DEWAN LABH CHAND Vs. CONTROLLER OF ESTATE DUTY NEW DELHI

JUDGEMENT

(1.) The main question for consideration is whether the compensation payable under the Displaced Persons (Compensation and Rehabilitation) Act, 1954, hereinafter referred to as "the 1954 Act", is property passing on the death of the deceased under the Estate Duty Act.

(2.) Estate Duty Reference No. 1 of 1967 has been referred to this Bench by a Division Bench of this Court and Estate Duty Reference No. 2 of 1963 has been heard along with it. Both these references are being disposed of by this common judgement. Both these cases have come up before this Court on statements of case submitted in one case by the Central Board of Direct Taxes, New Delhi, and in the other by the Central Board of Revenue, New Delhi.

(3.) In 1947 there had been large scale displacement of persons who were residents in territories which are known as West Pakistan and these persons, leaving their properties behind, had migrated to this country. In 1950 the Displaced Persons (Claims) Act was enacted. This Act, hereinafter referred to as the "1950 Act", provided for the registration and verification of claims of displaced persons in respect of immovable property in Pakistan. Section 2(a) of this Act defined "claim" as the assertion of a right to the ownership of or to any interest in any immovable property in West Pakistan. Section 5 of this Act entitled a ' displaced person to submit his claim to a Registering Officer for the registration of his claim to such property. Such claims were dealt with by Claims Officers under section 6. The Claims Officers were to hold summary inquiry and to pass such orders as they thought fit in relation to the verification and valuation of such claims. After this verification and valuation had taken place, the displaced person held what is called a "'verified claim". This verified claim did not confer any rights upon the displaced person in relation to the properties left in West Pakistan and it only amounted to the acceptance of the assertion of the displaced person as to the ownership of the properties left in West Pakistan and the valuation of such properties. This Act was made in pursuance of the scheme of rehabilitation which was being worked ' out by the Indian Government and which contemplated quasipermanent allotment of evacuee property to such of the displaced persons as owned immovable property in West Pakistan.