SUPREME COURT OF INDIA
15th November, 1963
P.B. GAJENDRAGADKAR, K. SUBBA RAO, K.N. WANCHOO, N. RAJAGOPALA AYYANGAR AND J.R. MUDHOLKAR, JJ.
The State of Punjab (In all the Appeals), Appellant
Versus
1. The Okara Grain Buyers Syndicate Ltd., Okara and another (In C. A. No. 439 of 1961)
2. Firm Pucca Arhtia Association, Jalalpur Bed Wala and another (In C. A. No. 440 of 1961).
3. The Pucca Arhtia Association, Dinapur and another (In C. A. No. 441 of 1961)
4. The Pucca Arhtia Association, Keror Pucca Multan and another (In C. A. No. 442 of 1961)
5. M/s. Hakam Rai Bhagwan Das of Dinapur (In C. A. No. 443 of 1961)
6. The Pacca Arhtia Association. Lodhran (In C. A. No. 444 of 1961)
7. The Pucca Arhtia Association, Keror Pucca (In C. A. No. 445 of 1961)
8. The Puccaa Arhtia Association, Lodhran and another (In C. A. No. 446 of 1961).
9. The Pucca Arhatia Association, Lodhran (In C. A. No. 447 of 1961)
10. The Pucca Arhtia Association, Dinapur (In C. A. No. 448 of 1961)
11. The Pucca Arhtia Association, Keror Pucca (In C. A. No. 449 of 1961),
12. The Pucca Arhtia Association, Jalalpur Bed Wala (In C. A. No. 450 of 1961).
13. The Pucca Arhtia Association, Keror Pucca and another (In C. A. No. 451 of 1961), Respondents. 670
Civil Appeals Nos. 439 to 451 of 1961.
Advocates appeared
Mr. S. M. Sikri, Advocate General for the State of Punjab and Mr. N. S. Bindra, Senior Advocate, (Mr. R. N. Sachthey, Advocate, with them), for Appellant (In all the Appeals); Mr. S. K. Kapur, Advocate and Mr. K. K. Jain, Advocate for Mr. B. P. Maheshwari, Advocates, for Respondent No. 1 (A) In C. A. No. 439 of 1961) : Mr. Sardar Singh, Advocate, for Respondents Nos. 2(A), 3(A), 4(A), 5, 6, 7, 8(A), 9, 10, 11, 12 and 13(A) : Mr. Daulat Ram Prem, Sr. Advocate, (Mr. R. N. Sachtey, Advocate, with him), for Respondent No. 13(B) (Union of India) 672
Whether an application under S. 13 of the Displaced Persons (Debts Adjustment) Act, 1951, is not maintainable against the State of Punjab.
Fact of the Case:
The respondents are displaced creditors and the point arising for decision in these appeals is whether they could make a claim under this provision against the State of Punjab.
Finding of the Court:
The applications were maintainable and in doing so overruled two earlier decisions which had taken a contrary view.
Issues: Whether under S. 13 of the Act a displaced creditor could make a claim against the Government either of the State or of the Union, subject to the limitation of one year referred to in the opening words of the provision.
Ratio Decidendi: The Act was passed for the beneficent purpose of affording relief to those who owing to the disturbance which followed the partition of the country suffered grievous wrong and that the Act was intended to include the debts due by the Government.
Final Decision: The appeals therefore fail and are dismissed with costs, one hearing fee.
Judgment
AYYANGAR, J.: Section 13 of the Displaced Persons (Debts Adjustment) Act, 12951 (Central Act LXX of 1951) which will be referred to hereafter as the Act, enacts:
"13. Claims by displaced creditors against persons who are not displaced debtors.-At any time within one year after the date on which this Act comes into force in any local area, any displaced creditor claiming a debt from any other person who is not a displaced person may make an application, in such form as may be prescribed, to the Tribunal within the local limits of whose jurisdiction he or the respondent or, if there are more respondents than one, any of such respondents, actually and voluntarily resides, or carries on business or personally works for gain, together with a statement of the debt owing to him with full particulars thereof.
2. The respondents in each of these 13 appeals, which have been consolidated for hearing are "displaced creditors and the point arising for decision in them is whether they could make a claim under this provision against the State of Punjab. A petition claiming such relief was filed by the respondent in Civil Appeal 439 of 1961 before the Subordinate Judge, Amritsar who was the Tribunal created under the Act for the purpose of receiving claims under S. 13 and, similarly, the contesting respondents in the other 12 appeals 440-451 of 1961 made similar claims before the Subordinate Judge, Hissar. Immediately the claims were filed and notices issued to the State of Punjab, a preliminary objection to the maintainability of the applications was raised by the State and the Tribunal at Amritsar passed an order on May 7, 1953 rejecting the preliminary objection and holding that on a proper construction of S. 13 the claim was maintainable before it. Similar objections were also raised before the Subordinate Judge, Hissar who, by orders passed on May 25, 1953, similarly overruled the preliminary objections and held that the claims were maintainable before him. The State thereafter filed revisions in all the 13 cases to the High Court of Punjab. These petitions came in the first instance before a learned Single Judge who directed that they should be placed before a Division Bench and the two learned Judges constituting the Division Bench after referring briefly to the arguments urged on behalf of the State in support of their contention that the State was not a person against whom a claim could be made under S. 13 of the Act, expressed their opinion that the matter deserved to be decided by a larger Bench and the cases were thereupon placed before the Chief Justice for constituting a Full Bench for deciding the point of law which was formulated in these terms:
"Whether an application under S. 13 of the Displaced Persons (Debts Adjustment) Act, 1951, is not maintainable against the State of Punjab.
A Full Bench of three Judges accordingly heard arguments upon the point raised and held by a unanimous judgment that the applications were maintainable and in doing so overruled two earlier decisions which had taken a contrary view. The revision petitions were thereafter posted for final hearing before the learned Chief Justice who had originally heard them as a Single Judge and who, giving effect to the views expressed by the Full Bench, dismissed them. The State of Punjab thereafter applied to this Court for special leave and this being granted, the appeals are now before us.
3. As would be seen from the foregoing the only question that arises for consideration is whether under S. 13 of the Act a "displaced, creditor could make a claim against the Government either of the State or of the Union, subject to the limitation of one year referred to in the opening words of the provision. It is not in dispute that each one of the contesting respondents is "a displaced person nor is it the contention that the State is a displaced person. These two matters being put aside, the submission of the appellant in brief is twofold: (1) that what
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