(1.) AFTER India attained independence on August 15, 1947, the erstwhile Princely States of Patiala, Kapurthala, Jind, Malerkotla, Nabha, Faridkot, Kalsia and Nalagarh entered into a covenant with the Union of India and formed a State commonly known as the Patiala and East Punjab States Union. The then His Highness the Maharaja of Patiala, by common agreement, was appointed as the Raj Pramukh of the State. The ruling Princes of the covenanting States surrendered their sovereignty, the State properties and the territories forming their respective States. The Government of India, in turn, agreed to pay privy purses to the ruling Princes and allowances to their dependants or their relations. The Ruler of the erstwhile State of Patiala, pursuant to this agreement, was informed by letter dated April 2, 1949, by the Ministry of States, Government of India, regarding its decision with regard to the privy purse allowance admissible to him as Raj Pramukh and allowances for Rajmatas and other relations.
(2.) THE privy purse of the then His Highness the Maharaja of Patiala was fixed at Rs. 17 lakhs per annum and his allowance as Raj Pramukh was fixed at Rs. 5 lakhs per annum. The latter allowance was exclusive of the cost of the staff required for the private secretary's office which was to be paid for separately by the PEPSU Government. Both these allowances were personal to the then Raj Pramukh and in case of his demise they were to be refixed for his successor.
(3.) THE appellant, Raja Raghavendra Singh, is half brother of late His Highness the Raj Pramukh. He was sanctioned an amount of Rs. 2,000 per month as allowance out of the sum of Rs. 5 lakhs set apart for the relations of the then His Highness the Raj Pramukh, 5. Pursuant to the circular issued by the Finance Department on May 17, 1955, the Treasury Officer, Patiala, started making advance deductions of income-tax from the allowance admissible in the case of the appellant.