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SHRI MITHOO SHAHANI AND ORS. versus UNION OF INDIA AND ORS.

Citation: [1964] 7 S.C.R. 103 · Decided: 10-03-1964 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Dismissed

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Judgment (excerpt)

7 S.C.R. 
SUPREME COURT REPORTS 
SHRI MITHOO SHAHAN! AND ORS. 
v. 
UNION OF INDIA AND ORS. 
103 
[P. B. GAJENDRAGADKAR, C. J., K. N. WANCHOO, J.C. SHAH, 
N. RAJAGOPALA AYYANGAR ANDS. M. S!KRI JJ.] 
Evacuee Property-Land Allotted to respondents-Subse-
quently the same la~d allotted to appellants-Sanad issued to 
appellants under the Act-Allotment in favour of the appel-
la;1t s2t aside-Can sanad subsist when allotment set aside-
Displaced Persons (Compensation and Rehabilitation) Act, 1954 
(Act XLIV of 1954), s. 33. 
The appellants and the five raspondents were 
displaced 
persons. The Deputy Custodian of Nizamabad District allotted 
about 60 acres of lrnd to the five respondents. The allotment was 
by way of lease. There \Vas no condition imposed upon them 
that they should cultivate the lands personally. While the lease 
\Vas continuing in force, the Government of India issued a Press 
Note on November 13, 1953 by which they announced that they 
had decided to allot evacuee agricultural land in Hyderabad 
State to displaced persons whose claims for agricultural land had 
been verified under the Displaced Persons (Claims) Act, 1950. 
The appellants made an application in pursuance of this notifi-
cation and on May 4, 1954 the land now in dispute, though under 
a subsisting lease in favour of the respondents, was allotted to 
them. 
In the rnean time the Displaced Persons (Compensation 
Jnd Rehabilitation) Act, came into force on October 9, 1954. 
Under Section 20 of this Act, the Regional Settlement Com· 
missioner issued Sanads in favour of appellants in respect of 
these lands. Both the appellants and the respondents claimed 
these disputed plots. The matter went up to the Deput,· Chief 
Settlement Commissioner. He referred the case of both parties 
to the Government of India for action under s. 33 of the Act. 
The matter was considered under s. 33 of the Act b,· tho 
Deputy Secretary in the Rehabilitation Ministry "'r.o upheld 
the contentions of these respondents. The result was 'that the 
allotment made in favour of the appellants was set aside. It 
is the legality of this or<ler that is challenged in this appeal. 
Held-(i) The order of the Central Government was covered 
by s. 33 of the Act as one dealing with and rectif~;ing an error 
committed in relation to a "thing done or aclion taken'' \vith 
respect to a rehabilitation grant to a displaced person. Not 
merely the order of the R"gional Settlement Commi,sioner 
but the entire question as to whether the respondents as ori-
gional allottees by way of lease were entitl"d to the relief of 
restoration was referred to the Central Government bv reason 
of the order of the Deputy Chief Settlement Commissioner. 
Both }he parties were heard on all the points by the Central 
Government before the orders were passed and it would not 
therefore be right to consider that the matter in issue before 
the Central Government was namely the correctness of the 
order of the Regional Settlement Commissioner, which read in 
vacuo might not be comprehended within s. 39 of the Act. 
(ii) It is manifest that a Sanad can be lawfully issued 
only on the basis of a valid order of allotment. If an order 
of allotment wh'ch is the ba•l'.s upon which a grant is made 
1964 
.~larclt 10 
104 
SUPREME COURT REPORTS 
[1964) 
l964 
is set aside it would follow, and the conclusion is inescapable 
Mitlwo Shaha . that the grant cannot survive, because in order that grant 
and Othe" · 
n• should be valid, it should have been etrected by a competent 
v. 
o'.licer under a valid order. If the validity of that order is 
Union of India and effectively put an end to, it would be impossible to maintain 
Othera 
unless there were any express provision in the Act or in the 
rules, that the grant still stands. On the facts of this case it 
was held) that where an order making any allotment was set 
aside the title which was obtained on the basis of the conti-
nuance of that order also fell with it. 
Ayyangar, J. 
Partuma! v. Managing Officer, Jaipur, I.L.R. 11 Raj. 1121, 
distinguished. 
Balu;ant Kaur v. Chief Settlement Commissioner (Lands), 
I.L.R. [1964] Punjab 36, approved. 
av1L APPELLATE JURISDICTION: Civil Appeal No. 552 
of 1963. Appeal by special leave from the order dated April 
28, 1960 of the Deputy Secretary to the Government of India, 
Ministry of Rehabilitation, New Delhi, purporting to exer-
cise the powers of Revision under s. 33 of the Displaced Per-
sons (Compensation of Rehabilitatio

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