UNION OF INDIA Vs. WAZIR CHAND MAHAJAN

JUDGEMENT

(1.) This appeal, by the Union of India, is directed against a decree of the learned Senior Subordinate Judge Chamba, awarding a sum of Rs. 21,000, as compensation, to the respondent.

(2.) The respondent had filed a suit, against the appellant, for the recovery of Rs. 46,000, as compensation. The suit was based on the following allegations. Shri Trilok Nath, younger brother of the respondent, was granted a contract for extracting, collecting, and exporting medicinal herbs, such as Dhoop, Kaur, Mithi Patis, Tuth, Muskbala, Ban Kakru etc. from the forests of Chamba District for a period of one year, beginning with the first September, 1949, for a consideration of Rs. 38,900. The terms and conditions of the contract were embodied in an agreement dated the 16th June, 1949. Shri Trilok Nath got the contract for the above purpose for the next year also, beginning with first September, 1950, for a consideration of Rs. 70,000. The business of extracting, collecting and exporting the herbs was carried on, by Sri Trilok Nath, under the name and style of the Himachal Drug Nurseries, Chamba. Shri Trilok Nath had admitted the respondent as a partner to the aforesaid business in December, 1949 and had completely retired, himself, from the business on the 31st August, 1950. The respondent had become the sole owner of the business, known as the Himachal Drug Nurseries, Chamba Shri Trilok Nath had transferred the rights and liabilities, under the contract, for 1950-51 for extracting, collecting and exporting herbs, in favour of the respondent. The respondent had got extracted and collected for export herbs at different places.

(3.) Shri Trilok Nath was carrying on timber business, in partnership with Shri Prabh Dayal and Shri Gouri Shanker, under the name and style of Kashmir Woods at Jammu, in Jammu and Kashmir State. Disputes arose between the partners about the business, Shri Prabh Dayal and Shri Gouri Shanker lodged a report, with the Jammu police, that Shri Trilok Nath had manipulated entries in the books of account and had embezzled large sums of the partnership. At the instance of the Jammu police, the Chamba police had seized herbs, from various places, from the possession and custody of the respondent, from April to August 1951. The herbs, seized, were entrusted to various yuperdars. The respondent applied to the Magistrate, First Class Chamba, for the release of the herbs but was unsuccessful. He, then, filed petitions, under Article 226 of the Constitution of India, in this Court. But the petitions were rejected. The respondent went up in appeal to the Hon'ble Supreme Court. The appeals were allowed on the 22nd April, 1954. It was held that the seizure of herbs was illegal and in utter violation of the provisions of law and that the respondent was entitled to get back the herbs. On 4th May, 1964, the respondent moved the District Magistrate, Chamba, for restoring the herbs. A restoration order was passed on the 27th August, 1954. But the respondent was unable to get the herbs as they had been spoiled and rendered useless due to the negligence of the officials of the appellant The respondent claimed Rs. 88. 424-6-0 as the price of the herbs, and Rs. 14,296, as interest, and after remitting Rs. 6,770-6-0. filed a suit for the recovery of Rs. 46,000.