MANGLA RAM Vs. ZORAWAR MAL

JUDGEMENT

(1.) THESE are connected appeals arising out of a suit for the recovery of a sum of Rs. 1161/- instituted by Zorawarmal respondent No. 1 against Manglaram and the State of Rajasthan which was decreed in part by the Munsif Nimbahera. The decree was confirmed on appeal by the District Judge, Partabgarh,

(2.) THERE are stone quarries in the Tehsil of Nimbahera which are leased out to miners in small portions. These miners themselves work the quarries and sell the stone to dealers. The stone is transported to the dumps of these dealers near the railway station on bullock carts. Royalty is levied by the State on the stone which is taken out and the rate of royalty is fixed in terms of bullock cart loads of stone. The contract for collection of royalty is given by public auction and the contractor gets the right of collecting royalty on the stone which is taken out by the lessees.

(3.) THE lessees in this area were poor miners who dug their own stone. THEy could not maintain accounts. THEy generally remained in debt and took advances from traders to whom they sold the stone quarried by them with the result that the price of stone was adjusted towards repayment of the loans. Royalty was paid by the traders and not by the lessees. It was fixed at so much per cart load and could only be assessed when the stone was loaded in carts. THE lessees being generally indigent could have only paid the royalty after borrowing money from the traders. THE inference from these facts is that royalty which is payable by the lessee is passed on to the purchaser in the usual course of business and is actually paid to the State by the trader. This payment is in law on behalf of the lessee who is liable to pay the royalty.