(1.) The petitioner firm is forest lessee engaged in extraction of timber. State of Jammu and Kashmir granted a forest lease in favour of the petitioner in January, 1974. A lease agreement was executed between the parties in respect of forest compartment Nos. 13, 14, 15 and 16-A of Paddar Range in Kishtwar Division. Under the terms of the agreement the lessee was to Ray a sum of Rs.41,05,000/- to the lessor i.e. Govt. of J&K as royalty for being entitled tp convert and remove the timber from the trees marked for felling in the abovesaid compartments. Under clause 11 of the lease agreement the lessee was to commence felling immediately after handing over of the trees and was to remove the produce beyond the coupe boundaries concerned by the end of December 1974. Thus the period of lease was for four years. However sub-clause (2) of clause 12 of the agreement provided as follows :-
(2.) Completion of the felling of the trees and removal of the timber could not be done by the petitioner-lessee and on his application/request extensions were granted to him by the Government and last being under Govt. order No. 22-FST of 1982 for extending the period up to 31-12-1982. The petitioner availed the last extension as well, still could not complete the work of extraction of timber under the lease, which initially was to expire on 31-12-1978. The petitioner firm again applied to the Government for granting further extension but extension was refused. The petitioner filed writ petition No. 141 of 1982 in this Court. The writ was allowed on 5-5-1983. The State went in Letters Patent Appeal before the Division Bench and during the pendency of appeal a settlement came to be arrived at by the parties pursuant to which the Government passed Govt. order No. 205-FST of 1984 dated 22-2-1984 which reads :-
(3.) From the above Government order it is manifest that Government had taken a policy decision for nationalization of extraction operations of the forest by the end of Dec. 1984 where after no forest lessee was to be allowed to work in the forest on the existing leases including those ordered by the Courts up to December, 1984.