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TMI Blog1960 (9) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... d; land is also a holder of a verified claim to the extent of Rs, 17,500/- and the net compensation to which he is entitled has been assessed at ₹ 6,000/-odd. 4. All these petitioners obtained loans from the State Government for one or more of the following purposes, namely: 1. For the purchase of tractors, seed, bullocks, and houses; or 2. for repairs to houses; or 3. for construction of houses; Or 4. for sinking of tubewells or wells etc. These loans were advanced to them under the provisions of the Land Improvement Loans Act (No. 19 of 1883) and the Agriculturists' Loans Act (No. 12 of 1884). Both of these Acts are Governor-General's Acts and as such Central Acts passed long before the bifurcation of the legislative powers between the Centre and the provinces and later on the States. These laws have been saved by the Constitution Acts that have been passed from time to time and fall within the category known to the Constitution of India as the "Existing Laws". Section 4 of both of these Acts sets out the purpose for which loans may be granted, while Section 6 in the 1883 Act deals with the period for repayment of the loans and Section 7 with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sons (Compensation and Rehabilitation) Act (No. 44 of 1954) -- hereinafter called the Act -- and particularly on Section 30 of the Act, which prohibits arrests for the recovery of sums due under the Act. The petitioners' case is that these loans are public dues as defined in Section 2(d) of the Act and according to the scheme and the provisions of the Act are now sums recoverable under the Act and therefore in view of Section 30 of the Act, the petitioners cannot be arrested. 8. On the other hand, the contention of the State is that these sums are not sums due under the Act, but are sums due under the Land Improvement Loans Act (No. 19 of 1883) and the Agriculturists' Loans Act (No. 12 of 1884) and as such can be recovered as arrears of land revenue and the petitioners can be arrested. It is further contended that even if these loans are held to be sums due under the Act the jurisdiction to legislate about them is within the exclusive legislative field of the State and therefore the Act so far as it bars arrest for recovery of the loans would be outside the competence of the Union Legislature and would, to that extent, be ultra vires. In support of these contentions, numbe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant; f) * * * g) * * * Section 7 provides for the determination of compensation and for the deduction of public dues from the amount of compensation and is in these terms: "7(1) * * * (2) On ascertaining the amount of compensation to which an applicant is entitled under Sub-section (1), the Settlement Commissioner shall deduct therefrom the following dues recoverable from the applicant, in the order of priority mentioned below: (a) the amount, if any, of the public dues recoverable from the applicant under Section 5; b) * * * c) * * * (3) After deducting the dues referred to in Sub-section (2) the Settlement Commissioner shall make an order determining the net amount of compensation, if any, payable to the applicant. (4) * * *" Section 10 provides a special procedure for payment of compensation in certain cases specified in the section and is in these terms: "10. Where any immovable property has been leased or allotted to a displaced person by the Custodian under the conditions published: (a) by the notification of the Government of Punjab in the Department of Rehabilitation No. 4895-S or 4892-S dated the 8th July, 1949; or (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) For the purpose of this section, a sum shall be deemed to be payable to the Custodian, notwithstanding that its recovery is barred by the Indian Limitation Act, 1908 (9 of 1908), or any other law for the time being in force, relating to limitation of actions." deals with certain sums to be recovered as arrears of land revenue. Section 30, which is in these terms: "30(1) No person shall be liable to arrest or imprisonment in pursuance of any process issued for the recovery of any sum due' under this Act which is recoverable as an arrear of land revenue. (2) Notwithstanding anything contained in Sub-section (1) if the Chief Settlement Commissioner is of opinion that a person is refusing, or neglecting, or has refused or neglected, to pay any sum due under this Act, he may, after giving such person an opportunity of being heard, by order in writing stating the grounds therefor, direct that the provisions of Sub-section (1) shall not apply to him, and thereupon such person shall cease to be entitled to the exemption conferred by that sub-section." provides for exemption from arrest under certain circumstances. It may be mentioned that at the time when these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be deducted from the amount of compensation in the order of priority mentioned below: (i) public dues; (ii) the amount, if any, referred to in Clause (a) of Rule 13; (iii) the amount, if any, referred to in Clause (b) of Rule 13." Chapter V deals with payment o£ compensation by transfer of acquired evacuee properties. Chapter VIII deals with compensation in respect of verified claims for land other than agricultural land in the States of Punjab and Patiala and East Punjab States Union. (See Rule 69)." 11. These loans for the recovery of which the petitioners are sought to be arrested are dealt with In Ch. X. Under Rule 71, the allottee (i.e., the land allottee) has to file a declaration in the form specified in Appendix XVI in the office of the Settlement Officer or before the authorised officer in the village concerned on the date and place notified by publication of a notice in the village concerned. Appendix XVI requires information regarding rural loans received. In connection with the rural loans the following particulars are required: (i) kind of loan; (ii) name of tahsil from where loan was taken; (iii) amount actually taken; (iv) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) a report on the public dues payable by the allottee (ii) a recommendation whether having regard to all the circumstances of the case, the allotment may be made permanent, cancelled or varied: Provided that if it appears to the Settlement Officer that the public dues owing from the allottee do not exceed two thirds of the compensation payable to him in respect of property other than agricultural land he shall pass an order transfering the property allotted to the allottee in permanent ownership as compensation and shall issue to him a sanad in the form specified in Appendix XVII or XVIII as the case may be with such modification, as may be necessary in the circumstances of any particular case granting him such rights. (2) The compensation application shall be disposed of by the Settlement Commissioner according to the procedure prescribed in Chapters, II, III, and IV of these rules. (3) The Settlement Commissioner may after considering the recommendations of the Settlement Officer, direct the Settlement Officer; (i) to transfer to the allottee the property allotted to him in permanent ownership and issue a sanad to him in the form specified in Appendix XVII or XVIII a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... land revenue and any transfer of the said property shall not be valid unless the amount of the said loan together with the interest, if any, and the said dues have been paid in full." The other provisions are not necessary to be noticed for the purposes of these petitions. 12. It would, therefore, appear from the entire scheme of the Act and the Rules made thereunder that the loans granted by the Central or the State Government before the conference of permanent rights in land to the allottees or before the payment of compensation to the holders of verified claims are treated as sums due under the Act. It is only on this basis that a provision for their recovery could be made under the Act. This was necessary as a measure of relief to the displaced persons as well as for the purpose of safeguarding the public revenues. These loans have been made a first charge I On the land allotted to them and are to be adjusted towards the amount of compensation to be paid on the verified claims. It cannot be denied that recovery by instalments of loans from the displaced persons is a measure of relief for their rehabilitation and so also the immunity from arrest. Therefore, it must be he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss distinct ideas. At times, it signifies a simple indebtedness, without reference to the time of payment. At other times it shows that the day of payment or tender is passed." Page 449. "The word 'due' is only equivalent to 'payable'." Page 450. "The word 'due' considered by itself has many definitions. Bouvier defines it, in its first and broadest sense, as that which is just and proper and in another and less general sense, as what ought to be paid; what may be demanded." 14. It would, therefore, be noticed that the word 'due' has not one fixed meaning and has various shades of meaning. It is a well settled proposition of law that where a word is used in an Act, which is capable of various shades of meaning, the particular meaning to be attached must be arrived at by reference to the scheme of the Act Or of the section in particular taken as a whole. See in this connection, Nihal Singh v. Siri Ram AIR 1939 Lah 388 and Manohar Lal v. Emperor AIR 1943 Lah 1. There is another rule of construction, which will apply to the facts of the present case. It is to the effect that it is open to the Court, in cases where there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty under the Act. According to the argument of the State counsel, they would be sums due under the Administration of Evacuee Property Act and Section 21 only makes them recoverable under the Act. But then, the learned counsel did not contend that what is covered by Section 21 is not a sum recoverable under the Act. He argued that Section 30 has relation only to Section 21 and sums outside Section 21 would be outside Section 30. How this would be so, I have not been able to appreciate. As I look at the matter there is no difference between sums contemplated by Section 21 and those by Section 10 of the Act and the Rules. Therefore, taking the argument of the learned counsel for the State to its logical conclusion even the sums due under Section 21 excepting the sums due after the formation of compensation pool would not fall within the ambit of Section 30(1) of the Act. But as I have already said, the words 'payable', 'due' and 'recoverable' have been used in the Act synonymously and therefore any sums recoverable or payable under the Act would be sums due 'under the Act. 1 6 . The argument of the learned counsel for the State also leads to an anomaly be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act, for the Rules have by reason of the provisions of Section 40 become part of the Act. In this connection, reference may usefully be made to the decision of the House of Lords in Institute of Patent Agents v. Joseph Lockwood 1894 AC 347 The learned State counsel did not and could not contest that the Rules made were either outside the scope of the Act or are, in any way, ultra vires the Act. 1 9 . I may now advert to the two contradictory views o£ this Court as to the applicability of Section 30 qua displaced persons by Dua J. and Bishan Narain J. In the decision by Dua J. in Prithi Singh v. Punjab Government Section 30 of the Act was applied to the case of a displaced person and proceedings for his arrest were quashed under Article 226 of the Constitution; while there are two decisions to the contrary by Bishan Narain J. one in C. W. No. 114/D of 1955 and the other in C. W. 216/D of 1955, and the latter decision is based on the earlier decision in C. W. No. 114/D of 1955. The earlier decision is not available and it is not possible to examine the reasoning of the learned Judge. So far as the decision of Dua J. is concerned, it is also not helpful in determining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld, namely, the grant of agricultural loans, which will include the provision for arrest of the debtor for the recovery thereof, will, to the extent, it forbids arrest, be repugnant, and therefore ultra vires. Thus the State Law which permits the arrest of the petitioners for recovery of such loans would still hold the field. On this basis, it is contended that the proceedings for arrest are quite legal. 21. At this stage it will be proper to examine the position of the 1883 and 1884 Acts vis-a-vis the Act. The aforesaid Acts are not and cannot be said to be State laws. As to what is a State law, reference may be made to Article 246 of the Constitution. The aforesaid Acts were Governor General's Acts and have been kept alive by the subsequent Constitution Acts. They are what is known as "Existing Indian Laws". See Clause (10) Article 366 of the Constitution of India, which is in these terms:-- "(10) 'existing law' means any law, Ordinance, order, bye-law, rule or regulation passed or made before the commencement of this Constitution by any Legislature, authority or person having power to make such a law, Ordinance, order, bye-law, rule or regulation;& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstitution of India must be repelled. 23. The learned counsel further contended that the field being occupied by the State law, the Central Act so far as it comes in conflict with that occupied field would be ultra vires and the State law must prevail in preference to the Central law. This argument is not sound. In the first instance, there is no State law, which occupies the field. The field is only occupied by an 'Existing Indian Law' and in a competition between the Central law and the 'Existing Indian Law' the Central law must prevail. Even assuming that the field is occupied by a State law, I am not prepared to accept the contention that in the event of a conflict between a State law and a Central law, both laws being within the respective competence of each legislature and the encroachment being merely incidental or ancillary, the State law must yield to the Central law. The doctrine of occupied field does not apply so as to give superior authority to a State law as against a Union law even though the provisions of the Union law relate to a matter in the State List. In this connection, reference may be made to Article 246 of the Constitution. Once it is hel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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