Supreme Court Sets Aside Custodian's Rejection of Decree Holder's Claim Under Evacuee Property Act; Holds Custodian Has Power to Pay Debts. Section 10(2)(n) of Administration of Evacuee Property Act, 1950 Empowers Custodian to Pay Debts to Any Entitled Person Including Decree Holders.

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Case Note & Summary

Background: The appeal arose from a claim by a decree holder seeking satisfaction of money decrees from the assets of an evacuee vested in the Custodian under the Administration of Evacuee Property Act, 1950. The appellant was the heir of the original decree holder, Rani Manraj Koer, who had obtained money decrees in 1932 against Nawab Mohammad Ali Khan Qazilbash Zamindar. After the death of the original judgment debtor, Nawab Ali Raza Khan became the substantial judgment debtor; he migrated to Pakistan in January 1950 and was declared an evacuee. The Custodian of Evacuee Property took possession of his estate. Facts: Execution proceedings initiated by the decree holder were halted when the Custodian applied for removal of attachment. The Civil Judge, Lucknow, on July 22, 1950, recalled transfer certificates. The High Court of Allahabad on February 22, 1960 held that under Section 17 of the Act, the evacuee property vested in the Custodian was not liable to execution. On September 27, 1960, the appellant applied to the Custodian under Section 10(2)(n) for an order directing satisfaction of his claim of Rs.1,27,638/2/- from the evacuee's assets. The Assistant Custodian General rejected the application, and the Custodian General confirmed the rejection, holding that the Custodian lacked power to grant such relief. Legal Issues: The core question was whether the Custodian had power under Sections 10(1) and 10(2)(n) to entertain and pay a money decree holder's claim against an evacuee's assets. Subsidiary issues included the interpretation of 'any other person' in clause (n) and the effect of the deletion of clause (m) by the Amending Act of 1956. Arguments: The appellant contended that the Custodian had power under Section 10(2)(n) to pay debts and that 'any other person' included decree holders. The respondent argued that the Custodian's role was limited to management and that 'any other person' should be read ejusdem generis with the evacuee or family members, and that deletion of clause (m) had removed the power to pay debts. Court's Analysis: The Supreme Court held that the expression 'any other person' is not restricted by ejusdem generis and includes all persons entitled to money from the evacuee. The Court interpreted Section 10(1) as encompassing the power to administer property, which includes discharging obligations and paying debts binding on the evacuee. Section 10(2) illustrates specific powers, but they are not exhaustive. The deletion of clause (m) did not affect the power under Section 10(1) and clause (n). The Court also held that a civil court decree is not decisive of entitlement; the Custodian must form his opinion judicially. Decision: The Court set aside the orders of the Custodian and Custodian General and remanded the proceeding to the Custodian to determine whether the appellant was entitled to any sum and whether payment was necessary for the administration and management of the evacuee property.

Headnote

A) Interpretation of Statutes - Ejusdem Generis - Section 10(2)(n) Administration of Evacuee Property Act, 1950 - Expression 'any other person' includes persons other than the evacuee or family members entitled to money from the evacuee - The rule of ejusdem generis applies only where a general word follows particular and specific words of the same nature; here no genus or category was indicated by the Legislature. Held that the Custodian has power coupled with duty to pay any entitled person (Paras 1-7).

B) Administration of Evacuee Property - Powers and Duties of Custodian - Sections 10(1) and 10(2)(n) Administration of Evacuee Property Act, 1950 - Power to administer includes power to discharge obligations and pay binding debts - The Custodian's power under Section 10(1) is not merely management; it extends to paying debts which in his opinion are binding on the evacuee. Deletion of clause (m) by Amending Act 91 of 1956 did not affect this power under Section 10(1) and clause (n) (Paras 1-7).

C) Administration of Evacuee Property - Execution Proceedings - Section 17 and Section 10(2)(n) Administration of Evacuee Property Act, 1950 - Evacuee property vested in Custodian not liable to execution; decree holder must seek satisfaction from Custodian - A civil court decree is not decisive of the claimant's entitlement; the Custodian must form his opinion judicially whether the claimant is entitled and whether payment is necessary for administration and management. Held that the proceeding was remanded to the Custodian for fresh determination (Paras 1-7).

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Issue of Consideration

Whether the Custodian under the Administration of Evacuee Property Act, 1950 has power to entertain and satisfy a money decree holder's claim against an evacuee's assets vested in the Custodian; whether 'any other person' in Section 10(2)(n) includes persons other than the evacuee or family members; whether deletion of clause (m) of Section 10(2) affected the Custodian's power to pay debts.

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Final Decision

Appeal allowed; orders of Custodian and Custodian General set aside; proceeding remanded to Custodian to determine whether appellant entitled to amount and whether payment necessary for administration and management of evacuee property.

Law Points

  • Custodian under Section 10(1) and Section 10(2)(n) has power to pay debts of evacuee to any person entitled
  • including decree holders
  • expression 'any other person' not restricted ejusdem generis
  • civil court decree not decisive
  • Custodian to form opinion judicially
  • deletion of clause (m) by Amending Act 91 of 1956 does not affect power under clause (n) and Section 10(1).
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Case Details

1965 LawText (SC) (07) 2

Civil Appeal No. 124 of 1963

1965-07-29

J.C. Shah, K.N. Wanchoo, M. Hidayatullah

1966 AIR 245, 1966 SCR (1) 304

S. S. Shukla, Gopal Singh, R. N. Sachthey

Raja Bhanupratap Singh

Assistant Custodian Evacuee Property U.P.

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Nature of Litigation

Civil appeal by special leave against rejection of claim for payment of debt by Custodian under Administration of Evacuee Property Act, 1950.

Remedy Sought

Appellant sought an order under Section 10(2)(n) directing the Custodian to satisfy his decree debt of Rs.1,27,638/2/- out of the evacuee's assets vested in the Custodian.

Filing Reason

Custodian rejected the application holding no power to grant relief; Custodian General confirmed the rejection.

Previous Decisions

High Court of Allahabad on 22-02-1960 held that property vested in Custodian not liable to execution; Assistant Custodian General rejected claim; Custodian General confirmed rejection on 22-01-1962.

Issues

Whether the Custodian under the Administration of Evacuee Property Act, 1950 has power under Section 10(2)(n) to entertain and satisfy a money decree holder's claim against an evacuee's assets. Whether the expression 'any other person' in Section 10(2)(n) should be construed ejusdem generis with 'evacuee' or 'any member of his family'. Whether deletion of clause (m) of Section 10(2) by the Amending Act 91 of 1956 affected the Custodian's power to pay debts under Section 10(1) and clause (n).

Submissions/Arguments

Appellant contended that the Custodian had power under Section 10(2)(n) to pay debts and that 'any other person' included decree holders. Respondent argued that the Custodian's role was limited to management and that 'any other person' should be read ejusdem generis, and that deletion of clause (m) had removed the power to pay debts.

Ratio Decidendi

Custodian has power under Section 10(1) and Section 10(2)(n) to pay debts of the evacuee to any person entitled, including decree holders; the expression 'any other person' is not restricted by ejusdem generis; a civil court decree is not decisive of entitlement; the Custodian must form his opinion judicially; deletion of clause (m) by Amending Act 91 of 1956 does not affect the power under Section 10(1) and clause (n).

Judgment Excerpts

The rule of interpretation ejusdem generis applies where a general word follows particular and specific words of the same nature as itself : it has no application where there is no genus or category indicated by the Legislature. The powers conferred and the duties imposed by S. 10(1) are for the purposes of securing, administering, preserving and managing the evacuee property, and there is no reason to attribute to the Legislature an attempt at tautology by assuming that 'administering' is used in the same sense as the expression 'managing'. A decree of the civil court is not decisive of the question whether a Person making a claim is entitled to the money claimed by him; it is for the Custodian to determine whether he is so entitled.

Procedural History

Rani Manraj Koer obtained money decrees in 1932; execution proceedings initiated but nothing recovered; Rani died in 1941 and appellant brought on record; Nawab Ali Raza Khan declared evacuee in 1950 and property vested in Custodian; Civil Judge Lucknow recalled transfer certificates on 22-07-1950; High Court Allahabad on 22-02-1960 held property not liable to execution; appellant applied to Custodian on 27-09-1960; Assistant Custodian General rejected application; Custodian General confirmed rejection on 22-01-1962; special leave granted by Supreme Court.

Acts & Sections

  • Administration of Evacuee Property Act, 1950: 10(1), 10(2)(m), 10(2)(n), 7(1), 8, 17(1), 10(2)(d), 10(2)(e), 10(2)(i), 10(2)(j)
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