Constitution.
N.   S. Bindra, (Gurucharan Singh Bakshi, with him) for     the
petitioners.
Porus A. Mehta for respondent No. 1.
Amar Nath Arora for respondents Nos. 2 to 14.
1953.  December 18.  The Judgment of the Court was delivered
by
GHULAM    HASAN  J.–This     petition by  twenty  persons  under
article 32 of the Constitution prays for the issue of a writ
of certiorari, mandamus and prohibition
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or other suitable order or directions, quashing the  -orders
dated the 1st July, 1952, and the 14th October, 1953, passed
by   the  Deputy  Commissioner    (Deputy     Custodian   Evacuee
Property)  Karnal, in the State of East Punjab,     hereinafter
referred to as the first respondent, whereby the petitioners
are alleged to have been deprived of their fundamental right
of  property  and  are unable to hold the  same     within     the
meaning of article 19 (1) (f) of the Constitution.
The  petitioners  are displaced persons     from  Pakistan     who
migrated  to India after the partition of 1947.     They  owned
certain     agricultural  land  in     Tehsil     Chunian,   District
Lahore, which, according to them, was mostly canal irrigated
land  of  the first grade, yielding on an average 16  to  20
maunds    of wheat per acre.  It-appears that  upon  partition
the  East Punjab Government was confronted with the  serious
problem     of settling agricultural lands abandoned by  Muslim
evacuees  from the areas, now called East Punjab and  Pepsu.
Accordingly  they  decided on the 15th September,  1947,  to
allot  evacuee lands for the current Kharif and the Rabi  of
1947-48.   This decision was obviously taken with a view  to
prevent     famine and fall in agricultural production  in     the
area,  as  also     to  provide means  of    livelihood  for     the
agricultural  refugees.      In pursuance of  this     policy     the
petitioners  were  settled  on    land  in  village   Dhakala-
admittedly a first grade village,-Tehsil Thanesar,  District
Karnal,     in  the State of East Punjab.     Their    claims    were
verified under the provisions of the.  East Punjab  Refugees
(Registration  of  Land Claims) Act XII of 1948,  They    were
allotted  specific  areas  of land under  the  statement  of
conditions, contained in Notifications Nos.489 1/S and    4892
IS,  dated the 8th July, 1949, on quasi-permanent  basis  in
lieu  of the lands left by them in  Pakistan.    Subsequently
the petitioner’s lands left in Pakistan are alleged to    have
been down-graded with the result that the lands allotted  to
them  were  re-allotted on the 25th April,  1951,  to  Ishar
Singh  and  others who appear as respondents to     oppose     the
present petition.  In July, 1951, the petitioners moved     the
East  Punjab  High  Court  under  article  226    for  a    writ
restraining their
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eviction  from    the  lands  but as  no    allotment  had    been
cancelled by that time they withdrew the petition some    time
in 1952.  The original allotment was, however, cancelled  on
the 1st July, 1952.  This order was challenged by a revision
under  section 27 of the Administration of Evacuee  Property
Act,  1950.   The  Deputy Custodian  General  dismissed     the
revision  petition on the 2nd December, 1953,  holding    that
the order of the Deputy Custodian was not illegal or without
jurisdiction on the ground that no notice of cancellation of
allotment  had been issued to them.  It was observed in     the
course    of  the judgment that the petitioners  had  conceded
before    the Assistant Custodian on the 9th May,     1952,    that
the  lands abandoned by them in Pakistan were  second  grade
lands  but  had claimed that they should,  nevertheless,  be
allotted first grade lands.
The order of the 1st July, 1952, is the first order which is
challenged  before  us    as being  without  jurisdiction     and
infringing the fundamental right of the petitioners.
It  is    alleged     in the petition  that    notwithstanding     the
cancellation  of the allotment, the petitioners remained  in
actual cultivating possession of the lands allotted to    them
but an order was passed by -the first respondent on the 14th
October, 1953, which is to the following effect :-
“  Government have decided that in the case of    persons     who
were  able to secure possession of part of land,  the  order
should    be deemed to have been implemented.  In the case  of
M/s  Ishar  Singh.  Rakha Singh and others  of    the  village
Dhokala’  they    were in possession of the part of  the    land
before    the  6th May, 1953.  As such they  should  be  given
possession  of the remaining area by ousting Duni Chand     and
others    being  II  and    III  grade  allottees,    but  wrongly
allotted land in 1st grade village.”
The aforesaid order is said to have been passed without     the
authority  of  law and deprives the.  petitioners  of  their
right to bold the property allotted to them,
581
Before    dealing with the validity of the impugned orders  it
will  be  necessary to refer to a compilation known  as     the
Land  Resettlement  Manual for displaced persons  in  Punjab
and,  Pepsu  upon  which great reliance was  placed  by     Mr.
Bindra    on  behalf of the petitioners in the course  of     his
arguments.   This  book was prepared by     Mr.  Tirlok  Singh,
I.C.S.,      who    was   Director     General   of    Relief     and
Rehabilitation    in  East  Punjab  and  contains     the  policy
decisions  of that Government arrived at in respect  of     the
settlement  of land upon the refugees soon after  partition.
It  appears  from  this book that  originally  there  was  a
temporary  settlement  but shortly afterwards  an  elaborate
organization  was  set up to make allotment of    lands  on  a
quasi-permanent     basis.     The displaced persons put in  their
claims in regard to the agricultural land they had abandoned
in  West  Punjab  and they were verified with  the  help  of
Revenue     records which were exchanged with the    West  Punjab
Government.  The book has evidently the stamp of  authority,
as  the     foreword is written by Mr. P.    N.  Thapar,  I.C.S.,
Financial    Commissioner,   Department      of   Relief     and
Rehabilitation,     and  Secretary to  the     Punjab     Government,
Relief and Rehabilitation Department.  The Manual shows that
in the end. of 1947, the displaced persons had been allotted
lands on a temporary basis but there was an insistent demand
for  settlement on permanent basis.  In a communique of     the
7th February, 1948, a new system of quasipermanent allotment
was  devised,  the  object underlying  being  to  allow     the
displaced  persons  to    remain    in  quiet  and     undisturbed
enjoyment  of the lands allotted to them.  They were not  to
get proprietary rights or rights of permanent occupation and
the very fact that the settlement was quasi-permanent  shows
that  it was, not intended to be irrevocable., Paragraph  19
of  the     Manualsays:  “Until  issues  relating    to   evacuee
property are resolved between India and Pakistan,  ownership
in each country of property abandoned by evacuees  continues
to  rest with them.  This led to the use of  the  expression
quasi      permanent  as     the  keyword  for  the     scheme      of
resettlement  introduced  in  East Punjab  and    Pepsu.”     The
various Evacuee Property Ordinances
582
passed by the Central or the State Governments from time  to
time  which were eventually replaced by the Central Act     No.
XXXI of 1950, further confirm that the policy underlying the
legislation was to provide for the administration of evacuee
property for the time being and to manage it until such time
as  a final decision was reached by the Government of  India
as to its ultimate destination.     Paragraph 21 of the  Manual
contains  the  statement  of  conditions  which     Mr.  Bindra
characterised  as  the charter of the  petitioners’  rights.
This paragraph says that the rights of persons to whom    land
is  given in the scheme of quasi-permanent resettlement     are
defined     in  East Punjab in two     statements  of     conditions,
dated    the  8th  July,     1949,    issued    with   Notifications
Nos.4891/Sand4892/S.  This statement is to be found at    page
193  of the Manual.  Paragraph 3 of the statement says    that
the  allotment shall be in favour of displaced    persons     and
for  a    period    for which the land remained  vested  in     the
Custodian subject to the provisions of the Act.     Paragraph 8
says:  “The  allottee paying the rent  hereby  reserved     and
observing  and performing the several covenants,  conditions
and stipulations herein on his part contained, shall  peace-
fully hold and enjoy the allotted land during the said    term
without      any    interruption  by  the    Custodian   or     the
Rehabilitation Authority.” It is contended by Mr. Bindra  on
the  strength of these provisions that so long as  the    land
remains     vested in the Custodian, the petitioners cannot  be
deprived of these lands which have been granted to them on a
quasi-permanent     basis and that the allotment could  not  be
cancelled without notice to the petitioners.
We now proceed to dispose of this contention.  It is  agreed
that the Act in force at the time of the allot. ment was the
East Punjab Evacuees’ (Administration of Property) Act,     XIV
of  1947.   It    defines     “allotment” as     the  grant  by     the
Custodian or a Rehabilitation Authority or any other  person
duly  authorised  by  the Custodian in    this  behalf,  of  a
temporary right of use and occupation of evacuee property to
any  person  otherwise    than by way  of     lease.      Section  9
confers powers upon the Custodian in regard to management
583
of property and section 9 (A), sub-section (2), empowers the
Custodian to cancel any allotment or terminate or amend     the
conditions  of any lease.  Section 22, subsection  (2)    (ff)
confers     upon  the Provincial Government the power  to    make
rules providing for the circumstances under which leases and
allotment may be terminated or the terms thereof be  varied.
This Act was in due course replaced by the Central Act    XXXI
of 1950 (The Administration of Evacuee Property Act,  1950).
The definition of allotment in this Act is substantially the
same [section 2 (a) ]. Section 12 (1) and section 56 (2) (h)
are  in     substance  the counterpart of    section     9  (A)     and
section     22 (ff) of the East Punjab Act of 1947.   That     the
Deputy     Custodian  had     the  jurisdiction  to    cancel     the
allotment both under the State and the Central Acts referred
to above cannot be seriously contested.     It was in pursuance
of the powers conferred by the rules made by the  Provincial
Government that the Custodian issued the notification of 8th
July,  1949.  Rule 14 (2) which is one of the  rules  framed
under  section 56, specifies the circumstances    under  which
leases and allotments can be cancelled or varied.   Sub-rule
(3) says that the Custodian may evict a person who has cured
an  allotment by misrepresentation or by fraud or if  he  is
found to be in possession of more than one evacuee  property
or in occupation of accommodation in excess of his  require-
ments.     Sub-rule (4) requires the Custodian before  passing
any,  order of cancellation or variation of the terms  of  a
lease,    to  serve  the person or persons  concerned  with  a
notice    to show cause against the order proposed to be    made
and  to afford him a reasonable opportunity of being  heard.
No notice is provided for cancellation of an allotment under
the  rules.   The  obvious answer  to  this  differentiation
appears to be that a lease is granted for a definite  period
and  it is only fair to give the lessee a notice before     his
lease  is  terminated before the expiry     of  the  stipulated
period,     whereas  the  allottee of  land  under     the  quasi-
permanent settlement stands on a different footing.  Be that
as  it    may,  the question seems to  be     academical  in     the
present case, as the petitioners were given full opportunity
to,
584
put forward their case before the allotment was cancelled.
The  order of the Deputy Custodian General, dated  the     2nd
December, 1953, rejecting the petitioners’ revision supports
this.  That order shows that the Assistant Custodian  issued
a notice to the petitioners to show cause why the  allotment
of  first  grade  land, while they  were  all  second  grade
claimants,   should  not  be  cancelled.   The     petitioners
appeared before him on the 9th May, 1952.  Their ‘statements
were  recorded and they admitted that their land was  second
grade,    whereupon the Assistant Custodian made a  report  to
the-Deputy  Custodian  recommending that  the  allotment  be
cancelled.   The Deputy Custodian acting upon  this,  report
cancelled the petitioners’ allotment in village, Dhakala, on
the 1st July, 1952.  This point was raised before the Deputy
Custodian  General also but he held that section 12  of     the
Central.   Act did not require notice of cancellation to  be
issued    to  the     petitioners and in any case  the  order  in
question  was  not without jurisdiction, as there  had    been
substantial  compliance with the provisions of rule 14.      It
was  contended, however, that the order of cancellation     was
made  by the Deputy Custodian and that order was bad  as  he
did  not give the petitioners any notice before passing     the
order.     The  Assistant Custodian who was acting  under     the
orders    of  the     Deputy Custodian  had    already     heard’     the
petitioners and recorded their statements, and there was  no
point in hearing the petitioners again when they had already
been heard.  The Deputy Custodian has filed an affidavit  to
the  effect  that a notice was given to the  petitioners  to
explain     on  the 9th May,’ 1952, as to why  their  allotment
should not be cancelled, that they appeared on the 9th    May,
1952,  that  their statements were recorded and     that  their
allotments were cancelled on the 1st July, 1952.
We hold, therefore, that there is no merit in the contention
that   the  order  of  the  Deputy  Custodian  was   without
jurisdiction  as  it  was  passed  in  the  absence  of     the
petitioners and without hearing them.  Even if the order  of
cancellation was passed during’ the
585
operation of a stay order, the order of cancellation  cannot
be challenged on that ground.
The next contention urged is that the order of    cancellation
is  opposed to the order of the Ministry of  Rehabilitation,
dated  the  14th  May, 1953, whereby  the  authorities    were
prohibited  from  cancelling  allotments if  the  orders  in
respect     of them had not been implemented by the 22nd  July,
1952.. We think this contention is also devoid of merit.  It
appears     that the question of amendment of sub-rule  (6)  of
rule   14   of    the  Central  Rules  was  the    subject      of
correspondence    between the Central Government and the    East
Punjab    Government.  Reference is made in the letter of     the
14th  May,  1953, to a notification issued  by    the  Central
Government on the 22nd July, 1952, according to which orders
cancelling allotments passed after a specified date were  to
be  implemented     only  if they fall under  the    category  of
undeserved and excessive allotments.  It is stated that     the
object of this notification was to stablize  quasi-permanent
allotments,   but  upon     a  representation  by     the   State
Government  the provision restricting the implementation  of
orders    passed before the a specified date was    relaxed     and
the  State  Government was given powers to  implement  their
orders by the 22nd July, 1952.    The Central Government after
further consideration decided that all orders passed  before
the 22nd July, 1952, but not implemented until the 6th    May,
1953,  shall  be kept it abeyance except  in  the  following
cases:-
(a)  Undeserved allotment,
(b)  Excessive allotment,
(c)………………………
It  was     further decided that no other    order  hereafter  be
implemented – until a decision to the contrary is issued  by
the Central Government.     The letter added that the  Ministry
of  Law     was  being  consulted with a  view  to     making     the
necessary  amendments in the rules.  In pursuance  of  this,
decision  the East Punjab Government issued instructions  to
the Deputy Commissioners.  There was some dispute about     the
meaning of the wor “implementation” but before A further
586
reference  was    made to the Central Government,     the  Punjab
Government  decided that among allottees of land the  status
quo should be maintained and that if as a result of an order
of  cancellation  passed  before the 22nd  July,  1952,     the
possession of an allottee had not been given over by the 6th
May, to the new allottee, it shall remain with the  original
allottee.  This correspondence merely shows that the Central
Government  enunciated    a certain policy on the     subject  of
amending sub-rule (6) of rule 14, pending the advice of -the
Law Ministry, but apparently the policy was not given effect
to and no rule was framed in pursuance of the decision.      It
is  clear,  therefore, that the Central     Government  .merely
issued    interim     instructions pending the amendment  of     the
rule  but  no  rule  was framed     to  give  effect  to  those
instructions  which  in     consequence  did  not    acquire     any
statutory force.  Mere stay of implementation of the  orders
contained  in the statement of policy did not wipe  out     the
effect    of  the cancellation.  Sub-rule (6) to rule  14     was
subsequently added but not as it was intended to be with the
result    that  the old orders of cancellation stood  such  as
orders based on grounds other than underserved or  excessive
allotments.   Once the order of cancellation was  passed  by
the  Deputy Custodian, the petitioners lost their  right  to
possession and even if the letter of the 14th May, 1953,  is
treated     as  a    direction by the  Central  Government  under
section 54, it cannot have the effect of restoring what     had
been lost.
We hold, therefore, that the petitioners have not made out a
case  for breach of any fundamental right.  Both the  orders
passed    by respondent No. I are perfectly valid     and  within
jurisdiction.    We  accordingly’ dismiss the  petition    with
costs to the first respondent.
Petition dismissed.
Agent for the petitioners: Harbans Singh.
Agent for respondent No. 1: G. H. Rajadhyaksha.
Agent for respondents Nos. 2 to 14; R. K, Kuba,
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