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  • section 26(2) or section 26(3) of the Administration of Evacuee Property Act.
  • section 26(2) of the Administration of Evacuee Property Act
  • Code of Civil Procedure wherein Order 47, rule 1,
  • Order 47 rule 1, of the Code of Civil Procedure.
  • Order 47, rule 1,
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Citation Codes
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citation codes
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Advocates
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  • section 26(2) or section 26(3) of the Administration of Evacuee Property Act.
  • section 26(2) of the Administration of Evacuee Property Act
  • Code of Civil Procedure wherein Order 47, rule 1,
  • Order 47 rule 1, of the Code of Civil Procedure.
  • Order 47, rule 1,
Smart Summary

Judgment Summary — Ramaswami and Sinha, JJ.

Factual and Procedural Background

On 12 August 1949 the petitioners purchased a house (holding no. 9b, ward no. 3, Gaya town) from Mosammat Bibi Akbari Khatoon and her sister Mosammat Bibi Asghari Khatoon. The sale-deed as to Bibi Asghari Khatoon was executed on her behalf by Maulvi Abdul Rashid under a general power of attorney dated 7 July 1949.

The Bihar Administration of Evacuee Property Ordinance, 1949 came into force on 21 June 1949. The Provincial Government issued a notification under section 26 on 24 August 1949 restricting transfers of certain Muslim-owned immovable properties without prior written approval.

The petitioners applied to the Custodian for confirmation of the sale with respect to Bibi Asghari Khatoon's share on 21 September 1949; that application was rejected by a Deputy Custodian under a mistaken impression. Bibi Asghari Khatoon was declared an evacuee on 29 September 1949. A fresh application was made on 7 October 1949; the Deputy Custodian Mr. S.P. Singh refused confirmation on grounds that the sale-deed was executed after her going to Pakistan and that a second petition was not maintainable.

On appeal the Custodian, Mr. S.N. Ray, by order dated 29 September 1950, set aside the Deputy Custodian's order and confirmed the sale in respect of Bibi Asghari Khatoon's eight annas share, stating the transaction was bona fide and for valuable consideration.

More than two years later, on 10 December 1952, Mr. R.P. Singh (who had become Custodian) issued a notice to one petitioner to show cause why Mr. S.N. Ray's order should not be reviewed; no notice was given to petitioner Bibi Nazma Khatoon. After hearing one petitioner (on 18 December 1952) Mr. R.P. Singh set aside Mr. S.N. Ray's order on the ground that the sale was mala fide.

The present applications challenge whether Mr. R.P. Singh acted in excess of jurisdiction in setting aside the earlier order and seek quashing of the Custodian's review order dated 18 December 1952.

Legal Issues Presented

  1. Whether the Custodian, Mr. R.P. Singh, acted in excess of his jurisdiction in setting aside the order of his predecessor Mr. S.N. Ray dated 29 September 1950.
  2. How section 26(2) of the Administration of Evacuee Property Act should be interpreted — whether the power of review is unrestricted or limited (for instance, to cases of discovery of new evidence or mistake apparent on the face of the record).
  3. Whether the failure to give notice to Bibi Nazma Khatoon vitiated the Custodian's proceedings and deprived the Custodian of jurisdiction.
  4. Whether the High Court's discretionary writ jurisdiction under Article 226 is available where an alternative remedy by way of revision or appeal exists, particularly when a fundamental principle of justice is claimed to have been violated.

Arguments of the Parties

Appellants / Petitioners (Mr. Baldeva Sahay)

  • Contended that on reconsideration of the same material, Mr. R.P. Singh had no jurisdiction to review and set aside Mr. S.N. Ray's order.
  • Argued that section 26(2) confers a power of review analogous to the power of review under Order 47, rule 1 of the Code of Civil Procedure — i.e., limited to cases involving discovery of new and important matter or evidence, or mistake or error apparent on the face of record, or analogous reasons.
  • Pointed out that Mr. S.N. Ray's confirmation rested on payment of full consideration in presence of the Sub-Registrar, production of passbooks, an independent local inquiry by Mr. B.B. Singh (Additional District Magistrate) finding the transaction bona fide, and that parties were unrelated — i.e., no fresh material justified reopening.
  • Contended that no notice was given to Bibi Nazma Khatoon, and that failure to give notice violated the audi alteram partem principle, rendering the Custodian's review order void for want of jurisdiction.

Respondent / Opposite Party (Advocate General)

  • Contended that the power of review conferred by section 26(2) was unrestricted and could be exercised even without fresh material or any mistake apparent on the record — i.e., the word "review" should be given its plain or grammatical meaning.
  • Relied implicitly on the availability of revision or appeal and argued for the Custodian's broad authority to review earlier orders.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Chhajju Ram v. Neki (Judicial Committee) Illustrated that the power of review given to Indian Courts differs from the more restricted English power of review. Used to support the proposition that "review" in the Indian context has a recognised legal significance and should be construed in line with established Indian practice.
Charles Bright and Co. v. Sellar Discussed the scope and history of the power of review in English Courts. Relied upon to show the English position and to contrast it with the Indian practice when construing "review".
L.P.E Pugh v. Ashutosh Sen Authority for the rule of construction that when the legislature uses a term with known legal significance, it is to be taken that the legislature attached that legal meaning. Applied to justify construing "review" in section 26(2) with the same legal meaning as in Order 47, rule 1 of the Code of Civil Procedure.
Capel v. Child Illustrates the audi alteram partem principle: that a party affected by an order must have an opportunity to be heard; failure to do so may render proceedings void. Invoked to support the conclusion that failure to give notice to Bibi Nazma Khatoon made the Custodian's review order void for want of jurisdiction.
King v. North Scrutton Explains that the existence of a right of appeal does not necessarily preclude relief by prohibition/certiorari where the error involves violation of fundamental principles of justice. Used to justify granting certiorari despite the availability of revision or appeal, because the petitioners alleged a jurisdictional breach of a fundamental principle (failure to give notice).
White v. Steele (Referred within the King v. North Scrutton discussion) Supports that a right of appeal is not necessarily fatal to a claim for prohibition. Cited as part of the King v. North Scrutton authorities to show exceptions to the general rule that alternative remedies bar writs.
Martin v. Mackonochie (Referred within the King v. North Scrutton discussion) Distinguishes errors appropriate for appeal from errors that are so vicious as to violate fundamental justice and justify prohibition. Applied as part of the line of authority supporting availability of writs where conduct involves violation of fundamental justice.
Ex parte Smyth (Referred within the King v. North Scrutton discussion) Used to exemplify orders that are "contrary to the general laws of the land". Part of the authorities relied upon to establish the exception to the rule barring writs when an appeal exists.

Court's Reasoning and Analysis

The Court analyzed two primary strands: statutory interpretation of the power of review conferred by section 26(2) of the Administration of Evacuee Property Act, and the procedural fairness (audi alteram partem) of the Custodian's review proceedings.

On statutory interpretation the Court observed that Chapter V of the Act is titled "Appeals, Review and Revision," indicating that review is a distinct, regulated mode of procedure and should not be read in a purely grammatical or unrestricted sense. The Court turned to the Code of Civil Procedure — specifically Order 47, rule 1 — which prescribes the recognized grounds for review (discovery of new and important matter or evidence, mistake or error apparent on the face of the record, or any other sufficient reason). The Court cited authorities (including Chhajju Ram v. Neki, Charles Bright & Co. v. Sellar, and L.P.E. Pugh v. Ashutosh Sen) to support the proposition that when a legislature uses a term with an established legal meaning ("review"), that established meaning is to be applied.

Applying that reasoning, the Court concluded that section 26(2)'s reference to "review" must be construed to have the same legal meaning as in Order 47, rule 1 of the Code of Civil Procedure. Consequently, the Custodian's power of review under section 26(2) is not unrestricted; it requires either fresh material/new evidence, an error apparent on the face of the record, or analogous grounds to justify reopening an earlier order.

The Court then applied that legal standard to the facts: Mr. R.P. Singh set aside Mr. S.N. Ray's order based on reconsideration of the same materials and reached a different factual conclusion (that the sale was mala fide). The Court found there was no new material or mistake apparent on the face of the record before Mr. R.P. Singh that would justify review under the limited scope it identified; therefore, Mr. R.P. Singh lacked jurisdiction to reopen the matter on that basis.

Independently, the Court examined procedural fairness. It was conceded that no notice was given to Bibi Nazma Khatoon, a party affected by the Custodian's review proceeding. Applying the fundamental principle of audi alteram partem and illustrative authority (Capel v. Child), the Court held that failure to give notice deprived the Custodian's proceeding of jurisdiction and rendered the review order invalid.

Finally, the Court addressed whether Article 226 could be invoked despite the availability of alternative remedies (revision/appeal). It reiterated the general rule that writs will not lie when an alternative statutory remedy exists, but observed the established exception: where the alleged want of jurisdiction is based on violation of a fundamental principle of justice, the existence of an alternative remedy is not decisive. The Court relied on King v. North Scrutton and its authorities to conclude the present case fell within this exception because of the procedural breach (lack of notice).

Holding and Implications

Holding: The Court made the rule absolute and granted a writ of certiorari quashing the Custodian Mr. R.P. Singh's order dated 18 December 1952.

Implications:

  • Direct effect on the parties: The Custodian's review order of 18 December 1952 setting aside Mr. S.N. Ray's confirmation of the sale was quashed; the petitioners succeeded in obtaining certiorari.
  • Statutory interpretation: The Court held that the power of review under section 26(2) of the Administration of Evacuee Property Act is to be construed in line with the recognized legal meaning of "review" as reflected in Order 47, rule 1 of the Code of Civil Procedure — i.e., not an unrestricted power to re-decide on the same material but limited to circumstances such as discovery of new evidence or mistake apparent on the face of the record (or analogous reasons).
  • Procedural fairness: The decision reinforces that failure to accord notice and an opportunity to be heard (audi alteram partem) to a party affected by an order can render the proceeding and resultant order void for want of jurisdiction.
  • Remedies and writ jurisdiction: The Court confirmed that Article 226 may be invoked notwithstanding the existence of an alternative remedy by appeal or revision where the impugned action involves violation of a fundamental principle of justice; the present case fell within that exception.
  • Costs: The Court ordered that there would be no order as to costs of hearing these applications.

Disposition: Rule made absolute. Writ of certiorari granted; order of the Custodian dated 18 December 1952 quashed. No order as to costs.

    Nazma Khatoon v. Custodian, Evacuee Properties, Bihar

    Ramaswami and Sinha, JJ.:— In these two applications, which were heard together, a common question of law arises, namely, whether the Custodian, Mr. R.P Singh acted in excess of his jurisdiction in setting aside the order of his predecessor, Mr. S.N Ray, dated the 29th of September, 1950.

    On the 12th of August, 1949, the petitioners purchased a house, namely, holding no. 9b of ward no. 3 of Gaya town from Mosammat Bibi Akbari Khatoon and her sister Mosammat Bibi Asghari Khatoon. The sale deed was executed on behalf of Bibi Asghari Khatoon by Maulvi Abdul Rashid, her father-in-law, who had a general power of attorney on her behalf. The power of attorney was executed by Bibi Asghari Khatoon on the 7th of July, 1949. It is material to state that on the 21st of June, 1949, the Bihar Administration of Evacuee Property Ordinance, 1949, came into force. Section 25 of the Ordinance imposed certain restrictions on the right of transfer of evacuee properties made on behalf of evacuees after the 31st of March, 1947, and section 26 of the Ordinance granted power to the Provincial Government to prohibit transfer of immovable properties or any part thereof in certain specified areas. On the 24th of August, 1949, a notification was published by the Provincial Government, under section 26 of the Ordinance, prohibiting, transfer of any immovable property belonging to a Muslim and situated in the Province but not in the rural areas of Chota Nagpur for a period of three months except with the previous approval in writing of the Collector of the district in which the property or the greater part thereof was situated. On the 21st of September, 1949, the petitioners applied, under section 25 of the Ordinance, to the Custodian for confirmation of the sale of the house so far as the share of Bibi Asghari Khatoon was concerned. The application was rejected by the Deputy Custodian, Mr. Aikat, who was under the wrong impression that the application was for permission to sell the interest of Bibi Asghari Khatoon. On the 29th of September, 1949, Mosammat Bibi Asghari Khatoon was declared to be an evacuee. A fresh application was made on the 7th of October, 1949, by the petitioners for confirmation of the sale. Mr. S.P Singh who was the Deputy Custodian at the time refused confirmation of the sale on the ground that the sale-deed was executed after Bibi Asghari Khatoon had gone over to Pakistan. Mr. S.P Singh also considered that, the earlier petition having been rejected by the Deputy Custodian, a second petition was not maintainable on the same point. An appeal was taken on behalf of the petitioners to the Custodian, who, by his order dated the 29th of September, 1950, set aside the order of Mr. S.P Singh and confirmed the sale so far as the eight annas share of Bibi Asghari Khatoon was concerned. In course of his order, the Custodian, Mr. S.N Ray, stated:

    “The principles for consideration in the matter of confirming a transaction are whether the transaction is bona fide and is for valuable consideration. In the present case Rs. 25,000 in cash which is certainly a valuable consideration was paid as the consideration money in presence of the Sub-Registrar before whom the sale-deed was executed and registered. The appellant has also produced Pass Books which support the fact of payment. Vendors and vendees are admittedly not related. Mr. B.B Singh, Additional District Magistrate, Gaya, who was also acting as District Magistrate for some time made a personal enquiry into the matter and by his order dated the 24th October 1949 he held this transaction as bona fide. In view of the above facts I am of opinion that the transaction in question was bona fide and was for valuable consideration.”

    On the 10th of December, 1952, after lapse of more than two years, Mr. R.P Singh, who had become Custodian, issued a notice to one of the petitioners to show cause why the order of his predecessor, Mr. S.N Ray, should not be reviewed, and the order of confirmation of the sale should not be set aside. It is important to state that no notice was given to the petitioner Bibi Nazma Khatoon. The other petitioner appeared before the Custodian on the 18th of December; 1952, and, after hearing his lawyer Mr. R.P Singh set aside the order of his predecessor on the ground that the transaction of sale was mala fide.

    In this state of facts, the question arises whether Mr. R.P Singh acted in excess of his jurisdiction in setting aside the order of his predecessor dated the 29th of September, 1950. The argument of Mr. Baldeva Sahay, who appears on behalf of the petitioners, is that, upon a reconsideration of the same material, Mr. R.P Singh had no jurisdiction to review and set aside the order of Mr. S.N Ray. The objection taken by learned Counsel is that the power of review conferred by section 26(2) of the Administration of Evacuee Property Act cannot be exercised by the Custodian unless there is discovery of new and important matter or evidence, or there is some mistake or error apparent on the face of the record or for any other analogous reason. The contention on behalf of the petitioners is that Mr. R.P Singh had not acted on any new and fresh matter or evidence, but considered the very same materials which were the basis of the order of his predecessor, Mr. S.N Ray, dated the 29th of September, 1950. On a reconsideration of the same material, Mr. R.P Singh had come to a different conclusion, namely, that the transaction of sale on behalf of Bibi Asghari Khatoon was a transaction vitiated by mala fides. It was pointed out by the learned Counsel that Mr. S.N Ray based his order on the ground that there was full consideration paid for the transaction and that the consideration money was paid before the Sub-Registrar at the time of the registration of the sale-deed and further that the petitioners had produced evidence to support the fact of payment. Mr. S.N Ray referred to the circumstance that Mr. B.B Singh, Additional District Magistrate of Gaya, had made personal (enquiry into the matter and had concluded that the transaction was bona fide. There was also the admitted fact that the parties to the transaction were not related in any way. In view of these circumstances, Mr. S.N Ray held that the transaction of, sale was bona fide, and for valuable consideration and the transaction must, therefore, be confirmed. By his order dated the 18th of December, 1952, Mr. R.P Singh has set aside the order of Mr. S.N Ray but there was no fresh material before Mr. R.P Singh upon which he could reach the finding that the transaction was mala fide. The argument of Mr. Baldeva Sahay is that, upon the same materials, Mr. R.P Singh was not entitled to re-open the order of his predecessor and to come to a different conclusion of fact. The opposite view is maintained by the Advocate General who contended that the power of review was unrestricted and the Custodian was entitled to exercise the power of review even when there was no fresh material or even when there was no mistake or error apparent on the face of the record. In other words, the argument is that the expression “review” must be construed in the plain or grammatical sense. The question at issue depends upon the true interpretation of section 26(2) of the Administration of Evacuee Property Act which states:

    “The Custodian, Additional Custodian or Authorised Deputy Custodian (but not a Deputy or an Assistant Custodian) may, after giving notice to the parties concerned, review his own order.”

    Section 26(3) confers the power of review in case of a declaration made with respect to an intending evacuee. Section 26(3) states,

    “The Custodian, Additional Custodian or Authorised Deputy Custodian may from time to time, on application made to him in this behalf, review any declaration made by him in relation to any intending evacuee:”.

    The conditions in which the power of review should be exercised are not expressly mentioned in section 26(2) or section 26(3) of the Administration of Evacuee Property Act. But there are important considerations which support the view that the power of review is not unrestricted. Chapter V of the Administration of Evacuee Property Act is entitled “Appeals, Review and Revision”. There are provisions in this chapter which relate to these three modes of proceeding. The statute, therefore, contemplates a procedure by way of review by the Court which has already given judgment to be different from a procedure by way of appeal or revision to a different Court. The same distinction appears in the Code of Civil Procedure wherein Order 47, rule 1, prescribes in what circumstances an application for review of judgment may be made. Order 47, rule 1, provides that an application for review may be made if there is discovery of new and important matter or evidence or if there is mistake or error apparent on the face of the record or for any other sufficient reason. It has been pointed out by the Judicial Committee in Chhajju Ram v. Neki that the power of review given to the Indian Courts was different from the very restricted power of review given to the English Courts. There an application for review can, in certain circumstances, be entertained if there is error of law appearing in the body of the decree or when there is any fresh or new matter discovered after the passing of the decree. The scope of the power of review in English Courts has been discussed in Charles Bright and Co. v. Sellar where the history of procedure in England has been explained. It is manifest, therefore, that the expression “review” has a well known, legal significane, and section 26(2) of the Administration of Evacuee Property Act must be construed in the context and background of the Code of Civil Procedure where the same expression has been used. It is a familiar rule of construction that when the legislature has deliberately used a term which has a known legal significance in law, it must be taken that the legislature has attached to that term that known legal significance [See L.P.E Pugh v. Ashutosh Sen]. In our opinion, the expression “review” used in section 26(2) of the Administration of Evacuee Property Act must be construed not in a grammatical sense but it must be construed to have the same legal meaning as in Order 47 rule 1, of the Code of Civil Procedure. If this view is right, it follows that Mr. R.P Singh had no jurisdiction to review the order of his predecessor, Mr. S.N Ray, in absence of any fresh material or in the absence of any mistake or error apparent on the face of the record. In this view of the matter, the petitioners would be entitled to a writ of certiorari for quashing the order of Mr. R.P Singh dated the 18th of December, 1952, on the ground that he acted in excess of his jurisdiction.

    There is another important ground on which the order of Mr. R.P Singh has been impeached. It was alleged on behalf of the petitioners that no notice of the proceeding was given to Bibi Nazma Khatoon. In absence of such notice, the contention on behalf of the petitioners is that the entire proceeding initiated by Mr. R.P Singh suffers from want of jurisdiction. It is conceded on behalf of the opposite party that no notice was given to Bibi Nazma Khatoon. It is a fundamental principle of justice that the party against whom a judgment or order is to operate should have an opportunity of being heard. The principle is embodied in the maxim Audi Alteram Partem. That is the general rule, and a breach of this rule affects the jurisdiction of the Court or Tribunal which passes final order. To illustrate the rule, reference may be made, for instance, to Capel v. Child in which a complaint was made to the Bishop of London that the incumbent of a parish in his diocese had neglected his duties. The Bishop, without calling upon him to show cause, issued a requisition ordering him to nominate a curate at a certain stipend to assist in the duties of the parish. The incumbent ignored the order whereupon the Bishop appointed a curate, and, upon the incumbent neglecting to pay the stipend, directed sequestration. The incumbent brought an action against the sequestrators for fees detained, and as a special case stated for the opinion of the Court of Exchequer it was held that the requisition and the proceeding founded on it were void. In the present case, therefore the order of review made by Mr. R.P Singh must be held to be without jurisdiction on the ground that no notice was served upon Bibi Nazma Khatoon who had purchased a share of the house in question.

    In the course of argument, the question was much discussed whether the power of the High Court under Article 226 of the Constitution can be invoked in a case where the petitioner has an alternative remedy by way of revision or appeal. It was pointed but on behalf of the opposite party that the petitioners had filed an application for revision before the Custodian-General against the order of review. As a general rule, the writ of certiorari or prohibition will not lie when there is an alternative procedure by way of appeal or revision provided in the statute. But there is an exception in a case where the want of jurisdiction, complained of is based upon the violation of some fundamental principle of justice. In such an exceptional case, the existence of a remedy by way of appeal or revision is no answer to an application asking for a writ of certiorari or prohibition. In the King v. North Scrutton, L.J States:

    “The other objection raised by the Divisional Court was that there was a right of appeal, and that where an appeal lay there could be no prohibition. But the case to which Atkin, L.J has referred us. White v. Steele [12 C.B (N.S) 383] appears to be a distinct answer to that: The Judgment of Wiles, J. showed that in the opinion of a very strong Court the fact of there being a right of appeal was not necessarily fatal to the claim for prohibition. In Martin v. Mackonochie (4 Q.B.D 697, 732). Thesiger, L.J dealing with this question, said that error of the Judge in the conduct of the suit, in the pronouncement of the sentence, or in the means of its enforcement is matter in respect of which appeal and not prohibition would be the proper remedy unless his error involves the doing of something which, in the words of Littledale, J. in Ex parte Smyth (3 Ad. & E. 719) is contrary to the general laws of the land or, to use the language of Lush, J. in the Court below, is so vicious as to violate some fundamental principle of justice. And as I have already said, to order a man to pay what is in the nature of a penalty for an offence without first giving him notice that an application for such an order is going to be made, is both contrary to the general law of the land, and is so vicious as to violate a fundamental principle of justice. The case therefore falls within the exceptions to the general rule.”

    In view of these considerations, we make the rules absolute and grant a writ of certiorari quashing the, order of the Custodian, Mr. R.P Singh, dated the 18th of December, 1952. There will be no order as to costs of hearing of these applications.

    S.H
    Rule made absolute.

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    Nazma Khatoon v. Custodian, Evacuee Properties, Bihar
    (Jul 16, 1953)