Holding

The statutory powers under the Displaced Persons Act are not conditioned on the prior framing of rules; the Central Government could lawfully issue directions for sale and the delegated authority could validly extend time, but such orders must be passed after affording notice and an opportunity of hearing to interested parties.

Summary

The case concerned a plot of evacuee land that was auctioned to the appellant under the Displaced Persons (Compensation and Rehabilitation) Act, 1954, but the appellant failed to pay the balance and the sale was cancelled. The Central Government, exercising powers under the Act, set aside the cancellation and granted the appellant time to deposit the balance, later extending that time. Respondents, who had become the highest bidders in a subsequent auction, challenged the extension and the earlier sale, arguing that the Central Government lacked authority to dispose of urban agricultural land without specific rules and that the extension violated natural justice. The Supreme Court held that the Act’s powers are not conditional on the existence of rules; therefore, the Central Government could issue administrative directions for sale, and the delegated authority under Section 33 validly extended the time, but the order must be made after giving notice and an opportunity of hearing to the respondents. Consequently, the Court allowed the appeal in part, modifying the High Court’s order and directing a fresh consideration of the appellant’s petition after complying with natural‑justice requirements.

Issues considered

The absence of rules for disposal of urban agricultural property under the Displaced Persons Act, 1954, does it preclude the Central Government from issuing executive directions for auction sale?
Whether the delegated authority under Section 33 of the Act had jurisdiction to extend time for the appellant to deposit the auction price.
Whether the order extending time violated principles of natural justice by not providing notice and hearing to the respondents.

Legislation cited

Constitution of Indias. 226
Displaced Persons (Compensation and Rehabilitation) Act, 1954s. 14, s. 16, s. 20, s. 33, s. 40, s. 8

Subjects

Displaced Persons Actdelegated legislationrule-makingcondition precedentnatural justiceextension of timeauction saleArticle 226administrative law

Judgment

A

SURINDER SINGH
v.
CENTRAL GOVERNMENT & ORS.
B
SEPTEMBER 26, ·1986

[M.P. THAKKAR AND K.N. SINGH, JJ.]

Constitution of India, 1950---Artic/e 226-Copy of the impugned
c order to be produced before High Court in writ proceedings-Improper
for High Court to quash an order not produced before it.

Displaced Persons (Compensation and Rehabilitation Compen-
sation) Act 1954/Displaced Persons (Compensation & Rehabilitation)
D Rules, 1955

Administrative Law-Delegated legislation-Framing of the rules
is not condition precedent to the exercise of power expressly and uncon-
ditionally conferred by statute.

E The plot in questilin, being an evacuee property was included in
the compensation pool under s. 14 of the Displaced Persons (Compensa-
tion and Rehabilitation Compensation) Act, 1954 and put to auction
sale on August 24, 1959. The highest bid of the appellant was provision-
ally accepted and he deposited I/5th of the amount, but failed to deposit
the balance amount. The Managing Officer, therefore; cancelled the
f auction sale. The Chief Settlement Commissioner set aside the order of
the Managing Officer and allowed time to the appellant to deposit the '
balance of purchase price by May 30, 1968, but the appellant again t
failed to deposit the amoun~ within time. Consequently the Settlement
Officer by his order dated October 2, 1968 cancelled the auction sale
made in appellant's favour and the property was put to auction sale on
G , January 17, 1%9. Respondents Nos. 2 and 3 made the highest bid and
deposited 20o/o of the amount. The appellant appealed before the
Assistant Settlement Officer against the order dated October 2, 1968
cancelling the auction sale, which was rejected on April 2, 1969. His
"revision petition was also dismissed on Augnst 13, 1969. However, in
the petition under s. 33 of the Act made before the Central Govern-
H ment, the order cancelling the auction sale held on August 24, 1959 was

946
SURINDER SINGH v. CENTRAL GOVT. 947

set aside by the authority exercising the delegated powers of the Central A
Government and granted 15 days' time to the appellant for depositing
the balance of the purchase price with a condition that on failure to
deposit the balance of the auction price the petition shall stand dismis-
sed. The appellant again failed to deposit the amount within time, but
on a request made by him, the time was extended till February 28, 1970
B
and the appellant deposited the remaining auction price .within the
extended time.

A petition under Article 226 fded by the respondents Nos. 2 and 3
challenging the order dated February 6, 1970 setting aside the order
cancelling the auction sale held on August 24, 1959 and order extending
time till February 28, 1970 and also for a direction to the authorities to .c
finalise the auction sale held in their favour on Jlll!uary 17, 1969 was
dismissed by aSingle Judge. The Division Bench, however, allowed the
Letters Patent Appeal, quashed the orders of delegated authority and
directed the authorities to finalise the auction sale held in respondents'
favour and held: (1) that sale of urban agricultural property which
formed part of the compensation pool could be .held only in. accordance D
with the Rules framed under the Act as contemplated by ss. 8 and 40.
Since no rules had l;leen framed for the disposal of the urban agri-
cultural property, the Central Government could not lawfully provide
for sale of the urban agricultural land by executive directions and
consequently auction sale held on August 24, 1959 was illegal; (2) that
the delegated authority exercising powers under s. 33 had no jurisdic· E
tion to grant time to the appellant for making deposit or to further
extend the time to enable him to deposit balance of auction price by
February 28, 1970; and (3) that the delegated authority had passed
orders in violation of natural justice as no notice was issued to the
· respondent Nos. 2 and 3 and no opportunity of hearing was afforded ' to
them. F

r..,_ Allowing the appellant's appeal partly and modifying the order of
the High Court, the Court,

HELD: 1. Sections 8 and 20 of the Dispfaced Persons ( Compen-
sation and Rehabilitation Compensation) Act 1954 provide for pay- G
ment of compensation to displaced persons in any of the forms as
specified including by sale to the displaced persons of any property
from the compensation pool and setting off the purchase money against
the compensation to them. [956B·CJ

2. Section 16 confers power on the Central Government to take H
948 SUPREME COURT REPORTS [198613 S.C.R.

A measures which it may consider necessary for the custody, management
and disposal of compensation pool property. The Central Govemrnent
had, therefore, ample powers to take steps for disposal of pool property
by auction sale and for that purpose it had authority to issue adminis-
trative directions. [956C-D] .

B 3. Section 40(2) (j) of the Act provides for framing of rules pres-
cribing procedure for the transfer of propei;tY out of the compensation
pool and the adjustment of the value of the property so transferred .>I.
against the amount of compensation. Neither s. 8, 16, 20 nor s. 40 lay
down that payment of compensation by sale of the pool property to a
displaced person shall not be done unless rules are framed. These provi-
c sions confer power on the Central Government and the authorities
constituted under the Act to pay compensation to displaced persons by ·
sale, or allotment of pool property to them in accordance with rules, if
~
any. [9560-E]
r
4. Framing of rules regulating the mode or manoer of disposal of
D urban agricultural property hy sale to a displaced person is not a condi-
tion precedent for the exercise of power by the authorities concerned
under ss. 8, 16 and 20. If the legislative intent was that until and unless
rules were framed power conferred under the said sections could not be
exercised, that intent could have been made clear by using the expres-

E
sion "except in accordance with the rules framed" a displaced person
shall not be paid compensation hy sale of pool property. In the absence >
of any such provision the framing of rules, could not be a condition
precedent for the exercise of power. [956E-G]

5. Where a statute confers powers on an authority to do certain
act or exercise power in respect of certain matters snhject to rules, the (
F exercise of such power does not depend on the existence of Rules unless I

the statute expressly provides for the same. In other words, framing of
rules is not a condition precedent to the exercise of the power expressly
and unconditionally conferred hy the statute. [954H; 955A-BJ
>-
6. The expression "subject to Rules" only means in accordance
G with the rules, if any. If rules are framed, the powers so conferred on
authority could he· exercised in accordance with those rules. But if no
rules are framed, there is no void and the authority is not precluded
from exercising the power conferred hy the statute. [955B-C]
)'
Bishan Singh v. The Central Govt. and Others 1961(63) Punjab
H Law Reporter p. 75, over-ruled ..
SURINDER SINGH v. CENTRAL GOVT. 949

T. Cajee v. U. Jormanik Siem and Anr., [1961] 1 SCR 750, B.N. A
Nagarajan and Ors. v. State of Mysore and Ors., [1966] 3 S,C.R. 682,
Mysore State Road Transport Corporation v. Gopinath, [1968] 1 S.C.R.
767, U.P. State Electricity Board v. City Board Mussoorie and Ors.,
I1985] 2 S.C.R. 815; relied upon.
B
7. The Central Government had ample jurisdiction to issue
administrative directions regulating the payment of compensation to
the displaced persons by sale of the urban agricultural property. The
view taken hy the High Court in Bishan Singh's case [1961] 63 P.L.R.
75 is not sustainable. The High Court was, therefore, in error in hold-
ing that the auction sale held in appellant's favour oo August 24, 1959
was illegal and void. [956G-H] c
8. So far as the challenge to the validity of the order of the
delegated authority extending time to enable the appellant to deposit the
auction sale money is concerned, the High Court had quashed the same
although that order was not before it, as none of the parties filed the
D
same. Respondents who had challenged that order should have filed a
col>y thereof. In the absence of the impugned order the High Court
could not quash the same.

(9) Normally whenever an order of Government or some autho-
rity is impugned before the High Court under Article 226 of the Consti-
E
tution, the copy of the order must be produced before it. In the absence
of the impugned order it could not be possible to ascertain the reasons
which may have impelled the authority to pass the order. It is, there-
fore, improper to quash the order which is not produced before the High
Court in a proceeding under Article 226 of the Constitution. [957E-F]
F
(10) The power conferred upon the Central Government under s.
33 of the Act is a residuary power in nature.· It confers wide powers on
the Central Government to call for the record of any case and to pass
any order which it may think fit in the circumstances of the case. The
only limitation on exercise of this power is that the Central Govern-
ment shall not pass any order which may be inconsistent wit)l any of the
G
provisions of the Act and the rules made thereunder. Therefore,' the
Central Government or the delegated authority has power to set aside
any order of the subordinate authorities, or to issue directions which it
may consider necessary on the facts, of the case subject to the aforesaid
y rider. This power is intended to be used to do justice and to mitigate
hardship to a party unbriddled by technicalities.. Therefore, the
H
950 SUPREMECOURTREPORTS • [ 1986] 3 S.C.R.

A delegated authority while exercising powers of the Central Government
under s. 33 had ample jurisdiction to grant time. [95lli; 958A..C]

11. Extension of time to enable the appellant to deposit the money
did not amount to review of the earlier order dated 6.2. 70 and the default
B cause therein was intended to ensure complian.ce of the order. [958D I

Mahanta Ram Das v. Ganga Das, [1961] 3 S.C.R. 763, relied
upon. ><,

12. After cancellation of the auction sale held 'in appellant's
favour, the property in dispute was again put to auction sale and at that ~
c auction sale respondent Nos. 2 and 3 were the highest bidders. Their
bid was provisionally accepted and they had deposited one-fifth of the
auction sale amount. [959D-E]

13. The highest bidder at an auction sale does not get any right or )-
interest in the property till the auction sale is approved, confirmed and
D
the sale deed is executed in his favour. The respondents have been in
possession of the property since long and furthermore on the basis of
their highest bid made at the subsequent sale they had sufficient interest
in the matter to contest the appellant's petition made under s. 33 of the
Act. The High Court was, therefore, right in holding that the respon-
dents should have been afforded opportunity of hearing before any ).
E
order on the appellant's petition was passed. Since no such opportunity
was afforded, the High Court was justified in quashing the order. The
High Court's order to that extent is upheld. [960A-D I

Bombay Salt and Chemical v. Johnson and Ors., AIR 1958 SC
F
289, referred to. t
14. The Central Government or the authority exerc1smg its
power under s. 33 of the Act is directed to consider the appellant's t
petition afresh in accordance with law after giving notice and affording
opportunity of hearing to respondent Nos. 2 and 3. [960D-E]
G
CIVIL. APPELLATE JURISDICTION: Civil Appeal No.
2062 of 1972.

From the Judgment and Order dated 14.10.1971 of the Punjab y
and Haryana High Court in Letters Patent Appeal No. 63 of 1971.
H
I
SURINDERSINGH v. CENTRAL GOVT. (SINGH,!.] 951

Rajinder .Sacchar, Naunit Lal, Kailash Vasdev "'1d P.R. A
Ramesesh for the Appellant.

A. Minocha and Mrs. Veena Minocha for tlie Respondents.

The Judgment of the Court was delivered by B

SINGH, J. This appeal is directed against the Judgment of a

·
..
Division Bench of Punjab & Haryana High Court setting aside order
of a Single Judge and also the Order made by the Central Govt.

r
granting extension of time to the appellant to deposit purchase price in
connection with the auction sale dated August 24, 1959 held in appel-
lant's favour, and directing the Rehabilitation Department to take c
further proceedings regarding auction sale held in favour of the res-
pondents.

Plot No. 168 situate in Jalandhar City, an evacuee property was
included in the compensation pool under Sec. 14 of the Displaced
D
Persons (Compensation and Rehabilitation Compensation) Act, 1954.
This plot was put to auction sale on August 24, 1959. The appellant
who was displaced person made the highest bid of Rs.20,000, it was
provisionally accepted and he deposited one-fifth of the amount at the
conclusion of the auction, but he failed to deposit the balance amount.
The Man<iging Officer therefore cancelled the auction sale. On a Revi-
E
sion Petition filed by the appellant, the Chief Settlement Commis-
sioner by his Order dated March 30, 1968 set aside the Order of the
Managing Officer and allowed time to the appellant to deposit the
balance of purchase price.by May 30, 1968. The appellant again failed
to deposit the amount within time, consequently Settlement Officer by
his Order dated 2.10.1968 cancelled the auction sale made in appel-
F
lant's' favour. Thereafter the property was put to auction sale on
January 17, 1969. At that auction sale Sohan Lal and Sunder Lal,
-·~.. respondents who are also displaced persons made their highest bid for
Rs.27 ,025 and they deposited 20% of the amount at the conclusion of
the auction. Meanwhile the appellant preferred an appeal against the
Order dated 2.10.1968 cancelling the auciiorr sale !Jefore the Asstt.'
G
Settlement Officer, but the appeal was rejected on 2.4.1969. The
appellant preferred a Revision Petition before the Chief Settlement
Commissioner but that too was dismissed on August 13, 1969. There-
after the appellant made a petition under sec. 33 of the Displaced
Persons (Compensation & Rehabilitation) Act, 1954 (hereinafter
referred to as the Act) before the Central Government. Shri Rajni H
952 SUPREME COURT REPORTS [1986] 3 S.C.R.

A Kant exercising the delegated powers of the Central Govt. set aside
the order cancelling the auction sale held on August 24, 1959 and --.L
granted 15 days' time to the appellant for depositing the balance of the
purchase price by his Order dated February 6, 1970 with a condition
that on failure to deposit the balance of the auction price the petition
shall stand dismissed. The appellant again failed to deposit the amount
B
within time, but on a request made by the appellant Shri Rajni Kant
extended time till February 28, 1970 for depositing the remaining
amount of purchase money. Admittedly the appellant deposited the

1
remaining auction price by February 28, l970. The respondents filed a
Writ Petition under Article 226 of the Constitution of India before the
Punjab & Haryana High Court challenging the Order of Shri Rajni
c Kant dated February 6, 1970 as well as his subsequent Order extending
time till February 28, 1970 and also for issue of a direction to the
authorities to finalise the auction sale held in their favour on January
17, 1969. A learned Single Judge after hearing the parties dismissed
the petition. On a Letters Patent Appeal a Division Bench of the High
Court allowed the appeal set aside the Order of the learned Single
D
Judge dismissing the writ petition, and quashed the Order of Shri
Rajni Kant granting time to the appellant to deposit the balance
amount of the sale price under sec. 33 of the Act. The Division Bench
directed the authorities to finalise the auction sale held in respondents'
favour. Aggreived the appellant has preferred this appeal on a certi-
ficate granted by the High Court.
E
The High Court held that sale of urban agricultural property
which formed part of the compensation pool could be held only in
accordance with the Rules framed under the Act as contemplated by
sec. 8 and sec. 40. Since no rules had been framed for the disposal of
F
the urban agricultural property; the Central Government could not t
lawfully provide for sale of the urban agricultural land by executive
directions. Consequently auction sale held on August 24, 1959 was
illegal. The High Court further held that Sri Rajni Kant exercising the ~
powers under sec. 33 of the Act had no jurisdiction to grant time to the
appellant for making deposit or to further extend the time to enable
him to deposit balance of auction price by February 28, 1970. Lastly
G
the High Court held that Shri Rajni Kant had passed orders in viola-
tion of natural justice as no notice was issued to the respondents Sohan
Lal and Sunder Lal and no opportunity of hearing was afforded to
them. y
H The first question which falls for consideration is as to whether in
SURINDER SINGH, v. CENTRAL GOVT. [SINGH. J.] 953

the absence of the rules the Central Govt. had authority in law to A
provide for disposal of urban agricultural landily-auction sale. In order
to appreciate the problem it is necessary to refer to the relevant provi-
sions of the Act and the rules. The Act was enacted by the Parliament
to provide for the payment of compensa\ion and rehabilitation of the
displaced persons and to provide for matters connected therewith. A B
large number of persons had been displaced on account of the civil
disturbances which occurred due. to partition of the country .in 1947.
The Act provides for payment of compensation to the "displaced
persons" as defined by sec. 2(b) of the _Act. Section 4 provides for
making of an application by displaced persons for payment of compen-
sation. Section 8 lays down that a displaced person shall be paid com-
pensation as determined under sec. 7 "subject to any rules that may be c
made under this Act" in any one of the forms, namely:-

(a) in cash;

(b) in Govt. bonds;
D
(c) by sale to the displaced person of any property from the
compensation pool and setting off the purchase money
against the compensation payable to him;

(d) by any other mode of transfer to the displaced person
E
of any property from _the compensation pool and setting off
the valuation of the property against the

(e) transfer of shares or debentures in any company or
~- corporation;
r
F
(f) in such other form as may be prescribed.

Section 14 constitutes compensation pool which consists of
evacuee property including urban and rural agricultural land. Section
16 confers power on the Central Govt. to take such measures as it
considers necessary or expedient for the custody, management and
G
'·'disposal'.' of the compensation pool in order that it may be effectively
utilised in accordance with the provisions of the Act. Sec. 20 provides
that subject to any rules that may be made under the Act the Managing
officer or Managing Corporation may transfer any property by sale or
by lease to a displaced person or by allotment or in any other manner
as may be prescribed. Section 40 confers powe: on the Central H
954 SUPREME COURT REPORTS I1986] 3 S.C.R.
A Government to frame rules to carry out the purpose of the Act. Sub-
sec. (2) specifies the matters in respect of which rules may provide for
payment of compensation. Clause (j) provides for framing of rules
laying down procedure for transfer of property out of the compensation
pool and the manner of realisation of the sale proceeds or the adjust-
B ment of the value of the property transferred against the amount of
compensation. The Central Govt. in exercise of its powers under the
Act framed rules known as the "Displaced Persons (Compensation & ;.(_
Rehabilitation) Rules 1955. These rules were notified on May 21,
1955. The rules did not contain any express provision for the disposal
of urban agricultural property by sale. Since the Central Govt. had not

c
framed rules regulating the disposal by sale or otherwise of urban
agricultural land forming part of the compensation pool, it issued press ·
notes and memorandum in 1957 & 1958 containing exeuctive direc-
1
tions laying down principles and procedure for the transfer of urban
agricultural land to displaced persons. According to these directions
the eva~uee urban agricultural land was to be disposed of in the same
D manner as other urban evacuee property. These directions accordingly
authorised disposal of the urban agricultural property by auction sale
in case the value of the property was more than Rs.10,000. The auction
sale of the plot in dispute on August 24, 1959 was held in accordance
with the aforesaid directions issued by the Central Govt.

The High Court has held ·that the disposal of property forming
E
part of the compensation pool was "subject'' to the rules framed as
contemplated by ss. 8 and 40 of the Act and since no rules had been
framed by the Central Government with regard to the disposal of the
urban agricultural property forming part of the compensation pool,
the authority constituted under the Act had no jurisdiction to dispose
F of urban agricultural property by auction sale. Unless rules were
framed as contemplated by the Act, accor~ng to the High Court the
Central Govt. had no authority in law to issue executive directions for
the sale and disposal of urban agricultural property. This view was
taken, placing reliance on an earlier decision of a Devision Bench of
that Court in "Bishan Singh v. The Central Govt. & Ors.", 1961 (63)
Punjab Law Reporter P. 75. The Division Bench in Bishan's case. took
G
the view that since the disposal of the compensation pool property was
subject to the rules that may be made, and as no rules had been framed,
the Central Govt. had no authority in law to issue administrative direc-
tions providing for the transfer of the urban agricultural land by '
auction sale. In our opinion the view taken by the High Court is in-
H correct. Where a statute confers powers on an authority to do certain
SURINDER SINGH v. CENTRAL GOVT. [SINGH, J.] . 955

acts or exercise power in respect of certain matters, subject to rules, A
the exercise of power conferred by the statute does not depend on the
existence of Rules unless the statute expressly provides for the ·same.
In other words framing of the rules is not condition precedent to the
exercise of the power expressly and·unconditionaily conferred by the
statute. The expression "subject to the Rules only means, in accor- B
dance with the rules, if any. If rules are framed, the powers so con-
ferred on authority could be exercised in accordance with these rules.
But if no rules are framed there is no void and the authority is not
precluded from exercising the power conferred by the statute. In "T.
••••w·/ Cajee v. U. Jormanik Siem & Anr. ", I 1961'] 1 S.C.R. 750 the Supreme
- ! Court reversed the order. of the High Court whereby the order o1
District Council removing Siem, was quashed by: the High Court on c
the ground that the District Council had not framed any rules for the
exercise of its powers as contemplated by para 3(1) (g) of 6th Schedule
· to the Constitution. Tull High Court had taken the view that until a
law as contemplated by para 3(1) (g) was made there could be no
question of exercise of power of appointment of a Chief or Siem or D
removal either. Setting aside the order of the High Court, a Consti-
tution Bench of this Court held that'the administration of the Distri'ct
including the appointment or removal of Siem could not come to a
stop till regulations under para 3(1) (g) were framed. The view taken
by the High Court that there could be no appointment or removal by
the District Council without framing of the Regulation was set aside. E
Similar view was taken' by this Court in B.N. Nagarajan & Ors. v.
State of Mysore & Ors., [1966] 3 S.C.R. 682, Mysore State Road
Transport Corporation v. Gopinath, [1968] l S.C.R. 767. In U.P. State
Electricity Board v. City Board Mussoorie & Ors., [1985] 2 S.C.R. 815
validity of fixation of Grid Tarrif was under-challenge. Section 46 of the
Electricity (Supply) Act, 1948 provide that tariff known as the Grid Tariff F
shall be fixed from time to time in accordance with any regulations
made in that behalf. Section 79 ofcthe Act conferred power on the
Electricity Board to frame regulations. The contention that Grid
Tariff as contemplated by sec. 46 of the Electricity '(Supply) Act could
not be fixed in the absence of any regulations laying down for fixation·
of tariff, and that the .notification fixing tariff in the absence of such G
Regulations was illegal, was rejected and this Court observed-

"It is true that sec. 79(h) of the Act authorises the Electricity
. Board to make Regula'tions laying down the principles
governing the fixing of Grid Tariffs. Buts. 46(1) of the Act
does not say that no Grid Tariff can be fixed until such H
956 SUPREME COURT REPORTS [1986] 3 S.C.R.

A regulations are made. It only provides that the Grid Tariff ~
shall be in accordance with any Regulations and nothing
more. We are of the view that the framing of regulations
under sec. 79(h) of the Act cannot be a condition precedent
for fixing Grid Tariff."
B
As noted earlier ss. 8 and 20 of the Act provide for payment of
compensation to displaced persons in any of the forms as specified :"(
including by sale to the displaced persons of any property from the
compensation pool and setting off the purchase money against the
compensation payable to him. Sec. 16 confers power on the Central '"'f p
Govt. to take measures which it rµay consider necessary for the
c custody, management and disposal of the compensation pool property.
The Central Govt. had therefore ample powers to take steps for dis-
posal of pool property by auction sale and for that purpose it had
authority to issue administrative directions. Sec. 40(2) (j) provides for r·
framing of rules prescribing procedure for the transfer of property out
D of the compensation pool and the adjustment of the value of the pro-
perty so transferred against the amount of compensation. Neither ss.
8, 16, 20 or sec. 40 lays down that payment of compensation by sale of
the pool property to a displaced person snail not be done unless rules
are framed. These provisions confer power on the Central Govern-
ment and the authorities constituted under the Act to pay compensa- ),_
E tion to displaced persons by sale, or allotment of pool property to
them in accordance with rules, if any. Framing of rules regulating the
mode or manner of disposal of urban agricultural property by sale to a
displaced person is not a condition precedent for the exercise of power
by the authorities concerned under ss. 8, 16 and 20 of the Act. If the
legislative intent was that until and unless rules were franied power
conferred on the authority under ss. 8, 16 and 20 could.not be exer-
t
F
cised, that intent could have been made clear by using the expressing
"except in accordance with the rules framed" a displaced person shall j
not be paid compensation by sale of pool property. In the absence of
any such provision the framing of rules, could not be a condition
precedent for the exercise of power.
G
The Central Govt. had ample jurisdiction to issue administrative
directions regulating the payment of compensation to the displaced
persons by sale of the urban agricultural property. The view taken by ...-
the High Court in Bishan Singh's case (supra) is not sustainable. The
High Court was therefore in error in hol,ding that the auction sale held
H in appellant's favour on August 24, 1959 was illegal and void.
SURINDERSINGH v. CENTRAL GOVT. [SINGH,J.) 957

The second question relates to the validity of the order of Shri A
Rajni Kant the officer to whom power under s. 33 was delegated,
extending time to enable the appellant to deposit the auction sale
money. Shri Rajni Kant by his order dated 6.2.70 exercising the
delegated powers of the Central Govt. under sec. 33 of the Act set
aside the order cancelling the auction sale held in August 1959 and
B
permitted the appellant to deposit the balance of the purchase money
within fifteen days from the date of the order with a default clause that
on his failure his petition would stand dismissed. In accordance with
that order appellant was entitled to deposiit the money till February
21, 1970. It appears that on appellant's request the office prepared a
challan which was valid up to February 20,.1970. The.appellant went .to
the State Bank on February 20, 1970 .to make the deposit but due to c
rush he could not make the depcsit. On his application Shri Rajni Kant
extended thetime permitting the deposit by 28.2.1970 as a result of
which a fresh challan was prepared which was valid up to 28.2.1970
and within that period appellant deposited the balance purchase
money. The subsequent order of Shri Rajni Kant was challenged by
the respondents and the High Court has quashed that order, although D
that order was not before the High Court as none of the parties filed
the same. The respondents who had challenged the 'order of Shri Rajni
Kant should have filed a copy of the order. In the absence of the order
under challenge the High Court could not quash the same. Normally
whenever an order of Govt. or some authonty is impugned before the
High Court un.der Art. 226 of the Constitution, the copy of the order E
must be produced before it. In the absence of the impugned order it
would not be possible to ascertain the reasons which may have im-
pelled the authority·to pass the order. It is therefore improper to quash
an order which is not produced b.efore the High Court in a proceeding
under Art. 226 of the Constitution. The order of the High Court could
be set aside for this reason, but we think it necessary to consider the F
merits also.

Sec. 33 reads as under:

"Certain residuary powers of Central Govt.-
The Central Govt. may at any time callfortherecordof G
any proceeding under this Act and may pass such order in
relation thereto ~sin its opinion the circumstances of the case
require and as is not inconsistent with any of the provisions
contained in this Act or the rules made thereunder."
H
The power conferred upon the Central Govt. under this provi-
958 SUPREME COURT REPORTS 11986] 3 S.C.R.

A sion is a residuary power in nature as the title of the section itself
indicates. By enacting this section Parliament has conferred wide
powers on the Central Govt. to call for the record of any case and to
pass any order which it may think fit in the circumstances of the case.
· The only limitation on exercise of this power is that the Central Govt.
B shall not pass any order which may be inconsistent with any of the
provisions of the Act and the rules made thereunder. Therefore the
Central Govt. or the delegated authority has power to set aside any
order of the subordinate authorities, or to issue directions which it may
consider necessary on the facts of a case subject to the aforesaid rider.
This power is intended to be used to do justice and to mitigate hard-
ship to a party unriddled by technicalities. Sri Rajni Kant while exer-
c cising powers of the Central Govt. under sec. 33 of the Act had ample
jurisdiction to set aside the orders of the subordinate authorities
cancelling the auction held 01' August 24, 1959 and to permit the
appellant to deposit the balance amount of the purchase money and he
further had jurisdiction to extend the time initially granted by him.
Extension of time to enable the appellant to deposit the money did not
D
amount to review of the earlier order dated 6.2. 70. In our opinion the
High Court has committed error in holding that extension of time
amounted to review of the order dt. 6.2.1970. The default clause in the
initial order dt. 6.2.1970 was intended to ensure compliance of the
order. It did not mean that on expiry of the stipulated period Sri Rajni
Kant had no power to extend the period or to pass another order. The
E
purpose and object of such orders was considered by this Court in
Mahanth Ram Das v. Ganga Das 11961] 3 S.C.R. 763 where the High
Court, had granted time to the appellant for payment of deficit court-
fee with a condition that in default the appeal shall stand dismissed.
The appellant made an application for extension of time but the High
Court rejected the application on the ground that grant of time would
F
amount the review of earlier order. This Court while setting aside the
High Court's order, observed:

"Such procedural orders though peremptory (conditional
decrees apart) are, in essence, in terrorem, so that. dilatory
litigants might put themselves in order and avoid delay.
G
They do not, however, completely stop a Court from taking
note of events and circumstances which happen within the
tiine fixed."

This Court further held that the court was not powerless to deal
H with events which may have taken place subsequently and the court
SURINDER SINGH v. CENTRAL GOVT. !SINGH, J.J 959

A
has power to mould its practice to meet a situation. In the instant case,
the Central Govt. has very wide powers and it could mould its practice
in order to mitigate hardship which may be caused to a party in the
circumstances of a case and for that purpose it may grant or extend
time as it may consider fit in the circumstances of a case having regard
to subsequent events. Such orders do not amount to review. Sri Rajni B
Kant had no doubt passed a peremptory order but nonetheless he had
jurisdiction to take into account subsequent events and to enlarge time
granted to the appellant for making the deposit as that order.was not
inconsistent with any provision of the Act or Rules. In our opinion the
High Court committed an error in holding that by granting time Sri
Rajni Kant had reviewed his earlier order.
c
The High Court has further held th,at Sri Rajni Kant had acted in
violation of principles of natural justice in passing orders in appellant's
favour as no notice or opportunity of hearing was afforded to respon-
dents Sohan Lal and Sunder Lal. There is no dispute that after cancel-
lation of the auction sale held in appellant's favour, the property-in D
dispute was again put to auction sale on January 17, 1969 and at that
auction sale Sohan Lal and Sunder Lal respondents were the highest
bidders. Their bid was provisionally accepted and in pursuance thereof
they deposited one-fifth of the auction sale amount. If the Central
Govt. or any other authority exercising power under sec. 33 of the Act
were to set aside the order cancelling the auction sale held in appel- E
lant'~ favour and if he was permitted to deposit the remaining amount
of the purchase money the property would be transferred to him and in
that event Sohan Lal and Sunder Lal who had also made the highest
bid and made the initial deposit would suffer prejudice as they would
not be entitled to the property in dispute. In these circumstances the
respondents were interested in supporting the order of cancellation of F
the auction sale made in appellant's favour and they had sufficient
interest in proceedings taken under sec. 33 of the Act. We therefore
agree with the High Court that in all fairness, respondents should have
been afforded opportunity of hearing to the respondents while exercis-
ing power under sec. 33 of the Act.
G
Learned counsel for the appellant urged that the respondents
being the highest bidders at the subsequent auction sale had no right in
the property and as such they were not entitled to any opportunity of
hearing before the Central Govt. He placed ·reliance on a decision of
this Court in Bombay Salt and Chemical v. Johnson & Ors., AIR 1958
SC 289. We have considered the said decision, where in this Court has H
960 SUPREME COURT REPORTS 11986] 3 S.C.R.

A taken the view that the highest bidder at an auction sale does not get
any right or interest in the property till the auction sale is approved,
confirmed and the sale deed is executed in his favour. The respondents
even though they were the highest bidders at the subsequent auction
sale do not have any right or interest in the 'property' in dispute. The
question is however not whether they have any 'right or interest' in the
a property but whether they would be prejudicially affected. They
would certainly be affected, adversely if the appellant get relief in
proceedings under sec. 33 of the Act in respect of the said property.
Respondents have been in possession of"the property since long and
further more on the basis of their highest bid made at the subsequent
sale they have sufficient interest in the matter to contest the appel-
c lant's petition made under sec. 33 of the Act. We are therefore in
agreement with the High Court that respondents should have been
afforded opportunity of hearing before any order on the appellant's
petition was passed. Since no such opportunity was afforded, the High
Court was justified in quashing the orders of Sri Rajni Kant. We
accordingly uphold the High Court's Order to that extent.
D
W~ therefore allow the appeal partly and modify the order of the
High Court to the extent indicated hereinabove. The Central Govern-
ment or the authority exercising its power under sec. 33 of the Act is
directed to consider the appellant's petition afresh in accordance with
law after giving notice and affording opportunity of hearing to Sohan
E Lal and Sunder Lal, respondents. In these circumstances of the case
there will be no order as to costs.

A.P.J. Appeal allowed in part.