Mahendra Pal vs State Of H.P. & Ors

3) Brief facts:

(a) Kutlehar was a small princely State in Kangra Hills having 16 Tapas (Tikas) as forests which were known as `Kutlehar Forests'. These forests were managed by the Raja of Kutlehar subject to the terms and conditions specified by the then Government. Such management continued generation after generation. The appellant was appointed as a Forest Officer in the capacity of Superintendent of Kutlehar Forests under Section 2(2) of the Forest Act by Notification dated 01.10.1958 issued by the then Government of Punjab before the formation of the State of Himachal Pradesh. The said forests were under the charge and management of the appellant and he was entitled to dispose of the forest produce such as resin, timber, bamboo, grass etc. in accordance with the working plans prepared by the Forest Department. As per the terms and conditions of the management, he was entitled to retain 3/4th share of the total income from the said 2 forests and 1/4th share of the gross income was payable to the Government. The entire expenditure on the management and exploitation of the forests were to be incurred by the appellant. In the year 1992, the State Legislative Assembly passed the Himachal Pradesh Kutlehar Forests (Acquisition of Management) Act, 1992 (hereinafter referred to as `the Act'). Pursuant to the provisions of Section 4 of the said Act, the management of these forests was taken over by the State Government. Challenging the constitutionality of the Act, the appellant filed Civil Writ Petition No. 707 of 1992 in the High Court whereby the High Court, by judgment dated 09.05.1994, upheld the constitutional validity of the aforesaid Act except Section 5.

(b) During the year 1995, when the management of the Kutlehar Forests was with the appellant, he offered 1,33,591 resin blazes to Divisional Manager, H.P. State Forest Corporation Ltd., Una (hereinafter referred to as 3 `the State Corporation')-respondent No. 3 herein, for resin tapping, but on 14.02.1995, the State Corporation took over the resin blazes so offered and invited tenders for undertaking the work of tapping. On 10.03.1995, the State of H.P. issued the notification and enforced the provisions of the Act w.e.f. 11.03.1995 and asked the appellant to hand over the management of the Kutlehar Forests. On 16.03.1995, the appellant filed Civil Writ Petition No. 127 of 1995 challenging the notification dated 10.03.1995 in the High Court. The High Court passed the interim order to the effect that the appellant would continue with the management of the forests.

(c) On 25.04.1995, the `Pricing Committee' of the State Corporation decided the prices of resin blazes @ Rs. 25/- per blaze for the season 1995. On 09.08.1995, the High Court dismissed the writ petition observing that the disputed questions of fact could not be gone into in exercise of extraordinary jurisdiction under Articles 4 226/227 of the Constitution of India and the appellant was given liberty to resort to appropriate proceedings before the appropriate forum. On 05.01.1996, the appellant filed a Special Leave Petition before this Court which became Civil Appeal No. 239 of 1996 and was dismissed by order dated 22.08.2000.

(e) By order dated 02.07.2002, the learned Single Judge of the High Court dismissed the Civil Suit No. 36 of 1998 stating that all rights, liabilities and obligations of the 5 appellant in relation to the grant or management under any contract entered into before the appointed day and properties and rights stood vested in the Government w.e.f. 11.03.1995. Questioning the said order, the appellant filed Original Side Appeal No. 13 of 2002 before the Division Bench of the High Court which was dismissed by the impugned order dated 12.08.2008. Aggrieved by the said order, the appellant preferred this appeal by way of special leave petition before this Court.

5) It is the categorical claim of the appellant that Section 4 of the Act does not take away the vested right of the appellant which had accrued to him before the appointed day, i.e., 11.03.1995. The appellant, who was still in the management of the Kutlehar Forests, offered 1,33,591 resin blazes to the Divisional Manager of the 6 State Corporation, respondent No. 3 herein, for resin tapping during 1995 vide his letter dated 03.02.1995. It was also highlighted that respondent No.3 took over the blazes so offered and invited tenders for undertaking the work of tapping on 14.02.1995 and the tenders were opened on 01.03.1995 at 2.30 p.m. Respondent No.3 acknowledged vide letter dated 22.03.1995 that the work on these blazes was in progress.

6) Before considering these factual aspects, it is useful to refer the earlier litigation and ultimate order passed by this Court between the same parties on 31.03.1999 in Civil Appeal No. 9495 of 1995. The erstwhile ruler, Raja Mahendra Pal approached the High Court for issuance of the command to the State Corporation by treating him equivalent to the Government of Himachal Pradesh with conferment of monetary gains which were permissible to the State Government on the basis of the decision of the Pricing Committee. The High Court granted the prayer 7 sought for by Raja Mahendra Pal. By the said judgment of the High Court, Raja Mahendra Pal was held to have been equated with the Government and entitled to the relief claimed by him as according to the High Court he was found to have been deprived of the right to life as envisaged by Article 21 of the Constitution of India. By way of issuance of writ of mandamus, Raja Mahendra Pal was held entitled to the interest on the delayed payment of royalty, damages with respect to illicit felling plus 100 % penalty for the illegally felled trees. He was further conferred with the grant of interest on interest and share in the levy of extension fee chargeable by the State from the Corporation under the terms of the agreement of the provisions of law applicable. The said judgment of the High Court had been assailed on various grounds before this Court in C.A. No. 9495 of 1995. By judgment dated 31.03.1999, the directions of the relief granted in favour of Raja Mahendra Pal have been set aside. However, certain 8 details/materials mentioned therein are relevant for disposal of the present appeal. It is seen that by Notification No. 4531-FT(CH-58/523 dated 1.10.1958 issued under Section 2(2) of the Act, Raja Mahendra Pal was appointed as a Forest Superintendent and the employees working under him in the aforesaid forest declared as Forest Officers with respect to Kutlehar Forest. As per the terms of his appointment, he was held entitled to retain 3/4th of the income derivable from the forest where 1/4th of the gross income was payable to the Government. The conditions explicitly provided:

In this way, the appellant made a claim for a sum of Rs.34,73,366/- to be payable by the State Corporation 1 towards the royalty of resin blazes relating to 1995 season.

XXXXXXXby defendants 1 and 2.

Nil. Cross-examination by defendants 1 and 2 adopted.

11) The appeal is allowed to this extent. There shall be no order as to costs.

OCTOBER 26, 2010.