Professional Documents
Culture Documents
619
[HOUSE OF LOKDS.]
The Queen by Royal Warrant " granted " booty of war to the Secretary
of State tor India in Council " in trust" for the officers and men of certain
forces, to be distributed, by the Secretary of State or by any other person he
might appoint, according to certain scales and proportions; any doubts
arising to be determined finally by the Secretary of State or by such persons
to whom he might refer them unless the Queen should otherwise order.
An action having been brought against the Secretary of State for India in
Council by the appellant on behalf of himself and all other persons entitled
under the royal grant to share in the booty, alleging a distribution of part
and possession by the Secretary of State of the residue, and claiming an
account and distribution of the residue:—
Held, affirming the decision of the Court of Appeal, that the warrant did
not transfer the property, or create a trust enforceable by the High Court of
Justice; and that the Secretary of State being merely the agent of the Crown
to distribute the fund the action could not be maintained.
H. L. (E.) The allegations in the claim appear in the report of the case
1882 below (1) and in the judgment of Lord Selborne L.O. here.
10th of June 1864 found that certain persons of whom the appel
lant is one were entitled to share in this booty.
[LOKD SELBOHNE L.C.:—There is no allegation in the state
ment of claim of the plaintiff's right to share. How does he
claim ?]
As army chaplain, ranking as major. This objection was not
raised below. The Court of Equity has jurisdiction to entertain
such a claim: Brown v. Harris (2); The Tarragona (3); and
Sir Bichard Parker v. Barker (4) in 1769, where prize money
for the capture of a Spanish galleon ,was divided equally between
the British army, the British navy, and the forces of the East
India Company, and Lord Camden held that the troops of the
East India Company were entitled to a decree.
[LORD SELBOENE L.C.:—There does not appear to have been
a royal warrant. The parties may have made some agreement
inter se which a Court of Equity would enforce. I t does not seem
to have any bearing on the present case.]
Alexander v. Duke of Wellington (5) is not against the appellant,
for there the grant was not final as here. The Act which trans
ferred the Government of India to the Crown, 21 & 22 Vict. c. 106,
enacted by sects 65-68 that the liability to suits should be trans
ferred from the Company to the Secretary of State for India in
Council. If this booty had been in the hands of the Company
the Court would have compelled them to account and distribute.
Any seaman can sue in the Prize Court for prize. A mandamus
lies to order the Lords of the Treasury to pay an officer's pension,
the Lords having admitted the money to be in their hands: Beg. v.
Lords Commissioners of Treasury (6). The defendant here by
(1) 15 Ch. D. 1. extract (from the Record Office) of the
(2) 13 Ves. 552. bill and decree.
(3) 2 Dod. 487. (5) 2 Russ. & My. 35.
(4) Not reported; but cited from an (6) 4 A . & E . 286, 984.
VOL. VII.] AND PRIVY COUNCIL. 621
H. L. (B.) which can be enforced on the Equity side of Her Majesty's High
1882 Court of Justice.
KINLOOH With respect to the Secretary of State for India in Council, I
en re
SECRETARY *' ^y agree with what seems to have been the opinion of the
OP STATE Court of Appeal. He is here sued as a corporation. I t is not
FOR INDIA. . . .. , ,
the individual who now happens to fill that office who is sued,
L.C. ' but it is the officer bearing that description; a remarkable
and special description, derived evidently from s. 65 of 21 & 22
Vict. c. 106; which simply enacted that suits to establish rights,
which if that Act had not'been passed would have belonged to
the East India Company and for which they might have sued,
and again suits to establish claims, which if that Act had not
been passed would have been proper to be made in actions
at law or suits in equity against the East India Company,
might be brought by or against the Secretary of State for India
in Council. The enactment seems to proceed on the same
principle on which iu Banking Acts public officers are authorized
to sue and be sued as representing the persons really entitled or
liable. This is no doubt a very high public officer; and the
designation " in Council" is added, I suppose, in order that all
matters arising out of such suits may be considered not only by
himself individually, but by himself in his Council. Whatever the
reason for that may have been, the enactment is limited as I have
expressed i t ; and this is clearly not a suit brought against him as
representing the late East India Company, or which can by any
possibility be described as a suit which, if the Indian Government
Act had not been passed, might have been brought against the
East India Company. Therefore, so far there seems to be no
ground for suing the Secretary of State for India in Council in the
manner in which he is here sued.
I t is said, and I daresay rightly said, that for some other pur
poses, under particular Acts of Parliament which define those
purposes, he may be in like manner sued. But it has not been
alleged that any of those Acts of Parliament extend to the subject
matter of this action.
I think that goes a long way to shew that in reality the
power given by the Koyal Warrant has been misconceived, and
that the position of the Secretary of State for India in Council
VOL. Y1L] AND PKIVY COUNCIL. 623
under the Koyal Warrant has also been misconceived. Still it H. L. (E.)
would not be altogether satisfactory to proceed on that ground 1882
alone, (although it might be necessary to do so,) if, it really ap- KINLOOH
peared that the intention of the Crown, in the Order in Council S K O B ^ A B T
and the Warrant which passed from the Crown upon this subject, OP STATE
F 0 R NDIA
i • • i -
was to constitute the person who for the time being might fill
that office of state a trustee in the ordinary sense of the word, ° L.C. me '
liable to account in a Court of Equity to private persons. The
very fact of his not being described in the grant by his personal
name, and not being described as the Secretary of State, but as
" the Secretary of State for India in Council," and " for the time
being," the very fact that the grant is made in that form goes, in
my mind, not a small way to shew, that it could not have been
the intention of the Crown in these documents to constitute a
trust in the manner insisted upon. And when I look at the
documents themselves, that appears to me to be more and more
clear.
The first document, the Order in Council, does not contain any
grant at a l l ; but it recites the military operations by means of
which the booty was captured, and that the Queen " has signified
her gracious pleasure that the property and the proceeds thereof
shall be granted to and distributed amongst the forces concerned
in the operations above referred to, in such manner as may be
hereafter determined." Most assuredly that is not a grant,
although it is an announcement, from which the Crown was not
likely to depart, of an intention to make a grant. It further
recites that a proposal had been made for the consideration of the
Queen as to the manner of distribution and the persons to par
ticipate, which had been objected to by some of those persons who
thought that they had a moral right to participate in the booty
—that is to say, such a species of moral claim as could exist with
out an actual grant by the Crown, having regard to the course
usually pursued in similar cases. Then various claims advanced
by different officers to participate are also mentioned, claims which
of course could only be such as men might make upon the bounty
of the Crown in a matter of this kind, and not by any possibility
enforceable in any Court of Justice—such, for example, as the
claim which is expressed in one passage, where it is said that
624 HOUSE OF LOED8 [VOL. VII.
time H e r Majesty herself shall otherwise order, which power she H. L. (E.)
reserves to Herself. 1882
I do not at all follow what was said by t h a t very learned and KIKLOOH
able j u d g e , H a l l V.C., in which h e seems to have stated that if gE0BETAItY
t h e Court of Chancery, t h a t is to say t h e Chancery Division, OF STATE
. . . . . . ' F O B INDIA.
assumed the jurisdiction which it was asked to exercise, it might, —-
, A i ' i n i ' . - i / » i J j0r(1 Selbome,
in the course of taking the accounts and administering the iund uv.
(so I understand his Lordship to have meant) refer all questions
as to the distribution, or as to claims and demands on the pro
perty, to the Secretary of State, holding itself bound by his
decisions unless they should be afterwards reversed by the Queen ;
a sort of mixed jurisdiction which would comprise at once that
of the Equity side of the High Court of Justice, and that of the
Secretary of State for India in Council, as an arbiter without
appeal except to the Queen. All I can say is, that such a thing
has never yet been heard of, and I apprehend that on no possible
principle can it be established. The intention of the Crown, if
the Crown had this power (and by the Act of Parliament the
Crown had the power to direct as it should think fit, how this
distribution should be made), is plain: the intention was to exclude
any such extraneous interference; and in my humble judgment
the Crown has effectually done so.
Then what are the authorities ? I feel it almost unnecessary
to make any remarks upon them. All that I will say is this. In
Alexander v. Duke of Wellington (1) there was a claim between
Messrs. Alexander and Lord Hastings. The trustees, if I am so
to call them, had actually paid the money to Lord Hastings, or
had done what was the same thing, had paid it into Court in a
suit between himself and one of his creditors to be distributed
simply according to the private rights of the parties, between
Lord Hastings and his creditors. With that we have nothing to
do; but the question whether the fund could be put into trust in
this way and administered by the Court of Chancery was deter
mined upon appeal by Lord Brougham as Lord Chancellor, and
was distinctly determined by him upon the following footing.
Though the trustees had been directed to collect and get in
certain funds, and to prepare a scheme of distribution, which they
(1) 2 Russ. & My. 35.
VOL VIL 3 2U
628 HOUSE OF LORDS [VOL. VII.
H. L. (E.) had done, and though two subsequent warrants of the Crown had
1882 confirmed the distribution made by them, Lord Brougham dis-
KINLOOH tinctly held, that, in order to determine whether they were trustees
or n0
SEOKETAISY * * n s u c n a S 8 n 8 e a s *° introduce the jurisdiction of the
OF STATE Court of Chancery, the instrument making the grant, and nothing
else, was to be looked to, and that the subsequent acts could not
Lord Selborne, . . . , . . ~ n/~ii
LORD O'HAGAN : —
H. L. (E.) the time being " to whom the Sovereign delegates the exercise of
1882 a certain discretion, with careful reservation to herself of power
KINLOCH to regulate or overrule it, at her pleasure.
s RETARY There is no magic in the word "trust." In various circum-
OF STATE stances, it may represent many things, and the Secretary of State
— to whom a delegation was made for special and specified pur-
i0r
. ' poses, might well be described as a " trustee " for the Crown, as,
for the Crown, he was required to take on himself the distribution
of the property in question. But he was not constituted a "trus
t e e " for a cestui que trust entitled, according to the rules of
Equity, to ask for the administration of a fund.
As to the cases of Alexander v. The Duke of Wellington (1) and
Brown v. Harris (2), I shall only say that they seem to me to give
no sufficient support to the contention of the appellant.
Her Majesty has vested in her a certain fund, and it must get
out of her possession before a Court of Equity can deal with it.
She might, of her own motion and at her own discretion, have
disposed of it to trustees for the expressed purpose of division
amongst specified individuals; and in that case they might have
successfully sued for the enforcement of their rights. But the
Queen does no such thing. There is, as I have said, no evidence
of any transfer from her. She does no act to create rights so en
forceable. She employs the Court of Admiralty, under statutable
authority, to ascertain the classes of persons properly entitled to the
benefit of the fund, and the Judge of that Court, after due inquiry,
designates those classes. This being ascertained, it is further
necessary that amongst those classes there shall be a fair distribu
tion of their respective shares. Her Majesty cannot make such a
distribution, personally ; and she appoints her Secretary of State
for India that he may execute a duty which she cannot perform.
"What power was given to him, and under what limitations, the
warrant clearly shews. I t directs that " in case any doubt shall
arise in respect of the distribution of the booty or proceeds hereby
granted as aforesaid, or respecting any claim or demand on the
said booty or proceeds," the Secretary of State shall determine
i t ; and his judgment " shall be final and conclusive to all intents
and purposes, unless within three months after the receipt thereof
(].) 2 Rusa. & My. 35. (2) 13 Yes. 552.
VOL. VII] AND PRIVY COUNCIL. 631
LORD BLACKBUKN:—
fl. L. (E.) Council to give their advice, as she has, I think, full power to do.
1882 Now if this were a trust of that kind the Court of Chancery would
KINLOCH h&ve no power over i t ; the individuals who were to receive Her
„ "• Majesty's bounty would not have the relation of cestui que trust
OF STATE and trustee as between them and Her Majesty's agent; they
_ _ ' could not bring the matter into the Court of Chancery; they
M urn
' could bring it before the Secretary of State for India in Council,
subject to Her Majesty taking the opinion of the Judicial Com
mittee of the Privy Council upon any question of law, and subject
of course to such further inquiries as Her Majesty might think
fit to order. And that, I think, is a reasonable construction of
this grant, and is in fact what Her Majesty did.
I said that I was going to rest my judgment on a short point;
it is simply this: On the construction of this warrant, as I read it,
the Secretary of State for India in Council was made an agent of
the Queen, subject to Her Majesty's control and power, to pay
away the moneys when quite satisfied that the claims were, right,
but he was by no means made a trustee subject to the power
and control of the Court of Chancery.
LORD WATSON : —