Supreme Court Dismisses Appeal by Property Owner in Evacuee Property Case; Authorities Could Reopen Non-Evacuee Order Obtained by Fraud. Revisional Jurisdiction Under Section 27 of Administration of Evacuee Property Act, 1950 Not Barred by Section 28 Finality or Section 7A Prohibition.

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Case Note & Summary

The dispute concerned certain property in Delhi claimed by the first appellant as owner. The first appellant was the wife of the second appellant. Under the Administration of Evacuee Property Act, 1950, the Assistant Custodian passed an ex-parte order dated 25 November 1953 declaring the first appellant an evacuee and the property evacuee property. On appeal, that ex-parte order was set aside and the Assistant Custodian was directed to decide the matter on merits. By an order dated 11 January 1956, the Assistant Custodian held that the first appellant was a non-evacuee owner of the property. Nearly eight years later, on 29 April 1964, the Deputy Custodian General issued a notice under Section 27 of the Act to show cause why the 1956 order should not be revised, alleging that it had been obtained by fraud and was illegal. The grounds stated that the first appellant had left for Pakistan in 1947, that it was fraudulently averred she was a non-evacuee residing at Calcutta, and that forged documents and perjured evidence had been tendered. The first appellant applied for cancellation of the notice, but by order dated 1 February 1965, the Deputy Custodian General rejected the objections and directed the authorised Deputy Custodian to expedite recording of evidence and submission of report. The appellants then filed a writ petition under Article 226 of the Constitution in the Delhi High Court seeking quashing of the two orders dated 29 April 1964 and 1 February 1965. They raised three principal contentions: that the 1956 order had become final under Section 28; that fresh proceedings were barred under Section 7A; and that proceedings under Section 27 were barred by limitation. The High Court rejected all contentions and dismissed the writ petition on 21 November 1969. On appeal by special leave, the Supreme Court affirmed the High Court. The court held that Section 28 did not bar revision under Section 27 because both sections appeared in Chapter V and the revision power was expressly provided. It held that Section 7A did not bar the notice because that section prohibited declarations of evacuee property on or after 7 May 1954, but its proviso preserved proceedings pending on that date; since the ex-parte order had been set aside and proceedings were pending on 7 May 1954, the bar did not apply. It further held that Section 27 contained no limitation period, so the delay of several years did not invalidate the revisional notice. On the additional argument that the 1964 order was not passed by the Custodian General, the court referred to Sections 2(b), 2(c) and 6(2) and concluded that the Deputy Custodian General acted under the general superintendence and control of the Custodian General and the order was validly made. Observing that the authorities had jurisdiction to call for records and satisfy themselves as to legality or propriety, and that fraud is a question of fact open to the first appellant to rebut, the court held that certiorari would not lie because there was neither excess of jurisdiction nor usurpation. Accordingly, the appeal was dismissed with each party bearing its own costs.

Headnote

A) Administration of Evacuee Property Act, 1950 - Revision and Finality - Section 27 and Section 28 - Revisional power not barred by finality - The order dated 11 January 1956 declaring the first appellant a non-evacuee owner was challenged by a notice under Section 27 on the ground of fraud and illegality. Both Sections 27 and 28 occur in Chapter V of the Act; therefore the expressly provided revisional power under Section 27 was not taken away by the finality clause of Section 28. Held that the order dated 11 January 1956 was not final and could be reopened (Para 768E).

B) Administration of Evacuee Property Act, 1950 - Declaration of Evacuee Property - Section 7A - Pending proceedings exception - Section 7A bars declaration of property as evacuee on or after 7 May 1954, but the proviso excludes property in respect of which proceedings were pending on that date. The ex-parte order dated 25 November 1953 had been set aside, leaving the proceedings pending on 7 May 1954, and therefore Section 7A did not bar the notice under Section 27. Held that fresh proceedings were not barred by Section 7A (Paras 768F-G).

C) Administration of Evacuee Property Act, 1950 - Revision - Section 27 - No limitation period - The notice under Section 27 was issued several years after the 11 January 1956 order, but Section 27 did not prescribe any limitation for exercising revisional power. The court held that the power under Section 27 is not curtailed by any limitation of time, so the proceedings were not time-barred (Paras 768G-769B).

D) Administration of Evacuee Property Act, 1950 - Jurisdiction and Certiorari - Sections 2(b), 2(c), 6(2) and 27 - Valid exercise of revisional jurisdiction - The order dated 29 April 1964 was validly made for the Custodian General, as the Deputy Custodian General acted under the general superintendence and control of the Custodian General. The authorities had power to call for records to satisfy legality or propriety, and since the order was questioned on the ground of fraud, which is a question of fact, the first appellant could establish propriety in the revisional proceedings. Held that certiorari did not lie because the authorities had jurisdiction and there was neither excess of jurisdiction nor usurpation (Para 769D-E).

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Issue of Consideration

Whether the order dated 11 January 1956 was final under Section 28 and could not be reopened; whether fresh proceedings were barred under Section 7A; whether proceedings under Section 27 were barred by limitation; whether the order dated 29 April 1964 was validly made by Custodian General

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Final Decision

The Supreme Court dismissed the appeal, affirming the High Court's dismissal of the writ petition. It held that the order dated 11-1-1956 was not final and could be reopened under Section 27; Section 7A did not bar the notice because proceedings were pending on 7-5-1954; Section 27 was not subject to limitation; the order dated 29-4-1964 was validly made; and certiorari would not lie as authorities had jurisdiction. Each party was directed to pay and bear its own costs.

Law Points

  • Section 28 finality does not exclude revisional power under Section 27
  • Section 7A bar does not apply to proceedings pending on 7 May 1954
  • Section 27 revision is not subject to any limitation
  • Custodian General may act through Deputy Custodian General
  • Certiorari will not lie where authority has jurisdiction
  • Fraud is a question of fact
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Case Details

1973 LawText (SC) (03) 4

Civil Appeal No. 1279 of 1970

1973-03-27

A.N. Ray, D.G. Palekar, M. Hameedullah Beg

1973 AIR 1304, 1973 SCR (3) 766, 1973 SCC (1) 742

S. K. Mehta, A. N. Aurora, K. R. Nagaraja, M. Qamruddin, P. Parameshwara Rao, S. P. Nayar, N. C. Sikri

Fatima Bi & Anr.

Deputy Custodian General Evacuee Property, New Delhi

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Nature of Litigation

Writ petition under Article 226 of the Constitution challenging validity of revisional notice and order in evacuee property proceedings.

Remedy Sought

Appellants sought quashing of two orders dated 29-4-1964 and 1-2-1965, and preventing reopening of the 11-1-1956 order declaring first appellant non-evacuee owner.

Filing Reason

Appellants contended that the Assistant Custodian's order dated 11-1-1956 declaring first appellant non-evacuee was final under Section 28, and further proceedings were barred under Sections 7A and 27.

Previous Decisions

Assistant Custodian ex-parte order dated 25-11-1953 declared first appellant evacuee; on appeal, ex-parte order set aside; Assistant Custodian by order dated 11-1-1956 held first appellant non-evacuee owner; Deputy Custodian General issued notice dated 29-4-1964 under Section 27 and rejected objections on 1-2-1965; Delhi High Court dismissed writ petition on 21-11-1969.

Issues

Whether the order dated 11 January 1956 was final under Section 28 and could not be reopened. Whether fresh proceedings were barred under Section 7A. Whether proceedings under Section 27 were barred by limitation. Whether the order dated 29 April 1964 was validly made by Custodian General.

Submissions/Arguments

Appellants contended that the order dated 11 January 1956 was final under Section 28 of the Act and could not be reopened. Appellants contended that fresh proceedings were barred under Section 7A of the Act. Appellants contended that proceedings under Section 27 of the Act were barred by limitation. Appellants additionally contended that the order dated 29 April 1964 was not passed by the Custodian General. The authorities contended that the order was obtained by fraud and illegality, and therefore could be revised under Section 27.

Ratio Decidendi

The finality conferred by Section 28 of the Administration of Evacuee Property Act, 1950 does not exclude the expressly provided revisional power under Section 27, as both fall within Chapter V. Section 7A's bar on declaring property evacuee on or after 7 May 1954 does not affect proceedings pending on that date; the proviso expressly preserves such pending proceedings. Section 27 contains no limitation period, so revisional proceedings may be initiated after several years. The Custodian General, acting through the Deputy Custodian General, has jurisdiction to issue revisional notice where legality or propriety of a Custodian's order is in question; if fraud is alleged, the affected party must establish propriety in the revisional proceedings, and certiorari does not lie absent jurisdictional excess.

Judgment Excerpts

The High Court rightly held that the power of revision under section 27 was not taken away by section 28 of the Act. The bar in section 7-A is that no property shall be declared to be evacuee property on or after 7 May, 1954. The power under section 27 of the Act was not curtailed by any limitation of time. Certiorari will not lie for the obvious reason that the authorities have jurisdiction to issue the notice.

Procedural History

Assistant Custodian passed ex-parte order on 25-11-1953 declaring first appellant evacuee and property evacuee. On appeal, ex-parte order was set aside and Assistant Custodian directed to decide on merits. Assistant Custodian passed order on 11-1-1956 holding first appellant non-evacuee owner. Deputy Custodian General issued notice under Section 27 on 29-4-1964 to show cause why order dated 11-1-1956 should not be revised on grounds of fraud and illegality. On 1-2-1965, Deputy Custodian General rejected appellant's objections and directed expedited recording of evidence. Appellants filed writ petition in Delhi High Court under Article 226, which was dismissed on 21-11-1969. Appellants appealed to Supreme Court by special leave.

Acts & Sections

  • Administration of Evacuee Property Act, 1950: 2(b), 2(c), 6(2), 7A, 27, 28
  • Constitution of India: Article 226
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