# STATE OF GUJARAT v. Wanchoo I

- **Citation:** [1964] 6 S.C.R. 461
- **Court:** Supreme Court of India
- **Decided:** 1964
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/state-of-gujarat-v-wanchoo-i-3205
- **Pages:** 133

## Headnote

6 S.C.R.
SUPREME COURT REPORTS
be for the detenu to show that the order bad gone beyond
1964
the needs of the situation and was therefore contrary to s. 44. a. s. Paruldar
No such thing bas been shown in the present cases and we s
1v.M_L
. fi d h
b
d . .
.
b
.d
tale 0
anaraare satis e t at t e or ers m queshon cannot e sa1 to go
•htra
beyond the needs of the situation, even assuming that s. 44
is mandatory as urged on behalf of the appellants and no:
merely directory as urged on behalf of the State.
The appeals therefore fail and are hereby dismissed.
Appeals dismissed
STATE OF GUJARAT
v.
Wanchoo I.
VORA FIDDALI BADRUDDIN MITHIBARWALA
1964
(B. P. SINHA, C. J., K. SuBBA RAO,
M. HIDAYATULLAII,
January SO,
J. C. SHAH,
RAGHUBAR
DAYAL,
N.
RAJAGOPALA
AYYANGAR AND J. R. MUDHOLKAR JJ.)
Act of State-Ruler of a 11ative 1tate granted certain right1 in /ore:ll to
gra1ttecs-State merged with Domini'on of India-Dominion of India
did not recognise the grant-Effect of non-recognition before Co11sti·
tution and after Constitution-If
non-recognitio:t
of the
grant
anJounts to an act of State-Government of India Act 1935-Constitution of India, Art. 32.
The Ruler of the State of Sant bad issued a Tharao dated 12th March
1948, granting full right and authority to the jagirdars over the forests
in their respective villages. Pursuant to the agreement dated March 19,
1948, the State of Sant merged with the Dominion of India. On October
1, 1948, Shree V. P. Menon, Secretary to the Government of India, wrote
a letter to the Maharana of Sant State expressly declaring that no order
passed or action taken by the Maharana before the day of April !st
1948, would be questioned.
After merger there was obstruction by the
forest officers when the respondents were cutting the forests, but after
some correspondence they were permitted to cut the trees on furnishing
an undertaking that they would abide by the decision of the government.
The Government of Bombay, after considering the implications of the
Tharao, decided that the order was ma/a nde and cancelled it on 8th July
1949
In the meantime these respondents were stopped ;rom working
the forests by the Government of Bombay.
1964
Stat• of G11iarat
Y,
Yor11 Fldda/i
SUPREME COURT REPORTS
Thereupon these respondents filed suits for declaration of rights in
the forests and for a permanent injunction against interff.rence with those
rights by the State. The respondents claimed in these suits that the rights
of the grantees to the forests were not liable to be cancelled by the Dominion of India after the merger of the State of Sant in June, 1948, by
executive action, and that the Government of Bombay was not competent to obstruct them in the exercise of those rights. Their claims were
opposed by the State of Bombay mainly on the ground that in the absence
of recognition, express or implied, by the successor State of the rights
conferred by the former ruler on the jagirdars the respondents could not
enforce them in the Municipal Courts. These respondents qied five suits
against the State of Gujarat. All suits except one were dismissed by the
Trial Court. The District Judge on appeal ordered the dismissal of that
suit also and dismissed the appeals of the plaintiffs in the other suits.
The plaintiffs then appealed to the High Court and the
High Court
allowed all appeals and the suits were decreed.' The High Court held on
the basis of the letter written by Shri Y. P. Menon, Secretary that the
succeeding sovereign had waived or relinquished its right to repudiate the
Tharao.
The High Court further held that the Tharao was not a legislative action of the Ruler of Sant State. The State Government appealed
to this Court by special leave.
Hence the appeal.
Per majority:
Hidayatullah J. (i) The Act of State come .. 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 an action of subordinate
officers who hav~ no authority to bind the new soverei

## Text

_Characters 0–39,862 of 295,563. This is a partial read: ask again with offset=39862 for what follows._

6 S.C.R.
SUPREME COURT REPORTS
be for the detenu to show that the order bad gone beyond
1964
the needs of the situation and was therefore contrary to s. 44. a. s. Paruldar
No such thing bas been shown in the present cases and we s
1v.M_L
. fi d h
b
d . .
.
b
.d
tale 0
anaraare satis e t at t e or ers m queshon cannot e sa1 to go
•htra
beyond the needs of the situation, even assuming that s. 44
is mandatory as urged on behalf of the appellants and no:
merely directory as urged on behalf of the State.
The appeals therefore fail and are hereby dismissed.
Appeals dismissed
STATE OF GUJARAT
v.
Wanchoo I.
VORA FIDDALI BADRUDDIN MITHIBARWALA
1964
(B. P. SINHA, C. J., K. SuBBA RAO,
M. HIDAYATULLAII,
January SO,
J. C. SHAH,
RAGHUBAR
DAYAL,
N.
RAJAGOPALA
AYYANGAR AND J. R. MUDHOLKAR JJ.)
Act of State-Ruler of a 11ative 1tate granted certain right1 in /ore:ll to
gra1ttecs-State merged with Domini'on of India-Dominion of India
did not recognise the grant-Effect of non-recognition before Co11sti·
tution and after Constitution-If
non-recognitio:t
of the
grant
anJounts to an act of State-Government of India Act 1935-Constitution of India, Art. 32.
The Ruler of the State of Sant bad issued a Tharao dated 12th March
1948, granting full right and authority to the jagirdars over the forests
in their respective villages. Pursuant to the agreement dated March 19,
1948, the State of Sant merged with the Dominion of India. On October
1, 1948, Shree V. P. Menon, Secretary to the Government of India, wrote
a letter to the Maharana of Sant State expressly declaring that no order
passed or action taken by the Maharana before the day of April !st
1948, would be questioned.
After merger there was obstruction by the
forest officers when the respondents were cutting the forests, but after
some correspondence they were permitted to cut the trees on furnishing
an undertaking that they would abide by the decision of the government.
The Government of Bombay, after considering the implications of the
Tharao, decided that the order was ma/a nde and cancelled it on 8th July
1949
In the meantime these respondents were stopped ;rom working
the forests by the Government of Bombay.
1964
Stat• of G11iarat
Y,
Yor11 Fldda/i
SUPREME COURT REPORTS
Thereupon these respondents filed suits for declaration of rights in
the forests and for a permanent injunction against interff.rence with those
rights by the State. The respondents claimed in these suits that the rights
of the grantees to the forests were not liable to be cancelled by the Dominion of India after the merger of the State of Sant in June, 1948, by
executive action, and that the Government of Bombay was not competent to obstruct them in the exercise of those rights. Their claims were
opposed by the State of Bombay mainly on the ground that in the absence
of recognition, express or implied, by the successor State of the rights
conferred by the former ruler on the jagirdars the respondents could not
enforce them in the Municipal Courts. These respondents qied five suits
against the State of Gujarat. All suits except one were dismissed by the
Trial Court. The District Judge on appeal ordered the dismissal of that
suit also and dismissed the appeals of the plaintiffs in the other suits.
The plaintiffs then appealed to the High Court and the
High Court
allowed all appeals and the suits were decreed.' The High Court held on
the basis of the letter written by Shri Y. P. Menon, Secretary that the
succeeding sovereign had waived or relinquished its right to repudiate the
Tharao.
The High Court further held that the Tharao was not a legislative action of the Ruler of Sant State. The State Government appealed
to this Court by special leave.
Hence the appeal.
Per majority:
Hidayatullah J. (i) The Act of State come .. 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 an action of subordinate
officers who hav~ no authority to bind the new sovereign.
Till recognition, either express or implied, is granted by the new sovereign, the
Act of the State continues. In the present case, the Act of State could
only come to an end if Government recognised the rights flowing from
Tharao.
That Government never did.
There was thas no recognition
of the Tharao or the rights flowing from it at any time.-
In the present
case, the subordinate officers of the Forest Department allowed each
respondent to cut the trees on furnishing an undertaking that he would
abide by the decision of the Government and 50 the question of waiver
or relinquishment does not arise.
Secretary of State in Council for India v. Kamachee Boye Sahaba,
(1859) 13 Moore P. C. 22, Secretary of State v. Sardar Rustom Khan and
Others, (68) I. A. 109, M/S. Dalmia Dadri Cement Co. Ltd. v. Com·
missioner of lncome·tax, [1959} S.C.R. 729, The State of Saurashtra v.
Memon Haji lsmale Haji, [1960] 1 S.C.R. 537, Jagan Nath Agarwala v.
State of Orissa, [19621 1 S.C.R. 205, State of Saurashtra v. Jamadar
Mohamed Abdulla and Ors., [1961} 3 S.C.R. 970 and Vaje Singhji Jorwar
Singh v. Secretary of State for India, (1924) L.R. 51 I.A. 357, relied on.
Virendra Singh and Ors, v. The State of Uttar Pradesh [1955] I S.C.R.
415, disapproved.
Bhola Nath v. State of Saurashtra, A.l.R. 1954 S.C. 680, Bhojrajji Y.
The State of Saurashtra, 61 Born. LR. 20, referred to.
6 S.C.R.
SUPREME COURT REPORTS
(ill The Act of State did not come to an end by virtue o! Article
299(1) of Government of India Act, 1935 and so the respondents could
not claim the protection of that section. Section 299(1) did not come
into play because it could only come into play after the rights were
recognised.
In the present case the rights were never recognised by
the Government.
(iii} The original Act of State continued even after January 26, 1950,
because there was no state succession on January 26, 1950 in so far as
the people of Sant State were concerned. For them state succession was
over some time in 1948. The Act of State which began in 1948 could
continue uninterrupted even beyond 1950 and it did not lapse or get
replaced by another Act of State. These rights in question cannot be
protected under the Constitution because these rights were not recognised
even before 1950.
(iv) That the impugned Tharao was not a law as it did not lay down
any rule of conducl. It was a grant made to the Jagirdars mentioned
in the Tharao.. The fact that Maharana's Tharao was passed to benefit
a larger number of persons en bloc does not make it any the nlore a law
if it did not possess any of the indicia of a law. The Tharao did give
rights to the grantees but did not lay down any rule of conduct. It is
a grant and as a grant it was open to the new sovereign not to .rccognis..
it
Madhorao Pha/ke v. The State of Madhya Bharat, [1961] 1 S.C.R.
957, distinguished.
Ameer-unnissa Begum and Ors. v. Mahboob Begum and Ors. A.l.R.
1955 S.C. 352. distinguished.
Maharaja Shri Umaid Mills Ltd. v. Union of India and Others. A.I.R.
1963 S.C. 953 and The Bengal Nagpur Catton Mill Ltd. v. Tlie Board
of Revenue, Madhya Pradesh and Others, A.I.R. 1964 S.C. 888 relied on.
(v) The right claimed here is not even a concessionary right such as
has received the support of the International writers.
It is more of the
nature of a gift by the Ruler at the expense of the Slate. It lacks bona
{ides which is one o[ the things to look for. There is no treaty involved
and v.•hatever guarantee there is, Art. 363 of the Constitution precludes
the Municipal Courts from considering. This distinguishes the jurisdiction
and power of the Supreme Court of the United States in which considera·
tion Of treaties is included. In the United States the Constitution declares
a treaty to be the law of the land.
In India the position is different.
Article 253 enables legislation
to be made to implement international
treaties. This Court has accepted the principles laid down by the Courts
in England in regard to the limits of the jurisdiction of Municipal Courts.
The view of the Supreme Court of United States or the view taken in
inttrnauonal Jaw has not been accepted by this Court.
Politically and
1964
Stat• at Gll/tlrtll
,..
Vora Flddall
1964
6- of Gu/arat
v.
VOlll Fidda/i
SUPREME COURT REPORTS
[1g64]
ethicaily there might have been some reason to accept and respect such
concessions but neither is a reason for the Municipal Courts to intervene.
The Rule that the Act of the State can be questioned in a Municipal
Court has never been adopted and it has been considered that it is a
matter for the political departments of the State. However desirable it
may be that solemn gTJarantees should be respected, this Court should
not impose its will upon the State, because this is outside its jurisdiction.
Jn this case, the present respondents who were not parties to the
merger agreement or to the letter written by Mr. Menon which was m:tde
expressly a part of the Agreement cannot take advantage of cl. 7. U they
were parties, Article 363 would bar such plea.
Maharai Umeg Singh and Others v. The State of Bombay and Other•·
ll955) 2 S.C.R. 164, relied on.
·
U.S. v. Fercheman, 32 U.S. 51 at 86, disapproved:
Shapleigh v. Miar, 299 U.S. 468, referred to .
. Salaman v. Secretary of State for India, [1906) I K. B. 613, referred
to.
Cook v. Sprigg. [1899) A.C. 572, referred. to.
Foster v. Nielson. (1829) 2 Pet. 253. referred to.
Birma v. The State, A.I.R. 1951 Rajasthan I to 7, referred to.
Amodutiiani v.
Secretary Southern
Nigeria, Ll921J
2 A.C.
399,
referred to.
Clark v. Allen, 331 U.S. 503. referred to.
West Rand Ceiural Gold Minning Co. v. Regem, [1905] 2 K.B. 391,
referred to.
Secretary of State v. Bal Raj Bai, ( 19 5) L.R. 42 IA. 229, relied on.
Per Shah J. (I) The rule that cession of territory by one State to
another is
an act of State and the sub,jects of the former State may
enforce only those rights in Municipal Courts which the new sovereign
recognises has been accepted by this Court.
Mis. Dalmia Dadri Cement Co., Ltd. v. Commissioner of Income·
Tax, [1959) S.C.R. 729, Jagannath Agarwala v. State of Orissa, [1962)
I S.C.R. 205, Promod Chandra Dev v. State of Oris3a, [1962) Suppl. I
S.C.R. 405 and the State of Saurashtra v. lamadar Mohd.
Abdullah,
11962) 3 S.C.R. 970, relied on.
The Secretary of State in Council of India v. Kamachtt Boye Sahaba,
7 Moore's I.A. 476, Vajesinghji Joravarsinghji v. Secretary of State for
India in Council, L.R. 51 I.A. 357 and Secretary of State v. Sardar
Runam Khan and Others, L.R. 68 I.A. 109, relied on.
6 S.C.R.
SUPREME COURT REPORTS
(ii) The Constitutional provisions in the United States arc son1ewhat
4ilf=nL
Under the Constitution of the United States each treaty becomes a part of the law of the land; the provisions thereof are justiciable
.m the covenants enforceable by the Courts. In India the treaties have
aot the force of law and do not give rise to rights or obligations enfor·
c:eable by the Municipal Courll.
In the present case by virtue of Art. 363 of the Constitution, it ;,,
eat open to the respondents to enforce the covenants of the agreement
es llaled in the letter of guarantee written by Mr. V. P. Menon in the
Municipal Courts.
United Stat<1 v. Parch<man, (1833] 32 U.S. 51 at 86, 87, DOI relied
....
Cook v. Sprigg. (1899] A.C. ,72, referred to.
'
Maharaj Um<g Singh and Oth<r1 Y. Th< Stal• of Bombfl1 8nd Oth<r1,
{tl>SS) 2 S.C.R. 164, relied on.
(iii) An act of State may be opread over a period and does not ari,.
eerety on the point of acquisition of sovereign right.
Nor ii tbc new
aovercign required to announce his decision when he assumes or accepts
aovereignty over foreign territory, about the rights created by the quond::tm
IO~ign, on pain of being held bound by the right '° created. Therefore till the right to property of the subjeets of the former Indian State
._ recognized by the new sovereign there· was no title capable of beinJ
enfon:cd in the courts of the Dominion or the Union.
(iv) The functions of a State whether it contains a democratic set
Gp or is administered by an autocratic sovereign fan into
three broad
categories-executive, legislative and judicial.
The line of demarcation
of these functions in an absolute or autocratic form of government may
be thin and may in certain cases not easily discernible.
But on that
accuunt it is not possible to infer that every act of an autocratic sovereign
has a legislative content or that every direction made by him must be
regarded as law.
The legislative power is the power to n:iake, alter, amend or repeal
Ian and within certain definite limits to delegate that power. Therefore
It is power to lay down a binding rule of conduct.
Executive power is
Che power to execute and enforce the laws, and judicial power is the
power to' ascertain, construe and determine the rights and obligations
of the parties before a tribunal.
In the present case the order dated
Man:h 12, 1948, is expressly in the form of a grant of the rights which
were· not previously granted and does not either expressly or by implication seek to lay down any binding rule of conduct. The impugned order
-
not a law or an order made under any law within the meaning of
d. 4 ot. the Administration of the Indian States Order of 1948.
Promod Chandra Dtb and Oth<r1 v. Th< Stat< of Ori»a Olld Oth<r1,
(1962] Suppl I S.C.R. 405, Am<.,..un-Niua Begum and Olhtr1 Y.
Malrboob Btgwn and Othtrl, A.I.R. (1955) S.C. 352, Director of Endow-
•34-159 S.C.-3G.
Stal• of G*"'
••
Yor• £"""11
"iffl
·~ ii/ GN/aral
. . '·
.,._ Flddlill
SUPREME COURT REPORTS
[rg64J
menu, Government of Hyderabad v. Akram Ali, A.I.R. (1956) S.C. 60
Tilkayat Shri Govindlalji Maharaj etc. v. State of Rajasthan and Other'>
A.l.R. (1963) S.C. 1638, distinguished, discussed .
Madhorao Phalke v. The State of Madhya Bharat, [1961] I s.c.a:
951 discussed.
Maharaja Shree Umaid Mills Ltd. v, Union of India, A.I.R. 1963S.C. 953, relied on,
TM Bengal Nagpur 'Cotton Mills Ltd. v. The
Board of Revenut',
Madhya Pradesh and Others, C.A. No. 416 of 1961 decided on July 30',
1963, relied on.
(v) To attracts. 299(1) of the Government of India Act, 1935, thert
must, exist a right to property which is sought to be protected,
The
subjects of the acceding State arc entitled only to such rights as the new
soVereign cbOoseS to recognize, in the abSence of the any recl1gnition of
the rights o~ the respondents or their predecessor J agirdars, there waS
110 rigqt tq .property of which protection .could be claimed. On the same
. ~pning, grantees of the Ruler !X>uld not claim protection under Ar\.
31 (1) of the Constitu_tion.
' P1r Mo4holkar J. (i) The rule of international law on which the m·eral
Privy Council decisions as to the effect of conquest or cession on the private
righ"ts of the inhabitants of the conquered or ceded territory arc founded
has become a part of the common law of this country. This being a "liiw
in force" and at the commencement of the Constitution is saved by Art. 372
of the
Constitution. The Courts in India are, therefore, bound to e°"
force that rule and not what according to Marshall C.J. is the rule of
International Law governing the same matter, though the latter has alSQ
received the approval of several text book writers. The rule which h8'
been appljed in this country is not inequitor nor can it be: regarded U
bt> an anachronism.
Virendra Singh v. The State of Uttar Pradesh, [19SS]
S.C.R. 41', ·
United State v. Percheman, (1833) 32 U.S. SI, disapproved.
SecretarY of State for India v. Kamachee Boye Sal1iba, (ISS9)
13
Moore P. C. 22, Asrar Ahmed v. Durgah Committee, )ljmer. A.J.R. 1947
P.C. l, Dalmia Dadri Cement Co. Ltd. v. The Commissioner of lncomttax, (19591 S.C.R. 729, State of Saurashtra v . • \.fenion
lluji Ismail.
[1960] I S.C.R. 537, State of Saurashtra v. Jamadar Mohamed Abdullah
and Ors., [19621 3 S.C.R. 970, Vajesinghji v. Secretary of St<llt? for Indio,
'1 I.A. 357 and Secreta,y of State for India v. Bai Rajbai, 42 I.A. 229,
Promod Chandra Dev v. State of Orissa and Ors. (1962] Supp. 1 S.C.R.
405, relied on.
(ii) Two concepts underlie our law.
One is that the inhabitants of
acquired ·territories bring with them no rights enforceable against the
new sovereign. The other is that the Municipal Courts have no jurisdicjion to enforce ~ny rights claimed by them, against the sovereign despi(f
tho provisiODl! of a treaty unless their rights liave been recognised by the
6 S.C.R
SUPREME COURT REPORTS
467
acw sovereip after cession or conquest. In Olher wi;>rds a right which
cannot on its own strength be enforced against a sovereign in the Courts
of that sovereign must be deemed to have ceased to exist. It followa
therefore that a right which bas ceased to exist does not, require repudiation.
Municipal courts derive their jurisdiction from the Municipal law
and not from the Jaws of nations and a change in the laws of nations
brought about by the consent of the nations of the world cannot confer
upon a Municipal Court a jurisdiction which it does not enjoy under the
Municipal law.
(iii) The grantees of the Ruler could not claim the protection or L
299 of Government of India Act, 193S or of Art. 31 of the Constitution
of India as they possessed no right to property enforceable against the new
eovercign.
(iv) The impugned Tharao was not law.
Madhorao Phalk< v. Th< Stat< of Madhya Pradesh (1961) I S.C.R.
'S1, referred to.
Pu minority Sinha CJ. and Ayyangar J. (i) 'lbe juristic basis of tile
theory underlying the Privy Council decisions is that with the extinction
of the previous sovereign the rights theretofore exerc!seabl.:: by the subjc.:ts
of that sovereign by virtue of grants for that sovereign were likewise extinguished and that without ~gnition which is really tantaftiount to a fresh
grant by the new sovereign. no title enforceable in the municipal courts
of the succeeding sovereign came into being. The doctrine of Act of
State evolved by English courts is one purely. of municipal law. It denies
to such a court jurisdiction to enquire into the consequences of acts
which are inseparable from an extension of its sovereignty. That doctrine
was, however, not intended to deny any rule of International Law.,
The British practice that bas prevailed in this country bas not proved
in actual practice to lead to injustice. but bas proceeded on a just balance
between the acquired rights of the Private individual and the economic
interests of the community, and therefore there is nothing in it so out
of tune with notions of propriety or justice to call for its rejection. Even
in the case of Virendra Singh this Court did not express any decisive
opinion in favour of accepting the observations in Percheman's case as
Proper to be applied by the municipal courts in India. This Court has
in subsequent decisions followed the Privy Council decisions. The view
of the Supreme Court of the United States has net been accepted bY this
Court for the reason that the Constitutional position in regard to the
recognition of treaties in both countries are different.
In the United
States a treaty has the force oflaw, which is not the
position here.
Besides, in India by virtue of Article 363 of the Constitution, Municiral
Courts are deprived of jurisdiction to enforce any righlll arisina from
ciertaiA treaties.
J!IU
Stat• of G•/GNI
"·
Yoiw FIMall
JINU
,.,.ofO.;..t
y,
YON P!Mall
.¢8
SUPREME COURT REPORTS
. Vinrendra Sinalr v. T/w Star. of Uttar Prad•sh, [1955) 1 S.C.R. 415,
diaapprovcd.
Vajesinghji v. S<er<lary of Stal< for India, SI I.A. 357, Cook Y,
Sprigg, (1899] A.C. S12, relied on.
Walker v. Baird, [1892] A.C. 491, Joh/UfoM v.
P<dlar, [1921) 2
A.C. 262. referred to. Unit<d Stat<a ,., P<rcheman, 32 U.S. SI,
disapproved.
M/1, Dalmia Dadri C•m<nt Co. Ltd. "· Th• Commwione of lncoJttlo
llU, [1959) S.C.R. 729, Jagan Nath Agarwa/JJ v. Th< Stat• of Ori-,
[1962) 1 S.C.R. 205, Promodh Chandra Dov v. The State of Orism,
(1962) I Supp. S.C.R. 405, The Stat• of Saurashtra v. Jamadar Mohamad
Abdul/JJ, [1962) 3 S.C.R. 970, Stcretary of State for India v. Kamach••
Boye Sahiba [1859] 7 Moore, I.A. 476, Stcr<tary of State for India IJo
Couocil v. Bai Raj Bai, 42 I.A. 229 and Secretary of State \'. Rulll{loan, 68 I.A. 109. relied on.
modu Tijani v. Secretary South<rn
Nigeria, [1921) 2 A.C. 399,
referred lo.
Wost Rand C<ntral Gold Mining Co.,
v. Rex, [1905) 2 K.B.
391,
nferred lo.
Asrar Ahm•d v. Duraha Committ<e, Aimer, A.l.R. 1947 P.C. I,
relied OD.
Artomey·Gtneral of Canada T. Attorney-G<n<ral of O•tario, [1937)
A.C. 326, referred to.
(ii) Whe1e the new sovereign MBumes jurisdiction and it does tom.e
act and the~ is ambiguity as to whether the 1ame amount.s to a recognition of a pre-existing right or not, the covenant and the treaty n~if!ht be
looked at in order to ascertain the intention and purpose of that equivocal act, but beyond this tlie covena:::i.t and the treaty cannot by them·
selves be used either as a recognition pure and simple or, as waiver of a
right lo repudiate the pre·existing rights. It is needless to point out that
since the enforceability of the rights against the succeeding sovereign
springs into existence only on recognition by the sovereign, there i& no
question of a waiver or the right to repudiate.
Jn the present case the High Court erred in holding on the basis of
cl.
7 of the letter of Shri V. P. Menon that the Government waived
their right 10 repudiate the grant made by the previous ruler.
Bhola Natlr v. Tiie Stat< of Saura1hlra, A.l.R. (1954) S.C. 680. cliadn-
,W.hocl.
6 S.C.R.
SUPREME COURT REPORTS
(iii) Just previous to the Constitution the grantee had no risht of
property enforceable against the State. The coming into force of the Constitution could not, therefore, make any difference, for the Constitution,
did not create rights in property but only protected rights which otherwise existed.
(iv) In tho present case the "Tharao" wu not a grant to any indiridual but to the holders of 5 specified tenures in the State. The 'TharDD'
is more consistent with its being a law effecting an alteration in the tenures
of the 5 cluses of Jagirdars by expanding the range of the beneficial
enjoyment to the forests lying within the boundaries of the villages whicb
had already been granted to them. In this light, the 'Tharoo' would not
be administrative order in 'l!'Y sense but would partake of Iba characr..
of legislation by which an alteration wu effected in the scope and content of tenures, referred to.
Tho "Tharao" dated March 12, 1918 satisfies
Ille requirement of "a law" within Art. 366(10) of the Constitution and in
consequence, the executive orden of the Government ol Bombay by whicll
the forests rights of the plaintiffs were sought to be denied were illegal
and void. The "Tharao'' was in truth and substance a law which wu
.::ontinued by Art.
372 of the Constitution and therefore it could be
ruoked by the appellant by legislative authority and not by IUl oxecuti"'
act.
Madhorao Pha/ke v. The State Madhya Bharat {1961) I S.C.L
957, Anuu-un-niua Begum v. Mahboob Begum, A.l.R. 1955 Supreme
Court, 352 a'ld Director of Endowment1, Goyernment of Hyderabad Y.
Akram A.Ii, A.I.R. 1956 S.C. 60, relied on.
Per Subha Rao J. (i) Tho decision in Virendra Singh., cue is Doi
only oorrec~ but a also in accord with the progressive trend of modern
international law.
It may, therefore, be stated without contradiction that
in none of the decisions of this Court that were given subsequent to Vire,.,.
dra Singh's case the correctness of that decision was doubted. After all.
an act of State is an arbitrary act not based on law, but on the modem
version of 'Might is right'. It is an act outside the law. There were two
different lines of approach. One adopted by the imperialistic nations and
the other by others who wer~ not. That divergence wu reftected in English and American Courts. All the jurists of International law recognise
the continuity of title to immovable property of the entwhile citizens of
the ceding state after the sovereignty changed over to the absorbina
atate. It may, therefore, be held that so far u title to immovable
property u concerned the doctrine of International law bu become
crystallized and thereunder the change of sovereignty does not affect
the title of the erstwhile citizens of the ceding state to their property.
In America the said principle of International Law Iw been accepted
without any qualification.
M/1. Dalmia Dadri Cement Co. Ltd. v. The Commis1ion., of ,,..
com<-taz, [1959) S.C.R. 729, /agannath A.garwala v. The State of Oris""
(1962) I S.C.Jt 205, Promodh Chand,. D,.. "· The Stat1 of Ori.,
J"4
&t•t• of 0,,,,,,., ·
...
Yoro l'id41111
470
SUPREME COURT REPORTS
[rg64]
'JJU
[1962] Supp. l S.C.R. 405, State of Saurashtra v.
Jamadar Mohm..J
'lftou of GRjaral
Abdulla, [1962] 3 S.C.R. 970, discussed and distinguished.
'f.
· Yors Piddali
United States v. Percheman, (1833) 32 U.S. SI, relied on.
Foster v. Neilson, (1829) 2 P.E.T., 2S3, The American Insurance Co.
r•d the Ocean Insurance Co. v. Bales of Cotton (1828) 7 L.Ed. Sil,
t,'/1arles Dehault v. United States, (1835) 9 Ed. 117, Vajeenngli Joravarsingji v, Secretary of State for India in Council, (1951) I.A. 357, referred
to.
(ii) The law in England is that the municipal courts cannot enforce
the acquired rights of the erstwhile citizens of the ceding state against
the absorbing state unless the said state has recognized or acknowledged
their title. This Court accepted the English doctrine of Act of State in a
series of decisiolls.
The word ''recognize" means "to admit, to acknowledge, somethin&
existing before".
By recognition the absorbing state does not create or
confer a new title, but only confirms a ~pre-exisiing one. Non-recognition
: by the absorbing does not divest the title, but Only makes it unenforceable
against the state in municipal courts.
Pramod Chandra Dev. v. The State of Orissa, [1962] Supp. I S.C.R.
403, relied on.
(iii) The doctrine of acquired rights, at any rate in regard to immovable property has become crystallized in International Law. Under the
said law the title of a. citizen of a ceding state is preserved and not lost
by cession.
The change of sovereignty does not affect his title.
The
municipal laws of different countries vary in the matter of its enforceability
against the state. AB the title exists, it must be held that even in those
countries, which .accepted the doctrine of act of State and the ri~ht of a
sovereign to repudiate the title, the title is good against all except the
·state. Before the Constitution came into force the State did not 1epudiate the title. When the Constitution of India came into force the re>o
ponden.t and persons similarly situated who had title to immovable property in the Sant State had a tille to the said property and were in actual
possession thereof.
They had title to the property except
against tho
State and they had, at any rate, possessory title therein.
The Constitu·
tion in Article 31 ( 1) declares that no person shall be deprived of bis
property save by authority of law. That is, the Constitution recognised
the title of the citizens- of erstwhile State of Sant, and issued an injunction against the sovereign created by it not to interfere with that right
except in accordance with law. A recognition by the Supreme Law of
the land must be in a higher position than that of an executive authority
of a conquering State. It was held that the title to immovable property
of the respondent was recognised by the Constitution itself and, therefore, necessarily by the sovereign which .s bound by it
.,
6 S.C.R.
SUPREME COURT REPORTS
471
In the present case the letter written by the Government of India dated
October I, ! 948, clearly recognized the title of the respondents to their
properties. 1be letter clearly contains a statement in paragraphs S and
7
thereof
that
enjoyment
of
J agirs,
grants
etc.,
existing
on
April l, 1948, were guaranteed and that any ·order
passed or action
taken by the Ruler before the said date would not be questioned. 'Ibis
is a clear recognition of the property rights of the respondent and si!Dilar
e>tbers.
Virendra Singh v. The State of Uttar Pradesh, (1955) I S.C.R. 4U,
retied on.
Mis. Dalmia Dadri Cement Co. Ltd. v. The Co1nmissioner of Incom~
tax [1959). S.C.R, 729, Jagan
Nath
Agarwa/a v. The State of Ori$<a
(1962], I S.C.R.
205, Promodh Chandra Dev v. The State of Orissa
11962], Supp. I S.C.R. 405 and State of Saura.<htra v. Jamadar Mohamed
Abdullah (1962). 3 S.C.R, 970, discussed and distinguished.
CIVIL APPELLATE
JURISDICTION: Civil Appeals No~;
182-186 of 1963.
Appeals by special leave from the judgment and order
dated January 1961 of the Gujarat High Court in Second
Appeals Nos. 105, 106, 107, 112 and 193 of 1960.
C. K. Daphtary, Attorney-General, R. Ganapathy Iyer,
R. K. P. Shankardass and R. H. Dhebar, for the appellant (in
all the appeals).
Purshottam Trikamdas, B. Parthasarathy, J, B. Dadachat1ji, 0. C. Mathur and Ravinder Narain, for the respondents (irt all the appcais).
January 30,
1964.
Hidayatullah J., Shah J., and
Mudholkar 1. delivered separate Judgments allowing
the
appeal. Raghubar Dayal J. agreed with the order proposed by Hidayatullah J.
The dissenting opiniorr of Sinha
C. J, and Rajagopala Ayyangar J, w.as delivered by Ayyangar
J. Subba Rao J. delivered a separate dissenting opinion.
lflU
Slat• of G,,,_,
'" '
Vmw Pl4QU
A yy AN GAR J .-In this batch of five analogous appeals,
""..,., 1•
by special leave, the main question for determination is
whether the rights which were in controversy between the
JIU
ai.t, of Gujarat
"·
Yor.r Fiddall
,,,,,,.,,.,°' J.
472
SUPREME COURT REPORTS
[i¢4.]
parties in the courts below could be enforced by the Munici·
pal courts; or in other words, whether or not "Act of State,.
pleaded by the State of Gujarat is an effective answer to the
claims made by the respective respondents to the rights over
forests claimed by them in the suits giving rise to these
appeals.
Vora Fiddali Badruddin Mithibarwala is the respondent
in Civil Appeals Nos. 182 and 184 of 1963. Vora Halci·
muddin Tayabali Amthaniwala is the respondent in Civil
Appeal No. 183 of 1963. Mehta Kantilal Chandulal is the
respondent in Civil Appeal No. 185 of 1963, and Pathan
Abbaskhan Ahmedkhan is the respondent in Civil Appeal
No. 186 of 1963. In all these Appeals the State of Gujarat
is the appellant.
The course these litigations have taken in the courtl
below may briefly be stated as follows:
The respondent in
Civil Appeal No. 182 of 1963, is the assignee of the rightl
of one Vora Hatimbhai Badruddin and was brought on re•
cord as plaintiff during the pendency of the suit in the trial
court, namely, the court of the Civil Judge (Senior Division)
at Godhra, being Civil Suit No. 115 of 1950, for an injunc·
tion and ancillary reliefs to restrain the appellant and its
officers from interfering with the plaintiff's alleged rights to
cut and carry away timber etc., from the Gotimada jungle,
J:~ing his rights under a contract dated August 21, 1948,
for a period of three years on payment of a consideration of
Rs. 9,501 to the Jagirdar of the village, Thakore Sardar
Singh Gajesingh.
Civil Suit No. 134 of 1950, giving rise
to Civil Appeal No. 184 of 1963, was also instituted by the
same plaintiff who claimed by virtue of an assignment of the
rights under a similar contract in respect of another forest
in village N anirath for a period of four years, the considera·
lion being the cash payment of Rs. 9,501. Civil Suit No.
106 of 1951, giving rise to Civil Appeal No. 183 of 1963,
was instituted by Vora Hakimuddin Tayyabali Amthaniwal·
la. His claim was based on an agreement with the Jagirdar,
dated December 7, 1948, for a period of four years for a
consideration of Rs. 6,501 in respect of the forest in village
Rathda. All these three suits, in which the reliefs claimed
6 S.C.R.
SUPREME COURT REPORTS
473
were &imilar, were tried together and disposed of by a com· Stal• of GuJ.,.,,,
mon judgment, delivered by the trial court on I anuary 3,
1964
1956. All the suits were dismissed. The Court took the
Y.
view that. the rights of the plaintiffs, such as they were, could
Yora Fiddall
not be enforced by the courts.
Civil Appeal No. 185 of
"'"""'"' J.
1963 arises out of Suit No. 80 of 1953, filed
by Mehta
Kantilal Chandulal. He owned the Inami villages Laleka·
pur and Narsingpur and alleged that he had given a contract
for cutting the trees in his villages for a consideration of
Rs. 11,000 on May 29, 1948, for a period of four years,
and that his transferee had been prevented by the State from
exercising those rights. He also prayed for a similar injunction, as in the other suits. This suit was also dismissed by
the trial court by its judgment, dated March 23, 1956. The
last of the suits is Suit No. 90 of 1955, giving rise to Civil
Appeal 186 of 1963. The plaintiff had claimed to have
obtained similar right of felling trees in the forest belonging
to the Jagirdar of Mayalapad on August 16, 1948 for
Rs. 1,191 for a period of three years. This suit was decreed
by a judgment dated August 6, 1956.
The unsuccessful
plaintiffs filed four appeals to the District Judge,
Pancb
Mahals, at Godra, being appeals Nos. 17, 18, 19 and 48 of
1956. All the appeals were heard together and, by a common judgment, were dismissed on February 28, 1957, the
judgment of the trial court being confirmed.
The 5th
appeal, being appeal No. 74 of 1956, was filed by the State.
The appeal was allowed by a separate judgment, dated
September 30, 1957, dismissing the suit.
The plaintiffsrespondents filed five second appeals, being Second Appeals
Nos.
105, 106, 107, 112 and 193 of 1960 in the High
Court of Gujarat. The appeals were heard together and
were allowed on January 24, 1961 with the result that the
suits were decreed and the appellant was restrained by an
injunction from interfering with the plaintiffs' enjoyment of
the rights in the forests, as claimed by them. As the State
failed to obtain the necessary certificate of fitness from the
High Court, it moved this Court and obtained special leave
to appeal. And that is how these appeals have come up to
this Court. These appeals were first heard by a Bench of
five Judges, and it was directed that the matter he placed for
hearing by a larger Bench, as the Bench was of the opinion
that the decision of this Court in Virendra Singh v. Th~
1964
'lllzte of Gujarat
"·
Vora Fiddali
474
SUPREME COURT REPORTS
State of Uttar Pradesh(') required reconsideration.
how these appeals have been placed
before this
Bench.
That is
special
.A11angar J.
Before dealing with the questions that arise for deter·
mination in these appeals, it is necessary and convenient at
this stage to set out the course of events leading up to the
institution of the suits aforesaid, giving rise to these appeals.
The several villages, the forest rights in which are in dispute in these cases, formed part of the State of Sant. The
steps in the transition of this State under its ruler who was
designated the Maharana into an integral part of the territory of the Union of India conformed to the usual pattern.
With the lapse of the paramountcy of the British Government on the enactment of the Indian Independence Act, the
ruler achieved complete sovereignty. Soon thereafter by an
instrument of accession executed by the ruler, the State
acceded to the Dominion of India so as to vest in the latter
power in relation to 3 subjects-Defence, External Affairs
·and Communications. On March 19, 1948 the ruler enter·
ed into a merger agreement with the Governor-General of
India by which "with a view to integrate the territory with
the Province of Bombay at as early a date as possible", the
full and exclusiYe authority and powers in relation to the
administration of the State were ceded to the Dominion
Government. The agreement was to take effect from June
10, 1948. It is necessary to set out two of the Articles of
this Agreement. Article 1 ran thus:
"I. The Maharana of Sant hereby
cedes
to the
Dominion Government full exclusive authority,
jurisdiction and powers for and in relation to
the governance of the State and agrees to transfer the administration of the State to the Dominion Government on
.the 10th day of June,
1948 (hereinafter referred to as
"the said
day").
And from the said day the Dominion Government
will be competent to exercise the said powers,
(1) {19551 1 s.c.R. 415.
<> S.C.R.
SUPREME COURT REPORTS
475
authority and jurisdiction in such manner and
through such agency as it may think fit."
Under Article 3 of the agreement, the ruler agreed to
furnish to the Dominion Government before October 1,
1948 a list of all his private properties over which he was,
under the terms of the agreement, to retain full ownership
and enjoyment.
After this agreement came in force on June 10, 1948,
the Central Government delegated its
functions to the
Bombay Government by virtue of the powers vested in it by
the Extra-Provincial Jurisdiction Act. 1947. Subsequently,
Shri V. P. Menon. Secretary in the Ministry of State, wrote
a letter to the Maharana'of Sant on October !, 1948 (Ex.
194). This letter was entitled a "Letter of Guarantee" and
was to be treated as supplementary to the Agreement of
Merger dated Mnrch 19, 1948. Amongst other matters. it
provided by cl. 7:
"No order passed or action taken by you before the
date of making over the administration to the
Dominion Government will be questioned unless the order was passed or action taken after
the 1st day of April, 1948, and it is considered
by the Government of India to be palpably unjust or unreasonable. The decision of the Government of India in their respect will be final."
In view of the forthcoming integration of the territory
of Indian States into the Dominion of India, the Government
of India Act, 1935, was amended ands. 290-A was inserted.
In exercise of the powers conferred by that
section, the
Governor-General of India promulgated the States Merger
(Governor Provinces) Order, 1949, on July 27, 1949
which came into force on August 1, 1949. As a result of
that order the in'egration of Indian States, indudin3 the
Sant State with that of the province of Bombay, was completed with effect from that date, namely August 1, 1949.
In the meantime, the ruler of the Sant State passed or
issued "a resolution" or Tharao on March 12, 1948, which
has given rise to the present series of litigations. Under this
*instrument" marked as Ex. 192, to use a neutral expres19"
Stat• of Gll/ar•
••
Vo"' Fiddali
A.11anior /.
J,76
SUPREME COURT REPORTS
[1964]
lftU
sion in view of the controversy as to its nature,
called
I- 01 Gaiut11 Tharao, an order was passed by the Maharana of Sant State
Y,
h
Yoro Plddali
w ose terms will be referred to later and discussed in greater
"'"""'"' I.
detail, granting forest rights to holders of certain specified
tenures.
The holders of such tenures in the
mt State
entered into a number of agreements with thi,
parties,
parting with their rights in the forest timber, e1c., for a
specified period, in consideration of cash payments made
by those third parties to the holders of the tenures. It is
not necessary to set out in detail all those agreements; it is
enough to mention, by way of a sample the agreement dated
August 21, 1948
(Ex. 175) whereby the tenure-holder
granted as briefly adverted to earlier to Vohra Hatimbhai
Badruddin Mithiborwala the right to cut and remove timber
and firewood from the. forest of Mouja Gothimada for a
consideration of Rs. 9,501 for a period of three years.
The
written agreement contains quite a number of clauses which
it is not necessary to set out for the purposes of this case.
After the aforesaid grants, correspondence started between
the grantors and the grantees on the one hand, and the State
Forest Department on the other. When the Di5trict Forest
Officer was informed about the transactions aforesaid.