Judgment

KHANNA J.:- This Judgment would dispose of four appeals Nos. 1031, 1094 and 1095 of 1967 and 177 of 1968 which are directed against the judgments of the Punjab High Court. Appeals Nos. 1094 of 1967, 1095 of 1967 and 177 of 1968 have been filed on certificate of fitness granted by the High Court, while appeal No. 1031 of 1967 has been filed by special leave. The common question which arises for determination in these four appeals is whether in exercise of the powers conferred by section 40 of the Displaced Persons (Compensation and Rehabilitation), Act, 1954 (Act 44 of 1954) (hereinafter referred to as the Act), the Central Government could amend R. 49 of the Displaced Persons (Compensation and Rehabilitation) Rules, 1955 (hereinafter referred to as the rules) with retrospective effect.

2. Arguments have been addressed in appeal No. 177 of 1968 and it is stated that the decision in that appeal would govern the other appeals also.

3. Prithvi Chand appellant in appeal No. 177 of 1968 is a displaced person from West Pakistan. He filed a petition under article 226 of the Constitution in the High Court on the allegation that he was the owner of agricultural land and buildings in West Pakistan. After partition he settled permanently in village Tihar in the Union Territory of Delhi. The claim of the appellant was verified in respect of agricultural land for four standard acres and 9 1/2 units. In November 1953 the Additional Custodian of Evacuee Property (Rural) allotted barani agricultural land measuring 28 bighas and 16 biswas situated in village Tihar to the appellant and delivered him possession thereof. The appellant claimed to be in possession of that land since then. He also claimed to have spent more than Rs. 3,000/- on effecting improvements on the land. On July 10, 1959 the Settlement Officer-cum-Managing Officer issued notice to the appellant stating that he was not entitled to the transfer of the land allotted to him as it was included in urban limits and was of the value of more than Rs. 10,000/-. The appellant was called upon to show cause why the allotment of land, except in respect of one Khasra number valued below Rs. 10,000/- be not cancelled. The appellant preferred objections against the proposed action, but his objections were rejected. The allotment of land was cancelled, except in respect of one Khasra number, viz. No. 1489, measuring 4 bighas 16 biswas, which was valued at Rs. 9,680/-. Appeal filed by the appellant was dismissed by the Assistant Settlement Commissioner on October 21, 1959 on the ground that it was time barred. The appellant then filed a writ petition in the High Court.

4. The writ petition was dismissed by learned Single Judge on the ground that the departmental counsel had stated during the course of arguments that the department was willing to give the benefit of the new rules to the appellant. In Letters Patent filed by the appellant controversy centered on the point as to what was the effect of the Explanation added to Rule 49. Rule 49 as it originally stood read as under:

"49. Compensation normally to be paid in the form of land.

Except as otherwise provided in this chapter, a displaced person having verified claim in respect of agricultural land shall, as far as possible, be paid compensation by allotment of agricultural land. Provided that where any such person whishes to have his claim satisfied against property other than agricultural land, he may purchase such property by bidding for it at an open auction or by tendering for it and in such a case the purchase price of the property shall be adjusted against the compensation due on this verified claim for agricultural land which shall be converted into cash at the rates specified in Rule 56.

In 1960 the following explanation was added to the above rule:

"Explanation:- In this rule and in the other rules of this chapter, the expression agricultural land shall mean the agricultural land situated in a rural area.

The amendment was gi