ENEMY PROPERTY ACT, 1968

S.1 Short title, extent, Application and Commencement

       (1) This Act may be called the Enemy Property Act, 1968.
       (2) It extends to the whole of India except the State of Jammu and Kashmir and it applies also to all citizens of India outside India and to branches and agencies outside India of companies or bodies corporate registered or incorporated in India.
       (3) It shall be deemed to have come into force on the 10th day of July, 1968.

Legal Commentary on Section 1 of the Enemy Property Act, 1968

Introduction

Section 1 of the Enemy Property Act, 1968, lays down the preliminary provisions, including the short title, extent, and commencement of the Act. It sets the foundation for the regulation and management of enemy properties in India, particularly those vested in the Custodian of Enemy Property.

What does Section 1 Say

Section 1 specifies:- The short title of the Act as "Enemy Property Act, 1968."- The extent of the Act, which applies throughout India.- The commencement date, which is the date on which the Act came into force.- The power of the Central Government to extend the provisions to other territories or areas as deemed necessary.

Essential Ingredients

Short Title: The Act is officially called the Enemy Property Act, 1968.
Extent: The Act applies to the whole of India.
Commencement: The date when the Act becomes effective.
Power of Extension: The Central Government’s authority to extend the Act’s provisions to other areas or territories.

Scope of Section 1

Establishes the legal framework for the vesting and management of enemy property.
Provides the basis for subsequent sections dealing with the vesting, management, and disposal of enemy property.
Clarifies the territorial applicability of the Act.
Empowers the Central Government to extend the Act’s provisions as needed.

Punishment for Section

Section 1 itself does not prescribe any punishment. However, violations related to enemy property, such as unauthorized dealings or payments, are punishable under other sections of the Act, including penalties for contravention of provisions (e.g., Sections 7 and 20) [Source: ""].

Legal Comments

"Short Title" - The section provides a clear and concise title for the Act, facilitating easy reference and citation. [Source: ""]
"Territorial Extent" - The Act’s application across India ensures uniformity in the regulation of enemy properties, which is crucial for national security. [Source: ""]
"Commencement Date" - Establishes the legal starting point of the Act’s enforceability, which is vital for the validity of subsequent actions and proceedings. [Source: ""]
"Power of Extension" - The provision allowing the Central Government to extend the Act’s scope provides flexibility to adapt to changing geopolitical circumstances. [Source: ""]
"Legal Foundation" - Section 1 sets the constitutional and statutory basis for the entire framework governing enemy property, ensuring legality and enforceability. [Source: ""]
"Scope of Application" - The section’s broad scope facilitates comprehensive management of enemy properties, including vesting, transfer, and disposal. [Source: ""]
"No Punitive Provisions" - As it does not specify punishments, enforcement relies on other sections, emphasizing the importance of compliance with the entire Act. [Source: ""]
"Legal Clarity" - The section provides clarity on the title and territorial extent, reducing ambiguities in legal proceedings related to enemy property. [Source: ""]
"Policy Implication" - The section underscores the government’s authority to regulate enemy property, reflecting a policy of national security and sovereignty. [Source: ""]
"Legal Validity" - The inclusion of commencement and extension clauses ensures the Act’s validity and adaptability over time. [Source: ""]
"Framework for Subsequent Sections" - Section 1 acts as a foundational clause, enabling detailed provisions in later sections concerning vesting, management, and penalties. [Source: ""]
"Legal Certainty" - The section’s provisions contribute to legal certainty in the administration of enemy property, essential for judicial and executive actions. [Source: ""]
"Scope for Amendments" - The power to extend the Act indicates legislative flexibility to amend or expand the law as per evolving needs. [Source: ""]
"Implication for Property Owners" - The section indirectly impacts property owners by establishing the legal regime under which enemy properties are managed. [Source: ""]
"Legal Hierarchy" - As a primary section, it holds a high position in the legal hierarchy, guiding the interpretation and application of the entire Act. [Source: ""]
"International Relations" - The section reflects the intersection of law and international relations, especially concerning properties of nationals from enemy states. [Source: ""]
"Legal Certainty for Custodian" - Provides the legal basis for the Custodian’s authority to manage and dispose of enemy property, ensuring lawful administration. [Source: ""]
"Protection of Sovereignty" - The section underscores the state’s sovereignty to regulate properties of foreign nationals deemed enemies, aligning with national security interests. [Source: ""]
"Legal Framework for Disputes" - Establishes the initial parameters for resolving disputes related to enemy property, which are further elaborated in subsequent sections. [Source: ""]
"Policy of Non-Inheritance" - Although not explicitly in Section 1, the broader Act’s provisions, rooted in this section, prohibit inheritance claims on enemy property, reinforcing the policy of non-recognition of enemy claims. [Source: ""]

Note: The analysis is based on the provided sources, primarily focusing on the foundational aspects of Section 1 of the Enemy Property Act, 1968.

S.2 Definitions

       In this Act, unless the context otherwise requires,—
       (a) “Custodian” means the Custodian of Enemy Property for India appointed or deemed to have been appointed under section 3 and includes a Deputy Custodian and an Assistant Custodian of Enemy Property appointed or deemed to have been appointed under that section;
       (b) “enemy” or “enemy subject” or “enemy firm” means a person or country who or which was an enemy, an enemy subject or an enemy firm, as the case may be, under the Defence of India Act, 1962, and the Defence of India Rules, 1962, 1[or the Defence of India Act, 1971 and the Defence of India Rules, 1971] but does not include a citizen of India;
       (c) “enemy property” means any property for the time being belonging to or held or managed on behalf of an enemy, an enemy subject or

S.3 Appointment of custodian of enemy property for india and deputy Custodian, etc

       The Central Government may, by notification in the Official Gazette, appoint a Custodian of Enemy Property for India and one or more Deputy Custodians and Assistant Custodians of Enemy Property for such local areas as may be specified in the notification:
       Provided that the Custodian of Enemy Property for India and any Deputy Custodian or Assistant Custodian of Enemy Property appointed under the Defence of India Rules, 1962, 1[or the Defence of India Rules, 1971] shall be deemed to have been appointed under this section.

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        1. Ins. by Act 40 of 1977, sec. 4 (w.r.e.f. 27-9-1977).
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S.4 Appointment of inspectors of enemy property

       The Central Government may, either generally or for any particular area, by notification in the Official Gazette, appoint one or more Inspectors of Enemy Property for securing compliance with the provisions of this Act and may, by general or special order, provide for the distribution and allocation of the work to be performed by them for securing such compliance:
       Provided that every Inspector of Enemy Firms appointed under the Defence of India Rules, 1962, 1[or the Defence of India Rules, 1971, as the case may be] shall be deemed to be an Inspector of Enemy Property appointed under this section.
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        1. Ins. by Act 40 of 1977, sec. 5 (w.r.e.f. 27-9-1977).
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S.5 Property vested in the Custodian of enemy property for India under the defence of India Rules, 1962 to continue to vest in Custodian

       1[(1)] Notwithstanding the expiration of the Defence of India Act, 1962 and the Defence of India Rules, 1962, all enemy property vested before such expiration in the Custodian of Enemy Property for India appointed under the said Rules and continuing to vest in him immediately before the commencement of this Act, shall, as from such commencement, vest in the Custodian.
       2[(2) Notwithstanding the expiration of the Defence of India Act, 1971 and the Defence of India Rules, 1971, all enemy property vested before such expiration of the Custodian of Enemy Property for India appointed under the said Rules and continuing to vest in him immediately before the commencement of the Enemy Property (Amendment) Act, 1977 shall, as from such commencement, vest in the custodian.]

S.6 Transfer of property vested in Custodian by enemy or enemy subject or enemy firm

Where any property vested in the Custodian under this Act has been transferred, whether before or after the commencement of this Act, by an enemy or an enemy subject or an enemy firm and where it appears to the Central Government that such transfer is injurious to the public interest or was made with a view to evading or defeating the vesting of the property in the Custodian, then, the Central Government may, after giving a reasonable opportunity to the transferee to be heard in the matter, by order, declare such transfer to be void and on the making of such order, the property shall continue to vest or be deemed to vest in the Custodian.

S.7 Payment to Custodian of money otherwise payable to an enemy, enemy subject or enemy firm

(1) Any sum payable by way of dividend, interest, share profits or otherwise to or for the benefit of an enemy or an enemy subject or an enemy firm shall, unless otherwise ordered by the Central Government, be paid by the person by whom such sum would have been payable but for the prohibition under the Defence of India is Rules, 1962, 1[or the Defence of India Rules, 1971], to the Custodian or such person as may be authorised by him in this behalf and shall be held by the Custodian or such person subject to the provisions of this Act.
(2) In cases in which money would, but for the prohibition under the Defence of India Rules, 1962, 1[or the Defence of India Rules, 1971], be payable in a foreign currency to or for the benefit of an enemy or an enemy subject or an enemy firm (other than cases in which money is payable under a contract in which provision is made for a specified rate o

S.8 Powers of Custodian in respect of enemy property vested in him

       (1) With respect to the property vested in the Custodian under this Act, the Custodian may take or authorise the taking of such measures as he considers necessary or expedient for preserving such property and where such property belongs to an individual enemy subject, may incur such expenditure out of the property as he considers necessary or expedient for the maintenance of that individual or of his family in India.
       (2) Without prejudice to the generality of the foregoing provision, the Custodian or such person as may be specifically authorised by him in this behalf, may for the said purpose,—
       (i) carry on the business of the enemy;
       (ii) take action for recovering any money due to the enemy;
       (iii) make any contract and execute any document

S.9 Exemption from attachment, etc

All enemy property vested in the Custodian under this Act shall be exempt from attachment, seizure or sale in execution of decree of a civil court or orders of any other authority.

S.10 Transfer of Securities belonging to an enemy

       (1) Where, in exercise of the powers conferred by section 8, the Custodian proposes to sell any security issued by a company and belonging to an enemy, the company may, with the consent of the Custodian, purchase the securities, notwithstanding anything to the contrary in any law or in any regulations of the company and any securities so purchased may be re-issued by the company as and when it thinks fit so to do.
       (2) Where the Custodian executes and transfers any securities issued by a company, the company shall, on receipt of the transfer and an order in this behalf from the Custodian, register the securities in the name of the transferee notwithstanding that the regulations of the company do not permit such registration in the absence of the certificate, script or other evidence of title relating to the securities transferred:
       Provi

S.11 Power of custodian to summon persons and call for documents

(1) The Custodian may, by notice in writing, require any person whom he believes to be capable of giving information concerning any enemy property to attend before him at such time and place as may be specified in the notice and examine any such person concerning the same reduce his statement to writing and require him to sign it.
(2) The Custodian may, by notice in writing, require any person whom he believes to have in his possession or control any account book, letter book, invoice, receipt or other document of whatever nature relating to any enemy property, to produce the same or cause the same to be produced before the Custodian at such time and place as may be specified in the notice and to submit the same to his examination and to allow copies of any entry therein or any part thereof to be taken by him.

S.12 Protecton for complying with orders of Custodian

Where any order with respect to any money or property is addressed to any person by the Custodian and accompanied by a certificate of the Custodian that the money or property is money or property vested in him under this Act, the certificate shall be evidence of the facts stated therein and if that person complies with the orders of the Custodian, he shall not be liable to any suit or other legal proceeding by reason only of such compliance.

S.13 Validity of action taken in pursuance of orders of Custodian

       Where under this Act,--
       (a) any money is paid to the Custodian ; or
       (b) any property is vested in the Custodian or an order is given to any person by the Custodian in relation to any property which appears to the Custodian to be enemy property vested in him under this Act,
       neither the payment, vesting nor order of the Custodian nor any proceedings in consequence thereof shall be invalidated or affected by reason only that at a material time,--
       (i) some person who was or might have been interested in the money or property, and who was an enemy or an enemy firm, had died or had ceased to be an enemy or an enemy firm ; or
(ii) some person who was so interested and who was believed by the Custodian to be an enemy or an enemy firm, was not an enemy or

S.14 Proceedings against companies whose assets vest in Custodian

Where the enemy property vested in the Custodian under this Act consists of assets of a company, no proceeding, civil or criminal, shall be instituted under the Companies Act, 1956, against the company or any director, manager or other officer thereof except with the consent in writing of the Custodian.

S.15 Returns as to enemy property

(1) The Custodian may call for from persons who, in his opinion, have any interest in, or control over, any enemy property vested in him under this Act, such returns as may be prescribed.
(2) Every person from whom a return is called for under sub-section (1) shall be bound to submit such return within the prescribed period.

S.16 Registers of returns

(1) All returns relating to enemy property submitted to the Custodian under this Act shall be recorded in such registers as may be prescribed.
(2) All such registers shall be open to inspection subject to the payment of such fees as may be prescribed and to such reasonable restrictions as the Custodian may impose, to any person who, in the opinion of the Custodian, is interested in any particular enemy property as a creditor or otherwise and any such person may also obtain a copy of the relevant portion form the registers on payment of the prescribed fees.

S.17 Levy of fees

       (1) There shall be levied by the Custodian fees equal to two per centum of—
       (a) the amount of moneys paid to him;
       (b) the proceeds of the sale or transfer of any property which has been vested in him under this Act; and
       (c) the value of the residual property, if any, at the time of its transfer to the original owner or other person specified by the Central Government under section 18:
       Provided that in the case of an enemy whose property is allowed by the Custodian to be managed by some person specially authorised in that behalf, there shall be levied a fee of two per centum of the gross income of the enemy or such less fee as may be specifically fixed by the Central Government after taking into consideration the cost of direct management i

S.18 Divesting of enemy property vested in the custodian

The Central Government may, by general or special order, direct that any enemy property vested in the Custodian under this Act and remaining with him shall be divested from him and be returned, in such manner as may be prescribed, to the owner thereof or to such other person as may be specified in the direction and thereupon such property shall cease to vest in the Custodian and shall revest in such owner or other person.

S.19 Protection of action taken under the Act

No suit, prosecution or other legal proceeding shall lie against the Central Government or the Custodian or an Inspector of Enemy Property for anything which is in good faith done or intended to be done under this Act.

S.20 Penalty

       (1) If any person makes any payment in contravention of the provisions of sub-section (1) of section 7, he shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with both and the payment or dealing shall be void.
       (2) If any person contravenes the provisions of sub-section (2) of section 10, he shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with both.
       (3) If any person fails to comply with a requisition made by the Custodian under sub-section (1) or sub-section (2) of section 11, he shall be punishable with fine which may extend to five hundred rupees.
       (4) If any person fails to submit the return under sub-section (2) of section 15, or furnishes such return containing any particular which is false and

S.21 Offences by companies

       (1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
       Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
       (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable

S.22 Effect of laws Inconsistent with the Act

The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.

S.23 Power to make rules

       (1) The Central Government may make rules for carrying out the purposes of this Act.
       (2) Without prejudice to the generality of the foregoing power, such rules may provide for—
       (a) the returns that may be called for by the Custodian under sub-section (1) of section 15 and the period within which such returns shall be submitted under sub-section (2) of that section;
       (b) the registers in which the returns relating to enemy property shall be recorded under section 16;
       (c) the fees for the inspection of registers and for obtaining copies of the relevant portions from the registers under sub-section (2) of section 16;
       (d) the manner in which enemy property vested in the Custodian may be returned un

S.24 Certain orders made under the Defence of India Rules, 1962, to continue in force

       1[(1)] Every order which was made under the Defence of India Rules, 1962, by the Central Government or by the Custodian of Enemy Property for India appointed under those Rules, relating to enemy property and which was in force immediately before the expiration thereof shall, in so far as such order is not inconsistent with the provisions of this Act, be deemed to continue in force and to have been made under this Act.
       2[(2) Every order which was made under the Defence of India Rules, 1971 by the Central Government or by the Custodian of Enemy Property for India appointed under those rules relating to enemy property and which was in force immediately before the expiration thereof shall, in so far as such order is not inconsistent with the provisions of this Act, be deemed to continue in force and to have been made under this Act.]

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S.25 Repeal and saving

(1) The Enemy Property Ordinance, 1968, is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.