Supreme Court Dismisses Appeal in Enemy Property Case Due to Inheritance by Indian Citizen. Properties Ceased to be Enemy Property Upon Death of Enemy Subject and Inheritance by Citizen Under Enemy Property Act, 1968.

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Case Note & Summary

The dispute arose from the Union of India's appeal against a High Court order that directed the return of properties to Raja Mohammed Amir Mohammad Khan, an Indian citizen and heir to the late Raja of Mahmudabad. The father of the respondent migrated to Pakistan in 1957, and following the hostilities between India and Pakistan in 1965, his properties were vested in the Custodian of Enemy Property. The respondent, after his father's death in 1973, claimed the properties, arguing they should not remain enemy property as he was an Indian citizen. The High Court ruled in favor of the respondent, stating that the properties ceased to be enemy property upon his inheritance. The Supreme Court upheld this decision, emphasizing that the definition of 'enemy' under the Enemy Property Act excludes Indian citizens, and thus the properties could not be classified as enemy property. The court directed the appellants to vacate the properties and hand them over to the respondent within eight weeks, warning of contempt for non-compliance. The appeal was dismissed with costs assessed at Rs. 5 Lacs.

Headnote

A) Enemy Property Law - Definition of Enemy - Indian Citizen Excluded from Enemy Definition - Enemy Property Act, 1968, Sections 2(b), 2(c) - The court held that an Indian citizen cannot be classified as an enemy or enemy subject, thus properties inherited by such a citizen cannot be deemed enemy property. The definition of enemy excludes Indian citizens, affirming that the respondent's properties ceased to be enemy property upon his inheritance (Paras 8-9).

B) Custodian Powers - Limited Vesting of Property - Enemy Property Act, 1968, Sections 6, 8, 18 - The court clarified that the vesting of property in the Custodian is temporary for management and does not transfer ownership. The respondent's inheritance nullified the enemy status of the property, necessitating its return (Paras 10-12).

C) Compliance with Court Orders - Disobedience and Contempt - Not applicable - The court mandated the appellants to vacate properties and hand them over to the respondent within eight weeks, warning of contempt for non-compliance (Paras 12-13).

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Issue of Consideration

Whether the properties in question ceased to be enemy property upon inheritance by an Indian citizen.

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Final Decision

The Supreme Court dismissed the appeal, affirming the High Court's ruling that the properties ceased to be enemy property upon the respondent's inheritance. The court ordered the appellants to vacate the properties and hand them over to the respondent within eight weeks, with costs assessed at Rs. 5 Lacs.

Law Points

  • Enemy Property
  • Custodian Powers
  • Right to Property
  • Succession Rights
  • Indian Citizenship
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Case Details

2005 LawText (SC) (10) 74

Appeal (civil) 2501 of 2002

2005-10-21

Ashok Bhan, Altamas Kabir

Union of India

Raja Mohammed Amir Mohammad Khan

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Nature of Litigation

Appeal against High Court's order regarding enemy property.

Remedy Sought

Union of India sought to retain possession of properties.

Filing Reason

Respondent claimed properties as sole heir after father's death.

Previous Decisions

High Court ruled properties ceased to be enemy property upon inheritance.

Issues

Whether properties ceased to be enemy property upon inheritance by an Indian citizen. Whether the Custodian's possession was lawful post-inheritance.

Submissions/Arguments

Appellant argued that properties remained enemy property until divested by the Central Government. Respondent contended that as an Indian citizen, he could not be classified as an enemy.

Ratio Decidendi

The properties of an Indian citizen cannot be classified as enemy property under the Enemy Property Act, as the definition of 'enemy' excludes Indian citizens. The vesting of property in the Custodian is temporary and does not transfer ownership.

Judgment Excerpts

The vesting in the Custodian is limited to the extent of possession, management and control over the property only. The definition of enemy excludes citizens of India as an enemy, or enemy subject or enemy firm. The properties ceased to be enemy properties as the title of the same now vested in an Indian citizen.

Procedural History

The High Court allowed Writ Petition No.1524 of 1997, directing the return of properties to the respondent. The Union of India appealed against this decision.

Acts & Sections

  • Enemy Property Act, 1968: 2(b), 2(c), 6, 8, 13, 18
  • Defence of India Act, 1962: 3, 48
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