THE STATE OF SAURASHTRA vs MEMON HAJI ISMAIL HAJI

The Supreme Court held that the act of resumption of property by the Administrator of Junagadh was an act of State, not justiciable in municipal courts. The court found that the resumption occurred before the formal annexation of Junagadh by the Government of India, thus the Administrator's actions were sovereign acts performed on behalf of the Dominion. The court affirmed the lower courts' decisions, emphasizing that the essence of an act of State is the arbitrary exercise of sovereign power beyond municipal law, referencing the Indian Independence Act of 1947 and relevant case law.