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Issues:
1. Interpretation of provisions of Defence of India Act regarding compensation and appeal rights. 2. Validity of the restriction on appeal rights based on the amount of compensation awarded. 3. Jurisdiction of the High Court in appeals against awards of the Arbitrator under the Defence of India Act. Analysis: The case involved tenants of warehouses and vacant land requisitioned under the Defence of India Rules, 1939. The appellants claimed compensation for loss of earnings, damage to business, and removal costs, estimated at Rs. one lakh. The Arbitrator rejected the claim, leading to an appeal to the High Court. The State contended that the appeal was not maintainable under specific provisions of the Defence of India Act and relevant rules. The High Court upheld this contention, prompting the appellants to appeal to the Supreme Court. The Defence of India Act, 1939, provides for compensation and appeal rights in cases of requisition. Section 19 outlines the procedure for determining compensation and the right to appeal against an award of the Arbitrator. The Act restricts the appeal rights based on the amount of compensation awarded, as specified in rules framed under the Act. The second proviso to Rule 19 states that no appeal shall lie where the compensation awarded does not exceed a certain amount, in this case, Rs. 5,000. The legislative intent is clear that the right to appeal is contingent upon the amount of compensation awarded. The appellants argued that the restriction on appeal rights should apply only when some amount is awarded but is less than Rs. 5,000. However, the Supreme Court held that the restriction is not limited to cases where some amount is awarded but is less than the specified limit. The right to appeal is solely based on the amount of compensation awarded by the Arbitrator. Therefore, even if the claim is rejected entirely, the restriction on appeal rights still applies if the compensation awarded does not exceed Rs. 5,000. The Court emphasized that the right to appeal is statutory and must be strictly construed as per the provisions of the Act and rules. In conclusion, the Supreme Court affirmed the High Court's decision not to entertain the appeal due to the restriction on appeal rights based on the amount of compensation awarded. The appeal was dismissed, emphasizing that the right to appeal is exercisable only if the amount awarded exceeds Rs. 5,000. The judgment highlights the importance of adhering to statutory provisions and limitations on appeal rights in matters of compensation under the Defence of India Act.
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