Law: Displaced Persons (Compensation and Rehabilitation) Act, 1958

Section: 14, 16, 9, 7(b) , 10

Law: Civil Procedure Code (V of 1908)

Section: 65

(a) Displaced Persons (Compensation and Rehabilitation) Act (XXVIII of 1958) Sched., para. 14 read with S. 16 and Settle ment Scheme No. VI, para. 9, condition 7(b) - Evacuee property-Auction - Earnest money-Auction purchaser, instead of depositing earnest money in cash, as required under rule, depositing compensation books in lieu thereof-Auction Committee accepting compensation books in lieu of cash amount-Conditions of auction making no provision that in case of non-deposit of earnest money In cash such purchaser's bid would be void Condition, held, in circumstance, merely directory and not man datory-Purchaser cannot suffer for failure of auction committee to Insist on strict observance of condition. The language of the condition No. 716) shows that it was meant to be a directory one, because there is no further condition or provision that an omission to comply with it would render the auction a nullity. It is now well established that in order a particular provision may be mandatory, it must clearly provide the legal consequences of its non-compliance. Condition No. 7(b) of the conditions of the auction as were laid down by the Chief Settlement Commissioner under paragraph 9 of the Settlement Scheme No. VI reads as :- Every intending bidder, if he is a non-claimant displaced person, local or a claimant without a Compensation Book, he shall deposit with the Auction Committee Rs. 1,000.00 as earnest money in cash. Cheques will not be accepted. It does not provide that if the condition was not satisfied it will entail a consequence of rendering the bid in favour of the highest bidder void. Respondent did not deposit Rs. 1,000.00 and instead offered the compensation books which, it is stated were of much higher value. If the Auction Committee had refused to accept, there would have been no problem for respondent to have deposited Rs. 1,000.00 in cash. The respondent cannot be made to suffer for the failure of the Auction Committee to insist on the strict observance of Condi tion No. 7. Maxwell on Interpretation of Statutes, 11th Edn., p. 364 ref. (b) Displaced Persons (Compensation and Rehabilitation) Act (XXVIII of 1958) Sched., para. 14 read with…