LEKHRAJ S LALVANI Vs. N M SHAH DEPUTY CUSTODIAN CUM MANAGING OFFICER BOMBAY

JUDGEMENT

(1.) The proprietors of two firms styled "Adam Hajee Peer Mohd. Essack" and "Hajee Ebrahim Kassam Cochinwala" had in the year 1947, migrated to Pakistan and both these firms became vested in the Custodian of Evacuee Properties for the State of Madras under S. 8 of the Administration of Evacuee Property Act, 1950, hereinafter referred to as the 1950 Act. On March 6, 1952 the appellant was appointed as Manager of the two firms under S. 10(2)(b) of the 1950 Act. The appellant also furnished security of Rs. 20,000 before taking possession of the business of the firms as Manager. The order of appointment-Ex. P-1, dated March 6, 1952 states:

(2.) The appellant filed a writ petition in the High Court of Kerala-being O. P. No. 1438 of 1959 for grant of (1) a writ of certiorari for quashing the order, dated December 15, 1959-Ex. P-13-and the proceedings, dated December 18, 1959-Exhibit P-16, (2) a writ of mandamus directing respondents Nos. 1 and 2 to hand over possession of the two business concerns including the premises, stock-in-trade, all records, etc., to the appellant, and (3) a writ of mandamus or appropriate writ or order directing respondents Nos. 1 to 3 not to sell by public auction or otherwise the two evacuee business concerns. S. Velu Pillai, J. by his order dated June 8, 1960, granted writ to the appellant as prayed for in prayers (1) and (2) but refused prayer (3) for a writ of mandamus restraining the respondents from selling the business by public auction. Against the order of the Single Judge the respondents filed an appeal being A. S. No. 484 of 1960 before the Division Bench of the High Court. The appellant also preferred an appeal A. S. No. 445 of 1960 against the order of Single Judge which was in regard to the refusal of the third relief. By judgment, dated December 6, 1960 the Division Bench of the High Court dismissed Appeal A. S. No. 445 of 1960 filed by the appellant but allowed the appeal A. S. No. 484 of 1960 filed by the respondents. The present appeals are brought on behalf of the appellant by certificate of the Kerala High Court granted under Art. 133 (1) (a) of the Constitution.

(3.) The first question arising in this case is whether the appellant was lawfully removed from the management of the business by the order of the respondent No. 1, dated December 18, 1959-Exs. P-13 and P-16. It was submitted on behalf of the appellant that under S. 10 (2) (b) of the 1950 Act the Custodian had the power to appoint a Manager for the Evacuee Property for carrying on any business of the evacuee and there was no power conferred by the Act upon the Custodian to remove the Manager so appointed. It was argued by the Counsel on behalf of the appellant that an indefeasible right of management was conferred upon the appellant because of the order of the Custodian-Ex. P-1, dated March 6, 1952. In our opinion, there is no warrant for this argument. The power of appointment conferred upon the Custodian under S. 10 (2) (b) of the 1950 Act confers, by implication, upon the Custodian the power to suspend or dismiss any person appointed. Section 16 of the General Clauses Act states: