UNION OF INDIA Vs. R C JALL

JUDGEMENT

(1.) THIS is a civil suit filed by the Union of India owning and representing the central and Western Railway Administrations, New Delhi, against one Shri R. C. Jali, an inhabitant of Indore, and the Amalgamated Coal Fields Limited, a corporation with its head office at Parasia, tahsil and district Chhindwara. The plaint was originally filed at Chhindwara in the Court of Civil Judge, Second Class, empowered under Section 19 of the Central Provinces Courts Act. On an application made to this Court under Article 228 of the Constitution, one of us (Choudhuri J.) withdrew the case for trial in the High Court on the ground that important questions as to the interpretation of the Government of India Act, 1935, and the Constitution were involved. The case was also referred to a Division bench, and it thus comes before us for final disposal. It may be pointed out that neither side led any evidence in the case, and the issues have been argued almost entirely as matters of law.

(2.) THE facts as disclosed by the plaintiff are as follows : The plaintiff owns the central Railway as well as the Western Railway Administrations, which were formerly known as the G. I. P. and the B. B. and C. I. Railway Administrations. In january and 'february 1947 the second defendant, The Amalgamated Coal Fields ltd. , booked to the first defendant R. C. Jail at Indore three consignments of coal from Junnor-Deo, a station on the Amla Parasia line. These consignments were sent under railway receipts mentioned in paragraph 5 of the plaint, and the total amount of freight came to Rs. 535-6-0. There is no dispute as to these consignments nor as to the total amount of the freight. The dispute is as regards the cess which the Central Government was levying under' an Ordinance intituled the Coal Production Fund Ordinance, 1944 (No. 39 of 1944 ). Admittedly, this cess amounted to Rs. 81-4-0, which is the subject-matter of the claim here. It is, however, pointed out by counsel that the decision in this case will govern numerous other levies of a like character, totalling over two to three lakhs of rupees; in other words, this is apparently a test case between the parties as to whether the levy can be made in view of the facts to be detailed hereafter.

(3.) THE said ordinance came into force on 26th August, 1944. It was later repealed by the Coal Production Fund (Repealing) Ordinance, 1947 (No. 6 of 1947), from the first day of May, 1947. The present suit was filed on 24th April, 1953, and many objections have been raised by the defendants to the effect that the plaintiff is not entitled in law to recover the cess.