9911796707
TMI Blog1986 (9) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... . The appellant who was displaced person made the highest bid of ₹ 20,000, it was provisionally accepted and he deposited one-fifth of the amount at the conclusion of the auction, but he failed to deposit the balance amount. The Managing officer therefore cancelled the auction sale. On a Revision Petition filed by the appellant, the Chief Settlement Commissioner by his order dated March 30, 1968 set aside the order of the Managing officer and allowed time to the appellant to deposit the balance of purchase price by May 30, 1968. The appellant again failed to deposit the amount within time, consequently Settlement officer by his order dated 2.10.1968 cancelled the auction sale made in appellant's favour. Thereafter the property was put to auction sale on January 17, 1969. At that auction sale Sohan Lal and Sunder Lal, respondents who are also displaced persons made their highest bid for ₹ 27,025 and they deposited 20% of the amount at the conclusion of the auction. Meanwhile the appellant preferred an appeal against the order dated 2.10.1968 cancelling the auction sale before the Asstt. Settlement officer, but the appeal was rejected on 2.4.1969. The appellant prefer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 959 was illegal. The High Court further held that Sri Rajni Kant exercising the powers under sec. 33 of the Act had no jurisdiction to grant time to the appellant for making deposit or to further extend the time to enable him to deposit balance of auction price by February 28, 1970. Lastly the High Court held that Shri Rajni Kant had passed orders in violation of natural justice as no notice was issued to the respondents Sohan Lal and Sunder Lal and no opportunity of hearing was afforded to them. The first question which falls for consideration is as to whether in the absence of the rules the Central Govt. had authority in law to provide for disposal of urban agricultural land by auction sale. In order to appreciate the problem it is necessary to refer to the relevant provisions of the Act and the rules. The Act was enacted by the Parliament to provide for the payment of compensation and rehabilitation of the displaced persons and to provide for matters connected therewith. A large number of persons had been displaced on account of the civil disturbances which occurred due to partition of the country in 1947. The Act provides for payment of compensation to the "displaced pers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and memorandum in 1957 & 1958 containing executive directions laying down principles and procedure for the transfer of urban agricultural land to displaced persons. According to these directions the evacuee urban agricultural land was to be disposed of in the same manner as other urban evacuee property. These directions accordingly authorised disposal of the urban agricultural property by auction sale in case the value of the property was more than ₹ 10,000. The auction sale of the plot in dispute on August 24, 1959 was held in accordance with the aforesaid directions issued by the Central Govt. The High Court has held that the disposal of property forming part of the compensation pool was "subject" to the rules framed as contemplated by ss. 8 and 40 of the Act and since no rules had been framed by the Central Government with regard to the disposal of the urban agricultural property forming part of the compensation pool, the authority constituted under the Act had no jurisdiction to dispose of urban agricultural property by auction sale. Unless rules were framed as contemplated by the Act, according to the High Court the Central Govt. had no authority in law to iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view was taken by this Court in B.N. Nagarajan & Ors. v. State of Mysore & Ors., [1966] 3 S.C.R. 682, Mysore State Road Transport Corporation v. Gopinath, [1968] 1 S.C.R. 767. In U.P. State Electricity Board v. City Board Mussoorie & Ors., [1985] 2 S.C.R. 815 validity of fixation of Grid Tarrif was under-challenge. Section 46 of the Electricity (Supply) Act, 1948 provide that tariff known as the Grid Tariff shall be fixed from time to time in accordance with any regulations made in that behalf. Section 79 of the Act conferred power on the Electricity Board to frame regulations. The contention that Grid Tariff as contemplated by sec. 46 of the Electricity (Supply) Act could not be fixed in the absence of any regulations laying down for fixation of tariff, and that the notification fixing tariff in the absence of such Regulations was illegal, was rejected and this Court observed- "It is true that sec. 79(h) of the Act authorises the Electricity Board to make Regulations laying down the principles governing the fixing of Grid Tariffs. But s. 46(1) of the Act does not say that no Grid Tariff can be fixed until such regulations are made. It only provides that the Grid Tariff shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se (supra) is not sustainable. The High Court was therefore in error in holding that the auction sale held in appellant's favour on August 24, 1959 was illegal and void . The second question relates to the validity of the order of Shri Rajni Kant the officer to whom power under s. 33 was delegated, extending time to enable the appellant to deposit the auction sale money. Shri Rajni Kant by his order dated 6.2.70 exercising the delegated powers of the Central Govt. under sec. 33 of the Act set aside the order cancelling the auction sale held in August 1959 and permitted the appellant to deposit the balance of the purchase money within fifteen days from the date of the order with a default clause that on his failure his petition would stand dismissed. In accordance with that order appellant was entitled to deposit the money till February 21, 1970. It appears that on appellant's request the office prepared a challan which was valid up to February 20, 1970. The appellant went to the State Bank on February 20, 1970 to make the deposit but due to rush he could not make the deposit. On his application Shri Rajni Kant extended the time permitting the deposit by 28.2.1970 as a resu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... powers of the Central Govt. under sec. 33 of the Act had ample jurisdiction to set aside the orders of the subordinate authorities cancelling the auction held on August 24, 1959 and to permit the appellant to deposit the balance amount of the purchase money and he further had jurisdiction to extend the time initially granted by him. Extension of time to enable the appellant to deposit the money did not amount to review of the earlier order dated 6.2.70. In our opinion the High Court has committed error in holding that extension of time amounted to review of the order dt. 6.2.1970. The default clause in the initial order dt. 6.2.1970 was intended to ensure compliance of the order. It did not mean that on expiry of the stipulated period Sri Rajni Kant had no power to extend the period or to pass another order. The purpose and object of such orders was considered by this Court in Mahanth Ram Das v. Ganga Das [1961] 3 S.C.R. 763 where the High Court, had granted time to the appellant for payment of deficit court fee with a condition that in default the appeal shall stand dismissed. The appellant made an application for extension of time but the High Court rejected the application on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nitial deposit would suffer prejudice as they would not be entitled to the property in dispute. In these circumstances the respondents were interested in supporting the order of cancellation of the auction sale made in appellant's favour and they had sufficient interest in proceedings taken under sec. 33 of the Act. We therefore agree with the High Court that in all fairness, respondents should have been afforded opportunity of hearing to the respondents while exercising power under sec. 33 of the Act. Learned counsel for the appellant urged that the respondents being the highest bidders at the subsequent auction sale had no right in the property and as such they were not entitled to any opportunity of hearing before the Central Govt. He placed reliance on a decision of this Court in Bombay Salt and Chemical v. Johnson & Ors., AIR 1958 SC 289. We have considered the said decision, where in this Court has taken the view that the highest bidder at an auction sale does not get any right or interest in the property till the auction sale is approved, confirmed and the sale deed is executed in his favour. The respondents even though they were the highest bidders at the subsequent au ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
