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2026 Supreme(Online)(P&H) 78422

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Virinder Aggarwal, J
Haryana State – Appellant
Versus
Amrish Kumar – Respondent
RSA-5124-2003



Advocates:
For the Appellants/Petitioners: Ved Parkash
For the Respondents: Brijesh, Akansha

When authorities act in violation of principles of natural justice, the statutory bar on civil court jurisdiction under the Administration of Evacuee Property Act and Displaced Persons Act does not apply, and valuation of excess land must follow Rehabilitation Department rates rather than Consolidation Authorities' valuations.

Headnote:(A) Displaced Persons (Compensation and Rehabilitation) Act, 1954 - Section 36 - Administration of Evacuee Property Act, 1950 - Section 46 - Excess land allotment - Valuation - Determination of price - Principles of natural justice - Breach of - Jurisdiction of civil court - The court held that the valuation of excess land for transfer must be based on the rates fixed by the Rehabilitation Department rather than those set by Consolidation Authorities. It further affirmed that where authorities act in violation of the principles of natural justice and dehors the governing statute, the civil court retains jurisdiction to entertain the suit despite ouster clauses in the relevant Acts. (Paras 7-10.2)

Facts of the case:
The respondents claimed themselves to be legal heirs of an original allottee of land. Following proceedings by the Settlement Officer and Naib Tehsildar, their land was retrieved for being in excess. They challenged the valuation of the retrieved land as arbitrary and claimed that the authorities used inflated rates prescribed by the consolidation department instead of valid rehabilitation department rates. They also alleged a violation of natural justice as they were not heard prior to the reduction of their land holding.

Findings of Court:
The Court found that the Re-allotment and valuation orders were passed without affording the respondents an effective opportunity of hearing, violating natural justice. Consequently, the court affirmed the lower courts' findings that the civil court had jurisdiction to hear the matter and that the Rehabilitation Department's rates must prevail.

Issues: (1) Whether the valuation of excess land should be determined by rehabilitation or consolidation authorities. (2) Whether the civil court's jurisdiction is barred by statute. (3) Whether the decision is based on misappreciation of evidence.

Ratio Decidendi: Valuation of excess land transferred to an allottee must follow the rates prescribed by the Rehabilitation Department. Furthermore, in cases of procedural illegality involving the breach of natural justice, the statutory bar to civil court jurisdiction is not applicable.

Result: Appeal dismissed.

Table of Content
1. factual background concerning the dispute over excess land allotment and valuation methods. (Para 1 , 2)
2. procedural history, framing of issues, and judicial findings by the lower courts. (Para 3 , 4)
3. determination of valuation authority and the scope of civil court jurisdiction when natural justice is violated. (Para 5 , 6 , 7 , 8 , 9 , 10)
4. disposal of subsequent applications following the final determination. (Para 11)

VIRINDER AGGARWAL , J.

1. The present Regular Second Appeal (hereinafter referred to as “RSA”) has been preferred by the appellant–State of Haryana assailing the judgment and decree dated 08.02.2003 passed by the learned Additional District Judge, Hisar, whereby the appeal instituted by the State came to be dismissed and the judgment and decree dated 18.05.1998 passed by the learned Trial Court were affirmed.

2. The factual backdrop, as emerging from the pleadings, may briefly be delineated thus: the respondents–plaintiffs, claiming themselves to be the legal heirs of one Mansaram, instituted a suit for declaration seeking a declaration to the effect that the orders passed by the Settlement Officer-cum-Assistant Settlement Officer, Ambala dated 19.02.1987; Naib Tehsildar (Sales), Hisar dated 08.02.1998 and 30.06.1986, as approved by defendant No.2 vide order dated 28.07.1988, are illegal, null and void, contrary to the instructions issued by the State of Haryana, and not binding upon their rights.

2.1. It is pleaded that Mansaram, being a displaced person, was initially allotted land measuring 32 standard acres and 14 units. Subsequently, upon his application, an additional allotment of 9 standard acres and 4 units was made, thereby increasing his total holding to 42 standard acres and 2.5 units. After his demise, Bishan Das succeeded to the said property. A portion of the land was thereafter sold to one Deewan, and the present plaintiffs, being successors-in-interest of Bishan Das, instituted a suit for pre-emption, which came to be decreed in their favour.

2.2. It is further the case of the plaintiffs that, on 20.08.1976, land measuring 8 standard acres and 10.5 units out of the total allotted area was cancelled on the ground that the same had been allotted in excess. Thereafter, the Naib Tehsildar, Hisar, vide order dated 30.06.1988, in continuation of an earlier order dated 18.02.1988, ordered the retrieval of land measuring 205 kanals 10 marlas (equivalent to 23 standard acres and 13.5 units) from the plaintiffs.

2.3. The plaintiffs offered to purchase the said area at the rates prescribed by the Government, as permissible under the applicable policy. The competent authority, vide order dated 30.06.1986, permitted such purchase at the rates so determined, which decision was duly approved by the Joint Secretary vide order dated 28.07.1988. Subsequently, the Naib Tehsildar, vide order dated 25.09.1996, assessed the value of the land measuring 8 standard acres and 10.5 units proposed to be retrieved as 279 kanals 17 marlas.

2.4. It is further averred that the Settlement Officer, vide order dated 19.02.1987, while deciding the appeal, directed the retrieval of 8 standard acres and 10.5 units out of the excess allotment of 9 standard acres and 4 units, on the basis of the standard valuation as reflected in the consolidation records. However, in execution thereof, land measuring 205 kanals 10 marlas, equivalent to 23 standard acres and 13.5 units, was actually retrieved vide order dated 30.06.1988.

2.5. The plaintiffs assert that the amount so determined was paid by them under protest. The impugned orders were challenged, inter alia, on the grounds that the plaintiffs were entitled to purchase only the excess area of 8 standard acres and 10.5 units at the rates determined by the rehabilitation authorities, and not at the enhanced valuation determined by the consolidation authorities. It was further contended that the rates applicable should be those prevailing at the time of the original

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