UNION OF INDIA Vs. IQBAL SINGH

JUDGEMENT

(1.) The Union of India and the Commissioners of the Rehabilitation Department of the Govt. of India are the appellants before us after certification of this case, under Article 133 (1) (a) of the Constitution. It involves a consideration of the meaning of some rules framed under Section 40 of the Displaced Persons (Compensation and Rehabilitation) Act 44 of 1954 (hereinafter referred to as 'the Act') .

(2.) The respondent Iqbal Singh, a displaced person from Rawalpindi, in West Pakistan, had a verified claim assessed at over Rs. 32 lacs from compensation under the Act. His uncle, Jai Singh, had also a verified claim assessed at Rs. 26,06,413/-. On 21st November, 1952, Jai Singh executed a will under which he gave various legatees, including the respondent, shares in the compensation which was due to be paid to him. Jai Singh died on 7th February, 1953. In an inquiry under Section 9 of the Act the respondent was held to be a beneficiary under Jai Singh's will to the extent of 19% of the amount due to be paid to Jai Singh. The Assistant Settlement Officer, however, clubbed together the individual claim of over Rs. 32 lacs of Iqbal Singh respondent, and the share of Rupees 4,95,028/- as a legatee in the separate claim of Jai Singh. He then awarded the maximum compensation of Rs. 2 lacs under Rule 16 which says:

(3.) Appendix VIII is the relevant appendix giving percentages of the assessed claims which were to be paid as "compensation" for the verified claims ranging from Rs. 500 to Rs. 18 lacs and above. The maximum prescribed for Rs. 18 lacs and above is Rs. 2 lacs as "compensation". Thus, no claimant could get more than that as compensetion whatever be the amount at which his claim was assessed. The result of clubbing together by the Assistant Settlement Officer was that the respondent was not to get more than Rs. 2 lacs even though his own claim as compensation was for that much so that he was, if this decision was correct, to be totally deprived of his share in the legacy left by his uncle. His case is that he is entitled to Rs. 2 lacs on his claim of Rs. 32 lacs, and, in addition, to his share of 19% also as a legatee of the will relating to the amount which was payable to Jai Singh deceased as claimant. The character of the first was "compensation" and of the second was that of a "legacy" under a will.