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Issues: Whether the British Government's acquisition and administration of the territory under the 1903 agreement was an act of State beyond the cognizance of municipal courts, and whether pre-cession proprietary rights in the land could be enforced against the Government in municipal litigation.
Analysis: The agreement was construed as ceding to the British Government the entire management of the territory together with full sovereign powers of administration, revenue, civil and criminal jurisdiction, though the land remained Kalat territory. On that footing, the Government could exercise the powers conferred as in the case of territory acquired by cession or conquest. The settled authorities establish that when sovereign power acquires territory, inhabitants can enforce in municipal courts only such rights as the new sovereign chooses to recognize. Rights under the former regime, even if existing before the change of sovereignty, do not by themselves create enforceable municipal claims. The Government's decision not to recognize the plaintiffs' asserted titles was therefore not justiciable in the municipal courts.
Conclusion: The claim to enforce pre-existing title against the Government failed, and the suit was not maintainable in the municipal courts.
Final Conclusion: The appeal succeeded, the decree in favour of the respondents was set aside, and the respondents' suit was dismissed with costs.
Ratio Decidendi: Upon acquisition of territory by sovereign act, municipal courts can enforce only those rights that the new sovereign has recognized; unrecognized pre-cession rights are not enforceable against the sovereign as a matter of municipal law.