ESTATES DEVELOPMENT LTD. versus UNION OF INDIA & ORS.

Citation: [1970] 2 S.C.R. 534 · Decided: 22-09-1969 · Supreme Court of India · Bench: J.C. SHAH · Disposal: Appeal(s) allowed

Judgment (excerpt)

5;<\4 
EST1TES DEVELOPMENT LTD. 
A 
v. 
UNION OF INDIA & ORS. 
September 22, 1969 
[J. C. SHAH, V. RAMASWAMI AND A. N. GROVER, JJ.J 
B 
Displaced Persons (Compensation and Rehabilitation) 
Act 
(44 of 
1954), s. 24(2)--0rder of Cheif Settlen1ent Co1n1nissioner-Conditio11s 
precedent for makh1g. 
By a ~ale deed executed Oi;. November 24, 1944 the appellant compan\· 
purchased certain land located in an area now part of \Vest Pakistari. 
Aiter the partition of Indi:i, the con1pany, on the basis of a registered 
C 
sale deed, was allotted certain land in Kapurthala in 1950 in lieu of the land 
abandoned in Pakistan. 
On a report made by the Managing Officer, Re~~ 
pondent No. 3 on August 30, 1960 recommending cancellation of the 
allotment of land to the company and after hearing the company, the chief 
Settlement Commissioner rejected the registered sale deed and came to the 
.conclusion that at the time of partition the company did not own any land 
in Pakistan nor was it in occupation of any such land. 
Therefore by his 
order dated February 27, 1961, he set aside the permanent rights acquired 
D 
by the company. 
-JIELD : The order of the Chief Settlement Commissioner 
must 
be 
quashed on the ground that there is no finding of the Chief Settlement 
Commissioner that the company had obtained allotment of the land "h)' 
means of fraud. false representation or concealment of any n1aterial fact"' 
\Vithin the n1eaning of s. 24(2) of the Act. 
It is true that the 
Chief 
Settlement Commissioner had recorded a finding that the company had not 
E 
proved its title tn any land in the area nqw part of Pakistan and the 
allotn1ent was "undeserved''. Bui this is not tantamount to a finding that 
the allotment h::i.d b.:cn ohtained by a false representation or fraud or con-
cealment of material facts. 
Such a finding is a condition precedent for 
taking action under s. 24(2 l of the Act. The condition imposed by the 
section is mandntorv and iil the absence of :iny such finding the Chief 
Settlement Commissioner had no jurisdiction to c:incel the allotmc-nt madi.:-
to the company under s. 24(2) of the Act. [537 A-DJ 
F 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1576 of 
1966. 
Appeal from the judgment and ordered dated October 26. 
1965 of the Punjab High Court in Letters Patent Appeal No. 17-t 
of 1964. 
c 
Bishan Narain, S. K. Mehta and K. L. Mehta, for the appel-
lant. 
Harbans Singh and R. N. Sachthey, for the respondents. 
The Judgment of the Court was delivered by 
Ramaswami, J. In the month of August, 1942 the appellant· 
company (hereinafter called the Company) was incorporated 
with its registered office in the city of Jullundur dealing in sale 
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B 
c 
D 
E 
F 
G 
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ESTATES DEVELOPMENT LTD. v. UNION (Ramaswami, J.) 
535 
and purchase of land as its substantial business. 
By a sale deed 
executed on November 24, 1944 the company purchased 646 
kama!s, 9 marlas of land from Harjit Singh for 
a sum of 
Rs. 32,326/-. The land was located in village Monanpura of 
District Sheikupura, now in West Pakistan. 
Out of the considera-
tion for the sale, a sum of Rs. 9,000/- was left with the company 
for payment to the previous mortgagees and the balance of the 
money was paid to Harjit Singh before the Sub-Registrar at the 
time of registration. 
On the basis of the registered sale deed the 
company was allotted 27 standard acres and 11 t units of land in 
village Bohani, Tehsil Phagwara District Kapurthala in the year 
1950 in lieu of the land abandoned in Pakistan. 
A sanad no. 
K2/ 4/8 dated March 9, 1950 was issued in favour of the com-
pany. 
There was consolidation of holdings in village Bohani and 
as a result of consolidation the area allotted to the company came 
to 23 kanals and 5 marlas. 
Out of this the company sold 9t 
kanals to Mohan Singh, a Jat of village Bohani for Rs. 1900.00 
by registered sale deed dated May 22, 1956. 
Another portion of 
220 kanals and 15 marlas was sold on September 12, 1958 for 
Rs. I 0,012/- to one Mehnga Singh and his sons. 
It was later 
discovered that the company had been allotted less area of land 
than it was entitled to as a result of consolidation operations and 
so an additional area of 24 kanals was allotted to the company in 
village Bohani to make up the deficiency. 
On August 30, 1960 
the Managing Officer, respondent no. 3, made a report, Annexure 
C, to the Chief Settlement Commissioner, Respondent no. 2 re-
commending cancellati;m of the allotment of 

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