The debt due to an evacuee vested in the Custodian under the Administration of Evacuee Property Act (31 of 1950) is not beyond the reach of the Hyderabad Jagirdars Debt Settlement Act, 1952.

( 1 ) THESE two appeals arise out of an award made by the Jagirdars Debt Settlement Board in case No. 159 of 1953. They raise two questions of law of some importance. The first question is, whether the debt due to an evacuee vested in the Custodian under the Administration of Evacuee Property Act (31 of 1950) is beyond the- reach of the Hyderabad Jagirdars Debt Settlement Act, 1952 (hereinafter referred to as the Act ). The second is, whether, on the facts and circumstances of the case failure to comply with the provisions of Sections 27 to 29 of the Act would vitiate the award.

( 2 ) IN order to appreciate the arguments advanced in this behalf, it is expedient to make a brief statement of facts. Nawab Fakhar Nawas Jung, Ex-Jagirdar, had run into huge debts. Some of his creditors had obtained decrees from the courts. There were also others, both secured and unsecured creditors. After the abolition of the Jagirs and the advent of the Hyderabad Jagirdars Debt Settlement Act, one Sayeda Hafeesunnissa Begum applied for a settlement of her debts amounting to O. S. Rs. 6,000. 00. She filed her application under Section 11 on Form No. 1. Thereupon, a notice was issued to the debtor and also a general notice was directed to be published under Section 21 (2) of the Act. Various creditors made their applications, one of them being the applicant, P. Rajagopalarao, creditor No. 9, who had obtained a decree in his favour. His decree under the provisions of the Act was also transferred to the Board. The mortgagee-creditor shown as creditor No. 3, and Nawab Fakhar Nawas Jung, the Jagirdar-debtor having come to terms made an application under Section 15 on form No. 2 on 7-8-1953. The debtor in response to the notice issued to him also took care to show in his application filed on Form No. 3 on 18-8-1953 all his various creditors including Haji Dawood Nasir, who had migrated to Pakistan and whose debt consequently became vested in the Custodian. The debt to Haji Dawood Nasir was in fact the subject matter of an award which was made the rule of the Court in O. S. No. 70 of 1950 on the file of the erstwhile Hyderabad High Court. After Haji Dawood Nasir had migrated to Pakistan, the Custodian sought to recover this sum due from Fakhar Nawaz Jung by attachment and sale of his properly. The latter took exception to it and approached the Board. The Board issued notice. Thereupon, the Custodian on 9-9-1953 sent a letter stating that the debt in question having vested in him was due to him and could be recovered by him as arrears of land revenue under Section 48 of the Administration of Evacuee Property Act. The Board did not pursue the matter further at that stage; on the other hand on 15-9-1953 while rejecting, on ground of limitation, the Form III filed by Fakhar Nawaz Jung showing the evacuee as one of the creditors, they (the Board) declared that with it the proceedings started in relation to the Custodian got automatically cancelled as the evacuee was no longer a party before them. The interim orders already passed against the Custodian to stay his hand were also revoked. Form No. 2 filed by the debtor and Creditor No. 3 -- mortgagee for want of verification could not be recorded under Section 15 of the Act. Nevertheless, it was directed to be treated as an application under Section 11. Similarly, form No. 3 which as shown above, was rejected on 15-9-1953 was subsequently on 17-11-1953 treated as an application under Section 11. Notices were then directed to be issued, but from the proceedings on 2 9/12/1954, it appears that they were not in fact issued to all the creditors. At any rate, it is common ground that no notice under Section 21 was in fact issued to the Custodian. Nawab Fakhar Nawaz Jung died during the pendency of the proceedings. His legal representatives were sought to be brought on record. At that time, it was represented to the Board that the Custodian as representative of the creditor, Haji Dawood Nasir, had auctioned the proper

Click Here to Read the rest of this document