TaxTMI 
TaxTMI 
1960 (9) TMI 123
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....o his being an allottee oÂGBP land is also a holder of a verified claim to the extent of Rs, 17,500/- and the net compensation to which he is entitled has been assessed at Rs. 6,000/-odd. 4. All these petitioners obtained loans from the State Government for one or more of the following purposes, namely: 1. For the purchase of tractors, seed, bullocks, and houses; or 2. for repairs to houses; or 3. for construction of houses; Or 4. for sinking of tubewells or wells etc. These loans were advanced to them under the provisions of the Land Improvement Loans Act (No. 19 of 1883) and the Agriculturists' Loans Act (No. 12 of 1884). Both of these Acts are Governor-General's Acts and as such Central Acts passed long before the bifurcation of the legislative powers between the Centre and the provinces and later on the States. These laws have been saved by the Constitution Acts that have been passed from time to time and fall within the category known to the Constitution of India as the "Existing Laws". Section 4 of both of these Acts sets out the purpose for which loans may be granted, while Section 6 in the 1883 Act deals with the pe....
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....dvanced on behalf of the petitioners is based on the provisions of the Displaced Persons (Compensation and Rehabilitation) Act (No. 44 of 1954) -- hereinafter called the Act -- and particularly on Section 30 of the Act, which prohibits arrests for the recovery of sums due under the Act. The petitioners' case is that these loans are public dues as defined in Section 2(d) of the Act and according to the scheme and the provisions of the Act are now sums recoverable under the Act and therefore in view of Section 30 of the Act, the petitioners cannot be arrested. 8. On the other hand, the contention of the State is that these sums are not sums due under the Act, but are sums due under the Land Improvement Loans Act (No. 19 of 1883) and the Agriculturists' Loans Act (No. 12 of 1884) and as such can be recovered as arrears of land revenue and the petitioners can be arrested. It is further contended that even if these loans are held to be sums due under the Act the jurisdiction to legislate about them is within the exclusive legislative field of the State and therefore the Act so far as it bars arrest for recovery of the loans would be outside the competence of the Union Legisla....
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....ing particulars, namely: a) * * * b) * * * c) * * * d) * * * e) the amount, if any, of the public dues recoverable from the applicant; f) * * * g) * * * Section 7 provides for the determination of compensation and for the deduction of public dues from the amount of compensation and is in these terms: "7(1) * * * (2) On ascertaining the amount of compensation to which an applicant is entitled under Sub-section (1), the Settlement Commissioner shall deduct therefrom the following dues recoverable from the applicant, in the order of priority mentioned below: (a) the amount, if any, of the public dues recoverable from the applicant under Section 5; b) * * * c) * * * (3) After deducting the dues referred to in Sub-section (2) the Settlement Commissioner shall make an order determining the net amount of compensation, if any, payable to the applicant. (4) * * *" Section 10 provides a special procedure for payment of compensation in certain cases specified in the section and is in these terms: "10. Where any i....
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....ng to the person by whom the sum is alleged to be payable an opportunity of being heard, decide the question; and the decision of the Settlement Commissioner shall, subject to any appeal or revision under this Act, be final, and shall not be called in question by any Court or other authority. (3) For the purpose of this section, a sum shall be deemed to be payable to the Custodian, notwithstanding that its recovery is barred by the Indian Limitation Act, 1908 (9 of 1908), or any other law for the time being in force, relating to limitation of actions." deals with certain sums to be recovered as arrears of land revenue. Section 30, which is in these terms: "30(1) No person shall be liable to arrest or imprisonment in pursuance of any process issued for the recovery of any sum due' under this Act which is recoverable as an arrear of land revenue. (2) Notwithstanding anything contained in Sub-section (1) if the Chief Settlement Commissioner is of opinion that a person is refusing, or neglecting, or has refused or neglected, to pay any sum due under this Act, he may, after giving such person an opportunity of being heard, by order in writing stating the g....
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....dure for submission of compensation application and determination of public dues. Rule 7 deals with the determination of public dues in the case of persons holding verified claims. An enquiry for the determination of the public dues is provided in Rule 8. Chapter IV of the Rules deals with the determination of compensation and Rule 14 thereunder provides for deduction of certain dues from the amount of compensation and is in these terms: "14. The following dues shall be deducted from the amount of compensation in the order of priority mentioned below: (i) public dues; (ii) the amount, if any, referred to in Clause (a) of Rule 13; (iii) the amount, if any, referred to in Clause (b) of Rule 13." Chapter V deals with payment oÂGBP compensation by transfer of acquired evacuee properties. Chapter VIII deals with compensation in respect of verified claims for land other than agricultural land in the States of Punjab and Patiala and East Punjab States Union. (See Rule 69)." 11. These loans for the recovery of which the petitioners are sought to be arrested are dealt with In Ch. X. Under Rule 71, the allottee (i.e., the land allottee) h....
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....h charge. (3) ** * * (4) ** * * (5) ** * * 73(1). Where the allottee has a verified claim in respect of property other than agricultural land, the Settlement Officer shall, on receipt of a declaration under Rule 71 make an enquiry in the manner specified in Rule 72, verify the particulars specified in the declaration in the presence of the allottee or his authorised agent, determine the public dues outstanding against such allottee and shall thereafter send a copy of the declaration and other relevant papers to the Settlement Commissioner together with:-- (i) a report on the public dues payable by the allottee (ii) a recommendation whether having regard to all the circumstances of the case, the allotment may be made permanent, cancelled or varied: Provided that if it appears to the Settlement Officer that the public dues owing from the allottee do not exceed two thirds of the compensation payable to him in respect of property other than agricultural land he shall pass an order transfering the property allotted to the allottee in permanent ownership as compensation and shall issue to him a sanad in the form spec....
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....cribed in Appendices XVII and XVIII. In both these forms, Clause 2(ii) is identical and only need be noticed for the present purposes. It is in these terms:-- "2(ii) Any loan made to the transferee or his predecessors-in-interest by the Central Government or a State Government or, any other dues payable by the transferee or his predecessors-in-interest in respect of the said property to either of the said Governments on the date of transfer together with any interest due on any such loan shall as well be a charge on the said property and shall without prejudice to any other rights and remedies of the said Governments, be recoverable in the same manner as an arrear of land revenue and any transfer of the said property shall not be valid unless the amount of the said loan together with the interest, if any, and the said dues have been paid in full." The other provisions are not necessary to be noticed for the purposes of these petitions. 12. It would, therefore, appear from the entire scheme of the Act and the Rules made thereunder that the loans granted by the Central or the State Government before the conference of permanent rights in land to the allottees or before the....
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...."The word 'due' has a variety oÂGBP meanings, depending on the connection in which it is used. It has been defined generally to be that which is owed; that which custom, statue, or law required to be paid." Page 446. ''The word 'due' in its primary sense, means 'owing';" Page 447. "The term 'due' is sometimes used to express "the mere state of indebtment, and then is an equivalent to 'owed' or 'owing' and it is sometimes used to express the fact that the debt has become payable." Page 447. "The word 'due' has more than one signification or is used on different occasions to express distinct ideas. At times, it signifies a simple indebtedness, without reference to the time of payment. At other times it shows that the day of payment or tender is passed." Page 449. "The word 'due' is only equivalent to 'payable'." Page 450. "The word 'due' considered by itself has many definitions. Bouvier defines it, in its first and broadest sense, as that which is just and proper and in another and less general sense, as what ought to be paid; what may be demande....
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.... words 'payable' and 'due' in this Act have been used synonymously. If the interpretation, which I have placed on the 'sums due under this Act is not placed, it would defeat the very purpose and object of the Act and would lead to absurdity. There are no sums due under the Act possibly with the exception of sums which become due by way of rent of evacuee property after it is transferred to the compensation pool. Section 21 provides for recovery of certain sums as arrears of land revenue and they are sums payable to Government or to the Custodian in respect of any evacuee property, which had become due prior to the date of acquisition of such property under the Act. According to the argument of the State counsel, they would be sums due under the Administration of Evacuee Property Act and Section 21 only makes them recoverable under the Act. But then, the learned counsel did not contend that what is covered by Section 21 is not a sum recoverable under the Act. He argued that Section 30 has relation only to Section 21 and sums outside Section 21 would be outside Section 30. How this would be so, I have not been able to appreciate. As I look at the matter ther....
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....o this argument. In the first instance, if Section 10 of the Act is read with the Rules and the appendices, then these loans must, in fact, be held to be recoverable under the Act because the transfer of the property is subject to such terms and conditions as may be prescribed and those terms and conditions are prescribed by Section 10 of the Act. The other answer is that the Rules in this case are statutory rules, which have the tacit approval of both Houses of Parliament and as such are part of the Act. If the Rules are within the competence of the rule making power, then they become part of the Act and as such any sum due under the Rules would automatically be sum due under the Act, for the Rules have by reason of the provisions of Section 40 become part of the Act. In this connection, reference may usefully be made to the decision of the House of Lords in Institute of Patent Agents v. Joseph Lockwood 1894 AC 347 The learned State counsel did not and could not contest that the Rules made were either outside the scope of the Act or are, in any way, ultra vires the Act. 1 9 . I may now advert to the two contradictory views oÂGBP this Court as to the applicability of Se....
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....between the debtor and the creditor. Moreover, the word 'due' is not confined to merely as being 'owing' as has already been noticed, and therefore with due deference to the learned Judge there is no justification for holding the word 'due' as merely meaning 'owing'. 20. The last argument raised concerns the vires of Section 30 of the Act. It is contended that the grant and recovery of loam in question belongs exclusively to the State field (Schedule VII, List II, item 18) while the Act (section 30 of the Act) relates to the concurrent field (Schedule VII, List III, item 27 or possibly item 41), and therefore, in so far as it trenches on the exclusive State field, namely, the grant of agricultural loans, which will include the provision for arrest of the debtor for the recovery thereof, will, to the extent, it forbids arrest, be repugnant, and therefore ultra vires. Thus the State Law which permits the arrest of the petitioners for recovery of such loans would still hold the field. On this basis, it is contended that the proceedings for arrest are quite legal. 21. At this stage it will be proper to examine the position of the 1883 and 1884 Acts....
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.... [AIR 1953 SC 58), wherein the following observations occur:-- "This invasion of the provincial field of legislation does not however render the Industrial Disputes Act of the central legislature invalid, as we have to pay regard primarily to the pith and substance of the challenged Act in consider ing the question of conflict between the two Jurisdictions. Industrial and labour disputes are within the competence of the central legislature, and the impugned Act deals with this subject and Jiot with local government. The point is covered by AIR 1947 PC 60 Therefore the argument that the Act is ultra vires so far as it legislates about matters covered by Schedule VII, List II, item 18 Constitution of India must be repelled. 23. The learned counsel further contended that the field being occupied by the State law, the Central Act so far as it comes in conflict with that occupied field would be ultra vires and the State law must prevail in preference to the Central law. This argument is not sound. In the first instance, there is no State law, which occupies the field. The field is only occupied by an 'Existing Indian Law' and in a competition between the Central l....