Supreme Court of India · 1957-04-30
UNION OF INDIA vs CHAMAN LAL LOONA
- Citation / case number
- SC 1954/90281
- Court
- Supreme Court of India
- Petitioner
- UNION OF INDIA
- Respondent
- CHAMAN LAL LOONA
- Author
- DAS, SUDHI RANJAN (),IMAM, SYED JAFFER,DAS, S.K.,MENON, P. GOVINDA,SARKAR, A.K.
- Bench
- DAS, SUDHI RANJAN (CJ),IMAM, SYED JAFFER,DAS, S.K.,MENON, P. GOVINDA,SARKAR, A.K.
Judgment text excerpt
The Supreme Court clarified the criteria for determining if a contract made on behalf of the Governor-General in Council before the partition of India falls under Article 8(1) of the Indian Independence (Rights, Property and Liabilities) Order, 1947. The Court held that such a contract is deemed for the purposes of Pakistan if it would have been valid on August 15, 1947, or if Pakistan had existed at the time of the contract. The ruling emphasized that the nature of the consideration does not affect the applicability of the Article, and the Union of India cannot be held liable for contracts exclusively for the purposes of Pakistan, as established in Union of India v. Chinu Bhai Jeshing Bhai, I.L.R. 1953 Bom. 117, and disapproving Union of India v. Loke Nath, A.I.R. 1952 Cal. 140.