(1.) This is a curious case in which the State Government of Assam having granted the first respondent a lease later cancelled its grant and regranted it to another party and now contends that it is not bound by the laws and regulations which ordinarily govern such transactions.
(2.) Assam is blest with fisheries which are under the control of and belong to the State Government. Periodically the fishing rights are leased out to licensees and the State derives considerable revenue from this source. So valuable are these rights that as long ago as 1886 it was considered undesirable to leave such a lucrative source of revenue to the unfettered discretion and control of either the provincial Government or a single individual, however eminent. Accordingly, legislation was enacted and Regulation I of 1886 (The Assam Land and Revenue Regulation, 1886) was passed into law. A Register of Fisheries had to be kept and the Deputy Commissioner was empowered, with the previous sanction of the Chief Commissioner (later Provincial Government), to declare any collection of water to be a fishery. Once a fishery was so declared no person could acquire fishing rights in it except as provided by Rules drawn up under S. 155. These Rules, with alterations made from time to time, were still operative at all dates relevant and material to this case.
(3.) Put shortly, the effect of these Rules at the dates mentioned here was to require the fishing rights to be sold periodically by public auction in accordance with a particular procedure which was prescribed. These sales were called "Settlements".Among the conditions of sale were the following: