THE FINANCIAL COMMISSIONER (TAXATION) PUNJAB AND ORS.versusHARBHAJAN SINGH

                                                                                     I
                                                                                    -.

A              THE FINANCIAL COMMISSIONER (TAXATION)
                          PUNJAB AND ORS.
                                         v.
                              HARBHAJAN SINGH

                                 MARCH 22, 1996
B
                 (K. RAMASWAMY AND G.B. PATTANAIK, JJ.]

         'Displaced Perso11s (Compensation and Rehabilitation) Act, 1954.

C      . S.33-f'ower of Financial Commissioner (Taxation) to revise the order
  of Settlement Office1-Settlement Officer granting assignment to respondent
  a11d later setting aside the same on the ground of fraud-111 revisio11 filed by
  respondellt, Fi11ancial Commissioner (Taxatio11) upholding the cancella-
  tio11-High Cowt setting aside the order holding that Settlement Officer had
  110 jurisdiction to sit over the order as appellate authority-Held, though
D Settleme11t Officer could 11ot sit over his order as Chief Settlement Commis-          '
  sio11er, the Fi11ai1cial Commissioner (Taxatio11) as a delegate of Central
  Govemme11t has power to revise any order after calling for the relevant record
  and has got the power to con·ect the saine in his revisional jurisdiction-High
  Court not justified in quashing the orders.
E
            Guiab Ajwa11i & Ors. v. Saraswati Bai & Ors., [1977) 3 SCC 581,
    referred to.

            CIVIL .APPELLATE JURISDICTION : Civil Appeal No. 6905 of
    1996.
F
         From the Judgment and Order dated 12.1.89 of the Punjab &
    Haryana High Court in L.P.A. No. 526 of 1982 D.B.

            · Manoj Swarup and Girish Chandra for the Appellants.

G           R.P. Wadhwani for the Respondents.

            The following Order of the Court was delivered :

            Leave granted.

H           We have heard learned counsel on both the sides.
                                      812
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                         FINANCIAL COMMISSIONER (TAXATION) PUNJAB'· HARBHAJAN SINGH        813

                          This appe~l relate~ to the grant of 11 · Kanals 7 marlas of Ian\! in A
                                                                              0




                    revenue estate of Karbara in Ludhiana District. The respondent and his
                    brother Jawahar Singh, s/o Gurdit Singh being displaced persons; his
                    brother had applied for· transfer of 7 kanals 15 marlas. It was accordingly
                    granted to him and it became fi~al by proceedings d~ted 'August 17, 1966.
'·                  Thereafter, in the collusion with the revenue offici~ls the respondent got
                    his name mutated in the. records .with regard to .the l~nd in the ye~r 1967 B
                    and asked for assignm~nt of the s'ame under the Di~placed.Persons (Com-
                    pensation and R~habilitation) Act, 1954 (for ~h~rt, ·the ;Act'). One Mr. j.s.
                    Quami, Seit\ement Office; gr;nted asslgiiinent to the. respolldent on
                    Augusi 29, 1969:' Thereafter:,"when it'~as 'noticed that 'the mutation was
                    obtained. by phiying' fraud, the self-same officer as Settlement Commis- C
                    sioner, by proceedings ilated i6:9.1971,. set aside the order. It came to be
                    challenged by filing of areVision under Se~tion 33 .of the Act:'The Financial
                    Commissioner (Taxation)', Government of Punjab upheld the cancellation
                    by his proceedings dated November 25, 1971.. When. the .respondent filed
                    the writ petition, the learned sing!~ Judge by order dated January 12, 1989, D
                    dismissed the. \vrit petition. The Division Bench by judgment and order
                    dated January 12, 1989 in LPA No. 526/82 has set aside the order on the
                    finding that J.S: Qaumi having exeri:ised the power as Settlement Officer
     'f             has no jurisdiction. to sit over the same order as appellate authority as Chief
                    Settlement Commissioner. Therefore, the .order .is vitiated by error of law.
                                                                                                 E
                         The question is : whether the order passed by J.S. Qaumi as Settle-
                    ment Officer could be corrected by the Financial Commissioner (Taxation)
                    under Section 33 of the Act ? Section 33 reads as under :

                            "33. The Central Government may at any time call for the record      F
                            of any proceeding under this Act and· may pass such order in
                            relation thereto as in its opinion the circumstances of the. case
                            re4uire and as is not inconsistent with ~y of the provIS1ons
                            contained in this Act or the rules made therennder."

                          A reading thereof would clearly indicate that the Financial Commis- G
                    sioner (Taxation) as a delegate of the Centra!Government has power to
     )i
                    revise any. order after calling for record in relation thereto· and if in his
                    opinion the circumstances of the case require and the order passed is not
                    inconsistent with the provisions of the Act and rules made thereunder, he
                    has got power to correct the sam.e. It is true, as rightly contend.ed by the H
    814                    SUPREME COURT REPORTS                  (1996]3 S.C.R.

A   learned counsel for the respondent, that J.S. Qaumi having granted assign-
    ment as Settlement Officer, could not sit over his order as Chief Settlement
  . Commissioner. This is the settled legal position and needs no reiteration.
    This Court in Guiab Ajwani & Ors. v. Saraswati Bai & Ors., (1977) 3 SCC
    581 had laid the law. But the question is not resolved with the above finding
    alone. As stated earlier, the Financial Commissioner {Taxation) as a
B delegate of the Central Government has been invested with the power
    under Section 33 to revise any orders. All the authorities have held that
    after his brother J awhar Singh had been granted' the same assignment as
    granted to them, the respondent in collusion with lower level revenue
    officials had played fraud and obtained another assignment. The Commis-
C sioner under Section 33, therefore, has power to correct the same in his
    revisional jurisdiction though it was brought to his notice by way of revision
    by the respondent himself treating it to be a suo motu review. Under these
    circumstances, the High Court was not justified in quashing the orders.

             The appeal is accordingly allowed. The order of the Division bench
D is set aside and that of the single Judge and the authorities upheld. No
    costs.

    R.P.l                                                        Appeal allowed.