STATE OF RAJASTHAN Vs. MOHAN LAL VYAS

JUDGEMENT

(1.) This is an appeal by special leave against the judgment dated 8 February, 1966 of the High Court of Rajasthan upholding the judgment and decree of the District judge, Jodhpur restraining the appellant State of Rajasthan from recovering any amount from the respondent under two agreements for plying buses or trucks on route or routes mentioned in the agreements. The High Court further upheld the judgment of the District Judge that the contracts granting monopoly rights to the respondent became void with the coming into force of the Constitution, and, therefore, the State Government had no right to demand or realise from the respondent any amount for plying the buses and trucks on the routes mentioned in the impugned contracts.

(2.) In the month of December, 1948, the respondent and the Government of the State of Jodhpur which subsequently on 7 April, 1949 merged with the State of Rajasthan entered into two agreements in respect of two bus routes. The first route was Nagaur-Role-Deh for 3 years from 1 December, 1948 to 30 November, 1951 and the second was for Kuchera-Khajwana route from 1 July, 1948 to 30 November, 1951. Under both the agreements the respondent was given the monopoly right to ply the buses on the routes mentioned. Under the first agreement the respondent was to pay to the State, Rs. 72,121/- for the period mentioned thereunder. For the second agreement the respondent was to pay Rs, 41,121/-, for the entire period. The several sums of money under both the agreements were payable by instalments. Upto 26 January, 1950 the respondent paid Rupees 51,000/- to the State. The respondent contended that on the Constitution coming into force on 26 January, 1950 the monopoly contracts between the respondent and the State became void and were unenforceable.

(3.) The State issued a demand notice for Rs. 69.932-4-0 under the aforesaid two agreements. The alleged amounts, according to the State, were payable subsequent to 26 January, 1950 for the remaining period. The respondent filed the suit for an injunction restraining the State from recovering the sum of Rs. 69,932-4-0 inasmuch as the monopoly contracts became illegal, void and unenforceable.