Central

Section 18A of The Enemy Property Act, 1968

Income not liable to be returned.

1 [18A. Income not liable to be returned.—Any income received in respect of the enemy property by the Custodian shall not, notwithstanding that such property had been transferred by way of sale under section 8A or section 18, as the case may be, to any other person, be returned or liable to be returned to such person or any other person.]

Summary

Any income that the Custodian has received from an enemy property will not be returned to anyone.
This rule applies even if the underlying enemy property has been sold or transferred to another person.
The rule holds true regardless of whether the transfer was a sale under Section 8A or a transfer of mistaken property back to an owner under Section 18.
No person, whether the buyer, the original owner, or any other party, has a legal right to claim or receive that accumulated income from the Custodian.

Practical examples

1In June 1978, the Custodian sold an enemy-owned shopping plaza under Section 8A to a developer named Rajesh Mehta for 500,000 rupees. Before the sale, the plaza had generated 50,000 rupees in rental income, which the Custodian had collected. Under Section 18A, Rajesh cannot claim this 50,000 rupees of pre-sale rental income, as the Custodian is not liable to return it to him or anyone else.

2In November 1979, the Central Government determined under Section 18 that a tea estate valued at 300,000 rupees was wrongly vested and ordered its transfer back to its original owner, Anita Sen. While the estate was vested, the Custodian collected 30,000 rupees from the sale of tea leaves. Under Section 18A, Anita is entitled to get her estate back, but she has no legal right to claim the 30,000 rupees of income collected by the Custodian during the vesting period.

FAQ

1. Who is protected by Section 18A of The Enemy Property Act, 1968, from claims regarding accumulated property income?

The Custodian is protected, as the provision specifies that the income received by the Custodian is not liable to be returned to any person.

Test yourself

1.Under Section 18A of The Enemy Property Act, 1968, what is the status of income received by the Custodian from an enemy property that is subsequently sold to a buyer under Section 8A?

2.Under Section 18A of The Enemy Property Act, 1968, if the Central Government orders the return of a wrongly vested property to its original owner under Section 18, what happens to the income collected by the Custodian during the vesting period?

3.Under Section 18A of The Enemy Property Act, 1968, which of the following transactions involving enemy property is explicitly mentioned as not triggering a liability to return accumulated income?

4.Under Section 18A of The Enemy Property Act, 1968, who has a valid legal claim to demand the return of income received by the Custodian in respect of enemy property once that property is transferred?

18PreviousSection 18 Transfer of property vested as enemy property in certain cases.18BNextSection 18B Exclusion of jurisdiction of civil courts.

←Section 18 Section 18B→