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1996 MLD 1836

STATE LIFE INSURANCE CORPORATION OF PAKISTAN vs SARFRAZ MALIK and 3

Citation1996 MLD 1836
CourtLahore High Court
Judge(s)Sh. Abdul Manan
ResultPetitions dismissed

' This judgment will dispose of Writ Petitions Nos. 170-R, 194-R, 195-R, 196-R, 197-R, 266-R of 1984, 30- R, 31-R, 32-R, 33-R, 34-R, 35-R of 1987, 53/86, 54/86, 55/86 and 185-R of 1993 where common question of law and fact is involved.

2. These Constitutional petitions are directed against 'order dated 14-2-1984 of the Administrator (R.P.), Lahore, Division, maintaining the order dated 30-7-1983 of the Deputy Administrator (R.P.)

Lahore transferring certain portions of the disputed property in favour of respondents.

3. Briefly stated, the dispute is regarding Property No, S-19-R-68, known as Gyan Mansion, Shahrah- e-Quaid-e-Azam, Lahore, which was previously owned by Bharat Insurance Company Limited. This property has now been transferred to several persons/respondents in the writ petitions on the basis of their possession. This is vide order dated 30-7-1983 of the Deputy Settlement Commissioner/Deputy Administrator (R.P.) whereupon the petitioner M/s. State Life Insurance Corporation of Pakistan filed various revision petitions and the same were rejected by order dated 14-2-1984 of the Administrator (R.P.).

4. Learned counsel for the parties made oral submissions and also filed written 'arguments.

5. This main case of the petitioner was that the disputed Property No,S-19-R-68 originally belonged to Bharat Insurance Company Limited and was later on vested in Life Insurance Corporation of India and since latter insurance company was declared as enemy property, the disputed property cannot be treated as an evacuee property. Another plea vehemently raised was that life insurance business was nationalised and consequently, the property in question was taken-over by the petitioner-Corporation and all the assets and liabilities of Life Insurance Corporation of India came to vest in the petitioner's Corporation under section 15 of the Presidential Order 10 of 1972 known as Life Insurance (Nationalisation) Order, 1972. In this way it was argued that the disputed property is the property of the petitioner-Corporation and could not be transferred in favour of the respondents and, therefore, the impugned order be declared as without lawful authority and of no legal effect.

6. Learned counsel for the respondents has vehemently submitted that admittedly Property No,S- 19-R-68, disputed property, was previously owned by Bharat Insurance Company and there is no material whatsoever to show that its business or assets vested in the Life Insurance Corporation. It is, however, admitted that Life Insurance Corporation was declared by the Central Government as enemy property at the relevant time by S.R.O. 211-R-65, dated 18th September, 1965 issued under Rule 182 of the Defence of Pakistan Rules.

7. The issue as to whether the property was evacuee property or otherwise was under the serious considerations of the Settlement Authorities before transferring it to different respondents by the impugned orders. A letter dated 18-9-1979 Annexure D was addressed by the Deputy Settlement Commissioner, Lahore to the Vice-Chairman, West Pakistan Enemy Property Management Board, Islamabad, Rawalpindi and the same is as hereunder:- "With reference to this office Letter No,DSC-I/LHR/79/-291, dated 12-9-1979 on the subject cited above.

' The case of the above cited property is sub judice in my Court. One Iftikhar Ali and others have applied for the transfer of their respective portion in their possession. In support of their possession they have submitted certain copies of the documents which show that they are paying the rent to the Bharat Insurance Company, Shahra-e-Qauid-eAzam, Lahore being Enemy Property.

' In view of the above circumstances you are requested kindly to intimate whether or not the property in question is an evacuee property and that the same can be transferred to the applicants by this department. It is requested that a reply may please be sent to this office before 30-9-1979 the next date of hearing."

8. There is another letter from the office of Custodian of Enemy Property for Pakistan, dated 16th September, 1979 and the same is as hereunder:-- "From: Mr. Karrar Hussain Shah, Assistant Director (Policy).

To Mr. Muhammad Farid, Assistant to Chairman, and Deputy General Manager, Corporate Claims & Taxes, State Life Building No,2, 11th Floor, Wallance Road, P.O. Box No,5725, Karachi-2.

Subject: Property No,S-19-R-68, Bharat Insurance Co., Shahra-e- Ouaid-e-Azam, Lahore.

' Dear Sir, ' Please find enclosed a copy of Letter No,DSC-I/LHR/79/291, dated 12-9-1979 received from the Deputy Settlement Commissioner, Faridkot House, Lahore addressed to the defunct Enemy Property Management Board, Lahore on the subject cited above.

' In this connection it is stated that the Life Insurance Corporation of India with all its assets have already been transferred to State Life Insurance Corporation of Pakistan in consequence of nationalisation of life insurance business in Pakistan the matter under consideration may please be dealt with the Settlement Department directly as we have now no concern with it. Yours faithfully, (Sd.)

(Karrar Hussain Shah)

' Copy forwarded to the Deputy Settlement Commissioner, Centre-I, Faridkot House, Lahore with the request to take up the matter directly with State Life Insurance Corporation of Pakistan.

(Sd.)

(Karrar Hussain Shah)."

9. The issue was hotly contested before the Settlement Authorities which was not found in favour of the petitioner and thereafter the impugned order was passed in favour of the respondents. The Deputy Settlement Commissioner relied upon clauses (d) and (e) of subsection (2) of section 2 of the Pakistan (Administration of Evacuee Property) Act, 1957 and also section 2(3) which is as hereunder:-- "(2) 'evacuee' means any person-- whose business or undertaking in Pakistan, in the case of a corporation, has on account of the setting up of the Dominions of Pakistan and India, or on account of civil disturbances, or the fear of such disturbances, ceased to function, wholly or partially, or is being carried on by persons (whether duly empowered in this behalf by the corporation or its management or otherwise) whose authority to do so on or after the first day of March, 1947, has not been accepted or approved by the Custodian; or being a joint stock company, more than fifty per cent. Of the shares of which are held by persons who are evacuees.

' Subsection (3) of section 2 of the aforementioned Act is as under:-- "(3) 'evacuee property' means any property in which an evacuee has any right or interest (whether personally or as a trustee or a beneficiary or in any other capacity), and includes---

(a) his but does not include--- ' any property belonging to a joint stock company the registered office of which was situated, before the fifteenth day of August, 1947, in any place in the territories now comprising India and continues to be so situated after the said date;"

10. On the basis of elaborated interpretation the Deputy Administrator concluded that the property in dispute was an evacuee property and transferable in favour of the respondents. No material was placed before the said officers to show that the registered office of Bharat Insurance Company was situated in India before the 15th day of August, 1947 or continued to be so situated after the said date. This was a primary consideration which weighed with the Deputy Settlement Commissioner for transferring property in dispute in favour of various occupants who have been duly settled permanently.

11. According to the notification, dated 19th September, 1965 only Life Insurance Corporation was declared as enemy property and it cannot be said with certainty that the disputed property which admittedly belonged to Bharat Insurance Company was also the subject-matter of such a declaration.

12. The other plea of the learned counsel for the petitioner, that the case is covered under para. 15 of the Presidential Order 10 of 1972, can be examined in view of provisions contained in section 15 which is as under:-- "S.15. Transfer of assets and liabilities of existing insurers carrying on life insurance business.---(1)

All the assets and liabilities appertaining to the life insurance business in Pakistan of all insurers shall, on the appointed date stand transferred to, and vested in---

(a) the Corporation, if there be only one, and

(b) such of the Corporation where there are more than one, in such manner to such extent as the Central Government may specify in this behalf."

The provisions of section 15 are not attracted to the facts of the present case where the property was evacuee property as rightly held in the two impugned orders. Additionally, it is a case of the petitioner that in 1956 the life insurance business was nationalised by India and so was the case of Bharat Insurance Company. Para. 2 of the written submission by the petitioner is as follows:-- "That the Property No,S-19/R/68 known as Gyan Mansion, Mall Road, Lahore was previously owned by Bharat Insurance Corporation which continued its business of Insurance in Pakistan even after partition. It consists of commercial units, basements, residential portions, quarters and open sites.

' In 1956, the Life Insurance Business was nationalised by India and so was the case of Bharat Insurance Company. This company continued its business till 1965 when War broke out between Pakistan and India and under Rule 182 of the Defence of Pakistan Rules, 1965, the property was taken over by the Government of Pakistan enemy property and was given under the control of Custodian of Enemy Property, vide Notification SRO No,211-R-65, dated 18-9-1965."

13. If as admitted by the petitioner the business of Bharat Insurance Company was nationalised by the Indian Government it would not then fall within the purview of section 15 because in that case there was not such business to be taken over or vested as envisaged under subsection (1) of section 15 of the Life Insurance (Nationalisation) Order, 1972. The issue has been fully thrashed out and I do not find any legal infirmity in the impugned order.

' Resultantly, there is no merit in all these writ petitions which are dismissed, however, without any order as to costs.

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