Ejusdem Generis Limits "Other Financial Obligations" Under the Independence Order; lease rent remained an ordinary contractual liability.

The expression "other financial obligations" in article 9 of the Indian Independence (Rights, Property and Liabilities) Order, 1947, was read ejusdem generis with "loans" and "guarantees" and confined to obligations of a similar State-finance character. A lease covenant to pay rent was treated as an ordinary contractual liability, not a financial obligation within article 9. Article 8(2) therefore continued to govern the lease, leaving liability for rent outside the displaced successor-State regime.

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Issues: Whether the liability to pay rent under a pre-partition lease fell within the expression "other financial obligations" in article 9 of the Indian Independence (Rights, Property and Liabilities) Order, 1947, so as to displace the operation of article 8(2) and fasten liability on the successor State.

Analysis: The expression "other financial obligations" was construed in its setting alongside "loans" and "guarantees" and not as a wide expression covering every monetary obligation arising under a contract. Applying ejusdem generis, the phrase was held to denote obligations analogous to State borrowing or State finance arrangements. A lease covenant to pay rent was treated as an ordinary contractual liability and not as a liability of the kind contemplated by article 9. Article 8(2) therefore continued to govern the contract.

Conclusion: The liability to pay rent under the lease did not fall within "other financial obligations" under article 9, and the appellant remained liable under article 8(2) in favour of the respondent.

Ratio Decidendi: The words "other financial obligations" in the Order must be read ejusdem generis with "loans" and "guarantees" and are confined to obligations of a similar State-finance character, not ordinary contractual liabilities such as rent payable under a lease.

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