KANPUR SUGAR WORKS LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) Kanpur Sugar Works Ltd. a public limited Company is engaged in the business of manufacturing sugar in village Marhowrah, District Saran, in the State of Bihar. Prior to 1956 it possessed a considerable zamindari property. Under a notification issued in exercise of the power under the Bihar land Reforms Act 30 of 1950 the entire zamindari vested in the State with effect from January 1, 1956. But by the provisions of the Act homestead lands and lands of the factory remained in the occupation of the Company. The Circle Officer commenced a rent assessment proceeding under the Bihar Land Reforms Act for determining the rent payable by the Company. The Company claimed to classify lands in its occupation under three heads: (i) 12 bighas 9 kathas 7 dhurs on which the factory buildings stood, and on that account assessable to rent under S. 7 of the Bihar Land Reforms Act, 1950; (ii) 50 bighas 3 kathas 13 dhurs of cultivable land under Khas cultivation of the Company liable to assessment of rent under S. 6 of the Act; and (iii) 71 bighas 2 kathas 12 dhurs as homestead land not liable to assessment under sub-s. (1) of S. 5 of the Act.

(2.) By order dated February 10, 1961 the Circle Officer fixed rent at the rate of Rs. 187-8-0 per acre in respect of 80 bighas 16 kathas 15 1/2 dhurs of land under S. 7 of the Act. The circle Officer rejected the contention of the Company that 71 bighas 2 kathas 12 dhurs of land on which there stood residential bungalows, quarters, garage, kitchens, clubs, dispensary, rest-house, outhouses, office buildings, tube-well and water tank, godown, cattle-shed, weighbridge house etc. was homestead and was on that account exempt from liability to pay rent. Appeal against that order was dismissed by the Collector of Saran by his order dated August 6, 1962.

(3.) The Company then moved a petition in the High Court of Patna for a writ quashing the order of the Circle Officer and the Collector fixing the rent under S. 7 of the Bihar Land Reforms Act, 1950, in respect of the land claimed to be homestead. The High Court rejected the petition. In the view of the High Court the expression "factory" could not mean merely the place where the machinery is installed and the process for the manufacture of sugar or distillation of liquor is carried on, but the whole area of land including the courtyard necessary for carrying on various operations. The High Court recorded the conclusion as follows: