TRIBHUBAN PARKASH NAYYAR versus THE UNION OF INDIA

TRIBHUBAN PARKASH NAYYAR

THE UNION OF INDIA October I 0, 1969

[J.' M. SHELAT, C. VAIDIALJNGAM AND I. D. DUA, JJ.]

Displaced Persons (Claims) Act, 1950-Displaced Persons (Clain1s) Supplementary Act, 1954-Section 5(1)(b)-Revisional Powers of Chief Settlement Commissioner-If extends to niatters 1vhich had beco111e finai under the 1950 Act-Scope of power-Di~placed Persons (Verifica:ion of Claims) Supplementary Rules, 1954-Rule 18, cl. (iv)-If can be cons· trued ejusdem generis.,

Th~ nppeI:ant, displaced person from \Vest Pakistan, subn1itted his claim under the Displaced Persons (Claim5) Act of 1950 in re!ip.::ct of the' property left by him there The Claims Officer verified the claim for Rs. 8 lacs. The Claims Commissioner, in revision, raised the value of the verified claim to Rs. 10 lacs. The Settlement Commissioner, exercis-ing the revisional po\vers of the Chief Settlement Comn1i;sioner under the Displaced Persons (Claims) Supplementary Act, 1954, reduced the claim of Rs. JO lacs to Rs. 15,000. In writ petition filed by the appellant single Judge of the High Court quashed the order of the Settlement Com-missioner holding that there were clear errors of la\v on the fact of the record. It was left open to the department to reconsider the matter as to evaluation and come to proper conclusion on evidence. Let:erJ Patent Bench reversed the o'der of the single Judge and dismissed the writ petition. In appeal to this Court it was contended that: (i) the order of the Se:tlement Commissioner was vitiated by errors of law on the face of the record; (ii) the Settlement Commissioner exercising the powe~ of the Chie'f Settlement Commissioner under the Supplementary Act had no jurisdicti9n to revhe the order made by the Claims Commission:r eo:er-. cising revisional power under the Act of 1950; (iii) the po\\'er of re\'i..:;ion_ conferred on the Chief Settlement Commissioner by section 5(1) (h) of the Supplementary Act \Vas restricted to the verification of the claim ~.nd its valuation was outside its purview and (iv) the po,ver was circum5crilJ.: ed within the four~corners of rule 18 of the Displaced Persons (Ver!fica-tion of Claims) Supplementary Rules, 1954. Allowing the appeal,

HELD: {i) The learned single Judge \Vas right in his cont:lu5ions. The order and the material on record show that the Settlement Commis-sione·r had, at more places than one, based his conclusions on pure con-jectures and surmises without there being any legal evidence ·on the rec,Jrd to support them. (ii) The language used in Section 5(1)(b) of the Supplementary Act is unambiguous and it clearly empowers the Chief Settlement Commis-sioner, subject to· any rules that may be made, to revise any verified claim and make such orders in relation thereto as he th!11ks ·fit. On plain reading of the section in the light of the defir:~ion of the expre~sion "verified claim" and the st:itutory scheme •. the Chief Settlement Commis-sioner's special po1Ver of revision would exteud to suo 1notu revision of the verified claims which had become final under the Act of 1950 as result Of orders made by the Claims Con1missioner on revision. The use 1of the words "revised any verified claim' seem prima facie to extend the power of revision also to verified claims bearing the stamp of scrutiny by the Chief Settlement Commissioner. There being no doubt as to the mean-

fog of s. 5 ( 1) (b) the preamble cannot be used to control or qualify its unambiguous language. [737 A-Fl

(iii) The definition of verified claim in s. 2(f) elf the Supplementary kt speaks of the final order arid it includes valuation. The Claims Officer under the Act has also to value the claim and the final order embraces. both ve·rificatfon o'f title and valuation. [738 G-HJ '

(iv) The categories contained in clauses (i) to (iii) of"rule 18 do .not form genus or class with the result that the expression other su.!fi.c1ent reason" occurring in cl. (iv) of. this rule would not attract the e1usdem generis rule for its constrbction. But a5suming that the first t~ree ~Jaus~ eonstitute class or kind of objects or genus, the grounds given ~y th.e Settlement Com.missioner are analogous to cl. "(iii) which speaks o:.t gross and material irregularity and disparity in the evaluation of the claim. [741

[The case was remitted to the Chief Settlement Commissioner for freSh decision in accordance with law.] ·

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1568 of. 1966.

Appeal from the judgment and order dated September 9, 1964 cif the Punjab High Court, Circuit Bench at Delhi in Letters Patent Appeal No. 2-D o.f 1963.

, K. L. Gosain, K. L. Mehta, D. N. Bhasin, S. K. Mehta. lnder, jeet Gulati and .Sona Bhatiani, for the appellant.

B. Sen and S. P. Nayar, for foe resnondent.

The Judgment of the Court was delivered by Dua, J.

Dua, J. The appellant, displaced person from Lahore, now in West Pakistan, submitted his claim in respect 0f the immovable property left by him there. The claim was submitted under the provisions of the Displaced Persons (Claims) Act XLIV of 1950 (hereaft~r called the principal Act). The pro-perty in respect of which the claim was submitted was valued 'p by the appellant at Rs. 10 lacs.. It consisted of building 2! storeyed high. with 12 shops and well as also some plat.-form etc. in Landa Bazar, in Lahore. The Claims Officer yerified this claim for Rs. 8 lacs. Against this order revision Was taken by the appellant to the Claims Commissioner who on May l, 1953 in brief order raised the value of th~ verified claim to Rs. 10 lacs. The relevant part of that order reads as under:

"I have . gone through the order of the learned Claims Officer and I find that he has given :;ueer argument to allow Rs. 8,00,000/- to the claimant. By every m~thod tried by him the assessment went beyond Rs. 10,00,000/- and I think he ought to have allowed Rs. 10,00,000/- as claimec by the claimant. I enhance the ass·essment and allow Rs. 10,00,000 /-to· tte claimant."

We would assume that the Claims Commissioner had been duly delegated the power of the Chief Claims ·Commissioner to revise the order of the Claims Officer, because no dispute was raised on this point. On the strength of the verified claim the appel-lant purchased two properties in Delhi at public auction; one of them is situated in Daryaganj and the other in New Rajinder Nagar. On Jl<ovember 8, 1957 Shri M. S. Chaddha, Settlement Commissioner, exercising power of the Chief Settlement Commissioner issued to the appellant notice under the Dis-placed Persons (Claims) Supplementary Act, 1954 calling upon him to show cause why the order of the Claims Commissioner dated May I, 1953 be not revised and varied. On May 23, 195 8 the said officer reduced the appellant's claim of Rs. I 0 lacs to Rs. 15,000/-. The appellant then filed writ petition under Art. 226 in the Punjab High Court challenging the order reducing the valu.e of his claim. · learned Single Judge on November I, 1962 allowed the writ petition holding that the learned Settlement Commissioner exercising the power of the Chief Settlement Commissioner had proceeded to deal with the value of the property on wholly conjectural grounds. In detailed order the learned Single Judge came to the conclusion that the Settlement Commissioner had not only ignored impor-tant evidence but had also held certain documents to be forged without any evidence in support of the fillding. In the opinion of the learned Single Judge, therefore, there were clear errors oi law on the face of the record rendering the order of the Settlement Commissioner open to challenge in writ proceedings in the High Court. On this view the order was set aside and quashed. It was, however, observed that it would he open to the department to reconsider the entire matter a, to valuation and come to proper conclusion on evidence.

The respondent took the matter on apptal to Division Bench under the Letter Patent and the Letters Patent Bench reversed the order of the learned Single Judge holding that on reading of the order of the Settlement Commissioner it could not be said that his finding was based on no legal evidence. The appeal was accordingly allowed and setting aside the order of the learned· Single Judge, the appellant's writ petition was dis-missed. The appellant has come to this Court on appeal with certificate.

On behalf of the appellant two main points were raised before us. It was contended, in the first instahce, that Shri M. S. Chaddha, while exercising the power of the Chief Settlement Commissioner, had no jurisdiction to revise the order made by the Claims Commissiorer exercising the revisional power of the Chief Claims Commissioner under the principal Act. Secondly,

it was contended that there was clear error of law apparent on the face of the record with the result that the learned Single Judge was fully justified in quashing the order of •he Settlement Commissioner, and that the Letters Patefit Bench was in error in a!lowing the app.eal. While developing this ground of attac~ the counsel also submitted that in exercising the power of revi-B sion the Settlement Commissioner could not interfere with con-clusions of fact and that he had, therefore,· exceeded his juris-diction in so doing.In order to examine the first submission we have to turn to the provisions of the Principal Act and of the Displa;,ed Persons (Claims) Supplementary Act 12 of 1954 (hereafter called the Supplementary Act). The principal Act, enacted with the obje,: · of providing for the registration: and verification of claims of displaced persons in respect of immovable property in Pakistan, was brought on the statute book on May 18, 1950 and was initially to remain in force for period of two years only. Its life was extended by further period of one year by means of an amendment in 1952. On the expiry of the third year the Dis-pl11ced Persons (Claims) Supplementary Ordinance No. 3 of 1954 was promulgated pending the passage by the Parliarr.ent of the bill which later emerged in the shape of Supplementary Act. The Ordinance was enforced on January 18, 1954. The supple-mentary Act was enacted, as its preamble shows, to provide for the disposal of certain proceedings pending under the principal Act and for matters connected therewith. We have specifically referred to the preamble because on behalf of the appellant strong reliance was pkced on the preamble in si•pport of his construction of ss. 4 and 5 of the supplementary Act, which deal with the revisional power of the Chief Settlement Commis-sioner appointed under this Act. It is not disputed at the bar that this Act was primarily designed to finalise the disposal of certain proceedings pending under the principal Act at the time of its expiry. According to the appellant the words "for matters connected therewith" in the preamble are intended to have the effect of restricting the ambit of its provisions exclu-G sively to the proceedings actually pending on the date of the expiry of the principal Act, whereas, according to the respondent these words demand liberal construction so as to bring within the fold of tbe Act all proceedings initiated for the registration of claims, notwithstanding the fact that final order of verifica-tion and valuation had already been made thereon. The res-H po1;1dent also placed strong reliance on the language used in s. 5 which, he argued, is plain and unambiguous and its ambit cannot be restricted by the Preamble. That section reads as under:

"Special power of revision in respect of cases decided under Act XLIV of 1950.

"Explanation-For the purposes of this clause, an applica-tion for revision shall be deemed to be or to have been made within time, if-

(i) such application was not barred by limitation on the appointed day under the rules made under the principal Act and is filed within one month from the commencement of this Act; or (ii) such applicaiton had been filed before the appointed day and was not, on the date on which it was filed barred by limitation under the rules made under the principal Act; (b) may, on his own motion, but subject to any rules that may be made in this behalf, revise any verified claim and make such order in rela-tion thereto as he thinks fit. No order varying the decision of the Clairos Officer or revising any verified claim which pre-., affects be made

(2) No order varying the decision of the Clairos Officer or revising any verified claim which pre-judicially affects any person shall be made without giviqg an opportunity of being heard."

This special power of revision was conferred on the Chief Settlement Commissioner in addition to the ordinary power · of revisio11. conferred by the proviso to s. 4(3) which was similar to the power of revision conferred on the Chief Claims Commis-G sioner under the principal· Act. The suo motu power to revise verified claims, according to the appellant's learned counsel, was designedly vested in the Chief Settlement Commissioner, he being the final authority under the supplementary Act. But this power, argued the counsel, was not intended to extend to pro-ceedings, which could not be considered to be pending under the principal Act. This argument was sought to be founded on the Pleamble of the supplementary Act. verified claim which had lieen subjected to scrutiny by the Chief Claims Commissioner and

T, P. NAYYAR v. UNION (Dua, J.)

.A bore that officer's seal under the principal Act, according to the appellant's counsel, could not be described to be matter peµding under the principal Act and revision of such claim cohld not be held to be matter connected with pending proceeding.

The object and purpose of preamble to statute is well settled and at the bar before us there was no serious dispute on this point. preamble is key to open the mind of the legis-lature but it cannot be used to control or qualify precise and unambiguous language of the enacttnent. It is only when there is doubt as to the meaning of provision that recourse may be had to the preamble to ascertain the reasons for the enactment and hence the intention of the Parliament. If the language of the enactment is capable of more than one meaning then that one is to be preferred which comes nearest to the purpose and scope of the preamble. In other words, Preamble may assist in ascertaining the meaning but it does not affect clear words in statute. The courts are thus not expected to start with the preamble for construing statutory provision nor does the mere fact that clear and unambiguous statutory provision goes beyond the preamble give rise, by itself, to doubt on its meaning.

Now the language used in s. 5(1)(b) of the supplementary Act is unambiguous and it clel!flY empowers the Chief Settlement Commissioner, subject to any rules that may be made, to revise any verified claim and make such orders in relation thereto as he, thinks fit. verified claim, as defined in s. 2(f) of the Supplemen- · · tary Act, means any claim registered under the principal Act in respect of which final order has been passed under that Act. Now it is difficult to contend that on plain reading of s. 5(l)(b) in the light of the definition of the expression "verified claim", the Chief Settlement Commissioner had no ·power suo motu to revise claim on which final order had been passed under the principal Act by the Chief Claims c_ommissioner: ~! may be pointed out that according to the- statutory' scheme, urider· s. 5(1) (a) of ,the Supplementary Act an aggrieved party is entitled to apply to the Chief Settlement Commissioner for revision of deci-sions of the Claims 'Officers and there is adequate· provision for safeguarding the interests of the aggrieved parties from any possi-ble injury by. reason of lapse :if time. The difference in the language used in clauses (a) and (b) of s. 5(1) t.'rrows sufficient· light on the legislative intent. The use of the words "revise any verified claim" seems prima facie to extend the power of revision also to verified claims bearing the stamp of scrutiny by the Chief Settlement Commissioner. Had the Parliament intended· this power to be restricted, as suggested on behalf of the appellant,then it would have expressed such intention in clear words. The statutory scheme also supp<irts this view. Under the proviso t<> s. 4 ( 3) the Chief Settlement Commissioner' has suo motu power of revision from the deci;,10ns of the Settlement Officers and under s. S(l)(a) he has the power of revision on applications by aggriev-ed parties from the decisions of Claims Officers. But under s. 5 ( 1) (b) the suo motu power of revision does not extend to all decisions but is confined only to verified claims though in this respect it takes within its fold all such claims and is not restricted to foe claims verified only by the Claims Officers. On plain reading of s. 5(1)(b), therefore, the Chief Settlement Commis-sioner's special power of revision would seem to us to extend to suo motu revision of the verified claims which had become final under the principal Act as result of orders made by the Chief Claims Commissioner on revision. Neither any statutory bat nor any precedent has been cited against the exercise of this power; nor has any principle been brought to our notice which would induce us to restrict the plain language of s. S(l)(b). The submission that an order made on revision can in no case be subjected to further revision, is also unacceptable on the statutory scheme and language. . No constitutional bar to further scrutiny of such orders on revision was pointed out. It may in this connection be borne in mind that verification of claims· under the principal Act involved proof in regard to title to, and value of, property left by the displaced persons in' West Pakistan; and this had to be completed within period of, originally, two years which was later extended by one year. The best evidence in this respect was only available in West Pakistan, and it is matter of common knowledge that it was not easy for an average displaced person to secure such evidence. Chances of errors in verification and valuation of claims, in these circumstances, being not too few, the highest authority was advisedly in larger public interest vesteil with wide power to review and reassess such verified claims. It was then conten(ied that the power of ·revision under s. S(l)(b) is restricted to the verification of the claim and its valuation is outside its purview., This cont:~ntion is difficult to accept. It is true that "claim" as defined in the principal Act broadly speaking means the assertion of right to ownership of, or to any interest in, immovable property. But the Claims Offi-cer under that Act has also to value the claim and the final order embraces both verificaiion of title and valuation. . The definition of "verified claim" in s. 2(f) of the supplementary Act speaks of the final order and it includes valuMiOn;

This takes us. to the submission that tlie power of revision of the Chief Settlement Commissioner is circumscribed within the

four corners of r. 18 of the Displaced Persons (Verification of Claim) Supplementary Rules, 1954. This rule, of course, spe· cifically controls the exercise of the power of revision conferred bys. 5(1)(b) and this is not disputed. Rule 18" is in the following terms:

"Special revision of verified claims under clause (b) of sub-section (1) of section 5.

18. The Chief Settlement Commissioner may, while exercising the powers of special revision conferred on him by clause (b) of sub-section (1) of section 5, call for the record of any verified claim and may pass any order in revision in respect of such verified claim in such manner as he thinks fit, if he is satisfied that such order should be passed on one or the other of the following grounds, namely :-

( i) the discovery of any new matter or documen-D tary evidence which after the exercise of due diligence was not within the knowledge of or could not be produced by the claimant at the time when the claim was verified; or

(ii) correction of any clerical or arithmetical mis-take apparent on the face of the record; or

(iii) gross or material irregularity or diSparity in the valuation of the claim; or

(iv) any other sufficient reason :

Provided that the' Chief Settlement Commissioner shall not entertain or take into consideration any appli· cation or represeuation made to him under this rule by any claimant if such application or representation is made after tll.e 30th day of April, 1954."

It was contended that the grounds on which the Chief Settlement Commissioner revised the verified claim do not fall within the first three clauses of this rule. The fourth clause, according to Shri Gosain's argument, must be read ejusdem . generis and so read this clause wouldalso be inapplicable to the case. Reliance in support of this ecgument was placed on M.M.B. Catholicos and another v. The Most. Rev. Mar Poulose and others('), case dealing with the power of review under Order 47 rule 1 Civil P.C., the language of which, according to the appellant's counsel, is completely identical with that of rule 18.

Let us examine the language of these two provisions. Rule 18 ·has already been reproduced. Order 47 r. l(c) Civil P.C. which alone is relevant for our purpose is in the following terms.

"Rule I. Any person considering himself aggrieved-

(a) ................. .

(b) ................. .

(c) by decision on reference from Court of Small Causes and who, from the discovery of new and important matter or evidence which, after the exercise of due diligence, was not within his knowledge or could not be produced by him at the time when the decree was passed or order made, or on account of some mistake or error apparent on the face of the record, or for any other sufficient reason, desires to obtain review of the decree passed or order made against him, may apply for review of judgment to the Court which passed the decree or made the order.

(2) .................... "

From plain reading of these two provisions the difference in their language is quite obvious. Clauses (i) and (ii) of r. 18 are certainly similar to cl. (c) of Order 47 r. 1, but clause (iii) of r. 18 is wholly different from cl. (c) of r. 1 of Order 47. It is difficult to hold these clauses to be similar in kind or to have common genus. The former seems not only to take within its fold gross and material irregularity in the valuation of the claim, which to some extent resembles one of the grounds on which revisional power as contemplated by s. 115 Civil P .C. can be exercised, but also to include cases where there is disparity in the valuation of the claim. Quite clearly this clause is much wider in scope than Order 47 r. 1 (c). The expression "other sufficient cause" occurring in cl. (iv) of r. 18 has therefore to )le construed in this context. When in statute there are general words following particular and specific words, the general words are sometimes construed as limited to things of the same kind as those specified. This rule of interpretation generally known as ejuedem generis rule has been pr~ssed into service on behalf of the appellant. This rule reflects an atterµpt to reconcile incompatibility between the specific and general words, in view of the other rules of inte_rpretation, that all words in statute are given effect if possible, that statute is to be construed as whole and that no words in statute are presumed to be super-fluous. Ejusdem generis rule being one of the rules of interpre-tation, only serves, like all such rules, as an aid to discover the legislative intent; it is neither final nor conclusive and is attracted oRly when the specific words enumerated, constitute class,

which is not exhausted· and are followed by general terms and when there is no manifestation of intent to give broader meaning to the general words.

The first three categories contained in r. 18, in our opinion, do not form genus or class with the result that clause (iv) would not attract the ejusdem generis rule for its construction. But assuming that they constitute class or kind of objects or genus, it appears to us that grounds given by the Settlement Commissioner are analogous to clause (iii) which speaks of gross and material irregularity or disparity in the valuation of the claim. This submission must, therefore, be rejected.

We now come to the merits of the order of the Settlement Commissioner. After going through the order and the material on the record, to which our attention has been drawn, we are satisfied that the Settlement Commissioner has at more places than one based his conclusions on pure conjectures and surmises without there being any legal evidence on the record to support them. We do not consider it necessary to exhaustively deal with the argument in support of the errors of law on the face of the record for the puq~ose of considering the alleged infirmities in the order of the Settlement Commissioner. The learned Single Judge has dealt with this question at length and we are in agree-. ment with his conclusions. We may only add that we have also looked at the original documents which appeared suspicious to the Settlement Commissioner, but we are unable to find any circumstance which could be said to be suspicious or abnormal so as to eive rise to any reasonable doubt about th.eir genuineness. The respondent's learned counsel also expressed his inability to bring to our notice any material throwing suspicion on the genuine-ness of these documents. Indeed the learned counsel was frank en-F ough to express his inability to support the view taken by the Letters Patent Bench or to find fault with the conclusions of the learned Single Judge, whose order seems to be unexceptionable. We accordingly allow the appeal and setting aside the order of the Letters Patent Bench restore that of the Single Judge. It was agreed at the bar that as directed by the Single hdge the case should go back to the Chief Settlement Commissioner for fresh decision in accordance with law. That tliis case can be remitted back to t~e Chief Settlement Commissioner in these proceedings was not disputed before us. We should, however, make it clear tb~t .this order i~ not to be c.onstr.ued to contain any expression of opm10n on merits on the ev1denl!ary value of the material on.:the ~ecor~ on the ~estion of valuation of the claim. The appellant 1s entitled to his costs.

R.K.P.S.