TMI Blog1968 (2) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... Committee. An appeal was taken to the Letters Patent Bench but this was dismissed in limine. Two appeals have been filed against this judgment, one by the Union of India and its officers who are interested only in the question of the vires of the section, and the other by Lachhmandas and others to whom the shops in dispute have been transferred. 2 . The relevant facts may be stated shortly. The Nawab of Mamdot became an evacuee fin 1947 on the partition of the country and his property was taken over by the Custodian as evacuee property. In 1949, the District Rent and Managing Officer treated five shops, situated in Chowk Kalan, Jalalabad, as belonging to the Nawab of Mamdot and began to recover the rent of the shops from the tenants. The Municipal Committee protested and lengthy correspondence ensued between the Municipal Committee and the Custodian. Eventually the Municipal Committee filed a Civil Suit in 1958 against the Union of India for a declaration that the said shops were their own property and not evacuee property. Ultimately, the Trial Court, by order dated January 8, 1962, made a reference to the Custodian General for determining the question whether the shops in dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t violate Article 31(2) of the Constitution. As we have come to the conclusion that Section 20B violates Article 31(2) of the Constitution, we need not consider whether the reasoning of the High Court is correct regarding the section being ultra vires Articles 14 or 19(1)(f). Section 20B is in the following terms : 20B. (1) Where any person is entitled to the restoration of any property by virtue of an order made by the Custodian-General under Section 27 of the Administration of Evacuee Property Act, 1950, or by the competent officer or the appellate officer under the Evacuee Interest Separation Act, 1951, and the Central Government is of opinion that it is not expedient or practicable to restore the whole or any part of such property to that person by reason of the property or part thereof being in occupation of a displaced person or otherwise, then, notwithstanding anything contained in the said Acts or this Act, it shall be lawful for the Central Government :-- (a) to transfer to that person in lieu of the property to be restored or any part thereof, any immovable property in the compensation pool or any part thereof, being in the opinion of the Central Government as near ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this section formed part of the compensation pool. Cash balances lying with the Custodian and certain other contributions and assets were also thrown in the compensation pool. Elaborate rules were framed under the Compensation Act for the purpose of paying compensation to displaced persons out of the compensation pool. One of the ways of paying compensation was transfer of property. 9. It is not disputed that Lachhman Dass and others were granted sanads under the Compensation Act and thus purported to acquire ownership rights in the shops. 10. The objects and reasons for enacting Section 20B were given as follows : Instances have come to notice where some properties were wrongly declared to be evacuee property and they were also acquired. In such cases, the Custodian-General is empowered under Section 27 of the Administration of Evacuee Property Act, 1950 to restore such property to the non-evacuee owner. Similarly, a competent officer has also power under the Evacuee Interest Separation Act, 1951, to declare a share in a property to be nonevacuee after the whole of it has been declared to be evacuee property and has been acquired. It is not sometimes possible to restore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the High Court was not right in holding that the section did not violate Article 31(2). of the Constitution. Article 31(2) provides for two things; (1) the acquisition or requisition should be for a public purpose; and (2) the law should provide for compensation and either it should fix the amount of compensation or specify the principles on which and the manner in which the compensation has to be determined or given. 13. In our view, Section 20B violates both these provisions of the article. There is no doubt that to provide for rehabilitation of displaced persons was a public purpose but it does not serve any public purpose to provide that if a displaced person is in occupation of somebody's property he should not be given other property because it will not be expedient or practicable to do so. A public purpose may be served if it had been provided that a displaced person may not be ousted because his business would be ruined or that he would be completely thrown on the street, but to provide in the section that if the Central Government does not think it expedient or practicable for its own convenience or for the convenience of a lessee or licensee who is not a displ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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