Statutory vesting under the 1954 compensation law ended Custodian control and limited cancellation powers to the designated authority.

On statutory vesting of evacuee property under the Displaced Persons (Compensation and Rehabilitation) Act, 1954, the property vests absolutely in the Central Government and the evacuee's interest is extinguished, so the Custodian's powers under the earlier evacuee property law cease to operate for that property. Cancellation of an allotment thereafter lies only with the authority designated under the 1954 Act. The saving protection in section 10 applies only where the allottee is in possession and continues to hold the property on the date of acquisition; that condition was not satisfied here. Rules 74 and 102 of the 1955 Rules did not revive the Custodian's authority or assist the challenge.

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Issues: (i) Whether, after acquisition of evacuee property under the Displaced Persons (Compensation and Rehabilitation) Act, 1954, the Custodian retained jurisdiction to revise or cancel an allotment made under the Administration of Evacuee Property Act, 1950; (ii) Whether the appellants could claim protection under section 10 of the Displaced Persons (Compensation and Rehabilitation) Act, 1954; (iii) Whether rule 74 and rule 102 of the Displaced Persons (Compensation and Rehabilitation) Rules, 1955 barred the cancellation or transfer in question.

Issue (i): Whether, after acquisition of evacuee property under the Displaced Persons (Compensation and Rehabilitation) Act, 1954, the Custodian retained jurisdiction to revise or cancel an allotment made under the Administration of Evacuee Property Act, 1950.

Analysis: On publication of a notification under section 12(1), the evacuee property specified therein vests absolutely in the Central Government and the evacuee's interest stands extinguished. Once that happens, the Custodian's powers under the Administration of Evacuee Property Act, 1950, cease to operate in relation to that property. Section 19(1) of the 1954 Act confers the power to cancel allotments only on a managing officer or managing corporation, and by its overriding language it prevails over the inconsistent provisions of section 10 of the 1950 Act. The Custodian therefore became unable to deal with the property after the statutory vesting.

Conclusion: The Custodian had no jurisdiction to cancel or revise the allotment after the 1954 Act notification.

Issue (ii): Whether the appellants could claim protection under section 10 of the Displaced Persons (Compensation and Rehabilitation) Act, 1954.

Analysis: Section 10 protects a displaced person only if, on the date of acquisition, the person is in possession of and continues to hold the allotted property. The appellants had already ceased to hold and were not in possession of the Rajkot lands when the notification was published. Their earlier allotment, even if wrongly cancelled, did not satisfy the statutory condition of continued holding and possession.

Conclusion: The appellants were not entitled to the benefit of section 10.

Issue (iii): Whether rule 74 and rule 102 of the Displaced Persons (Compensation and Rehabilitation) Rules, 1955 barred the cancellation or transfer in question.

Analysis: Rule 74 relates to transfer of property as part of final settlement of compensation and not to quasi-permanent allotments. Rule 102 likewise governs powers of a managing officer or managing corporation in relation to property in the compensation pool, and does not revive the Custodian's authority under the 1950 Act. In any event, those rules could not assist the appellants because the property had already vested in the Central Government and the appellants had lost possession before the relevant notification.

Conclusion: Neither rule 74 nor rule 102 supported the appellants' challenge.

Final Conclusion: The appeal failed because the statutory vesting under the 1954 Act displaced the Custodian's authority, and the appellants could not bring themselves within the protection of the saving provision.

Ratio Decidendi: Once evacuee property is acquired under section 12 of the Displaced Persons (Compensation and Rehabilitation) Act, 1954, the Custodian's powers under the earlier evacuee property law stand displaced, and cancellation of allotment can be exercised only by the authority designated under the 1954 Act.

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