COMMISSIONER Vs. CORPORATION OF COCHIN

JUDGEMENT

(1.) This appeal by the custodian appointed under the Administration of Evacuee Property Act, 1950 is against the judgment of the lower appellate court reversing the decree of the Trial Court whereby the Trial Court dismissed the suit of the respondent Corporation of Cochin for realisation of amounts alleged to be due from the custodian as property tax levied on evacuee properly vested in him. Dismissing the suit, the Trial Court held that the property in question being evacuee property was vested in the Central Government, and was, therefore, not liable to be assessed to property tax. This finding was reversed by the lower appellate court, stating that in view of clause (2) of Art.285 and Art.277 of the Constitution, the property, although vested in the Central Government, is liable to be assessed to property tax under the Kerala Municipalities Act, 1961.

(2.) The lower appellate court, in my view, misunderstood the character of the property, but came to the right conclusion. The property was at no material times vested in the Central Government and, therefore, the provisions of the Constitution relied on by the lower appellate court have no application. Evacuee property is vested under S.8 of the Administration of Evacuee Property Act. 1950 in the custodian of the State. The custodian is not the owner of such property. His powers and duties are those specified under S.10 of the Act. He administers the property for the purposes enumerated under the Act. Neither he, nor the Central Government, nor the State Government becomes the owner of the properties vested in the custodian. That this is the true character of evacuee property is clear from the provisions of the Act. I am fortified in this conclusion by what is stated by Shelat, J. (as he then was) in S.D. Baxter v. T L. Bhagtiani, AIR1961 Bom.69.

(3.) In the circumstances, the appellants are not justified in contending that the property in question is not liable to be assessed to property tax. The appeal is accordingly dismissed. No costs.