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Smart Summary

Structured Summary of the Opinion: Mookerjee and Caspersz, JJ.

Factual and Procedural Background

The petitioner is the present shebait (manager) of an idol, Gopaljiu. The founder, Ram Kamal Mukherjee, dedicated considerable properties to the idol by a testamentary disposition dated 4 February 1845. There had been litigation over the endowment; most recently the petitioner’s right to the office of shebait was declared in Aghore Nath Mukerjee v. Srimati Kamini Debi (decision dated 15 December 1909).

Prior to the petitioner’s appointment as shebait, part of the debuttar (dedicated) estate had been acquired by Government under the Land Acquisition Act at the instance of the Commissioners of the Port of Calcutta. The compensation awarded was invested in Government securities of the nominal value of Rs. 32,500.

On 24 September 1910 the petitioner applied to the Land Acquisition Judge for an order to pay her Rs. 24,000 out of that compensation money to enable repairs and improvements to the remaining debuttar property (one building contains the idol). Representatives of the founder opposed the application. The Land Acquisition Judge dismissed the application on 18 November 1910 without enquiry, holding (a) that the petitioner was not absolutely entitled to the compensation money as shebait and (b) that the Court had no machinery effectively to control expenditure.

The petitioner obtained a Rule on 28 November 1910 seeking reversal of that order on the ground that the Land Acquisition Judge had wrongly refused to exercise jurisdiction under section 32 of the Land Acquisition Act, 1894.

Legal Issues Presented

  1. Whether compensation for land acquired that belonged to a person not competent to alienate (here debuttar land dedicated to religious/charitable purposes) falls within section 32 of the Land Acquisition Act so that the compensation may be invested under that section.
  2. If section 32 applies, whether the shebait (manager of the endowment) can withdraw a portion of the invested compensation money to effect necessary repairs and improvements to the remaining debuttar property.

Arguments of the Parties

Petitioner's Arguments

  • Section 32 of the Land Acquisition Act is sufficiently comprehensive to authorise the Land Acquisition Judge to allow withdrawal of a portion of the compensation money for necessary repairs to the debuttar property.
  • The petitioner relied on English authorities (for example, Exp. Sector of Grimoldby, In re Aldred's Estate, Exp. Rector of St. Botolph) to support a construction of section 32 that permits application of part of the fund for preservation of the trust property.

Opposite Party's Arguments

  • Repairs and permanent improvements are not within clause (1) or clause (2) of section 32 of the Land Acquisition Act and therefore cannot be paid out of the capital compensation money; a number of English cases were cited (for example, Drake v. Trefusis, In re Leigh's Estate, In re Nether Stowey Vicarage, Brunskill v. Caird, Exp. Rector of Newton Heath, Vine v. Raleigh, In re Jerard's Settled Estate).
  • It was further contended that the Land Acquisition Judge has no jurisdiction to entertain such an application under section 32, and that the proper remedy would be a suit in the Civil Court.
  • Additionally, it was argued that because section 32 does not expressly prescribe the mode of making and entertaining such an application, the Land Acquisition Court lacks jurisdiction to take cognisance of it.

Table of Precedents Cited

Precedent Rule or Principle Cited For (as stated in the opinion) Application by the Court (how the opinion used it)
Aghore Nath Mukerjee v. Srimati Kamini Debi Background fact: case in which petitioner's right to the office of shebait was declared. Used as factual background establishing petitioner's title to office.
In re Aldred's Estate Cited as authority that Court may sanction application of compensation money to effect repairs and improvements when necessary to preserve the trust estate. Used as illustrative English authority supporting application of capital for preservation of trust property.
Exp. Rector of St. Botolph Cited by petitioner as supporting a liberal construction allowing application of funds for trust preservation. Referred to in support of the petitioner's contention about permissible applications of deposited funds.
Drake v. Trefusis Listed among authorities that (in some decisions) suggest repairs and improvements are not payable out of capital monies. Noted as part of the English cases relied on by the opposite party to argue a restrictive view.
In re Leigh's Estate Illustration of rule that ordinary repairs are not payable from capital; but expenditure for preservation in salvage-like cases may be authorised. Used to deduce the rule about ordinary repairs versus preservation expenses.
In re Nether Stowey Vicarage Listed among cases on the question whether compensation money may be applied to repairs or purchase of glebe/ecclesiastical lands. Cited in the discussion of English authorities on the scope of section 69 analogues.
Brunskill v. Caird Illustration that purchase money of glebe or ecclesiastical lands may be applied in improvements and purchase of other lands. Cited as an authority supporting application of funds for ecclesiastical improvements.
Exp. Rector of Newton Heath Cited in relation to the limits of applying deposited money for rebuilding where costs already borne by rector. Used to show a line of authority limiting applications under the English statute.
In re Venour's Settled Estate Mentioned among cases illustrating the general rule on repairs and capital application. Referred to in deducing the English rules relied upon.
Vine v. Raleigh Exemplifies the distinction between a trust to purchase land and a trust to effect repairs. Used to illustrate a doctrinal distinction relevant to interpretation.
In re Jerard's (Gerard's) Settled Estate Listed among decisions; the opinion notes this and In re Thomas (Settled Land Act cases) have no direct application here. Noted as not directly applicable to the present statute.
Jagadindra Nath Roy v. Hemanta Kumari Debi Used to explain that an idol may be regarded as a juridical person capable in an ideal sense of holding property; but possession and management belong to the shebait. Employed to support the conclusion that debuttar land may be treated as belonging to the shebait for purposes of section 32.
Mrinalini Dasi v. Abinash Chandra Dutt Held section 32 applies to cases such as land in possession of a Hindu widow where she may in certain contingencies be competent to alienate part of the estate. Relied on to support the application of section 32 to dedicated property and to show settled practice.
Mersey Docks v. Cameron Principle that where legislative words have received judicial construction previously, the Legislature is presumed to have used them in that sense when repeating them. Used to justify interpreting section 32 in light of the English section 69 and prior judicial constructions.
Exp. Campbell Quoted (James, L.J.) to support the rule about following prior judicial construction of repeated statutory words. Used to support the method of statutory interpretation adopted by the Court.
Ruckmaboye v. Lulloobhoy Mottichund Quoted (Sir John Jervis, C.J.) for the proposition that judicially construed words when adopted in later statutes must be read in that sense. Referred to in support of interpreting section 32 by analogy with section 69 jurisprudence.
Clarke v. Thornton Listed among decisions illustrating limits on using capital for ordinary repairs. Used as part of the body of authorities from which rules were deduced.
Exp. Barrett Listed among authorities illustrating the rule on ordinary repairs vs. preservation expenditures. Used illustratively in the court's synthesis of English authorities.
In re Vicar of Queen's Camel Listed among illustrative authorities regarding the nature of permissible expenditures. Referred to in the compilation of rules drawn from English cases.
In re Belfast Water Commissioners Listed among illustrations of the rule concerning repairs and capital application. Used in the court's recitation of English decisions.
In re Montagu Listed as an additional illustrative authority. Referred to in the survey of cases.
In re Partington Listed as an additional illustrative authority. Referred to in the survey of cases.
In re Davie's Estate Illustration that where statutory power of sale or right of re-entry exists, compensation money may be applied for repairs to avoid statutory action. Used to support the rule allowing application of funds when otherwise the property would be subject to statutory enforcement.
In re Barney Similar illustration to In re Davie's Estate regarding statutory action if repairs are not done. Used as an example of application where external enforcement threatened the estate.
Exp. St. Botolph Illustration that purchase money of glebe lands may be applied for improvements and purchase of other lands. Referred to in discussions of ecclesiastical/charity property applications.
Exp. Hartington Mentioned as a case on the other side of the line regarding ecclesiastical property applications. Used to show divergence among decisions.
Exp. Pennington (also cited with In re London County Council) Cited as procedural guidance for how an enquiry should be conducted. Used to frame directions on evidence, inspection and handling of contractor payments.
Williams v. Aylesbury Railway Co. Mentioned in context of limits on applying deposited money to rebuilding costs already met by rectors. Referred to when outlining conflicting decisions.
In re Stock's Estate Mentioned together with Williams v. Aylesbury Railway Co. as showing limits on application. Referred to in the court's survey of authorities.
Mathews v. Wilson Noted as apparently an authority to the contrary on the rebuilding question. Used to show that authorities are not uniform.
In re Gerard's (Gerard/Jerard) Settled Estate Noted as a case turning on the Settled Land Act, 1890 and of limited direct application here. Distinguished and not treated as directly applicable.
In re Thomas Case under the Settled Land Act, 1890—no direct application to the present statute. Distinguished by the Court.
Deva Siiamani v. Palaniyappa Cited to show that, absent conversion to money, the shebait could alienate a portion of the land for essential repairs. Used to support the proposition about the shebait's competence to alienate part of the corpus when necessary.
Kelland v. Fulford Interpreted "absolutely entitled to such money" to mean "entitled to his or her own use"; used in analogy to show trustees are not persons absolutely entitled. Used to argue that a shebait is not a person "absolutely entitled" under the statutory language.
Exp. Walker Listed among authorities supporting the legal fiction that money remains impressed with the character of real estate after conversion. Referred to in the discussion that money derived from land should be treated as land for protection of beneficiaries.
In re Harrop's Estate Listed among authorities to show that converted funds are regarded as still impressed with the character of real estate. Referred to in the court's doctrinal exposition.
Midland Counties By. Co. v. Oswin Listed among cases supporting the fiction that proceeds of sale retain the character of land for beneficiaries' protection. Referred to in the court's doctrinal exposition.
In re East Lincolnshire By. Co. Listed as an authority consistent with the treatment of funds as retaining the characteristics of the land. Referred to in support of treating proceeds as equivalent to land for beneficiaries' protection.
In re Tugnell Referenced in connection with In re East Lincolnshire By. Co.; cited as related authority. Used as a supporting reference in the doctrinal discussion.
In re Board of Street Opening (New York) Foreign authority: held compensation for land of a lunatic taken for public purposes is to be treated as real estate to be applied as the real estate could have been. Used to show analogous reasoning in other jurisdictions supporting the Court's view.
Exp. Van Vorst Listed among foreign authorities cited in support of similar principles. Referred to as corroborative foreign authority.
Brown v. Borne By. Co. Listed among foreign authorities. Referred to as corroborative authority.
Peavey v. Wolfborough Listed among foreign authorities. Referred to as corroborative authority.
Kearney v. Kean Foreign case where land acquired belonged to a person without absolute power of disposition; fund treated as land and retained in Court. Used to support the principle that converted funds must be retained for application like the land itself.
In re London County Council; Exp. Pennington Procedure in that case provided guidance on evidence and enquiry procedure for applications to apply deposited funds. Adopted as procedural guidance for the enquiry to be conducted by the Land Acquisition Judge.
Exp. Trustees of Tid Not specifically explained in the opinion. The opinion notes the case as one where purchase money of charity property was paid to trustees; no detailed principle is stated in the text.
In re Lathropp's Charity Mentioned along with cases where charity purchase money was paid to trustees. Referred to in the discussion about payments being made to trustees in certain charity cases.
Mayor of Sheffield v. Trustees of St. William's School Cited as another authority where purchase money of charity property was paid to trustees. Used in the discussion of when funds were paid to trustees of charities.
Exp. Governors of Norfolk Clergy Case where the Court ordered the fund to be invested and dividends paid to the treasurer rather than paying purchase money to trustees. Used to show contrasting practice in charity cases.
In re Faversham Charities Held proceeds of sale of charity lands could not be paid out of Court to trustees without Charity Commissioners' consent. Referred to as an authority restraining payment to trustees without appropriate consent.
In re Spurstoive's (Spurstoive's) Charity Listed among charity-related authorities; specific principle not detailed in the opinion. Referenced in the sequence of charity authorities.
In re Hobson's Trust Decision supporting view that trustees may be treated as persons absolutely entitled (the opinion notes this case was doubted in In re Smith). Noted and contrasted with other authorities; not adopted as controlling.
Exp. St. Alphege Listed among ecclesiastical/charity authorities; specific point not detailed in the opinion. Referred to in the survey of authorities.
In re Clergy Orphan Corporation Listed among charity authorities; specific principle not detailed in the opinion. Referred to in the discussion of charity cases.

Court's Reasoning and Analysis

The Court conducted a step-by-step analysis confined to the issues raised in the petition and grounded in the text of section 32 of the Land Acquisition Act and the analogous section 69 of the Lands Clauses Consolidation Act, 1845 (English statute). The reasoning proceeded as follows:

  1. Applicability of section 32 to debuttar (dedicated) land:
    • The Court held that land dedicated for religious and charitable purposes is properly described as land belonging to a person who has no power to alienate it. Although an idol may be a juridical person in an ideal sense, possession and management belong to the shebait; therefore the shebait is the appropriate person for purposes of section 32.
    • The Court noted that while a shebait may in special cases have power to alienate a portion, ordinarily the shebait is incompetent to deal with the corpus; hence, when dedicated property is acquired, the presumption is that it belonged to a person not competent to alienate and section 32 applies. The Court cited Mrinalini Dasi v. Abinash Chandra Dutt as supporting the settled practice that section 32 may apply in analogous situations.
  2. Proper construction of clauses (i) and (ii) of section 32, sub-section (1):
    • The Court recognised an initial textual difficulty: clause (i) speaks of application "in the purchase of such other lands" which prima facie does not obviously include repairs. To resolve this, the Court turned to the English precedent under section 69 of the Lands Clauses Consolidation Act, 1845, on which the Indian provision was modelled.
    • Invoking the principle (from Mersey Docks v. Cameron, Exp. Campbell, Ruckmaboye v. Lulloobhoy Mottichund) that where statutory language has been judicially construed in an earlier statute, identical language in a later statute should be read in light of that construction, the Court interpreted section 32 by reference to the English authorities construing section 69.
    • The Court distilled a set of rules from the English authorities (enumerated in the opinion as (i)–(v)), including:
      • Ordinary repairs must normally be borne out of income, not capital, but capital may be applied for preservation in salvage-like or necessary-preservation cases.
      • If statutory powers of enforcement (e.g., re-entry or power of sale) may be triggered by failure to repair, courts have allowed application of capital to avoid the property being lost.
      • Special rules govern ecclesiastical/glebe lands and churchyards, with divergent authorities on precise limits.
      • Authorities are not uniform; each case turns on its facts and statutory context.
    • The Court concluded that the shebait cannot be regarded as a person "absolutely entitled" to the fund in the literal sense of clause (ii); citing Kelland v. Fulford the Court observed that "absolutely entitled to such money" had been interpreted to mean "entitled to his or her own use," which does not fit a trustee/she bait's restricted entitlement. The Court therefore preferred to place the case within clause (i) (interpreted in light of section 69 jurisprudence), permitting application of part of the capital in circumstances necessary for preservation and ultimate benefit of the endowment.
  3. Jurisdiction of the Land Acquisition Court:
    • The Court rejected the opposite party's contention that the Land Acquisition Judge lacked jurisdiction to entertain such applications because section 32 did not prescribe a specific procedure. The Court held that, as the fund is placed in the custody of the Court by statute, the Court has implied jurisdiction to deal with questions as to the application of the fund.
    • The Court invoked general maxims (Russel v. Smyth; Domat) that courts must apply statutes to just cases not expressly contemplated by the drafter, and therefore the Land Acquisition Judge has authority to investigate and pass orders on claims to the fund or proposals to purchase suitable land.
  4. Practical directions for enquiry and decision-making:
    • The Court directed that the application must be entertained and investigated on the merits by the Land Acquisition Judge.
    • Procedure guidance (drawing on In re London County Council; Exp. Pennington): take evidence on the petitioner's allegations; one expert witness on each side may suffice; local inspection by the Judge is permissible; if repairs are necessary and cannot be met from income, obtain contractor estimates; allow objectors to examine/challenge estimates; work to be executed by contractors under a formal contract approved by the Court; payments to contractors to be made progressively as work proceeds upon reports from an expert; the contract should provide for court oversight to guard against misapplication.
    • The Court specified three elements to be considered in determining the permissible sum: (a) present condition of the property, (b) income of the endowment and available surplus beyond current expenses, and (c) amount of compensation money in deposit. The overarching test is whether the proposed work is essential for the ultimate benefit of the endowment.

Holding and Implications

Holding:

Rule absolute. The Court made the Rule absolute, discharged the order of the Court below, and remanded the case to the Land Acquisition Judge with directions to entertain and investigate the shebait's application for withdrawal of part of the deposited compensation money in accordance with the principles and procedure set out in this judgment. The costs of the Rule were ordered to abide the ultimate result of the proceedings in the Court below.

Implications (direct effects and scope):

  • Direct effect on the parties: the Land Acquisition Judge must now conduct the enquiry and decide, applying the tests and procedure indicated by the Court; the petitioner’s application is to be considered on merits rather than being dismissed for lack of jurisdiction.
  • Statutory interpretation consequence: the Court interpreted section 32 of the Land Acquisition Act (1894) in light of English precedents under section 69 of the Lands Clauses Consolidation Act, 1845, adopting a liberal construction permitting application of deposited capital in cases essential to preserve the endowment subject to judicial supervision and safeguards.
  • The Court emphasised that any application of capital must be strictly for the ultimate benefit of the endowment and carried out under court oversight (estimates, formal contract, expert supervision, staged payments).
  • The opinion did not state that it was laying down a binding new general rule beyond the interpretation and procedures applied to the facts before it; instead it stated principles and practical directions to guide the Land Acquisition Judge in the exercise of statutory jurisdiction in such cases.

End of summary — all information is reproduced and synthesized exclusively from the opinion text provided.

    Kamini Debi v. Pramatha Nath Mookerjee

    Mookerjee and Caspersz, JJ.:— The substantial question of law, which calls for our decision in this Rule, relates to the true construction of section 32 of the Land Acquisition Act of 1894, and is apparently of first impression, in so far, at any rate, as the Courts of this country are concerned. There is no controversy as to the circumstances under which the order of the Court below now under consideration was made. The petitioner before us is the present shebait of an idol, Gopaljiu, to whom considerable properties were dedicated by her father, Ram Kamal Mukherjee, under a testamentary disposition made on the 4th February, 1845. Ever since the foundation of the endowment there has been litigation relating to the properties, the most recent instance of which will be found reported in the case of Aghore Nath Mukerjee v. Srimati Kamini Debi(1). By this decision given on the 15th December, 1909, the right of the petitioner to the office of shebait was declared.

    It appears that before the petitioner had been appointed shebait, a portion of the debuttar estate had been acquired, under the Land Acquisition Act, by the Government at the instance of the Commissioners of the Port of Calcutta. The sum awarded, as compensation was invested in Government securities of the nominal value of Rs. 32,500. On the 24th September, 1910, the petitioner applied to the Land Acquisition Judge for an order to pay her Rs. 24,000 out of the compensation money, to enable her to improve the debuttar property, and execute necessary repairs to the buildings, in one of which the idol is located. This application was opposed by representortives of the founder, who have no present interest in the endowment, but may possibly, at some future time, succeed to the office of shebait. The Land Acquisition Judge dismissed the application on the 18th November without any enquiry into the merits. The learned Judge held that, as the petitioner was not absolutely entitled to the compensation money in her capacity as shebait, she could, not claim to draw any portion of the invested funds; and that, in any event, the money ought not to be placed at her disposal, because the Court had no machinery to exercise any effective control over the expenditure.

    The petitioner obtained this Rule on the 28th November, 1910, for reversal of the order in question, on the ground that the learned Judge had erroneously refused to exercise the jurisdiction vested in him by law. In support of the Rule it has been contended that the terms of section 32 are comprehensive enough to authorise the Land Acquisition Judge to allow the petitioner to spend a portion of the compensation money with a view to effect necessary repairs to the debuttar property; this position, it has been maintained, is established by the cases of Exp. Sector of Grimoldby. In re Aldred's Estate(2), and Exp. Rector of St. Botolph(3). In answer to this contention it has been argued by the learned vakil for the opposite party that repairs and permanent improvements do not fall within clause (1) or clause (2) of section 32 of the Land Acquisition Act, and in support of this view reference has been made to the cases of Drake v. Trefusis(4). In re Leigh's Estate(5), In re Nether Stowey Vicarage(6), Bruns-kill v. Caird(7), Exp. Rector of Newton Heath(8), In re Venour's Settled Estate(9), Vine v. Raleigh(10), and In re Jerard's Settled Estate(11). The question raised is of considerable importance, and by no means free from difficulty; the solution of it must obviously depend upon the true construction of the statutory provisions on the subject.

    section 32 of the Land Acquisition Act provides for the investment of compensation money deposited in respect of lands belonging to persons incompetent to alienate the same. The section lays down that when the money has been invested in Government or other approved securities, the Court shall direct the payment of the interest or other proceeds arising from such investment to the person or persons who would, for the time being, have been entitled to the possession of the said land, and such moneys shall remain so deposited and invested until the same be applied, (i) in the purchase of such other lands as aforesaid, that is, other lands to be held under the like title and conditions of ownership as the land in respect of which the compensation money shall have been deposited was held, or (ii) in payment to any person or persons becoming absolutely entitled thereto.

    Two questions manifestly arise upon the construction of this section, namely, first, whether the land acquired belonged to a person who had no power to alienate the same, in other words, whether, when debuttar land has been acquired, the provisions of the section for investment of the compensation money may at all be brought into operation; and, secondly, if the provisions of the section are applicable, whether the shebait is entitled to withdraw any portion of the invested funds and apply the same to effect necessary repairs to the remainder of the debuttar estate.

    In so far as the first of these questions is concerned we are inclined to the view that land dedicated for religious and charitable purposes is land which may properly be described as belonging to a person who has no power to alienate the same. No doubt, in the case of land dedicated to an idol, the idol may be deemed as the person to whom the land belongs, but, as was pointed out by their Lordships of the Judicial Committee in Jagadindra Nath Roy v. Hemanta Kumari Debi, although there is no doubt that an idol may be regarded as a juridical person capable as such of holding property, it is only in an ideal sense that property is so held, and assuming the religious dedication to have been of the strictest character, the fact remains that the possession and management of the dedicated property belong to the shebait. This carries with it the right to bring whatever suits are necessary for the protection of the property, and every such right of suit is vested in the shebait, not in the idol. Without any undue violence, therefore, to the language used by the Legislature in section 32, sub-section (1), we may hold that when land dedicated to an idol or to religious and charitable purposes generally has been acquired, it is land belonging to the shebait or trustee who had no power to alienate the same. We are further of opinion that no difficulty is created by the expression “who has no power to alienate the same,” because, although the shebait may, in special cases, have the power to alienate a portion of the debuttar estate, he is ordinarily incompetent to deal with the corpus of the dedicated property. Consequently when such dedicated property is acquired under the Land Acquisition Act, the presumption is that it belonged to a person not competent to alienate it; and therefore the provisions of section 32 may be brought into operation: see Mrinalini Dasi v. Abinash Chandra Dutt (where section 32 of the Land Acquisition Act was held to apply to cases in which land in possession of a Hindu widow as heiress to her husband is acquired, although in certain contingencies a Hindu widow may be competent to alienate absolutely a part of the estate inherited by her from her husband). We must consequently hold that in the case before us the compensation money was rightly invested under section 32 of the Land Acquisition Act, and this is the settled practice of the Land Acquisition Court.

    In so far as the second question is concerned, the answer depends upon the effect to be attributed to clauses (i) and (ii) of section 32, sub-section (1) of the Land Acquisition Act. The learned vakil for the petitioner has contended that the terms of clause (i) are comprehensive enough to justify the application of a portion of the compensation money to effect repairs absolutely essential for the preservation of the remainder of the property. It may be observed that the clause relied upon speaks of the application of the compensation money in the purchase of other lands, and, prima facie, it is not easy to see how money, applied for the purpose of repairs, however necessary they may be, can be deemed to be money applied for the purchase of land. But the learned vakil for the petitioner has argued that the clause in question is based on section 69 of the Lands Clauses Consolidation Act, 1845, and ought to be interpreted in the same manner as the corresponding section of the English statute. This, in our opinion, is a legitimate mode of interpretation of statutory provisions, because, as observed by Blackburn, J., in Mersey Docks v. Cameron, where an Act of Parliament has received a judicial construction putting a certain meaning on its words, and the Legislature in a subsequent Act in pari materia uses the same words, there is a presumption that the Legislature used those words intending to express the meaning which it knew had been put upon the same words before, and unless there is something to rebut that presumption, the Act should be so construed, even if the words were such that they might originally have been construed otherwise. In other words, as James, L.J, put it in Exp. Campbell, where once certain words in an Act of Parliament have received a judicial construction in one of the superior Courts and the Legislature have repeated them, without any alteration, in a subsequent statute in pari materia, the Legislature must be taken to have used them according to the meaning which a Court of competent jurisdiction has given them. To the same effect is the observation of Sir John Jervis, C.J, in Ruckmaboye v. Lulloobhoy Mottichund that when words in a statute have been judicially construed to have a certain meaning, and have been adopted by the Legislature in a subsequent statute in pari materia, they must be construed according to the sense in which they have been previously used, although that sense may vary from the strict literal meaning of them. Now, in the case before us, section 69 of the Lands Clauses Consolidation Act, 1845, upon which section 32 of the Land Acquisition Act is modelled, provides — we need only quote so much of the section as is relevant to our present purpose — as follows:

    “If the compensation which shall be payable in respect of any lands or any interest therein taken by the promoters of the undertaking from any person having a partial or qualified interest only in such lands and not entitled to sell or convey the same, the same shall be paid into the Bank the name and with the privity of the Accountant-General of the Court of Chancery; and such moneys shall remain so deposited, until the same be applied to some one or more of the following purposes, that is to say, (i) in the purchase or redemption of the land tax or the discharge of any debt or encumbrance affecting the land; or (ii) in the purehase of other lands to be conveyed, limited and settled upon the like uses and purposes, and in the same manner as the lands in respect of which such money shall have been paid stood settled; or (iii) if such money shall be paid in respect of any buildings, in removing or replacing such buildings, or substituting others in their stead; or (iv) in payment to any party becoming absolutely entitled to such money.”

    It will be observed that the second clause in this provision corresponds with the first clause in section 82 of the Land Acquisition Act. Now, with reference to this clause, it has been held in numerous decisions in England that the Court may sanction the application of the compensation money to effect repairs and improvements upon the remainder of the trust property. But the learned vakil for the opposite party has contended that the decisions in England are by no means uniform and that no rule can be deduced from them to be applied in the construction of our statute. It may be conceded that there has been some divergence of judicial opinion upon this point in England, and that the cases are by no means easy to reconcile. But upon an examination of the authorities, to which we shall presently refer, the following rules will be found to be deducible:

    (i) Ordinary repairs are not payable out of capital monies; they must be borne out of income; but the Court may authorise an expenditure in the nature of repairs, for the preservation of the trust estate, in cases amounting to salvage. The cases of In re Leigh's Estate, Clarke v. Thornton, Exp. Barrett, In re Venour's Settled Estates, Drake v. Trefusis, In re Vicar of Queen's Camel, and In re Belfast Water Commissioners, afford illustrations of the first branch of this Rule; see also In re Montagu and In re Partington. As an illustration of the second branch of the rule, reference may be made to In re Aldred's Estate where the proposed expenditure which was sanctioned was found necessary to the preservation of the trust estate: see also Exp. Rector of Grimoldby.

    (ii) Where there is a right of re-entry or a statutory power of sale, if repairs are not done, the compensation money deposited in Court may, with its sanction, be applied for the purpose of repairs. As illustrations, reference may be made to In re Davie's Estate and In re Barney, where, if repairs had not been effected, action would have been taken by the authorities under the Metropolitan Building Act and the Public Health Acts, respectively. In the former of these cases which appears to be one of the earliest in which a question arose as to the true interpretation of section 69 of the Lands Clauses Consolidation Act, 1845, Knight Bruce, L.J and Turner, L.J, held that whether the case was or was not within the words of the Act of Parliament, it was plainly within its equity and spirit, and reference was made to an earlier case decided in the same manner by Lord Eldon.

    (iii) The purchase money of glebe lands or ecclesiastical lands may be applied in improvements and in the purchase of other lands. Illustrations of this rule may be found in Exp. St. Botolph and Brunskill v. Caird, while In re Nether Stowey Vicarage, Exp. Hartington, are cases on the other side of the line.

    (iv) The Court may order money in deposit representing the compensation for a church-yard to be applied towards the repair of the chancel or the chapel, and even to pay the Parliamentary costs of the Rector. An illustration of this rule will be found in Exp. Pennington.

    (v) Where rebuilding is necessitated by the dilapidated state of the buildings, the money in Court will not be applied to such rebuilding when the costs have already been met by the Rector: Williams v. Aylesbury Railway Co., Exp. Rector of Newton Heath, and In re Stock's Estate; on the other hand, Mathews v. Wilson is apparently an authority for the contrary view. The case of Vine v. Raleigh merely exemplifies the distinction between a trust to purchase land and a trust to effect repairs, while the cases of In re Gerard's Settled Estate and In re Thomas which turned upon the construction of the Settled Land Act, 1890, have no direct application to the case before us.

    The first and fourth of these rules show that the Court has repeatedly allowed part of the deposit money to be applied for repairs of the trust estate, specially when, but for such repaiis, statutory action might be taken against the trustee. That this position may be supported in this country on grounds of justice, equity, and good conscience is manifest. It is for the benefit of the community that the land is taken for public purposes. The principle on which this power is exercised was thus stated by Grotius in 1625 (De Jure Belli et. Pacis, Lib. IIIC, 20, sec. 7, Eng. Tr. 1738, p. 697; Whewell, p. 417): “The property of subjects is under the eminent domain of the State, so that the State or he who acts for it may use and even alienate and destroy such property, not only in the case of extreme necessity, in which even private persons have a right over the property of others, but for, ends of public utility, to which ends those who founded civil society must be supposed to have intended that private ends should give way. But it is to be added that when this is done, the State is bound to make, good the loss to those who lose their property.” Hence, as such power is exercised for the benefit of the public, interference with private right need not exceed the limits essential for that purpose and that purpose alone. Consequently, the Legislature has provided that when land belonging to a person with a qualified power of alienation has been acquired under the statute, the money should be held in deposit so that the ultimate beneficiaries may not be prejudiced. Money can be shuffled out of sight as land can not be. So long, therefore, as the property continues in the shape of land, the beneficiaries are amply protected against unauthorised alienation by the trustee; but if when the land has been converted into money, the funds are placed at the absolute disposal of the trustee, the beneficiaries may be left without adequate remedy, if the fund is improperly applied by the trustee. Consequently, as pointed out by this Court in the case of Mrinalini Dasi v. Abinash Chandra Dutt, even when land has been converted into money by reason of proceedings under the Land Acquisition Act, the money ought to be regarded as still impressed with the character of real estate: Kelland v. Fulford, Exp. Walker, In re Harrop's Estate, Midland Counties By. Co. v. Oswin, and In re East Lincolnshire By. Co.; as to the Last of these cases, see In re Tugnell. In other words, the position of the parties is by legal fiction deemed to be the same as if the land had never been converted into money; their rights and obligations are not affected by the transformation. But if this doctrine is maintained for the protection of the beneficiaries, it ought not also to be applied to fetter the trustee needlessly.

    This rule is recognised in other systems of jurisprudence as well founded on broad principles of justice, equity and good conscience. Thus, in the case of In re Board of Street Opening, the Supreme Court of New York held that where an award has been made for land of a lunatic taken for public purposes, the compensation money is to be treated as real estate for all purposes, so that the Committee would not be entitled to absolute possession; it would be retained in Court to be applied in the same manner and for the same purposes as the real estate might have been applied if it had never been converted into money: see also Exp. Van Vorst, Brown v. Borne By. Co., Peavey v. Wolfborough. The same question was raised in the case of Kearney v. Kean, where the land acquired belonged to a person who had not an absolute power of disposition over it. The Supreme Court held that the fund must still be considered as land and must be retained in Court to be dealt with in the Same manner as the land could have been treated if there had been no conversion.

    In the case before us, there is no room for controversy that if the land had never been converted into money it would have been competent to the shebait to alienate a portion of it for repairs essential for the preservation of the debuttar estate: Deva Siiamani v. Palaniyappa. It would therefore not be right to place such a construction upon the provisions of the Land Acquisition Act as would paralyse the management of the endowment. The cardinal principle is that the endowment is not to be prejudiced by reason of the transformation of the land into money; but such prejudice may result not only if the fund placed absolutely at the disposal of the shebait is misapplied by him, but also if the fund, treated as unalterably invested, is placed permanently beyond the reach of the shebait who can under no circumstances avail himself of a portion of it to meet the most urgent and paramount needs of the endowment. We are of opinion, therefore, that we should follow the principles deducible from the decisions on section 69 of the Lands Clauses Consolidation Act, 1845, and interpret section 32 of the Land Acquisition Act liberally so as to enable the Court to deal with the fund in its custody for the ultimate benefit of the endowment.

    It may be added that the second clause of section 32 may, if liberally interpreted, seem at first sight comprehensive enough to cover the case before us. The statute provides that the money is to remain deposited and invested until it can be applied either in the purchase of other lands or in payment to any person becoming absolutely entitled thereto. The language of this provision would, however, be unduly strained if we were to hold that a shebait becomes absolutely entitled to such portion of the fund as may be needed for the protection of the debuttar estate. The corresponding expression “absolutely entitled to such money” in section 69 of the Lands Clauses Consolidation Act, 1845, has been interpreted to mean “entitled to his or her own use”: Kelland v. Fulford. A trustee can, therefore, be hardly regarded as a person absolutely entitled, and the decision in In re Hobson's Trust, which supports the view that trustees may be treated as persons absolutely entitled, was doubted in In re Smith. It is worthy of note, however, that in Exp. Trustees of Tid, the Court allowed the purchase money of charity property acquired by a Railway Company to be paid to the trustees of the charity: see also In re Lathropp's Charity, and Mayor of Sheffield v. Trust es of St. William's School. On the other hand, the Court ordered the fund to be invested and the dividend to be paid out to the treasurer of the charity in Exp. Governors of Norfolk Clergy, while in In re Faversham Charities, it was ruled that the proceeds of the sale of charity lands could not be paid out of Court to the trustees of the charity without the consent of the Charity Commissioners: see also In re Spurstoive's Charity, In re Hobson's Trust, Exp. St. Alphege, and In re Clergy Orphan Corporation. On the whole, we are inclined to the view that a shebait cannot rightly be described as a person absolutely entitled to the fund even when it is established that part of the fund is needed to be applied for the protection of the debuttar estate. The shebait, even if the fund is placed at his disposal, can apply it only for the purpose of the endowment, and cannot, therefore, be properly described as a person absolutely entitled thereto. We, therefore, prefer to rest our decision on the ground that the case falls within the first clause of section 32 of the Land Acquisition Act, interpreted in the light of the decisions on section 69 of the Lands Clauses Consolidation Act, 1845, from which the provisions of the Indian Statute have been borrowed.

    The learned vakil for the opposite party has, however, contended that in any view of the matter, the Land Acquisition Judge has no jurisdiction to deal with an application of this kind, and he has suggested that the proper course for the shebait to adopt is to bring a suit in the Civil Court. There is, in our opinion, no substance in this contention. In the first place, if the literal construction suggested on behalf of the opposite party is adopted, and if it is ruled that the compensation money must remain deposited and invested till it can be applied in the purchase of other lands, in the strict sense of the expression, a suit for declaration that in the events which have happened a part of the fund can be applied for the protection of the endowment, would be futile, for no Court would be competent to make a decree in contravention of the provisions of the statute as interpreted by the opposite party. In the second place, it is difficult to appreciate against whom such suit could be brought. It has been suggested that the person next entitled to succeed to the office of shebait may be joined as defendant; but it is conceivable that such person might not be in existence at the time when the contingency happened. Moreover, if such person gave his consent to the application of the fund, the position would not be improved. The concurrence of two persons, each of whom when in office has a qualified right of alienation, cannot strengthen the position of either of them.

    But the learned vakil for the opposite party has further contended that as section 32 does not expressly define the mode in which an application of the character now before us should be made and entertained, the Court has no jurisdiction to take cognizance of the matter. We are unable to give effect to this contention as well founded. It is possible that the precise contingency, which has happened in this case, was not contemplated by the framers of the statute. But upon first principles the position may be justified that as under section 32 the fund is placed in the custody of the Court, jurisdiction is by implication conferred upon the Court to deal with all questions that may arise as to the application of the fund in its custody. The true maxim of our law is, as Lord Abinger said in Russel v. Smyth, to amplify its remedies and without usurping jurisdiction to apply its rules to the advancement of substantial justice. Again, as was pointed out by Domat in a well-known passage (Civil Law, 12, 17), quoted in the judgment of this Court in the case of Mrinalini Dasi v. Abinash Chandra Dutt, “Since laws are general rules, they cannot regulate the time to come so as to make express provisions against all inconveniences which are Infinite in number and that their dispositions should express all the cases that may possibly happen. It is, therefore, the duty of the Judges to apply the laws not only to what appears to be regulated by their express dispositions, but to all the cases where a just application of them may be made, and which appear to be comprehended within the express sense of the law or within the consequences that may be gathered from it.” The Land Acquisition Judge has obviously jurisdiction to make an enquiry when a claim to the fund is put forward by a person who asserts that he has become entitled thereto, or when it is suggested that suitable land is available for the purchase of which the fund may be applied. On the principles explained above, we must therefore hold that the Land Acquisition Judge has ample authority to deal with the question under consideration, and to pass such orders in the matter as the interests of justice demand. In our opinion the conclusion is irrevitable that the application by the shebait to withdraw a portion of the compensation money in deposit must be erttertained and investigated on the merits.

    It is now necessary to give directions as to the manner in which the enquiry should be conducted, and the lines on which the final order should be given. Some guidance in this respect is afforded by the procedure adopted in the case of In re London County Council, Exp. Pennington. The Court will first take evidence as to the truth or otherwise of the allegations made in the petition of the shebait. Possibly, one expert witness on the side of the petitioner and another on the side of the objector may be sufficient for the purpose, though we do not desire to hamper the discretion of the lower Court in this matter. As the properties in question are situated at a short distance from the Court premises, it is possible that a local investigation by the learned Judge himself might facilitate the determination of the question of the present condition of the debuttar properties.

    If it is proved that the debuttar properties need repairs and improvements, such as cannot be effected out of the current income, the shebait should be called upon to submit an estimate of the cost by a reliable Arm of contractors; the objector must be afforded an opportunity to examine, and, if necessary, to challenge the estimate. After the estimate has been settled by the Court, the work will be entrusted (on a formal contract) to a firm of contractors selected or approved by the Court; and as the work progresses, such portion of the fund in deposit as may be needed for the purpose will from time to time be paid to the contractors.

    We observe in this connection that it is alleged in the petition of the shebait that part of the property is in such an insanitary condition that action has been taken by the Calcutta Municipal Corporation, and she has already been fined. If this is established, suitable steps must be taken for the improvement of the property; and in this contingency the case will fall within the first and second rules laid down above. On behalf of the objectors it has been stated, on the other hand, that they apprehend that, as the shebait is a purdanashin Hindu lady advanced in years, the work of repair and improvement cannot, possibly, be supervised by her personally; and that, if any large sum is placed at her disposal, it may be misapplied by her advisers and dependents who, it is alleged, are impecunious. We are not in a position to express any opinion as to the truth of these allegations. The Judge will be able to pay the contractors after calling for a report from some expert, and this procedure should be noted in the contract to execute the work. The Court has ample power to give suitable directions, so that a proper contract to complete the repairs and to effect the necessary improvements on the property may be made, verified, and carried out under its guidance. To enable the Court to determine what sum should, be spent for the purpose, three elements must be taken into consideration, namely, first, the present condition of the property; secondly, the income of the endowment and the surplus left there out after payment of the current expenses; and thirdly, the amount of compensation money in deposit. To sum up, the test to be applied is, whether the work undertaken is essential for the ultimate benefit of the endowment.

    The result, therefore, is that this Rule must be made absolute, and the order of the Court below discharged. The case will be remanded to the Land Acquisition Judge, in order that he may deal with it on the lines indicated in this judgment. The costs of the Rule will abide the ultimate result of the proceedings in the Court below.

    S.C.G
    Rule absolute.

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    Kamini Debi v. Pramatha Nath Mookerjee
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