COLONEL HIS HIGHNESS SAWAI TEJ SINGHJI, MAHARAJA OF ALWAR versus THE UNION OF INDIA & ANR.
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A B 62 COLONEL HIS HIGHNESS SAWAI TEJ SINGHJI, MAHARAJA OF ALWAR v. THE UNION OF INDIA & ANR. October 6, 1978 [Y. V. CHANDRACHUD, C.J., R. S. SARKARIA, N. L. lh!TWALIA, A. D. KosnAL AND A. P. SEN, JJ.] Constitution of India 1950-Art. 363-Covcnants agreeing to merger of princely states-Provision in Covenants that any dispute relating to any jtem- C of property of Ruler or state property to be referred for decision to a nominee of Government of India and such decision shall be final and binding on all concerned-C@nzrnunication of the Govern1nent of India t~ the effect that the settlen1ent of the inventory of properties lVas an integral part of an overall agreement in respect of all outstanding 1natters of dispute-fVhet!ier such •decision• an agreement and could be enforced by the Ruler-Bar to ;urisdic· lion of Civil Courts under Art. 363. D The appellant who was the Ruler of a princely state entered into a cove- nant agreeing to merge his state into a union called the United States of Matsya. The Matsya Covenant, by Art. XI Cl. (2) provided that the ruler of each state shall furnish to the Raj Pramukh an inventory of all the im- movable properties, securities and cash balances held by him as private property and cl. (3) provided that if any dispute arose as to whether E any item of property was the private property of the ruler or the state property it shall be referred to such person as the' Government of India may nominate and the decision of that person shall be final and binding on all parties. The appellant furnished an inventory of all propertfes claimed to be his private property. Sometime later the rulers of the const.ituent States of Matsya entered into a Covenant with the Rajpramukh of the United State of Rajasthan for nlerger of· their ,States into the F State of Rajasthan in abrogation of the 1'1atsya Covenant. The Rajasthan Covenant by Art. XII, CL (2) provided for the s~ttle1ne11t of '.lny dis- pute as to \vhether t.he property was private property or state property by reference to such person as the Government of India may nominate in con3t1ltation \Vith the Rajpratnukh and tha.t the decision of such per<>on shall be final and binding on the parties. G The ~finistry of States, Government of Indin wrote on 14th September. 1949 to the appellant that the settlement of the inventory was an integral par1 of an overall agreement in respect of all ou!.standing matters of dispute and did not stand by it~elf. After correspondence with the Government of India the appellant received a \Vritten communication intimating the decision of the Go·•ernnicnt of India in respect of 25 items of the ~roperty_ ff The rippellant claimed that four buildings wh~ch wer~ in occupation of the State Government had been declared as his private properties in the inventory appended to the letter of the Government of India and that the State Govern- . . • ' ,. TBJ SINGHJI V. UNION 63 ment should pay rent to him in respect of those buildings. This claim of the BoPpellant hnving been rejected, he filed a suit in the district court for a declaration that the properties were his private properties and that the respon- dents should be ordered to pay rent to him. A. The suit \Vas transferred by the High Court to itself. The High Court dismissed the suit on the ground that adjudication of the dispute was barred by Art. 363 of the Constitution. B ·• In appeal to, this Court it was contended that the letter of 14th September, 1949 wns the result of a decision arrived at in pursuance of cl. (3) of Art. XI of Matsya Covenant and cl. (2) of Art. XII of the Rajasthan Covenant and n1ust be construed as a decision of the Government \)f Jndia. Dismissing the appeal, HELD : 1. The decision sought to be enforced is an agreement hit by Art. 363 of the Constitution and the High Court was right in dismissing the suit. [74H] 2. The so-called decision was nothing but ::.·n agree1nent bet\veen the Gove1 nrnent of Jndin and the appellant. The Letter dearly stated th<tt the inventory furnished by the plaintiff was discussed with him at New De1h1 and that a copy of the final inventory of the appellant's private properties. which had the approval of the Government of India in the Ministry of States, was forwarded to him. Under clause (3) Art. XI of the Mat~ya Cvvenant as also clause (2) of Art. XII of the Rajasthan Covenh11t, no approval of the Ministry
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