1994 PLP 2206 (CLC)

Date of hearing: 8th February, 1994. MUNIR A. SHEIKH, J.‑‑Nobody has appeared on behalf of the respondents, therefore, they are hereby proceeded against ex parte.

2. This Letter Patent Appeal is directed against judgment dated 13‑9‑1971 passed by the learned Single Judge through which W.P. No.591/R‑68 filed by the appellants has been dismissed.

3. The dispute relates to Crystal Ice Factory, Lyallpur (Faisalabad). This factory was allotted to the appellants. According to the report submitted by the Settlement Department in the writ petition 'as remarked by the learned Single Judge the allotment of the appellants continued only up to 31‑12‑1957 and the factory on the commencement of settlement operation was sealed on 16‑1‑1958. This factory was put to auction at one stage which was purchased by the appellants being the highest bidders. They instead of depositing the amount approached the Settlement Department that their case for the transfer of the said industrial concerns should be considered according to paragraph 15 of the Schedule to the Displaced Persons (Compensation and Rehabilitation) Act, 1958. Their prayer was declined on the ground that their allotment continued only up to 31‑12‑1957 and they ceased to be in possession thereof w.e.f. 16‑1‑1958 when the factory was sealed, therefore, were not entitled to seek transfer of the same under paragraph 15 of the Schedule. The writ petition filed by the appellants to challenge the orders passed by the Settlement Authorities declining to transfer the factory under the said paragraph 15 to the appellants in W.P.No.591/R‑68 which was dismissed through judgment dated 13‑9‑1971 on the sole ground that they were neither the allottees of the factory after 31‑12‑1957 nor could claim to be in possession thereof the same having been sealed w.e.f. 16‑1‑1958.

4. This appeal was admitted as it was brought to the notice of the Bench that according to Press Note dated 18‑12‑1957 and 8‑7‑1958 the appellants were entitled to claim transfer of the factory under paragraph 15.

5. We have examined the Press Note dated 8‑7‑1958 a copy of which has been placed on the record. It provides that the allotment of the industrial concerns may be renewed for a further reason and in the case of non‑seasonal ones for further one year from 30‑6‑1958 on the condition that if in the meantime such concern was required for Settlement of Claims of displaced persons the allottee would not claim any compensation on account of earlier termination of the allotment. According to Press Note dated 18‑12‑1957 the allotments of industrial concerns which were due, to expire on 31‑12‑1957 was directed to be extended for a period of six months. In view of these policy decisions the expiry of allotment of this industrial concern w.e.f. 31‑12‑1957 and the act of its sealing as a consequence thereof had been rendered ineffective. The appellants were to be treated to be ‑the allottees and in possession thereof. The refusal by the Settlement authorities to consider their case seeking transfer of the same under Paragraph 15 of the Schedule on the erroneous assumption that they ceased to be the allottees w.e.f. 31‑12‑1957 as also that they were to be deemed to be not in possession thereof amounted to refusal to exercise powers as regards disposal of this industrial concern under Paragraph 15 of the Schedule, as such was not sustainable.

6. For the foregoing reasons this appeal is accepted. Judgment dated 13‑9‑1971 passed its W.P. No 591/R‑68 is hereby set aside. The orders dated 4‑7‑1968 passed by the Additional Settlement Commissioner for re‑auction of the factory in dispute is hereby declared to have been passed without lawful authority and of no legal effect and quashed. There will be no order as to costs.

7. The case shall be entrusted to a notified officer/learned Member, Board of Revenue for consideration and disposal of the request of the appellants for the transfer of the factory under paragraph 15 of the Schedule, in accordance with law as it stood before its appeal. A.A./M‑1703/L Appeal accepted