DIVISIONAL FOREST OFFICER Vs. TATA FINLAY LIMITED

JUDGEMENT

(1.) The State of Kerala and the Divisional Forest Officers of two divisions are in appeal, by special leave, against the judgment and order of the High Court of Kerala at Ernakulam in O. P. No. 1156 of 1981 dated January 31, 1984. The High Court held that the Kerala Grants and Leases (Modification of Rights) Act, 1980 (for short 'the 1980 Act') was not applicable to the lands held by the respondents under lease and quashed the impugned demand notices issued by the appellants demanding seigniorage rates from the lessees for all the produce cut and removed from the demised lands, as per sanction given, including produce consumed inside the concession area by them.

(2.) The dispute centres round the validity of demand of seigniorage rates raised by the appellants in respect of cutting and removing eucalyptus trees grown and used by the respondents on the land held by them as lessee.

(3.) To make the controversy intelligible, it will be necessary to note the relevant facts.