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1958 (4) TMI 6 - SUPREME COURTWhether even apart from article VI of the Covenant, the impugned Ordinance No. 1 of S. 2005 is bad in so far as it annuls rights granted by the Ruler of Jind under the agreement dated April 1, 1938? Held that:- It was argued that article VI of the Covenant would at least be valuable evidence from which affirmance of those rights could be inferred. That is so ; but that inference must relate to act or conduct of the new State, and that can only be after its formation on August 20, 1948. If there were any acts of the new State which were equivocal in character, it would have been possible to hold in the light of article VI of the Covenant that its intention was to affirm the concessions in clause (23) of exhibit A. But the act of the new sovereign immediately after he became in titulo was the application of the Patiala State laws including the Patiala Income-tax Act to the territories of Jind involving negation of those rights. It was said that the levy of income-tax for 1948-1949 was made in accordance with exhibit A, but that relates to a period anterior to the formation of the new State and is within the saving enacted in the proviso to section 3 of the Ordinance. The appellant has failed to substantiate his plea that there has been affirmance of clause (23) of exhibit A by the Patiala State Union, and this point also must be found against it. Appeal dismissed.
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