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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Administration of Evacuee Property Act, 1950
  • Section 12, Subsection (2) of the Displaced Persons Act, 1954
  • Section 7 of the Act (year not specified)
  • Article 19(1)(f) of the Constitution
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • The Act (year not specified)
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Administration of Evacuee Property Act, 1950
  • Section 12, Subsection (2) of the Displaced Persons Act, 1954
  • Section 7 of the Act (year not specified)
  • Article 19(1)(f) of the Constitution
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • The Act (year not specified)
Smart Summary

Factual and Procedural Background

Two residential houses originally belonging to Khadim Ali were declared evacuee property by the Custodian on 10 January 1952 under Section 7 of the Administration of Evacuee Property Act, 1950. The declaration followed notices issued only to two of Khadim Ali’s sons—Nusrat Ali and Fateh Ali—in September 1951. Khadim Ali had died on 1 October 1950, leaving three sons and five daughters who, by succession, became co-owners of the houses. The remaining heirs—including Zafar Ali (son) and two daughters, the present petitioners—were never served with notice nor declared evacuees. After the Custodian took possession, Zafar Ali filed an appeal to the Custodian-General, which was dismissed as time-barred. The petitioners then approached the Supreme Court, alleging infringement of their fundamental right to property under Article 19(1)(f).

Legal Issues Presented

  1. Whether the Custodian could validly declare the entirety of the two houses evacuee property and thereby divest the petitioners’ interests without issuing them notice under Section 7 of the Act.
  2. Whether dismissal of Zafar Ali’s time-barred appeal to the Custodian-General precluded him from challenging the declaration in the Supreme Court.
  3. Whether subsequent acquisition proceedings under the Displaced Persons (Compensation and Rehabilitation) Act, 1954, extinguished the petitioners’ rights.

Arguments of the Parties

Petitioners' Arguments

  • They were deprived of their property rights without being served notice under Section 7, rendering the Custodian’s declaration void with respect to their shares.
  • They lacked timely knowledge of the proceedings and took steps, including an appeal, as soon as they became aware.
  • Non-issuance of notice violated their fundamental right to property under Article 19(1)(f).

Respondents' Arguments

  • Conceded that the female petitioners were unaffected but contended that Zafar Ali was bound by the Custodian-General’s quasi-judicial order dismissing his appeal, thereby barring this petition.
  • Asserted that a notification under Section 12(2) of the Displaced Persons Act, 1954, had extinguished all rights in the properties.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ebrahim Aboobaker v. Tek Chand Dolwani (1953) SCR 691 No person’s property can be declared evacuee property without prior notice under Section 7 of the Act. Used to affirm that absence of notice to the petitioners invalidated the Custodian’s declaration regarding their shares.

Court's Reasoning and Analysis

The Court reiterated the settled principle, confirmed in Ebrahim Aboobaker, that issuing a Section 7 notice is a jurisdictional prerequisite for declaring anyone’s property evacuee property. Because no notice was served on the petitioners, their interests never vested in the Custodian under Section 8.

Regarding the respondents’ contention that Zafar Ali was barred by the dismissal of his appeal, the Court observed:

  • Zafar Ali was not a party to the original Section 7 proceedings; hence no appeal was necessary.
  • The Custodian-General’s dismissal was purely on limitation grounds and involved no adjudication of rights.
  • A void order lacking jurisdiction cannot be validated by such an appeal.

The Court further held that Section 12(2) of the Displaced Persons Act, 1954, extinguishes only “evacuee” rights, a status the petitioners never possessed; thus the notification under that Act did not defeat their claims.

Holding and Implications

The petition is ALLOWED; the declaration dated 10 January 1952 is set aside insofar as it affected the petitioners’ interests.

As a result, the petitioners’ rights in the two houses remain intact, and the Custodian’s possession over their shares is unlawful. The decision reaffirms that failure to serve mandatory notice under Section 7 renders any consequent declaration ultra vires. No broader precedent was set beyond reinforcing this established procedural safeguard. No order as to costs was made.

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    Zafar Ali Shah (Dr) And Others v. Assistant Custodian Of Evacuee

    Sarkar, J. — This is a petition raising a question of violation of the fundamental right to hold property guaranteed by Article 19(1)(f) of the Constitution. It arises out of an order made under the Administration of Evacuee Property Act, 1950, declaring two houses to be evacuee property.

    2. What had happened was that sometime in September 1951, two notices were issued under Section 7 of the Act addressed respectively to Nusrat Ali and Fateh Ali, requiring them to show cause why they should not be declared evacuees and their properties, being the two houses in dispute, to be evacuee property. Neither of these two persons having appeared, a declaration was made by the Custodian on January 10, 1952, under that section that Nusrat Ali and Fateh Ali were evacuees and the houses were evacuee property. Upon such declaration the houses vested in the Custodian under the provision of Section 8 of the Act and he took possession of them. These houses were the property of one Khadim Ali who had never been declared an evacuee and had died on or about October 1, 1950, leaving three sons and five daughters, who thereupon became entitled to them in certain shares. Nusrat Ali and Fateh Ali were two of the sons of Khadim Ali. The petitioners are his other son and two of his daughters. No notice under Section 7 had at any time been issued to them nor were they ever declared to be evacuees. These facts are not in dispute.

    3. The petitioners contend that they have been wrongly deprived of their rights in the houses by the action of the Custodian. They say that for a long time they had no knowledge of the proceedings taken under the Act in respect of the houses and when they came to know of the order of the Custodian, they took various steps to protect their rights but were unsuccessful. One of such steps appears to have been an appeal preferred by the male petitioner on behalf of all the petitioners to the Custodian-General against the order of January 10, 1952. On this appeal being rejected, they moved this Court by the present petition.

    4. The question is whether the Custodian was entitled to declare the entirety of the two houses evacuee property and deprive the petitioners of their rights in them. It is well established and not disputed, that no property of any person can be declared to be evacuee property unless that person had first been given a notice under Section 7 of the Act: see Ebrahim Aboobaker v. Tek Chand Dolwani (1953) SCR 691. Admittedly, no such notice had been issued to the petitioners. Their interest in the houses, therefore, could not have vested in the Custodian.

    5. Learned counsel for the respondents, the officers concerned with evacuee properties, concedes that so far as the female petitioners were concerned, their interest could not in any way be affected by the order made under Section 7 of the Act. He however contends that the male petitioner, Zafar Ali, having filed the appeal to the Custodian-General against the order of January 10, 1952, he personally at least, is bound by the order dismissing the appeal, that order being a quasi-judicial decision. It is said that he cannot, therefore, maintain this petition.

    6. We do not think that this contention is well founded. Zafar Ali was not a party to the proceeding in which the order in dispute had been made. Strictly speaking, no appeal by him against that order lay or was necessary. Then again the appeal did not decide any question as to the right of Zafar Ali to the houses for, it was dismissed on the sole ground that it had been filed beyond the time prescribed for it. There was no judicial determination by the Custodian-General of any fact affecting Zafar Ali's right in the houses. If, as was conceded, Zafar Ali's share in the houses could not vest in the Custodian without due notice to him, then we are unable to appreciate how the position becomes different because Zafar Ali filed an appeal which was dismissed as time barred and which he need never have filed at all. The order of January 10, 1952, was without jurisdiction so far as Zafar Ali's share in the house was concerned, and it remained so in spite of the appeal.

    7. In our view, the appeal furnishes no answer to the claim made in the petition. As no notice had been issued to the petitioners under Section 7, their interest in the two houses never vested in the Custodian. The acts of the Custodian insofar as they deprive the petitioners of their property cannot be upheld.

    8. It was also said on behalf of the respondents that the properties had already been acquired under the Displaced Persons Act, 1954, and therefore the petitioners had, no longer, any claim to them. Sub-section (2) of Section 12 of this Act provides that “On the publication of a notification under sub-section (1), the right, title and interest of any evacuee in the evacuee property specified in the notification shall, on and from the beginning of the date on which the notification is so published, be extinguished and the evacuee property shall vest absolutely in the Central Government free from all encumbrances”. It was said that a notification mentioned in this section had been issued. It seems to us that this section does not affect the petitioners' rights. It only affects the rights of an evacuee which the petitioners, on the admitted facts, are not.

    9. We may mention here that the petitioner Zafar Ali claims that his father left a will giving him a larger share in the houses than he would have got on intestacy. We are not concerned in this case with his rights under the will, if any, and say nothing about them.

    10. In the result, we allow the petition and set aside the order of January 10, 1952, insofar as it affected the rights of the petitioners in the properties concerned. There will be no order as to costs.

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    Comments

    Zafar Ali Shah (Dr) And Others v. Assistant Custodian Of Evacuee
    (Apr 4, 1961)