D.K.Mahajan, J.

1. This is a first appeal arising out of an order passed by Shri Chetan Dass Jain, Senior Sub-Judge, acting as a Tribunal under the Displaced Persons (Debts Adjustment) Act (Act No. 70 of 1951)--hereinafter referred to as the Act, in an application under S. 13 of the Act against the Union of India. This appeal came up for hearing before Bishan Narain J. on 18-9-1956, and in view of the importance of the questions involved, it was referred to a Division Bench for decision.

2. The facts giving rise to this appeal are short and simple. Amolak Ram Sethi was carrying on business of a fruit merchant as sole proprietor under the name and style of Laxmi Fruit Agency at Jammu Tawi (Kashmir) and Rawalpindi (now Pakistan). He booked three consignments of fruits and vegetables from Jammu Tawi to Delhi. One of these consignments the consignment in dispute in this appeal was booked on 12-8-1947, and the remaining two, not in dispute in this appeal, were booked on 27-8-1947. The goods never reached the destination and were neither delivered to the consignee nor to the consignor. Amolak Ram died in communal riots in Rawalpindi in September, 1947. His widow Smt. Tara Rani an