HIGH COURT OF CALCUTTA
G. K. Mitter
KARNAPHULI JUTE MILLS LTD. - Appellant
Versus
UNION OF INDIA (UOI) - Respondent
Suit 3641 Of 1950
Decided On : JULY 22, 1955
DEFENCE OF INDIA ACT - REQUISITION OF PROPERTY - COMPENSATION - JURISDICTION - DISPLACED PERSONS INSTITUTION OF SUITS ACT, 1948 - APPLICABILITY.
Fact of the Case:
Plaintiff, a displaced person, filed a suit against the defendant for compensation for requisition of its mill and factory premises, damages for failure to allow removal of movables, failure to take proper care of properties, conversion of bricks and logs, and damages for looting and pilferage. The defendant denied liability and claimed that the liabilities, if any, were those of the Dominion of Pakistan.
Finding of the Court:
1. The liability for compensation for requisition of the plaintiff's property did not devolve on the defendant as it was an actionable wrong other than breach of contract and arose wholly within the territories of Pakistan. 2. The suit was not barred under the Defence of India Act or the Requisition of Land (Continuance of Powers) Act, 1947, as the statute did not prescribe a complete remedy and arbitration under the Defence of India Act applied to both acquisitions and requisitions. 3. The Court did not have jurisdiction to try the suit as no part of the cause of action arose within its jurisdiction and the Displaced Persons Institution of Suits Act, 1948 was not applicable to the plaintiff, a company incorporated under the Indian Companies Act.
Issues: 1. Is the liability to the plaintiff, if any, that of the Dominion of Pakistan? 2. Is the suit maintainable by reason of the provisions of the Defence of India Act and Rules made thereunder and the Requisition of Land (Continuance of Powers) Act, 1947? 3. Has this Court jurisdiction to try and determine this Suit? 4. Is the suit barred by limitation?
Ratio Decidendi: 1. The liability for compensation for requisition of property under the Defence of India Act is a creature of statute and not an actionable wrong. 2. The Displaced Persons Institution of Suits Act, 1948 does not apply to a company incorporated under the Indian Companies Act, as the Act was intended for natural persons and not legal entities.
Final Decision: The plaintiff's suit was dismissed with costs.
( 2 ) THE plaintiff company is incorporated under the Indian Companies Act and formerly used to carry on business at Chittagong; it describes itself in the cause title of the plaint as having its registered office at present at 1b, Old Post Office Street, Calcutta. It claims to He a "displaced person" within the meaning of the Displaced Persons Institution of Suits Act, 1948.
( 3 ) THE main facts which can tie gathered from the plaint are as follows: (4) The plaintiff was the owner of a mill and factory at Chittagong consisting of certain buildings, plants and machinery. In the factory premises were stored, at the relevant time, various movables including logs of timber, stacks of bricks etc. The factory stood on land belonging to the Commissioners for the Post of Chittagong. On the 7-2-1942 the premises of the mill and factory of the plaintiff were requisitioned under the Defence of India Rules and possession thereof is alleged to have been made over to the defendant immediately thereafter. The plaintiff's properties were derequisitioned on 3-7-1947 and formal possession delivered to the plaintiff shortly , after the said date. The plaintiff complains that the military authorities of the Government of India converted the mill and factory area into a military base by demolishing certain portions of the buildings and structures and thereby damaged plants, machinery and movables lying therein. Complaint is also made that the defendant did not accord facility to the plaintiff to remove the moveables lying in the factory and failed further to take proper or reasonable care of the plaintiff's properties.
( 4 ) THE plaintiff's claim can be summarised under the following heads :-- (a) Compensation for requisition of the premises of the mill and the factory. (b) Damages suffered by reason of the defendant's failure to allow the plaintiff opportunity to remove various movables. (c) Damages suffered on account of the defendant's failure to take proper or reasonable care of the plaintiff's properties by reason whereof machinery ana other movables have become entirely unfit for use. (d) Damages for conversion of three lakhs of bricks and 370 tons of Gamar logs taken over by the defendant in 1942. (e) Damages suffered through the defendant's default in allowing the plaintiff's properties to be looted and pilfered.
( 5 ) THE plaintiff charges that in spite of its efforts in that behalf no agreement could be arrived at with respect to the compensation due and payable to it and the defendant was not ready and willing to appoint an arbitrator to assess the compensation.
( 6 ) BY its written statement the defendant refers to the order of requisition dated 7-2-1942 for the scope and effect thereof. The defendant does not admit its liability to pay any compensation to the plaintiff and denies the plaintiff's claim in its entirety. The defendant further states that the liabilities, if any, arising out of the requisition of the plaintiff's properties and premises are those of the Dominion of Pakistan, and this Court is not competent to try and determine the suit inasmuch as no part of the cause of action for It has arisen within the jurisdiction of this Court.
( 7 ) THE following issues were settled as preliminary issues :-- (1) Is the liability to the plaintiff, If any, that of the Dominion of Pakistan?. 2. Is the suit maintainable by reason of the provisions of the Defence of India Act and Rules made thereunder and the Requisition of Land (Continuance of Powers) Act, 1947? 3. Has this Court jurisdiction to try and determine this Suit? 4. Is the suit barred by limitation?
( 8 ) ISSUE No. 1: The plaintiff's claim can be grouped under two main heads, the first being compensation for requisition of the
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