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Issues Involved:
1. Legality of Secretariat Order No. 2/3289 dated October 1, 1948. 2. Jurisdiction of Civil Courts to adjudicate on the matter. 3. Application of the concept of "act of State." 4. Rights and powers of the Nawab of Junagadh and the subsequent administration by the Government of India. Detailed Analysis: Issue 1: Legality of Secretariat Order No. 2/3289 dated October 1, 1948 The respondent filed a suit for a declaration that the Secretariat Order No. 2/3289 dated October 1, 1948, was "illegal, unjust and against all canons of natural justice." The order, issued by the Administrator of Junagadh, resumed a property that was sold to the respondent, citing that the original donee, Abu Panch, had no right to sell the property. The Civil Judge and the High Court both decreed in favor of the respondent, declaring the order illegal and inoperative. Issue 2: Jurisdiction of Civil Courts to adjudicate on the matter The State of Saurashtra argued that the action of the Administrator was not justiciable in Civil Courts, invoking Section 5 of the Extra-Provincial Jurisdiction Act and Section 4(2) of Ordinance No. 72 of 1949. However, the High Court of Saurashtra rejected this argument, stating that the jurisdiction of the Courts was not barred by these provisions. Issue 3: Application of the concept of "act of State" The State of Saurashtra contended that the action of the Administrator was an "act of State" performed on behalf of the Government of India and thus not justiciable in Municipal Courts. The term "act of State" was elaborated upon, noting its various meanings and applications. The judgment clarified that an act of State involves a sovereign act against an alien outside the State, which is neither grounded in law nor pretends to be so. The Court concluded that the act of assuming administration of Junagadh by the Dominion of India was an act of State, and the action of the Administrator was taken before the act of State was over. Therefore, the Administrator's actions were not subject to judicial review. Issue 4: Rights and powers of the Nawab of Junagadh and the subsequent administration by the Government of India The Nawab of Junagadh had not acceded to the new Dominion of India and left the country, resulting in a unique situation for Junagadh. The Government of India took over the administration at the request of the Nawab's Council, which was supported by the people of Junagadh. The Court noted that during this period, the people of Junagadh were considered aliens, and the actions taken by the Dominion were acts of State. The Court further stated that the respondent failed to prove that the Dominion had expressly or tacitly recognized the old rights under the Nawab's rule. Conclusion: The Supreme Court allowed the appeal, concluding that the action of the Administrator was an act of State and thus not justiciable in Municipal Courts. The respondent's suit was dismissed with costs throughout. The judgment emphasized that the actions taken by the Government of India during the period of assuming administration of Junagadh were sovereign acts, and any inquiry into the legality or justice of these actions was beyond the jurisdiction of Municipal Courts.
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