SURINDER SINGH vs CENTRAL GOVERNMENT & ORS.

The Supreme Court held that the auction sale of urban agricultural property under the Displaced Persons (Compensation and Rehabilitation) Act, 1954 must comply with the rules framed under Sections 8 and 40 of the Act. The Court found that since no rules were established for such sales, the Central Government's executive directions were unlawful, rendering the auction sale on August 24, 1959 illegal. Consequently, the Court upheld the Division Bench's decision to quash the orders of the delegated authority and directed the finalization of the auction sale in favor of the respondents.