Invalid press-notes cannot sustain auction rights; extension of time without notice or statutory power is unlawful.

An auction of evacuee urban agricultural land held on the basis of press-notes and a memorandum issued before the relevant rules were framed conferred no legal rights, because such materials had no force of law. The later order extending time for deposit of the balance price was also invalid, as interested and aggrieved persons were entitled to notice before any prejudicial order was made, and the statutory authority had no inherent, review, or procedural power to enlarge time in the absence of express conferment. The earlier sale was therefore quashed and the matter left to proceed in accordance with law.

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Issues: (i) whether the auction sale held on the basis of the press-notes and memorandum, before framing of the relevant rules, was of legal effect; (ii) whether the Central Government's order granting further time for deposit of the balance price was vitiated for want of notice to interested parties and for want of jurisdiction to extend time.

Issue (i): Whether the auction sale held on the basis of the press-notes and memorandum, before framing of the relevant rules, was of legal effect.

Analysis: The auction of evacuee urban agricultural land was conducted under press-notes issued by the Central Government before the relevant rules governing such disposal had been framed. A prior binding view had held that press-notes and the memorandum had no force of law and that no action could be taken on that basis. On that footing, an auction held under those materials could not confer any rights on the auction purchaser.

Conclusion: The auction sale was of no legal effect and conferred no rights on the auction purchaser.

Issue (ii): Whether the Central Government's order granting further time for deposit of the balance price was vitiated for want of notice to interested parties and for want of jurisdiction to extend time.

Analysis: The appellants were found to be interested and aggrieved persons because they were in occupation, had bid at the later auction, and stood to be directly affected if the earlier sale were confirmed. They were, therefore, entitled to notice before an order prejudicial to their interest was made. On the jurisdictional question, the officer acting under Section 33 of the Act had no power of review, and the powers under Sections 148 and 151 of the Code of Civil Procedure were not available to extend time in such proceedings. The statutory scheme did not confer inherent or review jurisdiction on the authority to enlarge time after the peremptory order had been made.

Conclusion: The impugned order was vitiated both for breach of natural justice and for lack of jurisdiction to extend time.

Final Conclusion: The challenge succeeded, the earlier order was set aside, and the auction sale in favour of the respondent was quashed, leaving the authorities to proceed in accordance with law in relation to the appellants' later auction.

Ratio Decidendi: An auction of evacuee urban agricultural land held on the basis of invalid press-notes before the relevant rules are framed confers no legal rights, and an authority under the Displaced Persons (Compensation and Rehabilitation) Act, 1954 cannot enlarge time or review its order unless such power is expressly conferred by statute.

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