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1960 Supreme(P&H) 166

PUNJAB & HARYANA HIGH COURT
Tek Chand and P.C.Pandit JJ.
Bishan Singh S.Ladha Singh
Versus
Central Government Through Secy.Ministry Of Rehabilitation Govt.Of
Civil Writ No. 1307 of 1959,1313 of 1959,
Decided On : SEPTEMBER 14, 1960

Headnote:

DISPLACED PERSONS (COMPENSATION AND REHABILITATION) ACT, 1954 - SECTIONS 8, 14, 16, 40 - RULES 22, 23, 44, 49, 70, 87, 95 - PRESS NOTES AND MEMORANDUM ISSUED BY CENTRAL GOVERNMENT AND CHIEF SETTLEMENT COMMISSIONER - VALIDITY - RULES FRAMED UNDER ACT - SCOPE - INTERPRETATION OF WORD "MAY" IN SECTIONS 8 AND 40 - WHETHER MANDATORY OR DISCRETIONARY - WHETHER GOVERNMENT CAN EVADE PROVISIONS OF ACT BY FRAMING PRESS NOTES AND MEMORANDUM INSTEAD OF RULES - HELD, PRESS NOTES AND MEMORANDUM ARE NOT VALID AND NO ACTION CAN BE TAKEN THEREON - CENTRAL GOVERNMENT CANNOT SELL EVACUEE URBAN AGRICULTURAL LAND WITHOUT FRAMING RELEVANT RULES.

Fact of the Case:

Petitioner, a displaced person from West Punjab, was given on lease 46 Kanals of evacuee agricultural land within the municipal area of Jullundur City. In 1954, the Displaced Persons (Compensation and Rehabilitation) Act, No. 45 of 1954, was enacted to provide for the payment of compensation and rehabilitation grants to displaced persons and the Central Government acquired all the evacuee property, including the land in dispute which is urban agricultural land, and put it in the compensation pool. The Central Government issued two press notes and the Chief Settlement Commissioner issued a memorandum interpreting certain terms used in the press notes. The petitioner challenged the validity of the press notes and the memorandum, contending that they were merely executive instructions which had no statutory force and that he was entitled to get the whole of the area under lease with him or at least that much area whose value did not exceed Rs. 10,000/- by setting off its valuation against the compensation payable to him.

Finding of the Court:

The Court held that it was necessary for the Central Government under the Act to frame rules for this class of displaced persons and that no such rules had been framed. The Court further held that the press notes and the memorandum were not valid and no action could be taken thereon and that the Central Government could not sell evacuee urban agricultural land without framing relevant rules.

Issues: 1. Whether it was necessary for the Central Government under the Act to frame rules for this class of displaced persons? 2. If so, has the Government framed such rules? 3. What is, in law, the value of these press notes and the memorandum? Could the respondents validly take any action on their basis?

Ratio Decidendi: 1. The Court held that it was necessary for the Central Government under the Act to frame rules for this class of displaced persons. The Court relied on Sections 8, 14, and 40 of the Act, which provide for the payment of compensation to displaced persons and the framing of rules for the purpose of payment of compensation. The Court held that the word "may" in Sections 8 and 40 should be read as "must" or "shall" and that the Central Government had a duty to frame rules for this class of displaced persons. 2. The Court held that no special rules had been framed by the Central Government for this class of displaced persons, as have been framed for other classes of displaced persons. The Court held that Rule 23, which deals with the sale of evacuee properties, does not cover urban agricultural land and that Rule 95(5) does not deal with the manner in which compensation is to be paid to the holders of urban agricultural land. 3. The Court held that the press notes and the memorandum were not valid and no action could be taken thereon. The Court held that the press notes and the memorandum were merely executive instructions or executive action which is authorised by the Act and the Rules framed thereunder, and that they did not have the force of law.

Final Decision: The Court allowed the petitions and held that any action taken or intended to be taken on the basis of the press notes and the memorandum was of no legal effect, as they did not have the force of law. The Court left the parties to bear their own costs in this Court.

Judgment

P.C.Pandit, J.

1. These are two writ petitions (Nos. 1307 and 1313 of 1959) under Articles 226 and 227 of the Constitution of India challenging the validity of two press notes issued by the Central Government and one Memorandum issued by the Chief Settlement Commissioner, Ministry of Rehabilitation, New Delhi. This judgment will dispose of both the writ petitions as the learned counsel for the parties agree that though the facts in writ petition No. 1313 of 1959 are somewhat different from writ petition No. 1307 of 1959 but the questions for determination are the same and both of them can be disposed of by this judgment.

2. The petitioner in this case (Civil Writ No. 1307 of 1939) is a displaced person from West Punjab and has now settled at Jullundur. In lieu of his agricultural land within the corporation area of Lahore, the petitioner after his migration to India was given on lease 46 Kanals of evacuee agricultural land within the municipal area of Jullundur City. His lease was renewed from year to year and he has been in possession of this land ever since. In 1954 the Displaced Persons (Compensation and Rehabilitation) Act, No. 45 of 1954, was enacted to provide for the payment of compensation and rehabilitation grants to displaced persons and the Central Government acquired all the evacuee property, including the land in dispute which is urban agricultural land, and put it in the compensation pool. On the 4th June 1957, the Central Government issued the following press note in which it was mentioned as to how these urban agricultural lands would be permanently transferred:

Evacuee urban agricultural lands in the Punjab and in the erstwhile Pepsu Union had been given temporarily on lease to displaced persons who had left such lands in West Pakistan. The leases were renewed from time to time. There has been a demand from displaced persons to whom these lands had been leased out that they should be transferred to them permanently. These demands have been made both by the original lessees and by displaced persons who are sub-lessees and who have been in actual cultivating possession. Government has carefully considered this question and in order to avoid hardship to displaced persons who are in occupation of these lands, has decided to treat them in the same manner as other urban evacuee property in the matter of allotment. 2. In accordance with this decision urban agricultural plots which do not exceed Rs. 10,000/- in value will be transferred at the reserve price on the following conditions: (i) Where the lessee is a displaced person and is in actual occupation of such land he will be entitled to have the land transferred to him. Where the lessee is a displaced person and is not in occupation of land because he has sublet it, he is entitled to have the land tranferred to him provided that he had been in actual possession of this land within a period of one year before 1st January, 1957.

(ii) Where the land has been sublet and the sub-lessee is a displaced person, such sub-lessee can have the land transferred in his name provided that he has been in possession of the land for a period of not less than one year on January, 1, 1957.

(iii) Where the land is in the possession of a lessee or sub-lessee who is not a displaced person, it will be sold by auction. Where the land is in the possession of a sub-lessee who has been in possession for a period of less than one year on January, 1, 1957, and where the lessee is not entitled to allotment, the land will be sold by open auction.

(iv) For the purpose of this allotment each holding of urban agricultural land will be taken as a unit and will not be allowed to be treated as divisible for bringing it within allottable limit.

3. The price of lands allotted to occupants will be recoverable in accordance with the provisions of the Displaced Persons (Compensation arid. Rehabilitation) Rules, 1955 and instructions issued from time to time. After these evacuee urban agricultural l














































































































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