Enemy property loses its statutory character on succession to an Indian citizen, ending the Custodian's right to retain possession.

Under the Enemy Property Act, 1968, vesting in the Custodian is limited to possession, management and control and does not transfer title. Where the enemy subject died and the property devolved by succession on an Indian citizen, the property ceased to fall within the statutory definition of enemy property because the Act excludes an Indian citizen from that category. Section 13 does not preserve enemy character after such succession, and Section 18 does not prevent judicial relief once the property has lost that character. The Custodian therefore had no right to retain possession after succession to the citizen-heir.

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Issues: Whether property vested in the Custodian under the Enemy Property Act, 1968 remained enemy property after the enemy subject died and the property devolved by succession on an Indian citizen, and whether the Custodian could continue to retain possession in the absence of a formal order of divestment by the Central Government.

Analysis: On a conjoint reading of Sections 2(b), 2(c), 6, 8, 13 and 18 of the Enemy Property Act, 1968, the vesting in the Custodian was held to be limited to possession, management and control and not to transfer of title. The Act treats enemy property as property belonging to or held on behalf of an enemy or enemy subject, and expressly excludes a citizen of India from that category. Once the enemy subject died and the property devolved on the respondent, who was an Indian citizen and the sole heir, the property no longer answered the statutory description of enemy property. Section 13 did not preserve the enemy-character of the property after succession by a citizen of India, and Section 18 did not bar judicial relief where the property had ceased to retain the character of enemy property.

Conclusion: The property ceased to be enemy property on succession to the respondent, and the Custodian had no right to retain it. The appeal fails.

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