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Smart Summary

Date of Filing:

January 24, 1949

Facts:

On January 24, 1949, the petitioner filed a suit against Timmapuri and his partner for the recovery of a sum amounting to Rs. 87,864-10-9, which was claimed to be due based on khata dealings. Following the service of notice to the defendants, the petitioner's advocate informed the court that the first defendant, Timmapuri, was classified as an evacuee under applicable laws. Consequently, the court issued an order on June 29, 1949, to notify the Custodian of Evacuee Property in Hyderabad State about the claim, allowing the Custodian the opportunity to either represent the evacuee or apply to be made a party to the suit prior to the issuance of any decree against Timmapuri.

Legal Issues:

1. Whether the Custodian of Evacuee Property has the authority to settle claims against evacuees under the Administration of Evacuee Property Act, 1950.

2. The implications of amendments made by Central Act 91 of 1956 on the rights of creditors against evacuee property.

Arguments:

The petitioner contends that the Custodian cannot rely on a decision by the Ministry of Rehabilitation, Government of India, which arbitrarily denies payments of third-party claims. The petitioner cites Section 10 of the Administration of Evacuee Property Act, 1950, to support the argument that the Custodian must consider claims made against evacuee property.

In contrast, the Custodian argues that the Act does not provide a mechanism for the payment of debts owed to individuals from the evacuee's property. The Custodian emphasizes that the amendments introduced by Central Act 91 of 1956 do not have retrospective effect, thereby maintaining that the petitioner’s right to claim against the evacuee property remains intact under the law as it existed on September 29, 1952.

Legal Principles:

  • The principle of non-retroactivity of statutory amendments unless explicitly stated.
  • The right of a creditor to have their claims considered by the Custodian under the law in effect at the time of the claim.

Conclusion:

The court finds in favor of the petitioner, ruling that the petitioner is entitled to have his claim against the properties of the evacuee considered on its merits by the Custodian of Evacuee Property, Hyderabad, under the law as it stood on September 29, 1952. The respondent is ordered to pay the petitioner Rs. 100 towards costs. A writ is issued accordingly.

Costs:

Rs. 100 awarded to the petitioner.

    Vadapalli Sattaiah v. Custodian, Evacuee Property, Govt. Of A.P, Hyderabad .

    Ramachandra Rao, J.:— This is an application by the petitioner for the issue of a writ of mandamus or any other appropriate writ or directions calling upon the respondent-Custodian of Evacuee Property, State of Andhra Pradesh, Hyderabad to pay to the petitioner the amount decreed to him in O.S No. 32/1 of 1358 Fasli, on the file of the Sessions Court, Secunderabad against the judgment-debtor, Khwaja Hussain Timmapuri, an Evacuee from and out of the monies belonging to the said evacuee in the hands of the respondent.

    2. The facts are shortly as follows: On 24-1-1949, the petitioner herein filed a suit O.S No. 82/1 of 1358 Fasli in the Court of the Sessions Judge, Secunderabad against the said Timmapuri and his partner for the recovery of Rs. 87,864-10-9 being the amount due on the foot of khata dealings. The petitioner obtained an attachment before judgment of the said Timmapuri's house in Nallagutta, Secunderabad. After the defendant had been served with notice, the petitioner's Advocate brought it to the notice of the Court that the 1st defendant was an evacuee and that the Custodian of Evacuee property, Hyderabad State should be notified of his claim in the suit. The Court then passed an order on 29-6-1949 to the following effect:—

    “Now the regulation has come into force…… send a copy of the application to the Custodian to enable him to decide whether he wants to be a party to the suit or not.”

    3. On 7-8-1949, the Court granted two weeks' time to the Custodian directing him to send his attorney or Pleader to file his written statement and put forward his pleas. The Custodian having failed to take further steps in the matter, the Court passed an order to the following effect:—

    “The 1st defendant's advocate has no objection to a decree being Passed against the 1st defendant……..It is stated that information should go to the Custodian. It is, therefore, ordered that the Custodian be informed that the decree prayed for is against an evacuee which may be executed against the immoveable property of the evacuee. The Custodian may plead on behalf of the evacuee or apply to the Court to be made a party to the suit before the decree is passed against the 1st defendant. The Custodian may choose his course. If he intends to be a party to the suit, he should either be present in person or appear by an advocate or attorney and file the application. Otherwise, the decree will be passed. The Custodian may be informed that the court itself does not find it necessary to add him as a party to the suit. Call on 28-3-1349 Fasli, 28-9-1949”.

    4. The Custodian having failed to appear, the Court, after some adjournments, passed its final judgment on 31-12-1949 in the following terms:—

    “Parties through advocate present. No reply has been given by the Custodian's office. Plaintiffs advocate has withdrawn the suit against defendant No. 2 and prayed a decree of Rs. 35,719-4-3 against defendant No. 1. Defendant No. 1 admits claim and agreed that a decree should be passed against him.”

    5. The suit was accordingly decreed against the 1st defendant alone for a sum of Rs. 35,719-4-3 with costs and interest thereon at the rate of 4 per cent per annum from the date of decree to the date of realisation against defendant No. 1. Thereafter, on 27-10-1950, the Custodian of Evacuee Property, Hyderabad addressed the Court praying that orders may be passed vacating the order of attachment. On 29-10-1950 the court passed the following order:

    “In accordance with the provisions of the Evacuee Property Act, no attachment can be made on evacuee property, it is deemed to have been vacated. Then no further order would he required. There is no application before me now for execution against the immoveable property, which has been taken over by Custodian. This fact has already been stated in the application by the decree-holder which has been sent to the Custodian. A reply may be sent accordingly.”

    6. Subsequently, the Custodian sold the house of the evacuee. It appears that, on 8-11-1950, the petitioner withdrew from the Court a sum of Rs. 2,817 which was deposited into the Court, after notice to the Custodian, who notified that he had no objection to the withdrawal. Thereafter, he addressed letters to the Custodian to settle his claim under the decree and there being no response, he addressed the Custodian-General of Evacuee Property, India at Delhi. Ultimately, after some correspondence, the petitioner's claim was registered by the Custodian on 29-9-1952. Thereafter, the petitioner was addressing the Custodian of Evacuee Property at Hyderabad as also the Custodian General at Delhi for the due satisfaction of his claim.

    7. In fact, a letter D/- 14-5-55 from the Custodian General of Evacuee Property, India states that the matter regarding payment of the third party claims is under consideration of the Government of India and that the decision arrived at will be notified in the press for the information of the general public. Things went on like this and the petitioner was kept in suspense until he received a final communication D/- 8-1-58 from the office of the Custodian of Evacuee Property and Additional Settlement Commissioner, Andhra Pradesh to the following effect:

    “I am to say that the Ministry of Rehabilitation, Government of India, have decided not to make payment of Third party Claims so far registered and not to register any such claim in future.”

    8. Thus having received a final denial of his claim, the petitioner has filed this Writ Application for issue of a writ of mandamus.

    9. It is contended by Sri B.V Subrahmanyam, learned counsel for the petitioner that the Custodian had ample notice of the suit and that he did not choose to contest the same. It is argued that neither the Act nor the rules permit the Custodian to take shelter under an arbitrary decision of the Ministry of Rehabilitation, Government of India not to make payments of third party claims. He relies upon the provisions of Section 10 of the Administration of Evacuee Property Act, 1950 (Central Act No. XXXI of 1950) hereinafter referred to as the Act. The provisions of Sec. 10 so far as they are relevant, are as follows:

    “Sec. 10(1) Subject to the provisions of any rules that may be made in this behalf the Custodian may take such measures as he considers necessary or expedient for the purposes of securing, administering, preserving and managing any evacuee property and generally for the purpose of enabling him satisfactorily to discharge any of the duties imposed on him by or under this Act and may, for any such purpose as aforesaid, do all acts and incur all expenses necessary or incidental thereto.

    (2) Without prejudice to the generality of the provisions contained in sub-section (1), the Custodian may, for any of the purposes aforesaid, …………………

    (m) incur any expenditure, including the payment of taxes, duties, cesses, and rates to Government or to any local authority or of any amounts due to any employee of the evacuee or of any debt due by the evacuee to any person;

    (n) pay to the evacuee, or to any member of his family or to any other person as in the opinion of the Custodian is entitled thereto, any sums of money out of the funds in his possession.” Rule 22 of the Administration of Evacuee Property (Central) Rules is as follows:

    “22(1) Any person claiming the right to receive any payment from any evacuee or from the property of such evacuee, whether in repayment of any loan advanced or otherwise, may present a petition to the Custodian for registration of his claim. Such application shall be signed and verified by the claimant in the same manner as a plaint is required to be signed and verified under the Code of Civil Procedure, 1908.

    (2) On receipt of such application the Custodian where he finds the claim to be supported—

    (a) by a decree of competent court, or (b) by a registered deed executed and registered before 14th August, 1947, or by a registered deed executed and registered after such date but confirmed by the Custodian”, and if he is satisfied that the claim has not been satisfied either wholly or in part, may register the claim or such part thereof as has not yet been satisfied. He may also register a claim proved to have been ac-knowleged in writing by the evacuee himself before 1st March, 1947, on being satisfied that such claim has not been satisfied. In all other cases he shall direct the claimant to establish his claim in a Civil Court.

    (3) The mere registration of a claim shall not entitle the claimant to payment and the Custodian may for reasons to be recorded refuse payment.

    (4) No debt incurred by the evacuee before the property vested in the Custodian shall be paid without the sanction of the Central Government Or Custodian General.

    ……………………”

    10. The learned counsel contends that the petitioner's claim having been registered, he is entitled to the payment and that the Central Government has no right to pass a general order that no claims of third parties should be considered. The learned Government Pleader appearing for the Custodian contends that, by virtue of sec. 4 of the Administration of Evacuee Property (Amendment) Act, 1956 (Central Act 91 of 1956) which came into force on 22nd day of October, 1956, the words “or of any amounts due to any employee of the evacuee or any of the debts due by the evacuee to any person” have been deleted from clause (m) of sub-sec. (2) of Sec. 10 of the Act of 1950. In pursuance of this deletion, Rule 22 was also deleted on 20th February, 1957.

    11. It is therefore contended on behalf of the Custodian that there is no provision in the Act by which the Custodian can pay any debt due to any person. The argument, in substance, is that the debts of the evacuee to the third parties need not be paid on account of the amendment made by the Central Act 91 of 1956. This is how the learned Government Pleader justifies the notification of the Ministry of Rehabilitation Government of India, above quoted.

    12. It should however be noted that in the amendments made by the Central Act 91 of 1956 there is nothing to show that they are intended to operate retrospectively. It is a well established principle of law that no amendment to a statute is retrospective unless there is anything in the. Amending Act which either expressly or by necessary implication leads to that conclusion. This principle is embodied in sec. 6 of the General Clauses Act (X of 1897), which, so far as is relevant reads as follows:

    “Where this Act, or any Central Act or Regulation made after the commencement of this Act, repeals any enactment hitherto made or hereafter to be made, then, unless a different intention appears, the repeal shall not—

    (a) revive anything not in force or existing at the time at which the repeal takes effect; or

    (b)………………………

    (c) affect any right, privilege, obligation or liability acquired, accrued or incurred, under any-enactment so repealed; or

    (d) affect any penalty, forfeiture or punishment incurred in respect of any offence committed against any enactment so repealed; or

    (e) affect any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, any such penalty, forfeiture or punishment may be imposed as if the Repealing Act or Regulation had not been passed”

    13. If the principle enunciated in sec. 6 is borne in mind, the petitioner's right to have the decree debt due by the evacuee paid out to him has not been affected by the repeal. We, therefore, consider that the petitioner is entitled to have his claim against the properties of the evacuee considered on the merits by the Custodian of Evacuee Property, Hyderabad, under the law as existing on 29-9-1952. It therefore follows that the petitioner is entitled to the issue of a writ of mandamus directing the respondent to consider on merits the petitioner's claim for the payment of the decree debt in O.S No. 32/1 of 1358 Fasli dated 24th Khurdad, 1358 Fasli, on the file of the Divisional and Sessions Judge, Secunderabad in accordance with the provisions of the Administration of Evacuee Property Act, 1950 as unamended, and Rule 22 of the Rules as then in operation. The respondent will pay the petitioner Rs. 100/- towards costs.

    EE/L.F

    14. Writ issued.

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    Vadapalli Sattaiah v. Custodian, Evacuee Property, Govt. Of A.P, Hyderabad .
    (Dec 21, 1960)