# DEPUTY CUSTODIAN, EVACUEE PROPERTY, NEW DELHI A . AND OTIIERS v. OFHCIAL RECEIVER OF THE ESTATE 01'' DAULAT RAM SURANA, DELHI September 3, I 964

- **Citation:** [1965] 1 S.C.R. 220
- **Court:** Supreme Court of India
- **Decided:** 1965
- **Bench:** P. B. Gajendragadkar, J. c. SHAH, N. Rajagopala Ayyangar
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/deputy-custodian-evacuee-property-new-delhi-a-and-otiiers-v-ofhcial-receiver-of-3354
- **Pages:** 11

## Headnote

Adrnbiistration of l::vocure Proptrty Act (31 of 1950), s. 7(1) and
Provincial Insolvency Act (5 of 1920), ss. 27 and 28(1)-Emigralion le
Pakistan-Emigrant declared insolvent and thereafter as evocue~Whether
hi.< property could he declared evacuee property.
An Indian emigrated to Pakistan in February, 1950.
In Man:h, 1950
a petition was presented by his creditors for adjudicating him an insolvent
and it was ordered. Thereafter in 1951 the Assistant Custodian of Evacuee
Property ;..ucd a notice under s. 7(1) of the Adminiotration of Evacuee
Property Act ( 31 of 1950) to the
interested
pcroons to show cause
why the emigrant's property should not be declared evacuee property.
In
spito ol objections of the respondent (Official Receiver), the declaration
was made in 1954, •nd the order was confinme<l by the Deputy Custodian
and the Cwtodian General.
The respondent then mo•cd the High Court
under An. 226 of the Constitution.
The High Court held that it must he
shown at the time of the declaration that the propeny in question is evacuee
property, and as the insolvent lost bis title to the property which had •csted
in the Official Receiver, the property could not be declared evacuee property. The Deputy Custodian appealed to the Supreme Court.·
HELD : The appeal should be allowed.
The construction of s. 7 ( 1) presents a problem which can be resolved
not merely by the adoption of the mechanical rulr of construction based on
grammar, but by a liberal construction which takes into account the bearing
and purport of rhe relevant words used in the section considered in the
light of the relevant provisions of the Act and the principal object of the
Act.
So construed. all that the section requires i•, that the appropriate
authority should con.•ider whether the property in r.,,pect of which a declaration ii about to be made was evacuee property under s. 2(f) of the
Admini>tration of Evacuee Property Act and the fact that the property haJ
vested in the Official Receiver before proceedings were commenced Under
s. 7( I) of the Act, would not affect the charact<r of the property. [225GH; 226A-B: 229E-F].
l::braltim Ahoaf',crkar and cu101her Y, Tek Chand Do/wani, {1953] S.C.R.
691, explained.

## Text

220
DEPUTY CUSTODIAN, EVACUEE PROPERTY, NEW DELHI A
.
AND OTIIERS
v.
OFHCIAL RECEIVER OF THE ESTATE 01'' DAULAT RAM
SURANA, DELHI
September 3, I 964
(P. B. GAJENDRAGADKAR, C.J., J. c. SHAH AND N. RAJAGOPALA
AYYANGAR JJ.)
Adrnbiistration of l::vocure Proptrty Act (31 of 1950), s. 7(1) and
Provincial Insolvency Act (5 of 1920), ss. 27 and 28(1)-Emigralion le
Pakistan-Emigrant declared insolvent and thereafter as evocue~Whether
hi.< property could he declared evacuee property.
An Indian emigrated to Pakistan in February, 1950.
In Man:h, 1950
a petition was presented by his creditors for adjudicating him an insolvent
and it was ordered. Thereafter in 1951 the Assistant Custodian of Evacuee
Property ;..ucd a notice under s. 7(1) of the Adminiotration of Evacuee
Property Act ( 31 of 1950) to the
interested
pcroons to show cause
why the emigrant's property should not be declared evacuee property.
In
spito ol objections of the respondent (Official Receiver), the declaration
was made in 1954, •nd the order was confinme<l by the Deputy Custodian
and the Cwtodian General.
The respondent then mo•cd the High Court
under An. 226 of the Constitution.
The High Court held that it must he
shown at the time of the declaration that the propeny in question is evacuee
property, and as the insolvent lost bis title to the property which had •csted
in the Official Receiver, the property could not be declared evacuee property. The Deputy Custodian appealed to the Supreme Court.·
HELD : The appeal should be allowed.
The construction of s. 7 ( 1) presents a problem which can be resolved
not merely by the adoption of the mechanical rulr of construction based on
grammar, but by a liberal construction which takes into account the bearing
and purport of rhe relevant words used in the section considered in the
light of the relevant provisions of the Act and the principal object of the
Act.
So construed. all that the section requires i•, that the appropriate
authority should con.•ider whether the property in r.,,pect of which a declaration ii about to be made was evacuee property under s. 2(f) of the
Admini>tration of Evacuee Property Act and the fact that the property haJ
vested in the Official Receiver before proceedings were commenced Under
s. 7( I) of the Act, would not affect the charact<r of the property. [225GH; 226A-B: 229E-F].
l::braltim Ahoaf',crkar and cu101her Y, Tek Chand Do/wani, {1953] S.C.R.
691, explained.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 489 of
J 962.
Appeal from the judgment and order dated April 18, I 960,
of the Punjab High Court (Circuit Bench) at Delhi in Civil Writ
No. 200-D of J 955.
R. Ganapathy Iyer and B. R. G. K. Achar. for the appellant~.
G. S. Pathak and B. C. Misra, for the respondent.
R
c
D
F
G
II
'oy, CUSTODIAN v. OFFL. RECEJVER (Gajendragadkar c. J.) 221
A
The Judgment of the Court was delivered by
Gajendragadkar C. J. What is the relevant date by reference
to which the character of the property has to be determined in
issuing a notification of evacuee property under section 7(1) of the
Administration of Evacuee Property Act, 1950 (No. 31 of 1950)
B
(hereinafter called the Act)? That is the short question which arises
in this appeal.
The decision of this question lies within a very
narrow compass, because it has to be found on a reasonable construction of the material words used in s. 7(1) itself; but the determination of the scope and effect of these material words presents a
somewhat difficult problem of construction and it has to be resolved
c
after reading the said provision in the light of other relevant
circumstances.
An Indian citizen named Daulat Ram Surana was carrying
on business at, Delhi as a jeweller in the name of Sardar Singh
Daulat Ram. He had a Muslim mistress and it appears that by
D
reason of his affection for the said mistress he migrated to Pakistan
in the first week of February, 1950. He was possessed of extensive
properties, both movable and immovable, but apparently, he was
involved in financial difficulties about that time, and so, before he
migrztted to Pakistan he transferred his t share in his ancestral
house in Baidwara Street, Delhi for a consideration of Rs. 26,000.
E
On the 14th March, 1950, Nanak Chand and certain other persons
claiming to be his creditors, filed a petition of insolvency against
the firm of Daulat Ram and against Daulat Ram himself.
On
June 17, 1950, both the firm and Daulat Ram were adjudicated
insolvents and the respondent, the Official Receiver, was appointed
the Receiver of the estate of the insolvents. In August, 1951, the
F
Official Receiver wanted to sell some items of the insolvents' property and the sale was fixed to be held on the 18th August, 1951.
Two days prior thereto, however, the Assistant Custodian of
Evacuee Property issued a notice under s. 7 ( 1 ) of the Act to
Daulat Ram and other interested persons to show cause why he
should not be declared an evacuee under s. 2 (d) (i) of the Act.
G
The respondent came to know of the said proceedings, appeared
before the Assistant Custodian and raised objections to the property
of Daulat Ram being declared as evacuee property. These objections wore overruled by the Assistant Custodian and. the property
of Daulat Ram was declared evacuee property on the 15th February, 1954. The respondent challenged this order by preferring an
H
appeal before the Authorised Dy. Custodian, a·nd when the appeal
wa.~ dismissed, he moved the Custodian Genera I in his revisional
jurisdiction. The revision application filed by the respondent was
222
SUPREME COURT REPORTS
(1965) I S.C.R.
also dismissed. The respondent then moved the Punjab High Court
A
by a writ petition and challenged the validity of the orders passed
by the respective authorities under the Act, declaring the property
of Daulat Ram as evacuee property.
To this petition, the Dy.
Custodian, Evacuee Property, the Authorised Dy. Custodian and
the Assistant Custodian were impleaded as respondents.
These
are the appellants before us.
B
When this matter was taken up before Bishan Narain J. of
the Punjab High Court, he took the view that the point raised for
his decision was of considerable importance, and so, he thought
that it should be decided by a larger Bench.
That is how the
writ petition was placed before a Division Bench of the said High c
Court.
The Division Bench has upheld the plea raised by the
respondent and has directed that the orders made by the Custodian
Department that the entire property of Daulat Ram vests in the
Custodian are illegal and should be quashed by a writ of certiorari.
It is against this order that the appellants have come to this Court
with a certificate granted by the High Court.
D
The dispute between the parties in the present proceedings
centres round the competing claims based on the retr05pective
operation of the two relevant orders. The appellants contend that
when a notification is issued under s. 7 (I) of the Act, the vei;ting
of the evacuee property in the Custodian takes effect in the present
case from the date when the evacuee migrated to Pakistan. The
date of Daulat Ram's migration to Pakistan is February 7 or 8,
1950, and the appellants' case is that though the declaration that
Dau lat Ram's property is evacuee property was made on
February 15, 1954, the vesting must be deemed to have taken
place as from February 7 or 8, 1950. The appellants concede
that the order of adjudication made against Daulat Ram on the
June 17, 1950 would, by virtue of the provisions contained in
s. 28(7) of the Provincial Insolvency Act relate back to the date
of the presentation of the petition made by his creditors in that
behalf, and that takes us to March 14, 1950. Thus, one
E
of the arguments which was urged before the High Oiurt
G
on behalf of the appellants and which has been placed before
u~ is that though both the declaration of the evacuee property and the adjudication as to Daulat Ram's insolvency have
retrospective operation, the said retrospective operation places the
declaration made under s. 7 ( I ) earlier than the date of adjudication, and so, the declaration made under s. 7 (I) must prevail
over the adjudication of Daulat Ram as insolvent. If that be the
true position, the fact that the property vested in the Official
H
DY. CUSTODIAN v. OFFL. RECEIVER (Gajendragadkar c. /.) 223
A Receiver under s. 28 of the Provincial Insolvency Act will not
matter, because by virtue of the declaration made, the property
of the evacuee must be deemed to have vested in the Custodian
on an earlier date and that gives priority to the title claimed by
the Custodian.
B
The argument thus presented for the appellants prima facie
appears to be attractive, but on a close examination of the relevant
provisions of sections 7 and 8 of the Act, it, becomes plain that
the said argument proceeds on a misconception of the effect of
the two sections read together. It is true thats. 8(1 )(a) provides
that any property declared to be evacuee property under s. 7 shall
c be deemed to have vested in the Custodian for the State in the
case of the property of an evacuee as defined in sub-clause (i) of
clause ( d) of section 2, from the date on which he leaves or left
any place in a State for any place outside the territories now
forming part of- India.
It has been found by the appropriate
authorities that Daulat Ram became an evacuee under s. 2 ( d) ( i)
D of the Act, and so, there can be no doubt that after the declaration was made in respei;t of his property under s. 7 (1), the vesting
in the Custodian will be deemed to have taken place on the date
of his migration. But this position does not assist the appellants
in the matter of construing s. 7 ( l), and the decision of the point
raised by the appellants must ultimately depend upon the conE struction of the said section. If the view taken by the High Court
is right, that before a declaration can be made under ·s. 7 ( l), it
must be shown that the property which is the subject-matter of the
proceedings under the said provision is, at the date of the declaration, evacuee property, then the result would be that if the said
property is not property of the evacuee at the relevant time, no
F declaration can be made under s. 7 ( 1), and there would be no
scope for the retrospective operation of the vesting of the property
in the Custodian under s. 8 (1). Section 8 (1) can come into
operation only if and after a · notification has been validly and
properly made under s. 7 (I). In other words, s. 8 (1) provides.
G for a statutory consequence of a valid declaration made under
s. 7 ( 1). That is why the said section cannot be pressed into
service for construing s. 7 ( l).
There is another argument which should be dealt with before
we address ourselves to the question of construing s. 7 (1). It is
pointed Out that s. 4 (1) of the Act provides that the provisions
H of this Act and of the rules and orders made thereunder shall
have effect notwithstanding anything inconsistent therewith
contained in any other law for the time being in force or .in any
224
SUPREME COURT REPORTS
(1965] l S.C.R.
~~ent ~aving elfec~ by virtue of any such law. The suggestion IS that 1f the material provisions of sections 27 and 28 of the
Provincial Insolvency Act on which the respondent's case about
the retrospective vesting of the insolvents' property in the Official
Receiver is based, are inconsistent with s. 4 (1) of the Act, section
4( I) prescribes that the relevant provisions of this Act
will
prevail over the said provisions of the Provincial Insolvency Act.
This argument is misconceived.
The relevant provisions of the
two sections of the Provincial Insolvency Act do not disclose anything inconsistent with the relevant provisions of the Act. and so.
there is no occasion to invoke the provisions of s. 4 ( 1) in order
A
B
c
to establish the conclusion that the prO\isions of the Act will
prevail over the said provisions of the Insolvency Act. Section
28(7) read with s. 27 of the Insolvency Act merely provides that
when an order of adjudication is made under s. 2 7. the insolvent's
property vests in the Official Receiver as from the date of the
presentation of the petition made against the debtor.
Neither
s. 7 (I ) • nor s. 8 of the Act can be said to be inconsistent with
D
these provisions. That is why we do not think any ar!?Ument can
be validly based on the provisions of s. 4 ( l) of the Act in repelling
the claim made by the respondent in the present proceedings.
That takes us to the question about the construction of
s. 7 (I). Section 7 (I ) which was in operation at the relevant time
reads thus :
E
"Where the Custodian is of opinion that any property
is evacuee property within the meaning of this Act, he may,
after causing notice theroof to be given in such manner
as may be prescribed to the persons interested, and after
holding such inquiry into the matter as the circumstances
F
of the case permit, pass an order declaring any such property to be evacuee property."
Jn substance, the High Court has held that when a declaration is
sought to be made in respect of the property of an evacuee, it
must be shown at the time of the declaration that the property in
question is evacuee property within the meaning of the Act.
G
"Evacuee property" is defined by s. 2(f) as any property of an
evacuee (whether held by him as owner or as a trustee or as a
beneficiary or as a tenant or in any other capacity) and includes
any property which has been obtained by any person from an
evacuee after the 14th day of August, 1947, by any mode of
transfer which is not effective by reason of the provisions contained
H
in section 40. The rest of the definition excludes certain properties
from the purview of s. 2(f), but with those excluded' properties
DY. CUSTODIAN v. OFFL. RECEIVER (Gajendragadkar c. J.) 225
A we are not concerned in the present proceedings. The respondent's contention is that at the time when &he declaration was.
made under s. 7 (1 ) , the adjudication order against Daulat Ram
had been made and his property had vested in the Official Receiver.
The inevitable consequence of this vesting is that the insolvent
had, as a result of the statutory provisions contained in ss. 27 and
B 28(7) of the Provineial Insolvency Act, lost his title to the
property and the title had vested .in the Official Receiver. That
being so, it could not be said that the property was evacuee property at the time when declaration was made under s. 7 (I). It
is significant, says Mr. Pathak for the respc>ndent, that whats. 7 ( 1)
requires is that the Custodian is of opinion that any property is
C evacuee property. · In other words, when the Custodian forms the
opinion about the character of the property, the property must
be evacuee property; 'and if that is so in the present case, the
property was not evacuee property at the relevant time, and so,
the declaration is bad and inoperative in law.
D
There is considerable force in this argument. The rules of
grainmar may suggest that when the section says that the property
is evacuee property, it prima facie indicates that the property
should bear that character at the time when the opinion is formed.
But Mr. Ganapathy Iyer for the appellants has strenuously contended that the construction of s. 7 ( 1) should not be based solely
E or primlirily on the mechanical application of the rules of grammar.
He urges that the construction fpr which Mr. Pathak contends
and which, in substance, has been accepted by the High Court,
would lead' to very anomalous results; and his argument is that
it is open to the Court to take into account the obvious aim and
object of the statutory provision when attempting the task of
F construing its words. !fit appears that the obvious aim and object
of the statutory provisions wou Id be frustrated by accepting the
literal construction suggested by the respondent, then it may be
open. to the Court to enquire whether an alternative construction
which would serve the purpose of achieving the aim and object
of the Act, is reasonably possible. Mr. Ganapathy Iyer argues that
G
what s. 7 ( 1) requires is that the property should be evacuee
property, and on his construction, all that the appropriate authority
is required to consider is whether the property in respect of which
a declaration is about to be made was property of the evacuee.
Evacuee property has been defined by the Act and its definition
imports the consideration as to whethi;r it is property of an evacuee.
H
Daulat Ram is undoubtedly ali evacuee and at the time of his
migration; the property in question was his property.
In that
sense, when the Custodian declared that it was evacuee property,
226
SUPREME COURT REPORTS
[I 965] I S.C.R.
he was fully justified in making the declaration, because the proA
perty was that of the evacuee.
If this construction is not accepted, it would clearly lead to
very anomalous cons~uences. We have already noticed that the
inclusive part of the definition prescribed by s. 2(f) brings within
the scope of the definition properties which are transferred by an
B
Indian citizen before he migrated to Pakistan.
The scheme of
s. 40 is clear.
The provisions of. s. 40( I) read with the other
relevant clauses of the said section indicate beyond any doubt
that the legislature intended to prohibit transfers made by intend·
ing evacuees with the object of converting their properties into
cash and taking it away from India. It was thought that unless c
this drastic measure was adopted, tl!e economic interests of the
country would be put in areat jeopardy because intending evacuees
could openly and conveniently dispose of their properties and
leave the country with cash in their pocket thereby materially
affecting the national economy of our country. That is why· in
defining evacuee property, it has expressly provided that this
D
definition would take in properties which had been transferred
by the intending evacuees prior to their migration from India after
August 14, 1947, and the inclusive part of the definition
covers all modes of transfers which become ineffective by reason
of the provisions contained in s. 40. Thus, it is clear that if the
intending evacuees transferred their properties before migration,
E
their properties would be deemed to be evacuee properties for the
purpose of s. 7 (I) and the transferees would have to submit to
the vesting of the said properties in the Custodian under s. 8 (1)
of the Act.
Similarly, s. 7( IA) and s. 7(2) deal with other ca1cs of
F
transfer and make them ineffective for the purpose of s. 7 (I).
Section 7 ( 1 A) provides that if during the pendency of any proceedings under sub-section (I) any person interested in the property dies. the proceedings shall, unless the Custodian otherwise
direct1. be continued and disposed of as if such person were alive.
Thi.- cbmc was added bv section 5 of Act 42 of 1954 with
G
r.:m"rc.:tiv~ dfcct to meet the problem raised by this Court in
1-:hrahim Al>oobaker and Anr. v. Tek Chand Dolwani.(')
In
th3t c3se. thi< Court held that where a Mohammedan against whom
procccdini::s :ire commenced under the Act for declaring him an
cv3cuce and hi' properties evacuee properties, dies during the
pcndency of the proceedings. he cannot be declared an evacuee
H
3ftcr his Jcath. and his properties which on his death vest in bis
-
1 !) (19.<JJ S.C R ''ii.
-
•.
DY. CUSTODIAN v. OFFL. RECEIVER (Gajendragadkar c. /.) 227
· A heirs under the Mohammedan law cannot be declared evacuee
properties. This decisi.on· was based substantially on the ground
that the material provisions of s. 7 ( 1) require an enquiry to be
made into the character of the properties before they are declared
to be evacuee properties and it was held that if pending such an
enquiry the person in respect of whose property the enquiry is
B proceeded with dies, the enquiry becomes inipossible, and so, the
proceedings must come to an end. ' The death of the evacuee opens
up succession to the property and the successors could not be
compelled to appear in an enquiry and raise pleas which the
deceased evacuee might have raised.
"If the Custodian cannot
take possession of the property of a living person before the
C declaration," observed Ghulam Hasan J. who spoke for the Court,
"by the same token he cannot take possession after the death of
the alleged evacuee when the property had passed into the hands
of the heirs." The enquiry contemplated by s. 7, ii was thought,
was a condition precedent to the making of the declaration under
s. 8 and since the right of the Custodian to exercise dominion
D over the property cannot arise until the enquiry is over, the death
of the alleged evacuee brings to an end the entire proceedings
under s. 7.
It was no doubt urged before this Court in that case that the
Act aims at fixing the nature of the property from a particular
E
date and that the proceedings taken are against the property and
not against the person. This argument was, however, characterised
as fallacious on the ground that there can be no property.
evacuee or otherwise, unless tliere is a person who owns that
property. It will thus be clear that the main reason which weighc<l
with this Court in coming to the conclusion that the proceedings
F
under s. 7 ( 1) are automatically terminated on the death of the
alleged evacuee was "that the property cannot be notified
as
evacuee property unless and until the person claiming interest in
it has been given notice." (p. 704).
In order to provide for the continuance of proceedings
initiated against an alleged evacuee even after his death,
the
G legislature stepped in and made an amendment to the Act by
inserting s. 7 (IA) retrospectively.
It would thus be seen that
s. 7 (IA) would come into operation in cases where the alleged
evacuee dies pending the enquiry under s. 7 ( 1). lt does not.
however, authorise the commencemept or institution of the enquiry
under s. 7 (1) after the death of the' alleged evacuee. Such a cas~
H
would still be governed by the principles laid down hy this Court
in Ebrahim Aboobaker's case(').
-(l)lt9s3fs.·c.R.691·.---
228
SUPREME COURT REPORTS
[ 1965] I S.C.R.
Incidentally, it would be pertinent to observe that the High
A
Court thought that this decision afforded substantial guidance in
dctcnnining the question of construction with which it was concerned in the present appeal. After quoting the material observations made by Ghulam Hasan J.'in Ebrahim Aboobaker's case('),
the High Court has observed that in view of the law laid down by
their Lordships of the Supreme Court it must be held that as
soon as the order of adjudication was made on the 17th June,
1950, the property of the insolvent vested in the. Official Receiver
for the purposes mentioned in the Provincial Insolvency Act, and
~o, it was not open to the Custodian to issue a declaration under
B
s. 7 ( 1 ) of the Act. With respect, we are unable to see how the
decision of this Court in Ebrahim Aboobaker's case(') can have
C
any relevance or materi~lity in construing s. 7 ( I ) of the Act for
the purpose of deciding ihe dispute between the parties before us.
The main test on which the validity of the proceedings taken
against Ebrahim Aboobaker was successfully challenged -.was
that the alleged cvacu~ having died, a proper and valid enquiry
D
':ould not be held. That test cannot be applied in the present case
elfectivelv. The alleged evacuee was alive at the date of the enquiry
and ther~ was no infirmity in the proceedings taken in that behalf.
Having taken the view that the decision of this Court in Ebrahim
Aboobaker's case(') was decisively in favour of the respondent's
contention, the High Court did not feel called upon to address
itself to the question of construction of s. 7 (I) in the light of the
other relevant considerations to which we have referred.
Reverting then to s. 7(2) o[ the Act, it is noticeable that
as a result of this provision, if a notice has been issued under
~ub-section (I) in respect of any property, such property shall,
pending the determination of the question whether it is evacuee
property or otherwise, be incapable of being transferred or charged
in any way, except with the leave of the Custodian, and no per.;on
shall be capable of taking any benefit from such transfer or charge
except with such leave. It is remarkable that the legislature has
taken the precaution of prescribing a blanket ban on transfer.;
of all properties in respect of which proceedings have commenced
under s. 7 ( I ) . This ban operates even in respect of properties
which may ultimately be found to be not evacuee properties, and
that means the intention of the legislature clearly was to leave all
properties as they were when proceedings have been commenced
in respect of them under s. 7 (I).
Thus, the position appears to be that transfers made by
intending evacuees before they migrated from India come within
- (I) [1 1h3) S.C.R. 691.
E
F
G
H
..
DY. CUSTODIAN v. OFFL. RECEIVER (Gajendragadkar C. /.) 229
A the definition of evacuee property, and declaration can be made
in respect of properties so transferred· under s. 7 ( 1 ) . Trmisfers
made pending the proceedings cannot defeat the purpose of the
enquiry under s. 7 ( 1 ) and a declaration can be made in spite of
such transfers pending the enquiry.
The death of an alleged
evacuee does not interrupt the continuance of the proceeilings
B and the declaration can be made even after his death that his properties were evacuee properties. If that be so, could it have been
the intention of the legislature to permit transf~rs of their properties
by evacuees between the date of their migration and the date of
the coinmencement of the proceedings under s. 7 ( 1 ) ? If the
view taken by the High Court is right, then it follows that wherever
C properties have been transferred by evacuees after their migration
and before the proceedings under s. 7 ( 1) commenced, they would
·be beyond the reach of the Act. In our opinion, it is very difficult,
if not impossible, to assume that such could have been the intention of the legislature. The risk posed by transfers which intending
D evacuees were naturally inclined to make to save their fortunes
was so grave at the relevant time that the legislature has taken
the precaution of making appropriate provisions to save the
economy of the country; and so, it seems to us that the consequence which inevitably flows from the adoption of the
construction for which Mr. Pathak contends is so patently
E
inconsistent with the clear and unambiguous object of the Act
that it would not be reasonable to accept that construction. In
our opinion, the construction of s. 7 (1 ) presents a problem which
can be resolved not merely by the adoption of the mechanical
rule of construction based on grammar, but by a liberal construction which takes into account the bearing and purport of the
F
relevant words. used in s. 7 (1), considered in the light of the
other relevant provisions of the Act and the principal object of
the Act.
Mr. Pathak no doubt attempted to suggest that the omission
to deal with the category of transfers to which we have just referred
may have been deliberate because he points out that the legislature
G may have intended that if the properties of the evacuees were com-
. pulsorily acquired under the Land Acquisition Act, or had vested
in the Official Receivers under s. 28 (7) of the Provincial Insolvency Act, they should be exempted from the proceedings under
s. 7(1) of the Act. We are not impressed by this argument. If
the legislature wanted to save these categories of transaction.~
H
where the evacuees' title was lost, it cduld have easily made a
suitable provision in that behalf. We feel no difficulty in holding
that the legislature could not have intended to permit private
L2Sup./64-2
230
SUPREME COURT REPORTS
( 1965] I S.C.R.
transfers of their properties by evacuees after they migrated from.
India, where these transfers were completed before the commencement of the proceedings under s. 7 ( l). We are, therefore,
satisfied that the view taken by the High Court does not correctly
represent the true scope and effect of the provisions contained in
s. 7 (I ) of the Act.
In the result, the appeal is allowed, the order passed by the
High Court is set aside and the writ petition filed by the respondent
is dismissed.
In the circumstances of the case, there would be
no order a~ to costs.
Appeal allowed.
A
B