SUPREME COURT OF INDIA
Draupadi Devi and others
Vs
Union of India and others
( K. G. BALAKRISHNAN AND B. N. SRIKRISHNA JJ.)
09/09/2004
Civil Appeal No. 3861 of 2001
JUDGMENT
SRIKRISHNA
1. This appeal by special leave impugns the judgment dated 8.12.2000 rendered
by the Division Bench of the Delhi High Court in an appeal RFA (OS) No. 19 of
1989. The Division Bench overturned the decree granted by the learned Single
Judge and dismissed the suit of the original plaintiff. Legal representatives
of the original plaintiff are appellants before us while the three defendants
in the suit (Union of India, State of Punjab and Sukhjit Singh) are
respectively the respondents before us. For the sake of convenience, we shall
refer to the parties as arrayed in the suit.
Facts:
2. The plaintiff instituted a suit in 1960 before the Civil Court at Delhi
which ultimately came to be transferred to the Original Side of the Delhi High
Court and was disposed of by a learned Single Judge. The suit was for
declaration of title to the property being land and building situated at 3,
Mansingh Road, New Delhi.
3. By an indenture of lease dated 13.7.1921, Khan Bahadur Abdul Hamid, the then
Chief Minister of Kapurthala State, had been granted a perpetual lease of the
plot of land situate at 3, Mansingh Road, New Delhi. He raised a construction
thereupon called 'Kapurthala House'. It is this land together with the
structures thereupon which is the subject matter of the suit and shall
henceforth be referred to as 'the suit property'.
4. Khan Bahadur Abdul Hamid sold the house to Jagatjit Singh, the then Maharaja
of Kapurthala, by a registered sale deed dated 19.1.1935. The records of the
Land and Development Office were mutated and Maharaja Jagajit Singh was
recorded as the owner of the suit property.
5. The title to the suit property was claimed by the plaintiff on the ground
that the plaintiff had purchased the suit property by a registered sale deed
dated 10.1.1950 for a consideration of Rs. 1.50 lacs from Maharaja Paramjit
Singh, son of the Maharaja Jagatjit Singh, erstwhile Ruler of Kapurthala State,
who was the rightful owner thereof and in whose name the property stood mutated
in the official records of the Government at the material time.
6. Kapurthala was a Sovereign State (1928-1948) till its merger in 'Patiala and
East Punjab States Union' (hereinafter referred to as 'PEPSU') and subsequent
merger of PEPSU into the Dominion of India.
7. It is the case of the plaintiff that Maharaja of Kapurthala, Jagatjit Singh,
owned properties extensively, some of which were owned by Kapurthala State,
(also referred to as 'Kapurthala Darbar') while some others were owned by him
in his personal capacity purchased out of the personal funds of the Maharaja.
8. The plaintiff claimed that the suit property was one such property which had
been bought by Maharaja Jagatjit Singh out of his personal funds and, hence, it
was the personal property of the said Maharaja.
9. The plaintiff pleaded that on 1.3.1937 Lt. Col. C.P. Fisher, the then Prime
Minister of Kapurthala State, had prepared an aide memoire in respect of the
financial arrangements pertaining to bifurcation of Oudh estate income and rest
of the Kapurthala State income and other matters. There is no dispute that in
this aide memoire Lt. Col. Fisher had listed out the properties held by the
Kapurthala State and the private properties of the Maharaja separately. It is
also common ground that the suit property was described as State property in
this aide memoire prepared by Lt. Co. Fisher.
10. The plaintiff alleged that on 1.1.1940 the then Maharaja of Kapurthala
State in his capacity as a Sovereign Ruler of the State had issued a 'command'
under the signature of Tika Raja, (heir apparent), President State Council,
commanding that in future all the houses in Mussoorie and Kapurthala House in
New Delhi would be considered as his personal and private property and that the
aide memoire dated 1.3.1937 shall be inoperative and ineffectual so far as the
said properties were concerned.
11. Maharaja Jagatjit Singh died sometime in 1940 and all his properties
including the suit property passed on to his eldest son Paramjit Singh, who
became the Maharaja of Kapurthala and was recognised as such by the Government
of India. The plaintiff claimed that by a duly registered deed of conveyance
dated 10.1.1950 Maharaja Singh had sold and conveyed the suit property jointly
to the plaintiff and one Dewan Jarmani Dass for a consideration of Rs. 1.50 lacs.
It is also the plaintiff's case that, subsequently, Dewan Jarmani Dass, who had
been shown as vendee only for the purpose of 'convenience', conveyed all his
right, title and interest in the suit property to the plaintiff by a duly
registered indenture of transfer dated 21.2.1951. Thus, the plaintiff claimed
that he had full title to the suit property and sought the declaration and
reliefs as indicated.
12. If history had not overtaken him, the plaintiff perhaps would have had no
problem for successful culmination of his suit. Historical developments left
their impact on the aforesaid transaction the plaintiff had with the Maharaja
of Kapurthala and for that reason they need careful notice.
13. The Independence Act was enacted in 1947 and all the independent Sovereign
Rulers of the States in India were successfully persuaded to sign instruments
of accession. As recorded in the 'White Paper on Indian States' published by
the Government of India in 1948 (of which judicial notice has been taken by
this Court in several cases), the strategy adopted by the Government of India
immediately) before independence was to persuade individual States to sign
instruments of accession for accession of the States to the Dominion of India
on three subjects, namely, defence; external affairs and communication.
14. The accession of the Indian States to the Dominion of India was the first
phase of the process of fitting them into the constitutional structure of
India. The second phase which rapidly followed, involved a process of two-fold
integration, the consolidation of States into sizeable administrative units,
and their democratisation. * [Para 86, Part V, p.38 of the White Paper on
Indian States]
15. Where there were small States, they were persuaded to form Unions of States
on the basis of full transfer of power from the Rulers to the people. These
Unions were to be headed by a Rajpramukh as the constitutional head of the
State who was to be elected by the Council of Rulers. * [para 125 ibid]
16. Pursuant to this strategy, the Rulers of all individual States were
persuaded to enter into an instrument of accession dated 16.8.1947 with the
Government of India. This was then followed by covenants between different
Rulers by which the Unions of States was brought into existence, which were to
be finally merged into the Dominion of India.
17. As far as the present appeal is concerned, it is significant that the
States of Kapurthala, Jind, Nabha, Faridkot, Malerkotla and the States of
Nalagarh and Kalsia came together and entered into a covenant on 5.5.1948. The
Division Bench has reproduced the full text of the covenant executed on
5.5.1948 by the Seven Rulers including the Maharaja of Kapurthala by which the
erstwhile seven States merged into a Union of States. The general effect of the
said covenant was that the covenanting States agreed to unit and integrate
their territories in one State with a common executive, legislature and
judiciary by the name of 'Patiala and East Punjab States Union' (PEPSU) which
was referred to in the covenant as 'the Union'. Articles VI and XII of the said
covenant provided as under:
"Article VI
(1) The Ruler of each covenanting State shall, as soon as may be practicable, and
in any event not later than the 20th of August, 1948, make over the
administration of his State to the Raj Pramukh and thereupon –
(a) all rights, authority and jurisdiction belonging to the Ruler which
appertain, or are incidental to the Government of the Covenanting States shall
vest in the Union and shall hereafter be exercisable only as provided by this
covenant or by the Constitution to be framed thereunder;
(b) all duties and obligations of the Ruler pertaining or incidental to the
Government of the Covenanting State shall devolve on the Union and shall be
discharged by it;
(c) all the assets and liabilities of the Covenanting State shall be the assets
and liabilities of the Union, and
(d) the military forces, if any, of the Covenanting State shall become the
military forces of the Union.
Article XII:
(1) The Ruler of each Covenanting State shall be entitled to the full
ownership, use and enjoyment of all private properties (as distinct from the
State properties) belonging to him on the date of his making over the
administration of that State to the Raj Pramukh.
(2) He shall furnish to the Raj Pramukh before the 20th day of September, 1948,
an inventory of all the immovable properties, securities and cash balances held
by him as such private property.
(3) If any dispute arises as to whether any item of property is the private
property of the Ruler or State property, it shall be referred to such person as
the Government of India may nominate in consultation with the Raj Pramukh and
the decision of that person shall be final and binding on all parties
concerned.
Provided that no such dispute shall be so referable after the 31st December,
1948". *
18. The organisation of the different organs constituting the administration of
the PEPSU was indicated in the covenant. There were also an elected Raj Pramukh
and an Up-Raj Pramukh who were to be appointed in the manner indicated in the
covenant for carrying out the administration of the PEPSU. There were several
other details with regard to the Union of PEPSU and for privy purses to be paid
to each of the erstwhile Rulers. To this covenant, the Government of India in
the Ministry of the States was a party and the Government of India declared:
"The Government of India hereby concur in the above Covenant and guarantee
all its provisions". The said covenant was signed on behalf of the
Government of India V.P. Menon, then Secretary to the Government of India in
the Ministry of States.
19. The White Paper on Indian States further records that on 15.7.1948 the
Patiala and East Punjab States Union was inaugurated. Soon thereafter, the
second step of integration took place.
20. Then followed correspondence between the Maharaja of Kapurthala and the
Government of India on the issue of fixing his privy pursue as well as
bifurcation and recognition of the properties owned by him into State and
private properties.
21. The Maharaja of Kapurthala kept pleading with the Government of India that
he had ruled the State of Kapurthala as a model Ruler; that in recognition of
his signal services to the British Government he had been granted the estates
in Oudh income from which he was gracious enough to divert to the State
treasury of Kapurthala as Kapurthala income was very low; that his personal
income from Oudh estates and the State income of Kapurthala were merged till
1937 and that it was only as the result of the efforts of Col. Fisher that a
bifurcation was made with the Oudh estates being earmarked as personal income
of the Maharaja. The Maharaja, therefore, pleaded with the Government of India
that some of the immovable properties purchased by him outside Kapurthala State
such as in Mussoorie and Delhi be permitted to be retained by him as his
private properties and that the Government of India should declare them to be
so.
22. The White Paper on Indian States indicates that the case of each Ruler was
considered individually and a decision was taken in each case depending on the
facts and circumstances pertaining thereto. Paragraph 157 in Part VII of the
White Paper on Indian States places on record the manner in which the
Government of India solved this complex problem of distinguishing between
private properties and State properties owned by the Rulers. The State
properties were merged finally into the Dominion of India while certain
properties recognised as private properties were permitted to be retained under
the full ownership of the erstwhile Rulers. Para 157 of the White Paper on
Indian States reads as follows:
"157. In the past the Rulers made no distinction between private and State
property; they could freely use for personal purposes any property owned their
respective States. With the integration of States it became necessary to define
and demarcate clearly the private property of the Ruler. The settlement was a
difficult and delicate task calling for detailed and patient examination of
each case. As conditions and customs differed from State to State, there were
to precedents to guide and no clear principles to follow. Each case, therefore,
had to be decided on its merit. The Government of India were anxious that the
new order in States should be ushered in an atmosphere free from any
controversies or bitterness arising from any unhappy legacy of the past. A
rigid and legalistic approach would have detracted from the spirit of good-will
and accommodation in which the political complexion of the States had been so
radically altered. By the large the inventories were settled by discussion
between the representatives of the Ministry of States, the Rulers concerned and
the representatives of the Governments of the Province or the Union as the case
may be. The procedure generally adopted was that after the inventories had been
received and scrutinized by the Provincial or the Union Government concerned
and after the accounts of the States over had been examined, the inventories
were discussed across the table and settled in a spirit of give and take. In
all discussions with the Rulers of the States forming Unions, the Rajpramukhs
were associated; the private properties of Rajpramukhs were settled by the
Government of India in informal consultation with the Premiers of the Unions.
This method made in possible to settle these properties on an equitable basis
within a remarkably short period and without recourse even in a single case to
arbitration. The settlements thus made are final as between the States and the
Rulers concerned." *
23. Although, generally, user was the criterion for distinguishing State
property from private property, there was no such hard and fast rule, and
depending on the facts and circumstances of each case appropriate decision was
taken by settlement with the Ruler concerned. This process was obviously a long
one stretching from 20.9.1948 (the last date for furnishing to the Raj Pramukh
the inventory of all the immovable properties, securities and cash balances
held by the Rulers as private property) till the actual date of the decision.
Article XII of the covenant of accession provided that if there was a dispute
as to whether any item of private property of the Ruler or State property, it
would be decided by a nominee of the Government of India appointed in
consultation with the Raj Pramukh and the decision shall be final and binding
on all parties concerned, provided that no such dispute was referable after
31.12.1948. According to the recitals in the White Paper, in all cases the
decision jointly taken by the Government of India after discussion with the
Ruler concerned and the Raj Pramukh was accepted by the Ruler and no case was
referred for arbitration as provided under Article XII of the covenant.
24. The correspondence between Maharaja of Kapurthala, Jagatjit Singh, his son
Paramjit Singh (Tika Raja) with the Government of India which has been
extensively quoted in the judgments of the learned Single Judge and the
Division Bench bears out what is stated in the White Paper. The tenor of the
letters written by the Maharaja to the Government of India does not indicate
that the Maharaja was raising a dispute with regard to the immovable properties
outside Kapurthala State. On the contrary, the tenor of the correspondence
emanating from the Maharaja suggests that, having agreed to the decision taken
in the meeting with the Government of India's representatives he was attempting
to prevail upon the Government of India to declare some of the properties as
his personal properties for reasons which he advanced. It is interesting to
notice that at no point did the Maharaja of Kapurthala take up the stand that
the properties owned outside the Kapurthala State, particularly, the suit
property in Delhi, was beyond the purview of the covenant and was his exclusive
personal property.
25. During the ongoing process of identification and bifurcation of the
immovable properties into State and personal properties, Maharaja Jagatjit
Singh attempted to sell some land. On coming to know of the move of the
Maharaja, on 19.3.1949 a telegram (Ex. D2W4/1) was sent by the Raj Pramukh to
Maharaja Jagatjit Singh calling upon him to refrain from doing so when the process
of identification of properties was going on.
26. While the discussions with the Government of India for identification and
classification of immovable properties held by the Maharaja of Kapurthala were
still going on, it appears that Dewan Jarmani Dass, then Chief Minister of
Kapurthala State, prevailed upon the Maharaja to quietly sell the property
jointly to him and the original plaintiff, late R.M. Seksaria. Although, the
Division Bench of the High Court has made scathing remarks than Dewan Jarmani
Dass had acted clandestinely and malafide in order to grab the property even
before the decision of the Government on the nature of the property, it is
unnecessary for us to pronounce on these facets of the matter for the decision
on legal issues does not turn upon these findings.
27. The Government of India was not aware of the sale and conveyance of the
suit property to Dewan Jarmani Dass and the plaintiff, till or about 6.3.1950.
It is only thereafter that a discussion took place on 7.3.1950 between the
representatives of the Government of India headed by V.P. Menon, Secretary,
Ministry of States and the Maharaja of Kapurthala. The minutes which were
recorded on 11.3.1950, with reference to the suit property, state:
"The sale of Kapurthala, House in Delhi should be revoked. The vendee
should be asked to refund the consideration money to His Highness. The decision
was communicated to Dewan Jarmani Dass by Secretary." *
28. On 14.3.1950, Paramjit Singh, who had by then become the Maharaja of
Kapurthala State, wrote to V.P. Menon, Secretary, Ministry of States in which
he referred to the previous talk on the issue and said:
"Since my talk I find that present owner of the House i.e. M/s. Jarmani
Dass and Seksaria Brothers are not prepared to voluntarily rescind or cancel
the sale deed of Kapurthala House in their favour." *
29. He further stated:
"That my secretary, Shanti Sagar, Mahendra, had been authorised to pay the
amount of Rs. 1.50 lacs to M/s. Jarmani Dass and Seksaria Brothers and get back
the Kapurthala House at New Delhi if they so agree and have the sale deed
registered in his own name. In case this is not possible I request you to
please be good enough as to see that Kapurthala House. New Delhi, is declared
my personal and private property and I am not made to return the money."
(emphasis ours) $ *
This does not at all sound like any assertion of title to the suit property,
but more like an imploration to the Government of India to declare the property
as private property so that Maharaja was not required to refund the money which
he had taken from M/s Dewan Jarmani Dass and Seksaria Brothers.
30. The determination of the issue as to whether the suit property was the
private property of the Ruler of Kapurthala State recognised as such by the
Government of India or whether it was the State property of Kapurthala State,
which merged into the PEPSU and thereafter transferred by the Government of
India to the State of Punjab (Defendant No.2), is crucial and decides the fate
of the present litigation. It is crucial because the plaintiff claims title
from the Maharaja of Kapurthala, if the Maharaja's title to the suit property
was good, then the plaintiff had good title; conversely, if the Maharaja had no
title to the suit property as on the date of the conveyance dated 10.1.1950,
then the plaintiff gets no title and, therefore, his suit must fail. Nemo dat
quoad non habet.
The Commands of 1940 and 1948:
31. The plaintiff attempted to prove his title by showing that the Maharaja had
a good title because the suit property was the private property of the Maharaja
bought from his personal funds and not the State property of Kapurthala
purchased from State funds. Despite the allocation made by the aide memoire on
1.3.1937 prepared by Col. Fisher, the plaintiff's case is that by reason of the
subsequent command of the Maharaja dated 1.1.1940 the classification made by
the aide memoire was overridden and the property remained as personal property
of the Maharaja. Consequently, under the covenant it was bound to be recognised
as personal property which was guaranteed under the covenant. Since the suit
property was the personal property of the Maharaja had good title which had
passed to the plaintiff, is the line of argument of the plaintiff. A number of
legal arguments in support and voluminous documents have been placed on record.
The Division Bench of the High Court meticulously considered everyone of the
documents on record and totally disbelieved the case of the plaintiff as to the
existence of this alleged command of the Maharaja dated 1.1.1940 and another
alleged command dated 11.8.1948 declaring the suit property as his private
property. There is serious controversy as to whether the said documents were
ever issued, whether the said documents were proved on record, and if so, what
the legal consequences would be. We may add here that, apart from these two
disputed documents, the only other document in which there is any reference to
the command of 1940 (without indicating the specific date) is a letter dated
11.4.1950 written by Dewan Jarmani Dass to V.P. Menon which appears to have
been written : 'in order to clear my position and to clear some
misunderstanding' as to the sale of the said property to Dewan Jarmani Dass. In
this letter, it is stated that Maharaja of Kapurthala in 1940 passed an order
in unequivocal terms that 'Kapurthala House' should be considered as his
personal property. Hence, Dewan Jarmani Dass said this should be treated as
personal property of the Maharaja and, consequently, his own rights should
remain protected.
32. Having carefully perused the documents placed on record, and considered
the arguments of the learned counsel, we are inclined to agree with the
findings of the Division Bench about both these documents. As to the command of
1940, it has been held proved by the learned Single Judge only on the basis of
adverse inference and secondary evidence. The Division Bench has correctly
pointed out the circumstances under which secondary evidence could have been
let in did not exist at all. The inconsistency in the pleadings as to
particulars of the documents led to the resulting confusion in the defendants
admitting possession and denying possession in succession. Once thing, however,
strikes us that in the entire correspondence, which the Maharaja
contemporaneously had up to the sale of the suit property, there was no
reference to this command at all. While it may not be possible to agree with
the positive conclusion drawn by the Division Bench that this command was
fabricated and clandestinely inserted by the plaintiff in the records of the
Archives Department, we too agree that these documents have not been proved in
accordance with law.
33. The Division Bench of the High Court rightly points out that the aide
memoire prepared by Lt. Col. Fisher on 1.3.1937 indubitably declared the House
in Delhi was a 'State House'. This document was signed by Col. Fisher in his
capacity as Prime Minister as also by the Ruler of Kapurthala. There is no
dispute about this document, or that it had been signed by the Ruler of
Kapurthala. In other words, as early as 1.3.1937, the Maharaja of Kapurthala
accepted that the House in Delhi (the suit property) was State property. # It
would appear that in order to help the plaintiff in his suit, the third
defendant, who is the grand son and successor of the Maharaja, and the
plaintiff, introduced the theory that the Maharaja by his Commands dated
1.2.1940 and 11.8.1948 had nullified the effect of Lt. Col. Fisher's aide
memoire dated 1.3.1937.
34. The fact that there was no reference whatsoever to these documents in any
of the contemporaneous correspondence between the Ruler of Kapurthala and the
Government of India lends credence to the dubitable nature of these two
documents. In fact, at no point of time did the Maharaja put forward a claim
with the Government of India that the suit property had ceased to be State
property and become his private property by reason of his aforesaid commands or
otherwise. As we have already noticed, the tone and tenor of the correspondence
between the Maharaja and the Government of India during the material period was
abjectly supplicant and demonstrated only an anxiety on his part to protect his
privy pursue and to bargain for certain concessions from the Government. Never
was there an assertion of rightful title to the suit property, his efforts
being directed towards wresting greater concessions. The Division Bench has
rightly analysed the evidence on record and came to the finding that till 1934,
the income from Oudh estates and Kapurthala State were treated as one
consolidated account. It was only on the advice of the Lt. Col. Fisher that the
accounts were separately maintained after 1936. Even in the Note dated
28.5.1948 (Vol. 9 page 17) sent by the Maharaja and the Tika Raja, President of
State Council to V.P. Menon, Secretary, Ministry of States, it is pointed out
that the income from Oudh estates were merged in the income of Kapurthala State
upto 1934, and it was bifurcated only on the recommendation of Lt. Col. Fisher.
The reason for this is explained thus:
"This step was taken only with the idea of earmarking the income of the
Oudh estates for my Civil List. As it has been my desire for some time to
amalgamate once again the income of my Oudh estates with the revenue of my
State, I am pleased to order that steps should be taken with regard to the
amalgamation of the Oudh estates with the Kapurthala State." Thereafter,
the Maharaja pleads his case that he should be granted Rs. 25 lacs to be transferred
to his household account out of the State Reserve Fund. *
35. On 4.6.1948, the Ministry of States wrote to the Maharaja that transferring
such a large amount would invite serious public criticism and would not be acceptable
to the Government. Discussions followed thereafter. The Maharaja took the
advice of Chaudhary Niamat Ullah, a retired Judge of the Allahabad High Court,
and addressed a note dated 24.8.1948 to the Chief Minister of Kapurthala. Even
in the memorandum the plea made was with regard to injustice that was likely to
result: "if my privy purse is determined solely on the basis of the
revenue of the Kapurthala State Property". The aide memoire prepared by
the Maharaja in July, 1948 (Ex. D2/5) also reiterates this.
36. In view of this clear evidence, the Division Bench was justified in its
finding that the Maharaja of Kapurthala had clearly admitted that the income
from Oudh estates formed an integral part of State of Kapurthala and all along
maintained in his correspondence with the Government of India that the nature
of the suit property could not be decided merely from the source of income
aspect.
Article 363 of the Constitution of India / Act of State:
37. For the appellants, it was contended that the source of income was not
really the index of the nature of the property, namely, whether it was State
property or private property of the Maharaja, but that the principle adopted at
the time of accession was the principle of user of the property.
38. The learned counsel for the appellants urged that the evidence on record
shows that the suit property in Delhi had been personally used by the Maharaja
all along and at no point of time was it used for State purposes. Hence, he
contended that this property was the private property of the Maharaja.
39. Even assuming that the learned counsel for the appellants may be right in
his contention that applying the test of user the suit property was liable to
be determined to be the private property of the Maharaja, the question that
arises is: Did the Government of India recognise the suit property as the
private property of the Maharaja? If they did not, could a suit be maintained
for a declaration that the suit property was the private property of the
Maharaja? Answering this question, the Division Bench holds that the suit was
not maintainable and barred by reason of Article 363 of the Constitution of
India.
40. The learned counsel for the State of Punjab and the Union of India
contended that the suit of the plaintiff was clearly barred and the court had
no jurisdiction to entertain the suit by reason of Article 363 of the
Constitution of India. Article 363 reads thus:
'363. Bar to interference by courts in disputes arising out of certain treaties
agreements, etc - (1) Notwithstanding anything in this Constitution but subject
to the provisions of article 143, neither the Supreme Court nor any other court
shall have jurisdiction in any dispute arising out of any provision of a
treaty, agreement, covenant, engagement, sanad or other similar instrument
which was entered into or executed before the commencement of this Constitution
by any Ruler of an Indian State and to which the Government of the Dominion of
India or any of its predecessor Governments was a party and which has or has
been continued in operation after such commencement, or in any dispute in
respect of any right accruing under or any liability or obligation arising out
of any of the provisions of this Constitution relating to any such treaty,
agreement, covenant, engagement, sanad or other similar instrument.
(2) In this article
(a) "Indian State" means any territory recognised before the
commencement of this Constitution by His Majesty or the Government of the
Dominion of India as being such a State; and
(b) 'Ruler' includes the Prince, Chief or other person recognised before such
commencement by His Majesty or the Government of the Dominion of India as the
Ruler of any Indian State." *
41. Counsel for the State of Punjab contended that the act of accession of
Kapurthala State to the Dominion of India, which was brought about by an
instrument of accession dated 16.8.1947 resulting in the Union of PEPSU coming
into being on 15.7.1948 as well as the execution of the covenant dated 5.5.1948
between the Maharaja and the Government of India, were acts of the State. They
were the resultants of exercising political power which could not be questioned
in the municipal courts. Learned counsel placed heavy reliance on the judgment
of the Constitution Bench of Seven learned Judges of this Court in State of
Gujarat vs. Vora Fiddali Badruddin Mithibarwala [ ]
42. In Vora Fiddali (supra) a Constitution Bench of this Court had examined
whether the Government of India was bound to recognise and implement the rights
created by a 'Tharao' of the Ruler of the erstwhile Sant State granting special
rights with regard to certain forests after the Maharaja of Sant State had by
an instrument of merger agreement dated 19.3.1948 acceded to the Dominion of
India, the Government of India, having refused to recognise any rights flowing
under the grants made under the 'Tharao' of the erstwhile Ruler. The
Constitution Bench approved of the following dicta of Lord Dunedin in Vaje
Singhji Jorwar Singh vs. Secretary of State for India [(1924) LR 51 I.A. 357].
"When a territory is acquired by a sovereign state for the first time that
is an act of State. It matters not how the acquisition has been brought about.
It may be by conquest, it may be by cession following on treaty, it may be by occupation
of territory hitherto unoccupied by a recognised ruler. In all cases the result
is the same. Any inhabitant of the territory can make good in the municipal
courts established by the new sovereign only such rights as that sovereign has
through his officers, recognised. Such rights as he had under the rule of
predecessors avail him nothing. Nay more, even if in a treaty of cession it is
stipulated that certain inhabitants could enjoy certain rights, that does not
give a title to those inhabitants to enforce these stipulations in the
municipal courts. The right to enforce remains only with the high contracting
parties." *
It also expressly disagreed with the ratio of an earlier judgment of this Court
in Virendra Singh and others vs. The State of Uttar Pradesh [ that such
grants were merely voidable and continue to bind the parties till they were
expressly revoked by the new Sovereign. The majority judgment in Vora Fiddali
(supra) rendered by Hidayatullah, J. succinctly sets forth the concept of 'Act
of State' in the following words:
"To begin with, this Court has interpreted the integration of Indian
States with the Dominion of India as an Act of State and had applied the law
relating to an Act of State as laid down by the Privy Council in a long series
of cases beginning with Secretary of State in Council for India vs. Kamachee
Boye Saheba [(1859) 13 Moore P.C. 22] and ending with Secretary of State vs.
Sardar Rustam Khan and Others [(1941) 68 I.A. 109). The cases on this point
need not be cited. Reference may be made to M/s. Dalmia Dadri Cement Co. Ltd.
vs. Commissioner of Income-tax [(1959) SCR 729), the State of Saurashtra vs.
Menon Haji Ismali Haji, [(1960) 1 SCR 537], Jaganath Agarwala vs. State of
Orissa [1962) 1 SCR 205] and State of Saurashtra vs. Jamadar Mohamed Abdulla
and others [(1962) 3 SCR 970]. In these cases of this Court, it has been laid
down that the essence of an Act of State is an arbitrary exercise of sovereign
power on principles which are paramount to the Municipal Law, against an alien
and the exercise of the power is neither intended nor purports to be legally
founded. A defence that the injury is by an Act of State does not seek
justification for the Act by reference to any law, but questions the
jurisdiction of the court to decide upon the legality or justice of the action.
The Act of State comes to an end only when the new sovereign recognises either
expressly or impliedly the rights of the aliens. It does not come to an end by
any action of subordinate officers who have no authority to bind the new
sovereign. Till recognition, either express or implied, is granted by the new
sovereign, the Act of State continues." *
The decision also holds that merely because the issue of recognition of the new
rights was pending with the Government, it cannot be postulated that the act of
State had come to an end. The act of State could only come to an end if the
Government recognises the rights which were granted by the erstwhile Ruler. The
Government may take time to consider; and delay does not mitigate against the
act of State. (See, Jaganath Agarwala vs. State of Orissa (supra).
43. Vora Fiddali (supra) also holds that although the distinction between
legislative, executive and judicial acts of an absolute Ruler (such as the
Indian Rulers were) was apt disappear when the source of authority was the
sovereign this would be true only in so far as the subjects of the Ruler were
concerned, since they were bound obey not only laws but any orders of the
Rulers, whether executive or judicial. "For them there did not exist any
difference because each emanation of the will of the sovereign required equal
obedience from them. But it does not mean that the Ruler acted legislatively
all the time and never judicially or executively. If this was the meaning of
the observations of this Court then in Phalke's [(1961) 1 SCR 957 at page 964]
case, it would not have been necessary to insist that in determining whether
there was a law which bound the succeeding sovereign, the character, content
and purpose of the declared will must be independently considered".
Applying the test, the majority came to the conclusion that the 'Tharao' was
not 'law in force' which continued to operate by reason of Article 372 of the
Constitution of India. It was also held that the municipal courts in India
could not pronounce upon the dispute arising under the agreement or touching
the agreement as the subject was outside the jurisdiction by reason of Article
363 of Constitution of India. *
44. The rule that cession of territory by one State to another is an act of
State and the subjects of the former State may enforce only those rights which
the new sovereign recognises has been accepted by this Court. (See in this
connection: M/s. Dalmia Dadri Cement Co. Ltd. vs. The Commissioner of
Income-Tax (supra); Jagannath Agarwala vs. State of Orissa (supra); Pramod
Chandra Deb and others vs. The State of Orissa and others [ ] and the
State of Saurashtra vs. Jamadar Mohamad Abdulla and others (supra)]
45. Applying the law as laid down in Vora Fiddali (supra) it appears to us
that the contention of the State of Punjab and the Union of India must be
upheld. The Maharaja of Kapurthala was an independent sovereign Ruler. #
To merge or not to merge with the Dominion of India was a political decision
taken by him and the instrument of accession dated 16.8.1947, was, without
doubt, an act of State. So was the covenant dated 5.5.1948. By the covenant all
rights, authority and jurisdiction of the erstwhile Rulers were vested in the
Patiala and East Punjab States Union and all assets and liabilities of the
covenanting States became the assets and liabilities of the Union, PEPSU. It is
only Article XII which ensured certain rights to the Ruler with regard to full
ownership, use and enjoyment of all private properties (as distinct from State
properties) belonging to him on the date of his making over the administration
of the State to the Raj Pramukh. Consequently, he was also required to furnish
to the Raj Pramukh, before the deadline, an inventory of all the immovable
properties, securities and cash balances held by him as such private property.
. This was obviously done so that the Government of India could ascertain the
correctness of the claim. No doubt, clause (3) of Article XII provides that a
dispute arising as to whether any item of property was the private property of
the Ruler or State property was referable to a nominee of the Government of
India and such nominee's decision would be final and binding on all the parties
concerned, provided that such dispute was to be referred by the deadline of
31.12.1948. Interpreting this clause, the learned Single Judge took the view
that under the treaty the Government of India could not unilaterally refuse to
recognise any property as private property of the Ruler, and if it did, it was
obliged to refer it to the person contemplated by clause (3). Failure to do so
would imply recognition of the claim as to private property. In our view, this
reasoning of the learned Single Judge was erroneous on two counts. In the first
place, this interpretation ignores the true nature of the covenant. The
covenant is a political document resulting from an act of State. Once the
Government of India decides to take over all the properties of the Ruler,
except the properties which it recognises as private properties, there is no
question of implied recognition of any property as private property. On the
other hand, this clause of covenant merely means that, if the Ruler of the
covenanting State claimed property to be his private property and the
Government of India did not agree, it was open to the Ruler to have this issue
decide in the manner contemplated by clause (3). Clause (3) of Article XII does
not mean that the Government was obliged to refer to the dispute upon its failure
to recognise it as private property. Secondly, the dispute as to whether a
particular property was or was not recognised as private property of the Ruler
was itself a dispute arising out of the terms of the covenant and, therefore,
not adjudicable by municipal courts as being beyond the jurisdiction of the
municipal courts by reason of Article 363 of the Constitution of India.
46. Although, Vora Fiddali (supra) was a case which dealt with the recognition
of the rights of the subjects of an erstwhile Ruler after accession of the
Ruler to the Dominion of India, the principles laid down in Vora Fiddali would
apply with greater vigour to the rights claimed by the Ruler himself.
47. We are of the view that after the Government of India took over all the
properties of the Ruler of the Kapurthala State, by an act of State, assuring
him by the covenant only that he would be entitled to the full ownership, use
and enjoyment of all private properties. A procedure was prescribed for
recognition of such private properties. The evidence on record does not suggest
that at any point of time the Ruler of Kapurthala had disputed the power of the
Government of India to decide the issue as to whether the suit property was the
property of the State of Kapurthala or private property of the Ruler. On the
contrary, the correspondence placed on record suggests that at all points of
time the Ruler of Kapurthala accepted the position that the Government of India
had the right to decide the nature of the property and was merely pleading that
the suit property be declared as his private property. Finally, in any event,
we are of the view that the issue as to whether the Government of India was
obliged to recognise the private property of the Ruler of Kapurthala, and
whether; under the terms of the covenant (Article XII of the covenant), the
Ruler of Kapurthala was entitled t have it thus recognised, are disputes which
are clearly barred by Article 363 and the court had no jurisdiction to decide
the said issues. #
Lex Situs:
46. The appellants contend that the decision that the suit property could not
be recognised as private property was taken only in 1951 i.e. after the coming
into force of the Constitution of India. By that time, the Maharaja had acceded
to the Union (PEPSU) which was succeeded by the State of Punjab as a State
under the Constitution. Appellants contend that by the decision taken in 1951
the right to property which was held by a citizen of the country could not have
been taken away by a mere executive act without the backing of a valid
legislative enactment. According to the appellants, the lex situs would govern
the issue. In other words, the law as applicable in Delhi would have governed
the issue whether the Ruler of Kapurthala had a right to the property under the
laws as applicable in Delhi. The Ruler Kapurthala had purchased the property by
a registered sale deed from Khan Bahadur Abdul Hamid; thus, he was the true
owner of the property and his ownership rights could not have been extinguished
except by a law validly made under the Indian Constitution. Allied to this
argument is also a subsidiary argument that there cannot be an act of State as
against a citizen or a friendly alien. Reliance was sought to be placed on the
judgment of the House of lords in Johnstone vs. Pedlar [ 1921 ALLER 176
and of this Court in The State of Saurashtra vs. Memom Haji Ismail Haji [
at page 544] and H.H. Maharajadhiraja Madhav Rao Scindia etc. vs. Union of
India and another [ ]
49. Some recapitulation of contemporaneous facts is in order to appreciate the
merits of this argument.
50. After the instrument of accession was executed by the Maharaja on
16.8.1947, he executed the covenant on 5.5.1948, and he forwarded the list of
his private property by way of an aide memoire and handed it over on 15.7.1948
to the Raj Pramukh. Logically, this would have been the first occasion for the
Maharaja of Kapurthala to lay claim to the suit property as his private
property. Interestingly, there is no reference made to the suit property or any
other property as private property in this aide memoire. The only anxiety
appears to be to get the privy purse fixed which was a big amount to be paid
regularly by the Government of India.
51. On 16.7.1948 (Ex. D.2/6) the Maharaja addressed a letter to the Raj Pramukh
in which he refers to the copy of the aide memoire already handed over. Even in
this letter, nothing is said about the nature of the property in Delhi. The
emphasise is purely on ensuring that a large amount of privy purse fixed.
52. On 25.8.1948 (Ex.D.2/7), one more letter was addressed by the Maharaja of
Kapurthala to the Raj Pramukh. In this letter, there was a detailed list of
"private properties situated in and outside the Kapurthala State in
accordance with Article XII(2) of the covenant. There is also reference to the
aide memoire personally handed over at Patiala on 15.7.1948. The list refers to
several palaces and buildings within Kapurthala State, and in Mussoorie. For
the first time, there is reference to the suit property as `Kapurthala House'
situated at 3, Mansingh Road. The issue of recognition of private property was
still very much under process for the Raj Pramukh wrote back to the Maharaja of
Kapurthala on 3.9.1948 (Ex.D.2/8) requesting him to furnish a list of jewellery,
silver was etc. as per inventory in the stock registers of the Toshekhana at
Kapurthala as it would "help greatly in the settlement of claims of your
private property." *
53. On 22.9.1948 (Ex.D.2/9) there is a letter written by the Maharaja to the
Raj Pramukh with regard to certain animals and articles which he wanted to be
recognised as private property.
54. On. 12.1.1949 (LC/D Vol.6 page 1539) there is a reference made to
"other properties outside the Kapurthala State belonging to me
personally" * with a promise that their list would be forwarded for
consideration.
55. At that time, a number of Rulers had acceded to the Government of India and
the White Paper says that their cases were to be considered one by one
individually. Consequently, there was bound to be some time lag in taking a
decision on the claim to private properties made by the Rulers.
56. While the claim was being processed, on 1.2.1949 (Ex.D2W1/3), the Finance Secretary,
Govt. of PEPSU wrote to N.M. Buch, Joint Secretary, Government of India to
point out that the order passed in 1937 by the Maharaja clearly bifurcated the
division of the properties into the house hold and State and that this was
contrary to the claim he was putting forward. He also invited attention to the
fact that while Mussoorie property was being divided half and half, the Delhi
house necessarily was to be the official property of the State and that, though
the question had been settled, the Maharaja had raised the issue again.
57. By letter dated 11.4.1949 (Ex.D.2./10) the Raj Pramukh informed the
Maharaj:
"The question about Kapurthala House in New Delhi will be settled
separately on the same basis as is applied in the case of houses owned by other
Covenanting States, and I shall be writing to Your Highness further about
it." *
58. During this process the Maharaja of Kapurthala sold the suit property
jointly to the plaintiff and Dewan Jarmani Dass on 10.1.1950.
59. There was a meeting convened on 25.1.1950 between the Raj Pramukh, the
Maharaja of Kapurthala, M.R. Bhide and the Private Secretary to the Raj
Pramukh. Even the minutes (Ex D.2/11) recorded of this meeting do not disclose
that the Maharaja had informed M.R. Bhide about the sale of the property on
that day.
60. When the Government of India came to know of the sale of the suit property,
a meeting was arranged on 7.2.1950 in Kapurthala between V.P. Menon, Secretary,
Ministry of States, M.R. Bhide, Regional Commissioner, PEPSU, Sardar Hari
Sharma, Deputy Secretary of States and the Maharaja of Kapurthala. The minutes
of this meeting, insofar as they pertain to the suit property, make interesting
reading. They read as under (Para 3):
"The sale of Kapurthala House in Delhi should be revoked. The vendee
should be asked to refund the consideration money to His Highness. This
decision was communicated to Dewan Jarmanidass by Secretary." *
61. On 14.3.1950 (Ex.PX-13), the Majaraja wrote to V.P. Menon, Secretary,
Ministry of States requesting him to declare the suit property as his personal
property.
62. On 26.2.1951 a meeting was held between the representatives of the
Government of India and the Maharaja. The minutes were recorded on 1.3.1951
(Ex. D2W2/2). The material portion of the minutes reads as under"
"Delhi House: His Highness was informed that in the basis of the
information received on him, the house could not be treated as private
property. The intention of the Government of India, therefore, was to treat the
house as State Property." *
63. Finally, by letter dated 4/5/5/1951 (Ex.P.6/3), the Government of India
informed the Maharaja:
"It was now been decided that Kapurthala House, No.3, Man Singh Road, New
Delhi, will be State property and not the private property of Your Highness. We
have informed the PEPSU Government of this decision." *
64. In the light of these developments, it is clear that the act of State
continued from the date when the instrument of accession was signed i.e.
16.8.1947 to the date on which the final decision of the Government of India
was conveyed to the Maharaja. The fact that time was taken in conveying the
decision, or the fact that the Constitution of India had come into force in the
interregnum, do not change the character of the act of the Government of India
in refusing to recognise the suit property as the private property of the
Maharaja of Kapurthala. # Agarwala (supra) holds that an act of State need
not be a prompt decision, but could stretch over a period of time. Vora Fiddali
(supra) states that the act of State would continue till the new sovereign
recognises the rights. In this case, however, the act of State terminated with
the final decision of non-recognition being conveyed. What the Government of
India did in the year 1951 was not referable to anything flowing from the
Constitution, but, action albeit delayed, referable to the instrument of
accession and the covenant signed by the Maharaja. Any dispute with regard to
what the covenant guarantees, or whether the act of the Government of India was
justified under the covenant is, beyond the pale of jurisdiction of the court
by reason of Article 363 of the Constitution of India. The Division Bench of
the High Court was, therefore, justified in making a finding that the suit was
bared by Article 363 and was liable to fail. #
65. Now, we may dispose of the subsidiary argument of Mr. Vellapally, learned
senior advocate, based on the Doctrine of Lex Situs. Vora Fiddali (supra) is an
authority for the proposition that the act of State would continue till there
is recognition (or non-recognition). In our view, all the rights available to
the erstwhile Ruler and his subjects are of no avail till there is recognition
of such rights. The argument of lex situs could have perhaps prevailed, if the Government
of India at any point of time had recognised the suit property as the private
property of Maharaja of Kapurthala, and, after the coming into force of the
Constitution, attempted to take it away otherwise then by a Constitutionally
valid legislative enactment. On the facts, however, we find that no such
recognition was granted. Merely because the decision not to recognise was
conveyed to the plaintiff in the year 1951, the act of the Union of India did
not cease to be and act of State, nor does it fall outside the protective
umbrella of Article 363 of the Constitution of India. The contention of the
learned counsel of the appellants that the plaintiff claimed title to the
property through the registered sale deed in his favour under the law applicable
in Delhi would be of no avail. As we have said earlier, if the Maharaja had no
title to the property, the plaintiff can hardly get anything more. #
66. Another interesting sideline in the argument was introduced by the learned
counsel for the appellants than an ac of State could never occur with reference
to property that was not in the ceded territory. It is not necessary for us to
examine this argument as the facts on hand are clearly against the argument.
There is not doubt, whatsoever, that the Maharaja of Kapurthala held properties
outside the territory of Kapurthala, say, for example, in Mussoorie and Delhi.
Even with regard to these properties, the Government took a decision as to
their character and whether they could be recognised as private property of the
Ruler. As to Delhi property, the Government of India decided that it would be
treated as State property and in the case of Mussoorie property, half of it to
be treated as State property and half of it [ot] (sic.) be treated as private
property of the Maharaja of Kapurthala. Further, we find that Article VI of the
Covenant dated 5.5.1948 "all" the assets and liabilities of the
covenanting States in the Union of PEPSU and makes exception only with regard
to private properties as contemplated by Article XII. There is no reference
whatsoever therein to the situs of the property. The covenant, therefore, drew
a distinction only between State property and private property of the Ruler
irrespective of where the property was situated. In our view, any further
disputes with regard to the interpretation of this clause of the covenant would
again be beyond the jurisdiction of the court by reason of Article 363 of the
Constitution of India.
67. In the result, we uphold the findings of the Division Bench of the High
Court that the suit was not maintainable.
Article 77 of the Constitution of India:
68. The contention based on Article 77 of the Constitution of India, urged by
the learned counsel for the appellants, also does not have merit. The
contention is that all orders and other instruments made and executed in the
name of the President are required to be authenticated in the manner as
specified in Article 77. That the order, if any, of the Government of India,
not to recognise the suit property as the private property of the Maharaja, was
not executed in this manner and, therefore, is invalid. The judgment of this
Court in State of Rajasthan and anr. vs. Sripal Jain and L.G. Chaudhari vs. The
Secretary, L.S.G. Dept., Govt, of Bihar and Ors.18 were pressed into service in
support.
69. In our view, the argument based on Article 77 is irrelevant. Even
assuming that the appellants are right in the contention that the decision not
to recognise the suit property as private of the Maharaja of Kapurthala, was required
to be and not taken in the manner contemplated by Article 77, it would only
mean that there was no decision. In our judgment, the plaintiff cannot succeed
by merely showing that the Government of India had failed to arrive at a
decision on the issue. He must further show that the Government of India had
recognised the suit property as private property of the Ruler of Kapurthala as
that could be the only foundation for his title. There is also another reason
why we are not impressed with this argument. If the fact of recognition or
non-recognition of the suit property as private property is relatable to the
instrument of accession made in 1947 and the covenant executed in 1948, the
decision would also relate back to the date of the covenant, and on that date
Article 77 of the Constitution was not in existence. # Hence, it would be
incorrect to judge the validity of that decision relatable to the covenant
executed in 1948 by the Constitution of India, which came into existence much
later.
Article 372 of the Constitution of India:
70. The appellants, relying on the judgment in Vishnu Pratap Singh vs. State of
Madhya Pradesh 7 Ors. [ ], contend that the Ruler of Kapurthala was an
absolute sovereign, who could by his command change the character of the property
from State property to private property, which he did by his commands of 1940
and 1948; that these commands had the force of law and continued to operate as
'existing law' by reason of Article 372 of the Constitution of India; and they
could only be revoked by a law validly made by Parliament and not by an
executive act.
71. The argument, undoubtedly, allures at first blush; but, it fails when
scrutinized. In the first place, Vishnu Pratap Singh (supra) relied on and is
based on the ratio of Virendra Singh (supra). Vora Fiddali, a decision of Seven
learned Judges, expressly overruled the principle laid down in Virendra Singh
(supra). Consequently, Vishnu Pratap Singh (supra) cannot be said to be good
law. In any event, the test laid down in Vora Fiddali, if applied to the
commands in question (even assuming they have been proved), is answered
negatively. The learned Single Judge was correct in saying that 1948 command
did not amount to law. Even assuming the two commands of 1940 and 1948 were
proved, they would not amount to law, by applying the test laid down in Vora
Fiddali (supra).
72. Learned counsel for the appellants placed strong reliance on the judgment
in State of Punjab & Ors. vs. Brigadier Sukhjit Singh [ 1] which, incidentally, is the case of the third
defendant himself pertaining to Kapurthala State. Strong reliance is placed on
the observations in Paragraph 11 of the judgment:
"Now it is beyond doubt that the ruler of an Indian State was in the
position of a sovereign and his command was the law. His Farman had the
strength and potency of a law made by an elected legislature and his acts,
administrative or executive, were sovereign in character." *
This judgment would be binding inter parties as far as what it decides. If it
is cited as a precedent on a proposition of law, we are afraid that this
judgment runs counter to what had been laid down by the majority judgment in
Vora Fiddali (supra) and, what is more, strangely, does not refer to Vora
Fiddali. In the teeth of Vora Fiddali, we are unable to accept the cited
judgment as reflecting the correct position of law.
Limitation:
73. That brings us to the issue of limitations. The learned Single Judge held
that the plea of limitation not having been taken in the pleadings defendants
Nos. 1 and 2 should not be allowed to raise the said plea.
74. We may notice here that under the Code of Civil Procedure, Order VII Rule
1(e) requires a plaint to state "the facts constituting the cause of
action and when it arose". * The plaintiff was bound to plead in the
plaint when the cause of action arose. If he did not, then irrespective of what
the defendants may plead in the written statement, the court would be bound by
the mandate of Section 3 of the Limitation Act, 1908 to dismiss the suit, if it
found that on the plaintiff's own pleading his suit is barred by limitation. In
the instant case, the plaint does not plead clearly as to when the cause of
action arose. In the absence of such pleadings, the defendants pleaded nothing
on the issue. However, when the facts were ascertained by evidence, it was
clear that the decision of the Government of India not to recognise the suit
property as private property of the Maharaja was taken some time in the year
1951, whether in March or May. Dewan Jarmanidass, the plaintiff and the
Maharaja were very much aware of this decision. Yet, the suit was filed only on
11.5.1960.
75. The Division Bench was, therefore, right in applying Article 120 of the
Limitation Act, 1908 under which the period of limitation for a suit for which
no specific period is provided in the Schedule was six years from the date when
the right to sue accrues. The suit was, therefore, clearly barred by limitation
and by virtue of Section 3 of the Limitation Act, 1908, the court was mandated
to dismiss it. #
76. As rightly pointed out by the Division Bench, the learned Single Judge
ought to have permitted the plea to be raised on the basis of the facts which
came to light. The Division Bench has correctly appreciated the plea of
limitation, in the facts and circumstances of the case, and rightly came to the
conclusion that the suit of the plaintiff was liable to be dismissed on the
ground of limitation. We agree with the conclusion of the Division Bench on
this issue. #
Alternative Relief:
77. The last issue which needs consideration relates to the alternative relief
prayed for by the plaintiff in Paragraph 16 of the plaint. The plaintiff
pleaded that in case the court to the conclusion that the Maharaja Paramjit
Singh had no authority to sell the immovable property to the plaintiff and
Dewan Jarmani Dass and/or that the plaintiff and the said Dewan Jarmani Dass
did not acquire any title to the suit property by virtue of the Indenture of
Conveyance dated 10.1.1950, then the plaintiff was entitled to a sum of Rs. 4
lacs as damages from the third defendant (Sukhjit Singh, the then Maharaja of
Kapurthala), for "breach of the covenant of title contained in the said
indenture of conveyance" * as a result of which the plaintiff would be deprived
of the whole of the suit property by reason of the said defect found in the
title of the Maharaja Paramjit Singh. It was pleaded that the third defendant
was the sole heir of late Maharaja Paramjit Singh and had inherited all his
properties and was, thus, bound and liable to keep the plaintiff harmless and
indemnified against "all losses, damages costs and expenses which the
plaintiff might sustain or incur by reason of the plaintiff being deprived of
the suit property." The plaintiff alleged that he had sustained damages in
the sum of Rs. 4 lacs "as per particulars hereto annexed and marked as Ex.
J." * and claimed the said amount from defendant No.3. Interestingly,
there is no annexure - `Ex.J.' to the original plaint on record. The third
defendant by his written statement while traversing the allegations on this
issue maintained that he was not liable to keep the plaintiff indemnified
against such losses. He also denied that the plaintiff had lost a sum of Rs. 4
lacs as alleged in his annexure-Ex.J., the particulars of which he also denied
having been supplied to him. A replication to the written statement of
Defendant no.3 was made by the plaintiff in which it is repeated that the third
defendant was bound and liable to keep the plaintiff indemnified against any
loss, damage, costs etc. suffered as a result of deprivation of the suit
property. The plaintiff reiterated that the third defendant was liable for the
claim in the suit and that "the particulars of the claim of 4 lakhs are on
the court file as Annexure `J' and the Defendant No.3 ought to have inspected
the court file". After anxiously wading through the mass of documents
filed in the trial court, we are unable to locate any such annexure - `J' in
the plaint. It is not known as to how the plaintiff arrived at the estimate of
the alleged damages claimed by him from third defendant as an alternative
relief (vide prayer clause (e) in the plaint).
78. Not only there is no pleading on the issue, but we find that there is no
evidence, whatsoever, let in by the plaintiff on this alternative relief
claimed. # All the witnesses examined by the plaintiff were with reference
to the title of the plaintiff. Not a single of the plaintiff's witnesses has
said a word about this alternative claim for damages in the sum of Rs. 4 lacs.
Apart therefrom, when the third defendant was examined, not a single question
seems to have been addressed to him in cross examination with regard to this
alternative claim of damages in the sum of Rs. 4 lacs.
79. Issues 9, 10 and 13 framed by the learned Single Judge pertained to this
claim. The learned Single Judge disposed of this claim by observing:
"It has been stated by defendant No.3, in his evidence, that he is the
only legal heir of his father Maharaja Paramjit Singh and he had succeeded to
the estate left behind by him. But in view of the fact that I have held that
the father of defendant No.3 was the owner of the property in dispute and had
the authority to sell the same, therefore the question of defendant No.3
becoming liable to re-compensate the plaintiff with any amount does not arise.
The issues are decided accordingly." *
80. The Division Bench dealt with this issue and observed (vide Paragraph 595):
"The learned Single Judge took the view that third defendant was not
liable to recompensate the plaintiff. It was not brought to the notice of the
learned Judge that the plaintiff did not press his claim against defendant No.
3 at the time of the trial." *
81. Although, in the written submissions filed before the High Court as well as
in the appeal before this Court, submissions have been made with regard to the
alternative relief, no arguments were addressed before us on this issue when
the oral submission were made by the counsel on both sides. Despite looking for
it, we are unable to locate anything on record which expressly suggests that
this claim had been expressly given up by the plaintiff during the trial. We
are unable to find out the basis on which the Division Bench arrived at this
conclusion. This fact, however, does not carry the case of the plaintiff any
further. The burden of establishing that the plaintiff had sustained damages
and the measure of damages was squarely on the plaintiff. The plaintiff has
singularly failed to discharge this onus both by lack of pleadings and lack of
evidence. In the circumstances, this alternative relief claimed by the
plaintiff must fail.
82. In the result, we find no reason to interfere with the impugned judgment of
the Division Bench of the High Court. The appeal is liable to be and is
dismissed.
83. In the facts and circumstances of the case, however, there shall be no
order as to costs.
Civil Appeal No. 3861 of 2001:
84. The facts, insofar as they are relevant for disposal of this appeal are as
under:
85. On 10.1.1950, the late Maharaja Paramjit Singh, ex-Ruler of Kapurthala
State purported to sell and convey the suit property to Dewan Jarmani Dass and
R.M. Seksaia by a registered sald deed for the consideration of Rs. 1.50 lacs.
86. We have already held, by our judgment delivered today in Civil Appeal No.
3862 of 2001, that Maharaja Paramjit Singh had no title to the suit property
which he could convey to the plaintiff. After purporting to sell the suit
property to M/s. Dewan Jarmani Dass and R.M. Seksaria, the petitioners put them
in possession.
87. On 29.3.1950, the Government of India, in exercise of its power under
Section 3 of the Delhi Premises (Requisition and Acquisition) Act, 1947, issued
a notice of requisition to R.M. Seksaira. This was objected to by R.M.
Seksaria, but ultimately an order of acquisition of the suit property was
passed on 17.6.1950.
88. On 4.12.1950, pursuant to the said order of requisition the Estate Officer
took possession of the suit property.
89. On 21.2.1951, a deed of transfer was signed between Dewan Jarmani Dass and
R.M. Seksaria by which Dewan Jarmani Dass conveyed, transferred his undivided
share, rights, title and interest in the property to R.M. Seksaria. There was
correspondence between R.M. Seksaria and the Estate Officer with regard to
disposal of the furniture, fittings drapery etc. in the suit property.
90. On 14.3.1952, the Delhi Premises (Requisition and Acquisition) Act, 1947
was repealed by the Requisitioning and Acquisitioning of Immovable Property Act,
1952. Section 24 of the new Act made a deeming provision under which the
properties requisitioned under the repealed Act were deemed to have been
requisitioned under the new Act.
91. On 11.5.1960, R.M. Seksaria (the plaintiff) filed a suit in the Delhi High
Court for declaration of his title to the suit property.
92. The Government of India had taken a decision that the suit property had
been refused to be recognised as the private property of the late Maharaja of
Kapurthala. It took the stand that the suit property was State property and
devolved upon PEPSU, and thereafter, on its successor, State of Punjab. In the
meanwhile, the Government of India had allowed the State of Punjab to use the
property.
93. By 10.3.1987 the requisitioning of the property came to an end. By this
time, however, there was a suit for declaration of title of the property. The
State of Punjab and the Government of India denied that R.M. Seksaria had
derived any title to the suit property, and, therefore, refused to hand it back
to R.M. Seksaria, despite the requisitioning order having come to an end.
94. On 18.5.1987, R.M. Seksaria filed a writ petition, CWP No. 1612/87 in the
High Court of Delhi for a direction to the Union of India, the Director of
Estate, Ministry of Urban Development and the State of Punjab to give vacant
possession of the suit property to the petitioners. This writ petition was
heard along with the first appeal RFA (OS) No. 19 of 1989 filed by the State of
Punjab and Union of India impugning the decree in favour of the plaintiff which
had been made by the learned Single Judge. When the writ petition was taken up
for hearing, the learned counsel appearing for the petitioners and the present
civil appeal fairly submitted to the court that, if the court accepted the case
of the plaintiff, then the petitioners would be entitled to the reliefs prayed
for in the writ petition. By its judgment dated 8.12.2000, the Division Bench
of the High Court dismissed the writ petition by observing thus in Paragraph 4:
"In the light of the findings rendered by us in RFA (OS) 19/89 the
plaintiff has no right at all in the suit property, the petitioners as legal
representatives of the plaintiff in the suit, have absolutely no right to pray
for the issuance of writ of mandamus and other reliefs." *
95. This decision of the Division Bench can hardly be faulted. We see no reason
to interfere. In the result, this appeal is also dismissed.
96. No order as to costs.