LAWS(PAT)-1993-6-1

I T CLTD Vs. STATE OF BIHAR

Decided On June 29, 1993
I.T.C Ltd. Appellant
V/S
THE STATE OF BIHAR AND ORS. Respondents

JUDGEMENT

(1.) The petitioner, which is a limited Company, has prayed for quashing of the order dated 29-1-1988 of the Land Reforms Deputy Collector, Munger (respondent No. 2) as contained in Annexure 16 to the writ application, passed in Rent Fixation Case No. 1/76-77 levying Salami, cases etc. Purporting to be under Sections 5 and 7 read with Section 13 of the Bihar Land Reforms Act, 1950 (hereinafter referred to as 'the Act') since the date the Act came into force i.e., 25-9-1950 and the demand notice dated 21-9-1992 issued by the Anchal Adhikari, Sadar Munger, as contained in Annexure 14 to the writ application, whereby the petitioner is required to pay Rs. 1,46,45,544 towards Salami, arrear rent etc. Upto the year 1986-87 in terms of the aforementioned order dated 29-1-1988 in Rent Fixation Case No. 19/86-87 within a fortnight with the threat that if they falied to pay, the same would be recovered under the provisions of the Bihar and Orissa Public Demand Recovery Act, 1940.

(2.) In Short, the case of the petitioner is that the petitioner Company which carries on the business of manufacturing and selling of cigarettes and smoking tobaccos set up the factory at Basdeopur in Munger in the early part of this century upon purchasing Zamindari/properties interest in the land in question. The predecessors-in-interest of the said Company also set up a residential complex by taking two bungalows with land appertaining thereto and also a vacant land on a perpetual Sub-lease in 1912 and by purchasing proprietory interest on the adjoining lands in 1925 for residence of its officials free of rent and the same is discribed as park land. It has also set up a colony for the residence of its workers at Shakarpur upon purchasing a dwelling house with-out-houses and other structures, garden, orchard and also two pieces of raiyoti jote transferable land in the years 1955 and 1958.

(3.) Under a notification dated 26-1-1955 issued in exercise of the power under the Act 30 of 1950 intermediary interest of the proprietor, tenure-holder, under tenure-holder and trustees in any estate or tenure in the district of Munger stood transferred and vested in the State of Bihar. But by the provisions of the Act homestead land and the land of the factory remained in the occupation of the company as the same has been deemed to have been settled with the Company as being the tenant of the State of Bihar, in terms of Section 7 of the Act subject to payment of fair and equitable ground rent as may be determined by the Collector in the prescribed manner.