MALHATI TEA SYNDICATE LIMITED Vs. REVENUE OFFICER JALPAIGURI

JUDGEMENT

(1.) The appellant is the owner of a tea garden in the district of Jalpaiguri. On December 9, 1937, the then Governor of Bengal granted a lease of 1268.85 Acres of land in Touzi No. 410, in the district of Jalpaiguri, commonly known as Malhati Tea Estate, under Chapter V of the Bengal Waste Lands Manual, 1936, in favour of the appellant, for a term of 30 years with effect from April 1, 1932, on yearly rent of Rs. 2760.12. Some other note lands were also settled with the lessee as a part of the tea estate. On expiry of the term of 30 years, the appellant obtained renewal of the lease from year to year, the last of such renewal having been made in March 1965, for the year 1965-66. Under these yearly renewals, the appellant is entitled to renewal of the lease for a further period of one year or such period as the State Government may think fit, subject to the reservation that the decision of the State Government under Section 6 (3) of the West Bengal Estates Acquisition Act, 1953, hereafter referred to as the Act, would be binding on the lessee. The State Government also retained the right to impose such conditions as it may, from time to time, find it necessary. The State Government allowed the appellant to retain the entire area in the tea estate under Section 6 (3) of the Act by an order dated October 10, 1963.

(2.) The Revenue Officer started proceedings under Section 43 (2) and Section 42-A of the Act for fixation of rent payable by the appellant in respect of the tea estate. In this proceeding the Revenue Officer by an order dated November 12, 1965, fixed the rent at Rs. 8,334.26. In this order there was nothing to indicate that the amount fixed by the Revenue Officer included Road Cess and Public Works Cess of Rs. 366.98 and Education Cess of Rs. 1,373.16. The inclusion of the Cess of different kinds was made clear in a memorandum dated February 22, 1966, issued by the Additional Deputy Commissioner. The assessment of rent and Cess as above was to take effect from November 1965. Under the original lease the rent payable was Rs. 2,760.12, Road and P. W. Cess was Rs. 614.12 and Education Cess was Rupees 723.76.

(3.) On April 19, 1967, a demand was sent to the appellant for Rs. 59,150.97 towards arrears of rent and a sum of Rupees 6,527.01 for arrears of Education Cess. This demand was on the basis of determination made under Section 42 (2) of the Act. Retrospective effect was given to this determination with effect from the date of vesting namely, April 14, 1955.