CUSTODIAN EVACUEE PROPERTY PUNJAB Vs. GUJAR SINGH

JUDGEMENT

(1.) This is an application by the Custodian of Evacuee Property against an order made by the Subordinate Judge, 1st class, Moga. There are seven respondents.

(2.) The facts are that on 14-10-1947, respondents Nos. 1 and 2 filed an application under Section 14, Arbitration Act, for filing of an award made between them and one Jodhi son of Chuhar. The award was made a rule of the Court on the same day and a decree passed in terms thereof. These terms were that respondents Nos. 1 and 2 were to recover art amount of Rs. 482/-by sale of a flour-mill engine which was situate in Ajitwal village in Moga Tehsil. Execution was taken out and the flour-mill was sold on 21-2-1948 and this sale was confirmed on 3-4-1948. Respondents Nos. 3 and 4 were the purchasers at the sale and they paid an amount of Rs 605/-. Later, these respondents sold the flour-mill to respondent No. 5 who subsequently sold it to respondents Nos. 6 and 7 for an amount of Rs. 4,900/-. On 6-10-1949 the Assistant Custodian, Ferozepur, filed an application under Section 15 of Ordinance No. IX of 1949 asserting that the engine was evacuee property and asking that the decree, sale and subsequent transfers set out above should be set aside and possession be given to the Custodian. The grounds of the application were that Jodhi was an evacuee, that the award of the 14-10-1947 was collusive and that the decree made thereon and subsequent transfers were ineffective against the Custodian.

(3.) The application was resisted on the ground that Jodhi was not an evacuee. It was also claimed that in any event respondents Nos. 3 and 4 were 'bona fide' purchasers for valuable consideration and that after the purchase improvements had been made and in any event compensation must be paid for those improvements.