IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Ajay Mohan Goel, J.
Vipan Chand And Another - Appellant
Vs.
State of Himachal Pradesh - Respondent
Civil Writ Petition No. 64 of 2016
Decided On : 23-08-2019
Fraud - Displaced Persons (Compensation and Rehabilitation) Act, 1954 - Section 24 - Summary of Acts and Sections: The court discussed the provisions of Section 24 of the Displaced Persons (Compensation and Rehabilitation) Act, 1954, which confers upon the Chief Settlement Commissioner the power of Revision. The court highlighted the conditions under which the Chief Settlement Commissioner may cancel the lease or allotment of a person under the Act, primarily on grounds of fraud, false representation, or concealment of material facts. The court emphasized the requirement for a show cause notice to be explicit and contain reasons for issuance, as the absence of reasons would render the notice invalid. The court concluded that the initial notice issued by the Chief Settlement Commissioner under Section 24 of the 1954 Act was invalid, leading to the subsequent orders being unsustainable in law.
Fact of the Case:
The petitioners applied for the sale of land under the Displaced Persons (Compensation and Rehabilitation) Act, 1954. Subsequently, a notice was issued by the Chief Settlement Commissioner to cancel the sale certificate, alleging fraud and violation of rules. The petitioners challenged the legality of the initial notice.
Finding of the Court:
The court found that the initial notice issued by the Chief Settlement Commissioner under Section 24 of the 1954 Act was invalid, rendering the subsequent orders unsustainable in law. The court quashed the initial notice and the subsequent orders, allowing the petition on technicalities and reserving the liberty to the respondent-State to initiate fresh action in accordance with the law.
Issues: The issues revolved around the validity of the initial notice issued by the Chief Settlement Commissioner under Section 24 of the Displaced Persons (Compensation and Rehabilitation) Act, 1954, and the sustainability of the subsequent orders based on the invalid notice.
Ratio Decidendi: The court's decision was based on the invalidity of the initial notice, emphasizing the requirement for a show cause notice to be explicit and contain reasons for issuance. The court held that the absence of reasons in the notice rendered it invalid, consequently leading to the subsequent orders being unsustainable in law.
Final Decision: The court quashed the initial notice and the subsequent orders, allowing the petition on technicalities and reserving the liberty to the respondent-State to initiate fresh action in accordance with the law.
JUDGMENT :
Ajay Mohan Goel, J.
By way of this petition, petitioners have inter alia prayed for the following substantive relief:-
"(i) That order Annnexure P-5 passed by the Chief Settlement Commissioner (Rehabilitation) government of Himachal Pradesh and Annexure P-7 passed by the Ld. Financial Commissioner (Appeals) may kindly be quashed and set aside in the interest of justice and fair play.
(ii) That the respondents may kindly be burdened with costs.
(iii) That the entire record of the case may kindly be called for.
Any such further orders, writ or direction which this Hon'ble Court may deem fit and proper in the facts and circumstances of the case may kindly be passed in favour of the petitioners and against the respondents."
2. Brief facts necessary for adjudication of the present petition are as under:-
Petitioners applied for sale of land measuring 2262 sq. meters comprised in Khasra No. 997, situated in Up Mohal Missan Mauza Ujjain, Tehsil and District Kangra, Himachal Pradesh to Naib Tehsildar (Sales)-cum-Managing Officer, Kangra, under the provisions of the Displaced Persons (Compensation and Rehabilitation) Act, 1954 (hereinafter referred to as the 1954 Act'), on the ground that they were in settled and physical possession of the said evacuee property. Vide Annexure P-1, the Sale Certificate was issued in their favour on 6th April, 1996. The officer concerned transferred the said land by way of sale in favour of the petitioners for a total sale consideration of Rs. 2500/-. Thereafter, mutation was attested in favour of the petitioners qua the suit land and entries were duly recorded in the revenue record.
3. A Notice was received by the petitioners dated 01.01.2002 (Annexure P-3) issued by the Chief Settlement Commissioner, Rehabilitation, Himachal Pradesh at Shimla, in which it was mentioned that it had come to the notice of the said Officer that the land, subject matter of this petition, was transferred by Naib Tehsildar (Sales), Kangra/Shimla to the petitioners and the signatory to the Notice, i.e. Chief Settlement Commissioner, Rehabilitation, Himachal Pradesh, calls upon the petitioners as to why the transfer of the land mentioned in the Notice should not be cancelled in exercise of powers under Section 24 of the 1954 Act.
4. Petitioners responded to said Notice and stated that they had purchased the evacuee property in a lawful manner after paying the lawful consideration and after the sale of the property in favour of the petitioners, they have become absolute owners of the same and were also in possession thereof and that Officer was having no jurisdiction to initiate proceedings under Section 24 of the 1954 Act.
5. Chief Settlement Commissioner, Rehabilitation, vide order dated 26.11.2011 (Annexure P-5), set aside the conveyance deed executed on 06.04.1996 and ordered the property to be restored to the Central government on the ground that the transaction was a result of fraud and in violation of the Rules and the Officer concerned had indulged in gross negligence and misuse of official position and committed fraud with the Government. It was mentioned in the order that the Officer concerned, who had issued the Sale Certificate, was not competent to transfer the land and it was in the knowledge of the purchaser that no property could be obtained in such unlawful manner. It was also mentioned in the order that purchaser should have inquired about the evacuee property and therefore, role of the purchaser in obtaining the Sale Certificate also could not be ruled out.
6. A revision petition preferred against the said order under Section 24 of the 1954 Act was also dismissed by the learned Financial Commissioner (Appeals) vide order dated 18.5.2015 (Annexure P-7), by holding that procedure as prescribed in Chief Settlement Commissioners' letter No. Rev (RR)(F)10-2/87-II, dated 8.7.1994, which provided that no evacuee property should be transferred by Naib Tehsildarcum-Managing Director was violated and Central Government p
AI
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.