KRISHNA TRADING COMPANY Vs. A.L.SHARMA, D.F.O.DHARARA-SALA, DISTRICT KANGRA (H.P.) AND STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) The allegations, made in the plaint, which are not disputed by the defendants, may be narrated at the outset.

(2.) Three different lots of dry, up -rooted and fallen chil (pine) trees were nut to auction at Bhadroya by the Forest Department, Government of Himachal Pradesh, in October, 1979. The plaintiff -firm gave highest bids amounting to Rs. 23, 98, 000 for these lots. The bids were accepted and three lease deeds Exs. D -35, D -36 and D -38 were executed. The plaintiff also agreed to pay sales tax on auction amount, which is termed as royalty, and surcharge which is 10 per cent of the sales tax. The amounts of royalty and tax were payable in installments indicated in the lease deeds referred to above. The work of felling the trees and extracting timber there from was to be completed within a fixed time. The plaintiff represented for extension of this period on which the Conservator of Forests, Bilaspur allowed extension upto September 25, 1980. Further extension in the period of contract, though applied for, was not allowed. The plaintiff also failed to deposit the amount of instalments according to the w schedule with the result that the Forest Department confiscated the timber and the forest produce and put it to re -auction. The total demand raised by the Forest Department against the plaintiff -firm was to the tune of Rs. 36,10,325.36 P. out of which an amount of Rs. 29,54,410.87 P. had been admittedly paid by the plaintiff, leaving behind a balance of Rs. 6,45,914. 49P. The plaintiff having failed to pay the above mentioned balance amount, the defendants (Forest Department) took steps to recover it as arrears of land -revenue as stipulated under section 82 of the Indian Forest Act.

(3.) It is also not disputed that the total demand of Rs. 36,10,325.36 P. raised by the defendants against the plaintiff includes a sum of Rs. 6,61,264.05 P. as sales tax and surcharge thereon and a sum of Rs. 1,47,882.15 P. as the amount of interest on the tax amount. In this civil suit, the plaintiff has challenged the legality and validity of the aforesaid two amounts totaling Rs. 8,09,146.20 P. As a result, it has been prayed that a decree for declaration be granted against the defendants to the effect that proceedings for recovery of Rs. 6,45,914.49 P. as arrears of land -revenue are illegal, void, without jurisdiction and inoperative because the defendants have no right to realise the amount of sales tax, surcharge and interest thereon. As a consequential relief, a decree for injunction restraining the defendants from realising the amount of Rs. 6,45,914.49 P., or enforcing its recovery in any manner whatsoever has been prayed for. Furthermore the plaintiff has sought a decree for the recovery of the balance amount of Rs. 1,63,231.71 P. (Rs. 8,09,146.20 P. minus Rs. 6,45,914.49 P.), with interest at the rate of 18 per cent.