Case Note & Summary
The dispute arose from the powers of the Custodian of Evacuee Property to cancel a lease granted to the appellants. The appellants, displaced persons, had entered into a lease agreement with the Custodian for certain properties declared as evacuee property after the original owners migrated to Pakistan. Following alleged breaches of the lease conditions, the Custodian issued a notice to cancel the lease. The appellants contended that the Custodian lacked the authority to cancel the lease as it was granted by himself, not the evacuee. The High Court initially ruled in favor of the appellants, stating that section 12 of the Act applied only to leases granted by the evacuee. However, subsequent amendments to the Act clarified that the Custodian could indeed cancel leases granted by himself. The Supreme Court upheld this interpretation, emphasizing that the Custodian's powers were absolute and not limited by prior contracts. The court dismissed the appeal regarding the lease but noted that issues related to the sale of movables were not within the scope of the current proceedings. The final decision confirmed the Custodian's authority to act under section 12, leading to the dismissal of the appeal with costs.
Headnote
A) Evacuee Property - Custodian's Power - Cancellation of Lease - Administration of Evacuee Property Act, 1950, Section 12 - The Custodian has the authority to cancel leases granted by himself, as clarified by retrospective amendment to the Act. The court held that the operative portion of section 12 is unqualified and absolute, allowing the Custodian to act without limitation from prior contracts (Paras 1-2).
Issue of Consideration
Whether the Custodian of Evacuee Property has the power to cancel a lease granted by himself under section 12 of the Administration of Evacuee Property Act, 1950.
Final Decision
The Supreme Court dismissed the appeal, affirming the Custodian's authority to cancel the lease under section 12 of the Administration of Evacuee Property Act, 1950, as amended.
Law Points
- Custodian's powers
- cancellation of lease
- non-obstante clause
- retrospective legislation
