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Disposition
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  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 226 of the Constitution
  • Section 24(2) of the Displaced Persons (Compensation and Rehabli-tation) Act 44 of 1954
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article 226 of the Constitution
  • Section 24(2) of the Displaced Persons (Compensation and Rehabli-tation) Act 44 of 1954
Smart Summary

Factual and Procedural Background

Ram Singh, a displaced person from District Lyallpur (now in West Pakistan), received an allotment of land in Village Raipur Arain, District Jullundar, from the Rehabilitation Department after Partition. His sons (Respondents 1-3) asserted that Ram Singh had previously cultivated A-grade land and that the land allotted to him in India was C-grade, largely banjar kadim and vulnerable to erosion by the Sutlej River. Relying on certified copies of the 1957-58 Khasra-Girdawari, the sons applied for better land. The Patwari, Kanungo-Tahsildar and Assistant Commissioner verified their claim; consequently, the Land Claims Officer cancelled the original allotment and granted alternative land in District Hoshiarpur with permanent rights, where the respondents took possession, constructed wells and built houses.

In 1959 the same Land Claims Officer recommended to the Chief Settlement Commissioner that the earlier exchange order had been procured through “fabricated” Khasra-Girdawari extracts. On 20 September 1962 the Chief Settlement Commissioner cancelled the Hoshiarpur allotment under Section 24(2) of the Displaced Persons (Compensation and Rehabilitation) Act, 1954.

Respondents 1-3 filed a writ petition under Article 226 before the Punjab High Court. A single judge (Mahajan, J.) dismissed the petition, upholding the Commissioner’s finding of fraud. On Letters Patent Appeal, the High Court directed the State to produce the original 1957-58 Khasra-Girdawari; the State claimed the record was “not traceable”. Finding no supporting evidence for fraud and relying on revenue officials’ reports, the appellate bench set aside the Commissioner’s order. With a certificate of fitness, the present appellants—purchasers claiming under Ram Singh’s original allotment—appealed to the Supreme Court.

Legal Issues Presented

  1. Whether the Chief Settlement Commissioner validly exercised his revisional power under Section 24(2) of the Displaced Persons (Compensation and Rehabilitation) Act, 1954, in cancelling the respondents’ allotment on grounds of fraud.
  2. Whether the finding that the Khasra-Girdawari extracts were fabricated was supported by any evidence, thereby furnishing the jurisdictional fact necessary for the Commissioner’s satisfaction.

Arguments of the Parties

Appellants’ Arguments

  • The exchange in favour of Respondents 1-3 was obtained by producing forged Khasra-Girdawari entries; therefore, the Chief Settlement Commissioner rightly exercised his power to cancel the allotment.
  • The affidavits and enquiries conducted after 1959 established that the revenue extracts were unreliable.

Respondents’ Arguments

  • The original Khasra-Girdawari for 1957-58, the best evidence, was not produced by the State despite a court direction; hence no proof of fabrication existed.
  • Reports of the Patwari, Kanungo-Tahsildar and Assistant Commissioner corroborated the poor quality and erosion-prone nature of the original allotment, justifying the exchange.
  • The Chief Settlement Commissioner acted arbitrarily and without evidence, rendering his order liable to be quashed.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court examined Section 24(2) of the 1954 Act, noting that the Chief Settlement Commissioner may cancel an allotment only if “satisfied” that it was obtained by fraud, false representation, or concealment of material facts. Such satisfaction is a jurisdictional fact subject to judicial scrutiny; it cannot be arbitrary or unsupported by evidence.

The Court observed that the Commissioner lacked the original 1957-58 Khasra-Girdawari and did not consider crucial material, including:

  • Revenue reports detailing severe river erosion that rendered most village land uncultivable.
  • The verification by the Patwari, Kanungo-Tahsildar and Assistant Commissioner that supported the respondents’ claim.

Instead, the Commissioner relied on earlier years’ Khasra-Girdawari (1950-56) and an enquiry officer’s unsubstantiated conclusion of forgery. The Supreme Court agreed with the appellate High Court that the Commissioner’s finding of fraud was “based on no evidence”. Because the Commissioner’s satisfaction was not grounded in relevant material, his order was quasi-judicially unsustainable.

Holding and Implications

The appeal is dismissed with costs.

The Supreme Court affirmed the High Court’s restoration of the respondents’ Hoshiarpur allotment. The decision underscores that the Chief Settlement Commissioner’s power under Section 24(2) is subject to judicial review and must rest on cogent evidence of fraud; mere suspicion or missing records cannot justify cancellation. No new legal doctrine was created, but the ruling reinforces safeguards against arbitrary deprivation of rehabilitation allotments.

    Shauqin Singh And Others v. Desa Singh And Others

    J.C Shah, J.— Ram Singh — originally a resident of District Lyallpur (now in West Pakistan), migrated to India in 1947 on the partition of the country. The Rehabilitation Department allotted to Ram Singh an area of land in Village Raipur Arain, District Jullundar in lieu of the land which Ram Singh was compelled to abandon. After the death of Ram Singh his sons Respondents 1 to 3 complained to the Rehabilitation Department that Ram Singh was cultivating A grade land in District Lyallpur and was on that account entitled to allotment of A Grade land, he had been allotted in Village Raipur Arain C Grade land which was mostly Banjar Kadim unfit for cultivation and subject to river erosion. Respondents 1 to 3 in support of their application tendered certified extracts from Khasra-Girdawari for 1957-58 showing that the land allotted to Ram Singh was subject to river erosion. The Land Claims Officer held an enquiry and called for a report from the Revenue Authorities. The Patwari of the village, the Kanungo-Tahsildar and the Assistant Commissioner verified the recitals made in the application, and recommended the case of Respondents 1 to 3 for allotment of other land. The Land Claims Officer cancelled the allotment of land to Ram Singh in Village Raipur Arain and allotted in lieu thereof other land in district Hoshiarpur with “permanent rights”. Respondents 1 to 3 took possession of the land and started cultivation. They installed wells and built houses on the land.

    2. In 1959 the question the Land Claims Officer recommended to the Chief Settlement Commissioner that the previous order cancelling the allotment of land in favour of Ram Singh was made on the basis of “fabricated extracts from the Khasra-Girdawari”. The Chief Settlement Commissioner by order, dated September 20, 1962, cancelled the allotment of land to Respondents 1 to 3 in District Hoshiarpur.

    3. Respondents 1 to 3 then moved a petition before the High Court of Punjab under Article 226 of the Constitution for a writ quashing the order, dated September 20, 1962 of the Chief Settlement Commissioner. To this petition the present appellants were on their own application impleaded as parties. They claimed that they had purchased the land allotted to Ram Singh from the original allottee of the land under the orders made by the Land Claims Officer.

    4. Mahajan, J., dismissed the petition holding that Respondents 1 to 3 obtained the order of exchange and cancellation of the previous allotment by relying upon “fabricated Khasra-Girdawari entries” and the Chief Settlement Commissioner acted properly in setting aside the order made by the Land Claims Officer. Against that order an appeal was preferred to the High Court under the Letters Patent.

    5. To determine whether the extracts from Khasra-Girdawari produced by Respondents 1 to 3 with their application before the Land Claims Officer were “fabricated” the High Court called upon the State Government to produce the original Khasra-Girdawari for the year 1957-58, but the State did not produce the record on the somewhat specious plea that the Khasra-Girdawari was “not traceable”. The State also relied upon an affidavit of the Deputy Secretary to the Government of Punjab, Rehabilitation Department, stating that the order of exchange was obtained by Respondents 1 to 3 on the basis of incorrect Khasra-Girdawari entries and that the Tahsildar had signed the copy of the Khasra-Girdawari produced by Respondents 1 to 3 without comparing them with the originals as required under the orders of Government. The High Court observed that the Deputy Secretary to the Government of Punjab, Rehabilitation Department, had no personal knowledge and his assertion that the exchange was obtained on the basis of incorrect entries in Khasra-Girdawari was not evidence which supported the claim that the extracts produced were not genuine. The High Court accordingly reversed the order holding that there was no evidence to show that Khasra-Girdawari entries which were produced by the Respondents 1 to 3 before the Land Claims Officer on which the previous allotment was cancelled were not true extracts. The High Court relied upon the report made by the Patwari, Kanungo-Tahsildar and the Assistant Commissioner and held that the claim made by Respondents 1 to 3 that the lands allotted to them were “poor quality lands” and it was “difficult to earn any livelihood out of those lands” was correct. With certificate granted by the High Court the appellants have appealed to this Court.

    6. Section 24(2) of the Displaced Persons (Compensation and Rehabli-tation) Act 44 of 1954 confers authority upon the Chief Settlement Commissioner to revise the orders of Subordinate authorities. Insofar as it is relevant it provides:

    “Without prejudice to the generality of the foregoing power under sub-section (1), if the Chief Settlement Commissioner is satisfied that any order for payment of compensation to a displaced person or any lease or allotment granted to such a person has been obtained by him by means of fraud, false representation or concealment of any material fact, then, notwithstanding anything contained in this Act, the Chief Settlement Commissioner may pass an order ... cancelling the lease or allotment granted to him....”
    The Chief Settlement Commissioner has, therefore, power under sub-section, (2) to cancel an allotment if he is satisfied that the order of allotment of land had been “obtained by means of fraud, false representation or concealment of any material fact.” The power is judicial and by the use of the expression “is satisfied” the Chief Settlement Commissioner is not made the final arbiter of the facts on which the conclusion is reached. The jurisdiction of the Chief Settlement Commissioner arises only if an allotment is obtained by means of fraud, false representation or concealment of material facts. The relevant satisfaction is a jurisdictional fact on the existence of which alone the power may be exercised. A superior authority or the High Court in a writ petition would, therefore, be entitled to consider whether there was due satisfaction by the Chief Settlement Commissioner on materials placed before him and that the order was made not arbitrarily, capriciously or perversely.

    7. The Chief Settlement Commissioner had apparently called for the Jamabandi for the year 1957-58, but it was represented that it was missing. He however, relied upon the Khasra-Girdawari for 1950-51 to 1955-56 and held that some parts of the land of the village were under cultivation and on that basis he observed that the Enquiry Officer had come to the conclusion that the copies of the Khasra-Girdawari on the basis of which exchange had been obtained were forged and the exchange was liable to be set aside. Even the entries in the Khasra-Girdawari of the earlier years showed that large areas of lands of the village were not capable of full cultivation. There were again the reports of the Patwari, Kanungo-Tahsildar and the Assistant Commissioner that the lands in the village were in danger of being eroded by the action of the river Sutlej, that the displaced persons who were allottee of the lands were in danger of being deprived of their lands and that alternative allotment of land be made to Respondents 1 to 3. The revenue Authorities had reported that in the village there was a total area of 1,102 acres of cultivable land out of which about 822 acres had been rendered uncultivable and only 280 acres remained cultivable. It appears further that when the river Sutlej was in floods it was difficult to save even the Abad land, that the residents of the village were permanently in danger of river erosion and that the Kanungo-Tahsildar regarded the condition of all the allottees as “miserable”. The Chief Settlement Commissioner did not refer to the report of the Kanungo-Tahsildar and the Assistant Commissioner on the basis of which the Land Claims Officer had cancelled the original allotment.

    8. It is clear that the Chief Settlement Commissioner without having the original Khasra-Girdawari before him and without considering the relevant evidence came to the conclusion that the entries produced before the Land Claims Officer in support of their application for cancellation of the allotment were “not genuine”. There is in the order of the Chief Settlement Commissioner no reference to any evidence which may support this conclusion. The order of the Chief Settlement Commissioner being quasi-judicial in character and his satisfaction not being decisive of the matter, the High Court, in our view, was justified in holding that the conclusion of the Chief Settlement Commissioner that the Respondents 1 to 3 were guilty of fraud, was based on no evidence and the Court was competent to set aside the order of the Chief Settlement Commissioner.

    9. The appeal fails and is dismissed with costs.

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    Comments

    Shauqin Singh And Others v. Desa Singh And Others
    (Dec 4, 1969)