MOHAMMAD ALI vs ABDUL MAJID AND Another
This matter concerns a petition for leave to appeal against a High Court order that upheld the restoration of property to a claimant displaced person. The respondent No. 1 had been transferred property under Settlement Scheme No. 1, but the transfer was cancelled by the Deputy Settlement Commissioner due to an alleged non-genuine claim surrender and subsequent failure to pay the required price within a short notice period. The property was then auctioned to the petitioner. The respondent No. 1 successfully challenged the cancellation before the Settlement Commissioner, arguing that the default was due to mischance and that the auction was conducted hastily, denying him the statutory 30-day period to pay the dues and seek restoration. The Supreme Court affirmed the Settlement Commissioner's decision, holding that the Deputy Settlement Commissioner acted hastily in cancelling the transfer and auctioning the property before the expiry of the period during which the original transferee could have sought restoration. The Court concluded that the Settlement Commissioner's order was just and that the High Court correctly declined to interfere in its equitable jurisdiction.
- Whether a Deputy Settlement Commissioner can cancel a property transfer and auction it before the expiry of the statutory period allowed for the original transferee to pay the dues and seek restoration?
- Is the High Court justified in refusing to interfere with an order of the Settlement Commissioner that restores property to a transferee after a hasty cancellation and auction?
ORDER
1. MUHAMMAD YAQUB ALI, J.-Property No. 210/D in Burewala, district Multan, was transferred to the respondent No. 1, a claimant displaced person, under Settlement Scheme No. 1. He paid the entire sale price by surrendering the verified claim purchased from a third person whereupon P. T. O. And P. T. D. Were issued in his name. Later on, the Deputy Settlement Commis--sioner found that the claim surrender by the respondent No. 1 was not genuine and he made demand for payment of Rs.
2. 14,000 odd. No date for payment was specified in the notice. A second notice for payment was issued on the 22nd April 1968, calling upon him to pay the amount within two days. In default of payment the transfer in favour of the respondent No. 1 was cancelled on the 3rd May 1968 and the property sold by auction to the petitioner on the 14th May 1968.
3. The respondent No. 1. Moved the Additional Settlement Commissioner against the cancellation of the transfer in his favour on the ground that the default was due to mischance and that he was not given sufficient opportunity to pay the amount. He also made grievance of the hasty auction of the property before the expiry of 30 days during which period he had under the rules the option to pay the sum due and ask for restoration of the property resumed for default in payment of the transfer price.
4. The appeal was rejected, but on a further revision petition the Settlement Commissioner found merit in the pleas raised by the respondent No. 1 and cancelling the auction in favour of the petitioner restored the property to him. A writ petition lodged by the petitioner against the order of the Settlement Commis--sioner having failed in the High Court he now seeks leave to appeal.
5. The facts narrated above do make out a hasty action on the part of the Deputy Settlement Commissioner in cancelling the transfer in favour of the respondent No. 1 and its disposal by auction in favour of the petitioner before the expiry of the period during which he could on payment of the sale price apply for restoration of the property. Otherwise too the order made by the Settlement and Rehabilitation Commissioner was eminently just and there would have been no justification for the High Court to interfere with it is the exercise of its equitable jurisdiction.
6. The petition for leave to appeal is dismissed.