It is clear from a study of the material placed before the Court that the situation underwent a
change with the advent of the British as sovereign of that part of the country in place of the
Marathas. The British found the Portuguese in occupation of the villages and exercising full and
exclusive administrative authority over them. They accepted the situation as they found it and left
the Portuguese in occupation of, and in exercise of exclusive authority over the villages. The
Portuguese held themselves out as sovereign over the villages. The British did not, as successors
of the Marathas, themselves claim sovereignty, nor did they accord express recognition of
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Portuguese sovereignty, over them. The exclusive authority of the Portuguese over the villages
was never brought in question. Thus Portuguese sovereignty over the villages was recognized by
the British in fact and by implication and was subsequently tacitly recognized by India. As a
consequence the villages comprised in the Maratha grant acquired the character of Portuguese
enclaves within Indian territory.