JHELUM FOREST COMPANY Vs. CONSERVATOR OF FORESTSKASHMIRNORTH CIRCLE

JUDGEMENT

(1.) BY virtue of an agreement deed dated 31st of January, 1962, the appellant purchased the right to convert and remove the Umber from the trees marked for felling in compartment No. 70, Buniyar Range, Jhelum Forest Division. The period of agreement was stipulated to last till the end of Nov., 1965. The appellant was, however, allowed several extensions and the last extension expired in the year 1969. The Government found that an amount of rupees three lakhs and odd was due and payable by the appellant on account of arrear royalty under the agreement. The competent authority issued a certificate to that effect and required the Collector to recover the amount as arrears of land revenue. Thereupon the appellant filed an application, being arbitration application no. 14 of 1975, in this Court. His contention was that the value of the remnant stock in the forest was four lakhs and odd and that he was entitled to claim allowance for this amount and as a result of set-off, the Government was liable to pay the excess amount to him. His further contention was that this position not being acceptable to the Government, a dispute existed between the parties. Relying upon Clause 44 of the agreement he prayed that the dispute be referred for arbitration to the nominated arbitrator, namely, the Chief Conservator of Forests. Clause 44 of the agreement provides as under:

(2.) IN the view expressed above, the learned single Judge was justified in refusing to make reference to arbitration. That makes it unnecessary for us to go into the question whether the application for arbitration could lie before the appellant had made the payment or whether it was filed within the period of limitation prescribed therefor, in regard to which also arguments were addressed before us. We leave those questions open.