# RAMESH PARSRAM MALANI & ORS v. THE STATE OF TELANGANA & ORS

- **Citation:** [2019] 15 S.C.R. 1051
- **Court:** Supreme Court of India
- **Decided:** 2019-10-22
- **Case number:** Civil appeal No.7477 of 2019
- **Bench:** L. Nageswara Rao, Hemant Gupta
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/ramesh-parsram-malani-ors-v-the-state-of-telangana-ors-33321
- **Pages:** 34

## Headnote

Displaced Persons (Compensation & Rehabilitation) Act,
1954 - ss.16, 17 and 20 - Displaced Persons (Compensation &
Rehabilitation) Rules, 1955 - r. 51 - Father of appellant was
resident of Sindh in the present day Pakistan and after partition,
came to settle in Hyderabad - Father of appellant asserted that he
was owner of 83.11 acres of land in Sindh and the same was verified
by the settlement claim officer - On basis of that order, appellant
applied for land in lieu of 83.11 acres of land left by him - Appellant
was allotted 40.4 standard acres of land - The father of appellant
did not raise any claim for allotment of additional land till his death
- Thereafter, appellant claimed allotment of 43.7 standard acres
against balance of verified claim - The Chief Commissioner of
Land Administration (CCLA) allotted the land measuring 19.26
standard acres - The questions which were required to be examined
were as to whether the Central Government having transferred land
to the State Government, could make allotment to the displaced
persons after May 24, 1980 - And, whether CCLA, as a delegate of
the Central Government, could allot land though he exercises the
appellate powers, the power of allotment having been vested with
the Managing Officer as per s. 17 of the Act - Held: The Circular
dated May 23, 1980 relates to administration, management and
disposal of compensation which is in terms of s. 16 of the Act - S.
16(2)(b) of the Act empowers the Central Government to constitute
such authority or Corporation for the purposes of sub-section (1)
i.e. custody, management and disposal of compensation pool - The
Central Government is competent to constitute any authority or
Corporation for the same purpose - Therefore, the transfer of land
forming part of compensation pool to the State Government has
legislative sanction in terms of s. 16(2)(b) of the Act - In the instant
case, the allotment was made by the CCLA as a delegatee of the
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Central Government - The Settlement Commissioner had no power
to make allotment of land falling in the compensation pool either
before May 23, 1980 or thereafter - Insofar as the power of CCLA
in terms of the scheme of the Act is concerned, the allotment of all
evacuee land is governed by the Act, therefore, the officers
competent to make allotment are the Managing Officers, whereas
power of appeal and revision are to be exercised by the Settlement
Commissioner or the Chief Settlement Commissioner - The CCLA
in terms of the scheme of the Act has no power to make allotment of
land as he exercises the appellate or revisional jurisdiction as a
delegate of the Central Government - The power of allotment is
vested with Managing Officer only in terms of s. 17 of the Act.
Dismissing the appeal, the Court
HELD: 1.The first and the foremost question which requires
to be examined is as to whether the Central Government having
transferred land to the State Government, could make allotment
to the displaced persons after May 24, 1980. Another question
which arises is whether CCLA, as a delegatee of the Central
Government, could allot land though he exercises the appellate
powers, the power of allotment having been vested with the
Managing Officer as per Section 17 of the Act. [Para 22] [1074G-H]
2. In the State of Andhra Pradesh, initially a letter was
communicated on December 9, 1964 in response to the
communication from the Government of India regarding winding
up of certain organization of the Central Government and transfer
of land to the State. However, on May 24, 1980, the transfer of
the land in compensation pool to the State Government was
completed when the circular contemplating administration,
management and disposal of remaining undisposed evacuee
property was issued. The circular provides that the Central
Government is to be given 15% of realised value of the properties
after sale and the balance sale amount was

## Text

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RAMESH PARSRAM MALANI & ORS
v.
THE STATE OF TELANGANA & ORS.
(Civil appeal No.7477 of 2019)
OCTOBER 22, 2019
[L. NAGESWARA RAO AND HEMANT GUPTA, JJ.]
Displaced Persons (Compensation & Rehabilitation) Act,
1954 - ss.16, 17 and 20 - Displaced Persons (Compensation &
Rehabilitation) Rules, 1955 - r. 51 - Father of appellant was
resident of Sindh in the present day Pakistan and after partition,
came to settle in Hyderabad - Father of appellant asserted that he
was owner of 83.11 acres of land in Sindh and the same was verified
by the settlement claim officer - On basis of that order, appellant
applied for land in lieu of 83.11 acres of land left by him - Appellant
was allotted 40.4 standard acres of land - The father of appellant
did not raise any claim for allotment of additional land till his death
- Thereafter, appellant claimed allotment of 43.7 standard acres
against balance of verified claim - The Chief Commissioner of
Land Administration (CCLA) allotted the land measuring 19.26
standard acres - The questions which were required to be examined
were as to whether the Central Government having transferred land
to the State Government, could make allotment to the displaced
persons after May 24, 1980 - And, whether CCLA, as a delegate of
the Central Government, could allot land though he exercises the
appellate powers, the power of allotment having been vested with
the Managing Officer as per s. 17 of the Act - Held: The Circular
dated May 23, 1980 relates to administration, management and
disposal of compensation which is in terms of s. 16 of the Act - S.
16(2)(b) of the Act empowers the Central Government to constitute
such authority or Corporation for the purposes of sub-section (1)
i.e. custody, management and disposal of compensation pool - The
Central Government is competent to constitute any authority or
Corporation for the same purpose - Therefore, the transfer of land
forming part of compensation pool to the State Government has
legislative sanction in terms of s. 16(2)(b) of the Act - In the instant
case, the allotment was made by the CCLA as a delegatee of the
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Central Government - The Settlement Commissioner had no power
to make allotment of land falling in the compensation pool either
before May 23, 1980 or thereafter - Insofar as the power of CCLA
in terms of the scheme of the Act is concerned, the allotment of all
evacuee land is governed by the Act, therefore, the officers
competent to make allotment are the Managing Officers, whereas
power of appeal and revision are to be exercised by the Settlement
Commissioner or the Chief Settlement Commissioner - The CCLA
in terms of the scheme of the Act has no power to make allotment of
land as he exercises the appellate or revisional jurisdiction as a
delegate of the Central Government - The power of allotment is
vested with Managing Officer only in terms of s. 17 of the Act.
Dismissing the appeal, the Court
HELD: 1.The first and the foremost question which requires
to be examined is as to whether the Central Government having
transferred land to the State Government, could make allotment
to the displaced persons after May 24, 1980. Another question
which arises is whether CCLA, as a delegatee of the Central
Government, could allot land though he exercises the appellate
powers, the power of allotment having been vested with the
Managing Officer as per Section 17 of the Act. [Para 22] [1074G-H]
2. In the State of Andhra Pradesh, initially a letter was
communicated on December 9, 1964 in response to the
communication from the Government of India regarding winding
up of certain organization of the Central Government and transfer
of land to the State. However, on May 24, 1980, the transfer of
the land in compensation pool to the State Government was
completed when the circular contemplating administration,
management and disposal of remaining undisposed evacuee
property was issued. The circular provides that the Central
Government is to be given 15% of realised value of the properties
after sale and the balance sale amount was permitted to be
retained by the State Government. The transfer of land to the
State Government is complete w.e.f. June 1, 1980 subject to the
conditions specified in the Circular dated May 23, 1980 such as
payment of 15% of realised value to the Central Government.
Even if, such value is not paid by the State Government, it is
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between the State Government and the Central Government and
not for any third party to make a grievance or dispute the same.
[Para 23] [1075-A-C]
3. All evacuee property in terms of notification issued by
the Central Government from time to time in terms of Section 12
of the Displaced Persons (Compensation & Rehabilitation) Act,
1954 forms part of compensation pool under Section 14 of the
Act. Section 16 of the Act empowers the Central Government to
take such measures as is considered necessary or expedient for
the custody, management and disposal of compensation pool. The
Circular dated May 23, 1980 relates to administration,
management and disposal of compensation which is in terms of
Section 16 of the Act. Section 16(2)(b) of the Act empowers the
Central Government to constitute such authority or corporation
for the purposes of sub-section (1) i.e. custody, management and
disposal of compensation pool. The Central Government is
competent to constitute any authority or corporation for the same
purpose. Therefore, the transfer of land forming part of
compensation pool to the State Government has legislative
sanction in terms of Section 16(2)(b) of the Act. [Para 24]
[1075-D-F]
4. The argument raised by the appellant that the Central
Government has notified the authorities to give effect to the
provisions of the Act, therefore, the Central Government has
retained control and administration of the evacuee property, is
misconceived. The land forming part of the compensation pool
was transferred to the State Government and the officers of the
State Government were entrusted with the functions of Managing
Officer or Settlement Commissioner, as the case may be. The
allotment of all evacuee land is governed by the Act, therefore,
the officers competent to make allotment are the Managing
Officers, whereas power of appeal and revision are to be exercised
by the Settlement Commissioner or the Chief Settlement
Commissioner. Such notifications facilitate the exercise of powers
under the Act by the officers of the State Government in respect
of land which stood transferred to the State Government. The
CCLA in terms of the scheme of the Act has no power to make
allotment of land as he exercises the appellate or revisional
RAMESH PARSRAM MALANI & ORS. v.
STATE OF TELANGANA & ORS.
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jurisdiction as a delegate of the Central Government. The power
of allotment is vested with the Managing Officer only in terms of
Section 17 of the Act. [Para 28] [1078-D-G]
5. The allotment was made by the CCLA as a delegatee of
the Central Government. The Settlement Commissioner had no
power to make allotment of land falling in compensation pool either
before May 23, 1980 or thereafter. Since the land stood
transferred to the State Government, the CCLA as a delegatee
of the Central Government, could not deal with the land forming
part of compensation pool which stood transferred to the State
Government. [Para 29] [1078-G-H; 1079-A]
6. On this ground alone, the allotment made in favour of
the appellant on February 26, 2003 cannot be sustained in view
of the Division Bench judgment of Punjab and Haryana High Court
in Ram Chander, as approved by this Court in Pala Singh. this
Court finds that the Central Government or its delegatee could
not allot land after the same was transferred to the State as a part
of the package deal. [Para 30] [1079-B]
7. However, this Court is unable to agree with the High
Court that transfer of land to the State Government takes such
transferred land out of compensation pool. The land transferred
to the State Government continues to be part of compensation
pool but it is required to be disposed of by the Officers of the
State who have been conferred the powers of the Managing Officer
or of the Settlement Commissioner for the settlement of the
displaced persons alone. It is only after the displaced persons
are settled, the State Government may utilize the land for other
purposes. [Para 31] [1079-C-D]
Amar Singh & Ors. v. Custodian, Evacuee Property,
Punjab & Anr. AIR 1957 SC 599 : [1957] SCR 801
- referred to.
Ram Chander v. The State of Punjab & Ors.
(1968) 2 ILR P&H 651 - approved.
Pala Singh (Deceased) by LRs. v. Union of India &
Ors. (1987) Suppl. SCC 201 : [1987] SCR 624 ;
Chameli Devi & Ors. v. Union of India & Ors.
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CWP No.14772 of 2000 decided on November 14,
2017 ; Union of India v. International Sindhi
Panchayats & Ors. Civil Appeal No. 6079 of 2010
decided on April 28, 2014 - relied on.
Case Law Reference
[1957] SCR 801
 relied on
Para 8
(1968) 2 ILR P&H 651 approved
Para 26
[1987] SCR 624
 relied on
Para 27
CIVIL APPELLATE JURISDICTION: Civil Appeal No.7477 of
2019
From the Judgment and Order dated 12.02.2016 of the High Court
of Judicature at Hyderabad for the State of Telangana and the State of
Andhra Pradesh in Writ Petition No.4066 of 2006
 Ms. Pinki Anand, ASG, J. Ramchandar Rao, AAG, Kapil Sibal,
M.S. Prasad, Ms. Aishwarya Bhati, Guru Krishnakumar, V.Giri,
C.S. Vaidyanathan, K. Rana Mukherjee, Sr. Advs., P. Ram Reddy,
Krishna Kumar Singh, Ramesh Kumar Mishra, Tripurari Roy, Varun
Thakur, Brajesh Pandey, Ms. Shraddha Saran, Varinder Kumar Sharma,
Sudhakar Rao Ambati, Nithin Pavuluri, Ms. Chitrangada R, Ms. Celeste
Agarwal, Ms. Kirti K., K. Shivraj Choudhuri, G. V. R. Choudary, Harsh
Singhal, A. Sudhakar Rao, Tanmaya Agarwal, Chandra Mohan Anisetty,
Saurabh Mishra, Ms. Samridhi Pal, Abhishek Singh, Ms. Aashnaa Bhatia,
Onkar Singh, Arun Verma Sayooj Mohandas M., Ms. Snidha Mehra,
Ms. Kirti Dua, Ms. Tanisha Samanta, B. V. Balaram Das, B. Krishna
Prasad, T. V. Ratnam, P. Venkat Reddy, Prashant Tyagi, Dr. Rajaram
Punna, Akshay Nagarajan, Anirudh Gupta, P. Srinivas Reddy,
M/s. Venkat Palwai Law Associates, D. Bharat Kumar, Tadimala Baskar
Gowtham, Aman Shukla, Abhijit Sengupta K. Venkat Rao, Ms. Kanika
Sharma, Venkateshwar Rao Anumolu, Advs. for the appearing parties.
The Judgment of the Court was delivered by
HEMANT GUPTA, J.
1. The legality and validity of an order passed by the Chief
Commissioner of Land Administration, Andhra Pradesh1 on February
26, 2003 is subject matter of consideration in the present appeal. Vide
RAMESH PARSRAM MALANI & ORS. v.
STATE OF TELANGANA & ORS.
1for short, 'CCLA'
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aforesaid order, 19.26 standard acres of land in Village Poppalguda,
District Ranga Reddy was allotted to the appellant by the CCLA (as a
delegatee of the Central Government) as balance of verified claim of
43.7 standard acres of land.
2. Some facts would be necessary to appreciate the contention
raised by the parties. One Parsram Ramchand Malani, father of the
appellant, was resident of Sindh in the present-day Pakistan and after
partition, came to settle in Hyderabad. The father of the appellant
asserted that he was owner of 83.11 acres of land in Sindh. Such land
was verified vide an order passed by Settlement Claim Officer, Bombay
on November 22, 1952 (copy submitted by the appellant during the course
of the arguments). On the basis of such order, the father of the
appellant applied for 200 acres of land in lieu of 83.11 acres of land left
by him in the West Pakistan (copy submitted by the appellant during the
course of the arguments). It is on the basis of such application that 40.4
standard acres of land (323.10 local acres) was allotted in District
Hyderabad East, Village Bata Singaram, measuring 32.12 standard acres
(262.11 local acres) and in Hyderabad West, Village Boinapally
measuring 7.8 standard acres (60.39 local acres). There is no dispute
between the parties till such allotment. Such allotment was made prior
to commencement of the Displaced Persons (Compensation &
Rehabilitation) Act, 19542. Therefore, to regularise such allotment,
another letter was issued on March 24, 1956 after commencement of
the Act. The father of the appellant did not raise any claim for allotment
of additional land till his death on August 10, 1988. It may be mentioned
that Rule 51 of the Displaced Persons (Compensation & Rehabilitation)
Rules, 19553 provides for scale of compensation in the form of land in
accordance with the Land Allotment Scheme in the States of Punjab
and Patiala and the East Punjab States Union as set out in Appendix
XIV. A perusal of Appendix XIV would show that against area
abandoned of 83 standard acres, the entitlement is allotment of 45.83⁄4
acres. It has also come on record that the father of the appellant, the
displaced person, sold the entire land allotted to him soon after
allotment.
3. The appellant addressed a letter to the CCLA on March 15,
2001 claiming allotment of 43.7 standard acres against balance of
verified claim. The CCLA addressed the letter to the Settlement
2for short, 'Act'
3for short, 'Rules'
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Officer, Ministry of Home Affairs, Government of India on May 5, 2001
but no response was received from the Ministry of Home Affairs. On
February 21, 2003, the appellant made another representation to the
CCLA pursuant to which CCLA allotted the land measuring 19.26
standard acres (148.3 local acres) in Survey No. 301 to 308, 325 to 328
and 331 part in favour of the appellant on February 26, 2003, which is
the subject matter of present appeal.
4. The orders of CCLA were stayed by a memo of Government
of Andhra Pradesh dated March 20, 2003. The Secretary to Revenue
Department in the Government of Andhra Pradesh initiated suo moto
proceedings in respect of six cases of allotment of evacuee property in
Hyderabad and Ranga Reddy District. Subsequently, a show-cause
notice was issued to the appellant on August 20, 2003. The appellant
filed writ petition before High Court of Andhra Pradesh challenging the
show-cause notice and the stay order dated March 20, 2003. The High
Court disposed of the writ petition on November 14, 2003 with a
direction to the appellant to approach the Revisional Authority. The
Revisional Authority dismissed the revision filed by the State on June 28,
2006 holding that the allotment of land is in accordance with the Act.
5. The said order was challenged by the State through the District
Collector, Ranga Reddy District by way of a writ petition before the
High Court at Hyderabad. Such writ petition was allowed on February
12, 2016. It is the said order which is subject matter of challenge in the
present appeal.
6. The High Court has, inter alia, found that CCLA was not the
competent authority to make allotment of land, inter alia,for the reason
that there was no delegation by the Central Government in his favour to
make allotment and secondly, for the reason that the land stood transferred
to the State Government on the basis of communication dated May 24,
1980 and was, thus, not available in compensation pool for allotment.
Thirdly, the High Court also found that the claim of the appellant suffers
from delay and laches.
7. A brief resume of the Act, process of allotment and subsequent
repeal of the Act needs to be recapitulated. In the aftermath of partition
of the country in 1947, there was large scale movement of population
from one part of the country to another country. Since, large scale of
population moved, there was a question of the rehabilitation of the
population migrating from one country to another to deal with the property
RAMESH PARSRAM MALANI & ORS. v.
STATE OF TELANGANA & ORS. [HEMANT GUPTA, J.]
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of the population who left the country. The property of the persons who
left the country vested in the Union under the Administration of Evacuee
Property Act, 1950. The custodian was responsible for preservation,
management and administration of evacuee property as was done by
various State legislatures. However, the law governing allotment of
evacuee property to displaced persons was statutorily provided by the
Act. The procedure was that the persons who migrated to the country
will apply for verification of their property including land left behind in
West Pakistan and such property was verified on the basis of revenue
record either received by the Government of India or verified by the
revenue authorities in Pakistan. Such verification of the property was
called as verified claim in terms of Section 2(e) of the Act. Such verified
claim entitles the migrant defined as displaced person in Section 2(b) of
the Act for compensation in the manner prescribed under Section 8 of
the Act. The property left by the persons migrating to Pakistan (evacuee
persons) was put in the compensation pool as defined in Section 2(a) of
the Act and was a source of resettling the displaced persons.
8. The process of resettling the displaced persons is based upon
the following steps as found by this Court in Amar Singh & Ors. v.
Custodian, Evacuee Property, Punjab & Anr.4:
"1. Registration and verification of land claims.
2. Assessment and valuation of such claims.
3. Classification of the villages and of lands of evacuees available
for allotment.
4. Allocation of the claims to various areas with reference to such
classification.
5. Allotment of lands to individuals with reference to the valuation
of their claims, guided by various considerations, priorities and
preferences and so forth administratively determined."
9. The first step is registration and verification of land claims i.e.
verification of the property such as land in the present day Pakistan.
The assessment and valuation of such claims is the second step which is
required, for which Rule 51 read with Appendix XIV prescribes the
scale of land which can be allotted in view of verified claim of the property
left in the present day Pakistan. The third step is identification of evacuee
4 AIR 1957 SC 599
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land available which forms part of the compensation pool. Such land
including urban and rural land available for allotment with reference to
the valuation of the claims guided by other consideration, priorities and
preferences.
10. The displaced person as defined in Section 2(b) of the Act
includes successor-in-interest of any such person. Such displaced person
having a verified claim has to make an application for payment of
compensation on or before June 30, 1955. The Settlement Commissioner
would make an inquiry in the manner prescribed to determine the amount
of compensation. A displaced person is entitled to payment of cash
compensation or compensation in terms of land out of compensation
pool in terms of Section 8 of the Act. Section 12 empowers the Central
Government to acquire any evacuee property for a public purpose being
a purpose connected with the relief and rehabilitation of displaced persons.
In terms of sub-section (4) of Section 12, all evacuee property acquired
in terms of sub-section (1) or sub-section (3) forms part of the
compensation pool. Section 16 of the Act empowers the Central
Government to take such measures as it considers necessary or expedient
for the custody, management and disposal of the compensation pool.
Section 16(2)(b) empowers the Central Government to constitute such
authority or corporation as it may deem fit for the management and
disposal of the compensation pool.
11. The Managing Officer or the Managing Corporation is
competent to transfer any property out of compensation pool in terms of
Section 20 of the Act but the allotment is as per the valuation determined
by the Settlement Commissioner in terms of Section 20(1)(c) of the Act.
The relevant provisions of the statute read as under:
"THE DISPLACED PERSONS (COMPENSATION &
REHABILITATION) ACT, 1954
2(a) "compensation pool" means the compensation pool constituted
under section 14;
2(b) "displaced person" means any person who, on account of
the setting up of the Dominions of India and Pakistan, or on account
of civil disturbances or the fear of such disturbances in any area
now forming part of West Pakistan, has after the first day of
March, 1947, left, or been displaced from, his place of residence
in such area and who has been subsequently residing in India, and
RAMESH PARSRAM MALANI & ORS. v.
STATE OF TELANGANA & ORS. [HEMANT GUPTA, J.]
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includes any person who is resident in any place now forming
part of India and who for that reason is unable or has been
rendered unable to manage, supervise or control any immovable
property belonging to him in West Pakistan, and also includes the
successors- in interest of any such person;
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4. Application for payment of compensation. - (1) The Central
Government shall, from time to time, but not later than the thirtieth
day of June, 1955, by notification in the Official Gazette, require
all displaced persons having a verified claim to make applications
for the payment of compensation and any such notification may
be issued with reference to displaced persons residing in any State
or in any one of a group of States.
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8. Form and manner of payment of compensation. - (1) A
displaced person shall be paid out of the compensation pool the
amount of net compensation determined under sub- section (3) of
section 7 as being payable to him, and subject to any rules that
may be made under this Act, the Settlement Commissioner or
any other officer or authority authorised by the Chief Settlement
Commissioner in this behalf may make such payment in any one
of the following forms or partly in one and partly in any other
form, namely:-
(a) in cash;
(b) in Government bonds;
(c) by sale to the displaced person of any property from the
compensation pool and setting off the purchase money against
the compensation payable to him;
(d) by any other mode of transfer to the displaced person of any
property from the compensation pool and setting off the valuation
of the property against the compensation payable to him;
(e) by transfer of shares or debentures in any company or
corporation;
(f) in such other form as may be prescribed.
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(2) For the purpose of payment of compensation under this Act,
the Central Government may, by rules, provide for all or any of
the following matters, namely:-
(a) the classes of displaced persons to whom compensation may
be paid;
(b) the scales according to which, the form and manner in which,
and the instalment by which, compensation may be paid to different
classes of displaced persons;
(c) the valuation of all property, shares and debentures to be
transferred to displaced persons;
(d) any other matter which is to be, or may be, prescribed.
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14. Compensation pool. - (1) For the purpose of payment of
compensation and rehabilitation grants to displaced persons, there
shall be constituted a compensation pool which shall consist of-
(a) all evacuee property acquired under section 12, including the
sale proceeds of any such property and all profits and income
accruing from such property;
(b) such cash balances lying with the Custodian as may, by order
of the Central Government, be transferred to the compensation
pool;
(c) such contributions, in any form whatsoever, as may be made
to the compensation pool by the Central Government or any State
Government;
(d) such other assets as may be prescribed.
(2) The compensation pool shall vest in the Central Government
free from all encumbrances and shall be utilised in accordance
with the provisions of this Act and the rules made thereunder.
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16. Management of compensation pool. - (1) The Central
Government may take such measures as it considers necessary
or expedient for the custody, management and disposal of the
RAMESH PARSRAM MALANI & ORS. v.
STATE OF TELANGANA & ORS. [HEMANT GUPTA, J.]
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compensation pool in order that it may be effectively utilised in
accordance with the provisions of this Act.
(2) In particular, and without prejudice to the generality of the
foregoing power, the Central Government may, for the purposes
referred to in sub-section (1), by notification in the Official Gazette.-
(a) appoint such officers as it may deem fit (hereinafter referred
to as managing officers); or
(b) constitute such authority or corporation, as it may deem fit
(hereinafter referred to as managing corporation).
(3) Every managing corporation shall be constituted under such
name and shall consist of such number of persons as may be
specified in the notification, and every such corporation shall be a
body corporate having perpetual succession and a common seal
and shall by the said name sue and be sued:
Provided that one-third of the members of every managing
corporation shall be non-officials.
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17. Functions and duties of managing officers and managing
corporations.- (1) All managing officers or managing corporations
shall perform such functions as may be assigned to them by or
under this Act under the general superintendence and control of
the Chief Settlement Commissioner.
(2) Subject to the provisions of this Act and the rules made
thereunder, a managing officer or managing corporation may take
such measures as he or it considers necessary or expedient for
the purpose of securing, administering, preserving, managing or
disposing of any property in the compensation pool entrusted to
him or it and generally for the purpose of satisfactorily discharging
any of the duties imposed on him or it by or under this Act and
may for any such purpose as aforesaid, do all acts and incur all
expenses necessary or incidental thereto.
(3)
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20. Power to transfer property out of the compensation
pool. - (1) Subject to any rules that may be made under this Act,
the managing officer or managing corporation may transfer any
property out of the compensation pool-
(a) by sale of such property to a displaced person or any association
of displaced persons, whether incorporated or not, or to any other
persons, whether the property is sold by public auction or
otherwise;
(b) by lease or any such property to a displaced person or any
association of displaced person, whether incorporated or not, or
to any other person;
(c) by allotment of any such property to a displaced person or an
association of displaced persons whether incorporated or not, or
to any other person, on such valuation as the Settlement
Commissioner may determine;
(d) in the case of a share of an evacuee in a company, by transfer
of such share to a displaced person or any association of displaced
persons, whether incorporated or not, or to any other person.
12. To give effect to the provisions of the Statute, the Central
Government framed the Rules in exercise of the power conferred under
Section 40 of the Act. Rule 3 provides for an application for compensation
to be submitted by a displaced person having a verified claim and in case
of death of a displaced person, by his successor-in-interest. Rule 11
contemplates verification of claim by the Settlement Commissioner. Rule
49 contemplates that a displaced person having a verified claim in respect
of an agricultural land be paid compensation by allotment of agricultural
land. The scale of compensation in the form of land is set out in Appendix
XIV. In terms of Rule 52, the Central Government may from time to
time having regard to the availability of land, determine the maximum
area of land which may be allotted in the first instance to a person having
a verified claim for agricultural land. Rule 86 deals with an application
for compensation by successor-in-interest. Some of the Rules which
are relevant for examining the issues in hand are reproduced hereunder:
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"THE DISPLACED PERSONS (COMPENSATION &
REHABILITATION) RULES, 1955
3. Persons entitled to make application for compensation -
An application for compensation may be made by a displaced
person having a verified claim or if such displaced person is dead,
by his successor-in-interest.
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11. Enquiry by the Settlement Commissioner on receipt of
duplicate copy of compensation application - (1) On receipt
of a duplicate copy of an application for compensation from a
Settlement Officer, the Settlement Commissioner (Headquarters)
shall verify the assessed value of the claim as stated in the
application, with the final order in respect thereof in the claims
record.
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34. Date of transfer. - Where any property is transferred to any
person under this chapter, the property shall be deemed to have
been transferred to him:-
(a)
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(b)
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(c)
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xx
(d) in any other case, from such date as the Central Government
may, by general or special order, specify.
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49. Compensation normally to be paid in the form of land -
Except as otherwise provided in this chapter, a displaced person
having a verified claim in respect of agricultural land shall, as far
as possible, be paid compensation by allotment of agricultural land.
Provided that where any such person wishes to have his claim
satisfied against property other than agricultural land, he may
purchase such property by bidding for it at an open auction or by
tendering for it and in such a case the purchase price of the property
shall be adjusted against the compensation due on his verified
claim for agricultural land which shall be converted into cash at
the rate specified in rule 56.
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51. Scale of compensation in the form of land - The scale for
the allotment of land as compensation in respect of a verified
claim for agricultural land shall be the same as in the quasipermanent Land Allotment Scheme in the States of Punjab and
Patiala and the East Punjab States Union as set out in Appendix
XIV.
Explanation - If any public dues are recoverable, the allottable
area shall be reduced correspondingly.
52. Manner of allotment of land - The Central Government
may, from time to time, having regard to the availability of land,
determine the maximum area of land which may be allotted in the
first instance to a person having a verified claim for agricultural
land. Such area shall be the area permissible under the scheme
referred to in rule 51 or thirty standard acres whichever is less:
Provided that the balance, if any, of the area permissible for
allotment according to the scale referred to in Rule 51 shall be
given later in instalments as and when more land becomes available
for allotment.
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86. Proof by successor-in-interest - (1) On receipt of an
application for compensation from any person claiming to be a
successor-in-interest of any deceased claimant as provided in rule
4, the Regional Settlement Commissioner or the Settlement
Officer, as the case may be, take steps for the determination of
his claim.
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13. The Revenue Department of Government of Andhra Pradesh
on December 9, 1964 in response to the communication of the Regional
Settlement Commissioner, Bombay had informed its officials, vide
Annexure P/2, that the Settlement Organization was in the process of
winding up and that they had to find ways and means for speeding up
the process by transferring certain items of this work to the State
Authorities. The Government of India communicated the sanction of
the President to transfer certain items of work which were dealt with by
the Office of the Regional Settlement Commissioner, Bombay to the
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State Government on payment of agency charges. The items of work
transferred were collection of rent dues of acquired evacuee properties;
disposal of remaining acquired evacuee properties including urban
agricultural lands; disposal of unacquired evacuee properties; disposal
of rural agricultural lands and recoveries in respect of evacuee rights
transferred to locals; collection of installments on price of land transferred
on installment basis; and collection of lease money from the occupants
of evacuee lands on percentage basis of the amount collected by the
State Government.
14. It is thereafter, on May 24, 1980, the Ministry of Supply and
Rehabilitation Department, Department of Rehabilitation, Government
of India issued letter in respect of transfer of items of work relating to
administration, management and disposal of undisposed acquired evacuee
lands/properties and realisation of rental demands etc. It was
communicated as under:
"Subject: Transfer of items of work relating to administration,
management and disposal of undisposed of acquired evacuee
lands/properties and realisation of rental demands etc.
Sir,
I am directed to state that the question of administration,
management and disposal of the remaining undisposed of acquired
evacuee lands/properties and realisation of arrears of rental
demands outstanding against individuals in respect of evacuee
properties in the State of Andhra Pradesh has been under
consideration of the Government of India for some time past.
2. It has been observed that only a limited number of acquired
evacuee agricultural lands/properties remain to be disposed of.
Besides, arrears on account of rural and urban evacuee properties
which run into considerable amount have become long overdue
for recovery and their realisation is presenting considerable
difficulty.
3. With a view to effecting economy in expenditure and ensuring
proper arrangement for administration, management and disposal
of acquired evacuee lands/properties and recovery of arrears of
rent of rural and urban evacuee properties it has been decided in
public interest to transfer the aforesaid items of work to the Govt.
of Andhra Pradesh for disposal of the residuary work in a
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satisfactory manner and for carrying out the purposes of the
Displaced Persons (Compensation & Rehabilitation) Act, 1954
and the Rules framed thereunder.
4. I am directed to convey the sanction of the President of India
to the transfer of the work relating to administration, management
and disposal of the remaining undisposed of acquired lands/evacuee
properties and recovery of arrears of rent etc. to State
Government on the terms and conditions specified against each:
The properties, would, thereafter, be managed and disposed of by
the State Government who would pay to the Government of India
15% of the reserve price/market value as assessed in 1953 or
15% of the value realised as a result of disposal of these properties,
as the case may be. The balance amount would be retained by
the State Government.
II. RURAL AGRICULTURAL LAND.
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III.
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IV. DISPOSAL OF JUDICIAL CASES RELATING TO
EVACUEE PROPERTIES IN THE STATE OF ANDHRA
PRADESH
5. I. URBAN EVACUEE PROPERTIES AND URBAN EVACUEE
LANDS.

Sl.
No.
Description of assets

Payment to be made by
the State Govt. to the
Govt. of India
(a)
39
properties
in
the
Districts
of
Khamman,
Medak,
and
Mahboobnagar, the reserve
price
of
which
is
Rs.1,62,000/- (Rupees one
lakh
and
sixty
two
thousands).
15% of the reserve price.
(b)
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(c)

(d)

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V.
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VI.RESIDUARY WORK IN THE SETTLEMENT WING
Residuary work relating to the properties etc. already disposed of
will be taken over by the Sate Govt. and dealt with by them
hereafter.
VII.
RECORDS
The files pertaining to the litigation work referred to in item No.
(V) above will be handed over by a representative of this
Department at Hyderabad. The files pertaining to the residuary
work vide para (VI) above will also be transferred to the State
Government. In addition, there are about 6000 closed files in the
Central Record Room of the Settlement Wing pertaining to the
properties already disposed of. Necessary arrangements for
transferring this record would be made by this Department. The
expenditure on their transportation from New Delhi to Hyderabad
would be met by this Department.
VIII.
TRANSFER OF WORK UNDER THE EVACUEE
INTEREST (SEPARATION) ACT, 1951
The work relating to administration, management and disposal of
composite properties in terms of the Evacuee Interest (Separation)
Act, 1951 shall stand transferred to the State Government with
effect from 1.6.1980.
(a) The State Government shall appoint a Competent Officer
under Section 4 and an Appellate Officer under Section 13 of the
said Act, to deal with the composite properties in respect of which
proceedings under any provisions of the said Act have already
been started or may be started hereafter.
(b) After the evacuee interest is separated, the State Government
shall deal with and dispose of the properties in accordance with
the Evacuee Interest (Separation) Act, 1951 and the Displaced
Persons (Compensation & Rehabilitation) Act, 1954.
(c) The State Government shall pay to the Govt. of India the
following share out of the sale proceeds of evacuee share in the
composite properties:
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(i) In the case of urban evacuee properties and urban evacuee
lands. 15% of the amount realised.
(ii) In the case of rural evacuee lands/ properties.5% of the
amount realised.
The remaining share of the sale proceeds in the evacuee interest
shall be retained by the State Government on account of their
administrative and other charges.
The entire expenditure on account of the administration,
management and disposal of the composite properties in Andhra
Pradesh and the establishment of the Competent Officer and
Appellate Officer shall be borne by the State Government.
IX. THE REMAINING UNDISPOSED OF URBAN EVACUEE
PROPERTIES URBAN EVACUEE LANDS AND RURAL
AGRICULTURAL LANDS.
All the lands/properties held and dealt with by the Custodian of
Evacuee Property under the Administration of Evacuee Property
Act, 1950 which have not yet been finally disposed of under the
provisions of the aforesaid Act or the Displaced Persons
(Compensation & Rehabilitation) Act, 1954 shall stand transferred
to the Government of Andhra Pradesh with effect from 1.6.1980.
6. The arrangement detailed above shall not in any way affect
the payment of compensation to the displaced persons having
unsatisfied claims for properties left in former West Pakistan in
accordance with the provisions of the Displaced Persons
(Compensation & Rehabilitation) Act, 1954. Their claims shall,
as usual, be dealt with the Officers of the Government of India.
The liability to satisfy the claims of the displaced persons shall
continue to rest with the Government of India.
7.
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8. The properties mentioned above should be deemed to have
been completely transferred to the Government of Andhra Pradesh
with effect from 1.6.1980. The entire sale price thereof payable
on this account by the State Government in respect of various
categories of properties will accordingly become due on 1.6.1980
and shall be paid in six equal half-yearly installments without
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payment of any interest thereon. The first half-yearly instalment
due on 1.6.1980 shall be paid by the State Government on 31.3.1981
and subsequent half-yearly instalments will be computed from
that date.