ISMAIL MATCH WORKSFEROKE Vs. DIVISIONAL FOREST OFFICERPALGHAT DIVISION

JUDGEMENT

(1.) The petitioners have entered into contracts with the Government through the Divisional Forest Officer, Palghat, agreeing to fell and collect the timber allotted to them for 1980-81 and to purchase them at the rates fixed in the agreement. Regarding the agreement what was said in the agreement was:- "For supplies the value of soft wood will be realised at the rates specified in G.O.Ms. No. 462/80/AD dated 1-12-1980 for the species covered by the G.O. (subject to revision of Government) the revised rate proposed to Government in C.C.F.'s letter No. SP3-53934/78 dt. 21-10-78 and 5-1-79 or revised rate ordered by Govt. during the currency of the quota period, as specified in Appendix I...... 42, The purchaser is liable to pay higher rates for the timber supplied against the quota if so ordered by Govt. consequent to the revision of rates in accordance with the Kerala Forest Produce (Fixation of Selling Price) Act, 1978, revision of quota rates etc, 43. The price for soft wood species covered by Kerala Forest Produce (Fixation of Selling Price) Act, 1978 shall be payable by the allottees at the rates fixed in G.O.Ms. No. 462/80/AD dt. 1-12-80 and that the same shall be liable to revision when Government so ordered."

(2.) The petitioners point out that from 1st June, 1981, the rates effective from that date have been revised and the earlier notification superseded by a fresh notification G.O.Ms. No. 169/81/Forest dated 29-5-1981 (marked as Ext. P2). This notification has been published under the Kerala Forest produce (Fixation of Selling Price) Act, 1978, the Act for short, which according to the petitioners was enacted to ensure that forest produce is sold at reasonable rates and to provide for the fixation of the selling price of certain important forest produce. Section 3 of the Act states that the Government shall, before the end of each financial year, by notification published in the Gazette, fix the selling price of every forest produce for the following financial year. It also provides that the Government may, if they decide that it is necessary so to do, refix the selling price of any forest produce during the course of a financial year. The selling price under the Act is fixed after following the procedure prescribed therein and consulting and considering the recommendations of an expert committee. At the time when the petitioners executed the agreements the notification issued under the Act in force was G.O. (MS) No. 462/80/AD dated 1-12-1980. For the year 1981-82 the rates effective from 1st June 1981 however has been revised and the earlier Government notification; superseded by a fresh notification of 29-5-1981. This fresh notification Ext. P21 would show that the price for standing timber at site for Vellapine, Punna and Pali covered by the agreement is Rs. 290, Rs. 280 and Rs. 290 respectively per cubic metre while the corresponding figure under the superseded notification was Rs. 484, Rs. 359 and Rs. 484 respectively.

(3.) The petitioners' contention is that in view of the Act, they are liable to pay only as per the rates fixed in Ext. P2 in respect of the forest produce mentioned therein and covered by the agreement executed by them. According to them, the agreement provides for the price for soft wood species covered by the Act shall be payable by the allottees at the rates fixed in the notification of 1-121980 and that the same shall be liable to revision when Government so ordered. Petitioners' case is both under the Act and under the agreement they are liable to pay only at the rates fixed under Ext. P2.