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Issues: (i) Whether section 3 of the Punjab Village Common Lands (Regulation) Act, 1953 was repugnant to section 8(2) of the Administration of Evacuee Property Act, 1950 in respect of evacuee interest in Shamlat-deh lands; (ii) Whether the Punjab Act could nevertheless prevail in the State of Punjab by reason of presidential assent and because, in pith and substance, it was a law on land and agrarian reform within the State List.
Issue (i): Whether section 3 of the Punjab Village Common Lands (Regulation) Act, 1953 was repugnant to section 8(2) of the Administration of Evacuee Property Act, 1950 in respect of evacuee interest in Shamlat-deh lands.
Analysis: The Central Act vested evacuee property in the Custodian, including the evacuee interest in Shamlat-deh lands. The Punjab Act, by providing that all rights, title and interest in Shamlat-deh lands vest in the Panchayat notwithstanding any other law, divested that interest from the Custodian and placed it in the Panchayat. The two provisions operated on the same subject and were in direct conflict to the extent of vesting and control over the evacuee interest.
Conclusion: Yes. The two provisions were repugnant to that extent, and the Parliamentary law would ordinarily prevail.
Issue (ii): Whether the Punjab Act could nevertheless prevail in the State of Punjab by reason of presidential assent and because, in pith and substance, it was a law on land and agrarian reform within the State List.
Analysis: The presidential assent obtained for the Punjab Act was for a specific purpose under Article 31-A and could not be treated as assent under Article 254(2) for curing repugnancy with the earlier Central Act. However, the true character of the Punjab Act was a law relating to land and agrarian reform within Entry 18 of List II. The Act dealt with Shamlat-deh lands as village common land and did not purport to regulate evacuee property. In pith and substance, the State law was within the exclusive competence of the State Legislature and could validly operate on the subject.
Conclusion: Yes. The Punjab Act was valid and prevailed in the State of Punjab notwithstanding the Central Act.
Final Conclusion: The appeal succeeded, the High Court's judgment was set aside, and the Punjab Village Common Lands (Regulation) Act, 1953 was held to govern Shamlat-deh lands in Punjab.
Ratio Decidendi: A State law on land and agrarian reform may validly operate on Shamlat-deh lands within the State List even where evacuee interests in those lands had earlier vested in the Custodian under a Central evacuee-property law; presidential assent given for a different constitutional purpose does not automatically cure repugnancy under Article 254(2).